Delek Logistics Q3 revenue beats analyst expectations
Overview
US midstream energy firm's Q3 revenue beat analyst expectations
Q3 net income and adjusted EBITDA were little changed from a year ago
Company raised 2026 adjusted EBITDA guidance, citing strong operational performance
Outlook
Delek Logistics raises 2026 adj EBITDA guidance to $530 mln-$560 mln
Company expects $60 mln incremental adj EBITDA in 2027 from 2026 growth capital program
Company sees growing demand for sour gas treating and acid gas injection services
Result Drivers
GATHERING AND PROCESSING MARGINS - Co said higher margins in gathering and processing business drove Q3 results
SOUR GAS SYSTEM - Completion and commissioning of integrated sour gas system at Libby Complex contributed to results, per co
MARKETING AGREEMENT TERMINATION - Termination of East Texas marketing agreement and lower wholesale margins weighed on segment results
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $372.44 mln | $353.54 mln (5 Analysts) |
Q3 EPS | $0.85 | ||
Q3 Net Income | $47.42 mln | ||
Q3 Adjusted EBITDA | $142.90 mln | ||
Q3 EBITDA | $118.50 mln | ||
Q3 Operating Income | $53.47 mln | ||
Q3 Pretax Profit | $47.86 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "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 $57.00, about 11.2% above its November 5 closing price of $51.24
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 17 three months ago
Reuters Recommended Reads
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(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.)