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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.
H2O Midstream and EIV Capital have announced the sale of H2O Midstream to Delek Logistics Partners (NYSE: DKL). H2O Midstream provides comprehensive water management solutions in Howard County, Texas. The acquisition creates a fully integrated multi-commodity midstream platform in the Midland Basin.
H2O Midstream's system includes 250+ miles of buried pipe, ~4 million barrels of storage, and access to over 900,000 barrels per day of disposal capacity across a ~400 square mile footprint. This sale marks the culmination of an eight-year venture between H2O Midstream and EIV Capital, which began their partnership in 2016 to pursue produced water midstream opportunities in the Permian Basin.
Delek Logistics Partners, LP (NYSE: DKL) reported record second quarter 2024 results, with net income attributable to all partners of $41.1 million, or $0.87 per diluted common partner unit. The company achieved quarterly EBITDA of $102.4 million and distributable cash flow of $67.8 million, with a DCF coverage ratio of 1.32x. Delek Logistics announced several strategic moves, including the acquisition of H2O Midstream for $230 million, acquisition of Delek US' interest in the Wink to Webster pipeline, and the final investment decision on a new gas processing plant. The company improved its leverage ratio to 3.81x and increased its quarterly distribution to $1.090 per unit, marking the 46th consecutive increase.
Delek US Holdings (NYSE: DK) reported a net loss of $37.2 million or $(0.58) per share for Q2 2024, with an adjusted net loss of $59.3 million or $(0.92) per share. The company's adjusted EBITDA was $107.5 million. Key developments include:
1. Agreement to sell retail assets for $385 million
2. 10-year fuel supply agreement with FEMSA
3. Amended and extended intercompany contracts with Delek Logistics (DKL)
4. Dropped down Wink to Webster pipeline interest to DKL
5. DKL acquired H2O Midstream and announced a new gas processing plant
The company's refining segment saw a decrease in Adjusted EBITDA, while the logistics segment improved. Delek US increased its quarterly dividend to $0.255 per share.
FEMSA and Delek US Holdings have signed a definitive agreement for FEMSA to acquire 100% of Delek's retail business for $385 million. The transaction includes 249 corporate stores operating under the DK brand, primarily in Texas and New Mexico. This marks FEMSA's entry into the US convenience and mobility industry, expanding its global retail operations. For Delek, this sale aligns with their strategy to unlock value for stakeholders and gain a competitive partner for ongoing retail fuel sales. The deal is expected to close in late Q3 or Q4 2024.
FEMSA, a Mexican conglomerate, operates over 22,800 OXXO stores across 5 countries. Delek US Holdings is a diversified downstream energy company with assets in refining, logistics, pipelines, renewable fuels, and convenience store retailing.
Delek US Holdings, Inc. (DK) has announced a $0.005 increase in its regular quarterly dividend to $0.255 per share. The dividend will be paid on August 19, 2024, to shareholders of record on August 12, 2024. Delek US is a diversified downstream energy company with assets in petroleum refining, logistics, pipelines, renewable fuels, and convenience store retailing. The company operates refineries in Texas, Arkansas, and Louisiana with a combined nameplate crude throughput capacity of 302,000 barrels per day. Delek US also has an ownership interest in the 650-mile Wink to Webster long-haul crude oil pipeline and operates approximately 250 convenience stores in West Texas and New Mexico. Additionally, Delek US owns about 72.6% of Delek Logistics Partners, LP (NYSE: DKL) as of June 30, 2024.
Delek Logistics Partners, LP (NYSE: DKL) has announced its quarterly cash distribution for the second quarter of 2024. The company will distribute $1.09 per common partner unit, which equates to $4.36 per unit on an annualized basis. This distribution is set to be paid on August 16, 2024, to unitholders of record as of August 9, 2024. This announcement represents an increase in the company's quarterly cash distribution, demonstrating Delek Logistics' commitment to delivering value to its unitholders.
Delek US Holdings (NYSE: DK) has scheduled a conference call to discuss its second quarter 2024 results on August 6, 2024. The press release summarizing the results will be issued before the U.S. stock market opens. Scheduled to start at 11:00 a.m. CT (12:00 p.m. ET), the conference call will be accessible live online through the company's investor relations section on their website. An online replay will also be available for 90 days.
Delek Logistics Partners (NYSE: DKL) will release its second quarter 2024 financial results before the U.S. stock market opens on August 6, 2024. The company will host a conference call to discuss these results on the same day at 12:30 p.m. CT (1:30 p.m. ET). Interested parties can access the live broadcast and subsequent 90-day replay online at the company's website, www.DelekLogistics.com, under the webcasts section.
Delek Logistics Partners, LP (NYSE: DKL) reported a net income of $32.6 million for the first quarter of 2024, with earnings before interest, taxes, depreciation and amortization (EBITDA) of $101.5 million. Distributable cash flow stood at $68.0 million, with a coverage ratio of 1.35x. The company executed $850 million debt and $138 million equity offerings, improving liquidity to $800.0 million. With a total of 47.2 million outstanding units, Delek Logistics delivered its 45th consecutive distribution growth, now at $1.070 per unit.
Delek US Holdings, Inc. reported a net loss of $32.6 million in the first quarter of 2024, with adjusted net loss of $26.2 million. They successfully executed debt and equity offerings, improving liquidity to $800 million. The company added 3.6 million DKL units, increased volume activity, and improved leverage ratio. They paid $15.7 million in dividends and increased quarterly dividend to $0.250 per share. The refining segment's Adjusted EBITDA was $106.1 million, logistics segment's was $99.7 million, and retail segment's was $6.5 million. Corporate and other activities reported a loss of $(53.6) million. Delek US had a cash balance of $753.4 million and total long-term debt of $2,496.9 million.
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