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Delek Logistics (DKL)
NYSE:DKL
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Delek Logistics
(NYSE:DKL)
Rating:72Outperform
Price Target:
$48.00
▲(8.08%Upside)
Positive Factors
Strategic Updates
Strategic updates have been announced, enhancing the company's future prospects and providing a potential upside.
Yield and Growth
The company offers a top-quartile yield and growth outlook, making it an attractive investment proposition.
Negative Factors
Market Reaction
The market has not fully digested the impact of recent strategic transactions, which may lead to short-term volatility.
Delek Logistics (DKL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.37B
Dividend Yield10%
Average Volume (3M)105.67K
Price to Earnings (P/E)14.8
Beta (1Y)0.39
Revenue Growth-8.79%
EPS Growth7.75%
CountryUS
EmployeesN/A
SectorEnergy
Sector Strength55
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)0.73
Shares Outstanding53,440,790
10 Day Avg. Volume54,111
30 Day Avg. Volume105,668
Financial Highlights & Ratios
PEG Ratio-3.61
Price to Book (P/B)-17.78
Price to Sales (P/S)0.00
P/FCF Ratio43.27
Enterprise Value/Market Cap1.54
Enterprise Value/Revenue0.93
Enterprise Value/Gross Profit16.32
Enterprise Value/Ebitda2.27
Forecast
1Y Price Target
$44.00Price Target Upside-0.92% Downside
Rating ConsensusHold
Number of Analyst Covering1
Delek Logistics Business Overview & Revenue Model
Company DescriptionDelek Logistics Partners, LP (DKL) is a prominent player in the midstream energy sector, primarily engaged in the gathering, transportation, storage, and wholesale distribution of crude oil, refined products, and natural gas. The company operates a network of pipelines, terminals, and storage facilities, providing essential services to facilitate the efficient movement of energy products across various regions. Delek Logistics serves a diverse clientele, including large-scale refiners, marketers, and other energy companies, leveraging its strategic assets and operational expertise to deliver reliable and cost-effective logistics solutions.
How the Company Makes MoneyDelek Logistics generates revenue primarily through fee-based contracts for the transportation and storage of crude oil, refined products, and natural gas. The company's key revenue streams include pipeline transportation fees, terminal throughput fees, and storage fees, which are often structured as long-term agreements with minimum volume commitments. Additionally, Delek Logistics benefits from strategic partnerships with its parent company, Delek US Holdings, Inc., and other industry players, which help secure a stable demand for its services. The company's earnings are further supported by its ability to optimize asset utilization and expand its infrastructure to capture new market opportunities.
Delek Logistics Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 17.58%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
The earnings call highlighted Delek Logistics Partners' strong financial performance, strategic progress in increasing economic separation, and successful expansion efforts, particularly in the Delaware Basin. However, there were some challenges in specific segments such as wholesale marketing and terminalling, as well as storage and transportation, which experienced declines in EBITDA. Overall, the positive developments and growth opportunities presented outweighed the negative aspects.Q1-2025 Updates
Positive Updates
Record Quarterly Adjusted EBITDA
Delek Logistics Partners reported approximately $117 million in quarterly adjusted EBITDA, putting the company on track to deliver on its full year EBITDA guidance of $480 million to $520 million.
Increased Economic Separation
Intercompany transactions increased Delek Logistics' economic separation, bringing third-party contribution to cash flow from 70% to around 80% on a pro forma basis.
Libby Plant Expansion Progress
The commissioning phase of the new Libby plant expansion is underway, with expected capacity fulfillment in the second half of 2025.
49th Consecutive Quarterly Distribution Increase
The Board of Directors approved a 49th consecutive increase in the quarterly distribution to $1.11 per unit.
Strong Performance in Gathering and Processing Segment
The segment's adjusted EBITDA for the quarter was $81 million, up from $50 million in the first quarter of 2024, primarily due to acquisitions of H2O and Gravity Midstream.
Significant Available Liquidity
Post-acquisition of Gravity and progress on the Libby 2 construction, Delek Logistics currently has approximately $450 million of available liquidity.
Negative Updates
Decrease in Wholesale Marketing and Terminalling EBITDA
Adjusted EBITDA for this segment was $18 million, down from $25 million in the prior year, primarily due to seasonal weather impacts driving lower wholesale margins.
Storage and Transportation Segment Decline
The segment's adjusted EBITDA was $14 million compared with $18 million in the first quarter of 2024, mainly due to the amend and extend renegotiation completed last summer.
