Delek Logistics Partners (NYSE:DKL) Posts Quarterly Earnings Results

Delek Logistics Partners (NYSE:DKL) released its quarterly earnings data on Wednesday. The oil and gas producer reported $0.60 EPS for the quarter, missing the consensus estimate of $0.95 by ($0.35), Zacks reports. Delek Logistics Partners had a net margin of 17.41% and a return on equity of 461.30%. The company had revenue of $297.47 million for the quarter, compared to the consensus estimate of $270.03 million.

Here are the key takeaways from Delek Logistics Partners’ conference call:

• DKL reaffirmed full-year 2026 Adjusted EBITDA guidance of $520M–$560M after reporting Q1 Adjusted EBITDA of ~$132M and DCF coverage of ~1.2x, citing strong execution and favorable macro tailwinds.
• Management completed drilling its first AGI well and is finishing sour-gas gathering infrastructure (compressor stations), expecting a utilization ramp in the next 3–6 months and potential need for additional processing capacity.
• The produced-water business is performing above expectations following the Gravity and H2O Midstream acquisitions, and the company is pursuing platform-style gathering, treatment and disposal solutions to capture growing demand.
• The board approved the 53rd consecutive quarterly distribution increase, raising the distribution to $1.13 per unit, underscoring the firm’s commitment to returning capital to unitholders.
• While liquidity was increased by upsizing the revolver to $1.3B (available liquidity ~ $1.1B), the partnership exited the quarter with an adjusted leverage ratio of 4.05x, which may limit flexibility or raise investor concern about leverage levels.

Delek Logistics Partners Trading Down 0.8%

Shares of NYSE:DKL traded down $0.42 during trading on Thursday, reaching $52.64. The company’s stock had a trading volume of 92,217 shares, compared to its average volume of 66,329. The company has a current ratio of 1.12, a quick ratio of 1.07 and a debt-to-equity ratio of 386.77. Delek Logistics Partners has a 12 month low of $37.50 and a 12 month high of $55.89. The firm’s 50 day simple moving average is $51.74 and its two-hundred day simple moving average is $48.56. The stock has a market capitalization of $2.82 billion, a PE ratio of 16.00, a price-to-earnings-growth ratio of 0.55 and a beta of 0.54.

Delek Logistics Partners Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, May 11th. Investors of record on Monday, May 4th will be issued a $1.13 dividend. This represents a $4.52 dividend on an annualized basis and a dividend yield of 8.6%. The ex-dividend date of this dividend is Monday, May 4th. This is a positive change from Delek Logistics Partners’s previous quarterly dividend of $1.13. Delek Logistics Partners’s payout ratio is 137.39%.

Institutional Trading of Delek Logistics Partners

Several institutional investors have recently added to or reduced their stakes in the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in Delek Logistics Partners by 4.1% in the third quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,584,902 shares of the oil and gas producer’s stock worth $72,176,000 after purchasing an additional 61,840 shares during the last quarter. JPMorgan Chase & Co. lifted its stake in Delek Logistics Partners by 1.1% in the fourth quarter. JPMorgan Chase & Co. now owns 431,845 shares of the oil and gas producer’s stock worth $19,269,000 after purchasing an additional 4,879 shares during the last quarter. Raymond James Financial Inc. lifted its stake in Delek Logistics Partners by 11.2% in the third quarter. Raymond James Financial Inc. now owns 228,090 shares of the oil and gas producer’s stock worth $10,387,000 after purchasing an additional 23,054 shares during the last quarter. HRT Financial LP lifted its stake in Delek Logistics Partners by 278.3% in the second quarter. HRT Financial LP now owns 74,704 shares of the oil and gas producer’s stock worth $3,208,000 after purchasing an additional 54,959 shares during the last quarter. Finally, American Financial Group Inc. lifted its stake in Delek Logistics Partners by 3.0% in the fourth quarter. American Financial Group Inc. now owns 17,000 shares of the oil and gas producer’s stock worth $759,000 after purchasing an additional 500 shares during the last quarter. Institutional investors own 11.75% of the company’s stock.

Wall Street Analyst Weigh In

Several research firms have commented on DKL. Mizuho increased their price objective on shares of Delek Logistics Partners from $45.00 to $52.00 and gave the company a “neutral” rating in a report on Tuesday, April 21st. Zacks Research downgraded shares of Delek Logistics Partners from a “hold” rating to a “strong sell” rating in a report on Friday, January 23rd. Citigroup reaffirmed a “neutral” rating and issued a $52.00 price target (up from $47.00) on shares of Delek Logistics Partners in a report on Friday, March 6th. Truist Financial initiated coverage on shares of Delek Logistics Partners in a report on Tuesday, March 24th. They issued a “hold” rating and a $57.00 price target for the company. Finally, Raymond James Financial reaffirmed an “outperform” rating and issued a $60.00 price target on shares of Delek Logistics Partners in a report on Thursday. Two equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of “Hold” and an average price target of $55.25.

Delek Logistics Partners Company Profile

Delek Logistics Partners L.P. (NYSE: DKL) is a master limited partnership formed in 2011 through contributions of pipeline, terminal and crude oil gathering assets by its sponsor, Delek US Holdings, Inc Headquartered in Brentwood, Tennessee, the partnership is managed by Delek Logistics GP, LLC, an affiliate of Delek US. Delek Logistics Partners owns and operates an integrated network of petroleum pipelines and terminals that support the movement, storage and throughput of crude oil and refined products.

The partnership’s core operations include crude oil gathering and processing systems, long-haul pipeline transportation and storage terminal services.