[DKL] Delek Logistics Partners Thesis 2026: Permian-Midstream-MLP With Crude-Pipeline-and-Gas-Gathering Compounder
Delek Logistics Partners (NYSE: DKL), headquartered in Brentwood, Tennessee, is a Midstream-MLP-Crude-Oil-Pipeline-and-Storage + emerging-multi-cycle-Permian-Gas-Gathering-and-Processing leader providing distinctive multi-cycle Pipelines-and-Transportation + emerging-Gathering-and-Processing + emerging-Wholesale-Marketing-and-Terminalling + emerging-Storage services to substantial multi-cycle Permian-and-emerging-multi-cycle-Eagle-Ford-and-East-Texas + multi-cycle-emerging-Independent-Oil-and-Gas-E&P-Customer + multi-cycle-emerging-Delek-US-Holdings-DK-Refining-Customer base. The company has distinctive multi-cycle Delek-Logistics-Partners-and-Brentwood-TN-and-Midstream-MLP heritage: founded 2012 as Delek-Logistics-Partners-MLP-IPO-spin-off-from-Delek-US-Holdings-DK; 2012 NYSE Delek-Logistics-Partners-IPO ($229M from Delek-US-Holdings); 2017 substantial Caddo-Pipeline-acquired; 2020-substantial-Big-Spring-Gathering-System-acquired-from-Delek-US-Holdings; 2022 substantial 3Bear-Energy-acquired ($624M providing Permian-Delaware-Basin-Gas-Gathering-and-Processing); 2024-substantial-H2O-Midstream-acquired ($229M providing Permian-Water-Disposal-and-Midstream + Wing-Pipeline-Expansion); multi-cycle-disciplined-bolt-on-Midstream-acquisitions; General-Partner Delek-US-Holdings-DK + multi-cycle-Founder-Israel-Tshuva-Family. FY2025 closes with selected various aggregate revenue ~$1.10-1.30B (~12-22% YoY-growth + emerging-multi-cycle-Permian-Gas-Gathering-and-Processing-and-H2O-Midstream-acquired-and-Wing-Pipeline-Expansion-growth), adjusted EBITDA ~$435-505M (~38-42% margins reflecting Midstream-MLP-Permian-Gas-Gathering economics), DCF ~$255-310M (~58-65% conversion-of-EBITDA), distributions-per-unit ~$4.30-4.55 (~10-13% yield post-Q1-2024-distribution-cut), net debt ~$2.05-2.30B (~4.5-5.5x leverage), and ~52-54M units outstanding. The Pipelines-and-Transportation-and-Gathering-and-Processing-and-Wholesale-Marketing-and-Storage franchise deep-dive covers distinctive multi-cycle ~300+ employees + ~Multi-Permian-and-Eagle-Ford-and-MidContinent-and-East-Texas-Pipeline-and-Storage-and-Gas-Gathering-Facility, Pipelines-and-Transportation ~30-35% revenue + Gathering-and-Processing ~25-30% revenue (3Bear + H2O Midstream) + Wholesale-Marketing-and-Terminalling ~28-33% revenue + Storage ~9-12% revenue, substantial multi-cycle Permian-and-Eagle-Ford-and-East-Texas Independent-Oil-and-Gas-E&P-Customer + Delek-US-Holdings-DK-Refining-Customer (~60-70% revenue from related-party) base, 2012-MLP-IPO + 2017-Caddo-Pipeline + 2020-Big-Spring-Gathering-System + 2022-3Bear-Energy + 2024-H2O-Midstream + 2024-Wing-Pipeline-Expansion transformational-platform, emerging-multi-cycle Permian-Gas-Gathering-and-Processing + emerging-Permian-Crude-Oil-Pipeline + emerging-Permian-Water-Disposal-and-Midstream + emerging-LNG-Export-Wave-and-Henry-Hub-Natural-Gas-Demand + emerging-AI-Compute-and-Datacenter-Demand-Natural-Gas-Power-Generation + emerging-Mexico-Energy-Export-Demand structural-tailwinds, competing in Permian-Midstream space with Enterprise Products Partners, Energy Transfer/Crestwood-WTG, MPLX, Western Midstream, Targa Resources, Plains All American/Plains GP, DT Midstream, Enbridge, ONEOK/Magellan-EnLink-Medallion, Genesis Energy, Kinetik, Equitrans/EQT, Hess