XML 76 R32.htm IDEA: XBRL DOCUMENT
v3.25.4

Acquisitions (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2025
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract] |
Business Combination | The table below presents the purchase price (in thousands):
Base purchase price: | $ | 291,561 |
Less: Adjusted Net Working Capital (as defined in the Gravity Acquisition Agreement) | 3,814 |
Plus: V arious closing adjustments | 5,433 |
Adjusted purchase price | $ | 300,808 |
Cash paid | $ | 209,297 |
Fair value of common units issued (1) | 91,511 |
Purchase price | $ | 300,808 |
(1)The increase from the $85.0 million base purchase price outlined in the purchase agreement for the common unit consideration was driven by an appreciation in the common unit price. The table below presents the purchase price (in thousands):
Base purchase price: | $ | 230,000 |
Less: Adjusted Net Working Capital (as defined in the H2O Midstream Acquisition Agreement) | (2,596) |
Plus: various closing adjustments | 2,331 |
Adjusted purchase price | $ | 229,735 |
Cash paid | $ | 159,735 |
Fair value of Preferred Units issued | 70,000 |
Purchase price | $ | 229,735 |
Business Combination, Recognized Asset Acquired and Liability Assumed | The following table summarizes the fair values of assets acquired and liabilities assumed in the Gravity Acquisition as of January 2, 2025 (in thousands):
Assets acquired: |  |
Cash and cash equivalents |  | $ | 5,317 |
Accounts receivables |  | 16,433 |
Inventories |  | 1,851 |
Other current assets |  | 1,681 |
Property, plant and equipment |  | 191,485 |
Operating lease right-of-use assets |  | 107 |
Customer relationship intangible (1) |  | 66,271 |
Other intangibles (1) |  | 31,921 |
Other non-current assets |  | 59 |
Total assets acquired |  | 315,125 |
Liabilities assumed: |  |
Accounts payable |  | 2,459 |
Accrued expenses and other current liabilities |  | 5,733 |
Current portion of operating lease liabilities |  | 54 |
Asset retirement obligations |  | 6,022 |
Operating lease liabilities, net of current portion |  | 49 |
Total liabilities assumed |  | 14,317 |
Fair value of net assets acquired |  | $ | 300,808 |
(1)The acquired intangible assets amount includes the following identified intangibles: •Customer relationship intangible that is subject to amortization with a fair value of $66.3 million, which will be amortized over approximately 32 years. •Rights-of-way intangibles are valued at $31.9 million, the majority of which have an indefinite life. The following table summarizes the fair values of assets acquired and liabilities assumed in the H2O Midstream Acquisition as of September 11, 2024 (in thousands):
Assets acquired: |  |
Accounts receivables |  | $ | 6,644 |
Inventories |  | 2,448 |
Other current assets |  | 879 |
Property, plant and equipment |  | 172,374 |
Operating lease right-of-use assets |  | 2,058 |
Customer relationship intangible (1) |  | 26,270 |
Other intangibles (1) |  | 33,268 |
Other non-current assets |  | 21 |
Total assets acquired |  | 243,962 |
Liabilities assumed: |  |
Accounts payable |  | 1,833 |
Accrued expenses and other current liabilities |  | 7,045 |
Current portion of operating lease liabilities |  | 278 |
Asset retirement obligations |  | 4,852 |
Operating lease liabilities, net of current portion |  | 219 |
Total liabilities assumed |  | 14,227 |
Fair value of net assets acquired |  | $ | 229,735 |
(1)The acquired intangible assets amount includes the following identified intangibles: •Customer relationship intangible that is subject to amortization with a fair value of $26.3 million, which will be amortized over 13.4 years. •Rights-of-way intangibles are valued at $28.5 million, which have an indefinite life. •Favorable supply contract intangible that is subject to amortization with a fair value of $4.8 million which will be amortized over 4.8 years.
