Midstream energy firm Delek Logistics' Q2 revenue misses estimates, net income rises

Reuters
Aug 06
Midstream energy firm Delek Logistics' <a href="https://laohu8.com/S/QTWO">Q2</a> revenue misses estimates, net income rises

Overview

  • Delek Logistics 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 expects full-year Adjusted EBITDA of $480 mln to $520 mln

  • Company plans continued distribution increases

  • Delek Logistics 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/Miss

Actual

Consensus Estimate

Q2 Revenue

Miss

$246.35 mln

$288 mln (3 Analysts)

Q2 Net Income

$44.57 mln

Q2 Adjusted EBITDA

$120.90 mln

Q2 EBITDA

$90.10 mln

Q2 Operating Income

$52.44 mln

Q2 Pretax Profit

$44.82 mln

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 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: ID:nBw1wmDbba

(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.)

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