Delek Logistics Partners, LP DKL
Delek Logistics Partners remains a hold after a mixed Q2 2026 print and a dilutive equity offering. Record quarterly adjusted EBITDA of approximately $144 million (up from $127 million YoY) and a 54th consecutive dividend increase demonstrate operational momentum, and a cluster buy by five insiders at $50/unit on 2026-08-13 is a constructive signal.
However, FY2025 free cash flow was negative at -$30.6 million with capex of $267.8 million, total debt stands at $2.38 billion against negligible equity of $6.1 million, and the just-closed 4.6 million unit offering at $50.00 per unit is dilutive—making it premature to upgrade until FCF recovers and leverage moderates.
What could go wrong
- Negative free cash flow. FY2025 FCF was -$30.6 million as capex surged to $267.8 million from $131.8 million in FY2024; if growth capex does not convert to cash generation, the distribution may become strained.
- Extreme leverage. Total debt of $2.38 billion at FY2025-end dwarfs stockholders' equity of just $6.1 million, and EV/EBITDA of 11.4x is 71% above the peer median of 6.66x.
- Margin compression. Gross margin has declined from 30.6% in FY2021 to 20.9% in FY2025, and operating margin fell from 27.2% to 18.0% over the same period.
- Equity offering dilution. 4.6 million common units were sold at $50.00 per unit in August 2026, increasing unit count and pressuring per-unit metrics.
What would change my mind
Where this comes from: FMP FY2025 annual · FMP FY2025 annual · derived_metrics · MarketBeat news, 2026-08-08. Orin's read on DKL; not advice.
Twelve months actual closes to 2026-09-23 · actual filings
50-day average 200-day average · volume below
On file
All DKL filingsLargest holders · 13F Q2 2026
Money flow| Filer | Position | Of fund |
|---|---|---|
| Mirae Asset Global Etfs Holdings | $84.0M | 0.1% of fund |
| Invesco | $78.1M | 0.0% of fund |
| Morgan Stanley | $27.2M | 0.0% of fund |
| Goldman Sachs Group | $25.3M | 0.0% of fund |
| Jpmorgan Chase & | $16.8M | 0.0% of fund |
| NEOS Investment Management | $8.9M | 0.0% of fund |
15 filers · quarter ended Q2 2026 · positions, not flows
Insiders, last 24 months: 107 Form 4 filings, net $4.7M. Of the 50 on hand, 5 were open-market purchases and 7 sales— the rest are grants, option exercises and tax withholding.
Ask Orin about DKL
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Start 3 free days →Where it trades
| Metric | Now | Own median | Sector |
|---|---|---|---|
| P/E | 19.3× | — | 51.1× |
| EV/EBITDA | 11.6× | — | — |
| P/S | 2.45× | — | — |
What Wall Street published
$56
$52 – $60 · +2% against today's price
- 2 buy or overweight
- 7 hold
- 1 underweight or sell
The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.
Against the companies it is compared to
| Company | Market cap | P/E | EV/EBITDA | Gross | Net | ROE |
|---|---|---|---|---|---|---|
| DKLDelek Logistics Partners, LP | $3B | 19.3× | 11.6× | 17.3% | 12.8% | -936% |
| GELGenesis Energy, L.P. | $2B | 81.2× | 7.9× | 25.3% | 4.3% | 141% |
| KNTKKinetik Holdings Inc. | $4B | 19.5× | 5.4× | 40.1% | 25.3% | -37% |
The median is of the 2 peers listed above and nothing else — check it against the column. This company trades 61.7% below it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.
What it has traded at
What its sector has traded at
Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.
Every estimate on one scale
The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.