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Delek Logistics Set to Report Q1 Earnings: What's in the Cards?

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Delek Logistics Partners LP (DKL - Free Report) is set to report first-quarter 2025 results on May 7, before the opening bell.

Let us analyze the factors that are expected to have influenced DKL’s performance in the first quarter of 2025. Before that, it is worth taking a look at the partnership’s performance in the last reported quarter.

Highlights of Q4 Earnings

In the last reported quarter, the midstream energy master limited partnership’s adjusted earnings of 68 cents per share beat the Zacks Consensus Estimate of 16 cents. However, revenues of $210 million lagged the Zacks Consensus Estimate by 0.5%.

The midstream player beat on earnings in two of the trailing four quarters, met the same once and missed the same once, delivering an average surprise of 79.8%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

This is depicted in the graph below:

Delek Logistics Partners, L.P. Price, Consensus and EPS Surprise

 

Delek Logistics Partners, L.P. Price, Consensus and EPS Surprise

Delek Logistics Partners, L.P. price-consensus-eps-surprise-chart | Delek Logistics Partners, L.P. Quote

DKL’s Estimate Trend

The Zacks Consensus Estimate for first-quarter earnings per share of 73 cents has witnessed no upward revision and one downward movement in the past 30 days. The consensus estimate implies no change from the year-ago reported number.

The Zacks Consensus Estimate for the to-be-reported quarter’s revenues of $213 million indicates a 15.5% decrease from the year-ago reported figure.

Factors to Consider for DKL

Delek Logistics benefits from a fee-based revenue model, with long-term contracts (many inflation-adjusted) primarily with Delek US Holdings. This structure enhances revenue predictability and insulates cash flows from commodity price swings, positioning the partnership for resilient performance even amid macroeconomic uncertainty.

In the first quarter, these stable cash flows, coupled with recent acquisitions and infrastructure growth, are expected to support higher volumes and earnings. However, DKL remains heavily reliant on Delek US, with many assets tied to its refineries, leaving it partially exposed to the parent company's operational and financial health.

Earnings Whispers

Our proven model does not predict an earnings beat for DKL this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.

Earnings ESP: This represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate. Earnings ESP for this partnership is 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Zacks Rank: The partnership currently carries a Zacks Rank #3.

Stock to Consider

Here is one stock that you may want to consider, as it has the right combination of elements to post an earnings beat this reporting cycle.

Cheniere Energy Partners (CQP - Free Report) is expected to report first-quarter 2025 earnings soon. It has an Earnings ESP of +4.20% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for CQP’s earnings is pegged at $1.06 per share, indicating a year-over-year decline of 10.2%. The consensus estimate for revenues is pegged at $2.49 billion.

Helmerich & Payne (HP - Free Report) has an Earnings ESP of +14.61% and a Zacks Rank #3. The firm is scheduled to release earnings on May 7.

HP beat the Zacks Consensus Estimate for earnings in three of the last four quarters and missed in the other, the average being 4.9%. Valued at around $1.9 billion, Helmerich & Payne has lost 47.1% in a year.

Calumet, Inc. (CLMT - Free Report) has an Earnings ESP of +15.32% and a Zacks Rank #3.

CLMT is scheduled to release earnings on May 9. The Zacks Consensus Estimate for Calumet’s 2025 earnings per share indicates a 73.41% year-over-year surge. Valued at $956.9 million, Calumet’s shares have lost 31.5% in a year.

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