0001694426false00016944262024-05-072024-05-07
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
May 7, 2024
Date of Report (Date of earliest event reported)
DELEK US HOLDINGS, INC.
(Exact name of registrant as specified in its charter)
| | | | | | | | | | | |
Delaware | 001-38142 | 35-2581557 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
| | |
| | | |
310 Seven Springs Way, Suite 500 | Brentwood | Tennessee | 37027 |
(Address of Principal Executive) | | | (Zip Code) |
(615) 771-6701
(Registrant’s telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| | | | | | | | |
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| Common Stock, $0.01 par value | DK | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
☐
Item 2.02 Results of Operations and Financial Condition
On May 7, 2024, Delek US Holdings, Inc. (the “Company”) announced its financial results for the quarter ended March 31, 2024. The full text of the press release is furnished as Exhibit 99.1 hereto.
The information in the attached Exhibit is being furnished pursuant to Item 2.02 “Results of Operations and Financial Condition” on Form 8-K. The information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, each as amended, except as shall be expressly set forth by specific reference in such filing.
Item 7.01 Regulation FD Disclosure
On May 7, 2024, the Company will use the materials included in Exhibit 99.2 (the "Earnings Call Slides") to this report in connection with the first quarter earnings call. The Earnings Call Slides are incorporated into this Item 7.01 by this reference and will also be available on the Company's website at www.delekus.com.
The information in this Item 7.01 is being furnished, not filed, pursuant to Regulation FD. Accordingly, the information in Item 7.01 of this report will not be incorporated by reference into any registration statement filed by the Company under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference. The furnishing of the information in this report is not intended to, and does not, constitute a determination or admission by the Company that the information in this report is material or complete, or that investors should consider this information before making an investment decision with respect to any security of the Company or any of its affiliates.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| | | | | | | | |
| | |
| | |
| | |
| | |
| 104 | | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| | | | | |
Dated: May 7, 2024 | DELEK US HOLDINGS, INC
|
| |
| /s/ Reuven Spiegel |
| Name: Reuven Spiegel |
| Title: Executive Vice President and Chief Financial Officer (Principal Financial Officer) |
Delek US Holdings Reports First Quarter 2024 Results
•Net loss of $32.6 million or $(0.51) per share, adjusted net loss of $26.2 million or $(0.41) per share, adjusted EBITDA of $158.7 million
•In 2024, successfully executed Delek Logistics debt and equity offerings:
◦Improved liquidity to approximately $800 million
◦Added 3.6 million DKL units for a total 47.2 million outstanding units and increased volume activity
◦Improved leverage ratio to 4.01x from 4.34x at year-end 2023
◦Diluted DK ownership to 72.7%
•Paid $15.7 million of dividends and increased regular quarterly dividend to $0.250 per share in May
BRENTWOOD, Tenn.-- May 7, 2024 -- Delek US Holdings, Inc. (NYSE: DK) (“Delek US”, "Company") today announced financial results for its first quarter ended March 31, 2024.
“We are proud of our operational excellence progress that reflects favorable EHS performance trends,” said Avigal Soreq, President and Chief Executive Officer of Delek US. “We navigated regional demand headwinds early in the quarter and delivered solid operational performance. This resulted in a quarter that was in line with our guidance.”
"On the strategic front, we made significant headway," Soreq continued. "Delek Logistics improved its financial strength and flexibility with the debt and equity offerings executed during the quarter. The $800 million of liquidity and additional volume activity in the units enhances our opportunities with DKL. In addition, we initiated a process to unlock the value inherit in the retail business. We are well positioned to execute the sum of the parts initiative and realize value for our stakeholders."
"Looking ahead, we will continue to execute on our priorities of running safe and reliable operations, enhancing our portfolio with strategic growth projects, and delivering shareholder value while maintaining our financial strength and flexibility,” Soreq concluded.
Delek US Results
| | | | | | | | | | | | | | | | | | |
| | | | Three Months Ended March 31, |
| ($ in millions, except per share data) | | | | | | 2024 | | 2023 |
| Net (loss) income attributable to Delek US | | | | | | $ | (32.6) | | | $ | 64.3 | |
| Diluted (loss) income per share | | | | | | $ | (0.51) | | | $ | 0.95 | |
| Adjusted net (loss) income | | | | | | $ | (26.2) | | | $ | 92.7 | |
| Adjusted net (loss) income per share | | | | | | $ | (0.41) | | | $ | 1.37 | |
| Adjusted EBITDA | | | | | | $ | 158.7 | | | $ | 284.6 | |
Refining Segment
The refining segment Adjusted EBITDA was $106.1 million in the first quarter 2024 compared with $230.2 million in the same quarter last year, which reflects other inventory impacts of $(1.4) million and $77.1 million for first quarter 2024 and 2023, respectively. The decrease over 2023 is primarily due to lower refining crack spreads, partially offset by higher sales volume. During the first quarter 2024, Delek US's benchmark crack spreads were down an average of 22.2% from prior-year levels.
Logistics Segment
The logistics segment Adjusted EBITDA in the first quarter 2024 was $99.7 million compared with $91.4 million in the prior year quarter. The increase over last year's first quarter was driven by strong contributions from Delaware Gathering systems in addition to annual rate increases.
Retail Segment
For the first quarter 2024, Adjusted EBITDA for the retail segment was $6.5 million compared with $6.4 million in the prior-year period.
Corporate and Other Activity
Adjusted EBITDA from Corporate, Other and Eliminations was a loss of $(53.6) million in the first quarter 2024 compared with a loss of $(43.4) million in the prior-year period. The increased losses were driven by higher employee related expenses.
Shareholder Distributions
On May 2, 2024, the Board of Directors approved the regular quarterly dividend of $0.25 per share that will be paid on May 24, 2024 to shareholders of record on May 17, 2024.
Liquidity
As of March 31, 2024, Delek US had a cash balance of $753.4 million and total consolidated long-term debt of $2,496.9 million, resulting in net debt of $1,743.5 million. As of March 31, 2024, Delek Logistics Partners, LP (NYSE: DKL) ("Delek Logistics") had $9.7 million of cash and $1,601.2 million of total long-term debt, which are included in the consolidated amounts on Delek US' balance sheet. Excluding Delek Logistics, Delek US had $743.7 million in cash and $895.7 million of long-term debt, or a $152.0 million net debt position.
First Quarter 2024 Results | Conference Call Information
Delek US will hold a conference call to discuss its first quarter 2024 results on Tuesday, May 7, 2024 at 10:00 a.m. Central Time. Investors will have the opportunity to listen to the conference call live by going to www.DelekUS.com and clicking on the Investor Relations tab. Participants are encouraged to register at least 15 minutes early to download and install any necessary software. Presentation materials accompanying the call will be available on the investor relations tab of the Delek US website approximately ten minutes prior to the start of the call. For those who cannot listen to the live broadcast, the online replay will be available on the website for 90 days.
Investors may also wish to listen to Delek Logistics’ (NYSE: DKL) first quarter 2024 earnings conference call that will be held on Tuesday May 7, 2024 at 11:30 a.m. Central Time and review Delek Logistics’ earnings press release. Market trends and information disclosed by Delek Logistics may be relevant to the logistics segment reported by Delek US. Both a replay of the conference call and press release for Delek Logistics will be available online at www.deleklogistics.com.
About Delek US Holdings, Inc.
Delek US Holdings, Inc. is a diversified downstream energy company with assets in petroleum refining, logistics, pipelines, renewable fuels and convenience store retailing. The refining assets consist primarily of refineries operated in Tyler and Big Spring, Texas, El Dorado, Arkansas and Krotz Springs, Louisiana with a combined nameplate crude throughput capacity of 302,000 barrels per day. Pipeline assets include an ownership interest in the 650-mile Wink to Webster long-haul crude oil pipeline. The convenience store retail segment operates approximately 250 convenience stores in West Texas and New Mexico.
The logistics operations include Delek Logistics Partners, LP (NYSE: DKL). Delek Logistics Partners, LP is a growth-oriented master limited partnership focused on owning and operating midstream energy infrastructure assets. Delek US Holdings, Inc. and its subsidiaries owned approximately 72.7% (including the general partner interest) of Delek Logistics Partners, LP at March 31, 2024.
Safe Harbor Provisions Regarding Forward-Looking Statements
This press release contains forward-looking statements that are based upon current expectations and involve a number of risks and uncertainties. Statements concerning current estimates, expectations and projections about future results, performance, prospects, opportunities, plans, actions and events and other statements, concerns, or matters that are not historical facts are “forward-looking statements,” as that term is defined under the federal securities laws. These statements contain words such as “possible,” “believe,” “should,” “could,” “would,” “predict,” “plan,” “estimate,” “intend,” “may,” “anticipate,” “will,” “if", “potential,” “expect” or similar expressions, as well as statements in the future tense. These forward-looking statements include, but are not limited to, statements regarding throughput at the Company’s refineries; crude oil prices, discounts and quality and our ability to benefit therefrom; cost reductions; growth; scheduled turnaround activity; projected capital expenditures and investments into our business; the performance and execution of our midstream growth initiatives, including the Permian Gathering System, the Red River joint venture and the Wink to Webster long-haul crude oil pipeline, and the flexibility, benefits and the expected returns therefrom; projected benefits of the Delaware Gathering
Acquisition, renewable identification numbers ("RINs") waivers and tax credits and the value and benefit therefrom; cash and liquidity; emissions reductions; opportunities and anticipated performance and financial position.
