Welcome to our dedicated page for DELEK LOGISTICS PARTNERS, LP news (Ticker: DKL), a resource for investors and traders seeking the latest updates and insights on DELEK LOGISTICS PARTNERS, LP stock.
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 Logistics Partners (NYSE: DKL) reported a net income of $32.2 million for Q2 2022, down from $43.2 million in Q2 2021. EBITDA stood at $64.5 million, including $6.2 million in acquisition-related expenses. The recent acquisition of 3 Bear expanded revenue sources and geographic reach. The quarterly distribution increased by 4.8% to $0.985/unit, marking 38 consecutive quarters of growth. Total debt was approximately $1.52 billion, with a leverage ratio of 4.7x, within acceptable limits.
Delek Logistics Partners, LP (NYSE: DKL) announced a quarterly cash distribution of $0.985 per common limited partner unit for Q2 2022, a 0.5% increase from Q1 2022 and a 4.8% increase compared to Q2 2021. This marks the 38th consecutive quarter of increased payouts since Q4 2012. The distribution is payable on August 11, 2022, to unitholders of record on August 4, 2022. The company remains optimistic about strong volume growth in the Permian region and benefits from its recent 3Bear acquisition, which enhances revenue diversity.
Delek US Holdings (NYSE: DK) announced it will release its second quarter 2022 financial results on August 4, 2022, before the market opens. A conference call to discuss the results is scheduled for 10:00 a.m. CT on the same day. Investors can access the live broadcast on the company’s website, with a replay available for 90 days. Additionally, Delek Logistics Partners (NYSE: DKL) will hold its earnings call at 9:00 a.m. CT on August 4, 2022. Delek US operates in refining, logistics, and convenience retail with substantial assets across Texas and other states.
Delek Logistics Partners, LP (NYSE: DKL) announced it will release its second quarter 2022 results on August 4, 2022, before market opening. A conference call to discuss the results is set for 9:00 a.m. CT on the same day. Investors can access the call live via DelekLogistics.com, where a replay will be available for 90 days. The release will relate to Delek US Holdings, Inc. (NYSE: DK) earnings call scheduled for 10:00 a.m. CT on August 4, 2022, providing insights relevant to Delek Logistics.
Delek Logistics Partners, LP (NYSE: DKL) has completed the acquisition of 3Bear Delaware Holding for $624.7 million, enhancing its operations in the Delaware Basin, New Mexico. The transaction is projected to yield an investment multiple of approximately 6.25 times the forecasted 2023 EBITDA. The acquisition includes significant infrastructure, such as 485 miles of pipelines and various processing capacities, positioning DKL for growth in natural gas and water services. The firm anticipates increased third-party revenue and the ability to maintain a 5% distribution growth target for 2022.
Delek Logistics Partners reported first quarter net income of $39.5 million, a 9% increase year-over-year. EBITDA rose to $66.0 million, up 12% year-over-year. The company declared a quarterly distribution of $0.98 per unit, reflecting a 6.5% increase from last year. A planned acquisition of 3Bear will enhance scale and revenue diversity, while strong activity in the Permian Gathering business is expected to boost volumes. The distributable cash flow coverage ratio stood at 1.21x with a leverage ratio of 3.3x.
Delek Logistics Partners, LP (NYSE: DKL) announced a quarterly cash distribution of $0.98 per common limited partner unit for Q1 2022, up 0.5% from Q4 2021 and 6.5% from Q1 2021. This marks the 37th consecutive quarter of increasing distributions. The distribution will be payable on May 12, 2022, to unitholders of record on May 5, 2022. The company also highlighted strong industry momentum due to elevated commodity prices and increased demand in its Permian Gathering System, along with a planned acquisition that is expected to boost cash flow ratios.
Delek US Holdings (NYSE: DK) plans to release its first quarter 2022 results on May 3, 2022, before the U.S. market opens. A conference call to discuss these results will occur at 11:00 a.m. CT (12:00 p.m. ET) on the same day. Investors can access the live broadcast via www.DelekUS.com. Additionally, Delek Logistics Partners (NYSE: DKL) will hold its earnings call earlier on May 3, 2022, at 9:30 a.m. CT (10:30 a.m. ET), providing insights relevant to Delek US's logistics segment.
Delek Logistics Partners, LP (NYSE: DKL) plans to release its first quarter 2022 results on May 3, 2022, before market opening. A conference call to discuss the results will take place at 9:30 a.m. CT (10:30 a.m. ET) on the same day. The call will be streamed live on DelekLogistics.com, with a replay available for 90 days. Additionally, Delek US Holdings, Inc. (NYSE: DK) will hold its earnings call at 11:00 a.m. CT on May 3, 2022, providing insights relevant to Delek Logistics.
Delek Logistics Partners (NYSE: DKL) has entered into a definitive agreement to acquire 100% of the equity interests in 3Bear Delaware Holding – NM, LLC for $624.7 million. The acquisition encompasses 3Bear's crude oil and gas gathering, processing, and transportation operations in New Mexico's Delaware Basin. 3Bear manages a robust asset portfolio with significant pipeline and processing capacities. This strategic move is expected to enhance revenue, diversify product offerings, and support cash flow growth. The transaction is anticipated to close mid-2022, subject to regulatory approval.
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