Delek Logistics Partners, MLP (DKL) is a growth-oriented limited partnership focused on owning and operating midstream energy infrastructure. This partnership is an excellent investment for income investors focused on high, very stable and predictable, yet growing, cash distributions and yield.
The future earnings growth is secured by a stream of available current and future asset acquisitions divested from its sponsor, Delek US Holdings, Inc. (DK). My estimate of the EBITDA increase thanks to these acquisitions is a 25%-30% increase in the next 18 months. The first asset acquisitions are expected to begin in the third quarter of 2013, promising to increase the bottom line in the second half of 2013. Moreover, the asset divestitures from Delek...
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