Delek Logistics Partners (DKL)

[dangbro]

How ya doing Kid?

[WALL STREET KID]

$DKL Is A @TraderBJones #CharlesAstor Pick

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[WALL STREET KID]

$DKL turned out to be a nice trade if you caught the open.
This stock could have a longer term future.

[WALL STREET KID]

Looks interesting, seems to be bouncing up again should test the HOD IMHO

[WallStreetRocker]

Pete 807....kept 1000 ...like the .85 per unit per quarter...did not keep dk.... glta!!!

[WallStreetRocker]

New dk station in little rock, ar. Glta!!!

[pick]

I kept a few shares, too, from Alon.....but I sold my ALDW before the big swallow, because I felt more comfortable with a bird in the hand.....rolled some into DKL and some into NGL

[WallStreetRocker]

Spotted 2 new alon stores in little rock,.one was formally a Hess store...glta!!!

[WallStreetRocker]

Luv me some payday. Kept 1000 of this just to see what the future would bring!!!glta!!!

[jugs]

This stock bores me. I don't find it ever exciting. Even now, with the pledge to reel in $100 million in units, it probably won't amount to very much in terms of distribution increases.

Sorry to rain on someone's parade but it's my feeling.

[jugs]

Interesting spike to the upside today, gaining 75 cents. Long ways off from the next ex-D day.

[Alpine600]

Decent bump in payout. Stock up nicely but as usual on low volume.

[jugs]

Just announced:

DKL will be increasing the distribution to 77¢, up from 75¢.

[jugs]

When I sold off my position in DKL, I got $27.30/unit. Add in 75 cents received in one transaction involving a distribution and that means I effectively held my own with just a slight gain overall. This pick is trading now at $28. I placed the cash into NGL at $10.04 with a sweet gain of about $2.25.

Looking out at the barren field inhabited by DKL now, I believe that what I'm seeing is an unloved stock. That doesn't explain my interest in the stock, or lack thereof. This is good for steady income and a solid yield.


Those don't amount to sufficient qualifiers for me but certainly could offer allocation diversity for others.

My problem with DKL is one of distrust. Aside from issues emanating from the dissolution of ALDW and DK's denial of our right to the final two distributions, DK had announced on more than one occasion that there would be dropdowns resulting from the absorbing of ALDW assets---drops that would prove to be immediately accretive to DKL and, therefore, unitholders.

None of this has come to pass. That leaves a bitter taste in this investor's mouth.

[pete807]

Selling at 30 plus is one of those nice pictures in the rear view mirror..... Yup yield aint all it's cracked up to be!

Post swallow: Drop downs?, .... what drop downs?

They were a small fraction (.01%) of the new Alerian index funds as noted by news listed for both ETP and EPD,... however no mention in the news column of DKL... probably cuz that tiny per cent doesn't mean anything to anybody, lol.

[jugs]

Things don't appear to be changing much around here.

Delek remains in control and that has me electing to stay away.

Sometimes distributions and yields don't amount to enough to lure me.

[jugs]

You're in much the same predicament as I was except that I got out. I think I lost a little on it.

DKL was supposed to benefit from dropdowns and it may come to pass. But I've got greener pastures to occupy my time and I also don't trust DK to put shareholders before their own greed and desire to move with total authority/autonomy. I don't see lawfulness as vital to their well being.

There are opportunities all over the place. That's something I can't dismiss from view when tempted to stick around for a few hundred dollars in distributions while a fantastic opportunity such as is occurring in NGL. I hope you've looked at this already and have decided to move as you've indicated.

[TNMopar]

Unfortunately I chose to stay with DKL instead of DK which has proven to be a bad decision. I'm wondering if DK is using DKL as a place to park underperforming assets. If so, it wouldn't be surprising to me...knowing how DK operates. At this point it's probably best to wait it out and collect distributions.

[jugs]

I can't believe it's been two full months as of today when I last posted on this board. A positive article came out covering this company but I can't recall the party responsible for it---it may have been either Motley Fool or Zacks Fool. lol

Just checked and am a bit surprised to find that no dropdowns have been indicated via PR and issued by parent DK.

