Financial Analysis

"Acquisitions Gravity Acquisition On January 2, 2025, we purchased 100% of the limited liability company interests in Gravity Water Intermediate Holdings LLC from Gravity Water Holdings LLC (the ""Seller"") related to the Seller's water disposal and recycling operations in the Permian Basin and the Bakken (the Gravity Acquisition) for total consideration of $300.8 million, subject to customary adjustments for net working capital. The purchase price was comprised of $209.3 million in cash, consisting of a cash deposit of $22.8 million paid in December 2024, upon execution of the purchase agreement and $186.5 million paid at closing, and 2,175,209 of common units. This acquisition was accounted for using the acquisition method of accounting, whereby the purchase price is measured at acquisition date fair value of assets acquired and liabilities assumed. Determination of Purchase Price The table below presents the purchase price (in thousands): Base purchase price: $ 291,561 Less: Adjusted Net Working Capital (as defined in the Gravity Acquisition Agreement) 3,814 Plus: V arious closing adjustments 5,433 Adjusted purchase price $ 300,808 Cash paid $ 209,297 Fair value of common units issued 91,511 Purchase price $ 300,808 Purchase Price Allocation The following table summarizes the fair values of assets acquired and liabilities assumed in the Gravity Acquisition as of January 2, 2025 (in thousands): Assets acquired: Cash and cash equivalents $ 5,317 Accounts receivables 16,433 I …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

"Commitments and Contingencies Litigation In the ordinary conduct of our business, we are from time to time subject to lawsuits, investigations and claims, including environmental claims and employee-related matters. Although we cannot predict with certainty the ultimate resolution of lawsuits, investigations and claims asserted against us, including civil penalties or other enforcement actions, we do not believe that any currently pending legal proceeding or proceedings to which we are a party will have a material adverse effect on our financial statements. Environmental, Health and Safety We are subject to extensive federal, state and local environmental and safety laws and regulations enforced by various agencies, including the Environmental Protection Agency (the ""EPA""), the United States Department of Transportation, the Occupational Safety and Health Administration, as well as numerous state, regional and local environmental, safety and pipeline agencies. These laws and regulations govern the discharge of materials into the environment, waste management practices and pollution prevention measures, as well as the safe operation of our pipelines and the safety of our workers and the public. The State of New Mexico promulgated new regulations to limit emissions from oil and gas operations in 2022. The cost to comply is not expected to be material. Numerous permits or other authorizations are required under these laws and regulations for the operation of our terminals, pi …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Long-Term Obligations Outstanding borrowings under the Partnerships debt instruments are as follows (in thousands): March 31, 2026 December 31, 2025 DKL Revolving Facility $ 161,100 $ 211,850 2033 Notes 700,000 700,000 2029 Notes 1,050,000 1,050,000 2028 Notes 400,000 400,000 Principal amount of long-term debt 2,311,100 2,361,850 Less: Unamortized discount and premium and deferred financing costs 16,476 17,430 Total debt, net of unamortized discount and premium and deferred financing costs $ 2,294,624 $ 2,344,420 DKL Credit Facility On March 26, 2026, the Partnership entered into a credit agreement (the New Credit Agreement) that provides for revolving commitments up to $1,300.0 million in the aggregate with a sublimit up to $150.0 million for letters of credit and up to $50.0 million for swing line loans (the DKL Revolving Facility). The DKL Revolving Facility replaced the Partnership's previous revolving credit facility and term loan facility under the Fourth Amended and Restated Credit Agreement (the ""Prior Credit Agreement"") and proceeds were used to pay all outstanding balances of the Prior Credit Agreement. The maturity date for the DKL Revolving Facility is the earliest of (i) March 26, 2031, (ii) the date that is 180 days prior to the earliest maturity date of the Partnerships 8.625% Senior Notes due 2029 to the extent that on such date, no less than $500.0 million of aggregate principal amount of the 2029 Notes remains outstanding, and (iii) such date on which the …