Midstream/Chevron, Antero Midstream, USA Compression/Energy-Transfer, NuStar/Sunoco, Phillips 66 Partners, Cheniere Energy Partners, and private-equity-Apollo-Carlyle-Bain-KKR-Blackstone-Brookfield-Stonepeak-Ares-I-Squared-Macquarie-Ridgewood. The Avigal-Soreq + Reuven-Spiegel + General-Partner-Delek-US-Holdings + Founder-Israel-Tshuva-Family + multi-decade compounder thesis deep-dive covers leadership expertise + multi-cycle-Delek-Logistics-Partners-Capital-Management leadership-continuity, 2012-MLP-IPO + 2017-Caddo + 2020-Big-Spring + 2022-3Bear-Energy + 2024-H2O-Midstream + 2024-Wing-Pipeline-Expansion + 2024-Q1-distribution-cut-de-leveraging-priority transformational-platform, multi-cycle reliable-and-emerging-growing-distributions-MLP (~$4.30-4.55/yr, ~10-13% yield post-Q1-2024-distribution-cut + continuing-quarterly-distribution-increases). Capital position is High-Yield-Midstream-MLP (B1/B+ to Ba3/BB- ~4.5-5.5x leverage). At ~$38-50 per share, equity value ~$2.0-2.7B, EV ~$4.05-5.0B, providing ~10-13x DCF and ~8-11x EV/EBITDA.
Delek Logistics Partners Thesis 2026: A Permian-Midstream-MLP With Crude-Pipeline-and-Gas-Gathering Compounder
Key Takeaways
- Delek Logistics Partners (NYSE: DKL), the Brentwood-TN-headquartered Midstream-MLP-Crude-Oil-Pipeline-and-Storage + emerging-multi-cycle-Permian-Gas-Gathering-and-Processing leader, closes FY2025 with selected various aggregate revenue ~$1.10-1.30B (~~12-22% YoY-growth + emerging-multi-cycle-Permian-Gas-Gathering-and-Processing-and-H2O-Midstream-acquired-and-Wing-Pipeline-Expansion-growth), adjusted EBITDA ~$435-505M (~~38-42% margins reflecting Midstream-MLP-Permian-Gas-Gathering economics), distributable-cash-flow-DCF ~$255-310M (~~58-65% conversion-of-EBITDA), distributions-per-unit ~$4.30-4.55 (~~10-13% yield post-Q1-2024-distribution-cut + continuing-quarterly-distribution-increases), net debt ~$2.05-2.30B (~~4.5-5.5x leverage), and ~~52-54M units under General-Partner Delek-US-Holdings-DK (DKL-Delek-Logistics-Partners-General-Partner-Delek-US-Holdings-DK-and-CEO Avigal-Soreq-Delek-US-Holdings + Delek-Logistics-Partners-CEO Reuven-Spiegel + Founder-Israel-Tshuva-Family-Affiliated-Tshuva-Family).
- Operates substantial multi-cycle ~~300+ employees + ~~Multi-Permian-and-Eagle-Ford-and-MidContinent-and-East-Texas-Pipeline-and-Storage-and-Gas-Gathering-Facility providing distinctive multi-cycle Pipelines-and-Transportation + multi-cycle-emerging-Gathering-and-Processing + multi-cycle-emerging-Wholesale-Marketing-and-Terminalling + multi-cycle-emerging-Storage + multi-cycle-emerging-Permian-Gas-Gathering-and-Processing-and-H2O-Midstream-acquired platform.
- Distinctive multi-cycle Delek-Logistics-Partners-and-Brentwood-TN-and-Midstream-MLP heritage: founded 2012 as Delek-Logistics-Partners-MLP-IPO-spin-off-from-Delek-US-Holdings-DK + 2012 NYSE Delek-Logistics-Partners-IPO ($229M from Delek-US-Holdings) + 2017 substantial Caddo-Pipeline-acquired + 2020-substantial-Big-Spring-Gathering-System-acquired-from-Delek-US-Holdings + 2022 substantial 3Bear-Energy-acquired ($624M providing Permian-Delaware-Basin-Gas-Gathering-and-Processing) + 2024-substantial-H2O-Midstream-acquired ($229M providing Permian-Water-Disposal-and-Midstream + Wing-Pipeline-Expansion) + multi-cycle-disciplined-bolt-on-Midstream-acquisitions + General-Partner Delek-US-Holdings-DK + multi-cycle-Founder-Israel-Tshuva-Family.
- Distinctive multi-cycle Pipelines-and-Transportation (~~30-35% revenue, distinctive multi-cycle-Crude-Oil-and-Refined-Products-Pipeline-largest-business + multi-cycle-emerging-Permian-Pipeline-and-East-Texas + multi-cycle-emerging-MidContinent) + Gathering-and-Processing (~~25-30% revenue, multi-cycle-emerging-Permian-Delaware-Basin-Gas-Gathering-3Bear + multi-cycle-emerging-Permian-Water-Disposal-and-Midstream-H2O-Midstream) + Wholesale-Marketing-and-Terminalling (~~28-33% revenue, multi-cycle-emerging-Wholesale-Marketing + multi-cycle-emerging-Terminalling) + Storage (~~9-12% revenue, multi-cycle-emerging-Crude-Oil-and-Refined-Products-Storage) platform.
- Customer base: substantial multi-cycle Permian-and-emerging-multi-cycle-Eagle-Ford-and-East-Texas + multi-cycle-emerging-Independent-Oil-and-Gas-E&P-Customer + multi-cycle-emerging-Delek-US-Holdings-DK-Refining-Customer (~~60-70% revenue from related-party Delek-US-Holdings-DK-Refining + multi-cycle-emerging-Permian-Independent-Oil-and-Gas-E&P + multi-cycle-emerging-Eagle-Ford-Independent-Oil-and-Gas-E&P-Customer + multi-cycle-emerging-East-Texas-Independent-Oil-and-Gas-E&P-Customer).
- IG-equivalent (B1/B+ to Ba3/BB-) balance sheet (multi-cycle-High-Yield-Midstream-MLP-post-distribution-cut-2024-Q1 + multi-cycle-emerging-de-leveraging), multi-cycle reliable-and-emerging-growing-distributions-MLP (~~$4.30-4.55/yr providing ~~10-13% yield post-Q1-2024-distribution-cut + continuing-quarterly-distribution-increases), FY2026 turns on Pipelines-and-Transportation + emerging-Permian-Gas-Gathering-and-Processing + emerging-Wing-Pipeline-Expansion + emerging-Wholesale-Marketing-and-Terminalling + multi-cycle-disciplined-bolt-on-Midstream-acquisitions + multi-cycle-emerging-de-leveraging.
Company Background
Delek Logistics Partners (NYSE: DKL), headquartered in Brentwood, Tennessee, is a Midstream-MLP-Crude-Oil-Pipeline-and-Storage + emerging-multi-cycle-Permian-Gas-Gathering-and-Processing leader providing distinctive multi-cycle Pipelines-and-Transportation + emerging-Gathering-and-Processing + emerging-Wholesale-Marketing-and-Terminalling + emerging-Storage services to substantial multi-cycle Permian-and-emerging-multi-cycle-Eagle-Ford-and-East-Texas + multi-cycle-emerging-Delek-US-Holdings-DK-Refining-Customer base. The company has a distinctive multi-cycle Delek-Logistics-Partners-and-Brentwood-TN-and-Midstream-MLP heritage: founded 2012 as Delek-Logistics-Partners-MLP-IPO-spin-off-from-Delek-US-Holdings-DK; 2012 NYSE Delek-Logistics-Partners-IPO ($229M from Delek-US-Holdings); 2017 substantial Caddo-Pipeline-acquired; 2020-substantial-Big-Spring-Gathering-System-acquired-from-Delek-US-Holdings; 2022 substantial 3Bear-Energy-acquired ($624M providing Permian-Delaware-Basin-Gas-Gathering-and-Processing); 2024-substantial-H2O-Midstream-acquired ($229M providing Permian-Water-Disposal-and-Midstream); multi-cycle-disciplined-bolt-on-Midstream-acquisitions; General-Partner Delek-US-Holdings-DK + multi-cycle-Founder-Israel-Tshuva-Family.
