Delek Logistics (DKL) AI Stock Analysis

• Market Cap: $2.41B
• Dividend Yield: 9.84%
• Average Volume (3M): 83.68K
• Price to Earnings (P/E): 15.3
• Beta (1Y): 0.24
• Revenue Growth: -12.08%
• EPS Growth: 1.44%
• Country: US
• Employees: N/A
• Sector: Energy
• Sector Strength: 54
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.83
• Shares Outstanding: 53,463,830
• 10 Day Avg. Volume: 77,486
• 30 Day Avg. Volume: 83,683
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.88
• Enterprise Value/Revenue: 4.91
• Enterprise Value/Gross Profit: 21.24
• Enterprise Value/Ebitda: 10.93
• 1Y Price Target: $47.50
• Price Target Upside: 5.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 73 Outperform
• Price Target: $50.00 ▲(11.04% Upside)

Delek Logistics benefits from strong earnings call results and favorable valuation metrics, with a high dividend yield and reasonable P/E ratio. Technical indicators show positive momentum. However, financial performance is hindered by revenue volatility and high leverage, which slightly dampens the overall score.

Positive Factors

Strategic Growth Initiatives

The successful commissioning of the Libby 2 gas plant enhances Delek Logistics' processing capabilities, supporting long-term growth and competitive positioning in the energy sector.

Financial Liquidity

Increased financial liquidity from the senior notes offering enhances Delek Logistics' ability to invest in growth opportunities, ensuring long-term financial stability and strategic flexibility.

Consistent Distribution Increases

Consistent increases in quarterly distributions demonstrate Delek Logistics' commitment to shareholder returns, reflecting strong cash flow generation and financial health over time.

Negative Factors

Revenue Volatility

Inconsistent revenue growth poses a challenge to Delek Logistics' financial performance, potentially impacting its ability to maintain stable cash flows and invest in future growth.

High Leverage

High leverage can strain Delek Logistics' financial flexibility, increasing risk and potentially limiting its ability to respond to market changes or invest in new opportunities.

Wholesale Marketing and Terminalling Performance

Declining performance in the Wholesale Marketing and Terminalling segment indicates potential challenges in maintaining profitability and competitiveness in this area, affecting overall financial health.

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 Terminalling, and Investment in Pipeline Joint Ventures. The Pipelines and Transportation segment includes pipelines, trucks, and ancillary assets that provide crude oil gathering, crude oil intermediate and refined products transportation, and storage services primarily in support of the Tyler, El Dorado, and Big Spring refineries, as well as offers crude oil and other products transportation services to third parties. This segment operates approximately 400 miles of crude oil transportation pipelines; 450 miles of refined product pipelines; and approximately 900 miles of crude oil gathering, and intermediate and refined products storage tanks with an aggregate of approximately 10.2 million barrels of active shell capacity. The Wholesale Marketing and Terminalling segment provides wholesale marketing, transporting, storage, and terminalling services related to refined products to independent third parties. The Investments in Pipeline Joint Ventures Segment owns a portion of three joint ventures that have constructed separate crude oil pipeline systems and related ancillary assets, which serves third parties and subsidiaries. Delek Logistics GP, LLC serves as the general partner of the company. Delek Logistics Partners, LP was incorporated in 2012 and is headquartered in Brentwood, Tennessee. Delek Logistics Partners, LP operates as a subsidiary of Delek US Holdings, Inc.

How the Company Makes Money

Delek Logistics generates revenue through multiple key streams, primarily by charging fees for the transportation and storage of crude oil and refined products. This includes revenue from the operation of its extensive pipeline network, where it earns tolls based on the volume of product transported. Additionally, DKL benefits from long-term contracts with customers, providing a stable and predictable revenue base. The company also engages in terminal operations, where it earns fees for the storage and handling of petroleum products. Strategic partnerships, particularly with Delek US Holdings, enhance its earnings potential by ensuring a steady flow of product and access to a wider market. Factors contributing to its earnings include demand for energy infrastructure services, fluctuations in oil prices, and regulatory dynamics affecting the energy sector.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	920.21M	940.64M	1.02B	1.04B	700.90M	563.42M
Gross Profit	212.61M	243.75M	284.96M	249.40M	217.15M	206.74M
EBITDA	413.08M	394.70M	370.99M	301.95M	256.14M	236.09M
Net Income	152.59M	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	1.44M	5.38M	3.75M	7.97M	4.29M	4.24M
Total Debt	2.22B	1.89B	1.72B	1.68B	919.85M	1.02B
Total Liabilities	2.72B	2.01B	1.80B	1.79B	1.04B	1.06B
Stockholders Equity	31.99M	35.53M	-161.87M	-110.70M	-103.99M	-108.30M
Cash Flow
Free Cash Flow	-56.84M	77.30M	124.97M	45.47M	251.15M	179.73M
Operating Cash Flow	217.26M	206.34M	225.32M	192.17M	275.16M	193.02M
Investing Cash Flow	-720.28M	-384.58M	-89.63M	-770.44M	-16.36M	-123.14M
Financing Cash Flow	499.35M	179.87M	-139.91M	581.95M	-258.75M	-71.18M

Delek Logistics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 45.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 45.03 is above the 20-day moving average (MA) of 43.53, above the 50-day MA of 43.39, and above the 200-day MA of 40.19, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 63.76 is Neutral, neither overbought nor oversold. The STOCH value of 92.28 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VNOM	77 Outperform	$12.60B	11.15	16.43%	6.12%	17.92%	18.39%
DKL	73 Outperform	$2.41B	15.25	542.39%	9.84%	-12.08%	1.44%
HESM	73 Outperform	$8.25B	14.58	52.91%	7.21%	9.02%	17.28%
PAA	68 Neutral	$12.28B	19.31	8.34%	8.35%	-4.31%	-17.80%
Sector *	65 Neutral	$15.18B	7.59	4.09%	5.21%	3.87%	-62.32%
CQP	62 Neutral	$25.19B	12.58	112.19%	6.28%	10.62%	5.04%
SMC	44 Neutral	$438.19M	5.86	-25.85%	―	2.91%	-432.03%

Delek Logistics Corporate Events

Delek Logistics Closes $700 Million Senior Notes Offering

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.

Delek Logistics Upsizes $700M Senior Notes Offering

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.

Delek Logistics Announces $500M Senior Notes Offering

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.