How Delek Logistics Partners Earnings Set The Stage For Investors

Delek Logistics Partners (DKL) reported second quarter 2026 earnings on August 5, highlighting higher sales and revenue alongside lower net income and earnings per share compared with the same period last year.

For the quarter ended June 30, 2026, the company reported sales and revenue of US$384.76 million, compared with US$246.35 million a year earlier. Net income was US$28.87 million, compared with US$44.57 million in the prior year period.

Basic and diluted earnings per share from continuing operations were US$0.54, compared with US$0.83 a year ago. For many investors, this mix of higher top line and lower bottom line is an immediate prompt to look more closely at cost trends and margin pressures.

Over the first six months of 2026, Delek Logistics Partners reported sales and revenue of US$682.23 million, compared with US$496.28 million in the same period of 2025. Net income over the half year was US$61.22 million, compared with US$83.61 million a year earlier.

Basic and diluted earnings per share from continuing operations for the six month period were US$1.15, compared with US$1.56 a year ago. This pattern across both the quarter and the half year keeps the focus on how the business is converting revenue into profit.

Alongside these figures, the company reported record adjusted EBITDA, supported by increased volumes in Delaware crude gathering and higher utilization at the Libby gas complex. Delek Logistics Partners also reaffirmed full year 2026 EBITDA guidance and pointed to growth capital investments that it expects to support additional earnings by 2027.

Delek Logistics Partners has seen its share price build positive momentum, with a year to date share price return of 25.32% and a 1 year total shareholder return of 46.29%. This performance sits alongside its record adjusted EBITDA update and reaffirmed 2026 EBITDA guidance.

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Delek Logistics Partners appears to be a solid midstream operator on the surface, with record adjusted EBITDA and a strong recent share price run. The real question now is whether you are paying too much for that strength.

Most Popular Narrative: 6.6% Overvalued

At a last close of $58.90 against a narrative fair value of $55.25, Delek Logistics Partners sits slightly above that widely followed estimate, which leans heavily on long term cash flow expectations and capital deployment plans.

The full commissioning and expected ramp to capacity of the new Libby 2 gas plant in the Delaware Basin, along with associated investments (amine unit and AGI wells), positions Delek Logistics to capitalize on rising energy demand and stable domestic energy infrastructure needs, likely boosting gathering and processing volumes, EBITDA, and revenue growth.

Read the complete narrative. Read the complete narrative.

Want to see what is behind that modest premium? The narrative leans on steady volume growth, firmer margins and a richer earnings multiple. Curious which assumptions really move the fair value?

Result: Fair Value of $55.25 (OVERVALUED)

However, Delek Logistics Partners still faces key risks, including high leverage tied to recent high yield funding and potential underutilization if longer term fossil fuel demand softens.

Another View: SWS DCF Model On Delek Logistics Partners

While the analyst narrative pegs Delek Logistics Partners at a modest premium to its $55.25 fair value, the SWS DCF model points in the opposite direction. On this cash flow view, DKL at $58.90 is trading at a very large 74.4% discount to an estimated value of $230.10. That is a wide gap. Which set of assumptions do you find more realistic for the long haul?

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Delek Logistics Partners for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 50 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

Mixed signals around Delek Logistics Partners can feel confusing. Move fast, review the data for yourself, and weigh both the upside and the concerns using 2 key rewards and 3 important warning signs

Looking For More Investment Ideas Beyond Delek Logistics Partners?

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• Target potential mispricing by reviewing companies that screen as 50 high quality undervalued stocks and could merit a closer look on your watchlist.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.