Overview

* Delek Logistics ( DKL ) Q2 net income rises to $44.6 mln from $41.1 mln yr ago

* Adjusted EBITDA for Q2 up 18% yr/yr, revenue missed analyst expectations, per LSEG data

* Co completed $700 mln debt offering, boosting liquidity to over $1 bln

Outlook

* Delek Logistics ( DKL ) expects full-year Adjusted EBITDA of $480 mln to $520 mln

* Company plans continued distribution increases

* Delek Logistics ( DKL ) confident in growth driven by Midland and Delaware basins

Result Drivers

* LIBBY 2 PLANT - Completion of Libby 2 gas processing plant expanded capacity for producer customers in Lea County, New Mexico

* ACQUISITIONS - Incremental EBITDA from Gravity and H2O Midstream acquisitions boosted Gathering and Processing segment

* DISTRIBUTION GROWTH - Achieved 50th consecutive quarterly distribution increase, reinforcing growth strategy

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $246.35 $288 mln

Revenue mln (3

Analysts

)

Q2 Net $44.57

Income mln

Q2 $120.90

Adjusted mln

EBITDA

Q2 $90.10

EBITDA mln

Q2 $52.44

Operatin mln

g Income

Q2 $44.82

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the oil & gas transportation services peer group is "buy"

* Wall Street's median 12-month price target for Delek Logistics Partners LP ( DKL ) is $45.00, about 0% above its August 5 closing price of $44.99

* The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)