Delek Logistics Partners (DKL)

[jugs]

In your previous post you asked about the possibility of DK swallowing DKL and the latter then goes the way of the dino-sOur. I responded in a separate post that got swallowed itself by sighber space, herself.

Again, then.....

DKL is the child of DK. As such, it becomes the ideal place for dropdowns that don't fit the core focus of Mummy and Daddy. It opens doors to more effective ledger work and in the final analysis, DK stands to benefit more than any other unitholder as it is the General Partner which I read as the prevailing PIP* This means DK will be enjoying quarterly paydays at the same 10% yield basis that we stand to receive.

I'm liking DKL more and more as I become more comfortable with it. I dismiss the yield for the most part as I expect to do better than that via appreciation but many investors depend upon yields and I need to remain sensitive to that reality.

Another item here:

Logistics is not DK's only focal point. But it is central to DKL. Look at a basic brokerage representation of each company's fundamentals and you'll be better able to assign your own value to various parts of those assets now on the table owing to ALON's pending swallow. I do this, myself, repeatedly--throughout each day as this is my fulltime job.

I hope this helps you.


*Partner in power