DKL
DELEK LOGISTICS PARTNERS, LP
stock NYSE

# TLDR
Delek ($DK) just received **$500M–$900M cash relief** from EPA SRE approvals, nearly half its market cap. Cash pile: $735M. Buyback authorization: $565M. Dividend: 6.3%. Float: only 60M shares, with 111% locked ownership and 13% short interest. Diesel cracks at $32–$42/bbl provide operating tailwinds. DKL midstream stake (\~$1.5B NAV) comes free.
At $32, DK trades below SOTP, even after a 144% rally from 2024 lows. Wolfe Research upgraded to Outperform with a **$40–$70 target**, not even counting DK’s $12B refining business. Any rerate, further refund, or buyback acceleration could move DK rapidly higher.

There are only a few Div ETf worth investing in , imo . I research the hell out of them. The best would be NVG for an 8% yield, completely tax free and very little risk. Next would be DKL, this one will pay you 10% , very reliable and very little risk. But the catch is that you will pay a crap load of tax when you sell it.
For this reason alone I like NVG better. No tax and simple. There are others such as NAD, STWD and a handful of others.

# Key Numbers
* **Cash Balance:** $735M
* **Market Cap:** $1.7B
* **Debt:** $275M (algos misprice $3B because of consolidated DKL debt DK isn’t liable for)
* **Repurchase Authorization:** $565M (enough to retire most of the 60M float)
* **Dividend Yield:** 6.3%
* **Float:** 60M shares, with **111% institutional + insider locked ownership**
* **Short Interest:** 13%
* **Revenue:** $12.2B TTM
* **New 52-week high:** $32.38 today
# Catalysts
# 1. RIN SRE Refunds: Cash Injection
* Wolfe and Bloomberg model DK’s SRE refunds at **$894M–$1.78B** depending on % approvals.
* Already approved exemptions 2019–2024 conservatively yield **$500M+** practical cash relief.
* That’s 40–60% of market cap unlocked, with potential to double depending on future rulings.
**By Refinery:**
* Tyler, TX: Full for 2021, 2022, 2024; partial 2023
* Big Spring, TX: Partial 2021–22; full 2023–24
* Krotz Springs, LA: Full 2021; partial 2022; ineligible 2024
* El Dorado, AR: Full 2021
# 2. Buyback Machine
* $390M cash freed from c-store sale.
* $500M authorization approved, equal to one-third of market cap.
* At today’s float size, execution could rapidly squeeze shorts and institutions.

I don’t see E&P MLPs discussed often in this Sub. There are several with particularly attractive yields, and solid businesses. Some of the most attractive are EPD, ET, WES, DKL.
What are your views on these businesses? Worthy investments for the yield/total return?
Pros & Cons?

Okay regards, I've got the most absolute smooth-brained play for you.... **a small oil refiner getting free money from the government.**
I haven't posted here since the covid days of making big $ on everything that moved, but I'm back with a monster that can't lose.
Delek ($DK) is a small oil refiner with 4 refineries that is wildly mispriced and receiving boatloads of free cash from Uncle Sam (probably Uncle Trump, but whatever!)
Right now it’s a **sum-of-the-parts + catalyst play** hat nobody’s priced right.
**The Setup:**
* Market Cap: $1.7B
* Cash: $735M (yes, nearly half MC in cash already)
* Buyback Authorization: $565M (could retire a fat chunk of the 60M float)
* Dividend: 6.3%
* Float: 60M, SI: 13%
* Ownership: 111% locked institutional/insider (float is *tight*)
* Revenue: $12.2B
* Insiders have been buying.
**The 🚀 Catalyst (RIN/SRE Refunds):**
The EPA just approved multiple years of Small Refiner Exemptions (SREs).
What the fuck are these, you ask? It's free money for small refiners who are exempted from a bunch of EPA renewable fuel standard nonsense aimed at the big boys.
* Refund value: **$900M–$1.8B+** (Bloomberg/Wolfe estimate)
* That’s nearly the entire market cap in straight cash refunds
* This isn’t “maybe” - approvals already rolled in on 8/22 by refinery (all 4 refineries got partial to full refunds). Only unknown is the exact amount.
**Why it matters:**
DK can now fund buybacks with literal free money. Every buyback dollar further shrinks the already tiny float.
**Extra juice:**
* DK owns **64% of DKL**, a midstream worth \~$1.5B (yeah, you’re basically getting this for free because the market hates that the businesses are intertwined, but you're getting a ton of cashflow for free)
* Diesel margins are ripping – inventories at 20-yr lows, exports >1.5M b/d, cracks running $32–$42/bbl. DK’s heavy diesel slate = margin goldmine
* Lots of insider buys from earlier this year, including by the CEO
**Analysts:**
* Wolfe/Bloomberg both modeled SRE refunds at $894M–$1.78B. Even conservatively, Wolfe says 1 year’s relief = +20% stock. Full multi-year approvals? **Double DK.**
**Chart check:**
* Hit new 52w highs... basically every day in the last week
* Stock already run from $22 to $32 since the rebates were approved, but it's still super undervalued
**Now... why hasn't it moved yet?**
The refunds have been approved, but the exact $ has not yet been announced publicly, so there is still time to buy, but NOT MUCH. Once people realize how big the refunds are, this will probably run up to $50-60 fast. If $DK goes through with buybacks, we could see $100+ by December (earnings is in November which will bring clarity on refund amounts).
**Price target:** $60-10
**How to play it:** You're call, but I've got both ITM and OTM options. To be safe, take options after the earnings date of of 11/5/25, which should triggered the rerating if it hasn't happened yet by then.
https://preview.redd.it/0qjcvl4t77nf1.png?width=345&format=png&auto=webp&s=5fb6804a1b6ca52fe9b5919ebfa69b0e5f90f79f
**My positions:**
**TLDR**
* $DK is a small oil refiner trading under it's sum of the parts (cash value + DKL stake)
* Incoming government refund of $900M-$1.8B will double the market value when details are announced
* Buybacks ($565M authorized) could make this go parabolic
* Dividend 6.3%.
* SI 13%.
* Diesel tailwinds
* Insiders buying
This thing already ripping but with free government money hitting and buybacks kicking in, $100+ isn’t crazy. 🤝