Delek Looks to Improve Refining, Midstream Operations in 2026

---

Written by Will Ploch, Assistant Editor-in-Chief for IIR News Intelligence (Sugar Land, Texas)

---

Summary

Delek US is looking a series of developments in 2026 that executives believe will boost its operational performance, particularly in the Permian Basin, and give its midstream business more flexibility.

---

Refining Raises the Roof

Delek US, a subsidiary of Israel conglomerate Delek Group, is preparing for a structural reordering in 2026, as the refining and alternative-fuel developer plans to economically separate its midstream company Delek Logistics Partners (DKL). Along with strong refining margins and regulatory relief, which boosted the U.S.-focused subsidiary's results in 2025, executives said they believe the company is set for a strong year. Industrial Info is tracking more than $2.5 billion worth of active and proposed projects from Delek worldwide, about 25% of which is attributed to Delek US.

Delek's refining business accounted for much of the company's year-over-year growth, fueled by increased crack spreads and the U.S. Environmental Protection Agency's (EPA) decision last year to exempt some smaller refineries from the Renewable Fuel Standard (RFS) program.

"We had a strong operational quarter in our refining system, with solid performance from our four refineries," said Avigal Soreq, the chief executive officer of Delek US, in a quarterly earnings-related conference call. "At Big Spring, our first quarter 2026 planned turnaround is progressing well and remains on track." He added: "This is our only planned turnaround in 2026, which sets our refining system up well for the remainder of the year."

In addition to the ongoing turnaround, Delek's refinery in Big Spring, Texas, is undergoing a series of improvements on some of its major components, including significant expansions to its crude-processing unit, diesel hydrotreater unit and reformer, as well as the addition of a benzene stripper. Soreq and other executives said these improvements to Big Spring's reliability will improve Delek's overall cost structure.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Petroleum Refining Plant and Project databases can learn more about the Big Spring developments--including capacities, investment values and necessary equipment--from a plant profile and detailed reports on the turnaround, expansions to the crude-processing, diesel hydrotreater and reformer units, and the benzene stripper addition.

Delek US reported a net loss of $22.8 million for full-year 2025, compared with a net loss of $560.4 million in 2024. Executives pointed to the company's adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $1.35 billion for 2025, compared with $341.8 million in 2024, much of which they attributed to the refining business.

By the Numbers

• More than $2.5 billion: Total investment value of Delek projects worldwide, as tracked by Industrial Info
• $1.35 billion: Adjusted EBITDA for Delek US in 2025
• $520 million to $560 million: DKL's EBITDA guidance for 2026

DKL: More Room to Maneuver

Delek's U.S.-focused midstream business is playing a bigger role in the Permian Basin, and executives hope to insulate its gains by economically separating it from the rest of the company. This autonomy will give DKL more flexibility in handling its projects and reduce its vulnerability to volatile refining margins.

Industrial Info is tracking activity on 34 U.S. pipeline systems owned by DKL. Subscribers can learn more from a detailed list of pipeline profiles.

"DKL continues to strengthen its premier position in the Permian Basin, supported by the ongoing ramp-up of our gas-processing facilities and continued investment in sour gas handling, treating and processing capabilities," Soreq said in a quarterly press release. "The ongoing growth in third-party cash flows has allowed DKL to largely separate economically from [Delek US], while maintaining its strong organic growth reflected in DKL's 2026 [EBITDA] guidance of $520 million to $560 million."

DKL already has reduced its dependence on its parent company. Executives expect more than 80% of DKL's EBITDA will come from third parties in 2026.

Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for active and proposed projects from Delek worldwide.

Subscribers can click here for a full list of detailed reports for projects mentioned in this article.

Key Takeaways

• Delek US' refining business accounted for much of its 2025 growth.
• Delek's refinery in Big Spring, Texas, is undergoing a series of expansions.
• DKL continues to grow its role in the Permian Basin.

---

About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR News Intelligence) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 250,000 current and future projects worth $30.2 trillion (USD).