DKL Earnings Prediction
The chart below shows how DKL performed 10 days before and after its earnings report, based on data from the past quarters. Typically, DKL sees a +0.36% change in stock price 10 days leading up to the earnings, and a +4.42% change 10 days following the report. On the earnings day itself, the stock moves by -0.78%. This data can give you a slight idea of what to expect for the next quarter's release.
DKL Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
214.07M
-22.39%
-19.11%
Gross Margin
22.24%
-9.78%
-19.27%
Operating Margin
14.80%
-34.22%
-41.29%
Net Margin
15.73%
24.54%
1.35%
EPS
0.71
-11.25%
-18.39%
No Data Available
DKL Earnings Analysis
DELEK LOGISTICS PARTNERS, LP Corporation (DKL.N) Earnings Conference Call
Positive
Record Adjusted EBITDA Growth: 1. Record Adjusted EBITDA: Delek Logistics reported approximately $107 million in quarterly adjusted EBITDA, an increase from $98.2 million in the same period of 2023.
Distributable Cash Flow Growth: 2. Increased Distributable Cash Flow: The distributable cash flow as adjusted was $62 million, with a DCF coverage ratio of approximately 1.1x, expected to improve to above 1.3x by the second half of 2025.
Gathering and Processing Growth: 3. Growth in Gathering and Processing Segment: Adjusted EBITDA for the Gathering and Processing segment rose to $55 million, up from $52.9 million in Q3 2023, driven by higher throughput from Permian Basin assets.
Pipeline Joint Venture Growth: 4. Enhanced Pipeline Contributions: The investment in the pipeline joint venture segment contributed $15.6 million this quarter, compared to $9.3 million in the third quarter of 2023, reflecting strong performance from the Wink to Webster pipeline.
Quarterly Distribution Increase: 5. Increased Quarterly Distribution: The Board of Directors approved an increase in the quarterly distribution to $1.10 per unit, continuing a strong track record of distribution growth.
Negative
EBITDA Decline in Wholesale: Wholesale Marketing and Terminalling adjusted EBITDA was $24.7 million compared with $28.1 million in prior year, indicating a decrease of $3.4 million due to lower wholesale margins.
Liquidity Concerns Ahead: The DCF coverage ratio was approximately 1.1x, below the long-term objective of 1.3x, indicating potential liquidity concerns moving forward.
Capital Expenditures Concerns: Capital expenditures for the third quarter were $65.2 million, with a significant portion allocated to the new gas processing plant, raising concerns about cash flow management amidst high spending.
Adjusted EBITDA Performance: The Gathering and Processing segment's adjusted EBITDA increased only slightly to $55 million from $52.9 million, suggesting limited growth in this critical area despite increased throughput.
Volume Decline and Stagnation: Midland’s volumes took a step lower this quarter, with expectations to only reach around $190 million by the end of the year, indicating potential stagnation in growth.
DKL FAQs
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DKL Earning Call Sentiment
Delek Logistics Partners, LP Common Units (DKL) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
DKL.N
-0.47%Positive
The earnings call highlights strong financial performance with increased EBITDA and distributable cash flow, alongside strategic growth initiatives like the gas processing plant and acquisition. The positive sentiment is bolstered by increased quarterly distributions and improved leverage. The Q&A section reflects management's confidence in ongoing projects, despite some unclear responses. Given the small-cap nature, the stock is likely to react positively, especially with optimistic guidance and strategic growth plans, resulting in a predicted stock price increase of 2% to 8% over the next two weeks.
