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Delek Logistics Partners (DKL)
:DKL
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Delek Logistics
(NYSE:DKL)
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Select Model
Rating:66Neutral
Price Target:
$49.00
▲(6.89% Upside)
Delek Logistics receives a strong score driven by positive earnings call highlights, including record EBITDA and strategic growth initiatives. The valuation is attractive with a high dividend yield. However, financial performance is tempered by high leverage and liquidity concerns.
Positive Factors
Revenue Stability
Long-term contracts ensure consistent revenue streams, reducing volatility and providing financial stability in the energy sector.
Strategic Acquisitions
Strategic acquisitions expand market reach and capabilities, strengthening competitive position and supporting long-term growth.
Operational Efficiency
Strong operational efficiency and increased guidance reflect robust management execution and capacity to generate cash flow.
Negative Factors
Revenue Volatility
Inconsistent revenue growth can hinder long-term planning and investment, affecting overall financial health and market confidence.
High Leverage
High leverage increases financial risk, potentially limiting flexibility and increasing vulnerability to economic downturns.
Free Cash Flow Inconsistency
Inconsistent free cash flow and high capital expenditures may strain liquidity, affecting the ability to fund operations and growth.
Delek Logistics (DKL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.42B
Dividend Yield9.71%
Average Volume (3M)65.82K
Price to Earnings (P/E)14.7
Beta (1Y)0.31
Revenue Growth-1.78%
EPS Growth9.32%
CountryUS
EmployeesN/A
SectorEnergy
Sector Strength52
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)0.85
Shares Outstanding53,480,400
10 Day Avg. Volume42,132
30 Day Avg. Volume65,817
Financial Highlights & Ratios
PEG Ratio4.53
Price to Book (P/B)56.44
Price to Sales (P/S)2.13
P/FCF Ratio25.94
Enterprise Value/Market Cap1.95
Enterprise Value/Revenue4.89
Enterprise Value/Gross Profit21.80
Enterprise Value/Ebitda10.54
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Delek Logistics Business Overview & Revenue Model
Company DescriptionDelek Logistics (DKL) is a master limited partnership (MLP) focused on the logistics and transportation of crude oil and refined products. The company operates a diversified portfolio that includes pipelines, storage facilities, and other logistical assets primarily in the southeastern United States. DKL aims to enhance its value through efficient operations and strategic acquisitions within the energy sector, providing essential services to its parent company, Delek US Holdings, and other third-party customers.
How the Company Makes MoneyDelek Logistics generates revenue primarily through the transportation and storage of crude oil and refined petroleum products. This includes fees collected from customers for the use of its pipeline and storage facilities. The company operates on a fee-based model, which provides stable cash flows, especially with long-term contracts in place. Key revenue streams include transportation tariffs, storage fees, and ancillary services related to logistics management. Additionally, partnerships with refining and marketing entities, particularly its relationship with Delek US Holdings, play a crucial role in securing consistent business and optimizing operational efficiencies, ultimately contributing to its earnings.
Delek Logistics Earnings Call Summary
Earnings Call Date:Oct 28, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 03, 2026
Earnings Call Sentiment Positive
Delek Logistics Partners demonstrated strong financial performance with record-setting adjusted EBITDA and increased full-year guidance. The successful commissioning of the Libby 2 gas plant and strategic acquisitions further bolster their market position. However, there was a decline in Wholesale Marketing and Terminalling EBITDA. Overall, the highlights significantly outweigh the lowlights, indicating a positive outlook.Q3-2025 Updates
Positive Updates
Record-Setting Quarterly Adjusted EBITDA
Delek Logistics Partners reported $136 million in quarterly adjusted EBITDA, marking a significant increase from $107 million in the same period last year.
Increase in Full Year EBITDA Guidance
DKL has raised its full year EBITDA guidance to the upper end of the range, now expected between $500 million and $520 million, due to strong progress year-to-date.
Successful Commissioning of Libby 2 Gas Plant
The Libby 2 gas plant was successfully commissioned and is performing according to expectations, with plans for future expansion due to increased demand for sour gas handling capabilities.
51st Consecutive Increase in Quarterly Distribution
The Board of Directors approved the 51st consecutive increase in the quarterly distribution to $1.12 per unit, showcasing strong financial prudence and commitment to stakeholders.
Strong Financial Position and Acquisition Strategy
The company maintains a strong financial position with approximately $1 billion of availability on credit facilities and has successfully closed two timely acquisitions, H2O Midstream and Gravity Water Midstream.
Negative Updates
Decrease in Wholesale Marketing and Terminalling EBITDA
Wholesale Marketing and Terminalling adjusted EBITDA was $21 million, down from $25 million in the prior year, primarily due to last summer's amend and extend agreements.
