Hello, everyone. Thank you for joining us, and welcome to the Delek Logistics Partners First Quarter 2026 Earnings Call. I will now hand the conference over to Robert Wright, EVP and Chief Financial Officer. Robert, please go ahead.

Good morning, and welcome to the Delek Logistics Partners First Quarter Earnings Conference Call. Participants joining me on today's call will include Avigal Soreq, President and Chairman; Reuven Spiegel, EVP; as well as other members of our management team. As a reminder, this conference call will contain forward-looking statements as defined under the federal securities laws, including statements regarding guidance and future business outlook. Any forward-looking statements made during today's call involve risks and uncertainties that may cause actual results to differ materially from today's comments. Factors that could cause actual results to differ are included in our SEC filings. The company assumes no obligation to update any forward-looking statements. I will now turn the call over to Avigal for opening remarks. Avigal?

Thank you, Robert. DKL reported $132 million in adjusted EBITDA in the quarter, and we are very confident about achieving full year EBITDA guidance of $520 million to $560 million. DKL saw strong execution in the first quarter despite some challenges associated with Winter Storm Fern. These results are a reflection of strength in all segments, advancing our position as a premier full-service provider of crude, gas and water in the Permian Basin. Now let me talk about each one of the businesses in detail. Starting with gas. We have successfully completed the drilling of our first AGI well, taking an additional step towards completing our industry-leading comprehensive sour gas solution. We are very excited about providing a comprehensive capability to our customers, further supporting long-term oil and gas production growth in the Delaware Basin. Moving to crude. Both DPG and DGG crude gathering operations continue to see strength despite some challenges tied to well shut-ins related to Winter Storm Fern. We have increased our overall gathering capacity and look forward to further optimizing and growing the business over the rest of the year. Our water business continued to perform strongly, and we are exploring additional opportunities in this space. Reuven will share further insight on these developments. The combined gas, crude and water offering in the Permian Basin has increased our competitive position and built a strong platform for growth. We will continue to capture the growth opportunities in a disciplined manner, managing leverage and coverage. We also intend to remain good stewards of our stakeholders' capital. Our Board of Directors has approved our 53rd consecutive quarterly distribution increase, raising the distribution to $1.13 per unit. This is an extraordinary achievement, and we're extremely proud of our team and the financial prudence that brought us here. Delek Logistics is well positioned as a strong independent full-suite midstream service provider. With the foundation we have built and the opportunities ahead, we are confident in our ability to continue delivering sustainable growth and long-term value for our unitholders. I will now hand it over to Reuven, who will provide more details on our operations.

Thank you, Avigal. As Avigal mentioned, we are excited about DKL's future and the recent rally in group prices, along with the strength of our three-service platform presenting incremental opportunities to further increase our Permian position. The strength in third-party business continues to increase our economic separation from our sponsor, DK. In 2026, on a pro forma basis, we expect approximately 80% of our run-rate EBITDA will come from third parties. Turning to our business. We continue to work hard to bring an industry-leading sour gas solution in the Delaware Basin. The first step in the process was to complete our processing capacity expansion. As Avigal mentioned, we have completed the drilling of our first AGI well, and currently we're in the process of completing the build-out of the sour gas gathering infrastructure such as compressor stations before transferring the system to operations. We are in sync with our producer customers and the system is expected to be in line with producer needs. As we have mentioned in the past, while our ramp-up has been slower versus our initial expectation for our Sargas system build-out, we expect to see a step change in our utilization. The step change in utilization is likely to bring forward the need for additional processing capacity. We are looking at our options and continue to explore innovative ways to add capacity along with making selected investments that will support future expansion of the Libby complex. Our Delaware crude gathering volumes were impacted by well shut-ins because of Winter Storm Fern and the colder-than-normal temperatures during the quarter. We have seen these volumes recover in the second quarter and expect Delaware crude gathering volumes to continue to increase over the rest of the year. Our crude gathering business is in a very strong place, and our combined crude and water offering is yielding great results. Moving to our water business. I'm very pleased with the start we have had in our produced water gathering business. Our larger water footprint in the Permian Basin post our acquisition of Citi and H2O Midstream, along with the rising water cuts in the basin, is accentuating the need for increased innovation to meet customer needs. We believe produced water gathering and disposal will require a platform approach as permitting for new SWDs remains limited and producer activity shifts across the basin. We look forward to updating the market as we bring forward these solutions. With that, I will pass it on to Robert.

