Delek Logistics Partners, L.P. (NYSE:DKL) Announces Dividend Increase - $1.14 Per Share

Key Points

• Delek Logistics Partners raised its quarterly dividend by 0.4% to $1.14 per share, equivalent to $4.56 annually and an 8.1% yield. Shareholders of record November 3 will be paid on November 10.
• The partnership’s current payout ratio is elevated at 104.8%, meaning earnings do not fully cover the dividend. Analysts expect improved coverage next year, with an estimated payout ratio of 70.3%.
• DKL shares opened at $56.14, while the company’s latest quarterly earnings of $0.54 per share missed the $0.93 consensus estimate despite revenue exceeding expectations.

Delek Logistics Partners, L.P. (NYSE:DKL - Get Free Report) announced a quarterly dividend on Friday, October 23rd. Shareholders of record on Tuesday, November 3rd will be paid a dividend of $1.14 per share by the oil and gas producer on Tuesday, November 10th. This represents a $4.56 annualized dividend and a yield of 8.1%. The ex-dividend date of this dividend is Tuesday, November 3rd. This is a 0.4% increase from Delek Logistics Partners's previous quarterly dividend of $1.1350.

Delek Logistics Partners has a payout ratio of 104.8% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities analysts expect Delek Logistics Partners to earn $6.49 per share next year, which means the company should continue to be able to cover its $4.56 annual dividend with an expected future payout ratio of 70.3%.

Delek Logistics Partners Stock Down 1.1%

DKL opened at $56.14 on Friday. The company has a market capitalization of $3.21 billion, a PE ratio of 19.56 and a beta of 0.47. The firm has a 50-day simple moving average of $55.77 and a two-hundred day simple moving average of $53.29. Delek Logistics Partners has a 52 week low of $42.82 and a 52 week high of $61.50.

Delek Logistics Partners (NYSE:DKL - Get Free Report) last issued its earnings results on Wednesday, August 5th. The oil and gas producer reported $0.54 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.93 by ($0.39). The firm had revenue of $384.76 million during the quarter, compared to the consensus estimate of $293.64 million. Delek Logistics Partners had a negative return on equity of 935.80% and a net margin of 12.85%. As a group, sell-side analysts expect that Delek Logistics Partners will post 3.94 earnings per share for the current year.

About Delek Logistics Partners

Delek Logistics Partners, L.P. NYSE: DKL is a master limited partnership that owns and operates midstream energy infrastructure and provides logistics services for crude oil, refined products and other hydrocarbons. The partnership is sponsored by Delek US Holdings, Inc, an independent refiner and marketer of petroleum products.

Delek Logistics' operations include crude oil gathering, transportation and storage; refined products transportation and terminalling; wholesale marketing; rail and truck services; and other logistics activities.

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