Replies to post #80 on Delek Logistics Partners (DKL)

[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.

[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