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Delek Logistics Partners Lp - DKL STOCK NEWS

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Overview of Delek Logistics Partners LP

Delek Logistics Partners LP (NYSE: DKL) is a growth-oriented publicly traded master limited partnership that specializes in owning, operating, acquiring, and constructing logistics and marketing assets that form the backbone of the energy products supply chain. With deep roots in the energy logistics sector, the company supports both the crude oil and refined products markets, leveraging its extensive network of gathering, storage, transportation, and terminalling facilities. Key industry terms such as crude oil logistics and refined product marketing capture the essence of its operations and emphasize its critical role in the energy sector.

Core Business Areas

At its core, Delek Logistics Partners LP operates through multiple integrated business segments:

  • Gathering and Processing: The company manages the collection and processing of crude oil before it reaches the refining stage, ensuring efficient and safe handling of raw materials.
  • Wholesale Marketing and Terminalling: This segment focuses on the wholesale marketing of refined products, providing terminalling services that facilitate efficient distribution and exchange activities. It serves both Delek US Holdings’ refineries and independent third parties by offering robust marketing and terminalling solutions.
  • Storage and Transportation: An essential aspect of its operations, the company provides extensive storage facilities and transportation networks that are instrumental for both crude oil and refined products. These assets form a resilient infrastructure that supports supply chain operations in strategic regions.
  • Pipeline Joint Ventures: Investment in pipeline initiatives enables the company to integrate deeper into the energy transportation network, enhancing its capability to deliver products efficiently across extensive geographic areas.

Operational Excellence and Infrastructure

The company distinguishes itself through a robust infrastructure and a systematic operational model. Its assets are chiefly located in key regions of the southeastern United States and West Texas, aligning with major refining centers in Tyler, Texas, and El Dorado, Arkansas. This strategic geographic positioning not only supports the operational needs of Delek US Holdings’ refineries but also provides a competitive advantage through localized service offerings, reduced transportation costs, and heightened market connectivity.

Furthermore, recent strategic moves have expanded the company’s service portfolio beyond traditional oil and refined product logistics. The acquisition of water midstream assets has broadened its infrastructure to include water gathering, transportation, storage, recycling, and disposal solutions, highlighting its commitment to comprehensive energy-product logistics. This addition underlines the company’s adaptive strategy in meeting broader energy industry needs without compromising on its core competencies.

Market Position and Competitive Environment

Delek Logistics Partners LP holds a prominent position in the energy logistics space. Its ability to integrate multiple facets of the energy supply chain—from crude oil gathering through refined product marketing—enables it to offer unique value propositions to both affiliated operations and third-party customers. By leveraging an interconnected network of assets and services, the company ensures operational flexibility and resilience even in fluctuating market conditions.

In a competitive industry, the company's diverse portfolio of services and strategic asset locations help differentiate it from traditional logistics providers. The integrated approach, focusing on high-efficiency operations and regional expertise, establishes a reliable operational model that many market participants aspire to replicate.

Expertise and Industry Dynamics

Delek Logistics Partners LP exemplifies operational efficiency by offering specialized terminalling services, which are vital for both the maintenance of product quality and timely distribution. The company's operations are a direct extension of the integrated logistics required in modern refining and marketing ecosystems. Its deep understanding of the logistical challenges inherent in the energy sector is evident in how the company structures its services—both for internal support and for independent third-party customers.

Industry stakeholders recognize the company's contributions to the broader energy supply chain, considering it a critical link that enhances the operational throughput of refined products. Its business model reflects a nuanced balance between traditional energy logistics and the evolving needs of modern midstream operations, establishing a comprehensive service offering that is resilient and adaptable.

Operational Strategy and Value Proposition

The operational strategy of Delek Logistics Partners LP is built on the principles of efficiency, reliability, and integrated service delivery. Its infrastructure investment in terminialling and marketing assets is crucial not only for supporting established refining operations but also for creating opportunities in niche segments such as water midstream services. This multi-dimensional approach ensures that all elements of the energy supply chain are seamlessly managed under one portfolio, enhancing overall business stability and operational excellence.

In practice, the company’s model translates to:

  • Enhanced Operational Connectivity: Strategic asset placement and extensive network capabilities allow it to maintain high operational throughput.
  • Integration of Diverse Assets: By combining crude oil logistics, refined products marketing, and water midstream services, the company builds a diversified portfolio that responds to various operational needs.
  • Robust Service Offerings: Focusing on terminalling, storage, and transportation, it creates value through improved supply chain efficiency and flexibility.

Conclusion

In summary, Delek Logistics Partners LP is a well-structured entity that plays an integral role in the energy products logistics market. Its extensive network of assets supports a full range of operational activities, from crude oil gathering to refined product marketing and terminalling services. The company’s recent expansions into water midstream services add a valuable dimension to its portfolio, demonstrating its capability to evolve while maintaining operational reliability. Overall, the company offers a comprehensive, integrated approach to energy logistics that is fundamental to efficient refining and marketing operations. This multifaceted operational model, paired with strategic asset management, positions the company as a critical infrastructure provider in the energy logistics landscape.

