Delek Logistics Partners, L.P. (NYSE:DKL) Announces Dividend Increase - $1.13 Per Share

Key Points

• Dividend: Delek Logistics Partners declared a quarterly dividend of $1.13 per share (ex-dividend and record date May 4, payable May 11), implying an annual yield of about 8.8%.
• Payout sustainability: The partnership's payout ratio is currently 103.4%, meaning it cannot cover the dividend from earnings and is relying on the balance sheet, although analysts forecast ~$4.75 EPS next year which would reduce the payout to roughly 94.7%.
• Recent results and street view: Shares rose ~3.1% after the announcement, but the company recently missed quarterly EPS ($0.88 vs. $1.26 expected); analysts give a mixed outlook with an average consensus rating of "Hold" and a $54 price target.

Delek Logistics Partners, L.P. (NYSE:DKL - Get Free Report) announced a quarterly dividend on Thursday, April 23rd. Shareholders of record on Monday, May 4th will be paid a dividend of 1.13 per share by the oil and gas producer on Monday, May 11th. This represents a c) dividend on an annualized basis and a yield of 8.8%. The ex-dividend date is Monday, May 4th. This is a 0.4% increase from Delek Logistics Partners's previous quarterly dividend of $1.13.

Delek Logistics Partners has increased its dividend by an average of 0.0%per year over the last three years and has raised its dividend annually for the last 1 consecutive years. Delek Logistics Partners has a dividend payout ratio of 103.4% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Research analysts expect Delek Logistics Partners to earn $4.75 per share next year, which means the company should continue to be able to cover its $4.50 annual dividend with an expected future payout ratio of 94.7%.

Delek Logistics Partners Stock Up 3.1%

Shares of NYSE DKL opened at $51.13 on Friday. The firm has a market cap of $2.73 billion, a price-to-earnings ratio of 15.54, a PEG ratio of 0.54 and a beta of 0.54. The company has a quick ratio of 1.07, a current ratio of 1.12 and a debt-to-equity ratio of 386.77. Delek Logistics Partners has a 52-week low of $37.16 and a 52-week high of $55.89. The business's 50 day moving average is $52.02 and its two-hundred day moving average is $48.33.

Delek Logistics Partners (NYSE:DKL - Get Free Report) last announced its earnings results on Friday, February 27th. The oil and gas producer reported $0.88 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.26 by ($0.38). The firm had revenue of $255.77 million during the quarter, compared to analysts' expectations of $283.64 million. Delek Logistics Partners had a net margin of 17.41% and a return on equity of 461.30%. Research analysts predict that Delek Logistics Partners will post 4.11 EPS for the current year.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on DKL shares. Mizuho boosted their price target on shares of Delek Logistics Partners from $45.00 to $52.00 and gave the stock a "neutral" rating in a research note on Tuesday. Zacks Research downgraded shares of Delek Logistics Partners from a "hold" rating to a "strong sell" rating in a research note on Friday, January 23rd. Raymond James Financial restated an "outperform" rating and issued a $55.00 price target on shares of Delek Logistics Partners in a research note on Thursday, March 5th. Citigroup restated a "neutral" rating and issued a $52.00 price target (up from $47.00) on shares of Delek Logistics Partners in a research note on Friday, March 6th. Finally, Truist Financial started coverage on shares of Delek Logistics Partners in a research note on Tuesday, March 24th. They issued a "hold" rating and a $57.00 price target for the company. Two investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $54.00.

Delek Logistics Partners Company Profile

Delek Logistics Partners L.P. NYSE: DKL is a master limited partnership formed in 2011 through contributions of pipeline, terminal and crude oil gathering assets by its sponsor, Delek US Holdings, Inc Headquartered in Brentwood, Tennessee, the partnership is managed by Delek Logistics GP, LLC, an affiliate of Delek US. Delek Logistics Partners owns and operates an integrated network of petroleum pipelines and terminals that support the movement, storage and throughput of crude oil and refined products.

The partnership's core operations include crude oil gathering and processing systems, long-haul pipeline transportation and storage terminal services.

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