Delek Logistics Partners (NYSE:DKL) Releases Quarterly Earnings Results, Misses Expectations By $0.39 EPS

Key Points

• Delek Logistics Partners missed earnings expectations: Quarterly EPS was $0.54, $0.39 below the $0.93 consensus, although revenue exceeded estimates at $384.76 million versus $293.64 million expected.
• Operations and growth outlook remained strong: Adjusted EBITDA rose to approximately $144 million, guidance of $520 million–$560 million for 2026 was reaffirmed, and record Permian gathering volumes supported future growth investments.
• Distribution increased despite higher leverage: DKL raised its quarterly payout to $1.135 per unit, an 8% annualized yield, while leverage reached 4.23x—above its 3.5x long-term target—and the stock fell 2.9% to $56.41.

Delek Logistics Partners (NYSE:DKL - Get Free Report) released its earnings results on Wednesday. The oil and gas producer reported $0.54 earnings per share for the quarter, missing analysts' consensus estimates of $0.93 by ($0.39), FiscalAI reports. Delek Logistics Partners had a net margin of 16.00% and a return on equity of 1,917.10%. The firm had revenue of $384.76 million for the quarter, compared to analysts' expectations of $293.64 million.

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

• Record quarterly performance: Adjusted EBITDA reached approximately $144 million, up from $127 million a year ago, while full-year 2026 guidance of $520 million–$560 million was reaffirmed. Distributable cash flow coverage remained solid at 1.33x.
• Strong operating momentum across the Permian: Delaware crude gathering volumes reached a record 157,000 barrels per day, produced-water volumes rose to more than 687,000 barrels per day, and gas volumes increased to over 80 MMcf per day. Management expects a further step-up as the Libby sour-gas solution comes online later this year.
• Growth investments are nearing completion: The company is advancing its Libby Gas Complex, first AGI well, sour-gas gathering infrastructure, and compression capacity, with approximately $180 million–$190 million of 2026 growth capital expected to generate up to $75 million of run-rate EBITDA.
• Capital returns and liquidity remained favorable: DKL approved its 54th consecutive distribution increase, raising the quarterly payout to $1.135 per unit, while refinancing activities lowered debt costs and extended maturities. Liquidity was approximately $1.1 billion.
• Some financial pressure remains: Leverage increased modestly to 4.23x due to growth spending, above management’s long-term 3.5x target, and wholesale marketing and terminaling EBITDA fell to approximately $13 million from $23 million a year earlier.

Delek Logistics Partners Trading Down 2.9%

DKL stock traded down $1.67 during midday trading on Wednesday, reaching $56.41. 109,667 shares of the company traded hands, compared to its average volume of 73,263. The firm has a market capitalization of $3.00 billion, a price-to-earnings ratio of 17.85, a P/E/G ratio of 0.63 and a beta of 0.46. Delek Logistics Partners has a 52-week low of $41.72 and a 52-week high of $61.50. The business has a 50 day moving average of $53.35 and a 200-day moving average of $52.17. The company has a debt-to-equity ratio of 386.77, a quick ratio of 0.92 and a current ratio of 0.96.

Delek Logistics Partners Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, August 10th. Shareholders of record on Monday, August 3rd will be paid a dividend of $1.135 per share. The ex-dividend date of this dividend is Monday, August 3rd. This is an increase from Delek Logistics Partners's previous quarterly dividend of $1.13. This represents a $4.54 annualized dividend and a yield of 8.0%. Delek Logistics Partners's payout ratio is presently 143.67%.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on DKL. Mizuho lifted 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. Zacks Research raised shares of Delek Logistics Partners from a "strong sell" rating to a "hold" rating in a report on Monday, June 22nd. UBS Group initiated coverage on shares of Delek Logistics Partners in a report on Thursday, July 16th. They issued a "neutral" rating and a $56.00 target price on the stock. Raymond James Financial reaffirmed an "outperform" rating and set a $60.00 target price on shares of Delek Logistics Partners in a research note on Thursday, April 30th. Finally, Weiss Ratings downgraded shares of Delek Logistics Partners from a "buy (b)" rating to a "buy (b-)" rating in a report on Tuesday, May 12th. Two investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat.com, Delek Logistics Partners has an average rating of "Hold" and a consensus price target of $55.40.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. BNP Paribas Financial Markets purchased a new position in shares of Delek Logistics Partners during the 2nd quarter worth about $50,000. Jones Financial Companies Lllp lifted its stake in Delek Logistics Partners by 303.3% in the first quarter. Jones Financial Companies Lllp now owns 1,210 shares of the oil and gas producer's stock worth $52,000 after purchasing an additional 910 shares during the last quarter. Osaic Holdings Inc. boosted its position in shares of Delek Logistics Partners by 245.8% during the second quarter. Osaic Holdings Inc. now owns 2,687 shares of the oil and gas producer's stock valued at $115,000 after buying an additional 1,910 shares during the period. Bank of America Corp DE grew its stake in shares of Delek Logistics Partners by 1,186.5% during the second quarter. Bank of America Corp DE now owns 4,194 shares of the oil and gas producer's stock valued at $180,000 after buying an additional 3,868 shares during the last quarter. Finally, Jump Financial LLC bought a new position in shares of Delek Logistics Partners during the second quarter valued at approximately $207,000. Institutional investors own 11.75% of the company's stock.

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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