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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' Strong Q3 Earnings Driven by Record Crude Gathering Volumes

Delek Logistics Partners reported a robust quarterly adjusted EBITDA of $136 million, significantly higher than $107 million in the same period last year. The company's EPS came in at $0.85, below analyst estimates of $1.11. The strong performance was driven by the Gathering and Processing segment, which reported $83 million in adjusted EBITDA, up from $55 million in the third quarter of 2024, primarily due to the acquisition of H2O and Gravity. The company's adjusted EBITDA for the quarter was driven by record crude gathering volumes and solid operations in the water gathering segment.

Publication Date: Nov -24

📋 Highlights
  • Record Adjusted EBITDA: Achieved $136M quarterly adjusted EBITDA, up from $107M year-over-year.
  • Full-Year Guidance Raised: Revised full-year EBITDA guidance to $500–$520M, reflecting operational strength and expansion.
  • Distribution Increase: 51st consecutive quarterly distribution hike to $1.12 per unit.
  • Segment Performance: Gathering & Processing segment reported $83M EBITDA (vs $55M in Q3 2024), driven by H2O and Gravity acquisitions.
  • Financial Liquidity: Maintains $1B in credit facility availability, supporting growth and leverage management.

Operational Highlights

The company has made significant progress on its acid gas injection and sour gas handling capabilities, enabling it to fill the Libby 2 plant to capacity and paving the way for further processing capacity expansions. Delek Logistics continues to advance its key initiatives in natural gas, crude, and water businesses, further improving its position as a premier full-service provider in the Permian Basin. The company is seeing solid operations in its crude and water gathering segments, with both VPG and DTG crude gathering operations having a strong third quarter.

Financial Position and Guidance

The company maintains a strong financial position with approximately $1 billion of availability on its credit facilities. Delek Logistics has increased its full-year EBITDA midpoint guidance to the upper end of the range, between $500 million and $520 million. The Board of Directors has approved the 51st consecutive increase in the quarterly distribution to $1.12 per unit, highlighting the company's commitment to returning value to unitholders.

Valuation and Growth Prospects

With a P/E Ratio of 67.96 and an EV/EBITDA of 5.39, the company's valuation appears to be influenced by its growth prospects. Analysts estimate next year's revenue growth at 11.0%, indicating a positive outlook for the company. The Dividend Yield of 9.92% also makes it an attractive option for income-seeking investors. The company's ROE of 96.13% and ROIC of 7.71% demonstrate its ability to generate returns on equity and invested capital.

3. NewsRoom

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Delek Logistics Partners (NYSE:DKL) Stock Price Passes Above Two Hundred Day Moving Average – Time to Sell?

Dec -03

Source: defenseworld.net

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The Most Viable 10% Yielding Retirement Portfolio I've Ever Designed

Nov -21

Source: seekingalpha.com

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Is the Options Market Predicting a Spike in Delek Logistics Stock?

Nov -11

Source: zacks.com

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Delek Logistics Partners, LP Common Units (DKL) Q3 2025 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

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Delek Logistics Reports Record Third Quarter 2025 Results

Nov -07

Source: businesswire.com

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3 Monster Dividend Stocks Yielding as Much as 13%

Nov -06

Source: fool.com

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Delek Logistics Partners, LP Increases Quarterly Cash Distribution to $1.120 per Common Limited Partner Unit

Oct -28

Source: businesswire.com

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Is HF Sinclair (DINO) Stock Outpacing Its Oils-Energy Peers This Year?

Oct -27

Source: zacks.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

Stock-Card
Delek Logistics Partners

A-Score: 6.4/10

Value: 4.9

Growth: 3.0

Quality: 4.6

Yield: 10.0

Momentum: 7.5

Volatility: 8.7

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A-Score: 6.0/10

Value: 6.9

Growth: 3.9

Quality: 3.1

Yield: 10.0

Momentum: 5.0

Volatility: 7.0

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Genesis Energy

A-Score: 5.8/10

Value: 7.0

Growth: 3.4

Quality: 1.5

Yield: 9.0

Momentum: 7.5

Volatility: 6.3

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NGL Energy Partners

A-Score: 4.7/10

Value: 7.6

Growth: 3.6

Quality: 5.0

Yield: 0.0

Momentum: 9.0

Volatility: 3.0

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Overseas Shipholding Group

A-Score: 4.2/10

Value: 6.6

Growth: 5.9

Quality: 5.3

Yield: 0.0

Momentum: 5.0

Volatility: 2.7

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Martin Midstream Partners

A-Score: 3.8/10

Value: 9.8

Growth: 2.6

Quality: 3.7

Yield: 1.0

Momentum: 1.5

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

45.82$

Current Price

45.82$

Potential

-0.00%

Expected Cash-Flows