Investors are cautioned that the following important factors, among others, may affect these forward-looking statements. These factors include, but are not limited to: uncertainty related to timing and amount of future share repurchases and dividend payments; risks and uncertainties with respect to the quantities and costs of crude oil we are able to obtain and the price of the refined petroleum products we ultimately sell, uncertainties regarding future decisions by the Organization of Petroleum Exporting Countries ("OPEC") regarding production and pricing disputes between OPEC members and Russia; risks and uncertainties related to the integration by Delek Logistics of the Delaware Gathering business following its acquisition; Delek US' ability to realize cost reductions; risks related to Delek US’ exposure to Permian Basin crude oil, such as supply, pricing, gathering, production and transportation capacity; gains and losses from derivative instruments; risks associated with acquisitions and dispositions; acquired assets may suffer a diminishment in fair value as a result of which we may need to record a write-down or impairment in carrying value of the asset; the possibility of litigation challenging renewable fuel standard waivers; changes in the scope, costs, and/or timing of capital and maintenance projects; the ability to grow the Permian Gathering System; the ability of the Red River joint venture to complete the expansion project to increase the Red River pipeline capacity; the ability of the joint venture to construct the Wink to Webster long haul crude oil pipeline; operating hazards inherent in transporting, storing and processing crude oil and intermediate and finished petroleum products; our competitive position and the effects of competition; the projected growth of the industries in which we operate; general economic and business conditions affecting the geographic areas in which we operate; and other risks described in Delek US’ filings with the United States Securities and Exchange Commission (the “SEC”), including risks disclosed in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other filings and reports with the SEC.
Forward-looking statements should not be read as a guarantee of future performance or results and will not be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking information is based on information available at the time and/or management's good faith belief with respect to future events, and is subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statements. Delek US undertakes no obligation to update or revise any such forward-looking statements to reflect events or circumstances that occur, or which Delek US becomes aware of, after the date hereof, except as required by applicable law or regulation.
Non-GAAP Disclosures:
Our management uses certain “non-GAAP” operational measures to evaluate our operating segment performance and non-GAAP financial measures to evaluate past performance and prospects for the future to supplement our financial information presented in accordance with United States ("U.S.") Generally Accepted Accounting Principles ("GAAP"). These financial and operational non-GAAP measures are important factors in assessing our operating results and profitability and include:
•Adjusting items - certain identified infrequently occurring items, non-cash items, and items that are not attributable to or indicative of our on-going operations or that may obscure our underlying results and trends;
•Adjusted net income (loss) - calculated as net income (loss) attributable to Delek US adjusted for relevant Adjusting items recorded during the period;
•Adjusted net income (loss) per share - calculated as Adjusted net income (loss) divided by weighted average shares outstanding, assuming dilution, as adjusted for any anti-dilutive instruments that may not be permitted for consideration in GAAP earnings per share calculations but that nonetheless favorably impact dilution;
•Earnings before interest, taxes, depreciation and amortization ("EBITDA") - calculated as net income (loss) attributable to Delek US adjusted to add back interest expense, income tax expense, depreciation and amortization;
•Adjusted EBITDA - calculated as EBITDA adjusted for the relevant identified Adjusting items in Adjusted net income (loss) that do not relate to interest expense, income tax expense, depreciation or amortization, and adjusted to include income (loss) attributable to non-controlling interests;
•Refining margin - calculated as gross margin (which we define as sales minus cost of sales) adjusted for operating expenses and depreciation and amortization included in cost of sales;
•Adjusted refining margin - calculated as refining margin adjusted for other inventory impacts, net inventory LCM valuation loss (benefit) and unrealized hedging (gain) loss;
•Refining production margin - calculated based on the regional market sales price of refined products produced, less allocated transportation, Renewable Fuel Standard volume obligation and associated feedstock costs. This measure reflects the economics of each refinery exclusive of the financial impact of inventory price risk mitigation programs and marketing uplift strategies;
•Refining production margin per throughput barrel - calculated as refining production margin divided by our average refining throughput in barrels per day (excluding purchased barrels) multiplied by 1,000 and multiplied by the number of days in the period; and
•Net debt - calculated as long-term debt including both current and non-current portions (the most comparable GAAP measure) less cash and cash equivalents as of a specific balance sheet date.
We believe these non-GAAP operational and financial measures are useful to investors, lenders, ratings agencies and analysts to assess our ongoing performance because, when reconciled to their most comparable GAAP financial measure, they provide improved relevant comparability between periods, to peers or to market metrics through the inclusion of retroactive regulatory or other adjustments as if they had occurred in the prior periods they relate to, or through the exclusion of certain items that we believe are not indicative of our core operating performance and that may obscure our underlying results and trends. “Net debt,” also a non-GAAP financial measure, is an important measure to monitor leverage and evaluate the balance sheet.
Non-GAAP measures have important limitations as analytical tools, because they exclude some, but not all, items that affect net earnings and operating income. These measures should not be considered substitutes for their most directly comparable U.S. GAAP financial measures. Additionally, because Adjusted net income or loss, Adjusted net income or loss per share, EBITDA and Adjusted EBITDA, Adjusted Refining Margin and Refining Production Margin or any of our other identified non-GAAP measures may be defined differently by other companies in its industry, Delek US' definition may not be comparable to similarly titled measures of other companies. See the accompanying tables in this earnings release for a reconciliation of these non-GAAP measures to the most directly comparable GAAP measures.
| | | | | | | | | | | | | | |
| Delek US Holdings, Inc. |
Condensed Consolidated Balance Sheets (Unaudited) |
($ in millions, except share and per share data) |
| | March 31, 2024 | | December 31, 2023 |
| ASSETS | | | | |
| Current assets: | | | | |
| Cash and cash equivalents | | $ | 753.4 | | | $ | 822.2 | |
| Accounts receivable, net | | 831.7 | | | 783.7 | |
| | | | |
| Inventories, net of inventory valuation reserves | | 1,037.8 | | | 981.9 | |
| | | | |
| Other current assets | | 85.2 | | | 78.2 | |
| Total current assets | | 2,708.1 | | | 2,666.0 | |
| Property, plant and equipment: | | | | |
| Property, plant and equipment | | 4,736.4 | | | 4,690.7 | |
| Less: accumulated depreciation | | (1,932.1) | | | (1,845.5) | |
| Property, plant and equipment, net | | 2,804.3 | | | 2,845.2 | |
| Operating lease right-of-use assets | | 142.2 | | | 148.2 | |
| Goodwill | | 729.4 | | | 729.4 | |
| Other intangibles, net | | 291.0 | | | 296.2 | |
| Equity method investments | | 370.3 | | | 360.7 | |
| Other non-current assets | | 135.0 | | | 126.1 | |
| Total assets | | $ | 7,180.3 | | | $ | 7,171.8 | |
| | | | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | |
| Current liabilities: | | | | |
| Accounts payable | | $ | 1,732.3 | | | $ | 1,814.3 | |
| | | | |
| Current portion of long-term debt | | 14.5 | | | 44.5 | |
| Current portion of obligation under Inventory Intermediation Agreement | | — | | | 0.4 | |
| | | | |
| Current portion of operating lease liabilities | | 51.5 | | | 54.7 | |
| Accrued expenses and other current liabilities | | 808.2 | | | 771.2 | |
| Total current liabilities | | 2,606.5 | | | 2,685.1 | |
| Non-current liabilities: | | | | |
| Long-term debt, net of current portion | | 2,482.4 | | | 2,555.3 | |
| Obligation under Inventory Intermediation Agreement | | 492.7 | | | 407.2 | |
| Environmental liabilities, net of current portion | | 110.5 | | | 110.9 | |
| Asset retirement obligations | | 43.6 | | | 43.3 | |
| Deferred tax liabilities | | 269.6 | | | 264.1 | |
| Operating lease liabilities, net of current portion | | 104.7 | | | 111.2 | |
| Other non-current liabilities | | 35.2 | | | 35.0 | |
| Total non-current liabilities | | 3,538.7 | | | 3,527.0 | |
| Stockholders’ equity: | | | | |
| Preferred stock, $0.01 par value, 10,000,000 shares authorized, no shares issued and outstanding | | — | | | — | |
| Common stock, $0.01 par value, 110,000,000 shares authorized, 81,626,016 shares and 81,539,871 shares issued at March 31, 2024 and December 31, 2023, respectively | | 0.8 | | | 0.8 | |
| Additional paid-in capital | | 1,171.8 | | | 1,113.6 | |
