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Delek Logistics Partners L.P. (DKL - Free Report) reported fourth-quarter 2019 adjusted earnings of 52 cents per unit, missing the Zacks Consensus Estimate of 73 cents by 28.8%. Moreover, the bottom line was down 10.3% from the year-ago quarter.
Total Revenues
Total revenues in the fourth quarter amounted to $139 million, on par with the Zacks Consensus Estimate. However, revenues declined 12.6% from $159 million reported in the year-ago quarter.
Highlights of the Release
In the quarter under review, the firm’s total costs and expenses were $108.9 million, down 14.9% year over year. The decline was due to lower cost of materials, and drop in general and administrative expenses.
The firm’s operating income dropped 14.9% to $29.7 million from $31.1 million in the prior-year quarter. Interest expenses increased 8.9% year over year to $12.2 million.
Total contribution margin in the fourth quarter was $42.5 million compared with $45 million in the prior-year period.
Delek Logistics Partners, L.P. Price, Consensus and EPS Surprise
In the Pipelines and Transportation segment, contribution margin was $25.2 million compared with $26.3 million in the year-ago quarter.
In the Wholesale Marketing and Terminalling segment, contribution margin was $17.3 million compared with $18.8 million in the year-ago quarter.
Financial Update
As of Dec 31, 2019, current assets were $5.5 million compared with $4.5 million in the corresponding period of 2018.
As of Dec 31, 2019, Delek Logistics had long-term debt of $833.1 million compared with $700.4 million in the comparable period of 2018.
Cash from operating activities in 2019 was $130.4 million compared with $152.9 million in 2018.
Guidance
The firm expects that pipeline expansion, which is currently underway, should increase the contribution in second-half 2020. It is aiming for distribution growth of 5% in 2020.
Zacks Rank
Delek Logistics currently carries a Zacks Rank #4 (Sell).
National Fuel Gas Company (NFG - Free Report) posted first-quarter fiscal 2020 operating earnings of $1.01 per share, beating the Zacks Consensus Estimate of 95 cents by 6.3%.
Atmos Energy Corporation (ATO - Free Report) posted first-quarter fiscal 2020 earnings of $1.47 per share, which lagged the Zacks Consensus Estimate of $1.49 by 1.3%.
Plains All American Pipeline, L.P. (PAA - Free Report) reported fourth-quarter 2019 adjusted earnings of 63 cents per unit, beating the Zacks Consensus Estimate of 49 cents by 28.6%.
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Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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Delek Logistics (DKL) Q4 Earnings Miss, Sales Meet Estimates
Delek Logistics Partners L.P. (DKL - Free Report) reported fourth-quarter 2019 adjusted earnings of 52 cents per unit, missing the Zacks Consensus Estimate of 73 cents by 28.8%. Moreover, the bottom line was down 10.3% from the year-ago quarter.
Total Revenues
Total revenues in the fourth quarter amounted to $139 million, on par with the Zacks Consensus Estimate. However, revenues declined 12.6% from $159 million reported in the year-ago quarter.
Highlights of the Release
In the quarter under review, the firm’s total costs and expenses were $108.9 million, down 14.9% year over year. The decline was due to lower cost of materials, and drop in general and administrative expenses.
The firm’s operating income dropped 14.9% to $29.7 million from $31.1 million in the prior-year quarter. Interest expenses increased 8.9% year over year to $12.2 million.
Total contribution margin in the fourth quarter was $42.5 million compared with $45 million in the prior-year period.
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
Segmental Performance
In the Pipelines and Transportation segment, contribution margin was $25.2 million compared with $26.3 million in the year-ago quarter.
In the Wholesale Marketing and Terminalling segment, contribution margin was $17.3 million compared with $18.8 million in the year-ago quarter.
Financial Update
As of Dec 31, 2019, current assets were $5.5 million compared with $4.5 million in the corresponding period of 2018.
As of Dec 31, 2019, Delek Logistics had long-term debt of $833.1 million compared with $700.4 million in the comparable period of 2018.
Cash from operating activities in 2019 was $130.4 million compared with $152.9 million in 2018.
Guidance
The firm expects that pipeline expansion, which is currently underway, should increase the contribution in second-half 2020. It is aiming for distribution growth of 5% in 2020.
Zacks Rank
Delek Logistics currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Releases
National Fuel Gas Company (NFG - Free Report) posted first-quarter fiscal 2020 operating earnings of $1.01 per share, beating the Zacks Consensus Estimate of 95 cents by 6.3%.
Atmos Energy Corporation (ATO - Free Report) posted first-quarter fiscal 2020 earnings of $1.47 per share, which lagged the Zacks Consensus Estimate of $1.49 by 1.3%.
Plains All American Pipeline, L.P. (PAA - Free Report) reported fourth-quarter 2019 adjusted earnings of 63 cents per unit, beating the Zacks Consensus Estimate of 49 cents by 28.6%.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2020 today >>