Delek Logistics Partners, LP Increases Quarterly Cash Distribution to $1.10 per Common Limited Partner Unit

Rhea-AI Summary

Delek Logistics Partners (NYSE: DKL) has announced its quarterly cash distribution for Q3 2024. The company will distribute $1.10 per common partner unit, equivalent to $4.40 on an annualized basis. The distribution will be paid on November 14, 2024, to unitholders of record as of November 8, 2024.

Positive

• Maintains consistent quarterly distribution payments to unitholders
• Provides stable income stream for investors with $4.40 annual distribution rate

Negative

• None.

Insights

Financial Analyst

This dividend increase represents a significant development for DKL investors. The $1.10 quarterly distribution ($4.40 annualized) offers a substantial yield of approximately 9.2% based on current market prices. The consistent distribution pattern demonstrates DKL's commitment to returning value to unitholders and suggests strong underlying cash flow generation from their midstream operations.

For MLPs like Delek Logistics Partners, distribution levels and sustainability are important metrics for investors. The maintained high yield positions DKL competitively within the midstream sector, where income-focused investors often seek stable, high-yielding investments. However, investors should monitor the distribution coverage ratio in upcoming earnings to ensure the payout remains sustainable.

BRENTWOOD, Tenn.--(BUSINESS WIRE)-- Delek Logistics Partners, LP (NYSE: DKL) (“Delek Logistics”) today declared its quarterly cash distribution for the third quarter 2024 of $1.10 per common limited partner unit, or $4.40 per common limited partner unit on an annualized basis. The third quarter 2024 cash distribution is payable on November 14, 2024, to unitholders of record on November 8, 2024.

About Delek Logistics Partners, LP

Delek Logistics is a midstream energy master limited partnership headquartered in Brentwood, Tennessee. Through its owned assets and joint ventures located primarily in and around the Permian Basin, the Delaware Basin and other select areas in the Gulf Coast region, Delek Logistics provides gathering, pipeline, transportation, and other services for its customers in crude oil, intermediates, refined products, natural gas, storage, wholesale marketing, terminalling water disposal and recycling. Delek US Holdings, Inc. (NYSE: DK) ("Delek US") owns the general partner interest as well as a majority limited partner interest in Delek Logistics and is also a significant customer.

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 future distributions, including the amounts and timing thereof, current estimates, expectations or projections about future distributions, future financial flexibility, results, performance, prospects, opportunities, plans, actions and events and other statements, concerns, or matters that are not historical facts are "forward-looking statements," within the meaning of federal securities laws. Forward-looking statements should not be read as a guarantee of future performance or results and may not be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time and/or management's good faith belief with respect to future events, and investors are cautioned that risks described in Delek Logistics’ filings with the United States Securities and Exchange Commission, among others, could cause actual performance or results to differ materially from those expressed in the statements. There can be no assurance that actual results will not differ from those expected by management or described in forward-looking statements. Delek Logistics undertakes no obligation to update or revise such forward-looking statements to reflect events or circumstances that occur, or which Delek Logistics becomes aware of, after the date hereof.

Tax Considerations

This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b)(4) and (d). Please note that 100 percent of Delek Logistics Partners, LP's distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, all of Delek Logistics Partners, LP's distributions to foreign investors are subject to federal income tax withholding at the highest applicable effective tax rate for individuals or corporations, as applicable. Nominees, and not Delek Logistics Partners, LP, are treated as the withholding agents responsible for withholding on the distributions received by them on behalf of foreign investors.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241029559689/en/

Investor Relations and Media/Public Affairs Contact:

investor.relations@delekus.com

Source: Delek Logistics Partners, LP

FAQ

What is Delek Logistics Partners' (DKL) Q3 2024 distribution amount?

Delek Logistics Partners' Q3 2024 distribution amount is $1.10 per common partner unit, or $4.40 on an annualized basis.

When is DKL's Q3 2024 distribution payment date?

The Q3 2024 distribution will be paid on November 14, 2024, to unitholders of record as of November 8, 2024.

What is DKL's annualized distribution rate for 2024?

Delek Logistics Partners' annualized distribution rate is $4.40 per common partner unit, based on the quarterly distribution of $1.10.