Delek Logistics Initiates Cash Tender Offer for 7.125% Notes Due 2028
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy DKL?
Delek Logistics Partners and Delek Logistics Finance have commenced a cash tender offer for any and all of their outstanding 7.125% Senior Notes due 2028, upon the terms and conditions set forth in the Offer to Purchase, dated as of May 4, 2026, and the related Letter of Transmittal and Notice of Guaranteed Delivery. The Offer will expire at 5:00 p.m., New York City time, on May 11, 2026, unless extended or earlier terminated. Holders who validly tender their Notes prior to the Expiration Time, and whose Notes are accepted for purchase, will be entitled to receive the tender consideration equal to $1,001.35 per $1,000.00 principal amount of Notes accepted for purchase. Payments for Notes purchased will include accrued and unpaid interest from and including the last interest payment date up to, but excluding, the applicable settlement date accepted for purchase. Provided the conditions to the Offer, including the Financing Condition, have been satisfied or waived, settlement for Notes tendered prior to the Expiration Time and accepted for purchase is expected to occur on May 14, 2026.
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Analyst Views on DKL
Wall Street analysts forecast DKL stock price to fall
1 Analyst Rating
0 Buy
1 Hold
0 Sell
Hold
Current: 51.020
Low
45.00
Averages
45.00
High
45.00
Current: 51.020
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.
Delek Logistics Partners Prices $800M Senior Notes Offering
- Offering Size: Delek Logistics Partners and its subsidiary priced an offering of $800 million in 6.875% senior notes due 2034 at par, expected to close on May 14, 2026, demonstrating the company's strong capital market capabilities.
- Use of Proceeds: The net proceeds will primarily fund the repurchase or redemption of all 2028 notes via a tender offer, while remaining funds will redeem $400 million of the 8.625% senior notes due 2029 at 104.313% of principal, indicating proactive debt structure optimization.
- Market Reaction: The stock price of Delek Logistics Partners traded about 2% higher during after-market hours on Monday, reflecting a positive market perception of the financing plan, which may enhance investor confidence.
- Performance Outlook: Delek Logistics targets adjusted EBITDA of $520 million to $560 million for 2026, with gas utilization expected to reach capacity in 3-6 months, showcasing confidence in the company's future growth potential.
See More
Delek Logistics Prices $800 Million Senior Notes Offering
- Offering Size and Rate: Delek Logistics announced the pricing of $800 million in 6.875% senior notes, expected to close on May 14, 2026, reflecting the company's strong capital market capabilities and investor confidence.
- Clear Use of Proceeds: The net proceeds from this offering will be utilized to repurchase the outstanding 7.125% senior notes due 2028 and a portion of the 8.625% senior notes due 2029, aimed at optimizing the capital structure and reducing financing costs, thereby enhancing financial flexibility.
- Compliance and Market Positioning: The notes are being offered only to persons reasonably believed to be qualified institutional buyers, in reliance on Rule 144A under the Securities Act, indicating the company's commitment to compliance while broadening its investor base.
- Future Outlook and Risk Disclosure: Delek Logistics' forward-looking statements highlight that actual results may differ due to market risks and uncertainties, emphasizing the company's adaptability and risk management strategies in a dynamic market environment.
See More
DELEK LOGISTICS PARTNERS LP ISSUES $800 MILLION IN 6.875% SENIOR NOTES DUE 2034 AT PAR VALUE
Company Overview: Delek Logistics Partners LP is involved in the logistics sector, focusing on transportation and storage of crude oil and refined products.
Financial Details: The company has issued senior notes worth $800 million with an interest rate of 6.875%, which are due in 2034.
See More
Delek Logistics Q1 2026 Earnings Call Highlights
- Strong Financial Performance: Delek Logistics reported an adjusted EBITDA of $132 million for Q1, up from $123 million year-over-year, demonstrating resilience in profitability despite challenges, with management confidently reaffirming full-year EBITDA guidance of $520 million to $560 million, indicating strong future performance expectations.
