Delek Logistics Partners Lp Stock Price, News & Analysis

Delek Logistics Partners, LP (NYSE: DKL) has announced its plans to release third quarter 2024 results on Wednesday, November 6, 2024, before the U.S. stock market opens. The company will host a conference call to discuss these results at 10:30 a.m. CT (11:30 a.m. ET) on the same day. Investors and interested parties can access the live broadcast of the conference call on the company's website at www.DelekLogistics.com in the webcasts section. An online replay of the call will be available on the website for 90 days following the event.

Delek Logistics Partners, LP (NYSE: DKL) has closed the acquisition of H2O Midstream, a portfolio company of EIV Capital, , for a total consideration of $230 million. The deal includes $160 million in cash and $70 million of convertible preferred redeemable equity. H2O Midstream provides water-related services in the Midland Basin, Texas, including gathering, transportation, recycling, storage, and disposal.

This acquisition aligns with Delek Logistics' strategy to offer comprehensive midstream solutions in the Permian Basin. The company expects to leverage synergies through cost optimization and cross-product sales, as H2O Midstream's operations significantly overlap with Delek's existing Midland, Texas operations.

Delek Logistics Partners, LP (NYSE: DKL) has priced an upsized offering of $200 million in additional 8.625% senior notes due 2029. The offering, initially announced at $100 million, was increased and priced at 103.250% of face value. These Additional Notes will be part of the same series as the $850 million in Existing Notes issued earlier in 2024. The offering is expected to close on August 16, 2024, subject to customary conditions.

Delek Logistics plans to use the net proceeds to repay a portion of its revolving credit facility. The Additional Notes are being offered only to qualified institutional buyers and non-U.S. persons, and have not been registered under the Securities Act, limiting their sale and transfer.

Delek Logistics Partners, LP (NYSE: DKL) has announced a proposed offering of $100 million in additional 8.625% senior notes due 2029. These Additional Notes will be issued under the same indenture as the existing $850 million in aggregate principal amount of 8.625% senior notes due 2029. The offering is subject to market conditions and will be made to eligible purchasers in a private placement.

The company intends to use the net proceeds from this offering to repay a portion of the outstanding borrowings under its revolving credit facility. The Additional Notes will only be offered to qualified institutional buyers and non-U.S. persons outside the United States, in compliance with Rule 144A and Regulation S under the Securities Act, respectively.

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.