Who Owns Delek Logistics Company?

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Who Owns Delek Logistics Partners, LP?

Delek Logistics Partners, LP (DKL) was established in 2012 as a publicly traded master limited partnership by its parent company, Delek US Holdings, Inc. (NYSE: DK). Headquartered in Brentwood, Tennessee, DKL was formed to own, operate, acquire, and develop logistics assets for crude oil and refined products.

As of March 2025, DKL holds a market capitalization of $2.34 billion, underscoring its significant role in the midstream energy sector. Its operations are concentrated in gathering, transporting, storing, and distributing crude oil and refined products, particularly in the Permian Basin and Gulf Coast regions.

Understanding DKL's ownership involves examining its MLP structure, the influence of its parent company, institutional investors, and current market trends. A deeper look into its Delek Logistics PESTEL Analysis reveals the external factors shaping its business.

Delek Logistics Partners, LP was established in 2012 by Delek US Holdings, Inc. as a growth-oriented master limited partnership. Delek US Holdings, Inc. is the primary founder and early owner, holding a significant stake including the general partner interest which confers management control.

Formation Year

Delek Logistics Partners, LP was established in 2012.

Founding Entity

The partnership was formed by Delek US Holdings, Inc.

Initial Assets

Delek US Holdings transferred logistics and marketing assets, including pipelines and terminals.

Public Market Entry

The company entered public markets via an IPO in November 2012.

IPO Fundraising

The initial public offering raised $168 million.

Strategic Purpose

The formation aimed to create a dedicated entity for midstream operations supporting Delek US Holdings.

Delek US Holdings, Inc. was the primary architect and initial majority owner of Delek Logistics Partners, LP. This strategic move in 2012 involved transferring key logistics and marketing assets, such as pipelines and terminals, into the newly formed master limited partnership. Delek US Holdings retained a significant ownership stake, including the 2% general partner interest, which is crucial for management control, and a substantial portion of the limited partner units. This structure ensured Delek US Holdings maintained strategic oversight and operational alignment with its core refining and marketing businesses. The initial public offering in November 2012, which successfully raised $168 million, marked the beginning of broader public ownership and provided capital for growth. This early ownership structure reflects the parent company's intent to leverage the MLP model for efficient capital allocation and focused expansion in the midstream sector, while retaining ultimate strategic direction. Understanding this foundational ownership is key to grasping the Delek Logistics Partners ownership structure explained.

Early Ownership Dynamics

Delek US Holdings, Inc. established Delek Logistics Partners, LP in 2012, acting as the primary founder and initial majority owner. This strategic formation allowed for the transfer of significant midstream assets into a dedicated entity.

• Delek US Holdings, Inc. held the general partner interest (2%), granting management control.
• A substantial portion of limited partner units were also initially held by Delek US Holdings.
• The partnership's formation was designed to support Delek US Holdings' refining and marketing segments.
• The IPO in November 2012 raised $168 million, initiating broader public ownership.
• This structure aimed for efficient capital allocation and growth in the midstream sector.

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Delek Logistics Partners, LP (DKL) began trading publicly on November 2, 2012, with an initial public offering (IPO) of $21 per unit, raising $168 million. This event broadened its ownership base beyond its parent company, making its units available to public shareholders.

Delek US Holdings, Inc. continues to be the primary owner of Delek Logistics Partners, LP, holding a 2% general partner interest that provides operational control. The remaining limited partner interests are distributed among public shareholders, which include a significant portion of institutional investors. As of August 2025, 124 institutional owners held over 20 million shares, indicating substantial capital commitment from entities such as Alps Advisors Inc and Invesco Ltd. These institutional holdings, alongside an increase in mutual fund ownership to 15.67% in February 2025, highlight the growing appeal of DKL units to managed portfolios.

Capital Infusions and Ownership Shifts

Public offerings are crucial for company growth, providing capital for strategic initiatives and financial restructuring. These events directly influence the Delek Logistics Partners ownership structure.

• In October 2024, a public offering of 3,846,153 common units at $39.00 per unit was priced.
• The net proceeds were earmarked for redeeming convertible preferred units and reducing revolving credit facility borrowings.
• Underwriters exercised their option to purchase an additional 576,922 common units, further diversifying the public float.
• These capital market activities underscore how financing needs can reshape the Delek Logistics Partners owner landscape.
• For a deeper understanding of its financial journey, refer to the Brief History of Delek Logistics.

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The governance of Delek Logistics Partners, LP is managed by its general partner, Delek Logistics GP, LLC, a subsidiary of Delek US Holdings, Inc. The Board of Directors of Delek Logistics GP, LLC is tasked with overseeing the company's operations and strategic direction.

As a limited partnership, Delek Logistics Partners, LP vests management and control with its general partner, Delek Logistics GP, LLC. Unitholders, as limited partners, do not directly participate in management or the selection of the Board. While the NYSE does not mandate a majority of independent directors for MLPs, the Board of Directors of Delek Logistics GP, LLC aims to include at least three independent directors, adhering to NYSE and SEC standards. The close ties with Delek US Holdings, which holds a controlling interest, have historically minimized public proxy battles or activist investor campaigns concerning the company's governance, reflecting a stable Delek Logistics Partners ownership structure.

Understanding Delek Logistics Partners' Governance

The management and voting power for Delek Logistics Partners, LP are concentrated within its general partner, Delek Logistics GP, LLC. This structure influences how decisions are made and who holds sway in the company's direction.

• Delek Logistics GP, LLC, a subsidiary of Delek US Holdings, Inc., manages the partnership.
• Limited partners, or unitholders, do not directly elect the Board of Directors.
• Key board members often hold executive positions within the affiliated entities, highlighting strong management integration.
• Voting rights for certain large unitholders are restricted by the partnership agreement.
• The company strives for board independence in line with regulatory guidelines, though the controlling interest of Delek US Holdings is a significant factor in its governance.
• For a deeper dive into strategic approaches, consider the Marketing Strategy of Delek Logistics.

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Over the past few years, Delek Logistics Partners, LP has navigated significant developments impacting its ownership landscape. These changes reflect strategic financial maneuvers and ongoing adjustments in its relationship with its parent entity, influencing who owns Delek Logistics Partners.

Recent strategic moves by Delek Logistics Partners, LP, including a substantial public offering in October 2024 that generated approximately $166 million, underscore a focus on financial strengthening. These funds were earmarked for redeeming convertible preferred units and reducing outstanding debt, a key step in optimizing its capital structure. Furthermore, an August 2024 assignment of a marketing agreement led to the redemption of common units previously held by Delek Holdings, illustrating a dynamic adjustment in the ownership stake between the two entities.

Financial Strengthening Initiatives

The company's public offering in October 2024 raised significant capital. These proceeds are vital for enhancing financial flexibility and reducing leverage.

Strategic Asset Expansion

Acquisitions in 2024, such as H2O Midstream and Gravity, bolster Delek Logistics Partners' position in water midstream services. Expansion into crude oil transport via the Wink to Webster Pipeline further diversifies its asset base.

Management and Operational Adjustments

Leadership changes in early 2025, including new CFO and EVP roles, signal an evolving management team. These shifts are occurring alongside strategic operational adjustments, such as the marketing agreement assignment.

Future Growth Outlook

The company anticipates strong cash flow growth in 2025, driven by integrating recent acquisitions and expanding its gas processing capacity. This focus on organic growth and asset optimization is central to its forward-looking strategy, aligning with its Mission, Vision & Core Values of Delek Logistics.

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