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Three Months Ended March 31, 2026 Gathering and Processing Wholesale Marketing and Terminalling Storage and Transportation Consolidated Service Revenue - Third Party $ 22,997 $ $ 1,476 $ 24,473 Service Revenue - Affiliate 3,067 644 15,337 19,048 Product Revenue - Third Party 82,433 23,870 106,303 Product Revenue - Affiliate 384 86,168 86,552 Lease Revenue - Affiliate 45,795 7,114 8,181 61,090 Total Revenue $ 154,676 $ 117,796 $ 24,994 $ 297,466 Three Months Ended March 31, 2025 Gathering and Processing Wholesale Marketing and Terminalling Storage and Transportation Consolidated Service Revenue - Third Party $ 18,454 $ $ 1,582 $ 20,036 Service Revenue - Affiliate 1,506 6,657 13,974 22,137 Product Revenue - Third Party 61,582 41,991 103,573 Product Revenue - Affiliate 3,219 49,326 52,545 Lease Revenue - Affiliate 33,842 8,725 9,072 51,639 Total Revenue $ 118,603 $ 106,699 $ 24,628 $ 249,930 …

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"Accounting Pronouncements Not Yet Adopted ASU 2025-12, Codification Improvements In December 2025,the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2025-12 Codification Improvements (""ASU 2025-12""). This update addresses suggestions received from stakeholders regarding the Accounting Standards Codification and makes other incremental improvements to U.S. GAAP. The update represents changes to the Codification that clarify, correct errors in or make other improvements to a variety of topics that are intended to make it easier to understand and apply. ASU 2025-12 is effective for fiscal years beginning after December 15, 2026 and interim periods within those fiscal years. Entities are required to apply the amendments to ASC 260 retrospectively. All other amendments may be applied prospectively or retrospectively. Early adoption is permitted. The adoption of ASU 2025-12 will not affect our financial position or our results of operations, but could impact disclosures. ASU 2025-11, Interim Reporting (Topic 270) Narrow-Scope Improvements In December 2025, the FASB issued ASU 2025-11 Interim Reporting (Topic 270) Narrow-Scope Improvements (""ASU 2025-11""), which is intended to improve the navigability of the guidance in ASC 270, Interim Reporting, and clarify when it applies. Under the amendments, an entity is subject to Topic 270 if it provides interim financial statements and notes in accordance with GAAP. ASU 2025-11 also addresses the f …

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"Related Party Transactions Commercial Agreements The Partnership has a number of long-term, fee-based commercial agreements with Delek Holdings under which we provide various services, including crude oil gathering and crude oil, intermediate and refined products transportation and storage services, and marketing, terminalling and offloading services to Delek Holdings. Most of these agreements have an initial term ranging from five to ten years, which may be extended for various renewal terms at the option of Delek Holdings. The fees under each agreement are payable to us monthly by Delek Holdings or certain third parties to whom Delek Holdings has assigned certain of its rights and are generally subject to increase or decrease on July 1 of each year, by the amount of any change in various inflation-based indices, however, in no event will the fees be adjusted below the amount initially set forth in the applicable agreement. Under each of these agreements, we are required to maintain the capabilities of our pipelines and terminals, such that Delek Holdings may throughput and/or store, as the case may be, specified volumes of crude oil, intermediate and refined products. See our Annual Report on Form 10-K for a more complete description of our material commercial agreements and other agreements with Delek Holdings. Other Agreements with Delek Holdings In addition to the commercial agreements described above, the Partnership has entered into the following agreements with Delek …

