DKL - Why Units of Delek Logistics Partners Jumped 13.3% in August
Units of Delek Logistics Partners (NYSE: DKL) surged 13.3% in August, according to data from S&P Global Market Intelligence. Fueling the master limited partnership's rally was its solid second-quarter results and a transaction with its parent, refiner Delek US Holdings (NYSE: DK), to eliminate its costly management fees.
Delek Logistics Partners produced pretty solid second-quarter results. The energy company generated $57 million of distributable cash flow, up from $31.2 million in the year-ago period. That provided it with enough money to cover its distribution -- which currently yields 10.6% -- by a comfortable 1.58 times, exceeding its year-end target range of 1.4 to 1.5 times. Fueling that strong result was the contribution of new assets and its cost reduction efforts.
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