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Delek Logistics
(NYSE:DKL)
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Rating:67Neutral
Price Target:
$59.00
▲(3.16% Upside)
Action:Reiterated
Date:08/17/26
DKL scores as above-average primarily due to strong operating profitability, improving revenue momentum, and a return to solid positive free cash flow, reinforced by reaffirmed EBITDA guidance and healthy distribution coverage. The score is held back by balance-sheet fragility (thin/negative equity and elevated leverage) and only mixed near-term technicals (below the 20-day average with neutral momentum), while the high dividend yield provides valuation support.
Positive Factors
Strong profitability and improving revenue momentum
High margins and accelerating revenue indicate strong earnings power for a midstream operator. Growth improved from roughly 0.1% in 2025 to about 13% TTM, supporting operating momentum despite ongoing mix and cost considerations.
Negative Factors
Elevated leverage and structurally weak equity
High leverage and a negative equity base constrain financial flexibility and increase refinancing sensitivity. Although recent capital actions help, the structure remains riskier than typical midstream peers and may limit future investment capacity.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability and improving revenue momentum
High margins and accelerating revenue indicate strong earnings power for a midstream operator. Growth improved from roughly 0.1% in 2025 to about 13% TTM, supporting operating momentum despite ongoing mix and cost considerations.
Read all positive factors
Delek Logistics (DKL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.13B
Dividend Yield8.33%
Average Volume (3M)101.28K
Price to Earnings (P/E)18.9
Beta (1Y)0.11
Revenue Growth30.33%
EPS Growth-2.37%
CountryUS
EmployeesN/A
SectorEnergy
Sector Strength52
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)2.87
Shares Outstanding57,797,302
10 Day Avg. Volume63,054
30 Day Avg. Volume101,283
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$55.50Price Target Upside-2.96% Downside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)3.17
Revenue Forecast (FY)$1.37B
Delek Logistics Business Overview & Revenue Model
Company Description
Delek Logistics Partners, LP (DKL) manages and operates a diverse portfolio of logistics and marketing assets for crude oil, intermediate, and refined petroleum products throughout the United States. The company's operations are structured into th...
How the Company Makes Money
DKL generates revenue by charging fees for midstream logistics services provided through its owned infrastructure. Its key revenue streams generally include: (1) Pipeline transportation fees: DKL earns tariff-based or contract-based fees for movin...
Delek Logistics Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call was broadly positive: management reported a record quarter (adjusted EBITDA $144M), strong segment and volume growth (notably Gathering & Processing and crude/water/gas QoQ ramps), progressive sour gas infrastructure execution at Libby, proactive refinancing and healthy liquidity, and a 54th consecutive distribution increase. The primary negatives were a sizable YoY decline in Wholesale Marketing & Terminalling, a modest dip in Storage & Transportation, and a temporarily elevated leverage ratio (4.23x) tied to near-term growth spending. Management reaffirmed full-year guidance and highlighted potential upside as Libby sour capabilities come online, indicating confidence that the strong operational momentum will offset near-term headwinds.Positive Updates
Record Quarterly Adjusted EBITDA
Adjusted EBITDA of approximately $144 million in Q2 2026 (quarterly record), up from $127 million in Q2 2025 (+13.4% YoY). Management reaffirmed full-year adjusted EBITDA guidance of $520 million to $560 million. Distributable cash flow (as adjusted) was ~ $81 million with DCF coverage ~1.33x.
Negative Updates
Wholesale Marketing & Terminalling Earnings Decline
Wholesale Marketing & Terminalling adjusted EBITDA was approximately $13 million in Q2 2026 vs $23 million in Q2 2025, a decline of ~$10 million (-43.5% YoY), largely attributable to the effects of the 2024 amend-and-extend agreement with Delek.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Adjusted EBITDA
Adjusted EBITDA of approximately $144 million in Q2 2026 (quarterly record), up from $127 million in Q2 2025 (+13.4% YoY). Management reaffirmed full-year adjusted EBITDA guidance of $520 million to $560 million. Distributable cash flow (as adjusted) was ~ $81 million with DCF coverage ~1.33x.
