DKL Q3 FY26 earnings call: key takeaways

• DKL reported adjusted EBITDA of $143 million for the third quarter, in line with the same period last year, and raised full year 2026 adjusted EBITDA guidance to $530 to $560 million (8:05)
• The company emphasized strong performance across all segments and continued financial discipline. (1:24)

Results vs expectations

What changed since last quarter

• Full year adjusted EBITDA guidance was raised to $530 to $560 million from previous expectations. (10:58)
• The company highlighted confidence in its 2026 growth capital program, expecting up to $50 million of run rate EBITDA in 2026 and an additional $60 million in 2027. (8:05)
• The CEO mentioned evaluating options for future investment to expand sour gas processing capacity at the Libby Complex. (13:10)

Guidance

What analysts pressed on

• Whether the $60 million of 2027 EBITDA growth is dependent on the Libby 2 volume ramp. (11:55)
• How soon the company might make a formal decision on further expansion of sour gas processing capacity. (11:55)
• Context around the equity issuance and its relation to balance sheet improvement and potential M&A activity. (14:40)

In their words

• We are raising full year adjusted EBITDA guidance to $530 to $560 million. Avigal Sarek (1:24)
• We are very happy about where we are heading. Mark Hobbs (12:28)
• We need to make sure that our organic projects are well-funded and we are ready to do them on time. (15:10)