Delek Logistics Partners: At 8% Yield, This Is Too Good To Pass Up

Delek Logistics Partners offers an 8.24% forward yield, well supported by robust cash flow and resilient operating performance amid an energy export boom. DKL trades at an attractive 9.7x FWD EV/EBITDA, with fair value estimated at $60–$65 per unit, underpinned by strong growth and market tailwinds. Recent aggressive PP&E investments and rising revenue per barrel (up 37.7% YoY) highlight DKL's pricing power and strategic positioning in the Permian Basin. I rate DKL a Buy, anticipating continued distribution growth, volume recovery, and upside from export-driven demand and improved unit economics.

Midstream companies have always been an area I look towards when I want to add income to a portfolio. Delek Logistics Partners (DKL) now has an 8.24% FWD yield that seems extremely well supported.