[Alpine600]

Distribution raised to $0.75

[pete807]

Yup and I am green but will watch for a little pop and I will be the weasel... lol. Or the jack in the box, Kracker jacker.

Bye and so long.... Plenty fish in the pond...

[jugs]

I'm out of DKL. It would take more than an article to lure me back in.

[pete807]

If SA adds any volume by touting a company in an article... we could see a boost in volume I have long been complaining about here... I still have 500 units and I would sell them and move on if we reclaimed the high of January...
https://seekingalpha.com/article/4161216-10-percent-yield-20-straight-distribution-hikes-big-deal-adding-growth-2018?auth_param=i4ud:1dchhc9:b53de26eeb98eb634608806b500a9fbd&uprof=46

[jugs]

Haven't posted here since the first week of the month so, herewith.....


Adding things up as I explained in a post on the DK board earlier this morning, I'm of the belief that anything that can happen in this market may well do just that, and sooner than we'd like. My overriding concern is that of protecting my ability to reorganize when the market takes a serious tumble for the worse. It will happen, I'm absolutely positive. And now is the perfect time to be prepared and it calls for preparing.

Thus it is that I just sold 300 DKL out of my former 700 units position. I lost a little on this trade but that's not propelling me, not in the least. What I'm seeing is that I no longer have any trust in the integrity of DK's management team. They didn't hesitate to screw us ALD@W unitholders out of our last two distributions prior to the February 7th completion of the merger with ALON USA.

And now as I move into more and more cash, I'm selling off assets in order to be in position to take advantage of any partial market collapse coming our way. As explained in the post at the DK board, I typically will maintain about $20,000 in dry powder in a checking account working in tandem with my Ameritrade brokerage account. It's an ACH-enabled account---meaning that I can process electronic cash transfers free of charge by authorizing either the brokerage or the bank to effect any desired transaction. ACH= Automatic Clearing House.

As of this moment I'm holding $150,000 in cash in the checking account. I've never maintained that high a level of cash readiness before, not in nearly a quarter century of depending upon the stock market for my sustenance.

In selling off part of my DKL positions, I'm setting cash aside as already stated. More notable than that, however, is my not trusting DK to act in my best interests. For that reason I'm no longer prepared to stand with the company.

Earlier on, I sensed ALDW assets would be dropped down into DKL. DK has very recently affirmed that this would be the case. But as I think about it, I'm realizing that DKL will never be anything more than an opportunity for management to enrich itself through the usual corporate means. It will probably occur on the back of holding DKL responsible for more than true drop-down values, thus---once again---enabling DK (the parent) to pimp with DKL both the bait and the victim. And for this reason I'm leaning towards vacating all things "DK" in their completeness.

This is not a company I can respect. Values are everything for me in my world. When I find I can't be comfortable in my skin and in the environments I inhabit, it's time for me to change my skin or my environment.

DKL is definitely not the company I'd earlier envisaged. And I don't believe it can rise to a higher standard as it's led by the same folks who never saw fit to publicly address responsibility for the issue of ALDW's final two distributions.

This is dirty business even for this retired Investor Relations VP.

My best to all here! I wish I had a happier message but it is what it is.

[jugs]

Just now posted the below as it's proof positive that we former ALDW unitholders are, indeed, entitled to our final two distributions. Following is an exact cope and paste from the SEC closing material officially declaring the completed merger and terms and conditions therein:

(The highlighting is mine.)

Busy going through SEC filings affecting us as owners of (the formerly recognized) ALDW and now officially Delek (DK).

