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Delek Logistics Partners, LP (NYSE: DKL), based in Brentwood, Tennessee, is a dynamic publicly traded master limited partnership (MLP) established by Delek US Holdings in 2012. The company specializes in the ownership, operation, acquisition, and construction of crude oil and refined products logistics and marketing assets. A significant portion of their assets are crucial for supporting the refining operations of Delek's facilities in Tyler, Texas, and El Dorado, Arkansas.
Delek Logistics operates through several segments including Pipelines and Transportation, as well as Investments in Pipeline Joint Ventures. Their services encompass gathering, transporting, and storing crude oil, along with marketing, distributing, and storing refined products. These operations primarily serve Delek's refineries and also cater to third-party customers in the southeastern United States and West Texas.
The Pipelines and Transportation segment is the cornerstone of Delek Logistics' business, featuring pipelines, tanks, offloading facilities, and trucks that facilitate the movement and storage of crude oil and refined products. This segment is responsible for the majority of the company's revenue, showcasing their extensive infrastructure.
Recent achievements highlight Delek Logistics' proactive approach in financial management and expansion. On March 7, 2024, the company announced a public offering of $120 million in common units, with an additional option for underwriters to purchase $13.5 million more. This initiative aims to repay outstanding borrowings under its revolving credit agreement, showcasing their commitment to financial health.
In another significant move, Delek Logistics revealed the pricing of a public offering of 3,116,884 common units at $38.50 per unit on March 7, 2024. The net proceeds are intended to further strengthen their financial standing by reducing debt. Additionally, a tender offer for 6.75% Senior Notes due in 2025, announced on March 11, 2024, further emphasizes their strategic financial maneuvers.
Delek Logistics’ extensive network and joint ventures, particularly in the Permian and Delaware Basins, underline their pivotal role in the midstream energy sector. They provide a range of services including crude oil gathering, transportation, and storage, as well as wholesale marketing and terminalling, which are integral to their operations and growth strategy.
The strong backing from Delek Holdings, which owns the general partner interest and a majority limited partner interest, coupled with their significant customer relationship, adds to Delek Logistics' stability and growth potential. Investors can stay updated with the latest developments and financial performance through their investor relations webpage and news releases.
Delek US Holdings reported a fourth quarter 2021 net loss of $(41.9) million, a significant improvement from a net loss of $(293.2) million in Q4 2020. On an adjusted basis, the net loss was $(44.9) million versus $(204.0) million the prior year. Adjusted EBITDA was $58.2 million, contrasting with $(137.6) million in Q4 2020. The refining contribution margin rose to $32.1 million, driven by increased demand and higher crack spreads. The company maintained a cash balance of $856.5 million with total long-term debt at $2,218.0 million.
Delek Logistics Partners reported a fourth-quarter 2021 net income of $41.7 million, or $0.96 per diluted common limited partner unit, a slight increase from $40.7 million in Q4 2020. However, net cash from operating activities decreased to $52.9 million from $58.4 million year-over-year. EBITDA rose to $69.7 million, reflecting strong asset utilization. The company declared a quarterly distribution of $0.975 per unit, a 2.6% increase from the previous quarter. Debt stood at $899 million with an improved leverage ratio.
Delek Logistics Partners, LP (NYSE: DKL) declared a quarterly cash distribution of $0.975 per common limited partner unit for Q4 2021, a 2.6% increase from Q3 2021 and a 7.1% increase from Q4 2020. This distribution, payable on February 8, 2022, highlights the company's consistent quarterly increases since Q4 2012. Improved energy sentiment and strong utilization rates are noted as contributing factors, while no major turnaround activities are planned for 2022. The management emphasizes stability despite potential risks, including those linked to Delek US and external market conditions.
Delek US Holdings (NYSE: DK) announced it will summarize its fourth quarter 2021 results after the U.S. market closes on February 23, 2022. A conference call for results discussion is set for 8:30 a.m. CT on February 24, 2022. Investors can access the live broadcast via DelekUS.com. Additionally, Delek Logistics Partners (NYSE: DKL) will announce its fourth quarter earnings on the same day at 7:30 a.m. CT, with relevant information also available on DelekLogistics.com.
Delek Logistics Partners, LP (NYSE: DKL) will announce its fourth quarter 2021 results on February 23, 2022, after market close. A conference call to discuss these results is set for February 24, 2022, at 7:30 a.m. CT. Investors can access the live broadcast through the Delek Logistics website, with a replay available for 90 days. Delek Logistics operates as a master limited partnership focusing on midstream energy assets and is a subsidiary of Delek US Holdings, Inc. (NYSE: DK).
Delek US Holdings (NYSE:DK) has announced a program to sell up to 434,590 common limited partner units in Delek Logistics Partners, LP (NYSE:DKL) over the next three months. This sale, guided by Rule 144 and a Rule 10b5-1 trading plan, aims to highlight the value of Delek's approximately 80% ownership in DKL, which the company believes is not reflected in its stock price. This move is expected to enhance liquidity and trading volumes for DKL, ultimately benefiting its unitholders.
Delek US Holdings and Delek Logistics Partners announced their 2022 capital spending budget, which ranges from $250 million to $260 million. The budget allocates approximately $59 million for growth at Delek Logistics, anticipated to be self-funding. Key focuses include expanding the Permian Gathering business due to strong demand and opening four new retail locations. Fourth quarter refining throughput guidance is between 275 to 280 mbbl/d, with maintenance activities delayed until 2023.
Delek US Holdings (NYSE: DK) and Delek Logistics Partners (NYSE: DKL) announced a 2022 capital spending budget of $250 million to $260 million. This budget includes $59 million for Delek Logistics, which is expected to be self-funded. Key growth areas include the expansion of the Delek Permian Gathering business and four new retail locations. Minor maintenance at the Tyler facility is scheduled for Q4 2021, allowing the next turnaround to start in 2023, with refining throughput guidance for Q4 projected at 275 to 280 mbbl/d.
Delek US Holdings reported a net income of $18.1 million, or $0.24 per share, for Q3 2021, rebounding from a net loss of $(88.1) million in Q3 2020. Adjusted net income stood at $9.9 million, significantly improving from an adjusted net loss of $(99.5) million year-over-year. Adjusted EBITDA was $109.8 million, up from $(11.2) million in the prior year. The refining segment saw a contribution margin increase to $91.4 million, driven by improved operational reliability and higher demand.
Delek Logistics Partners reported a third quarter net income of $43.6 million, down from $46.3 million in 2020. The diluted earnings per unit were $1.00, compared to $1.26 the previous year. Operating cash flow increased to $74.8 million, with distributable cash flow at $55.5 million. EBITDA rose to $69.9 million, up from $67.8 million year-over-year. A quarterly distribution was declared at $0.95 per unit, marking a 1.1% increase from the previous quarter. The company maintained a strong leverage ratio and reported a healthy cash distribution coverage ratio of 1.34x.
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