Delek Logistics Partners, L.P. Common Units representing Limited Partner Interests (DKL) Company Bio
Delek Logistics Partners LP owns and operates logistics and marketing assets for crude oil, and intermediate and refined products in the United States. It operates through two segments, Pipelines and Transportation, and Wholesale Marketing and Terminalling. The company was founded in 2012 and is based in Brentwood, Tennessee.
DKL Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for DKL, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Delek Logistics Partners LP ranked in the 76th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 323%. As for the metrics that stood out in our discounted cash flow analysis of Delek Logistics Partners LP, consider:
Interest coverage, a measure of earnings relative to interest payments, is 3.23; that's higher than 71.42% of US stocks in the Energy sector that have positive free cash flow.
38% of the company's capital comes from equity, which is greater than merely 20.87% of stocks in our cash flow based forecasting set.
Delek Logistics Partners LP's weighted average cost of capital (WACC) is 6%; for context, that number is higher than only 6.31% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Energy that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as DKL, try FRO, SUN, SPN, CVE, and ENLC.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Cushing® Asset Management, LP, and Swank Capital, LLC, announce today the upcoming rebalancing of The Cushing® MLP High Income Index (the "Index") as part of normal index operations. After the markets close on July 10, 2020, the 30 constituents of the Index will be rebalanced, and the following changes will become effective on July 13, 2020: