Delek Logistics Expands Capital Base Strengthening Long Term Dividend Reliability

Delek Logistics Partners, LP (NYSE:DKL) is one of the 12 Best MLP Dividend Stocks to Buy According to Analysts.

The company upsizes a $700 million senior notes offering and receives a new rating from Mizuho Securities the following day.

Delek Logistics Expands Capital Base Strengthening Long Term Dividend Reliability

A engineer overseeing a exposed network of pipelines connected to tanks at an oil refinery.

Based in Tennessee, Delek Logistics Partners, LP (NYSE:DKL) is a master limited partnership specializing in midstream energy services. The company operates crude oil gathering systems, pipelines, storage terminals, and water disposal facilities across West Texas, the Southeast, and the Gulf Coast. Founded in 2012, it serves both Delek US refineries and third-party customers.

On June 25, 2025, the company announced the pricing of an upsized offering of $700 million in senior notes. The notes due in 2033 carried an interest rate of 7.375%. With the offering, the company intended to meet part of the outstanding borrowings under its revolving credit facility. Following this initiation, on June 26, 2025, Mizuho Securities initiated coverage on Delek Logistics Partners, LP (NYSE:DKL), with a Hold rating and a price target of $44.00.

On June 30, 2025, the company announced the closing of this upsized offering. The increased liquidity, resulting from the $700 million in senior notes offering, provides potential investment opportunities for Delek Logistics Partners, LP (NYSE:DKL).

This new development reinforces the company’s capability in meeting its dividend payments, which has 12 years of consecutive growth. Investors interested in purchasing the stock must note that  Delek Logistics Partners, LP (NYSE:DKL) has a consensus Buy rating and offers a dividend yield of 10.34%.

While we acknowledge the risk and potential of DKL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DKL and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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