Delek Logistics Partners Lp's Business Segments

Delek Logistics Partners LP is a publicly traded master limited partnership (MLP) involved in the transportation, storage, and marketing of crude oil, refined products, and other petroleum-based products in the United States. The company was founded in 2012 and has its headquarters in Brentwood, Tennessee. Delek Logistics Partners operates through two business segments: Pipelines and Transportation, and Wholesale Marketing and Terminalling.

Pipelines and Transportation Segment:
The Pipelines and Transportation segment includes ownership and operation of crude oil and product pipelines and related transportation and storage assets. Its assets include the Big Spring Gathering System located in Texas, the Paline Pipeline in Arkansas, and the Red River Pipeline in Louisiana. The partnership's pipeline systems primarily support Delek US Holdings' refineries in Texas, Louisiana, and Arkansas. Additionally, it owns and operates marine terminals that facilitate crude oil and refined product deliveries to and from the Gulf Coast.

Wholesale Marketing and Terminalling Segment:
This segment includes the purchase, storage, distribution, and sale of petroleum products at various locations, including terminals, third-party terminals, and refineries. Delek Logistics Partners owns and operates terminals and pipelines in Texas, Arkansas, Tennessee, and Louisiana. Its terminals are used for storing and distributing gasoline, diesel, jet fuel, and other products. The bulk of the produced oil and refined products are marketed through the partnership's wholesale marketing and terminalling segment.

Additional Information:
Delek Logistics Partners LP (DKL) is a subsidiary and the master limited partnership of Delek US Holdings (DK). The company has a diversified portfolio of assets, including long-term, fee-based contracts that provide stable cash flows. As of 2021, its total energies assets exceed $1.4 billion, with a revenue of more than $430 million. The partnership strives to maintain strict environmental compliance and follow safe operating procedures to ensure the safety of its operations, employees and assets. Delek Logistics Partners LP is traded on the New York Stock Exchange (NYSE) under the ticker symbol DKL.

Delek Logistics Partners LP is a prominent player in the logistics and energy sector, offering a diverse range of segments, products, and services designed to support various customer needs. The company is dedicated to providing safe, reliable, and efficient logistics solutions that empower its customers to grow your businesses effectively. Below, we delve into the details of the various segments, products, and services provided by Delek Logistics Partners LP.

Segments:

Delek Logistics operates through four primary business segments, each targeting specific aspects of the energy and logistics landscape:

1. Pipelines and Transportation:
- This segment is responsible for the transportation and storage of both crude oil and refined products. Delek Logistics boasts an extensive network of pipelines and terminals strategically located across the United States. The company manages the efficient movement of products from production sites to end-users while ensuring safety and compliance with regulatory standards.

2. Wholesale Marketing and Terminalling:
- In this segment, Delek Logistics engages in the buying and selling of refined products, including gasoline and diesel fuel. The company operates various terminals and storage facilities that facilitate the storage, handling, and distribution of these refined products to a diverse customer base, including retail fuel stations, industrial users, and commercial enterprises.

3. Crude Oil Gathering:
- This segment focuses on collecting crude oil from various production sites and transporting it to pipeline systems or refinery locations. Delek Logistics has developed a comprehensive gathering infrastructure primarily in key producing regions such as the Permian and Midland basins. This infrastructure enables the company to efficiently manage crude oil logistics, ensuring timely delivery to processing facilities.

4. Wholesale Renewable Products:
- In recognition of the growing demand for sustainable energy solutions, this segment specializes in offering renewable diesel fuel and other low-carbon products. Delek Logistics is committed to sustainability, working to expand its portfolio of renewable offerings and assist customers in reducing their carbon footprints. This sector positions the company as an innovative player in the energy transition landscape.

Products:

Delek Logistics offers a wide array of products across its business segments, including:

1. Crude Oil:
- Essential raw material for refining into various petroleum products.

2. Refined Products:
- This includes gasoline, diesel fuel, and jet fuel, which are vital for transportation and energy generation.

3. Renewable Diesel Fuel:
- A cleaner alternative to fossil fuels, catering to customers focused on sustainability and carbon reduction.

4. Liquefied Petroleum Gas (LPG):
- A versatile fuel used for heating, cooking, and as a feedstock in petrochemical processes.

5. Butane:
- Used as a component in gasoline blending and as a refrigerant in various applications.

6. Propane:
- Commonly used for heating, cooking, and as a fuel for engines in certain sectors.

Asphalt:
- Vital for road construction and maintenance, contributing to infrastructure development.

Services:

To complement its product offerings, Delek Logistics provides a range of services tailored to the needs of its customers:

1. Transportation:
- The company operates a versatile fleet that includes trucks, barges, and pipelines to transport products efficiently. Rail services are also available for the movement of crude oil and other goods, ensuring flexibility and reliability in logistics operations.

2. Storage:
- Delek Logistics manages a comprehensive network of terminals and storage facilities, offering both short-term and long-term storage solutions. This capability enables the company to meet fluctuating demand while ensuring product availability for customers.

3. Marketing:
- As a key player in the energy market, Delek Logistics engages in marketing activities that involve the buying and selling of products. The company provides flexible pricing structures and various delivery options tailored to customer needs, ensuring prompt and efficient service.

4. Crude Oil Gathering:
- The company offers extensive gathering services, especially in key producing regions, enabling producers to transport crude oil effectively to pipeline systems or refineries. Delek Logistics has built a robust network that streamlines this process.

5. Renewable Fuels:
- With an increased focus on sustainability, Delek Logistics is actively involved in the production and distribution of renewable products. This commitment to environmental stewardship reflects the companys aim to diversify its offerings while aligning with global energy trends.

Conclusion:

In conclusion, Delek Logistics Partners LP stands out as a comprehensive provider of logistics and energy solutions, with distinct segments tailored to meet the diverse needs of its customers. The companys dedication to safety, efficiency, and sustainability strengthens its position as a trusted partner in the energy and logistics industries. Through its extensive range of products and services, Delek Logistics continues to play a pivotal role in supporting the growth and success of its customers across the nation.