Company Guidance
During the Delek Logistics Partners Third Quarter Earnings Conference Call, the company reported a record quarterly adjusted EBITDA of approximately $136 million, with a year-to-date increase in full-year EBITDA guidance to the upper end of $500 million to $520 million. The company completed the commissioning of the new Libby 2 gas plant and is advancing its efforts in acid gas injection and sour gas handling capabilities. The third quarter saw strong performance in crude gathering, with record volumes for DTG, and continued operations strength in the water gathering segments, supported by recent acquisitions of 3 Bear, H2O Midstream, and Gravity Water Midstream. The board approved a 51st consecutive increase in the quarterly distribution to $1.12 per unit. The adjusted EBITDA for the Gathering and Processing segment was $83 million, up from $55 million in the previous year, while the Wholesale Marketing and Terminalling segment saw a decrease. Capital expenditures for the quarter were approximately $50 million, with $44 million allocated to growth CapEx. The company maintains a strong financial position with approximately $1 billion of credit availability.Delek Logistics Financial Statement Overview
Summary
Delek Logistics shows potential through strong operational efficiency and cash flow generation. However, it faces challenges with revenue volatility and high leverage. The company must address its debt levels and stabilize revenue growth to improve its financial health.Income Statement
The income statement shows a mixed performance. The company has maintained a steady gross profit margin, but the net profit margin has seen fluctuations. Revenue growth has been inconsistent, with a notable decline in the latest period. Despite this, EBITDA margins suggest strong operational efficiency.65
Positive
Balance Sheet
The balance sheet reveals high leverage with a significant debt-to-equity ratio, indicating potential financial risk. However, the company has managed to maintain a positive equity ratio recently, which suggests some stabilization in its financial structure.40
Negative
Cash Flow
Cash flow analysis indicates robust operating cash flow relative to net income, highlighting good cash conversion. However, free cash flow growth has been inconsistent, and heavy capital expenditures could impact future liquidity.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 967.42M | 940.64M | 1.02B | 1.04B | 700.90M | 563.42M |
| Gross Profit | 216.81M | 243.75M | 279.72M | 246.62M | 214.24M | 206.74M |
| EBITDA | 448.45M | 394.70M | 370.28M | 311.94M | 265.18M | 245.29M |
| Net Income | 164.47M | 142.69M | 126.24M | 159.05M | 164.82M | 159.26M |
Balance Sheet | ||||||
| Total Assets | 2.75B | 2.04B | 1.64B | 1.68B | 935.07M | 956.42M |
| Cash, Cash Equivalents and Short-Term Investments | 6.91M | 5.38M | 3.75M | 7.97M | 4.29M | 4.24M |
| Total Debt | 7.62M | 1.89B | 1.72B | 1.68B | 919.85M | 1.02B |
| Total Liabilities | 2.73B | 2.01B | 1.80B | 1.79B | 1.04B | 1.06B |
| Stockholders Equity | 17.47M | 35.53M | -161.87M | -110.70M | -103.99M | -108.30M |
Cash Flow | ||||||
| Free Cash Flow | -40.85M | 74.55M | 124.97M | 45.47M | 251.15M | 179.73M |
| Operating Cash Flow | 250.41M | 206.34M | 225.32M | 192.17M | 275.16M | 193.02M |
| Investing Cash Flow | -488.31M | -384.58M | -89.63M | -770.44M | -16.36M | -123.14M |
| Financing Cash Flow | 237.50M | 179.87M | -139.91M | 581.95M | -258.75M | -71.18M |
Delek Logistics Technical Analysis
Positive
45.84
Price Trends
44.29
Positive
43.53
Positive
41.16
Positive
Market Momentum
0.52
Negative
55.05
Neutral
69.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DKL, the sentiment is Positive. The current price of 45.84 is above the 20-day moving average (MA) of 45.45, above the 50-day MA of 44.29, and above the 200-day MA of 41.16, indicating a bullish trend. The MACD of 0.52 indicates Negative momentum. The RSI at 55.05 is Neutral, neither overbought nor oversold. The STOCH value of 69.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $12.51B | 14.38 | 9.78% | 8.57% | -7.53% | 9.74% | |
72 Outperform | $7.11B | 12.16 | 59.81% | 8.48% | 10.78% | 19.10% | |
69 Neutral | $14.61B | 16.83 | 8.10% | 5.73% | 38.38% | 3.35% | |
66 Neutral | $2.42B | 14.67 | ― | 9.71% | -1.78% | 9.32% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
61 Neutral | $27.02B | 14.49 | 95.64% | 5.89% | 15.43% | 0.43% | |
51 Neutral | $495.02M | ― | -1.23% | ― | 17.09% | 72.64% |
* Energy Sector Average
DKL
Delek Logistics
45.82
10.75
30.65%
CQP
Cheniere Energy Partners
55.82
1.48
2.72%
PAA
Plains All American
17.73
1.27
7.72%
SMC
Summit Midstream
26.35
-11.04
-29.53%
VNOM
Viper Energy
40.65
-7.33
-15.28%
HESM
Hess Midstream Partners
34.22
0.86
2.58%
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.