Delek Logistics Partners (NYSE:DKL) Issues Earnings Results, Misses Estimates By $0.35 EPS

Key Points

• Delek Logistics reported Q1 EPS of $0.60, missing estimates by $0.35, but management reaffirmed full-year 2026 Adjusted EBITDA guidance of $520M–$560M after Q1 Adjusted EBITDA of about $132M and DCF coverage of ~1.2x.
• The board approved the 53rd consecutive quarterly distribution increase to $1.13 per unit (annualized $4.52), implying an 8.6% yield, though the payout ratio is a high 137%.
• Operationally the partnership completed its first AGI well and sees produced-water and sour-gas gathering ramping in the next 3–6 months, but liquidity and leverage remain notable — revolver upsized to $1.3B (available ~ $1.1B) while adjusted leverage ended the quarter at 4.05x.

Delek Logistics Partners (NYSE:DKL - Get Free Report) announced its quarterly earnings data on Wednesday. The oil and gas producer reported $0.60 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.95 by ($0.35), Zacks reports. Delek Logistics Partners had a net margin of 17.41% and a return on equity of 461.30%.

Here are the key takeaways from Delek Logistics Partners' conference call:

• DKL reaffirmed full-year 2026 Adjusted EBITDA guidance of $520M–$560M after reporting Q1 Adjusted EBITDA of ~$132M and DCF coverage of ~1.2x, citing strong execution and favorable macro tailwinds.
• Management completed drilling its first AGI well and is finishing sour-gas gathering infrastructure (compressor stations), expecting a utilization ramp in the next 3–6 months and potential need for additional processing capacity.
• The produced-water business is performing above expectations following the Gravity and H2O Midstream acquisitions, and the company is pursuing platform-style gathering, treatment and disposal solutions to capture growing demand.
• The board approved the 53rd consecutive quarterly distribution increase, raising the distribution to $1.13 per unit, underscoring the firm's commitment to returning capital to unitholders.
• While liquidity was increased by upsizing the revolver to $1.3B (available liquidity ~ $1.1B), the partnership exited the quarter with an adjusted leverage ratio of 4.05x, which may limit flexibility or raise investor concern about leverage levels.

Delek Logistics Partners Stock Performance

Shares of DKL traded up $1.78 on Wednesday, reaching $52.64. The company's stock had a trading volume of 57,294 shares, compared to its average volume of 65,890. The company has a debt-to-equity ratio of 386.77, a current ratio of 1.12 and a quick ratio of 1.07. Delek Logistics Partners has a 12-month low of $37.50 and a 12-month high of $55.89. The stock has a market capitalization of $2.81 billion, a P/E ratio of 16.00, a PEG ratio of 0.55 and a beta of 0.54. The stock's 50 day simple moving average is $51.77 and its two-hundred day simple moving average is $48.53.

Delek Logistics Partners Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, May 11th. Investors of record on Monday, May 4th will be issued a $1.13 dividend. The ex-dividend date of this dividend is Monday, May 4th. This is a positive change from Delek Logistics Partners's previous quarterly dividend of $1.13. This represents a $4.52 dividend on an annualized basis and a dividend yield of 8.6%. Delek Logistics Partners's payout ratio is 137.39%.

Institutional Investors Weigh In On Delek Logistics Partners

Several hedge funds and other institutional investors have recently modified their holdings of the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in Delek Logistics Partners by 4.1% during the third quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,584,902 shares of the oil and gas producer's stock valued at $72,176,000 after purchasing an additional 61,840 shares during the period. JPMorgan Chase & Co. raised its stake in shares of Delek Logistics Partners by 1.1% in the fourth quarter. JPMorgan Chase & Co. now owns 431,845 shares of the oil and gas producer's stock worth $19,269,000 after buying an additional 4,879 shares during the period. Raymond James Financial Inc. lifted its position in shares of Delek Logistics Partners by 11.2% during the 3rd quarter. Raymond James Financial Inc. now owns 228,090 shares of the oil and gas producer's stock valued at $10,387,000 after buying an additional 23,054 shares in the last quarter. HRT Financial LP grew its stake in shares of Delek Logistics Partners by 278.3% during the 2nd quarter. HRT Financial LP now owns 74,704 shares of the oil and gas producer's stock valued at $3,208,000 after acquiring an additional 54,959 shares during the period. Finally, American Financial Group Inc. raised its stake in Delek Logistics Partners by 3.0% during the 4th quarter. American Financial Group Inc. now owns 17,000 shares of the oil and gas producer's stock worth $759,000 after acquiring an additional 500 shares during the period. 11.75% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

DKL has been the subject of several analyst reports. Citigroup restated a "neutral" rating and set a $52.00 price target (up from $47.00) on shares of Delek Logistics Partners in a report on Friday, March 6th. 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 target price on the stock. Mizuho increased their target price on Delek Logistics Partners from $45.00 to $52.00 and gave the company a "neutral" rating in a research note on Tuesday, April 21st. Weiss Ratings upgraded shares of Delek Logistics Partners from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Wednesday, February 4th. Finally, Zacks Research downgraded shares of Delek Logistics Partners from a "hold" rating to a "strong sell" rating in a research report on Friday, January 23rd. Two analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Delek Logistics Partners has a consensus rating of "Hold" and an average price target of $54.00.

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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