Delek Logistics Partners, L.P. (NYSE:DKL) Increases Dividend to $1.14 Per Share

Key Points

• Delek Logistics Partners raised its quarterly dividend to $1.135 per share, a 0.4% increase from the prior $1.13 payment. The dividend is payable on August 10 to shareholders of record as of August 3, and implies a 7.9% yield.
• The company’s payout ratio is currently 103.9%, meaning the dividend is not fully covered by earnings right now. However, analysts expect improved earnings next year that could bring the payout ratio down to 94.2%.
• DKL shares rose 3.9% and recently traded near their 52-week high of $57.72. The stock has also seen institutional buying, with several funds adding to positions in recent quarters.

Delek Logistics Partners, L.P. (NYSE:DKL - Get Free Report) declared a quarterly dividend on Wednesday, July 22nd. Investors of record on Monday, August 3rd will be paid a dividend of 1.135 per share by the oil and gas producer on Monday, August 10th. This represents a c) annualized dividend and a dividend yield of 7.9%. The ex-dividend date of this dividend is Monday, August 3rd. This is a 0.4% increase from Delek Logistics Partners's previous quarterly dividend of $1.13.

Delek Logistics Partners has increased its dividend payment by an average of 0.0%per year over the last three years and has increased its dividend every year for the last 1 years. Delek Logistics Partners has a payout ratio of 103.9% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities research analysts expect Delek Logistics Partners to earn $4.80 per share next year, which means the company should continue to be able to cover its $4.52 annual dividend with an expected future payout ratio of 94.2%.

Delek Logistics Partners Stock Up 3.9%

Shares of DKL opened at $57.38 on Thursday. The firm has a market cap of $3.05 billion, a P/E ratio of 18.16, a PEG ratio of 0.64 and a beta of 0.47. Delek Logistics Partners has a 12 month low of $41.72 and a 12 month high of $57.72. The stock's 50 day moving average is $52.16 and its two-hundred day moving average is $51.47. The company has a current ratio of 0.96, a quick ratio of 0.92 and a debt-to-equity ratio of 386.77.

Delek Logistics Partners (NYSE:DKL - Get Free Report) last released its earnings results on Wednesday, April 29th. The oil and gas producer reported $0.60 EPS for the quarter, missing analysts' consensus estimates of $0.80 by ($0.20). Delek Logistics Partners had a return on equity of 1,917.10% and a net margin of 16.00%.The company had revenue of $297.47 million for the quarter, compared to analysts' expectations of $239.87 million. Analysts predict that Delek Logistics Partners will post 3.86 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in DKL. Focus Financial Network Inc. boosted its holdings in Delek Logistics Partners by 2.2% in the second quarter. Focus Financial Network Inc. now owns 13,724 shares of the oil and gas producer's stock valued at $707,000 after purchasing an additional 300 shares during the period. Avior Wealth Management LLC purchased a new stake in Delek Logistics Partners during the 2nd quarter worth about $206,000. Infrastructure Capital Advisors LLC increased its holdings in Delek Logistics Partners by 2.4% during the 1st quarter. Infrastructure Capital Advisors LLC now owns 156,476 shares of the oil and gas producer's stock worth $7,786,000 after purchasing an additional 3,596 shares during the period. Gateway Wealth Partners LLC acquired a new stake in Delek Logistics Partners in the 1st quarter valued at about $222,000. Finally, State of Wyoming acquired a new stake in Delek Logistics Partners in the 1st quarter valued at about $67,000. 11.75% of the stock is currently owned by institutional investors and hedge funds.

About Delek Logistics Partners

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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