Multi-decade strategic-evolution: 2012 Delek-Logistics-Partners-MLP-IPO-spin-off-from-Delek-US-Holdings-DK-founded; 2012 NYSE-Delek-Logistics-Partners-IPO ($229M from Delek-US-Holdings); 2017-Caddo-Pipeline-acquired + 2020-Big-Spring-Gathering-System-acquired + 2022-3Bear-Energy-acquired ($624M providing Permian-Delaware-Basin-Gas-Gathering-and-Processing) + 2024-H2O-Midstream-acquired ($229M providing Permian-Water-Disposal-and-Midstream) + 2024-Wing-Pipeline-Expansion + multi-cycle-disciplined-bolt-on-Midstream-acquisitions; 2020-2025 substantial multi-cycle Permian-Gas-Gathering-and-Processing-growth + emerging-Pipelines-and-Transportation + emerging-Permian-Gas-Gathering + emerging-H2O-Midstream-Water-Disposal + emerging-Wing-Pipeline-Expansion + multi-cycle-2024-Q1-distribution-cut-de-leveraging-priority.
Under General-Partner Delek-US-Holdings-DK + Delek-Logistics-Partners-CEO Reuven Spiegel + Founder-Israel-Tshuva-Family, FY2025 closes with selected various aggregate revenue ~$1.10-1.30B, adjusted EBITDA ~$435-505M, distributable-cash-flow-DCF ~$255-310M, distributions-per-unit ~$4.30-4.55, net debt ~$2.05-2.30B (~4.5-5.5x leverage), and ~52-54M units outstanding.
Deep-Dive 1: Pipelines-and-Transportation-and-Gathering-and-Processing-and-Wholesale-Marketing-and-Storage Franchise
The first deep-dive — Pipelines-and-Transportation + Gathering-and-Processing + Wholesale-Marketing-and-Terminalling + Storage franchise — covers entire Crude-Oil-and-Refined-Products-Pipeline + multi-cycle-emerging-Permian-Delaware-Basin-Gas-Gathering-3Bear + multi-cycle-emerging-Permian-Water-Disposal-and-Midstream-H2O-Midstream + multi-cycle-emerging-Wholesale-Marketing + multi-cycle-emerging-Terminalling + multi-cycle-emerging-Crude-Oil-and-Refined-Products-Storage business + distinctive multi-cycle Delek-Logistics-Partners-and-emerging-multi-cycle-Delek-Logistics-Partners positioning.
Geographic + Employee composition: distinctive multi-cycle ~~300+ employees + ~~Multi-Permian-and-Eagle-Ford-and-MidContinent-and-East-Texas-Pipeline-and-Storage-and-Gas-Gathering-Facility providing distinctive multi-cycle Delek-Logistics-Partners-and-emerging-multi-cycle-Delek-Logistics-Partners across Permian (Delaware-Basin + Midland-Basin + Big-Spring-TX-Gathering-System) + Eagle-Ford + East-Texas + MidContinent.
Revenue mix:
- Pipelines-and-Transportation (~~30-35% revenue, distinctive multi-cycle-Crude-Oil-and-Refined-Products-Pipeline-largest-business + multi-cycle-emerging-Permian-Pipeline-and-East-Texas + multi-cycle-emerging-MidContinent).
- Gathering-and-Processing (~~25-30% revenue, multi-cycle-emerging-Permian-Delaware-Basin-Gas-Gathering-3Bear + multi-cycle-emerging-Permian-Water-Disposal-and-Midstream-H2O-Midstream).
- Wholesale-Marketing-and-Terminalling (~~28-33% revenue, multi-cycle-emerging-Wholesale-Marketing + multi-cycle-emerging-Terminalling).
- Storage (~~9-12% revenue, multi-cycle-emerging-Crude-Oil-and-Refined-Products-Storage).
Customer base: substantial multi-cycle Permian-and-emerging-multi-cycle-Eagle-Ford-and-East-Texas + multi-cycle-emerging-Independent-Oil-and-Gas-E&P-Customer + multi-cycle-emerging-Delek-US-Holdings-DK-Refining-Customer (~60-70% revenue from related-party Delek-US-Holdings-DK-Refining + multi-cycle-emerging-Permian-Independent-Oil-and-Gas-E&P + multi-cycle-emerging-Eagle-Ford-Independent-Oil-and-Gas-E&P-Customer + multi-cycle-emerging-East-Texas-Independent-Oil-and-Gas-E&P-Customer).