Schedule of Business Combination, Fair Value Adjustments | During the year ended December 31, 2025, the Partnership recorded the following fair value adjustments to the preliminary purchase price allocation, based on new information about facts and circumstances that existed as of the acquisition date:
Balance Sheet Description | Preliminary Value | Final Value | Change
Property, plant and equipment | $ | 208,313 |  | $ | 191,485 |  | $ | (16,828) |
Customer relationship intangible | $ | 50,674 |  | $ | 66,271 |  | $ | 15,597 |
Asset retirement obligations | $ | 7,202 |  | $ | 6,022 |  | $ | (1,180) |
Business Combination, Pro Forma Information | The following table summarizes the unaudited pro forma financial information of the Partnership assuming the Gravity Acquisition had occurred on January 1, 2024. The unaudited pro forma financial information has been adjusted to give effect to certain pro forma adjustments that are directly related to this acquisition based on available information and certain assumptions that management believes are factually supportable. The most significant pro forma adjustments relate to (i) incremental interest expense associated with revolving credit facility borrowings incurred in connection with this acquisition, (ii) incremental depreciation resulting from the estimated fair values of acquired property, plant and equipment, (iii) incremental amortization resulting from the estimated fair value of the acquired customer relationship intangible and, (iv) transaction costs. The unaudited pro forma financial information excludes any expected cost savings or other synergies as a result of this acquisition. The unaudited pro forma financial information is not necessarily indicative of the results of operations that would have been achieved had this acquisition been effective as of the date presented, nor is it indicative of future operating results of the combined company. Actual results may differ significantly from the unaudited pro forma financial information.
|  |  | Year Ended December 31,
|  |  |  |  | 2025 |  | 2024
(in thousands) |  |  |  |  |  |  |
Net revenues |  |  |  |  | $ | 1,013,323 |  |  | $ | 1,058,936 |
Net income attributable to partners |  |  |  |  | $ | 185,556 |  |  | $ | 149,185 |
The following table summarizes the unaudited pro forma financial information of the Partnership assuming the H2O Midstream Acquisition had occurred on January 1, 2023. The unaudited pro forma financial information has been adjusted to give effect to certain pro forma adjustments that are directly related to this acquisition based on available information and certain assumptions that management believes are factually supportable. The most significant pro forma adjustments relate to (i) incremental interest expense associated with revolving credit facility borrowings incurred in connection with this acquisition, (ii) incremental depreciation resulting from the estimated fair values of acquired property, plant and equipment, (iii) incremental amortization resulting from the estimated fair value of the acquired customer relationship intangible and, (iv) transaction costs. The unaudited pro forma financial information excludes any expected cost savings or other synergies as a result of this acquisition. The unaudited pro forma financial information is not necessarily indicative of the results of operations that would have been achieved had this acquisition been effective as of the date presented, nor is it indicative of future operating results of the combined company. Actual results may differ significantly from the unaudited pro forma financial information.
|  |  | Year Ended December 31,
|  |  |  |  | 2024 |  | 2023
(in thousands) |  |  |  |  |  |  |
Net revenues |  |  |  |  | $ | 985,232 |  |  | $ | 1,107,103 |
Net income attributable to partners |  |  |  |  | $ | 156,238 |  |  | $ | 142,376 |

X
- Definition Schedule Of Business Combination, Fair Value Adjustments + References No definition available. + Details
Name: | dkl_ScheduleOfBusinessCombinationFairValueAdjustmentsTableTextBlock
Namespace Prefix: | dkl_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of pro forma revenue and earnings for business combination or aggregate of series of individually immaterial business combinations. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 805 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 8 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479328/805-10-50-8 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 805 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 49 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479303/805-10-55-49 Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 805 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479328/805-10-50-3 Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(2) -SubTopic 10 -Topic 805 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479328/805-10-50-2 Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(3) -SubTopic 10 -Topic 805 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479328/805-10-50-2 + Details
Name: | us-gaap_BusinessAcquisitionProFormaInformationTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_BusinessCombinationAndAssetAcquisitionAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of business combination. Includes, but is not limited to, recognized asset and liability. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 805 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 8 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479328/805-10-50-8 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 805 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479303/805-10-55-41 Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 805 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479907/805-20-50-2 Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 805 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479581/805-30-50-2 Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 805 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479581/805-30-50-1 Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 805 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479907/805-20-50-1 Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 805 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479328/805-10-50-3 Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 805 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479328/805-10-50-2 + Details
Name: | us-gaap_ScheduleOfBusinessAcquisitionsByAcquisitionTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of asset acquired and liability assumed in business combination and recognized at acquisition date. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 805 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479907/805-20-50-2 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 805 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479907/805-20-50-1 + Details
Name: | us-gaap_ScheduleOfRecognizedIdentifiedAssetsAcquiredAndLiabilitiesAssumedTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration