Delek Logistics Partners, LP Announces 12-Year Acreage Dedication
Delek Logistics Partners, LP (NYSE: DKL) has announced a 12-year acreage dedication and crude oil gathering agreement for an additional 50,000 acres with an independent oil and gas producer. This agreement is supported by Delek Logistics' Permian Gathering System (DPG) in West Texas and includes a minimum volume commitment. The transaction increases DPG's total acreage dedication to over 350,000 acres.
The agreement is expected to be immediately accretive to DKL's EBITDA profile and provides opportunities for incremental value creation through operational efficiencies. Avigal Soreq, President at Delek Logistics, expressed excitement about the high-quality growth opportunities and reaffirmed the company's commitment to being the preferred midstream services provider in the Permian Basin.
Delek Logistics Partners, LP (NYSE: DKL) ha annunciato un accordo di dedizione per 12 anni e raccolta di petrolio greggio per ulteriori 50.000 acri con un produttore indipendente di petrolio e gas. Questo accordo è supportato dal Permian Gathering System (DPG) di Delek Logistics in Texas Occidentale e include un impegno di volume minimo. La transazione aumenta la dedizione totale di DPG a oltre 350.000 acri.
Si prevede che l'accordo sia immediatamente accretivo al profilo EBITDA di DKL e fornisca opportunità per la creazione di valore incrementale attraverso efficienze operative. Avigal Soreq, Presidente di Delek Logistics, ha espresso entusiasmo per le alte opportunità di crescita di qualità e ha ribadito l'impegno dell'azienda a essere il fornitore di servizi midstream preferito nel Bacino Permiano.
Delek Logistics Partners, LP (NYSE: DKL) ha anunciado un acuerdo de dedicación de terrenos por 12 años y recolección de petróleo crudo para un adicional de 50,000 acres con un productor independiente de petróleo y gas. Este acuerdo está respaldado por el Sistema de Recolección Permian (DPG) de Delek Logistics en Texas Occidental e incluye un compromiso de volumen mínimo. La transacción aumenta la dedicación total de DPG a más de 350,000 acres.
Se espera que el acuerdo sea inmediatamente accretivo al perfil EBITDA de DKL y ofrezca oportunidades para la creación de valor incremental a través de eficiencias operativas. Avigal Soreq, Presidente de Delek Logistics, expresó su entusiasmo por las oportunidades de crecimiento de alta calidad y reafirmó el compromiso de la empresa de ser el proveedor preferido de servicios midstream en la Cuenca Permiana.
Delek Logistics Partners, LP (NYSE: DKL)는 독립 석유 및 가스 생산자와 추가 50,000 에이커를 위한 12년 면적 헌납 및 원유 모음 계약을 발표했습니다. 이 계약은 텍사스 서부의 Delek Logistics의 Permian Gathering System (DPG)에 의해 지원되며 최소량 약정이 포함됩니다. 이 거래는 DPG의 총 헌납 면적을 350,000 에이커 이상으로 증가시킵니다.
이 계약은 즉각적으로 DKL의 EBITDA 프로필에 기여할 것으로 예상되며 운영 효율성을 통한 추가 가치 창출 기회를 제공합니다. Delek Logistics의 사장 Avigal Soreq는 고품질 성장 기회에 대한 기대감을 표명하며, Permian Basin에서 선호하는 미드스트림 서비스 제공업체가 되겠다는 회사의 약속을 재확인했습니다.
Delek Logistics Partners, LP (NYSE: DKL) a annoncé un contrat de dédicace de terrain de 12 ans et de collecte de pétrole brut pour 50 000 acres supplémentaires avec un producteur indépendant de pétrole et de gaz. Cet accord est soutenu par le Système de Collecte Permien (DPG) de Delek Logistics au Texas Occidental et inclut un engagement de volume minimum. La transaction augmente la dédicace totale de DPG à plus de 350 000 acres.
Il est prévu que l'accord soit immédiatement accretif au profil EBITDA de DKL et offre des opportunités de création de valeur supplémentaire grâce à l'efficacité opérationnelle. Avigal Soreq, Président de Delek Logistics, a exprimé son enthousiasme pour les opportunités de croissance de haute qualité et a réaffirmé l'engagement de l'entreprise à être le fournisseur de services midstream préféré dans le Bassin Permien.
Delek Logistics Partners, LP (NYSE: DKL) hat eine 12-jährige Flächenbindung und Vereinbarung zur Erfassung von Rohöl für zusätzlich 50.000 Acres mit einem unabhängigen Öl- und Gasproduzenten angekündigt. Diese Vereinbarung wird durch das Permian Gathering System (DPG) von Delek Logistics in Westtexas unterstützt und umfasst ein Mindestvolumenengagement. Die Transaktion erhöht die gesamte Flächenbindung von DPG auf über 350.000 Acres.
Es wird erwartet, dass die Vereinbarung sofort einen positiven Einfluss auf das EBITDA-Profil von DKL haben wird und Chancen für die Schaffung zusätzlicher Werte durch operative Effizienz bietet. Avigal Soreq, Präsident von Delek Logistics, äußerte Begeisterung über die hochwertigen Wachstumschancen und bekräftigte das Engagement des Unternehmens, der bevorzugte Anbieter von Midstream-Dienstleistungen im Permian Basin zu sein.
- 12-year acreage dedication and crude oil gathering agreement secured
- Additional 50,000 acres added to Permian Gathering System
- Total acreage dedication increased to over 350,000 acres
- Agreement includes minimum volume commitment
- Immediately accretive to DKL's EBITDA profile
- Opportunities for incremental value creation through operational efficiencies
- None.
Insights
This acreage dedication agreement is a significant development for Delek Logistics Partners. The 12-year commitment for an additional 50,000 acres expands their Permian Gathering System's total acreage to over 350,000 acres, solidifying their position in the Permian Basin. The deal includes a minimum volume commitment, which provides revenue stability and predictability.
The immediate accretion to DKL's EBITDA profile is particularly noteworthy. This suggests an immediate positive impact on cash flow, which is important for midstream companies. The potential for incremental value creation through operational efficiencies could lead to improved margins over time.
For investors, this agreement represents a long-term growth driver. The Permian Basin remains a key oil-producing region and DKL's expanded footprint positions them well to capitalize on future production increases. The management's confidence in the asset's value, referencing recent transactions, indicates potential upside in asset valuation.
This deal strengthens Delek Logistics' financial outlook. The 12-year duration of the agreement provides long-term revenue visibility, which is highly valued in the midstream sector. The minimum volume commitment further de-risks the revenue stream, potentially improving DKL's risk profile for investors.
The immediate accretion to EBITDA is a positive signal for cash flow generation and could support distribution growth or debt reduction. While specific financial figures aren't provided, the expansion from 300,000 to 350,000 acres represents a
Investors should monitor how this expansion impacts DKL's leverage ratios and distribution coverage. If the company can grow distributions while maintaining financial discipline, it could lead to a re-rating of the stock. The management's focus on showcasing the value created in the Permian basin suggests potential for unlocking shareholder value through strategic initiatives or asset monetization.
“We are excited about the high-quality growth opportunities we are seeing in and around our existing assets,” said Avigal Soreq, President at Delek Logistics. “We remain committed to executing our strategy of being the preferred oil, gas and water midstream services provider in the Permian Basin. We are encouraged by the value the market is assigning to assets like DPG, based on the recent transactions around our acreage. The announced acreage dedication, as well as our other growth plans, will continue to make DPG a stronger asset. We are determined to showcase the value DKL has created in the Permian basin and are confident that our strategy will continue to yield benefits for the stakeholders of Delek Logistics.”
About Delek Logistics Partners, LP
Delek Logistics Partners, LP is a midstream energy master limited partnership headquartered in
Safe Harbor Provisions Regarding Forward-Looking Statements
This press release contains forward-looking statements that are based upon current expectations and involve a number of risks and uncertainties. Statements concerning current estimates, expectations and projections about future results, performance, prospects, opportunities, plans, actions and events and other statements, concerns, or matters that are not historical facts are “forward-looking statements,” as that term is defined under the federal securities laws. Investors are cautioned that important factors may affect these forward-looking statements, as described in Delek US’s and Delek Logistics’ filings with the SEC, including risks disclosed in their respective Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and other filings and reports with the SEC.
Forward-looking statements should not be read as a guarantee of future performance or results and will not be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking information is based on information available at the time and/or management's good faith belief with respect to future events, and is subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statements. Neither Delek US nor Delek Logistics undertakes any obligation to update or revise any such forward-looking statements to reflect events or circumstances that occur, or which they become aware of, after the date hereof, except as required by applicable law or regulation.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240930719545/en/
Investor Relations and Media/Public Affairs Contact:
investor.relations@delekus.com
Source: Delek Logistics Partners, LP
FAQ
What is the duration of the new acreage dedication agreement for Delek Logistics Partners (DKL)?
How many additional acres were added to Delek Logistics Partners' (DKL) Permian Gathering System?
What is the total acreage dedication for Delek Logistics Partners' (DKL) Permian Gathering System after this agreement?
How will the new agreement impact Delek Logistics Partners' (DKL) EBITDA?