This will be found in the final explanation of terms and conditions surrounding the merger:


Rights of Holders of MLP Public Units. Each MLP Public Unit, upon being converted into the right to receive the Merger Consideration pursuant to this Section 2.1(c), shall cease to be outstanding and shall be canceled and retired and shall cease to exist, and each Holder of such MLP Public Units immediately prior to the Effective Time shall thereafter cease to be a limited partner of MLP or have any rights with respect to such MLP Public Units, except the right to receive the Merger Consideration and any distributions to which former Holders of MLP Public Units become entitled all in accordance with this Article II upon the Surrender of (A) a certificate that immediately prior to the Effective Time represented MLP Public Units (an “MLP Certificate”) or (B) uncertificated MLP Public Units represented by book-entry (“Book-Entry MLP Common Units”), together with such properly completed and duly executed Letter of Transmittal and such other documents in accordance with Section 2.2.

[jugs]

To all here who endured the big swallow with ALDW units converting to DK:

Following is a post I just placed at the ALDW board. Please read through it carefully and follow up as you can:


My first call to Investor Relation (Keith Johnson at Delek: 615-435-1366 occurred on Monday of this week, 2/26/18.

I placed my second call to him today at 2:00 pm. I'm keeping a strict record of my calls so I can mount a campaign of anger if he doesn't return my calls in another week or so. This is ammo in case we need to pursue a legal arrangement. I doubt it will be necessary but we never know.

Just called Ameritrade and was told to call back on Monday and speak with "Corporate Actions or Reorganization." These represent specific channels that should have more information such as we want.

Please use this board for addressing ALDW final distributions. Begin your post with my IHUB name: Jugs:

This will make it easier for me to retrace my steps as I collect your individual experiences as we try to work through this joint effort.

Thanks, everybody!

[jugs]

Excellent!

Your post (90) is now heading up my list, preceded only by my own. March 2nd is critical as it defines the launching of our inquiry. If we are ignored altogether, the date range of protest looms ever larger.

The format you've used is perfect. Thank you.

There's something else we can all do:

Call your brokerage and ask if they can add color to this. After all, they are the pipeline for distributions.

More to happen...later.

[harkmi]

jugs et al,
Made the requested call on ALDW to Keith Johnson. Mentioned that I was an ALDW holder of 7,000 shares upon the Big Swallow. Asked when we could expect our 2 distributions promised in the conference call recently for DK (also own 1,000 shares DKL). Gave name and number for contact.
GLTA!

[pete807]

Yup we know but it is quite clear by today's price action that we would be in better shape here right now if everyone saw the same rosy outlook. Things tend to level over time like water and gravity.

I am by no means a lemming and hold in spite of efforts to scare longs... I don't scare about stocks very easily. However it must work on some because it is a common tactic.

I am more likely to hold well after many would sell to bank profits. `

My picture appears next to the phrase bag holder in the books... Still running ahead though...:0)

[jugs]

Following is a post I just placed at the ALDW board. We all need to read it and act upon it, please! Thank you for taking responsibility.

Everyone of us who held ALDW prior to the big swall need to call Investor Relation at Delek and ask whatever happened to the final two distributions? Uzi stated in print that these would be awarded.

Call:

Kieth Johnson @ 615-435-1366.

Just ask when the distributions will be issued, it's that simple.

If you get the answering machine as I did, leave your name, telephone number and the question: Where are the two final distributions for ALDW unitholders?
Do this and you'll be doing all of us an important service.

Please get back to me when you've done your good deed. I'll keep a record and then take steps after two weeks or so. For the record, I've not received a return call from MR. Johnson following my call on Monday morning at 7:30am, an hour before the DK conference call.

Thanks, folks!

Those of us due money will relax when these loose ends have been extinguished.

[jugs]

Volume has edged up, that's a good sign. But the downward pressure is not to be believed. We've seen these mounted efforts before, I'm recalling NGL. I think that particular campaign has now officially ended, happily.

I read through much of DKL's latest filing. The numbers are wonderful. I listened to Uzi's remarks during the CC, he's upbeat as could be. And this month dropdowns into DKL will be completed. Financial terms are stated clearly. Add everything up---plus the high yield, increasing distribution base, and I can't find anything not to like.

[pete807]

$31 back to $28.95 on above average volume of 54,000. -$2.05 per unit.. more buying than selling according to Ihub stats, so ???
Some listed buys must really be a lot of BORROWING, i.e. shorting. Hope to see a squeeze!
-6.6 % today
Maybe a late rally, 10 minutes left......

[pete807]

I would also be a buyer at $27... After hours it traded back to $31.
But I agree with this and wait for mid quarter dip:

DKL isn't above the radar for most people And those are the same peeps who don't know what dropdowns are nor would they have knowledge of parent DK's intention of executing

Volume is my only concern as the yield is great! Until it catches up by way of news on said drop downs you admit go unseen by most,... and DCF/coverage rise, we may get to buy on a dip that low.
We have watched it drop on low volume, which is the reason liquidity matters! It is how the market works.
GLTA!

[jugs]

DKL isn't above the radar for most people And those are the same peeps who don't know what dropdowns are nor would they have knowledge of parent DK's intention of executing assets formerly held by ALDW.

If I had the money--- or if DKL were to drop back to $27-$28 region, I'd add on margin. I could feel the sparkle in Uzi's voice when he spoke of the dropdowns and his vision for DKL. I'm positive I'm right on this one.

[pete807]

I have been posting caution here due to low volume. 4000 units traded today means poor liquidity for our positions. Wait for volume to improve if you want to add. The company says they are moving.. Their stock says show me! Dow down 500 now.

DKL -$1 or -3% General market correction drags even the best down with it.

DKL is currently in the never mind pile.

[pete807]

If the logistics drop down deal is closing March 1st... We should then be informed about money owed to former holders of those assets then as well. They must be aligning the books..

DKL:
Over 10% off the high of early January and the volume remains too low here IMO.
It is what it is...
A solid rising performer paying over 9% with plans to grow the distribution 10% per year.

Great news that is mostly ignored by the market, so I will be glad to hold, and wait. Much depends on direction of crude...
In a rising $ period the storage tank gallons value appreciates well above holding costs added to purchase price.. We saw the opposite effect when crude dropped.

[pete807]

As we expected regarding logistic pieces of ALDW here are the details from The DKL CC:

The drop down of logistics assets from Delek US Big Spring refinery is expected to close in March with an effective date of March 1. These assets consist of storage tanks and terminals. In addition, a new marketing agreement would be entered into between Delek and Delek Logistics for projects for Delek at Big Spring.

The annual expected EBITDA from these assets is approximately $40.2 million. The purchase price is approximately $315 million and will be paid with cash on hand and borrowings on our revolver.

We continue to focus on creating long-term value for our unit holders and believe that the joint venture, proposed Big Spring drop down and growth initiative should continue to support our annual distribution growth per limited partner unit of at least 10% through 2019, while maintaining good distribution coverage.

[pete807]

I kept the 500 units here and used the parent GP shares that may or may not increase their small dividend of under 2%. It was a calculated risk reward in reverse, lol.

The result was a double on money I had invested in the refinery MLP before the merger. I think the DK shares will rise more from here but the change I made will very likely increase the potential profit on reinvestment. So I took the profit.
GLTA!
-pete

[jugs]

There are other subjects DK apparently views as better fitting in terms of dropdowns destined to land in DKL. These sales should not be viewed with disdain. Rather, I'm seeing a narrower focus which will explain DK's longer term mission.

Also, DKL is probably not geared to accommodate major asphalt capacity. I'm thinking DK wants to avoid increasing capex at a time when they're doing their best to assimilate ALJ and ALDW businesses. They've been explicit regarding the subject of dropdowns so I'd imagine we're talking about the logistics side of things without a splayed approach.

Too, we shouldn't ignore that DK expects to use the sales proceeds to strengthen the balance sheet while also better securing shareholder interests. That tells me we should expect a b ump up in dividends.

And I have a hunch that those of us sticking to my rule of liquidating no more than half of a position when there's a lack of visibility are very pleased with today's market action. Today's rise of more than $1 is very strong, indeed.