- Consistent Dividend Growth: The Board approved the 53rd consecutive quarterly distribution increase, raising the dividend to $1.13 per unit, reflecting the company's ongoing commitment to stable cash flow and shareholder returns, which enhances investor confidence in long-term value.
- Capital Expenditure Plans: The company spent approximately $50 million in capital expenditures during Q1, with $42 million allocated to growth capital primarily for drilling its first AGI well and building new sour gas gathering infrastructure, expected to yield an additional $75 million in EBITDA, showcasing proactive business expansion strategies.
- Market Challenge Management: Despite facing approximately $10 million in headwinds from winter storm impacts, Delek Logistics outperformed expectations, with management highlighting that gas utilization is expected to reach capacity in the next 3 to 6 months, demonstrating the company's capability to navigate market fluctuations and enhance operational efficiency.
See More
Delek U.S. Holdings Shares Surge 15.1% on Strong Earnings
- Earnings Beat: Delek's Q1 revenue rose 0.4% to $2.65 billion, with an adjusted loss per share of $0.98, exceeding market expectations and demonstrating resilience in a high oil price environment.
- Cost-Cutting Initiative: Management raised the annual cash flow savings target from $200 million to $220 million, indicating a strong commitment to enhancing operational efficiency and profitability through self-help measures.
- Refining Profit Surge: The refining segment's adjusted EBITDA soared to $155.3 million, a significant turnaround from a $27 million loss in the previous year, highlighting the company's advantageous position in jet fuel yield.
- Future Growth Potential: Delek's management estimates mid-cycle adjusted EBITDA at approximately $545 million, and with small refinery exemption payments potentially boosting adjusted EBITDA by $375 million to $750 million, the stock price could double from current levels.
See More
Delek Surpasses Earnings Expectations, Stock Rallies
- Earnings Beat: Delek reported first-quarter revenue of $2.65 billion, a 0.4% year-over-year increase, and despite an adjusted loss per share of $0.98, it exceeded Wall Street expectations, showcasing strong performance amid high jet fuel refining margins.
- Cost-Cutting Initiative: Management raised its annual cash flow savings target from $200 million to $220 million, indicating that while undergoing self-help measures, the company is enhancing operational efficiency through a significant cost-cutting program.
- Refining Capacity Advantage: Delek has a higher proportion of its refining capacity dedicated to jet fuel than its peers, and the current high margins have led to a substantial increase in adjusted EBITDA from a $27 million loss in the prior year to $155.3 million, reflecting robust profitability.
- Asset Valuation Assessment: Management believes that with a mid-cycle adjusted EBITDA of approximately $545 million, combined with other assets, Delek's enterprise value should be around $2.45 billion, significantly above its current trading level, suggesting potential for stock price doubling.
See More
Delek Logistics Partners Prices $800M Senior Notes Offering
- Offering Size: Delek Logistics Partners and its subsidiary priced an offering of $800 million in 6.875% senior notes due 2034 at par, expected to close on May 14, 2026, demonstrating the company's strong capital market capabilities.
- Use of Proceeds: The net proceeds will primarily fund the repurchase or redemption of all 2028 notes via a tender offer, while remaining funds will redeem $400 million of the 8.625% senior notes due 2029 at 104.313% of principal, indicating proactive debt structure optimization.
- Market Reaction: The stock price of Delek Logistics Partners traded about 2% higher during after-market hours on Monday, reflecting a positive market perception of the financing plan, which may enhance investor confidence.
- Performance Outlook: Delek Logistics targets adjusted EBITDA of $520 million to $560 million for 2026, with gas utilization expected to reach capacity in 3-6 months, showcasing confidence in the company's future growth potential.
See More
Delek Logistics Prices $800 Million Senior Notes Offering
- Offering Size and Rate: Delek Logistics announced the pricing of $800 million in 6.875% senior notes, expected to close on May 14, 2026, reflecting the company's strong capital market capabilities and investor confidence.
- Clear Use of Proceeds: The net proceeds from this offering will be utilized to repurchase the outstanding 7.125% senior notes due 2028 and a portion of the 8.625% senior notes due 2029, aimed at optimizing the capital structure and reducing financing costs, thereby enhancing financial flexibility.