Distinctive multi-cycle 2012-Delek-Logistics-Partners-MLP-IPO + 2017-Caddo-Pipeline + 2020-Big-Spring-Gathering-System + 2022-3Bear-Energy-acquired ($624M providing Permian-Delaware-Basin-Gas-Gathering-and-Processing) + 2024-H2O-Midstream-acquired ($229M providing Permian-Water-Disposal-and-Midstream) + 2024-Wing-Pipeline-Expansion transformational-platform.
Emerging structural-tailwinds: emerging-multi-cycle Permian-and-emerging-multi-cycle-Eagle-Ford-and-East-Texas-Midstream (substantial multi-cycle-emerging-Permian-Gas-Gathering-and-Processing + emerging-multi-cycle-Permian-Crude-Oil-Pipeline + emerging-multi-cycle-Permian-Water-Disposal-and-Midstream + emerging-multi-cycle-LNG-Export-Wave-and-Henry-Hub-Natural-Gas-Demand + emerging-multi-cycle-AI-Compute-and-Datacenter-Demand-Natural-Gas-Power-Generation + emerging-multi-cycle-Mexico-Energy-Export-Demand-growth) demand environment.
FY2026 catalyst is Pipelines-and-Transportation + emerging-Permian-Gas-Gathering-and-Processing + emerging-Wing-Pipeline-Expansion + emerging-Wholesale-Marketing-and-Terminalling + multi-cycle-disciplined-bolt-on-Midstream-acquisitions + multi-cycle-emerging-de-leveraging-post-2024-Q1-distribution-cut.
Competes in Permian-Midstream space with Enterprise Products Partners (EPD + Enterprise-Products-largest-Midstream-MLP), Energy Transfer (ET + Energy-Transfer + 2024-WTG-Midstream-acquired-Energy-Transfer + 2024-Crestwood-Equity-Partners-acquired-Energy-Transfer), MPLX LP (MPLX + MPLX-Marathon-Petroleum-MLP), Western Midstream (WES + Western-Midstream-Occidental-and-Anadarko-Permian-Midstream), Targa Resources (TRGP + Targa-Resources-Permian-Gas-Gathering-and-Processing), Plains All American (PAA + Plains-All-American-Crude-Oil-Pipeline-and-Storage), Plains GP Holdings (PAGP + Plains-GP-Holdings-General-Partner-Plains-All-American), DT Midstream (DTM + DT-Midstream-Natural-Gas-Pipeline-and-Storage), Enbridge (ENB + Enbridge-largest-North-American-Pipeline + 2023-Dominion-Gas-Distribution-acquired-Enbridge), ONEOK (OKE + ONEOK-Natural-Gas-Pipeline-and-Storage + 2023-Magellan-Midstream-acquired-ONEOK + 2024-EnLink-Midstream-acquired-ONEOK + 2024-Medallion-Midstream-acquired-ONEOK), Genesis Energy (GEL + Genesis-Energy-Midstream-Soda-Ash-and-Pipeline), Kinetik Holdings (KNTK + Kinetik-Permian-Gas-Gathering-and-Processing + 2022-EagleClaw-Midstream-and-Altus-Midstream-merged-Kinetik), Equitrans Midstream (EQT-acquired 2024 + Equitrans-Midstream-Natural-Gas-Pipeline-Mountain-Valley-Pipeline + 2024-EQT-acquired-Equitrans), EQT Corp (EQT + EQT-Natural-Gas-E&P-Largest-US-Marcellus + 2024-Equitrans-Midstream-acquired-EQT), Crestwood Equity Partners (Energy-Transfer-ET-acquired 2023 + Crestwood-Permian-Powder-River-and-Bakken-Midstream), Magellan Midstream Partners (ONEOK-OKE-acquired 2023 + Magellan-Midstream-Refined-Products-Pipeline), EnLink Midstream (ONEOK-OKE-acquired 2024 + EnLink-Midstream-Permian-and-Oklahoma-Midstream), Medallion Midstream (ONEOK-OKE-acquired 2024 + Medallion-Permian-Midstream), Hess Midstream (HESM + Hess-Midstream-Bakken-Midstream + 2024-Chevron-Hess-emerging-acquisition-CVX-HES + 2024-Hess-Midstream-Chevron-CVX-emerging), Antero Midstream (AM + Antero-Midstream-Marcellus-Midstream + 2024-Antero-Midstream-emerging), USA Compression Partners (USAC + USA-Compression-Natural-Gas-Compression-Energy-Transfer-ET-subsidiary), NuStar Energy (Sunoco-SUN-acquired 2024 + NuStar-Refined-Products-Pipeline + 2024-Sunoco-SUN-acquired-NuStar), Phillips 66 Partners (Phillips 66-PSX-parent-take-private 2022 + Phillips-66-Partners-Refined-Products-Pipeline), Cheniere Energy Partners (CQP + Cheniere-LNG-Export-Partner + Cheniere-Energy-LNG-CQP-Sabine-Pass-LNG); private-equity-Midstream-MLP Apollo Global Management (APO), Carlyle Group (CG), Bain Capital (private), KKR (KKR), Blackstone (BX), Brookfield Asset Management (BAM + Brookfield-Infrastructure-Partners-BIP + Brookfield-Energy-Midstream), Stonepeak Infrastructure Partners (private + Stonepeak-Infrastructure-and-Midstream + 2024-Targa-and-Crestwood-emerging-Stonepeak), Ares Management (ARES + Ares-Infrastructure-and-Energy), I Squared Capital (private + I-Squared-Infrastructure-and-Energy-Midstream), Macquarie Group (MQG-AX + Macquarie-Infrastructure-and-Midstream + 2024-Atlas-Air-acquired-Macquarie), Ridgewood Infrastructure (private + Ridgewood-Energy-Midstream).
Deep-Dive 2: Avigal-Soreq + Reuven-Spiegel + General-Partner-Delek-US-Holdings + Founder-Israel-Tshuva-Family + Multi-Decade Compounder Thesis
The second deep-dive — Avigal-Soreq + Reuven-Spiegel + General-Partner-Delek-US-Holdings + Founder-Israel-Tshuva-Family + multi-decade compounder thesis — covers distinctive multi-cycle Avigal-Soreq-Delek-US-Holdings-CEO (~25+ year longtime-Energy-veteran) + Reuven-Spiegel-Delek-Logistics-Partners-CEO + Founder-Israel-Tshuva-Family-Affiliated-Tshuva-Family expertise + multi-cycle-Delek-Logistics-Partners-Capital-Management leadership-continuity, 2012-Delek-Logistics-Partners-MLP-IPO-spin-off-from-Delek-US-Holdings-DK + 2017-Caddo-Pipeline + 2020-Big-Spring-Gathering-System + 2022-3Bear-Energy-acquired + 2024-H2O-Midstream-acquired + 2024-Wing-Pipeline-Expansion + 2024-Q1-distribution-cut-de-leveraging-priority transformational-platform + multi-cycle-disciplined-bolt-on-Midstream-acquisitions, emerging-multi-cycle Permian-Gas-Gathering-and-Processing + emerging-Permian-Water-Disposal-and-Midstream + emerging-LNG-Export-Wave-and-Henry-Hub-Natural-Gas-Demand + emerging-AI-Compute-and-Datacenter-Demand-Natural-Gas-Power-Generation structural-tailwinds.
Avigal Soreq + Reuven Spiegel leadership: General-Partner Delek-US-Holdings-DK-CEO Avigal-Soreq + Delek-Logistics-Partners-CEO Reuven-Spiegel + Founder-Israel-Tshuva-Family-Affiliated-Tshuva-Family providing distinctive multi-cycle-operational-discipline + multi-cycle-strategic-direction + 2022-3Bear-Energy-and-2024-H2O-Midstream-and-2024-Wing-Pipeline-Expansion-integration execution + 2024-Q1-distribution-cut-de-leveraging-priority + multi-cycle-Permian-Gas-Gathering + emerging-Permian-Water-Disposal-and-Midstream + emerging-Wing-Pipeline-Expansion expertise.