Thank you, Reuven. As Avigal and Reuven noted, we began 2026 with strong momentum, continuing to advance the Delek Logistics growth story. While we are delivering meaningful financial and operational progress across the partnership, we remain equally focused on achieving our long-term leverage and coverage targets. Despite approximately $10 million in headwinds from Winter Storm Fern, we outperformed expectations in our growth trajectory, and we're able to achieve our best first quarter results to date. This performance reinforces our confidence in the outlook for the balance of the year. We continue to make solid progress on our planned growth capital spend of $180 million to $190 million, which we expect will yield approximately $75 million in incremental EBITDA on a run-rate basis. From a balance sheet perspective, we exited the first quarter in a position of strength, having upsized and extended our revolving credit facilities to $1.3 billion, now maturing in 2031. This increased available liquidity to approximately $1.1 billion. We ended the quarter with an adjusted leverage ratio of 4.05x, providing meaningful financial flexibility to execute on our growth agenda while maintaining a disciplined capital structure. Turning to our results. Adjusted EBITDA for the quarter was approximately $132 million compared to $123 million in the same period last year. Distributable cash flow as adjusted totaled $72 million, and our DCF coverage ratio remained stable at approximately 1.2x. We are also pleased to announce our 53rd consecutive distribution increase, bringing the quarterly distribution to $1.13 per unit. In the Gathering and Processing segment, adjusted EBITDA for the quarter was $83 million compared to $81 million in the first quarter of 2025. The increase was primarily due to increased margins recognized within the segment. Wholesale Marketing and Terminalling adjusted EBITDA was $14 million compared to $18 million in the prior year. The decrease was primarily due to the impact of the 2024 amended extend agreement with Delek. Storage and transportation adjusted EBITDA in the first quarter was $25 million compared with $14 million in the first quarter of 2025; the increase primarily reflects the impact of the January 2026 related party transaction. Finally, the investments in pipeline joint venture segment contributed $18 million this quarter in adjusted EBITDA compared with $17 million in the first quarter of 2025 driven by strong performance from the Wing to Amster joint venture. Moving now to capital expenditures. Total capital spending for the first quarter was approximately $50 million. Of this amount, $42 million was gross capital, primarily related to the drilling of our first AGI well in addition to the build-out of new sour gas gathering infrastructure. The remainder of the spend was directed towards other growth projects, including advancing new connections across our crude gathering systems. Looking ahead to 2026, as Avigal mentioned, we remain confident in our earnings trajectory and are reaffirming our full year 2026 EBITDA guidance to a range of $520 million to $560 million. With that, we can open the call for questions.

Your first question comes from the line of Doug Erwin from Citi.

I just wanted to—first question, just wanted to start with the guidance range and how you're thinking about it in today's macro environment. Does the low end of that range look like an easier lift today than when you gave it earlier in the year? I'm just curious what you're hearing from producers on your acreage as well as if you might have any pockets of direct commodity or spread exposure you might be able to take advantage of in the current environment.

Yes, Doug, you nailed it. Our optimism around our guidance is being driven by two things. One is the macro environment, and second is our execution and our strategy. On the macro side, the premium risk that we had previously is changing. It's very clear that the premium risk we had last year is not the premium risk we see today. And we also see a lingering effect from the macro even after the kinetic event is over, which will emphasize U.S. shale as a safe harbor for crude supply around the globe. So that's put us in a very good position, both in the Midland area and in the Delaware area. Our combined offering of gas, crude and water is a unique offering that gives our customers capabilities that not many provide, and that positions us very well. We are also encouraged by the developments in our gas business, which is providing a comprehensive solution. With that, I will turn to Reuven to give his insights.

Thank you, Avigal. If we look at our segments, water is performing above our expectations, and the combined water and crude option is opening opportunities for continued growth. Crude is solid, and we are seeing opportunities in our Delaware business. In addition, we enjoy some tailwinds from the Iran conflict. And finally, gas will ramp up in the second half of the year. So with that said, we feel very comfortable with our guidance range.

