(DKL) Delek Logistics Partners, LP Business Model Canvas Research

Delek Logistics Partners, LP is built around the Tyler, El Dorado, and Big Spring refinery network, which anchors its core crude-in and product-out flow. These refinery ties are operationally critical, with 3 sites driving the system’s storage, transportation, and pipeline use.

• Three refinery anchors
• Supports crude supply
• Moves refined products

Delek Logistics Partners, LP relies on third-party shippers and marketing counterparties to move external crude and refined products across the U.S., widening use of its pipelines and terminals beyond captive refinery demand. These customers support throughput, terminalling, and wholesale marketing volumes, which helps diversify cash flow and keep assets full.

• External shippers lift utilization.
• Marketing counterparties add volume.
• More volume supports throughput and terminals.

Delek Logistics Partners, LP markets refined petroleum products on a wholesale basis and provides transport, storage, and terminalling services to independent third parties, turning its pipeline and terminal network into fee-based cash flow. This activity monetizes the link between midstream assets and downstream demand, with earnings driven by throughput, storage utilization, and terminal volumes.

• Wholesale refined products sales
• Third-party transport and storage
• Terminalling fees from connected assets
• Converts network access into cash flow

Delek Logistics Partners, LP actively oversees 3 pipeline joint ventures and folds that capacity into its own logistics and refinery system. That integration improves route optionality and network efficiency, helping the Company move crude and refined products with fewer bottlenecks and better system use.

• 3 pipeline joint ventures under active oversight
• JV capacity linked to logistics and refinery needs
• More route optionality and higher network efficiency

Delek Logistics Partners, LP’s refined product system covers about 450 miles of pipelines, making it a key asset for product distribution and terminalling support. That network helps keep downstream deliveries reliable and underpins fee-based transport flows in 2025.

• About 450 miles of pipelines
• Supports distribution and terminalling
• Improves downstream delivery reliability

Delek Logistics Partners, LP uses trucking fleets and supporting facilities to move product when pipelines are not the best option, giving the network more routing flexibility and helping keep service steady across crude, intermediate, and refined products. These assets matter most at bottlenecks and short-haul legs, where truck transport can keep volumes moving and protect uptime.

• Adds route flexibility
• Supports non-pipeline moves
• Keeps multi-product service stable

Independent customers can tap Delek Logistics Partners, LP’s bulk marketing, transport, storage, and terminalling network, so they get refined product logistics capacity without funding their own tanks, pipes, or terminals. That lowers upfront capex and speeds market access, which matters most where product needs to move fast and stay in spec.

• Use shared infrastructure, not owned assets.

• Cut capex and start faster.

• Best fit for refined product logistics.

Equity stakes in three joint ventures widen Delek Logistics Partners, LP’s reach beyond its owned assets, adding route diversity and access to more pipelines, terminals, and gathering lines. That structure also gives internal and third-party users more routing options and helps balance volumes across the network.

• 3 JV systems expand coverage
• Access beyond owned assets
• More routing flexibility

Delek Logistics Partners, LP’s wholesale market counterparty management is built around independent third-party buyers, so pricing, scheduling, and delivery have to line up tightly. The relationship is practical: keep product available, execute on time, and protect margins through disciplined service and contract terms.

• Third-party wholesale customers
• Pricing and schedule discipline
• Availability and delivery execution

Delek Logistics Partners, LP stays tightly aligned with Delek US Holdings, which helps coordinate supply, refining, and logistics planning with less friction. In 2025, the platform still centered on affiliate-driven throughput and asset use, so the relationship remains a core driver of operational timing and scheduling discipline.

• Affiliate alignment cuts coordination delays.
• Shared planning supports refinery-to-pipeline flows.
• Lower friction helps asset use stay efficient.

The wholesale commercial sales channel lets Delek Logistics Partners, LP sell refined products to independent third-party customers in bulk, so it is not limited to captive refinery volumes. This adds an outside-market revenue stream and helps widen the customer base.

• Bulk refined product sales
• Third-party customer reach
• Supports non-captive monetization

Delek Logistics Partners, LP uses its three pipeline joint ventures to reach markets beyond assets it fully owns, which widens access to third-party infrastructure and strengthens network reach across its logistics system.

The JV channel matters because it lets Delek Logistics Partners, LP add coverage without full asset ownership, so more barrels can move through a broader footprint.

• Three pipeline joint ventures
• Access beyond owned assets
• Broader effective network footprint

Delek Logistics Partners, LP serves intermediate and refined product handlers that need staging, balancing, and transport for gasoline, diesel, and other petroleum products. Its 10.2 million barrel storage base gives these customers enough buffer to manage supply swings, keep product moving, and reduce bottlenecks.

• 10.2 million barrels of storage
• Staging and balancing services
• Transport for refined products

JV system users include Delek US subsidiaries and third-party counterparties that buy pipeline capacity and storage access. In 2025, this fee-based setup helped Delek Logistics Partners, LP monetize shared assets while widening route optionality across its connected systems.

• Serves Delek subsidiaries and outsiders
• Uses pipeline and storage capacity
• Expands route access for shippers
• Shares asset economics across users

Delek Logistics Partners, LP held equity stakes in three joint ventures in 2025, so this cost block covers capital tied up in shared infrastructure plus ongoing oversight. The cash burden comes from funding its share of JV assets, while coordination, reporting, and governance add recurring overhead.

• Three JV equity stakes tie up capital.
• Shared assets create oversight costs.
• Governance and coordination add overhead.

As an MLP, Delek Logistics Partners, LP carries extra corporate, reporting, and governance costs tied to its general partner structure, including management, compliance, and partnership administration. These overheads support the platform but do not directly drive throughput, so they sit above the asset-level operating costs.

• General partner structure adds governance and reporting cost.

• Management and compliance support the full partnership platform.

• These costs are overhead, not direct operating expense.

Delek Logistics Partners, LP's wholesale marketing margins come from selling refined petroleum products to independent third parties, so revenue moves with product margin and transaction volume. In 2025, this stream stayed tied to market activity and customer demand, which means higher spread and throughput can lift earnings fast, while weaker demand can cut margins just as quickly.

• Refined product sales to third parties
• Margin plus volume drives revenue
• Demand and market activity matter most

Delek Logistics Partners, LP earns JV equity income from three pipeline joint ventures, so part of its revenue comes from ownership returns on shared infrastructure, not just direct tariffs. In 2025, this equity-linked stream helped balance fee-based logistics cash flow and lower single-asset risk.

• Three pipeline joint ventures
• Equity-based return stream
• Supports fee revenue stability