Delek (DK) to partially sell the units of Delek Logistics Partners
Delek US Holdings, Inc. DK recently announced that it would sell up to 434,590 Common Limited Partnerships in Delek Logistics Partners, LP DKL over the next three months in open market transactions.
The initiative aims to monetize a portion of DK’s current 80% stake in DKL and present the actual value of this property which is not currently reflected in DK’s share price.
Delek US Holdings established Delek Logistics Partners, based in Brentwood, TN, to own, operate, acquire and build logistics and marketing assets of crude oil and refined products.
With the latest program, DKL unitholders will benefit from increased liquidity and float as trading volumes increase and the pool of potential investors grows.
Going forward, Delek US Holdings will explore methods to monetize additional units, with an emphasis on preserving DKL unit holders and the remaining share of ownership.
Founded in 2001, Delek US Holdings is an independent refiner, transporter and distributor of petroleum products. DK’s operations are organized into three showcasing segments, namely refining, logistics and retail.
Additionally, recently DK released its investment budget for 2022, with investment plans of $ 250-260 million the following year. Growth in 2022 will primarily focus on expanding the Delek Permian Gathering business, which has strong demand from producers.
This independent energy company has elected to perform minor maintenance work at Tyler in the fourth quarter of 2021, delaying its next turnaround activity until 2023. As a result, Delek US Holdings’ refining throughput target in the fourth quarter is revised to 275-280 million barrels per day.
Zacks rank and choice of keys
Delek US Holdings currently has a Zack Rank # 3 (Hold). Investors interested in the energy sector might consider the following stocks to consider with a Zacks Rank # 1 (strong buy) right now. You can see The full list of today’s Zacks # 1 Rank stocks here.
Western Oil Company OXY is an integrated oil and gas company with significant exposure to exploration and production. OXY is also a producer of various basic chemicals, petrochemicals, polymers and specialty chemicals. At the end of 2020, OXY’s preliminary proven global reserves stood at 2.91 billion boe compared to 3.9 billion boe at the end of 2019.
In the past year, shares of Occidental Petroleum have jumped 99% against the industry’s growth of 96.6%. OXY profits in 2021 are expected to rise 151.4% from the figure released a year ago. OXY has also witnessed eight northward estimate revisions over the past 60 days. In the third quarter, OXY met its divestment target of $ 10 billion by signing an agreement to sell its stake in two offshore assets in Ghana for $ 750 million.
PDC Energy PDCE is an independent upstream operator specializing in the exploration, development and production of natural gas, crude oil and natural gas liquids. PDCE, which reached its current status following the January 2020 merger with SRC Energy, is currently the second largest producer in the Denver-Julesburg basin. At the end of 2020, PDCE’s total estimated proven reserves stood at 731,073,000 barrels of oil equivalent.
In the past year, shares of PDC Energy have gained 169% versus industry growth of 108.6%. PDCE’s profits for 2021 are expected to increase by 273.4% from the figure released the previous year. In the past 60 days, Zacks’ consensus estimate for PDC Energy’s earnings in 2021 has been increased by 26.8%. PDCE earnings have beaten Zacks’ consensus estimate over the past four quarters, averaging 51.06%.
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