Delek Logistics Partners (DKL)
NYSE:DKL
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Delek Logistics
(NYSE:DKL)
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Rating:63Neutral
Price Target:
$54.00
▲(0.90% Upside)
Action:Reiterated
Date:05/15/26
DKL scores as a moderately attractive income/midstream name, led by strong operating profitability and a positive earnings update with reaffirmed guidance and improved liquidity. The main limiter is financial risk from thin/negative equity and uneven free-cash-flow conversion. Technicals are mildly supportive and the high dividend yield helps, but the P/E is not particularly cheap.
Positive Factors
Strong operating margins
DKL's consistently high operating and EBITDA margins reflect durable midstream fee-based economics and operational efficiency. Strong margins provide long-term cushion against commodity swings, support distribution funding and permit reinvestment for growth projects without relying solely on external capital.
Negative Factors
Thin or negative equity
Persistent thin or negative equity makes leverage metrics unstable and limits financial flexibility. An aggressive capital structure raises refinancing and covenant risk in down cycles, potentially forcing higher-cost financing or constrained strategic options if earnings or cash flow weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong operating margins
DKL's consistently high operating and EBITDA margins reflect durable midstream fee-based economics and operational efficiency. Strong margins provide long-term cushion against commodity swings, support distribution funding and permit reinvestment for growth projects without relying solely on external capital.
Read all positive factors
Delek Logistics (DKL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.73B
Dividend Yield9.78%
Average Volume (3M)57.41K
Price to Earnings (P/E)20.6
Beta (1Y)0.20
Revenue Growth13.04%
EPS Growth6.21%
CountryUS
EmployeesN/A
SectorEnergy
Sector Strength52
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)3.16
Shares Outstanding53,168,205
10 Day Avg. Volume54,772
30 Day Avg. Volume57,413
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 Cap1.01
Enterprise Value/Revenue2.59
Enterprise Value/Gross Profit13.47
Enterprise Value/Ebitda6.11
Forecast
1Y Price Target
$55.25Price Target Upside3.23% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)3.55
Revenue Forecast (FY)$1.08B
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:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive tone: the partnership delivered its best first-quarter results to date with year-over-year adjusted EBITDA growth, meaningful liquidity enhancements, a continued quarterly distribution increase, progress on strategic initiatives (sour gas and produced water), and reaffirmed full-year guidance. Offsetting items include a ~$10 million weather-related headwind, a notable decline in Wholesale Marketing & Terminalling EBITDA, a slower-than-expected gas ramp, elevated leverage (4.05x), and permitting constraints for water disposal. On balance, the operational milestones, segment gains (especially Storage & Transportation and third-party mix expansion), and balance sheet actions outweigh the near-term challenges described.Positive Updates
Quarterly Adjusted EBITDA Growth
Adjusted EBITDA of $132 million in Q1 2026, up from $123 million in Q1 2025, an increase of approximately 7.3%, the best first-quarter results to date.
Negative Updates
Winter Storm Fern Headwind
Winter Storm Fern caused an approximate $10 million headwind to Q1 results, driving well shut-ins and suppressing Delaware crude gathering volumes (though management reports recovery into Q2).
Read all updates
Q1-2026 Updates
Positive
Negative
Quarterly Adjusted EBITDA Growth
Adjusted EBITDA of $132 million in Q1 2026, up from $123 million in Q1 2025, an increase of approximately 7.3%, the best first-quarter results to date.
