DKL - Delek Logistics Partners: Leveraging Up To Boost Distribution Growth

• Despite sustaining and even growing their distributions during the severe downturn of 2020 and bumpy year of 2021, Delek Logistics Partners appeared to have almost reached their limit in 2022.
• Although their recently completed acquisition of 3Bear Energy transforms this outlook.
• It stands to boost their free cash flow significantly to an extent that could even reach nearly one-third of their distribution payments, which opens the door for plenty more growth.
• Whilst it also sees their leverage increase, this does not threaten their financial position nor their distributions.
• Since this improves their outlook, it should not be surprising that I believe maintaining my buy rating is appropriate.

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