Delek Logistics increases annual EBITDA forecast to $500M–$520M with Libby 2 plant expansion.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 07 2025
0mins
Source: SeekingAlpha
Record Financial Performance: Delek Logistics Partners reported a record quarterly adjusted EBITDA of approximately $136 million, raising its full year EBITDA guidance to the upper end of the $500 million to $520 million range.
Strategic Developments: The successful commissioning of the Libby 2 plant and recent acquisitions have enhanced DKL's capabilities in acid gas injection and sour gas handling, positioning the company for further growth.
Strong Cash Flow and Distribution: The company achieved a distributable cash flow of $74 million with a coverage ratio of 1.24x, and the Board approved a 51st consecutive increase in quarterly distributions to $1.12 per unit.
Positive Outlook and Analyst Sentiment: Management expressed confidence in future growth and operational execution, while analysts maintained a neutral to slightly positive tone, focusing on sustainability and competitive positioning.
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Analyst Views on DKL
Wall Street analysts forecast DKL stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for DKL is 45.00 USD with a low forecast of 45.00 USD and a high forecast of 45.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Analyst Rating
0 Buy
1 Hold
0 Sell
Hold
Current: 50.210
Low
45.00
Averages
45.00
High
45.00
Current: 50.210
Low
45.00
Averages
45.00
High
45.00
About DKL
Delek Logistics Partners, LP is a midstream energy master limited partnership, which provides gathering, pipeline and other transportation services for crude oil and natural gas customers, storage, wholesale marketing and terminalling services. Its segments include gathering and processing; wholesale marketing and terminalling; storage and transportation, and investment in pipeline joint ventures. The gathering and processing segment consists of Midland Gathering Assets, Midland Water Gathering Assets and Delaware Gathering Assets. The marketing and terminalling segment provides wholesale marketing and terminalling services to Delek Holdings’ refining operations and to independent third parties. The storage and transportation segment consists of tanks, offloading facilities, trucks and ancillary assets, which provide crude oil, intermediate and refined products transportation and storage services. Its operations also include integrated full-cycle water systems in the Permian Basin.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Energy Midstream Firms Show Significant Dividend Growth
- Delek Logistics Dividend Increase: Delek Logistics Partners declared a quarterly distribution of $1.125 per unit, a 0.4% increase from the previous quarter, extending its distribution growth streak to 52 consecutive quarters with a current yield of 9%, reflecting stable cash flows and financial flexibility.
- Hess Midstream Steady Growth: Hess Midstream's quarterly cash distribution is $0.7641 per share, a 1.2% increase from the prior quarter, with a cumulative dividend growth of 65% since 2021, and an expected annual increase of at least 5% through 2028, ensuring predictable cash flows.
- Plains All American Dividend Boost: Plains All American Pipeline announced a quarterly distribution of $0.4175 per unit, a 10% increase from its prior level, with a compound annual growth rate of 21% over the last four years, currently yielding 8.5%, demonstrating financial flexibility and ongoing investment capacity.
- High Yields Attract Investors: With yields between 8% and 9%, Delek Logistics, Hess Midstream, and Plains All American Pipeline regularly increase their payouts, making them appealing options for investors seeking stable passive income streams.
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Delek Logistics Extends Distribution Growth to 52 Quarters
- Delek Logistics Dividend Growth: Delek Logistics recently declared a quarterly distribution of $1.125 per unit (annualized $4.50), reflecting a 0.4% increase from the previous quarter, extending its distribution growth streak to 52 consecutive quarters while raising its yield to 9%.
- Hess Midstream Stable Cash Flow: Hess Midstream's quarterly cash distribution is $0.7641 per share, a 1.2% increase from the prior quarter, having raised its dividend by 65% since 2021, and expects at least 5% annual growth through 2028, ensuring predictable future cash flows.
- Plains All American Pipeline High Growth: Plains All American Pipeline announced a quarterly distribution of $0.4175 per unit (annualized $1.67), a 10% increase from the prior level, with a 21% compound annual growth rate over the last four years, pushing its yield to 8.5%.
- Energy Midstream Investment Opportunities: Delek Logistics, Hess Midstream, and Plains All American Pipeline currently offer yields between 8% and 9%, with all three companies regularly increasing their distributions, making them attractive options for investors seeking lucrative passive income streams.
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