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Revenues
 12 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
Revenues Revenues
We generate revenue by charging fees for gathering, transporting, offloading and storing crude oil and natural gas; for storing intermediate products and feed stocks; for water disposal and recycling services; for distributing, transporting and storing refined products; for marketing refined products output of Delek Holdings' Tyler and Big Spring refineries; and for wholesale marketing in the West Texas area. A significant portion of our revenue is derived from long-term commercial agreements with Delek Holdings, which provide for annual fee adjustments for increases or decreases in the CPI, PPI or the FERC index (refer to Note 4 for a more detailed description of these agreements). In addition to the services we provide to Delek Holdings, we also generate substantial revenue from crude oil, natural gas, intermediate and refined products transportation services for, and terminalling and marketing services to, and water disposal and recycling services to third parties primarily in Texas, New Mexico, Tennessee and Arkansas. Certain of these services are provided pursuant to contractual agreements with third parties. Payment terms require customers to pay shortly after delivery and do not contain significant financing components. Delek Holdings, directly or indirectly, accounted for 55.0%, 55.3% and 46.3% of our total revenues for the years ended December 31, 2024, 2023 and 2022, respectively.
The majority of our commercial agreements with Delek Holdings meet the definition of a lease because: (1) performance of the contracts is dependent on specified property, plant or equipment and (2) it is remote that one or more parties other than Delek Holdings will take more than a minor amount of the output associated with the specified property, plant or equipment.
The following table represents a disaggregation of revenue for the gathering and processing, wholesale marketing and terminalling, and storage and transportation segments for the periods indicated (in thousands):
Year Ended December 31, 2024
Gathering and ProcessingWholesale Marketing and Terminalling Storage and TransportationConsolidated
Service Revenue - Third Party$75,353 $— $8,879 $84,232 
Service Revenue - Affiliate (1)
14,111 23,857 54,869 92,837 
Product Revenue - Third Party108,603 230,019 — 338,622 
Product Revenue - Affiliate16,548 131,881 — 148,429 
Lease Revenue - Affiliate150,104 65,765 60,647 276,516 
Total Revenue$364,719 $451,522 $124,395 $940,636 
Year Ended December 31, 2023
Gathering and ProcessingWholesale Marketing and Terminalling Storage and TransportationConsolidated
Service Revenue - Third Party$60,471 $— $11,329 $71,800 
Service Revenue - Affiliate (1)
9,730 48,618 55,691 114,039 
Product Revenue - Third Party98,102 286,704 — 384,806 
Product Revenue - Affiliate15,699 122,969 — 138,668 
Lease Revenue - Affiliate
187,108 47,410 76,578 311,096 
Total Revenue$371,110 $505,701 $143,598 $1,020,409 
Year ended December 31, 2022
Gathering and ProcessingWholesale Marketing and Terminalling Storage and TransportationConsolidated
Service Revenue - Third Party$29,199 $— $21,614 $50,813 
Service Revenue - Affiliate (1)
16,458 32,593 — 49,051 
Product Revenue - Third Party90,383 415,800 — 506,183 
Product Revenue - Affiliate52,692 90,298 — 142,990 
Lease Revenue - Affiliate116,695 50,193 120,482 287,370 
Total Revenue$305,427 $588,884 $142,096 $1,036,407 
(1) Net of $4.2 million of amortization expense for the year ended December 31, 2024 and $7.2 million of amortization expense for the both years ended December 31, 2023 and 2022, related to the marketing contract intangible recorded in the wholesale marketing and terminalling segment.
As of December 31, 2024, we expect to recognize approximately $1.0 billion in service revenues related to our unfulfilled performance obligations pertaining to the minimum volume commitments and capacity utilization under the non-cancelable terms of our commercial agreements with Delek Holdings. Most of these agreements have an initial term ranging from five to ten years, which may be extended for various renewal terms. We disclose information about remaining performance obligations that have original expected durations of greater than one year.
Our unfulfilled performance obligations as of December 31, 2024 were as follows (in thousands):
2025$218,931 
2026200,432 
2027200,432 
2028154,123 
2029 and thereafter265,462 
Total expected revenue on remaining performance obligations$1,039,380