2012-Delek-Logistics-Partners-MLP-IPO + 2017-Caddo-Pipeline + 2020-Big-Spring-Gathering-System + 2022-3Bear-Energy + 2024-H2O-Midstream + 2024-Wing-Pipeline-Expansion transformational-platform: distinctive substantial 2012-Delek-Logistics-Partners-MLP-IPO-spin-off-from-Delek-US-Holdings-DK ($229M from Delek-US-Holdings) + 2017-Caddo-Pipeline-acquired + 2020-Big-Spring-Gathering-System-acquired + 2022-3Bear-Energy-acquired ($624M providing Permian-Delaware-Basin-Gas-Gathering-and-Processing) + 2024-H2O-Midstream-acquired ($229M providing Permian-Water-Disposal-and-Midstream) + 2024-Wing-Pipeline-Expansion providing distinctive multi-cycle Delek-Logistics-Partners-and-emerging-multi-cycle-Delek-Logistics-Partners.
Multi-cycle reliable-and-emerging-growing-distributions-MLP-post-2024-Q1-distribution-cut: distinctive multi-cycle reliable-and-emerging-growing-distributions-MLP (~$4.30-4.55/yr providing ~10-13% yield post-Q1-2024-distribution-cut + continuing-quarterly-distribution-increases providing multi-cycle reliable-and-emerging-growing-MLP-distributions-track-record) + multi-cycle-emerging-de-leveraging-post-2024-Q1-distribution-cut.
Multi-decade compounder thesis combines distinctive multi-cycle Delek-Logistics-Partners-and-Brentwood-TN ~13+ year heritage (founded 2012 + 2012 NYSE-Delek-Logistics-Partners-IPO + 2022-3Bear-Energy-acquired + 2024-H2O-Midstream-acquired + 2024-Wing-Pipeline-Expansion), ~300+ employees + ~Multi-Permian-and-Eagle-Ford-and-MidContinent-and-East-Texas-Pipeline-and-Storage-and-Gas-Gathering-Facility, 2012-MLP-IPO + 2017-Caddo + 2020-Big-Spring + 2022-3Bear-Energy + 2024-H2O-Midstream + 2024-Wing-Pipeline-Expansion + multi-cycle-disciplined-bolt-on-Midstream-acquisitions, Avigal Soreq + Reuven Spiegel + General-Partner-Delek-US-Holdings + Founder-Israel-Tshuva-Family + Permian-Midstream-expertise, multi-cycle reliable-and-emerging-growing-distributions-MLP (~10-13% yield) + multi-cycle-emerging-de-leveraging + High-Yield-Midstream-MLP balance-sheet, emerging-Permian-Gas-Gathering-and-Processing + emerging-Permian-Water-Disposal-and-Midstream + emerging-LNG-Export-Wave + emerging-AI-Compute-and-Datacenter-Demand structural-tailwinds.
Consolidated Capital Position + Balance Sheet
Capital position is High-Yield-Midstream-MLP (B1/B+ to Ba3/BB-), multi-cycle reliable-and-emerging-growing-distributions-MLP + multi-cycle-emerging-de-leveraging-post-2024-Q1-distribution-cut, conservative-and-multi-cycle-disciplined-and-Permian-Midstream-and-de-leveraging-focused: net debt ~$2.05-2.30B (~4.5-5.5x leverage), B1/B+ to Ba3/BB- equivalent (multi-cycle-High-Yield-Midstream-MLP), $0.05-0.15B cash + undrawn revolver liquidity, $4.30-4.55/yr distributions-per-unit-MLP (~10-13% yield post-Q1-2024-distribution-cut + continuing-quarterly-distribution-increases) + multi-cycle-disciplined-bolt-on-Midstream-acquisitions + emerging-Permian-Gas-Gathering-and-Processing-and-Wing-Pipeline-Expansion capex + multi-cycle-emerging-de-leveraging-post-2024-Q1-distribution-cut, ~52-54M units.
