| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 52 | 19.8x | 17.8x | Around median | |
Growth | 46 | 30.3% | 7.1% | Around median | |
Quality | 38 | 8.0% | 4.5% | Bottom tier | |
Safety | 22 | 11.7x | 2.6x | Bottom tier | |
Capital Return | 20 | — | 2.12% | Bottom tier | |
Momentum | 82 | 36.1% | 2.9% | Top tier | |
Sentiment | 90 | 5 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Delek Logistics Partners, LP operates through an integrated platform of crude oil, natural gas, and water infrastructure services, with a clear concentration in the Permian Basin, particularly the Delaware and Midland basins. Its business generates earnings from gathering and processing crude oil and natural gas, handling and disposing of produced water, as well as wholesale marketing, terminal operations, storage, transportation, and investments in joint-venture pipeline projects. Management says approximately 80% of the pro forma adjusted EBITDA run rate in fiscal year 2026 will come from third parties, reducing the business's dependence on its sponsor, Delek.
In Q2 of fiscal year 2026, the partnership reported a quarterly record of approximately $144 million in adjusted EBITDA, compared with $127 million in the comparable quarter of fiscal year 2025, while adjusted distributable cash flow was approximately $81 million, with distribution coverage of 1.33 times. Gathering and Processing generated $104 million, Wholesale Marketing and Terminalling $13 million, Storage and Transportation $16 million, and Investments in Pipeline Joint Ventures $21 million. The improvement in Gathering and Processing came from higher utilization of the Libby complex and strong realized margins in the Permian crude oil business, while results from the Wink-to-Webster project supported growth in the contribution from pipeline joint ventures.
The provided accounting data does not include revenue or net income for Q2 of fiscal year 2026, so the financial statements for Q1 of fiscal year 2026 represent the latest available basis for these two items: revenue of $297.5 million, gross profit of $46.9 million, and net income of $32.4 million. This equates to a gross profit margin of approximately 15.8%, compared with approximately 17.2% in Q4 of fiscal year 2025, when revenue was $255.8 million, gross profit was $43.9 million, and net income was $47.3 million. On a trailing twelve-month basis in fiscal year 2026, revenue was $1.1 billion, gross profit was $208.3 million, and net income was $169.8 million.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $56, within a range of $52 to $60, and this average is below the 52-week range high of $61.5 and above its low of $42.35. The consensus reflects a Neutral rating, while the data does not provide a usable price-to-earnings multiple; therefore, growth in operating earnings and distributions should be weighed against leverage of 4.23 times and unit dilution resulting from the August 2026 offering.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
The expansion of the sour gas system at the Libby complex represents the most prominent specific operating driver in the data. Natural gas volumes exceeded 80 million cubic feet per day in Q2 of fiscal year 2026, up from approximately 64 million in Q1 of fiscal year 2026. Management links the next increase in utilization to the completion of Libby 2, the first acid gas injection well, gathering infrastructure, and compression stations during the second half of fiscal year 2026.
The Gathering and Processing segment generated $104 million in adjusted EBITDA, compared with $78 million in Q2 of fiscal year 2025. Wholesale Marketing and Terminalling generated $13 million, Storage and Transportation $16 million, and Investments in Pipeline Joint Ventures $21 million. Total partnership-level adjusted EBITDA reached a record $144 million, compared with $127 million a year earlier.
Liquidity was approximately $1.1 billion at the end of Q2 of fiscal year 2026, following a refinancing that included $800 million of new senior notes due in 2034. Adjusted distributable cash flow was approximately $81 million, with coverage of 1.33 times, and the distribution increased to $1.135 per unit for the fifty-fourth consecutive quarter. In contrast, leverage reached 4.23 times versus a long-term target of 3.5 times, making the realization of returns from the growth program important to sustaining financial improvement.
Management expects a growth program of between $180 million and $190 million to generate up to $75 million in annual EBITDA once fully operational. It identified an expected contribution of $15 million in fiscal year 2026 and $60 million in fiscal year 2027. In Q2 of fiscal year 2026, total capital expenditures were approximately $61 million, including $51 million for growth, concentrated primarily on the acid gas injection well and sour gas gathering infrastructure.
On August 14, 2026, Delek Logistics closed a public offering comprising 4.6 million units at $50 per unit. This represents gross proceeds of approximately $230 million before offering expenses, adding funding to the capital structure. However, the increase in the number of units also means potential dilution of cash flow and distributions on a per-unit basis if the use of proceeds does not increase earnings at a sufficient rate.
The data classifies the insider signal as Strong Buy, with net activity of 750 thousand over three months. The period included five purchases and no sales, with the latest recorded transaction on August 13, 2026. These data support a positive interpretation of internal confidence, but they do not by themselves offset the risks from leverage of 4.23 times or the decline in gross profit margin in Q1 of fiscal year 2026.