Rhea-AI Summary
Delek US Holdings, Inc. (DK) announced financial results for Q4 2023, highlighting a net loss of $164.9 million, adjusted net loss of $93.2 million, and adjusted EBITDA of $60.6 million. Full-year 2023 saw net income of $19.8 million, adjusted net income of $196.6 million, and adjusted EBITDA of $949.7 million. The company returned $35.4 million to shareholders in Q4, reduced debt by $38.2 million, and delivered record throughput rates. The 2024 Capital Program estimates capital expenditures of approximately $330 million, with a focus on refining and logistics.
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Delek US Holdings, Inc. raises quarterly dividend by $0.005 per share to $0.245, payable on March 8, 2024.
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Delek US Holdings, Inc. has been selected by the Department of Energy's Office of Clean Energy Demonstrations for a carbon capture pilot project in the Big Spring refinery, receiving 70% cost-share for up to $95 million of federal funding. The project aims to capture 145,000 metric tons of carbon dioxide per year and reduce health-harming pollutants. Delek will partner with Svante Technologies Inc., IUOE, and USW to execute the project and establish a carbon capture schoolhouse.
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Delek US Holdings, Inc. (NYSE: DK) has announced that it will release its fourth quarter 2023 results on February 27, 2024, before the U.S. stock market opens. A conference call to discuss these results is scheduled for the same day. The live broadcast of the call will be available on the company's website, with an online replay available for 90 days.
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Delek Logistics Partners, LP (NYSE: DKL) is set to release its fourth quarter 2023 results on February 27, 2024, followed by a conference call to discuss the results. The live broadcast and online replay of the conference call will be available on the company's website for 90 days.
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Delek Logistics Partners, LP (DKL) has declared a quarterly cash distribution of $1.055 per common limited partner unit for the fourth quarter of 2023, representing a 1.0 percent increase from the previous quarter and a 3.4 percent increase from the same quarter in 2022. The distribution is payable on February 12, 2024, to unitholders of record on February 5, 2024.
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Delek US Holdings, Inc. appoints Christine Benson Schwartzstein as an independent director, bringing 20 years of experience in risk management, capital markets, and investing. The board now comprises 10 directors, with 8 being independent. Ms. Benson will stand for election at the 2024 annual meeting of stockholders on May 2, 2024. Her expertise is expected to provide instrumental insights as the company executes its strategic initiatives to create value for shareholders.
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Delek Logistics Partners, LP (NYSE: DKL) reported a record quarterly EBITDA of $98.2 million and a distributable cash flow of $61.4 million for the third quarter 2023. The company delivered 43 consecutive quarters of distribution growth, with a recent increase to $1.045/unit. However, net income attributable to all partners decreased to $34.8 million, and cash provided by operating activities also declined.
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Delek US Holdings, Inc. (NYSE: DK) reported a net income of $128.7 million or $1.97 per share for the third quarter of 2023. Adjusted net income was $131.9 million or $2.02 per share, and adjusted EBITDA was $345.1 million. The company also returned $40.2 million to shareholders through dividends and share buybacks and increased their quarterly dividend to $0.24 per share.
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Delek US Holdings, Inc. has approved a $0.05 per share increase in the regular quarterly dividend to $0.24 per share. The dividend will be paid on November 20th, 2023, to shareholders of record on November 13th, 2023.
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FAQ

What is the current stock price of Delek Logistics Partners Lp (DKL)?

The current stock price of Delek Logistics Partners Lp (DKL) is $41.07 as of March 7, 2025.

What is the market cap of Delek Logistics Partners Lp (DKL)?

The market cap of Delek Logistics Partners Lp (DKL) is approximately 2.2B.

What is the core business of Delek Logistics Partners LP?

Delek Logistics Partners LP owns and operates a diverse portfolio of logistics and marketing assets for crude oil and refined products, supporting integrated energy supply chain operations.

How does the company generate revenue?

The company generates revenue primarily through wholesale marketing, terminalling services, storage, and transportation of energy products, along with investments in pipeline joint ventures.

What regions does Delek Logistics primarily serve?

Delek Logistics primarily serves the southeastern United States and West Texas, strategically supporting refining operations and energy logistics in these regions.

How does Delek Logistics support refining operations?

The company provides essential logistics services, including gathering, storage, and terminalling, that directly facilitate the efficient operation of refineries and the distribution of refined products.

What differentiates Delek Logistics from other logistics providers?

Its integrated approach combining crude oil gathering, refined product marketing, and recently expanded water midstream services, along with strategically located assets, sets it apart in the energy logistics sector.

What are the key asset categories managed by the company?

Delek Logistics manages a range of assets including gathering facilities, storage units, transportation networks, terminalling sites, and participates in pipeline joint ventures to support energy movements.
Delek Logistics Partners Lp

NYSE:DKL

DKL Rankings

DKL Stock Data

2.17B
12.45M
67.19%
17.01%
2.07%
Oil & Gas Refining & Marketing
Pipe Lines (no Natural Gas)
Link
United States
BRENTWOOD