SM Energy vs Delek Logistics

This page compares SM Energy and Delek Logistics, outlining how their business models, financial performance, and market context compare and contrast in a clear, accessible way. It presents neutral information to help readers understand each company's position within the energy sector. Educational content, not financial advice.

This page compares SM Energy and Delek Logistics, outlining how their business models, financial performance, and market context compare and contrast in a clear, accessible way. It presents neutral in...

Comparison Snapshot

Key Financial Metrics

SM

Metric

DKL

$2.20B

Market Cap

$2.61B

89.12%

Potential Profit

-11.96%

Buy

Analyst Rating

Buy

Investment Analysis

SM Energy

SM

Pros

SM Energy has demonstrated strong operational performance with resilient production margins and financial outperformance in Q3 2025.
The company maintains a robust cash balance of over $160 million and improved leverage, indicating financial discipline and stability.
Unanimous reaffirmation of its $3.0 billion borrowing base by lenders reflects strong banking partners' confidence in SM Energy's value-creation strategy.

Considerations

SM Energy’s stock price forecast signals a potential decline of approximately 18% by year-end 2025, indicating bearish market sentiment.
The company's beta of 2.30 suggests high volatility and sensitivity to market fluctuations, raising investment risk.
Despite revenue growth, earnings showed a slight decline recently, reflecting some profitability pressure despite increased production.

Delek Logistics

DKL

Pros

Delek Logistics reported strong Q2 2025 financials with an 18% year-over-year increase in Adjusted EBITDA and consistent net income generation.
The company has achieved its 50th consecutive quarterly distribution increase, demonstrating a solid track record of returning capital to investors.
Recent strategic investments, including completion of a new gas processing plant and a $700 million debt offering, have strengthened liquidity above $1 billion.

Considerations

Delek Logistics’ exposure to regulatory factors, such as reliance on EPA approvals for refinery exemptions, could impact operational stability.
As a Master Limited Partnership focused on midstream assets, Delek Logistics faces energy sector cyclicality and commodity price risks.
Growth is partly reliant on acquisitions and infrastructure expansions, which carry execution risks and may pressure future capital expenditure.

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About The Companies

SM Energy (SM)

SM Energy Company (ticker: SM) is a US-focused independent oil and gas exploration and production company that develops and produces crude oil, natural gas liquids and natural gas from onshore unconventional reservoirs. With a market capitalisation of roughly $2.37 billion, SM is smaller than major integrated peers and typically more sensitive to oil and gas price cycles and operational execution. Investors commonly monitor production volumes, realised commodity prices, unit operating costs, capital expenditure and balance-sheet metrics to gauge performance. Key risks include commodity price volatility, permitting and regulatory shifts, operational setbacks and the capital-intensive nature of the business. This summary is for general educational purposes only and not personalised investment advice. Values can fall as well as rise; suitability depends on an individual’s circumstances and investors should consult a regulated adviser before acting.

Delek Logistics (DKL)

Delek Logistics Partners LP (DKL) is a US-listed master limited partnership operating in the midstream oil and gas sector. It owns and operates pipelines, terminals and storage assets that move and store crude oil and refined products, serving refiners and marketers. Revenues are driven by throughput volumes, terminal utilisation and contractual fee structures rather than commodity prices alone, though demand and refining activity influence performance. With a market capitalisation around $2.36bn, DKL has historically attracted investors seeking distribution income, but payouts can fluctuate with business conditions and capital needs. Key risks include exposure to commodity cycles, regulatory and environmental requirements, counterparty concentration and leverage. Investors should note potential tax reporting differences (K‑1 forms) and that this is general educational information, not personalised investment advice; values can rise and fall and income is not guaranteed.

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Which Baskets Do They Appear In?

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