Research · Sep 3, 2026
[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.