[WallStreetRocker]

CatdaddyRt do you have any comments about the sale of the 4 asphalt plants Dk is selling?...So no drop down into DKL for those 4 plants for us...Do you think its a good move? You know the business, what do you think?...Anyone else have any comments about this sale?...Holding 1400 DKL @ 29.8732...GLTA!!!

[jugs]

Contrary to ever-flowing nonsensical opinions regarding the potential for dropdowns of ALDW assets into DKL, we now get this from DK's head honcho:

With the completion of the acquisition of Alon USA Partners on February 7, 2018, we expect to move forward with the drop down of the Big Spring assets during the first half of 2018, subject to the completion of the customary conditions related to the drop down process."

I view this as the ideal time to begin considering holding larger stakes in DKL. I added a few a couple of weeks ago but still have just 700 units. If I can swing it, I'll be adding pronto, before the community catches up to the rest of us here.

Happy hunting!

[harkmi]

Yup, got mine too $580! ($0.725) Very nice

[jugs]

Just got my distribution pertaining to DKL. Nice!

[pete807]

Or maybe it was about ex date... which is today.

Closed $32,50 yesterday... and had to open -D (-.725 or $31.77). First trade was $31.70. Bounced to $31.95 before settling down at $31.30 on the normal low volume of this one.

Only 2 MMs on L2 ask side. 39.40 and 39.55.
Streaming trades show $31.40 on 10K volume a bit above normal, but crawling upward on anticipation.
They don't release earnings till 2/26 after close.
Slowly it goes toward a future of increased assets!

[jugs]

I think people are thinking it was oversold. Also, the controversial subject of ALDW-inspired dropdowns is soon going to come into focus.

[WallStreetRocker]

1.10 spike at the eod!!! Any news?...GLTA!!!

[jugs]

While I'm in the believers' camp when it comes to dropdowns filtering into DKL, I have a feeling (and nothing more) that it could take several months before we find dropdowns actually occurring. Proposed litigation, if it were to catch a tailwind, would add voluminous sand into our TOP*.

The legal entanglement would be strenuous at the least, were a band of dissenters to gain traction requiring a mess of undoing rivaling that of rebuilding a pound of pecan shells to their former body shapes. I'd prefer to ride things out for several months until the fog has lifted.

It's enough for me that management has declared there would be dropdowns. Also, the distributions are growing, albeit rather slowly, but at least we see unitholder respect in action.

Those of us who were ready to take on the challenge and diverted ALDW capital into DK and DKL are enormously richer for it.

I'll be patient. No axe to grind here, just blissful summer breezes. And I'm hoping to find I can add a few more DKL units along the way.

Good fortunes, all!


*Tank Of Prosperity

[pete807]

I agree, Thanks for the post, and distribution info. We will soon find out the DK drop down plan.

[Alpine600]

Distribution raised a penny to $0.725 payable Feb 12. They have raised it roughly the same amount every quarter going back at least to 2013. Certainly no game changer but I’ll take it. Would sure like to see the ALDW distribution included in this figure going forward :)

[pete807]

Good AFTERNOON (here), but it's morning in many places yet. Hawaii for instance.

Our ideas on all those companies we moderate are expressed daily, in unison mostly positive, and for me at least, I won't add to DKL until: 1. I see the volume increase, and 2. The parent adds the expected asset dropdowns which will add to both volume and DCF.

Good for you you made money on Google. I am a critic of GOOG as I dislike the mining they are constantly doing to my emails and every communication to sell the data to advertisers. I have installed adblock software for relief from them. I wouldn't short GOOG either cuz I don't short companies, and concentrate on positive successes. Google's success comes at a price to some reluctantly mined by their software. I will miss all the gains by the top 5 drivers of the market at their bubble bursting highs! FB, GOOG, AMZN, NFLX, AAPL. Plus I do not think Tesla with no earnings ever will survive the big carmakers move into EV. Sadly it will end imo similar to its namesake Nicola Tesla. Who pays for the big hiccups with SpaceEx?... WE do! Elon Musk wants to return to Mars... where he is from.