- Compliance and Market Positioning: The notes are being offered only to persons reasonably believed to be qualified institutional buyers, in reliance on Rule 144A under the Securities Act, indicating the company's commitment to compliance while broadening its investor base.
- Future Outlook and Risk Disclosure: Delek Logistics' forward-looking statements highlight that actual results may differ due to market risks and uncertainties, emphasizing the company's adaptability and risk management strategies in a dynamic market environment.
See More
DELEK LOGISTICS PARTNERS LP ISSUES $800 MILLION IN 6.875% SENIOR NOTES DUE 2034 AT PAR VALUE
Company Overview: Delek Logistics Partners LP is involved in the logistics sector, focusing on transportation and storage of crude oil and refined products.
Financial Details: The company has issued senior notes worth $800 million with an interest rate of 6.875%, which are due in 2034.
See More
Delek Logistics Q1 2026 Earnings Call Highlights
- Strong Financial Performance: Delek Logistics reported an adjusted EBITDA of $132 million for Q1, up from $123 million year-over-year, demonstrating resilience in profitability despite challenges, with management confidently reaffirming full-year EBITDA guidance of $520 million to $560 million, indicating strong future performance expectations.
- Consistent Dividend Growth: The Board approved the 53rd consecutive quarterly distribution increase, raising the dividend to $1.13 per unit, reflecting the company's ongoing commitment to stable cash flow and shareholder returns, which enhances investor confidence in long-term value.
- Capital Expenditure Plans: The company spent approximately $50 million in capital expenditures during Q1, with $42 million allocated to growth capital primarily for drilling its first AGI well and building new sour gas gathering infrastructure, expected to yield an additional $75 million in EBITDA, showcasing proactive business expansion strategies.
- Market Challenge Management: Despite facing approximately $10 million in headwinds from winter storm impacts, Delek Logistics outperformed expectations, with management highlighting that gas utilization is expected to reach capacity in the next 3 to 6 months, demonstrating the company's capability to navigate market fluctuations and enhance operational efficiency.
See More
Delek U.S. Holdings Shares Surge 15.1% on Strong Earnings
- Earnings Beat: Delek's Q1 revenue rose 0.4% to $2.65 billion, with an adjusted loss per share of $0.98, exceeding market expectations and demonstrating resilience in a high oil price environment.
- Cost-Cutting Initiative: Management raised the annual cash flow savings target from $200 million to $220 million, indicating a strong commitment to enhancing operational efficiency and profitability through self-help measures.
- Refining Profit Surge: The refining segment's adjusted EBITDA soared to $155.3 million, a significant turnaround from a $27 million loss in the previous year, highlighting the company's advantageous position in jet fuel yield.
- Future Growth Potential: Delek's management estimates mid-cycle adjusted EBITDA at approximately $545 million, and with small refinery exemption payments potentially boosting adjusted EBITDA by $375 million to $750 million, the stock price could double from current levels.
See More
Delek Surpasses Earnings Expectations, Stock Rallies
- Earnings Beat: Delek reported first-quarter revenue of $2.65 billion, a 0.4% year-over-year increase, and despite an adjusted loss per share of $0.98, it exceeded Wall Street expectations, showcasing strong performance amid high jet fuel refining margins.
- Cost-Cutting Initiative: Management raised its annual cash flow savings target from $200 million to $220 million, indicating that while undergoing self-help measures, the company is enhancing operational efficiency through a significant cost-cutting program.
- Refining Capacity Advantage: Delek has a higher proportion of its refining capacity dedicated to jet fuel than its peers, and the current high margins have led to a substantial increase in adjusted EBITDA from a $27 million loss in the prior year to $155.3 million, reflecting robust profitability.
- Asset Valuation Assessment: Management believes that with a mid-cycle adjusted EBITDA of approximately $545 million, combined with other assets, Delek's enterprise value should be around $2.45 billion, significantly above its current trading level, suggesting potential for stock price doubling.
See More