Read all positive updates
Company Guidance
Management reaffirmed full‑year 2026 adjusted EBITDA guidance of $520–$560 million after a strong start with Q1 adjusted EBITDA of about $132 million (vs. $123M a year ago) and distributable cash flow as adjusted of $72 million with a DCF coverage ratio of ~1.2x; Q1 capital spending was ≈$50 million (≈$42M gross) while planned growth capital of $180–$190 million is expected to yield roughly $75 million of incremental run‑rate EBITDA; they exited the quarter with adjusted leverage of 4.05x, a revolver upsized to $1.3 billion (maturing 2031) and available liquidity of ≈$1.1 billion, noted an approximate $10 million Q1 headwind from Winter Storm Fern, reported segment EBITDA of Gathering & Processing $83M, Wholesale Marketing & Terminalling $14M, Storage & Transportation $25M and pipeline JV $18M, said pro‑forma ~80% of 2026 run‑rate EBITDA will be third‑party, expect gas utilization to reach capacity in 3–6 months, and approved a 53rd consecutive distribution increase to $1.13 per unit.Delek Logistics Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
38
Negative
Cash Flow
56
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.06B | 1.01B | 940.64M | 1.02B | 1.04B | 700.90M |
| Gross Profit | 204.18M | 211.67M | 243.75M | 279.72M | 246.62M | 214.24M |
| EBITDA | 450.26M | 484.43M | 394.70M | 370.28M | 311.94M | 265.18M |
| Net Income | 169.78M | 176.46M | 142.69M | 126.24M | 159.05M | 164.82M |
Balance Sheet | ||||||
| Total Assets | 2.91B | 2.78B | 2.04B | 1.64B | 1.68B | 935.07M |
| Cash, Cash Equivalents and Short-Term Investments | 9.91M | 10.89M | 5.38M | 3.75M | 7.97M | 4.29M |
| Total Debt | 34.57M | 35.18M | 1.89B | 1.72B | 1.68B | 919.85M |
| Total Liabilities | 2.93B | 2.77B | 2.01B | 1.80B | 1.79B | 1.04B |
| Stockholders Equity | -20.15M | 6.11M | 35.53M | -161.87M | -110.70M | -103.99M |
Cash Flow | ||||||
| Free Cash Flow | 107.11M | -30.64M | 74.55M | 124.97M | 45.47M | 251.15M |
| Operating Cash Flow | 370.37M | 237.12M | 206.34M | 225.32M | 192.17M | 275.16M |
| Investing Cash Flow | -253.16M | -444.20M | -384.58M | -89.63M | -770.44M | -16.36M |
| Financing Cash Flow | -109.41M | 212.59M | 179.87M | -139.91M | 581.95M | -258.75M |
Delek Logistics Technical Analysis
Positive
53.52
Price Trends
50.63
Positive
49.75
Positive
45.88
Positive
Market Momentum
0.47
Negative
51.56
Neutral
69.16
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 53.52 is above the 20-day moving average (MA) of 51.30, above the 50-day MA of 50.63, and above the 200-day MA of 45.88, indicating a neutral trend. The MACD of 0.47 indicates Negative momentum. The RSI at 51.56 is Neutral, neither overbought nor oversold. The STOCH value of 69.16 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 | $8.26B | 14.33 | 64.33% | 8.45% | 7.06% | 13.61% | |
70 Outperform | $16.46B | 25.93 | 11.77% | 8.54% | -9.94% | 43.70% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
64 Neutral | $17.13B | 21.96 | -1.05% | 6.08% | 78.85% | -108.36% | |
63 Neutral | $2.73B | 20.58 | 1917.10% | 9.78% | 13.04% | 6.21% | |
59 Neutral | $31.30B | 42.04 | 95.30% | 6.07% | 20.96% | 2.82% | |
57 Neutral | $659.95M | -369.87 | -1.23% | ― | 28.21% | 92.42% |
* Energy Sector Average
DKL
Delek Logistics
51.26
14.24
38.46%
CQP
Cheniere Energy Partners
64.67
10.80
20.05%
PAA
Plains All American
23.33
8.00
52.23%
SMC
Summit Midstream
32.44
5.75
21.54%
VNOM
Viper Energy
47.70
9.41
24.58%
HESM
Hess Midstream Partners
40.05
4.97
14.18%
Delek Logistics Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Delek Logistics Issues New Notes and Manages Outstanding Debt
Positive
May 14, 2026
On May 14, 2026, Delek Logistics Partners and its financing subsidiary issued $800 million of 6.875% senior unsecured notes due June 1, 2034, under a new indenture with Regions Bank as trustee, with the notes guaranteed on a senior unsecured basis...
Business Operations and StrategyPrivate Placements and Financing
Delek Logistics Prices $800 Million Senior Notes Offering
Positive
May 5, 2026
On May 4, 2026, Delek Logistics Partners, LP announced it had priced an $800 million offering of 6.875% senior notes due 2034 at par, with closing expected on May 14, 2026 subject to customary conditions. The notes are being sold to qualified inst...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Delek Logistics Launches Debt Tender and Refinancing Plan
Positive
May 4, 2026
On May 4, 2026, Delek Logistics Partners, LP and its financing subsidiary launched a cash tender offer for any and all of their outstanding 7.125% senior notes due 2028, offering $1,001.35 per $1,000 in principal plus accrued interest to noteholde...
Business Operations and StrategyExecutive/Board Changes
Delek Logistics Announces Executive Leadership Transition in Refining
Positive
Apr 21, 2026
On April 16, 2026, Delek US Holdings’ board approved a leadership transition for its refining operations, effective April 20, 2026, appointing industry veteran Amber Russell as Executive Vice President, Refining. On the same effective date, ...
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.