Company Guidance
During the Delek Logistics Partners first quarter 2025 earnings call, the company provided guidance indicating strong financial and operational performance. They reported a quarterly adjusted EBITDA of approximately $117 million and reaffirmed their full-year EBITDA guidance of $480 million to $520 million. The company highlighted significant progress in the Permian Basin, particularly with the commissioning of the Libby II gas plant, expected to add 100 to 120 million cubic feet per day of incremental capacity. The first quarter saw a distributable cash flow of $75 million with a DCF coverage ratio of 1.27x, projected to increase. Additionally, the company emphasized their strategic moves to enhance their competitive position through intercompany transactions, increasing third-party contributions to cash flow from 70% to 80% on a pro forma basis. They also announced a 49th consecutive quarterly distribution increase to $1.11 per unit, underscoring their commitment to growth and value creation.Delek Logistics Financial Statement Overview
Summary
Delek Logistics shows potential through strong operational efficiency and cash flow generation, yet 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.70
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.50
Neutral
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.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 938.49M | 940.64M | 1.02B | 1.04B | 700.90M | 563.42M |
| Gross Profit | 223.15M | 243.75M | 284.96M | 249.40M | 217.15M | 206.74M |
| EBITDA | 397.95M | 394.70M | 370.99M | 301.95M | 256.14M | 236.09M |
| Net Income | 149.07M | 142.69M | 126.24M | 159.05M | 164.82M | 159.26M |
Balance Sheet | ||||||
| Total Assets | 2.40B | 2.04B | 1.64B | 1.68B | 935.07M | 956.42M |
| Cash, Cash Equivalents and Short-Term Investments | 2.11M | 5.38M | 3.75M | 7.97M | 4.29M | 4.24M |
| Total Debt | 11.73M | 1.89B | 1.72B | 1.68B | 919.85M | 1.02B |
| Total Liabilities | 2.30B | 2.01B | 1.80B | 1.79B | 1.04B | 1.06B |
| Stockholders Equity | 97.44M | 35.53M | -161.87M | -110.70M | -103.99M | -108.30M |
Cash Flow | ||||||
| Free Cash Flow | 19.34M | 77.30M | 124.97M | 45.47M | 251.15M | 179.73M |
| Operating Cash Flow | 194.57M | 206.34M | 225.32M | 192.17M | 275.16M | 193.02M |
| Investing Cash Flow | -610.02M | -384.58M | -89.63M | -770.44M | -16.36M | -123.14M |
| Financing Cash Flow | 407.89M | 179.87M | -139.91M | 581.95M | -258.75M | -71.18M |
Delek Logistics Technical Analysis
Positive
44.41
Price Trends
41.77
Positive
40.63
Positive
39.62
Positive
Market Momentum
0.66
Negative
64.71
Neutral
86.09
Negative
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 44.41 is above the 20-day moving average (MA) of 43.45, above the 50-day MA of 41.77, and above the 200-day MA of 39.62, indicating a bullish trend. The MACD of 0.66 indicates Negative momentum. The RSI at 64.71 is Neutral, neither overbought nor oversold. The STOCH value of 86.09 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DKL.
Delek Logistics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $8.36B | 20.29 | 19.71% | 5.16% | 5.03% | 7.15% | |
72 Outperform | $2.37B | 14.82 | 542.39% | 10.00% | -8.79% | 7.75% | |
67 Neutral | $1.79B | 16.67 | 16.23% | 5.76% | 6.04% | 18.28% | |
55 Neutral | $2.13B | ― | -14.83% | 3.79% | -17.81% | -590.48% | |
52 Neutral | C$2.94B | -1.04 | -3.46% | 5.85% | 3.01% | -47.13% | |
44 Neutral | $565.01M | ― | 4.63% | ― | -19.76% | -323.41% | |
41 Neutral | $458.63M | 5.86 | -28.13% | ― | -4.69% | -418.50% |
* Energy Sector Average
Performance Comparison
DKL
Delek Logistics
44.41
7.63
20.74%
GEL
Genesis Energy
17.08
3.51
25.87%
GLP
Global Partners
51.76
13.49
35.25%
NGL
NGL Energy Partners
4.28
-0.42
-8.94%
SMC
Summit Midstream
24.44
-11.54
-32.07%
AM
Antero Midstream
17.45
3.67
26.63%
Delek Logistics Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Delek Logistics Closes $700 Million Senior Notes Offering
Positive
Jun 30, 2025
On June 30, 2025, Delek Logistics Partners, LP announced the closing of its upsized offering of $700 million in senior notes due 2033, enhancing its financial liquidity to over one billion dollars. This increased liquidity will enable the company to invest in growth opportunities, particularly in the Permian Basin, supporting its strategic goals and creating value for stakeholders.
The most recent analyst rating on (DKL) stock is a Hold with a $44.00 price target. To see the full list of analyst forecasts on Delek Logistics stock, see the DKL Stock Forecast page.
Private Placements and Financing
Delek Logistics Upsizes $700M Senior Notes Offering
Neutral
Jun 26, 2025
On June 25, 2025, Delek Logistics Partners, LP announced the pricing of an upsized offering of $700 million in senior notes due 2033, with a 7.375% interest rate. The offering, expected to close on June 30, 2025, aims to repay a portion of the outstanding borrowings under its revolving credit facility, potentially impacting the company’s financial structure and market positioning.
The most recent analyst rating on (DKL) stock is a Buy with a $45.00 price target. To see the full list of analyst forecasts on Delek Logistics stock, see the DKL Stock Forecast page.
Private Placements and Financing
Delek Logistics Announces $500M Senior Notes Offering
Neutral
Jun 25, 2025
On June 25, 2025, Delek Logistics Partners, LP announced its intention to offer $500 million in senior notes due 2033 in a private placement, subject to market conditions. The proceeds from this offering are intended to repay a portion of the outstanding borrowings under its revolving credit facility, potentially impacting the company’s financial structure and market positioning.
The most recent analyst rating on (DKL) stock is a Buy with a $45.00 price target. To see the full list of analyst forecasts on Delek Logistics stock, see the DKL Stock Forecast page.
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.