Delek Logistics Partners beats revenue estimates, stock rises 2.9%

Published 07/05/2025, 14:24
Delek Logistics Partners beats revenue estimates, stock rises 2.9%

Investing.com -- Delek Logistics Partners, LP (NYSE:DKL) reported first quarter earnings that missed analyst expectations, but revenue that surpassed estimates, sending its stock up 2.9% in response.

The midstream energy company posted adjusted earnings per unit of $0.73 for the first quarter, falling short of the $0.84 analyst consensus. However, revenue came in at $249.93 million, beating the $235.98 million estimate and rising 5.9% YoY.

Delek Logistics reported Adjusted EBITDA of $116.5 million for the quarter, up 15% compared to the same period last year. The company said it remains on track to deliver full year Adjusted EBITDA between $480 million and $520 million.

"Delek Logistics started 2025 on a strong note enhancing our position as a premier midstream provider in the Permian basin," said Avigal Soreq, President of Delek Logistics’ general partner. "We provide the best combination of yield and growth in the midstream sector with a long runway of growth driven by its advantageous position in the Midland and Delaware basins."

The company highlighted several developments, including closing the acquisition of Gravity Water Midstream on January 2nd, which it said is already performing above expectations. Delek Logistics also announced additional intercompany agreements with Delek US, increasing its third-party EBITDA contribution to approximately 80%.

Delek Logistics declared a quarterly cash distribution of $1.110 per common unit for the first quarter, representing a 0.5% increase from the previous quarter and a 3.7% rise YoY.

As of March 31, the company had total debt of approximately $2.15 billion and a leverage ratio of about 4.21x.

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