Great. And maybe just following up on the gas ramp in the second half of the year. Could you maybe provide a little more detail around what's left to do on the gathering side and what that timing might look like? And then I'm curious how soon after that ramp you might be positioned to be able to announce the next expansion and what that build cycle might look like, given that you've already spent some of that early CapEx on future expansions.

Yes. Thank you for the question. We actually made a lot of progress this quarter, as we mentioned in the prepared remarks; it has been a multistep process. One of the critical path items was drilling the AGI well, which we completed successfully. Now we're focusing on completing all the associated infrastructure like the compressor stations. We do expect our gas utilization to reach capacity in the next three to six months. In addition, as you mentioned, we have already made some selective investments and we're looking at different ways to make additional processing capacity available in the most cost-effective manner.

Your next question comes from the line of Gabe Moreen from zoo.

You catalyzed a little bit with some, I think, growing in water comments. So can you maybe just talk about what you're seeing? Is there some systems whether it's private equity, producer-backed, what you might be seeing out there size-wise, materiality—just curious on those comments.

Yes, absolutely. I will give a higher-level view around it and Mario, who leads energy around the topic, will chime in. We're not going to be specific about deals and size until we are fully ready to discuss them. But the combination of crude, water and gas in the area where we're operating in a meaningful and sizable way is giving us a tailwind, and we are very pleased about that. We have very good strategic discussions. The combination of strategy, location and execution is what we are aiming to achieve and we're very happy about that. Mario, do you want to chime in?

Yes. Thank you, Avigal. We are likely to see continued and growing need for water with each barrel of produced oil. Water is already produced on a very large scale and the demand keeps growing. So we believe there is a need for effective treatment and a more comprehensive approach for gathering, treatment and disposal, particularly with the length of time and complexities needed to get permits today. We're looking at ways to come up with creative solutions around this, and we'll provide more color and updates when we are ready in the near future.

And then you mentioned, I think, the impact on volumes from some of the winter storms that I think they've recovered at this point. I'm just curious also Waha seems to be a fairly big factor based on where natural gas is pricing in the basin. Are you seeing any shut-ins that are Waha-related or producer timing delays because of pricing in the basin?

Yes. You're right, your observation was accurate. The event was a discrete event; it was not a lingering event, but when it happened it was meaningful and then markets came back to normalcy. I'll turn it over to Robert, our CFO, to give you more color around the impacts to the quarter.

Yes. Thanks, Avigal. Primary impacts were on crude, both in the Midland and Delaware Basins, and also a little bit on the gas processing side. As we stated in our remarks, there was very limited impact, if any, to our water business overall. But it did have an approximate $10 million headwind to our results for the period. That said, as you saw, we did have very strong performance throughout the partnership for the first quarter, and our outlook for the remainder of the year remains strong with Winter Storm Fern behind us. I'll pass to Avigal as well to talk about Waha and takeaway capacity.

Gabe, we've discussed this in the past. Waha is an important piece of the Permian story, and you covered this well. A lot of residue pipelines are going to start coming up in the second half of this year, which is going to relieve a lot of pressure that some of our producer customers have faced in terms of takeaway capacity on the natural gas side. Overall, these developments—higher call on U.S. shale crude as a result of the Iran conflict and Waha gas prices finding a floor based upon incremental rest-of-gas takeaway capacity that's going to come online—are very positive for DKL because we are in the right neighborhood. As producers have capacity to put this gas into the right market, you will see more production come online. All three of our businesses—gas, water and crude—will benefit from that. We are excited about how this year plays out as far as gas takeaway capacity is concerned.

Thank you for the questions. There are no further questions at this time, and we have reached the end of the Q&A session. I will now turn the call back to Avigal Soreq, President and Chairman, for closing remarks.

Thank you. I want to thank my colleagues around the table. I want to thank the investors that joined us today for believing in us and sticking with the story. I want to thank our Board of Directors and, most importantly, our employees who work nights and days to make our company the best we can. Thank you, everyone.

This concludes today's call. Thank you for attending. You may now disconnect.