Delek Logistics Partners (DKL)
NYSE:DKL
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Delek Logistics
(NYSE:DKL)
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Rating:71Outperform
Price Target:
$59.00
▲(10.24% Upside)
Action:UpgradedDate:03/28/26
DKL scores well on operational performance and outlook (record EBITDA, reiterated 2026 guidance, solid liquidity) and offers appealing income/valuation (8.25% yield, ~13.5x P/E). The primary limiter is financial risk from a thin/volatile equity base and the recent drop to near-zero/negative free cash flow, which heightens sensitivity to execution timing (notably the sour gas/AGI ramp).
Positive Factors
Record EBITDA & Margins
Delivering record adjusted EBITDA ($536M) alongside strong EBITDA and net margins demonstrates durable earnings power from fee-based midstream contracts. This sustained profitability supports distribution coverage and reinvestment capacity even through commodity cycles, underpinning long‑term cash flow stability.
Negative Factors
Weak Equity Cushion
Multi‑year negative or minimal equity leaves little capital buffer against asset write‑downs or operational setbacks. High leverage and inconsistent debt metrics constrain financial flexibility, increase refinancing risk, and make distributable cash sensitive to even modest earnings swings over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Record EBITDA & Margins
Delivering record adjusted EBITDA ($536M) alongside strong EBITDA and net margins demonstrates durable earnings power from fee-based midstream contracts. This sustained profitability supports distribution coverage and reinvestment capacity even through commodity cycles, underpinning long‑term cash flow stability.
Read all positive factors
Delek Logistics (DKL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.68B
Dividend Yield9.78%
Average Volume (3M)70.92K
Price to Earnings (P/E)13.5
Beta (1Y)0.28
Revenue Growth-1.78%
EPS Growth9.32%
CountryUS
EmployeesN/A
SectorEnergy
Sector Strength52
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)0.88
Shares Outstanding53,512,344
10 Day Avg. Volume70,529
30 Day Avg. Volume70,924
Financial Highlights & Ratios
PEG Ratio1.30
Price to Book (P/B)390.45
Price to Sales (P/S)2.36
P/FCF Ratio-77.90
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue2.65
Enterprise Value/Gross Profit12.66
Enterprise Value/Ebitda5.58
Forecast
1Y Price Target
$54.50Price Target Upside1.83% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)4.37
Revenue Forecast (FY)$1.16B
Delek Logistics Business Overview & Revenue Model
Company Description
Delek Logistics Partners, LP owns and operates logistics and marketing assets for crude oil, and intermediate and refined products in the United States. It operates through three segments: Pipelines and Transportation, Wholesale Marketing and Term...
How the Company Makes Money
DKL makes money primarily by charging fees for midstream logistics services under commercial agreements. Key revenue streams include: (1) Pipeline transportation and related tariff/fee revenue earned by moving crude oil and refined products throug...
Delek Logistics Earnings Call Summary
Earnings Call Date:Feb 27, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Positive
The call presented multiple strong positives: record 2025 adjusted EBITDA ($536M), a record Q4 ($142M, +24.6% YoY), successful acquisitions and integration of H2O and Gravity, Libby 2 commissioning (160MM scf/day), strong segment gains (notably Storage & Transportation and Pipeline JV), solid liquidity (~$940M) and an increase in distributions. Key risks and negatives centered on a slower-than-expected sour gas ramp, dependence on completion of AGI and sour infrastructure to realize projected EBITDA gains, a flat Wholesale segment, and a guidance range that reflects sensitivity to execution timing. Overall, the highlights and financial achievements materially outweigh the operational timing risks described.Positive Updates
Record Annual Adjusted EBITDA
Delek Logistics achieved a record adjusted EBITDA of $536 million for 2025, driven by strong execution and the contributions from the acquisitions of H2O and Gravity.
Negative Updates
Sour Gas Ramp Slower Than Initial Expectations
Ramp-up of sour gas processing and utilization has been slower than originally anticipated. Full utilization and the associated EBITDA uplift are contingent on completion of the AGI well and sour gas gathering infrastructure, creating timing uncertainty.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Annual Adjusted EBITDA
Delek Logistics achieved a record adjusted EBITDA of $536 million for 2025, driven by strong execution and the contributions from the acquisitions of H2O and Gravity.