| Accumulated other comprehensive loss | | (4.8) | | | (4.8) | |
| Treasury stock, 17,575,527 shares, at cost, at March 31, 2024 and December 31, 2023, respectively | | (694.1) | | | (694.1) | |
| Retained earnings | | 381.5 | | | 430.0 | |
| Non-controlling interests in subsidiaries | | 179.9 | | | 114.2 | |
| Total stockholders’ equity | | 1,035.1 | | | 959.7 | |
| Total liabilities and stockholders’ equity | | $ | 7,180.3 | | | $ | 7,171.8 | |
| | | | | | | | | | | | | | | | | | |
| Delek US Holdings, Inc. |
| Condensed Consolidated Statements of Income (Unaudited) |
| ($ in millions, except share and per share data) | | | | Three Months Ended March 31, |
| | | | | | 2024 | | 2023 |
| Net revenues | | | | | | $ | 3,227.6 | | | $ | 3,924.3 | |
| Cost of sales: | | | | | | | | |
| Cost of materials and other | | | | | | 2,797.3 | | | 3,439.6 | |
| Operating expenses (excluding depreciation and amortization presented below) | | | | | | 213.8 | | | 170.8 | |
| Depreciation and amortization | | | | | | 86.4 | | | 76.8 | |
| Total cost of sales | | | | | | 3,097.5 | | | 3,687.2 | |
| | | | | | | | |
| Operating expenses related to retail and wholesale business (excluding depreciation and amortization presented below) | | | | | | 25.8 | | | 27.0 | |
| General and administrative expenses | | | | | | 64.4 | | | 71.5 | |
| Depreciation and amortization | | | | | | 8.8 | | | 6.6 | |
| | | | | | | | |
| | | | | | | | |
| Other operating income, net | | | | | | (1.6) | | | (10.8) | |
| Total operating costs and expenses | | | | | | 3,194.9 | | | 3,781.5 | |
| Operating income | | | | | | 32.7 | | | 142.8 | |
| Interest expense, net | | | | | | 87.7 | | | 76.5 | |
| Income from equity method investments | | | | | | (21.9) | | | (14.6) | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| Other income, net | | | | | | (0.7) | | | (7.1) | |
| Total non-operating expense, net | | | | | | 65.1 | | | 54.8 | |
| (Loss) income before income tax (benefit) expense | | | | | | (32.4) | | | 88.0 | |
| Income tax (benefit) expense | | | | | | (7.2) | | | 15.8 | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| Net (loss) income | | | | | | (25.2) | | | 72.2 | |
| Net income attributed to non-controlling interests | | | | | | 7.4 | | | 7.9 | |
| Net (loss) income attributable to Delek | | | | | | $ | (32.6) | | | $ | 64.3 | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| Basic (loss) income per share | | | | | | $ | (0.51) | | | $ | 0.96 | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| Diluted (loss) income per share | | | | | | $ | (0.51) | | | $ | 0.95 | |
| Weighted average common shares outstanding: | | | | | | | | |
| Basic | | | | | | 64,021,988 | | | 66,951,975 | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| Diluted | | | | | | 64,021,988 | | | 67,369,374 | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | |
|
| Condensed Cash Flow Data (Unaudited) |
| ($ in millions) | | | | Three Months Ended March 31, |
| | | | | | | 2024 | | 2023 |
| Cash flows from operating activities: | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| Net cash provided by operating activities | | | | | | $ | 166.7 | | | $ | 395.1 | |
| Cash flows from investing activities: | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| Net cash used in investing activities | | | | | | (41.6) | | | (222.1) | |
| Cash flows from financing activities: | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| Net cash used in financing activities | | | | | | (193.9) | | | (149.3) | |
| Net (decrease) increase in cash and cash equivalents | | | | | | (68.8) | | | 23.7 | |
| Cash and cash equivalents at the beginning of the period | | | | | | 822.2 | | | 841.3 | |
| | | | | | | | |
| | | | | | | | |
| Cash and cash equivalents at the end of the period | | | | | | $ | 753.4 | | | $ | 865.0 | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Significant Transactions During the Quarter Impacting Results:
Restructuring Costs
In 2022, we announced that we are progressing a business transformation focused on enterprise-wide opportunities to improve the efficiency of our cost structure. For the first quarter 2024, we recorded restructuring costs totaling $3.2 million ($2.5 million after-tax) associated with our business transformation, which are recorded in general and administrative expenses in our condensed consolidated statements of income.
Other Inventory Impact
"Other inventory impact" is primarily calculated by multiplying the number of barrels sold during the period by the difference between current period weighted average purchase cost per barrel directly related to our refineries and per barrel cost of materials and other for the period recognized on a FIFO basis directly related to our refineries. It assumes no beginning or ending inventory, so that the current period average purchase cost per barrel is a reasonable estimate of our market purchase cost for the current period, without giving effect to any build or draw on beginning inventory. These amounts are based on management estimates using a methodology including these assumptions. However, this analysis provides management with a means to compare hypothetical refining margins to current period average crack spreads, as well as provides a means to better compare our results to peers.
| | | | | | | | | | | | | | | | | | |
| Reconciliation of Net Income (Loss) Attributable to Delek US to Adjusted Net Income (Loss) |
| | | | |
| | | | Three Months Ended March 31, |
| $ in millions (unaudited) | | | | | | 2024 | | 2023 |
| | | | |
| Reported net (loss) income attributable to Delek US | | | | | | $ | (32.6) | | | $ | 64.3 | |
Adjusting items (1) | | | | | | | | |
| Inventory LCM valuation (benefit) loss | | | | | | (8.8) | | | (1.7) | |
| Tax effect | | | | | | 2.0 | | | 0.4 | |
| Inventory LCM valuation (benefit) loss, net | | | | | | (6.8) | | | (1.3) | |
| Other inventory impact | | | | | | (1.4) | | | 77.1 | |
| Tax effect | | | | | | 0.3 | | | (17.3) | |
Other inventory impact, net (2) (3) | | | | | | (1.1) | | | 59.8 | |
| Business interruption insurance recoveries | | | | | | — | | | (5.1) | |
| Tax effect | | | | | | — | | | 1.1 | |
| Business interruption insurance recoveries, net | | | | | | — | | | (4.0) | |
| Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements | | | | | | 9.0 | | | (32.2) | |
| Tax effect | | | | | | (2.0) | | | 7.2 | |
| Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements, net | | | | | | 7.0 | | | (25.0) | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| Unrealized RINs hedging (gain) loss where the hedged item is not yet recognized in the financial statements | | | | | | 6.2 | | | — | |
| Tax effect | | | | | | (1.4) | | | — | |
Unrealized RINs hedging (gain) loss where the hedged item is not yet recognized in the financial statements, net (4) | | | | | | 4.8 | | | — | |
| Restructuring costs | | | | | | 3.2 | | | (1.4) | |
| Tax effect | | | | | | (0.7) | | | 0.3 | |
Restructuring costs, net (2) | | | | | | 2.5 | | | (1.1) | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Total adjusting items (1) | | | | | | 6.4 | | | 28.4 | |
| Adjusted net (loss) income | | | | | | $ | (26.2) | | | $ | 92.7 | |
(1) All adjustments have been tax effected using the estimated marginal income tax rate, as applicable.
(2) See further discussion in the "Significant Transactions During the Quarter Impacting Results" section.
(3) Starting with the quarter ended September 30, 2023, we updated our other inventory impact calculation to exclude the impact of certain pipeline inventories not used in our refinery operations. The impact to historical non-GAAP financial measures is immaterial.
(4) Starting with the quarter ended March 31, 2024, we updated our non-GAAP financial measures to include the impact of unrealized gains and losses related to RINs where the hedged item is not yet recognized in the financial statements. The impact to historical non-GAAP financial measures is immaterial.
| | | | | | | | | | | | | | | | | | |
| Reconciliation of U.S. GAAP Income (Loss) per share to Adjusted Net Income (Loss) per share |
| | | | | | | | |
| | | | Three Months Ended March 31, |
| $ per share (unaudited) | | | | | | 2024 | | 2023 |
| | | | |
| Reported diluted (loss) income per share | | | | | | $ | (0.51) | | | $ | 0.95 | |
Adjusting items, after tax (per share) (1) (2) | | | | | | | | |
| | | | | | | | |
| Net inventory LCM valuation (benefit) loss | | | | | | (0.11) | | | (0.02) | |
Other inventory impact (3) (4) | | | | | | (0.02) | | | 0.89 | |
| Business interruption insurance recoveries | | | | | | — | | | (0.06) | |
| Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements | | | | | | 0.11 | | | (0.37) | |
Unrealized RINs hedging (gain) loss where the hedged item is not yet recognized in the financial statements (5) | | | | | | 0.08 | | | — | |
| | | | | | | | |
Restructuring costs (3) | | | | | | 0.04 | | | (0.02) | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Total adjusting items (1) | | | | | | 0.10 | | | 0.42 | |
| Adjusted net (loss) income per share | | | | | | $ | (0.41) | | | $ | 1.37 | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
(1) The adjustments have been tax effected using the estimated marginal tax rate, as applicable.
(2) For periods of Adjusted net loss, Adjustments (Adjusting items) and Adjusted net loss per share are presented using basic weighted average shares outstanding.
(3) See further discussion in the "Significant Transactions During the Quarter Impacting Results" section.
(4) Starting with the quarter ended September 30, 2023, we updated our other inventory impact calculation to exclude the impact of certain pipeline inventories not used in our refinery operations. The impact to historical non-GAAP financial measures is immaterial.
(5) Starting with the quarter ended March 31, 2024, we updated our non-GAAP financial measures to include the impact of unrealized gains and losses related to RINs where the hedged item is not yet recognized in the financial statements. The impact to historical non-GAAP financial measures is immaterial.
| | | | | | | | | | | | | | | | | | |
| Reconciliation of Net Income (Loss) attributable to Delek US to Adjusted EBITDA |
| | | | Three Months Ended March 31, |
| $ in millions (unaudited) | | | | | | 2024 | | 2023 |
| Reported net (loss) income attributable to Delek US | | | | | | $ | (32.6) | | | $ | 64.3 | |
| Add: | | | | | | | | |
| Interest expense, net | | | | | | 87.7 | | | 76.5 | |
| | | | | | | | |
| Income tax expense (benefit) | | | | | | (7.2) | | | 15.8 | |
| Depreciation and amortization | | | | | | 95.2 | | | 83.4 | |
| EBITDA attributable to Delek US | | | | | | 143.1 | | | 240.0 | |
| Adjusting items | | | | | | | | |
| Net inventory LCM valuation (benefit) loss | | | | | | (8.8) | | | (1.7) | |
Other inventory impact (1) (2) | | | | | | (1.4) | | | 77.1 | |
| Business interruption insurance recoveries | | | | | | — | | | (5.1) | |
| Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements | | | | | | 9.0 | | | (32.2) | |
Unrealized RINs hedging (gain) loss where the hedged item is not yet recognized in the financial statements (3) | | | | | | 6.2 | | | — | |
| | | | | | | | |
Restructuring costs (1) | | | | | | 3.2 | | | (1.4) | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| Net income attributable to non-controlling interest | | | | | | 7.4 | | | 7.9 | |
| Total Adjusting items | | | | | | 15.6 | | | 44.6 | |
| Adjusted EBITDA | | | | | | $ | 158.7 | | | $ | 284.6 | |
(1) See further discussion in the "Significant Transactions During the Quarter Impacting Results" section.
(2) Starting with the quarter ended September 30, 2023, we updated our other inventory impact calculation to exclude the impact of certain pipeline inventories not used in our refinery operations. The impact to historical non-GAAP financial measures is immaterial.
(3) Starting with the quarter ended March 31, 2024, we updated our non-GAAP financial measures to include the impact of unrealized gains and losses related to RINs where the hedged item is not yet recognized in the financial statements. The impact to historical non-GAAP financial measures is immaterial.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Reconciliation of Segment EBITDA Attributable to Delek US to Adjusted Segment EBITDA |
| | Three Months Ended March 31, 2024 |
| $ in millions (unaudited) | | Refining | | Logistics | | Retail | | Corporate, Other and Eliminations | | Consolidated |
| Segment EBITDA Attributable to Delek US | | $ | 101.1 | | | $ | 99.7 | | | $ | 6.5 | | | $ | (64.2) | | | $ | 143.1 | |
| Adjusting items | | | | | | | | | | |
| Net inventory LCM valuation (benefit) loss | | (8.8) | | | — | | | — | | | — | | | (8.8) | |
Other inventory impact (1) (2) | | (1.4) | | | — | | | — | | | — | | | (1.4) | |
| Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements | | 9.0 | | | — | | | — | | | — | | | 9.0 | |
Unrealized RINs hedging (gain) loss where the hedged item is not yet recognized in the financial statements (3) | | 6.2 | | | — | | | — | | | — | | | 6.2 | |
Restructuring costs (1) | | — | | | — | | | — | | | 3.2 | | | 3.2 | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| Net income attributable to non-controlling interest | | — | | | — | | | — | | | 7.4 | | | 7.4 | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| Total Adjusting items | | 5.0 | | | — | | | — | | | 10.6 | | | 15.6 | |
| Adjusted Segment EBITDA | | $ | 106.1 | | | $ | 99.7 | | | $ | 6.5 | | | $ | (53.6) | | | $ | 158.7 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | |
| | | Three Months Ended March 31, 2023 |
| $ in millions (unaudited) | | Refining | | Logistics | | Retail | | Corporate, Other and Eliminations | | Consolidated |
| Segment EBITDA Attributable to Delek US | | $ | 192.1 | | | $ | 91.4 | | | $ | 6.4 | | | $ | (49.9) | | | $ | 240.0 | |
| Adjusting items | | | | | | | | | | |
| Net inventory LCM valuation (benefit) loss | | (1.7) | | | — | | | — | | | — | | | (1.7) | |
Other inventory impact (1) (2) | | 77.1 | | | — | | | — | | | — | | | 77.1 | |
| Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements | | (32.2) | | | — | | | — | | | — | | | (32.2) | |
| Restructuring costs | | — | | | — | | | — | | | (1.4) | | | (1.4) | |
| | | | | | | | | | |
| Business Interruption insurance recoveries | | (5.1) | | | — | | | — | | | — | | | (5.1) | |
| Net income attributable to non-controlling interest | | — | | | — | | | — | | | 7.9 | | | 7.9 | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| Total Adjusting items | | 38.1 | | | — | | | — | | | 6.5 | | | 44.6 | |
| Adjusted Segment EBITDA | | $ | 230.2 | | | $ | 91.4 | | | $ | 6.4 | | | $ | (43.4) | | | $ | 284.6 | |
(1) See further discussion in the "Significant Transactions During the Quarter Impacting Results" section.
(2) Starting with the quarter ended September 30, 2023, we updated our other inventory impact calculation to exclude the impact of certain pipeline inventories not used in our refinery operations. The impact to historical non-GAAP financial measures is immaterial.
(3) Starting with the quarter ended March 31, 2024, we updated our non-GAAP financial measures to include the impact of unrealized gains and losses related to RINs where the hedged item is not yet recognized in the financial statements. The impact to historical non-GAAP financial measures is immaterial.
| | | | | | | | | | | | | | | | | | |
| Refining Segment Selected Financial Information | | | | Three Months Ended March 31, |
| | | | | 2024 | | 2023 |
| Total Refining Segment | | | | (Unaudited) |
| Days in period | | | | | | 91 | | | 90 | |
Total sales volume - refined product (average barrels per day ("bpd")) (1) | | | | | | 306,567 | | | 271,715 | |
| Total production (average bpd) | | | | | | 292,725 | | | 266,606 | |
| | | | | | | | |
| Crude oil | | | | | | 274,554 | | | 248,199 | |
| Other feedstocks | | | | | | 22,098 | | | 20,336 | |
| Total throughput (average bpd) | | | | | | 296,652 | | | 268,535 | |
| | | | | | | | |
| Total refining production margin per bbl total throughput | | | | | | $ | 12.55 | | | $ | 16.44 | |
| Total refining operating expenses per bbl total throughput | | | | | | $ | 5.90 | | | $ | 5.60 | |
| | | | | | | | |
| Total refining production margin ($ in millions) | | | | | | $ | 338.8 | | | $ | 397.3 | |
Supply, marketing and other ($ millions) (2) | | | | | | (65.4) | | | (18.4) | |
| Total adjusted refining margin ($ in millions) | | | | | | $ | 273.4 | | | $ | 378.9 | |
| | | | | | | | |
| Total crude slate details | | | | | | | | |
| Total crude slate: (% based on amount received in period) | | | | | | | | |
| WTI crude oil | | | | | | 71.4 | % | | 69.8 | % |
| Gulf Coast Sweet crude | | | | | | 6.2 | % | | 4.7 | % |
| Local Arkansas crude oil | | | | | | 3.4 | % | | 4.5 | % |
| Other | | | | | | 19.0 | % | | 21.0 | % |
| | | | | | | | |
Crude utilization (% based on nameplate capacity) (4) | | | | | | 90.9 | % | | 82.2 | % |
| | | | | | | | |
| Tyler, TX Refinery | | | | | | | | |
| Days in period | | | | | | 91 | | | 90 | |
| Products manufactured (average bpd): | | | | | | | | |
| Gasoline | | | | | | 37,368 | | | 18,776 | |
| Diesel/Jet | | | | | | 30,105 | | | 13,042 | |
| Petrochemicals, LPG, NGLs | | | | | | 1,983 | | | 736 | |
| Other | | | | | | 1,217 | | | 1,778 | |
| Total production | | | | | | 70,673 | | | 34,332 | |
| Throughput (average bpd): | | | | | | | | |
| Crude oil | | | | | | 67,792 | | | 29,810 | |
| Other feedstocks | | | | | | 4,473 | | | 4,694 | |
| Total throughput | | | | | | 72,265 | | | 34,504 | |
| | | | | | | | |
| Tyler refining production margin ($ in millions) | | | | | | $ | 103.4 | | | $ | 67.2 | |
| Per barrel of throughput: | | | | | | | | |
| Tyler refining production margin | | | | | | $ | 15.72 | | | $ | 21.65 | |
| Operating expenses | | | | | | $ | 5.28 | | | $ | 8.70 | |
| Crude Slate: (% based on amount received in period) | | | | | | | | |
| WTI crude oil | | | | | | 82.6 | % | | 37.5 | % |
| East Texas crude oil | | | | | | 17.4 | % | | 62.5 | % |
| | | | | | | | |
| | | | | | | | |
Capture rate (3) | | | | | | 68.1 | % | | 66.5 | % |
| El Dorado, AR Refinery | | | | | | | | |
Days in period | | | | | | 91 | | | 90 | |
| Products manufactured (average bpd): | | | | | | | | |
| Gasoline | | | | | | 41,542 | | | 38,044 | |
| Diesel | | | | | | 30,035 | | | 27,710 | |
| Petrochemicals, LPG, NGLs | | | | | | 1,583 | | | 1,290 | |
| Asphalt | | | | | | 8,305 | | | 7,718 | |
| Other | | | | | | 795 | | | 746 | |
| Total production | | | | | | 82,260 | | | 75,508 | |
| Throughput (average bpd): | | | | | | | | |
| Crude oil | | | | | | 80,183 | | | 72,637 | |
| Other feedstocks | | | | | | 3,404 | | | 4,558 | |
| Total throughput | | | | | | 83,587 | | | 77,195 | |
| | | | | | | | | | | | | | | | | | |
| Refining Segment Selected Financial Information (continued) | | | | Three Months Ended March 31, |
| | | | | 2024 | | 2023 |
| El Dorado refining production margin ($ in millions) | | | | | | $ | 70.7 | | | $ | 93.0 | |
| Per barrel of throughput: | | | | | | | | |
| El Dorado refining production margin | | | | | | $ | 9.29 | | | $ | 13.38 | |
| Operating expenses | | | | | | $ | 4.72 | | | $ | 4.47 | |
| Crude Slate: (% based on amount received in period) | | | | | | | | |
| WTI crude oil | | | | | | 66.4 | % | | 61.9 | % |
| Local Arkansas crude oil | | | | | | 11.6 | % | | 14.7 | % |
| Other | | | | | | 22.0 | % | | 23.4 | % |
| | | | | | | | |
Capture rate (3) | | | | | | 40.3 | % | | 41.1 | % |
| Big Spring, TX Refinery | | | | | | | | |
Days in period | | | | | | 91 | | 90 |
| Products manufactured (average bpd): | | | | | | | | |
| Gasoline | | | | | | 29,975 | | | 38,509 | |
| Diesel/Jet | | | | | | 22,446 | | | 25,642 | |
| Petrochemicals, LPG, NGLs | | | | | | 5,436 | | | 3,133 | |
| Asphalt | | | | | | 2,088 | | | 1,642 | |
| Other | | | | | | 3,662 | | | 2,642 | |
| Total production | | | | | | 63,607 | | | 71,568 | |
| Throughput (average bpd): | | | | | | | | |
| Crude oil | | | | | | 59,448 | | | 67,989 | |
| Other feedstocks | | | | | | 5,405 | | | 4,625 | |
| Total throughput | | | | | | 64,853 | | | 72,614 | |
| | | | | | | | |
| Big Spring refining production margin ($ in millions) | | | | | | $ | 75.9 | | | $ | 119.8 | |
| Per barrel of throughput: | | | | | | | | |
| Big Spring refining production margin | | | | | | $ | 12.87 | | | $ | 18.33 | |
| Operating expenses | | | | | | $ | 8.08 | | | $ | 5.80 | |
| Crude Slate: (% based on amount received in period) | | | | | | | | |
| WTI crude oil | | | | | | 72.7 | % | | 74.8 | % |
| WTS crude oil | | | | | | 27.3 | % | | 25.2 | % |
| | | | | | | | |
Capture rate (3) | | | | | | 58.5 | % | | 58.7 | % |
| Krotz Springs, LA Refinery | | | | | | | | |
Days in period | | | | | | 91 | | | 90 | |
| Products manufactured (average bpd): | | | | | | | | |
| Gasoline | | | | | | 38,777 | | | 41,846 | |
| Diesel/Jet | | | | | | 28,244 | | | 32,783 | |
| Heavy oils | | | | | | 2,731 | | | 3,509 | |
| Petrochemicals, LPG, NGLs | | | | | | 5,731 | | | 6,873 | |
| Other | | | | | | 702 | | | 187 | |
| Total production | | | | | | 76,185 | | | 85,198 | |
| Throughput (average bpd): | | | | | | | | |
| Crude oil | | | | | | 67,131 | | | 77,764 | |
| Other feedstocks | | | | | | 8,816 | | | 6,459 | |
| Total throughput | | | | | | 75,947 | | | 84,223 | |
| | | | | | | | |
| Krotz Springs refining production margin ($ in millions) | | | | | | $ | 88.8 | | | $ | 117.3 | |
| Per barrel of throughput: | | | | | | | | |
| Krotz Springs refining production margin | | | | | | $ | 12.85 | | | $ | 15.47 | |
| Operating expenses | | | | | | $ | 5.94 | | | $ | 5.21 | |
| Crude Slate: (% based on amount received in period) | | | | | | | | |
| WTI Crude | | | | | | 64.5 | % | | 79.8 | % |
| Gulf Coast Sweet Crude | | | | | | 25.1 | % | | 14.3 | % |
| Other | | | | | | 10.4 | % | | 5.9 | % |
| | | | | | | | |
Capture rate (3) | | | | | | 66.2 | % | | 81.1 | % |
(1) Includes sales to other segments which are eliminated in consolidation.
(2) Supply, marketing and other activities include refined product wholesale and related marketing activities, asphalt and intermediates marketing activities, optimization of inventory and the execution of risk management programs to capture the physical and financial opportunities that extend from our refining operations. Formally known as Trading & Supply.
(3) Defined as refining production margin divided by the respective crack spread. See page 15 for crack spread information.
(4) Crude throughput as % of total nameplate capacity of 302,000 bpd.
| | | | | | | | | | | | | | | | | | |
| Logistics Segment Selected Information | | | | Three Months Ended March 31, |
| | | | | | 2024 | | 2023 |
| | | | (Unaudited) |
| Gathering & Processing: (average bpd) | | | | | | | | |
| Lion Pipeline System: | | | | | | | | |
| Crude pipelines (non-gathered) | | | | | | 73,011 | | | 63,528 | |
| Refined products pipelines | | | | | | 63,234 | | | 55,003 | |
| SALA Gathering System | | | | | | 12,987 | | | 13,872 | |
| East Texas Crude Logistics System | | | | | | 19,702 | | | 22,670 | |
| Midland Gathering Assets | | | | | | 213,458 | | | 222,112 | |
| Plains Connection System | | | | | | 256,844 | | | 240,597 | |
| Delaware Gathering Assets: | | | | | | | | |
Natural gas gathering and processing (Mcfd) (1) | | | | | | 76,322 | | | 74,716 | |
| Crude oil gathering (average bpd) | | | | | | 123,509 | | | 103,725 | |
| Water disposal and recycling (average bpd) | | | | | | 120,269 | | | 88,182 | |
| | | | | | | | |
| Wholesale Marketing & Terminalling: | | | | | | | | |
East Texas - Tyler Refinery sales volumes (average bpd) (2) | | | | | | 66,475 | | | 34,816 | |
| Big Spring wholesale marketing throughputs (average bpd) | | | | | | 76,615 | | | 78,380 | |
| West Texas wholesale marketing throughputs (average bpd) | | | | | | 9,976 | | | 8,696 | |
| West Texas wholesale marketing margin per barrel | | | | | | $ | 2.15 | | | $ | 5.47 | |
Terminalling throughputs (average bpd) (3) | | | | | | 136,614 | | | 93,305 | |
(1) Mcfd - average thousand cubic feet per day.
(2) Excludes jet fuel and petroleum coke.
(3) Consists of terminalling throughputs at our Tyler, Big Spring, Big Sandy and Mount Pleasant, Texas terminals, El Dorado and North Little Rock, Arkansas terminals and Memphis and Nashville, Tennessee terminals.
| | | | | | | | | | | | | | | | | | |
Retail Segment Selected Information | | | | Three Months Ended March 31, |
| | | | | | 2024 | | 2023 |
| | | | (Unaudited) |
| Number of stores (end of period) | | | | | | 250 | | | 249 | |
| Average number of stores | | | | | | 250 | | | 249 | |
| Average number of fuel stores | | | | | | 245 | | | 244 | |
| Retail fuel sales (thousands of gallons) | | | | | | 39,683 | | | 39,964 | |
| Average retail gallons sold per average number of fuel stores (in thousands) | | | | | | 162 | | | 164 | |
| Average retail sales price per gallon sold | | | | | | $ | 3.09 | | | $ | 3.28 | |
Retail fuel margin ($ per gallon) (1) | | | | | | $ | 0.29 | | | $ | 0.27 | |
| Merchandise sales (in millions) | | | | | | $ | 70.7 | | | $ | 73.9 | |
| Merchandise sales per average number of stores (in millions) | | | | | | $ | 0.3 | | | $ | 0.3 | |
| Merchandise margin % | | | | | | 33.5 | % | | 33.0 | % |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | Three Months Ended March 31, |
| | | | | | 2024 | | 2023 |
Same-Store Comparison (2) | | | | (Unaudited) |
| | | | | | | | |
| Change in same-store fuel gallons sold | | | | | | 0.7 | % | | (1.7) | % |
| Change in same-store merchandise sales | | | | | | (4.1) | % | | 5.3 | % |
(1)Retail fuel margin represents gross margin on fuel sales in the retail segment, and is calculated as retail fuel sales revenue less retail fuel cost of sales. The retail fuel margin per gallon calculation is derived by dividing retail fuel margin by the total retail fuel gallons sold for the period.
(2)Same-store comparisons include period-over-period changes in specified metrics for stores that were in service at both the beginning of the earliest period and the end of the most recent period used in the comparison.
| | | | | | | | | | | | | | | | | | | | |
| Supplemental Information | | | | | | |
| Schedule of Selected Segment Financial Data, Pricing Statistics Impacting our Refining Segment, and Other Reconciliations of Amounts Reported Under U.S. GAAP | | | | | | |
| | | | | | |
| | | | |
| | | | | | |
| | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended March 31, 2024 |
| $ in millions (unaudited) | | Refining | | Logistics | | Retail | | Corporate,
Other and Eliminations | | Consolidated |
| Net revenues (excluding intercompany fees and revenues) | | $ | 2,921.6 | | | $ | 112.5 | | | $ | 193.5 | | | $ | — | | | $ | 3,227.6 | |
| Inter-segment fees and revenues | | 186.7 | | | 139.6 | | | — | | | (326.3) | | | — | |
| Total revenues | | $ | 3,108.3 | | | $ | 252.1 | | | $ | 193.5 | | | $ | (326.3) | | | $ | 3,227.6 | |
| Cost of sales | | 3,067.1 | | | 180.6 | | | 158.7 | | | (308.9) | | | 3,097.5 | |
| Gross margin | | $ | 41.2 | | | $ | 71.5 | | | $ | 34.8 | | | $ | (17.4) | | | $ | 130.1 | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended March 31, 2023 |
| $ in millions (unaudited) | | Refining | | Logistics | | Retail | | Corporate,
Other and Eliminations | | Consolidated |
| Net revenues (excluding intercompany fees and revenues) | | $ | 3,600.8 | | | $ | 118.5 | | | $ | 205.0 | | | $ | — | | | $ | 3,924.3 | |
| Inter-segment fees and revenues | | 193.7 | | | 125.0 | | | — | | | (318.7) | | | — | |
| Total revenues | | $ | 3,794.5 | | | $ | 243.5 | | | $ | 205.0 | | | $ | (318.7) | | | $ | 3,924.3 | |
| Cost of sales | | 3,654.5 | | | 170.1 | | | 170.0 | | | (307.4) | | | 3,687.2 | |
| Gross margin | | $ | 140.0 | | | $ | 73.4 | | | $ | 35.0 | | | $ | (11.3) | | | $ | 237.1 | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Pricing Statistics | | | | Three Months Ended March 31, |
| (average for the period presented) | | | | | | 2024 | | 2023 |
| | | | |
| | | | | | | | |
| WTI — Cushing crude oil (per barrel) | | | | | | $ | 77.01 | | | $ | 75.96 | |
| WTI — Midland crude oil (per barrel) | | | | | | $ | 78.55 | | | $ | 77.50 | |
| WTS — Midland crude oil (per barrel) | | | | | | $ | 77.48 | | | $ | 75.39 | |
| LLS (per barrel) | | | | | | $ | 79.69 | | | $ | 78.84 | |
| Brent (per barrel) | | | | | | $ | 81.76 | | | $ | 82.10 | |
| | | | | | | | |
U.S. Gulf Coast 5-3-2 crack spread (per barrel) (1) | | | | | | $ | 23.09 | | | $ | 32.55 | |
U.S. Gulf Coast 3-2-1 crack spread (per barrel) (1) | | | | | | $ | 21.98 | | | $ | 31.22 | |
U.S. Gulf Coast 2-1-1 crack spread (per barrel) (1) | | | | | | $ | 19.40 | | | $ | 19.08 | |
| | | | | | | | |
| U.S. Gulf Coast Unleaded Gasoline (per gallon) | | | | | | $ | 2.22 | | | $ | 2.39 | |
| Gulf Coast Ultra low sulfur diesel (per gallon) | | | | | | $ | 2.62 | | | $ | 2.87 | |
| U.S. Gulf Coast high sulfur diesel (per gallon) | | | | | | $ | 1.95 | | | $ | 1.92 | |
| Natural gas (per MMBTU) | | | | | | $ | 2.10 | | | $ | 2.73 | |
(1) For our Tyler and El Dorado refineries, we compare our per barrel refining product margin to the Gulf Coast 5-3-2 crack spread consisting of (Argus pricing) WTI Cushing crude, U.S. Gulf Coast CBOB gasoline and U.S. Gulf Coast Pipeline No. 2 heating oil (ultra low sulfur diesel). For our Big Spring refinery, we compare our per barrel refining margin to the Gulf Coast 3-2-1 crack spread consisting of (Argus pricing) WTI Cushing crude, U.S. Gulf Coast CBOB gasoline and Gulf Coast ultra-low sulfur diesel. For 2023, for our Krotz Springs refinery, we compare our per barrel refining margin to the Gulf Coast 2-1-1 crack spread consisting of (Argus pricing) LLS crude oil, (Argus pricing) U.S. Gulf Coast CBOB gasoline and 50% of (Argus pricing) U.S. Gulf Coast Pipeline No. 2 heating oil (high sulfur diesel) and 50% of (Platts pricing) U.S. Gulf Coast Pipeline No. 2 heating oil (high sulfur diesel). For 2024, for our Krotz Springs refinery, we compare our per barrel refining margin to the Gulf Coast 2-1-1 crack spread consisting of (Argus pricing) LLS crude oil, (Argus pricing) U.S. Gulf Coast CBOB gasoline and (Platts pricing) U.S. Gulf Coast Pipeline No. 2 heating oil (high sulfur diesel). The Tyler refinery's crude oil input is primarily WTI Midland and East Texas, while the El Dorado refinery's crude input is primarily a combination of WTI Midland, local Arkansas and other domestic inland crude oil. The Big Spring refinery’s crude oil input is primarily comprised of WTS and WTI Midland. The Krotz Springs refinery’s crude oil input is primarily comprised of LLS and WTI Midland.
| | | | | | | | | | | | | | | | | | |
| Other Reconciliations of Amounts Reported Under U.S. GAAP |
| $ in millions (unaudited) | | | | | | | | |
| | | | Three Months Ended March 31, |
| Reconciliation of gross margin to Refining margin to Adjusted refining margin | | | | | | 2024 | | 2023 |
| Gross margin | | | | | | $ | 41.2 | | | $ | 140.0 | |
| Add back (items included in cost of sales): | | | | | | | | |
| Operating expenses (excluding depreciation and amortization) | | | | | | 165.8 | | | 139.1 | |
| Depreciation and amortization | | | | | | 61.4 | | | 56.6 | |
| Refining margin | | | | | | $ | 268.4 | | | $ | 335.7 | |
| Adjusting items | | | | | | | | |
| Net inventory LCM valuation loss (benefit) | | | | | | (8.8) | | | (1.7) | |
Other inventory impact (1) (2) | | | | | | (1.4) | | | 77.1 | |
| Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements | | | | | | 9.0 | | | (32.2) | |
Unrealized RINs hedging (gain) loss where the hedged item is not yet recognized in the financial statements (3) | | | | | | 6.2 | | | — | |
| | | | | | | | |
| Total adjusting items | | | | | | 5.0 | | | 43.2 | |
| Adjusted refining margin | | | | | | $ | 273.4 | | | $ | 378.9 | |
(1) See further discussion in the "Significant Transactions During the Quarter Impacting Results" section.
(2) Starting with the quarter ended September 30, 2023, we updated our other inventory impact calculation to exclude the impact of certain pipeline inventories not used in our refinery operations. The impact to historical non-GAAP financial measures is immaterial.
(3) Starting with the quarter ended March 31, 2024, we updated our non-GAAP financial measures to include the impact of unrealized gains and losses related to RINs where the hedged item is not yet recognized in the financial statements. The impact to historical non-GAAP financial measures is immaterial.
| | | | | | | | | | | | | | |
| Calculation of Net Debt | | March 31, 2024 | | December 31, 2023 |
| Long-term debt - current portion | | $ | 14.5 | | | $ | 44.5 | |
| Long-term debt - non-current portion | | 2,482.4 | | | 2,555.3 | |
| Total long-term debt | | 2,496.9 | | | 2,599.8 | |
| Less: Cash and cash equivalents | | 753.4 | | | 822.2 | |
| Net debt - consolidated | | 1,743.5 | | | 1,777.6 | |
| Less: DKL net debt | | 1,591.5 | | | 1,700.0 | |
| Net debt, excluding DKL | | $ | 152.0 | | | $ | 77.6 | |
Investor/Media Relations Contacts:
Rosy Zuklic, Vice President of Investor Relations and Market Intelligence
investor.relations@delekus.com; rosy.zuklic@delekus.com; 615-767-4344
Information about Delek US Holdings, Inc. can be found on its website (www.delekus.com), investor relations webpage (ir.delekus.com), news webpage (www.delekus.com/news) and its X account (@DelekUSHoldings).
First Quarter 2024 Earnings Conference Call May 7, 2024 Exhibit 99.2
2 Disclaimers Forward Looking Statements: Delek US Holdings, Inc. (“Delek US”) and Delek Logistics Partners, LP (“Delek Logistics”; and collectively with Delek US, “we” or “our”) are traded on the New York Stock Exchange in the United States under the symbols “DK” and ”DKL”, respectively. These slides and any accompanying oral or written presentations contain forward-looking statements within the meaning of federal securities laws that are based upon current expectations and involve a number of risks and uncertainties. Statements concerning current estimates, expectations and projections about future results, performance, prospects, opportunities, plans, actions and events and other statements, concerns, or matters that are not historical facts are “forward-looking statements,” as that term is defined under the federal securities laws. Words such as "may," "will," "should," "could," "would," "predicts," "potential," "continue," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "appears," "projects" and similar expressions, as well as statements in future tense, identify forward-looking statements. These forward-looking statements include, but are not limited to, the statements regarding the following: financial and operating guidance for future and uncompleted financial periods; financial strength and flexibility; potential for and projections of growth; return of cash to shareholders, stock repurchases and the payment of dividends, including the amount and timing thereof; cost reductions; crude oil throughput; crude oil market trends, including production, quality, pricing, demand, imports, exports and transportation costs; projected capital expenditures; the results of our refinery improvement plan; the performance of our joint venture investments, and the benefits, flexibility, returns and EBITDA therefrom; the potential for, and estimates of cost savings and other benefits from, acquisitions, divestitures, dropdowns and financing activities; long-term value creation from capital allocation; targeted internal rates of return on capital expenditures; execution of strategic initiatives and the benefits therefrom, including cash flow stability from business model transition and approach to renewable diesel; and access to crude oil and the benefits therefrom. Investors are cautioned that the following important factors, among others, may affect these forward-looking statements: uncertainty related to timing and amount of value returned to shareholders; risks and uncertainties with respect to the quantities and costs of crude oil we are able to obtain and the price of the refined petroleum products we ultimately sell, including uncertainties regarding future decisions by OPEC regarding production and pricing disputes between OPEC members and Russia; risks and uncertainties related to the integration by Delek Logistics of the Delaware Gathering business following its acquisition; Delek US’ ability to realize cost reductions; risks related to Delek US’ exposure to Permian Basin crude oil, such as supply, gathering, pricing, production and transportation capacity; gains and losses from derivative instruments; management's ability to execute its strategy of growth through acquisitions and the transactional risks associated with acquisitions and dispositions; acquired assets may suffer a diminishment in fair value as a result of which we may need to record a write-down or impairment in carrying value of the asset; changes in the scope, costs, and/or timing of capital and maintenance projects; the ability of the Wink to Webster joint venture to construct the long-haul pipeline; the ability of the Red River joint venture to expand the Red River pipeline; the possibility of litigation challenging renewable fuel standard waivers; the ability to grow the Midland Gathering System; operating hazards inherent in transporting, storing and processing crude oil and intermediate and finished petroleum products; our competitive position and the effects of competition; the projected growth of the industries in which we operate; general economic and business conditions affecting the geographic areas in which we operate; and other risks contained in Delek US’ and Delek Logistics’ filings with the United States Securities and Exchange Commission. Forward-looking statements should not be read as a guarantee of future performance or results, and will not be accurate indications of the times at, or by which such performance or results will be achieved. Forward-looking information is based on information available at the time and/or management’s good faith belief with respect to future events, and is subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statements. Neither Delek US nor Delek Logistics undertakes any obligation to update or revise any such forward-looking statements to reflect events or circumstances that occur, or which Delek US or Delek Logistics becomes aware of, after the date hereof, except as required by applicable law or regulation.
3 Overview Refining operations ran well El Dorado and Krotz Springs refineries received the AFPM Elite Silver Safety Award Logistics delivered $100 million EBITDA quarter Advanced 'sum of the parts' value unlock directive Big Spring Refinery, Big Spring, TXEl Dorado Refinery, El Dorado AR
4 Well positioned to capture opportunities Strategic Objectives 2024 Priorities Run safely, reliably and in an environmentally responsible manner Complete successful turnaround of Krotz Springs Refinery Streamline structures and processes Execute a prudent and disciplined capital allocation approach Deliver sustainable and competitive shareholder returns Optimize the balance sheet and reduce debt Improve cost and process efficiencies to reach run-rate goal Unlock 'Sum of the Parts' value Evaluate opportunities in energy transition Financial Strength and Shareholder Return Operational Excellence Strategic Initiatives
5 • Multi-year minimum volume commitment (MVC) contracts • Significant growth opportunities to grow in G&P and well positioned in the Permian Basin • ~$400 million+ annual run-rate EBITDA • ~50% EBITDA from 3rd party business, largely focused in Midland and Delaware Basins Gathering & Processing Marketing & Terminalling Storage & Transportation Pipeline Joint Ventures Includes pipelines, trucks, and ancillary assets that provide crude oil, gas, products, and water gathering; refined products transportation; and storage services Midland and Delaware gathering assets ~2,204 miles of pipeline & gathering infrastructure1 G&P assets are integrated with pipeline assets in support of DK’s refining operations in Tyler, El Dorado and Big Spring, as well as third parties Terminalling services for 3rd parties and DK Wholesale and Marketing business in West Texas Markets 100% of refined products output of Tyler refinery in East Texas 9 light product terminals in Texas, Tennessee and Arkansas Approximately 1.2 million barrels of shell capacity Provides crude oil, intermediate and refined products transportation / storage services Rail infrastructure and fleet Rail offloading facilities ~200 company operated trucks 10.0 mmbbls storage capacity JV crude oil pipelines Three joint ventures with strategic connections to Cushing, Permian, and other key exchange points with MVC commitments RIO (33% Ownership) • JV with MPLX Caddo (50% Ownership) • JV with Plains Pipeline LP Red River (33% Ownership) • JV with Plains Pipeline LP Delek Logistics (1) Includes approximately 240 miles of leased pipeline capacity and 489 miles of gathering system pipeline which is decommissioned
6 Total Refining Throughput 1Q 2024 vs 4Q 2023 1Q24 Production Margin per bbl. Tyler El Dorado Big Spring Krotz Springs $15.72 $9.29 $12.87 $12.85 306.4 -7.0 -4.1 6.7 -5.3 296.7 4Q23 Tyler El Dorado Big Spring Krotz Springs 1Q24 MBPD *Throughputs are rounded
7 Financial Summary 1st Quarter 2024 Financial Highlights $ in millions (except per share) Net Loss $(32.6) Adjusted Net Loss $(26.2) Adjusted Net Loss per share $(0.41) Adjusted EBITDA $158.7 Cash from operations $166.7
8 Adjusted EBITDA 1Q 2024 vs 4Q 2023 ($MM) 1Q24 Adjusted EBITDA Results by Segment Refining Logistics Retail Corporate $106.1 $99.7 $6.5 $(53.6) $60.6 $116.5 $0.3 $(2.8) $(15.9) $158.7 4Q23 Refining Logistics Retail Corporate 1Q24 *$MM's are rounded
9 Consolidated Cash Flow 1Q 2024 vs 4Q 2023 ($MM) *includes cash and cash equivalents $822.2 $166.7 $(41.6) $(193.9) $753.4 12/31/2023 Cash Balance* Operating Activities Investing Activities Financing Activities 3/31/2024 Cash Balance*
10 Capital Program 1Q24 Actual & 2024 Forecast $'s in Millions 1Q24 2024 Forecast ($ millions) Total Total Refining $ 22 $ 220 Logistics (Delek Logistics Partners) 15 70 Retail 4 15 Corporate & Other 5 25 Capital expenditures $ 46 $ 330 1Q24 Actual 77% 23% Regulatory & Sustaining Growth 2024 Forecast 65% 35% Regulatory & Sustaining Growth
11 Net Debt 2024 vs 2023 $'s in Millions Mar 31, 2024 Dec 31, 2023 Consolidated long-term debt - current portion $ 14.5 $ 44.5 Consolidated long-term debt - non-current portion 2,482.4 2,555.3 Consolidated total long-term debt $ 2,496.9 $ 2,599.8 Less: Cash and cash equivalents 753.4 822.2 Consolidated net debt $ 1,743.5 $ 1,777.6 Less: Delek Logistics net debt 1,591.5 1,700.0 Delek US, excluding DKL net debt $ 152.0 $ 77.6
12 Guidance 2nd Quarter 2024 $'s in Millions Low High Operating Expenses $215 $225 General and Administrative Expenses $60 $65 Depreciation and Amortization $90 $95 Net Interest Expense $80 $90 Barrels per day (bpd) Low High Total Crude Throughput 287,000 300,000 Total Throughput 299,000 312,000 Total Throughput by Refinery: Tyler, TX 72,000 76,000 El Dorado, AR 80,000 83,000 Big Spring, TX 68,000 71,000 Krotz Spring, LA 79,000 82,000
13 Supplemental Slides
14 Total Refining Throughput 1Q 2024 vs 1Q 2023 1Q24 Production Margin per bbl. Tyler El Dorado Big Spring Krotz Springs $15.72 $9.29 $12.87 $12.85 268.5 37.8 6.4 -7.7 -8.3 296.7 1Q23 Tyler El Dorado Big Spring Krotz Springs 1Q24 MBPD *Throughputs are rounded
15 Adjusted EBITDA 1Q 2024 vs 1Q 2023 ($MM) 1Q24 Adjusted EBITDA Results by Segment Refining Logistics Retail Corporate $106.1 $99.7 $6.5 $(53.6) $284.6 $(124.1) $8.3 $0.1 $(10.2) $158.7 1Q23 Refining Logistics Retail Corporate 1Q24 *$MM's are rounded
16 Reconciliation of U.S. GAAP Net Income (Loss) to Adjusted Net Income (Loss) (1) The adjustments have been tax effected using the estimated marginal tax rate, as applicable. (2) See further discussion in the "Significant Transactions During the Quarter Impacting Results" section in the Earnings Release. (3) Starting with the quarter ended September 30, 2023, we updated our other inventory impact calculation to exclude the impact of certain pipeline inventories not used in our refinery operations. The impact to historical non-GAAP financial measures is immaterial. (4) Starting with the quarter ended March 31, 2024, we updated our non-GAAP financial measures to include the impact of unrealized gains and losses related to RINs where the hedged item is not yet recognized in the financial statements. The impact to historical non-GAAP financial measures is immaterial. Three Months Ended March 31, $ in millions (unaudited) 2024 2023 Reported net (loss) income attributable to Delek US $ (32.6) $ 64.3 Adjusting items (1) Inventory LCM valuation (benefit) loss (8.8) (1.7) Tax effect 2.0 0.4 Inventory LCM valuation (benefit) loss, net (6.8) (1.3) Other inventory impact (1.4) 77.1 Tax effect 0.3 (17.3) Other inventory impact, net (2) (3) (1.1) 59.8 Business interruption insurance recoveries — (5.1) Tax effect — 1.1 Business interruption insurance recoveries, net — (4.0) Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements 9.0 (32.2) Tax effect (2.0) 7.2 Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements, net 7.0 (25.0) Unrealized RINs hedging (gain) loss where the hedged item is not yet recognized in the financial statements 6.2 — Tax effect (1.4) — Unrealized RINs hedging (gain) loss where the hedged item is not yet recognized in the financial statements, net (4) 4.8 — Restructuring costs 3.2 (1.4) Tax effect (0.7) 0.3 Restructuring costs, net (2) 2.5 (1.1) Total adjusting items (1) 6.4 28.4 Adjusted net (loss) income $ (26.2) $ 92.7
17 Reconciliation of U.S. GAAP Net Income (Loss) per share to Adjusted Net Income (Loss) Per Share Three Months Ended March 31, $ per share (unaudited) 2024 2023 Reported diluted (loss) income per share $ (0.51) $ 0.95 Adjusting items, after tax (per share) (1) (2) Net inventory LCM valuation (benefit) loss (0.11) (0.02) Other inventory impact (3) (4) (0.02) 0.89 Business interruption insurance recoveries — (0.06) Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements 0.11 (0.37) Unrealized RINs hedging (gain) loss where the hedged item is not yet recognized in the financial statements (5) 0.08 — Restructuring costs (3) 0.04 (0.02) Total adjusting items (1) 0.10 0.42 Adjusted net (loss) income per share $ (0.41) $ 1.37 (1) The adjustments have been tax effected using the estimated marginal tax rate, as applicable. (2) For periods of Adjusted net loss, Adjustments (Adjusting Items) and Adjusted net loss per share are presented using basic weighted average shares outstanding. (3) See further discussion in the "Significant Transactions During the Quarter Impacting Results" section in the Earnings Release. (4) Starting with the quarter ended September 30, 2023, we updated our other inventory impact calculation to exclude the impact of certain pipeline inventories not used in our refinery operations. The impact to historical non-GAAP financial measures is immaterial. (5) Starting with the quarter ended March 31, 2024, we updated our non-GAAP financial measures to include the impact of unrealized gains and losses related to RINs where the hedged item is not yet recognized in the financial statements. The impact to historical non-GAAP financial measures is immaterial.