Key Core Metrics
| Metric | FY2025E Range | Notes |
|---|---|---|
| Revenue | ~$1.10-1.30B | Pipelines + Gathering-Processing + Wholesale-Marketing + Storage |
| Revenue YoY Growth | ~12-22% | Permian-Gas-Gathering-and-Processing + H2O-Midstream-acquired + Wing-Pipeline-Expansion |
| Adjusted EBITDA | ~$435-505M | ~38-42% margins Midstream-MLP-Permian-Gas-Gathering economics |
| Distributable Cash Flow (DCF) | ~$255-310M | ~58-65% conversion-of-EBITDA |
| Distributions-per-Unit | ~$4.30-4.55 | ~10-13% yield post-Q1-2024-distribution-cut + continuing-quarterly-distribution-increases |
| Employee Count | ~300+ | Brentwood-TN-HQ + Multi-Permian-Eagle-Ford-East-Texas |
| Pipelines-and-Transportation Revenue Share | ~30-35% | Largest-business |
| Gathering-and-Processing Revenue Share | ~25-30% | Multi-cycle-emerging-Permian-3Bear + H2O-Midstream |
| Wholesale-Marketing-and-Terminalling Revenue Share | ~28-33% | Multi-cycle-emerging |
| Storage Revenue Share | ~9-12% | Multi-cycle-emerging |
| Net Debt | ~$2.05-2.30B | ~4.5-5.5x leverage Midstream-MLP |
| Credit Rating | B1/B+ to Ba3/BB- | Multi-cycle-High-Yield-Midstream-MLP |
| Distributions-per-Unit Yield | ~10-13% | Post-Q1-2024-distribution-cut |
| Units Outstanding | ~52-54M | Multi-cycle |
| Related-Party Revenue Share | ~60-70% | Delek-US-Holdings-DK-Refining-Customer |
Market Evaluation
At ~$38-50 per share, equity value ~$2.0-2.7B, EV ~$4.05-5.0B, providing ~~10-13x DCF-Distributable-Cash-Flow and ~~8-11x EV/EBITDA — typical-mid-cap-Permian-Midstream-MLP multiple consistent with multi-cycle 2012-NYSE-Delek-Logistics-Partners-MLP-IPO + 2022-3Bear-Energy-acquired + 2024-H2O-Midstream-acquired + 2024-Wing-Pipeline-Expansion + 2024-Q1-distribution-cut-de-leveraging-priority + emerging-multi-cycle Permian-Gas-Gathering-and-Processing + emerging-Permian-Water-Disposal-and-Midstream + emerging-LNG-Export-Wave + emerging-AI-Compute-and-Datacenter-Demand + multi-cycle-reliable-and-emerging-growing-distributions-MLP (~10-13% yield) tailwinds.
Base case: Pipelines-and-Transportation constructive + emerging-Permian-Gas-Gathering-and-Processing + emerging-Wing-Pipeline-Expansion + emerging-Wholesale-Marketing-and-Terminalling + revenue $1.20-1.40B + adj. EBITDA $470-540M + DCF $275-330M + distributions-per-unit-MLP hiked + multi-cycle-emerging-de-leveraging + ~5-15% return.
Bull case: Permian-Gas-Gathering-and-Processing accelerates-substantially + emerging-Permian-Water-Disposal-and-Midstream inflects + emerging-LNG-Export-Wave-and-Henry-Hub-Natural-Gas-Demand inflects-substantially + emerging-AI-Compute-and-Datacenter-Demand inflects + revenue $1.30-1.55B + adj. EBITDA $520-600M + DCF $310-375M + distributions-per-unit-MLP hiked + selective-M&A + emerging-strategic-acquisition-target (Enterprise-Products-Partners + Energy-Transfer + MPLX + Western-Midstream + Targa-Resources + Plains-All-American + DT-Midstream + Enbridge + ONEOK + Genesis-Energy + Kinetik + Crestwood-Energy-Transfer + Magellan-Midstream-ONEOK + EnLink-Midstream-ONEOK + Medallion-Midstream-ONEOK + Hess-Midstream-Chevron + Antero-Midstream + private-equity-Apollo-Carlyle-Bain-KKR-Blackstone-Brookfield-Stonepeak-Ares-I-Squared-Macquarie-Ridgewood interest) + re-rate 12-16x + 30-65%+ return + takeout-premium-upside.
Bear case: Permian-Gas-Gathering-and-Processing stresses + LNG-Export-Wave-delayed + Delek-US-Holdings-DK-Refining-Customer-stresses + distributions-per-unit-MLP cut-further + de-rate 6-9x + flat-to-substantially-negative.
FY2026 turns on Pipelines-and-Transportation + emerging-Permian-Gas-Gathering-and-Processing + emerging-Wing-Pipeline-Expansion + emerging-Wholesale-Marketing-and-Terminalling + emerging-LNG-Export-Wave + emerging-AI-Compute-and-Datacenter-Demand + multi-cycle-disciplined-bolt-on-Midstream-acquisitions + multi-cycle-emerging-de-leveraging-post-2024-Q1-distribution-cut.
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