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...
Which Baskets Do They Appear In?
OPEC+ Supply Squeeze: Could Shale Stocks Surge?
OPEC+ has decided to limit its oil production increase, causing a climb in global oil prices. This creates a potential investment opportunity in oil and gas companies, especially U.S. shale producers, who can benefit from the higher prices.
Published: October 10, 2025
Explore BasketThe Great Energy Realignment
Recent US tariff threats against buyers of Russian oil and a major new energy deal with the EU are redirecting global energy demand. This creates a prime opportunity for U.S. energy producers and exporters poised to meet Europe's growing needs.
Published: July 31, 2025
Explore BasketWhich Baskets Do They Appear In?
OPEC+ Supply Squeeze: Could Shale Stocks Surge?
OPEC+ has decided to limit its oil production increase, causing a climb in global oil prices. This creates a potential investment opportunity in oil and gas companies, especially U.S. shale producers, who can benefit from the higher prices.
Published: October 10, 2025
Explore BasketThe Great Energy Realignment
Recent US tariff threats against buyers of Russian oil and a major new energy deal with the EU are redirecting global energy demand. This creates a prime opportunity for U.S. energy producers and exporters poised to meet Europe's growing needs.
Published: July 31, 2025
Explore BasketInvestment Analysis
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.
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.
Why invest with Nemo?
Zero Commission
Trade stocks, ETFs, and more with zero commission. Keep more of your returns.
Trusted & Regulated
Part of Exinity Group 2015, serving over a million customers globally.
6% Interest on Cash
Earn 6% AER on uninvested cash with daily interest payments.
Discover More Comparisons
SM Energy vs Patterson-UTI Energy
SM Energy vs Patterson-UTI Energy
SM Energy vs Delek US
SM Energy vs Delek US
SM Energy vs Oceaneering
SM Energy vs Oceaneering: a quick comparison