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Revenues The following table represents a disaggregation of revenue for the gathering and processing, wholesale marketing and terminalling, and storage and transportation segments for the periods indicated (in thousands): Three Months Ended March 31, 2026 Gathering and Processing Wholesale Marketing and Terminalling Storage and Transportation Consolidated Service Revenue - Third Party $ 22,997 $ $ 1,476 $ 24,473 Service Revenue - Affiliate 3,067 644 15,337 19,048 Product Revenue - Third Party 82,433 23,870 106,303 Product Revenue - Affiliate 384 86,168 86,552 Lease Revenue - Affiliate 45,795 7,114 8,181 61,090 Total Revenue $ 154,676 $ 117,796 $ 24,994 $ 297,466 Three Months Ended March 31, 2025 Gathering and Processing Wholesale Marketing and Terminalling Storage and Transportation Consolidated Service Revenue - Third Party $ 18,454 $ $ 1,582 $ 20,036 Service Revenue - Affiliate 1,506 6,657 13,974 22,137 Product Revenue - Third Party 61,582 41,991 103,573 Product Revenue - Affiliate 3,219 49,326 52,545 Lease Revenue - Affiliate 33,842 8,725 9,072 51,639 Total Revenue $ 118,603 $ 106,699 $ 24,628 $ 249,930 As of March 31, 2026, we expect to recognize approximately $507.3 million in service revenues related to our unfulfilled performance obligations pertaining to the minimum volume commitments and capacity utilization under the non-cancelable terms of our commercial agreements with Delek Holdings. Most of these agreements have an initial term ranging from five to ten years, wh …

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"Segment Data We review operating results in four reportable segments: (i) gathering and processing; (ii) wholesale marketing and terminalling; (iii) storage and transportation; and (iv) investment in pipeline joint ventures. Operations that are not specifically included in the reportable segments are included in corporate and other. The Partnership defines its segments based on how internally reported financial information is regularly reviewed by its chief operating decision maker (""CODM"") to analyze financial performance, make decisions and allocate resources. The CODM is the President of the Partnership. The CODM evaluates performance based on segment EBITDA for planning and forecasting purposes. The CODM considers budget to actual variances on a monthly basis when making decisions about allocation of operating and capital resources to each segment. Segment EBITDA is an important measure used by management to evaluate the financial performance of our core operations. We define segment EBITDA as net income before net interest expense, income taxes, depreciation, amortization, and proportional interest, taxes, depreciation and amortization of equity method investments. Segment data for prior periods has been restated and is consistent with the current year presentation. A reconciliation of segment EBITDA to net income is included in the tables below. Assets by segment is not a measure used to assess the performance of the Partnership by the CODM and thus is not disclosed. …

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Equity Equity Activity The table below summarizes the changes in the number of units outstanding from December 31, 2025 through March 31, 2026. Common - Public Common - Delek Holdings (1) Total Balance at December 31, 2025 19,643,923 33,868,203 53,512,126 Unit-based compensation awards (2) 9,422 9,422 Balance at March 31, 2026 19,653,345 33,868,203 53,521,548 (1) As of March 31, 2026, Delek Holdings owned a 63.3% interest in the Partnership. (2) Unit-based compensation awards are presented net of 6,829 units withheld for taxes for three months ended March 31, 2026. Unit Repurchase On February 24, 2025, the Partnership and Delek Holdings entered into a Common Unit Purchase Agreement (the Common Unit Purchase Agreement) whereby the Partnership may repurchase common units from time to time from Delek Holdings in one or more transactions for an aggregate purchase price of up to $150.0 million through December 31, 2026 (each such repurchase, a Repurchase). The purchase price per common unit in each Repurchase will be the 30-day volume weighted-average price of the common units at the close of trading on the day prior to the closing date subject to certain limitations set forth in the Common Unit Purchase Agreement. The Partnership may fund Repurchases using cash on hand or borrowings under its existing credit facility, subject to compliance with applicable covenants. During the three months ended March 31, 2025, 243,075 common units were repurchased from Delek Holdings and cancell …

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Subsequent Events Distribution Declaration On April 23, 2026, our general partner's board of directors declared a quarterly cash distribution of $1.130 per unit, payable on May 11, 2026, to unitholders of record on May 4, 2026. Asset Purchase Agreements with Delek Holdings On April 1, 2026, the Partnership completed the Tyler Tank Sale pursuant to the terms of the Intercompany Agreements as further described in Note 3. At closing, Delek Holdings returned 359,372 Partnership common units to us, representing the full consideration of $19.0 million. As a result of this transaction, Delek Holdings ownership interest in the Partnership was further diluted, decreasing to 63.0%. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing