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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on DKL

Delek Logistics Partners, LP's recent performance was driven by strong Q4 2024 earnings, which beat expectations, and a solid 2025 financial outlook. The company reported a record fourth quarter, driven by strong business fundamentals in the Permian Basin, and expects approximately 20% year-over-year growth in Adjusted EBITDA. Additionally, the company increased its quarterly cash distribution to $1.105 per common limited partner unit, and Wolfe Research upgraded Delek US to Peer Perform, citing the value of its 66.3% interest in Delek Logistics.

1.c. Company Highlights

2. Delek Logistics Partners' Q4 2025 Earnings: A Strong Year with Record EBITDA

Delek Logistics Partners reported a record adjusted EBITDA of $536 million for 2025, driven by strong execution across its businesses and the addition of high-quality businesses like H2O and Gravity. The company's fourth-quarter results included a record adjusted EBITDA of $142 million, and distributable cash flow as adjusted totaled $73 million. Earnings per share (EPS) came in at $0.88, below analyst estimates of $1.43. Revenue growth is expected to decline by 2.4% next year according to analyst estimates.

Publication Date: Mar -08

📋 Highlights
  • Record Adjusted EBITDA:: Achieved $536 million in 2025, driven by strategic acquisitions and operational growth.
  • Libby 2 Processing Expansion:: Commissioned to boost natural gas capacity to 160 million scf per day.
  • 2026 EBITDA Guidance:: $520–$560 million projected, with 80% of EBITDA from third-party businesses.
  • Consecutive Distribution Increase:: Raised quarterly distribution to $1.125 per unit for 52nd straight year.
  • Strong Liquidity Position:: Ended 2025 with $940 million in available liquidity and $73 million in Q4 distributable cash flow.

Operational Highlights

The company made significant progress in its key initiatives across natural gas, crude, and water businesses. In natural gas, Delek Logistics successfully commissioned the Libby 2 processing plant, increasing capacity to 160 million scf per day. The company's crude gathering operations delivered strong performance, and its water business is also doing well, with the integration of H2O and Gravity largely completed. As Avigal Soreq mentioned, "We're excited about providing comprehensive acid gas injection and sour gas handling capabilities to our customers."

Valuation and Dividend

Delek Logistics' current valuation metrics indicate a mixed picture. The stock trades at a P/E Ratio of 15.78, EV/EBITDA of 5.83, and a Dividend Yield of 8.59%. The high ROE of 461.3% is notable, but the Net Debt / EBITDA ratio is relatively low at 0.05. The company's ability to increase its distribution for the 52nd consecutive quarter is a positive sign, with the distribution raised to $1.125 per unit.

Growth Prospects

Delek Logistics is well-positioned for future growth, with approximately 80% of its run-rate EBITDA expected to come from third-party businesses in 2026. The company is excited about the growth opportunity that sour gas will provide, and expects to see increased utilization as its sour gas projects are completed throughout the year. Management is confident about the company's growth trajectory, with a guidance range of $520 million to $560 million for 2026 EBITDA.

3. NewsRoom

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Delek Logistics Partners, LP to Host First Quarter 2026 Conference Call on April 29th

Apr -10

Source: businesswire.com

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Delek Logistics Partners, L.P. (NYSE:DKL) Receives $52.25 Consensus Price Target from Brokerages

Apr -03

Source: defenseworld.net

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Delek Logistics Partners: Distribution Coverage And Leverage Are Red Flags

Mar -27

Source: seekingalpha.com

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Delek Logistics' 13-Year Distribution Streak Meets a Cash Flow Reality Check

Mar -24

Source: 247wallst.com

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Brokerages Set Delek Logistics Partners, L.P. (NYSE:DKL) PT at $50.67

Mar -09

Source: defenseworld.net

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Delek Logistics: Robust Fundamentals And Valuation May Be Pipelined To More Upside

Mar -07

Source: seekingalpha.com

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Delek Logistics Partners, LP 2025 K-1 Tax Packages Available on Website

Mar -06

Source: businesswire.com

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Here Are Friday’s Top Wall Street Analyst Research Calls: BorgWarner, CoreWeave, Intuit, Marvell Technology, Netflix, Okta, Regeneron Pharmaceuticals, Trade Desk, and More

Mar -06

Source: 247wallst.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.00%)

6. Segments

Wholesale Marketing and Terminalling

Expected Growth: 2.0%

Delek Logistics Partners, LP's Wholesale Marketing and Terminalling segment growth of 2.0% is driven by increasing demand for refined products, strategic acquisitions, and expansion of terminalling services. Additionally, optimization of logistics and transportation operations, and growth in throughput volumes at existing terminals contribute to the segment's growth.

Gathering and Processing

Expected Growth: 2.0%

Delek Logistics Partners, LP's 2.0% growth is driven by increasing demand for midstream services, strategic acquisitions, and expansion of existing assets. Additionally, the partnership's focus on fee-based revenue streams and cost savings initiatives contribute to its growth. Furthermore, the growth is supported by the increasing production of crude oil and natural gas in the Permian Basin, where Delek Logistics operates.

Storage and Transportation

Expected Growth: 2.0%

Delek Logistics Partners, LP's Storage and Transportation segment growth of 2.0% is driven by increased demand for crude oil transportation and storage, supported by growing US oil production and exports. Additionally, the partnership's strategic acquisitions and organic growth projects, such as the expansion of its Paline Pipeline, contribute to the segment's growth.

7. Detailed Products

Pipelines and Transportation Services

Delek Logistics Partners, LP provides pipeline transportation services for crude oil, refined products, and other hydrocarbons.

Wholesale Marketing and Terminalling Services

Delek Logistics Partners, LP offers wholesale marketing and terminalling services for refined products, including gasoline, diesel, and jet fuel.

Crude Oil Gathering and Storage Services

Delek Logistics Partners, LP provides crude oil gathering and storage services, including crude oil gathering pipelines and storage facilities.

Refined Products Storage and Distribution Services

Delek Logistics Partners, LP offers refined products storage and distribution services, including storage facilities and distribution pipelines.

8. Delek Logistics Partners, LP's Porter Forces

Forces Ranking

Threat Of Substitutes

Delek Logistics Partners, LP operates in the midstream energy sector, which has relatively few substitutes. However, the company's services can be substituted with other forms of energy transportation and storage, which poses a moderate threat.

Bargaining Power Of Customers

Delek Logistics Partners, LP has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's services are often critical to its customers' operations, making it difficult for them to negotiate prices or terms.

Bargaining Power Of Suppliers

Delek Logistics Partners, LP relies on a few key suppliers for its operations, which gives them some bargaining power. However, the company's scale and diversification of suppliers mitigate this risk to some extent.

Threat Of New Entrants

The midstream energy sector has high barriers to entry, including significant capital requirements and regulatory hurdles. This makes it difficult for new entrants to compete with Delek Logistics Partners, LP.

Intensity Of Rivalry

The midstream energy sector is highly competitive, with many established players competing for market share. Delek Logistics Partners, LP faces intense competition from other midstream companies, which can lead to pricing pressure and reduced margins.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 110.45%
Debt Cost 8.41%
Equity Weight -10.45%
Equity Cost 14.25%
WACC 7.80%
Leverage -1056.71%

11. Quality Control: Delek Logistics Partners, LP passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Delek Logistics Partners

A-Score: 6.7/10

Value: 4.0

Growth: 3.0

Quality: 6.0

Yield: 10.0

Momentum: 8.5

Volatility: 8.7

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Value: 7.5

Growth: 3.9

Quality: 3.1

Yield: 10.0

Momentum: 3.0

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Value: 4.9

Growth: 3.4

Quality: 1.5

Yield: 9.0

Momentum: 9.0

Volatility: 6.3

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A-Score: 4.9/10

Value: 7.2

Growth: 3.6

Quality: 5.8

Yield: 0.0

Momentum: 10.0

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A-Score: 4.5/10

Value: 7.2

Growth: 5.9

Quality: 5.4

Yield: 0.0

Momentum: 6.0

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Martin Midstream Partners

A-Score: 3.7/10

Value: 9.8

Growth: 2.7

Quality: 3.6

Yield: 1.0

Momentum: 1.0

Volatility: 4.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

49.58$

Current Price

49.58$

Potential

-0.00%

Expected Cash-Flows