Delek Logistics Partners, LP (NYSE: DKL) (“Delek Logistics”) announced today the execution of a 12-year acreage dedication & crude oil gathering agreement for an additional 50,000 acres with an independent oil and gas producer. The additional acreage is supported by Delek Logistics’ Permian Gathering System (DPG) located in West Texas. This transaction also includes a minimum volume commitment and increases DPG’s total acreage dedication to over 350,000 acres. This agreement is immediately accretive to DKL’s EBITDA profile and provides opportunities for incremental value creation through operational efficiencies.
“We are excited about the high-quality growth opportunities we are seeing in and around our existing assets,” said Avigal Soreq, President at Delek Logistics. “We remain committed to executing our strategy of being the preferred oil, gas and water midstream services provider in the Permian Basin. We are encouraged by the value the market is assigning to assets like DPG, based on the recent transactions around our acreage. The announced acreage dedication, as well as our other growth plans, will continue to make DPG a stronger asset. We are determined to showcase the value DKL has created in the Permian basin and are confident that our strategy will continue to yield benefits for the stakeholders of Delek Logistics.”
About Delek Logistics Partners, LP
Delek Logistics Partners, LP is a midstream energy master limited partnership headquartered in Brentwood, Tennessee. Through its owned assets and joint ventures located primarily in and around the Permian Basin, the Delaware Basin and other select areas in the Gulf Coast region, Delek Logistics provides gathering, transportation, recycling, storage, water disposal and recycling services. Delek US Holdings, Inc. (NYSE: DK) (“Delek US”) owns the general partner interest as well as a majority limited partner interest in Delek Logistics Partners, LP, and is also a significant customer.
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This press release contains forward-looking statements that are based upon current expectations and involve a number of risks and uncertainties. Statements concerning current estimates, expectations and projections about future results, performance, prospects, opportunities, plans, actions and events and other statements, concerns, or matters that are not historical facts are “forward-looking statements,” as that term is defined under the federal securities laws. Investors are cautioned that important factors may affect these forward-looking statements, as described in Delek US’s and Delek Logistics’ filings with the SEC, including risks disclosed in their respective Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and other filings and reports with the SEC.
Forward-looking statements should not be read as a guarantee of future performance or results and will not be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking information is based on information available at the time and/or management's good faith belief with respect to future events, and is subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statements. Neither Delek US nor Delek Logistics undertakes any obligation to update or revise any such forward-looking statements to reflect events or circumstances that occur, or which they become aware of, after the date hereof, except as required by applicable law or regulation.
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