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.”