Read all positive updates
Company Guidance
Management reaffirmed full‑year 2026 adjusted EBITDA guidance of $520–$560 million after reporting a Q2 record adjusted EBITDA of ~$144 million and distributable cash flow (as adjusted) of ~$81 million with a DCF coverage ratio of ~1.33x. They expect a step‑change in gas utilization as the Libby sour‑gas solution comes online later this year, and said ~80% of pro forma run‑rate EBITDA in 2026 will be third‑party; growth capital of ~$180–$190 million (part of a ~$185 million program) is expected to generate up to $75 million of run‑rate EBITDA (about $15 million in 2026 and $60 million in 2027), Q2 capex was ~$61 million ( ~$51 million growth), leverage ended the quarter at 4.23x (long‑term target 3.5x; managing around ~4x), liquidity is ~ $1.1 billion, they issued an $800 million senior note due 2034 to lower interest costs, and the quarterly distribution was increased to $1.135 per unit (54th consecutive increase).Delek Logistics Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
28
Negative
Cash Flow
64
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.20B | 1.01B | 940.64M | 1.02B | 1.04B | 700.90M |
| Gross Profit | 207.90M | 211.67M | 243.75M | 279.72M | 246.62M | 214.24M |
| EBITDA | 461.17M | 484.43M | 394.70M | 370.28M | 311.94M | 265.18M |
| Net Income | 154.07M | 176.46M | 142.69M | 126.24M | 159.05M | 164.82M |
Balance Sheet | ||||||
| Total Assets | 2.87B | 2.78B | 2.04B | 1.64B | 1.68B | 935.07M |
| Cash, Cash Equivalents and Short-Term Investments | 13.71M | 10.89M | 5.38M | 3.75M | 7.97M | 4.29M |
| Total Debt | 2.41B | 2.38B | 1.89B | 1.72B | 1.68B | 919.85M |
| Total Liabilities | 2.94B | 2.77B | 2.01B | 1.80B | 1.79B | 1.04B |
| Stockholders Equity | -69.29M | 6.11M | 35.53M | -161.87M | -110.70M | -103.99M |
Cash Flow | ||||||
| Free Cash Flow | 128.27M | -30.64M | 74.55M | 124.97M | 45.47M | 251.15M |
| Operating Cash Flow | 334.15M | 237.12M | 206.34M | 225.32M | 192.17M | 275.16M |
| Investing Cash Flow | -200.04M | -444.20M | -384.58M | -89.63M | -770.44M | -16.36M |
| Financing Cash Flow | -121.84M | 212.59M | 179.87M | -139.91M | 581.95M | -258.75M |
Delek Logistics Technical Analysis
Neutral
57.19
Price Trends
53.84
Positive
51.65
Positive
49.03
Positive
Market Momentum
-0.14
Positive
46.38
Neutral
38.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DKL, the sentiment is Neutral. The current price of 57.19 is above the 20-day moving average (MA) of 56.52, above the 50-day MA of 53.84, and above the 200-day MA of 49.03, indicating a neutral trend. The MACD of -0.14 indicates Positive momentum. The RSI at 46.38 is Neutral, neither overbought nor oversold. The STOCH value of 38.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $8.07B | 13.50 | 69.02% | 7.47% | 2.78% | 7.61% | |
74 Outperform | $33.10B | 11.43 | 103.64% | 4.98% | 15.43% | 34.31% | |
74 Outperform | $17.36B | 6.82 | 27.46% | 6.48% | 9.00% | 299.23% | |
67 Neutral | $3.13B | 18.86 | -935.80% | 7.85% | 30.33% | -2.37% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
65 Neutral | $692.71M | -31.01 | -0.48% | ― | 20.94% | 95.10% | |
59 Neutral | $16.26B | 323.36 | 1.23% | 5.12% | 104.04% | -96.30% |
* Energy Sector Average
DKL
Delek Logistics
54.13
14.57
36.83%
CQP
Cheniere Energy Partners
68.38
17.34
33.97%
PAA
Plains All American
24.61
8.46
52.41%
SMC
Summit Midstream
34.11
14.15
70.89%
VNOM
Viper Energy
45.27
8.02
21.53%
HESM
Hess Midstream Partners
39.14
1.36
3.60%
Delek Logistics Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Delek Logistics Completes Equity Offering and Lowers Ownership
Positive
Aug 14, 2026
On August 14, 2026, Delek Logistics Partners, LP closed an underwritten public offering of 4,600,000 common units at $50.00 per unit, including 600,000 units from the full exercise of underwriters’ over-allotment option. The gross proceeds o...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Delek Logistics Announces Public Offering of Common Units
Positive
Aug 14, 2026
On August 12, 2026, Delek Logistics Partners, LP entered into an underwriting agreement to issue 4,000,000 common units representing limited partner interests at $50.00 per unit, with Truist Securities, Mizuho Securities USA, and Raymond James As...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Delek Logistics Prices Public Offering of Common Units
Positive
Aug 13, 2026
On August 12, 2026, Delek Logistics Partners, LP priced an underwritten public offering of 4,000,000 common units at $50.00 per unit, with a 30-day option for underwriters to buy up to 600,000 additional units, under an effective SEC shelf registr...
Business Operations and StrategyPrivate Placements and Financing
Delek Logistics Announces $175 Million Equity Offering
Positive
Aug 12, 2026
On August 12, 2026, Delek Logistics Partners, LP announced it had begun an underwritten public offering of $175 million of common units representing limited partner interests, using an already effective shelf registration statement. The partnershi...
Business Operations and StrategyExecutive/Board Changes
Delek Logistics Announces Broad Executive Leadership Realignment
Neutral
Jul 2, 2026
On June 26, 2026, Delek US Holdings and the general partner of Delek Logistics Partners approved a series of executive leadership changes effective July 1, 2026, reshaping responsibilities across logistics, finance, legal and new energy operations...
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.