Delek Logistics Units Up 31% Year-To-Date
Since the war in Iran began in late February, West Texas Intermediate and Brent crude oil prices have been on a great run. Even after a recent pullback, West Texas Intermediate is up 67% this year at $96.00 per barrel while Brent Crude is up 70% at $104 per barrel.
This is in sharp contrast to what crude oil prices were doing in the back half of 2025 and opening weeks of 2026. West Texas Intermediate entered 2026 trading hands at roughly $57.00 per barrel and Brent crude going for approximately $61.00 per barrel.
While there has been talk of an end to the conflict, tensions remain. In fact, in early November, the U.S. attacked Iran’s Qeshm Island. President Trump has insisted the U.S. hasn’t done any fighting in months, but there are concerns full blown strikes could begin again.
This uncertainty, ongoing conflict in the broader Middle East, and Russia/Ukraine war, means the energy sector should continue to be a top play in the opening months of 2027.
Energy bulls that don’t like the volatility, uncertainty, and unpredictability of upstream energy plays might want to put Delek Logistics Partners LP (NYSE:DKL) on their radar.
With a market cap of $3.2 billion, Delek is on the smaller side, but it’s been firing on all cylinders. It’s been reporting strong financial results, it has increased is dividend for 54 consecutive quarters, and its units hit a record high of $61.50 in July and they continue to seriously outpace the S&P 500.
Delek Logistics Partners LP 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 United States. (Source: “Investor Update,” Delek Logistics Partners LP, last accessed November 3, 2026.)
It’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.
Another Solid Quarter
For the second quarter ended June 30, 2026, Delek reported net income of $28.9 million or $0.54 per diluted common limited partner unit. This compares to net income of $44.6 million, or $0.83 per diluted common limited partner unit, in the second quarter 2025. (Source: “Delek Logistics Reports Second Quarter 2026 Results,” Delek Logistics Partners, LP., November 7, 2025.)
Net cash provided by operating activities was $71.2 million compared to $107.4 million in the second quarter 2025. Distributable cash flow, as adjusted increased to $80.5 million from $72.5 million in the second quarter 2025.
Earnings before interest, taxes, depreciation and amortization (EBITDA) advanced to $120.0 million compared to $96.6 million in the same prior year period. Adjusted EBITDA advanced to $143.5 million versus $127.4 million in the second quarter of 2025.
Looking ahead, management reaffirmed its 2026 EBITDA guidance of $520 million to $560 million.
Increases Quarterly Distribution For 54 Consecutive Quarters
Thanks to reliable distributable cash flow, Delek Logistics is able to provide investors with a growing distribution. In the third quarter, it raised its quarterly cash distribution to $1.14 per unit, or $4.56 per unit on an annual basis, for a current forward distribution yield of 8.3%. (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 54th consecutive quarter in which Delek Logistics has raised its quarterly payout. That’s equivalent to 13.5 years.
DKL Units Thumping S&P 500
Because dividend yield and share price have an inverse relationship, it’s not difficult to find an ultra-high yield dividend attached to a weak share price. That’s not the case with Delek. It has an 8.3% dividend yield and its units are crushing the S&P 500.
Again, in late July, DKL units hit a record high of $61.50, they have pulled back a little since then on profit taking and broader investor sentiment, but it continues to have momentum, with higher pullbacks.
Currently trading at $53.65, DKL stock is up:
- 31% year to date
- 35% on an annual basis
Chart courtesy of StockCharts.com
The Lowdown on Delek Logistics Partners
Delek Logistics Partners, LP is a great energy stock that continues to report solid financial results, including distributable cash flow. This helps support its reliable, growing, ultra-high yield dividend. For 2026, it’s on track to report EBITDA in the range of $520 million to $560 million.
For passive income investors, Delek has raised its payout for 54 consecutive quarters, and its units recently hit a record high.
For information and education only; not investment, tax or legal advice. Yields and prices are as of the publication date.
