Delek Logistics Partners Boosts Distribution to $1.105 per Unit

Delek Logistics Partners, LP (DKL) has announced an increase in its quarterly cash distribution to $1.105 per common limited partner unit, effective for the fourth quarter of 2024. This marks the 48th consecutive increase in the company's distribution, reflecting its commitment to providing a combination of yield and growth in the midstream sector.



The increase in distribution comes on the heels of several strategic actions and acquisitions completed by DKL during the third quarter of 2024. These include:

* Closing the acquisition of H2O Midstream, which contributed to higher Adjusted EBITDA in the Gathering and Processing segment.
* Completing the acquisition of Delek US' interest in the Wink to Webster ("W2W") pipeline, which added to the company's Adjusted EBITDA in the Storage and Transportation segment.
* Amending and extending agreements with Delek US for a period of up to seven years, securing a steady stream of cash flows.
* Announcing the final investment decision (FID) on a new gas processing plant adjacent to the existing Delaware plant, which is expected to drive future growth.



These strategic actions, combined with DKL's consistent distribution growth policy, have enabled the company to maintain its position as a premier, full-service midstream provider in the prolific Permian Basin. The recent equity offering of $165.3 million has further strengthened DKL's financial flexibility, allowing it to fund accretive growth projects in the Delaware Basin.



DKL's distribution yield of approximately 11% remains competitive with other midstream energy master limited partnerships (MLPs), making it an attractive option for income-focused investors. The company's 47th consecutive increase in its distribution demonstrates its commitment to growing its income stream, further enhancing its appeal to investors seeking a stable and growing income stream.



In conclusion, Delek Logistics Partners' increase in quarterly cash distribution to $1.105 per unit reflects the company's strong performance and commitment to providing a combination of yield and growth in the midstream sector. With a competitive distribution yield and a track record of consistent distribution growth, DKL remains an attractive option for income-focused investors seeking a stable and growing income stream. As DKL continues to execute on its strategic initiatives and grow its distribution, investors can expect the company to maintain its position as a premier midstream provider in the Permian Basin.