DKL Units Already Up 7.5% in 2026
West Texas Intermediate (WTI) and Brent crude oil prices continue to slide lower, with WTI crude oil trading at its lowest levels since 2021. Crude prices are down on fears of a global economic slowdown. Moreover, thanks to rising inventories, sanctioned crude tankers, and new Venezuelan barrels hitting the market, the world is awash in crude.
Goldman Sachs recently revised its 2026 outlook for crude lower, saying it expects WTI crude to fall to $50.00 per barrel. That’s more than half of what it was in March 2020. Though Goldman is a little more bullish for 2027 and sees Brent crude at $54.00 to $58.00 per barrel. (Source: “Goldman Sachs Says WTI Could Drop to $50,” OilPrice, January 2, 2026.)
For energy bulls, there’s no reason to focus exclusively on crude oil prices or to wait for commodity prices to rebound. One sector that doesn’t care where crude oil prices are is the oil and gas refining and marketing industry; Delek Logistics Partners LP (NYSE:DKL), in particular.
Delek Logistics has a market cap of just $2.5 billion, putting it on the smaller side, but it’s firing on all cylinders right now and its outlook is robust. The company reported record fourth-quarter 2024 and record first-, second-, and third-quarter results in 2025. Dividend hogs will be happy to know that Delek has raised its quarterly payout for more than 12 years, and, on January 14, it hit a record intraday high of $48.97. Not only that, but its units are significantly outpacing the S&P 500.
Delek Logistics Partners is a midstream, energy master limited partnership (MLP) that provides gathering, pipeline, transportation, and other services for crude oil, intermediates, refined products, natural gas, storage, wholesale marketing, terminalling water disposal, and recycling customers in the U.S. (Source: “Investor Update,” Delek Logistics Partners LP, April 1, 2025.)
The MLP’s infrastructure includes 850 miles of crude and product transportation pipelines and a 700-mile crude oil gathering system.
Delek’s key areas of operations include around the Permian Basin, the Delaware Basin, and other regions in the Gulf Coast area. This includes Texas, Tennessee, Arkansas, and Oklahoma.
Record Q3 2025 Results & Increased 2025 Guidance
Shareholders never get tired of hearing about record financial results. For the third quarter ended September 30, 2025, Delek reported third-quarter net income of $45.6 million, or $0.85 per unit, up 35% from $33.6 million, or $0.71 per share, in the same prior-year period. (Source: “Delek Logistics Reports Record Third Quarter 2025 Results,” Delek Logistics Partners LP, November 7, 2025.)
Delek Logistics Partners’ net cash provided by operating activities was $54.9 million, compared to $24.9 million in the third quarter of 2024. Its distributable cash flow as adjusted was up 19.5% on an annual basis at $74.1 million.
The MLP’s third-quarter earnings before interest, taxes, depreciation and amortization (EBITDA) were $102.0 million, versus $69.2 million in the same prior-year period. Adjusted EBITDA increased 27% to $106.8 million.
Commenting on the results, Avigal Soreq, Delek Logistics Partners’ president, said, “During the third quarter Delek Logistics continued its strong execution by making progress on the development of sour gas gathering and acid gas injection capabilities. Delek Logistics also had record crude gathering volumes in its Delaware Business”
“Due to the strong progress we have made so far in the year we are increasing our full year EBITDA guidance higher to $500 – $520 million.”
51 Consecutive Quarters of Hiking its Quarterly Distribution
Thanks to reliable distributable cash flow, Delek Logistics is able to provide investors with a growing distribution. In October, the MLP raised its quarterly cash distribution to $1.120 per unit, or $4.48 per unit on an annual basis, for a current forward distribution yield of 9.5%. (Source: “Delek Logistics Partners, LP Increases Quarterly Cash Distribution to $1.120 per Common Limited Partner Unit,” Delek Logistics Partners LP, October 28, 2025.)
This represents the 51st consecutive quarter in which Delek Logistics has raised its quarterly payout. That’s equivalent to a run of 12.75 years.
DKL Units Thumping the S&P 500
What pairs perfectly with a company that has raised its quarterly payout for more than 12 years? One that has a stock trading at record levels, too.
On January 14, DKL hit a record intraday high of $48.97. It continues to trade near that level.
As of January 19, DKL units are trading up:
- 8.0% over the last month
- 13.5% over the last six months
- 7.0% year to date
- 18.0% on an annual basis
Chart courtesy of StockCharts.com
The Lowdown on Delek Logistics Partners LP
Delek Logistics Partners LP is a great energy stock that reported record financial results in the first nine months of 2025. It raised its full-year guidance, and is on track to report 2025 EBITDA in the range of $500.0 million to $520.0 million.
For passive income investors, Delek has raised its payout for 51 consecutive quarters, and its units are at record levels.