Delek US [NYSE: DK]
Powering Energy through Connected Logistics

Energy logistics involves far more than transporting commodities from one location to another. Refiners, producers, marketers and industrial customers work within supply networks where transportation capacity, storage infrastructure, pipeline connectivity, terminal access and market timing can influence operational performance. Reliable energy supply increasingly depends on coordinating assets across several transportation modes. Operators serving geographically dispersed markets need logistics infrastructure that links production and refining assets with customers while adjusting to shifts in commodity flows and regional demand.

Delek US [NYSE: DK] Holdings addresses these demands through a diversified energy platform spanning petroleum refining, logistics, pipelines, asphalt and renewable fuels. Its logistics operations include Delek Logistics Partners, a publicly traded master limited partnership that owns and operates midstream energy infrastructure. The logistics platform supports the movement, storage, processing and marketing of crude oil and refined products while linking Delek's refining system with third-party customers and wider energy markets.

Building an Integrated Energy Network

Delek Logistics Partners operates an infrastructure network linking crude oil supplies with refining facilities and refined products with downstream markets. Its midstream assets include pipelines, gathering and processing infrastructure, terminals, storage facilities and transportation capabilities. The network moves energy commodities among production areas, refineries, terminals and customers.

Transportation and supply optimization operations put that infrastructure to work across several modes. Delek handles crude oil, asphalt, light products, gasoline, diesel, aviation fuels and other refined commodities using truck, marine, rail and pipeline transportation. A multimodal network gives the commercial organization greater flexibility when selecting routes between supply points and end markets.

Pipeline infrastructure anchors these transportation choices by moving crude oil and refined products through established corridors. Gathering and processing systems in producing regions create further links between upstream production and downstream refining and marketing activities.

Terminals turn those connections into transfer points for receiving, storing, moving and distributing petroleum products. Connections among pipelines, trucks, rail systems and marine routes allow commodities to move between logistics networks according to customer requirements and destinations.

Marine routes carry that interconnected network farther along the Gulf Coast. Delek's transportation network uses the Intracoastal Waterway between Corpus Christi, Texas and New Orleans, Louisiana to move crude oil, light products and heavy oils. Marine routes complement pipeline, rail and trucking operations and offer another means of connecting supply locations with demand markets.

Rail and transloading operations fill remaining gaps in transportation options. Delek manages rail movements involving gas, ultra-low sulfur diesel, aviation gasoline, asphalt and other refined commodities while coordinating transload activities. Such capabilities are useful when commodities need to cross logistics systems or lack a direct pipeline connection.

Scaling Through Strategic Integration

Delek's logistics and refining operations are closely integrated across its energy network. Delek US operates four refineries in Texas, Arkansas and Louisiana with combined nameplate crude throughput capacity of 302,000 barrels per day. Logistics infrastructure moves crude oil into the refining system and refined products toward downstream markets, linking refinery activity with transportation assets.

Commercial activity extends the same infrastructure outside Delek's refining system. Customers include independent petroleum marketers, distributors, airlines, government and military organizations, railroads, trucking companies and other buyers. Third-party activity expands the commercial use of Delek's infrastructure and creates additional opportunities to utilize its logistics assets.

Serving that broader market has driven Delek Logistics deeper into major producing regions. Delek Logistics completed its acquisition of H2O Midstream in September 2024, adding crude oil gathering, water handling and related infrastructure in the Midland Basin. The transaction increased its presence in the Permian Basin energy market and added midstream capabilities outside conventional transportation and terminal operations.

An earlier expansion came through Delek Logistics' 2022 purchase of 3Bear's Delaware Basin assets, adding crude oil and natural gas gathering, processing, transportation and water disposal and recycling capabilities. Both acquisitions expanded the company's infrastructure across several parts of the midstream value chain.

Those expanded capabilities fit Delek's three-stream service model of gathering and processing, marketing and terminalling and storage and transportation. Operations across those areas support internal refining requirements while creating capacity for third-party activity and increased utilization of existing assets.

Financial results help quantify the scale supported by that logistics model. Delek US reported adjusted EBITDA of USD 143.5 million for its logistics segment in the second quarter of 2026, up from USD 127.4 million in the corresponding quarter of 2025. Delek attributed the increase primarily to higher wholesale margins and increased interest income from sales-type leases.

Behind those results are pipeline transportation, gathering and processing, terminal operations, wholesale activities and transportation services across Delek's logistics portfolio. A mix of business lines gives Delek multiple sources of logistics activity while preserving links with its refining operations.

Delivering Flexibility across Energy Markets

Delek's logistics platform provides multiple options for moving commodities across producing regions and downstream markets. Products can move through interconnected infrastructure according to location, destination, available capacity and market requirements, giving the network flexibility to respond to changing operating conditions.

Gathering volumes offer a measurable view of that network activity. During the second quarter of 2026, Delek Logistics' Midland gathering assets handled an average of 209,957 barrels per day. Plains Connection System throughput averaged 176,680 barrels per day during the same period. Reported volumes illustrate the role of the infrastructure in moving production into larger transportation and market networks.
Storage and terminal assets carry that connectivity into downstream networks. Terminals receive, hold, transfer and redirect products while linking transportation systems that may not offer a continuous route. Such flexibility can become important when regional commodity flows change or customers need access to different downstream markets.

Earlier company materials quantified that infrastructure at approximately 2,204 miles of pipeline and gathering systems, nine light product terminals and approximately 10 million barrels of available storage capacity. Delek's asset portfolio continues to change through acquisitions, investments and optimization initiatives, so the latest company disclosures should be consulted when citing its current infrastructure footprint.

Customers gain multiple transportation options from this interconnected infrastructure network. Crude oil can move through gathering and pipeline systems while refined commodities can pass through terminals into downstream transportation networks according to destination and delivery requirements. Rail, marine and truck services provide additional routes where pipeline infrastructure does not offer the required connection.

Such flexibility comes from Delek's presence across multiple points in the energy value chain. Gathering and processing infrastructure links producing regions with downstream systems. Storage and terminal assets support product management and transfers while transportation capabilities connect commodities with end markets. Third-party activity increases the network's commercial reach outside Delek's refining operations.

Delek's recognition as Top Midstream Energy Logistics Provider 2026 reflects the combined scope of the logistics capabilities documented across company disclosures. The business combines gathering, processing, pipelines, storage, terminalling, transportation and commercial capabilities with links to Delek's refining system. Its network connects energy supplies with geographically dispersed markets and provides several routes for adjusting to changes in commodity flows and customer requirements.