Read all positive updates
Company Guidance
The company reiterated full-year 2026 adjusted EBITDA guidance of $520 million to $560 million, following a record 2025 adjusted EBITDA of $536 million and a record Q4 2025 adjusted EBITDA of approximately $142 million (up from $114 million a year ago and $6 million above the Q3 record); Q4 distributable cash flow as adjusted was $73 million with a DCF coverage ratio as adjusted of ~1.22x. Management noted the Libby Complex capacity is now ~160 million scf/day, Q4 capital expenditures were about $32 million (including ~$26 million of growth capex toward sour gas capabilities), available liquidity under credit facilities of roughly $940 million, and that roughly 80% of run‑rate EBITDA is expected to come from third parties in 2026 (post-transaction third‑party EBITDA now ~82%); segment metrics in Q4 included G&P EBITDA of $71 million (vs. $66M), Wholesale Marketing & Terminalling $21 million (flat), Storage & Transportation $35 million (vs. $18M), and Investments in Pipeline JV $26 million (vs. $18M).Delek Logistics Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
36
Negative
Cash Flow
58
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.01B | 940.64M | 1.02B | 1.04B | 700.90M |
| Gross Profit | 211.67M | 243.75M | 279.72M | 246.62M | 214.24M |
| EBITDA | 484.43M | 394.70M | 370.28M | 311.94M | 265.18M |
| Net Income | 176.46M | 142.69M | 126.24M | 159.05M | 164.82M |
Balance Sheet | |||||
| Total Assets | 2.78B | 2.04B | 1.64B | 1.68B | 935.07M |
| Cash, Cash Equivalents and Short-Term Investments | 10.89M | 5.38M | 3.75M | 7.97M | 4.29M |
| Total Debt | 35.18M | 1.89B | 1.72B | 1.68B | 919.85M |
| Total Liabilities | 2.77B | 2.01B | 1.80B | 1.79B | 1.04B |
| Stockholders Equity | 6.11M | 35.53M | -161.87M | -110.70M | -103.99M |
Cash Flow | |||||
| Free Cash Flow | -30.64M | 74.55M | 124.97M | 45.47M | 251.15M |
| Operating Cash Flow | 237.12M | 206.34M | 225.32M | 192.17M | 275.16M |
| Investing Cash Flow | -444.20M | -384.58M | -89.63M | -770.44M | -16.36M |
| Financing Cash Flow | 212.59M | 179.87M | -139.91M | 581.95M | -258.75M |
Delek Logistics Technical Analysis
Negative
53.52
Price Trends
52.29
Negative
48.59
Positive
45.22
Positive
Market Momentum
-0.47
Positive
38.67
Neutral
28.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DKL, the sentiment is Negative. The current price of 53.52 is above the 20-day moving average (MA) of 52.53, above the 50-day MA of 52.29, and above the 200-day MA of 45.22, indicating a neutral trend. The MACD of -0.47 indicates Positive momentum. The RSI at 38.67 is Neutral, neither overbought nor oversold. The STOCH value of 28.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DKL.
Delek Logistics Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $15.41B | 8.81 | 14.75% | 8.54% | -7.53% | 9.74% | |
73 Outperform | $8.08B | 11.96 | 59.38% | 8.45% | 10.78% | 19.10% | |
71 Outperform | $2.68B | 13.53 | 461.30% | 9.78% | -1.78% | 9.32% | |
71 Outperform | $31.51B | 8.67 | 122.75% | 6.07% | 15.43% | 0.43% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
64 Neutral | $549.41M | -169.84 | 1.44% | ― | 17.09% | 72.64% | |
62 Neutral | $16.56B | -80.97 | -1.79% | 6.08% | 38.38% | 3.35% |
* Energy Sector Average
DKL
Delek Logistics
50.09
16.48
49.04%
CQP
Cheniere Energy Partners
65.10
12.46
23.67%
PAA
Plains All American
21.84
7.14
48.57%
SMC
Summit Midstream
28.97
1.58
5.77%
VNOM
Viper Energy
46.31
11.66
33.65%
HESM
Hess Midstream Partners
38.91
6.42
19.75%
Delek Logistics Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Delek Logistics Secures New $1.3 Billion Credit Facility
Positive
Mar 27, 2026
On March 26, 2026, Delek Logistics Partners entered into a new $1.3 billion revolving credit agreement with a syndicate of banks led by Truist Bank, replacing and refinancing its prior revolving and term loan facilities. The facility, which mature...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.