18 Reconciliation of Net (Loss) Income attributable to Delek US to Adjusted EBITDA Three Months Ended March 31, Three Months Ended December 31, $ in millions (unaudited) 2024 2023 2023 Reported net (loss) income attributable to Delek US $ (32.6) $ 64.3 $ (164.9) Add: Interest expense, net 87.7 76.5 79.0 Income tax expense (benefit) (7.2) 15.8 (38.4) Depreciation and amortization 95.2 83.4 87.5 EBITDA attributable to Delek US 143.1 240.0 (36.8) Adjusting items Net inventory LCM valuation (benefit) loss (8.8) (1.7) 6.6 Other inventory impact (1) (2) (1.4) 77.1 48.6 Business interruption insurance recoveries — (5.1) — Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements 9.0 (32.2) (9.5) Unrealized RINs hedging (gain) loss where the hedged item is not yet recognized in the financial statements (3) 6.2 — Restructuring costs (1) 3.2 (1.4) 31.4 El Dorado refinery fire losses — — 0.7 Goodwill impairment — — 14.8 Net income attributable to non-controlling interest 7.4 7.9 4.8 Total Adjusting items 15.6 44.6 97.4 Adjusted EBITDA $ 158.7 $ 284.6 $ 60.6 (1) See further discussion in the "Significant Transactions During the Quarter Impacting Results" section in the Earnings Release. (2) Starting with the quarter ended September 30, 2023, we updated our other inventory impact calculation to exclude the impact of certain pipeline inventories not used in our refinery operations. The impact to historical non-GAAP financial measures is immaterial. (3) Starting with the quarter ended March 31, 2024, we updated our non-GAAP financial measures to include the impact of unrealized gains and losses related to RINs where the hedged item is not yet recognized in the financial statements. The impact to historical non- GAAP financial measures is immaterial.
19 Reconciliation of Segment EBITDA Attributable to Delek US to Adjusted Segment EBITDA Three Months Ended March 31, 2024 $ in millions (unaudited) Refining Logistics Retail Corporate, Other and Eliminations Consolidated Segment EBITDA Attributable to Delek US $ 101.1 $ 99.7 $ 6.5 $ (64.2) $ 143.1 Adjusting items Net inventory LCM valuation (benefit) loss (8.8) — — — (8.8) Other inventory impact (1) (2) (1.4) — — — (1.4) Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements 9.0 — — — 9.0 Unrealized RINs hedging (gain) loss where the hedged item is not yet recognized in the financial statements (3) 6.2 — — — 6.2 Restructuring costs (1) — — — 3.2 3.2 Net income attributable to non-controlling interest — — — 7.4 7.4 Total Adjusting items 5.0 — — 10.6 15.6 Adjusted Segment EBITDA $ 106.1 $ 99.7 $ 6.5 $ (53.6) $ 158.7 (1) See further discussion in the "Significant Transactions During the Quarter Impacting Results" section in the Earnings Release. (2) Starting with the quarter ended September 30, 2023, we updated our other inventory impact calculation to exclude the impact of certain pipeline inventories not used in our refinery operations. The impact to historical non-GAAP financial measures is immaterial. (3) Starting with the quarter ended March 31, 2024, we updated our non-GAAP financial measures to include the impact of unrealized gains and losses related to RINs where the hedged item is not yet recognized in the financial statements. The impact to historical non-GAAP financial measures is immaterial. Three Months Ended March 31, 2023 $ in millions (unaudited) Refining Logistics Retail Corporate, Other and Eliminations Consolidated Segment EBITDA Attributable to Delek US $ 192.1 $ 91.4 $ 6.4 $ (49.9) $ 240.0 Net inventory LCM valuation (benefit) loss (1.7) — — — (1.7) Other inventory impact (1) (2) 77.1 — — — 77.1 Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements (32.2) — — — (32.2) Restructuring costs — — — (1.4) (1.4) Business Interruption insurance recoveries (5.1) — — — (5.1) Net income attributable to non-controlling interest — — — 7.9 7.9 Total Adjusting items 38.1 — — 6.5 44.6 Adjusted Segment EBITDA $ 230.2 $ 91.4 $ 6.4 $ (43.4) $ 284.6
20 Reconciliation of Segment EBITDA Attributable to Delek US to Adjusted Segment EBITDA Three Months Ended December 31, 2023 $ in millions (unaudited) Refining Logistics Retail Corporate, Other and Eliminations Consolidated Segment EBITDA Attributable to Delek US $ (58.3) $ 84.2 $ 9.3 $ (72.0) $ (36.8) Adjusting items Net inventory LCM valuation (benefit) loss 6.6 — — — 6.6 Other inventory impact (1) (2) 48.6 — — — 48.6 Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements (3) (9.5) — — — (9.5) Restructuring costs (1) 1.5 0.4 — 29.5 31.4 El Dorado refinery fire losses 0.7 — — — 0.7 Goodwill impairment — 14.8 — — 14.8 Net income attributable to non-controlling interest — — — 4.8 4.8 Total Adjusting items 47.9 15.2 — 34.3 97.4 Adjusted Segment EBITDA $ (10.4) $ 99.4 $ 9.3 $ (37.7) $ 60.6 (1) See further discussion in the "Significant Transactions During the Quarter Impacting Results" section in the Earnings Release. (2) Starting with the quarter ended September 30, 2023, we updated our other inventory impact calculation to exclude the impact of certain pipeline inventories not used in our refinery operations. The impact to historical non-GAAP financial measures is immaterial. (3) Starting with the quarter ended March 31, 2023, we no longer adjust non-GAAP financial measures for unrealized gains and losses related to RINs where the hedged item is not yet recognized in the financial statements. Historical non-GAAP financial measures have been revised to conform to current period presentation.
v3.24.1.u1
Cover Page Document
|
May 07, 2024 |
| Cover [Abstract] |
|
| Document Type |
8-K
|
| Document Period End Date |
May 07, 2024
|
| Entity Registrant Name |
DELEK US HOLDINGS, INC.
|
| Entity Incorporation, State or Country Code |
DE
|
| Entity File Number |
001-38142
|
| Entity Tax Identification Number |
35-2581557
|
| Entity Address, Address Line One |
310 Seven Springs Way
|
| Entity Address, Address Line Two |
Suite 500
|
| Entity Address, City or Town |
Brentwood
|
| Entity Address, State or Province |
TN
|
| Entity Address, Postal Zip Code |
37027
|
| City Area Code |
615
|
| Local Phone Number |
771-6701
|
| Written Communications |
false
|
| Soliciting Material |
false
|
| Pre-commencement Tender Offer |
false
|
| Pre-commencement Issuer Tender Offer |
false
|
| Title of 12(b) Security |
Common Stock, $0.01 par value
|
| Trading Symbol |
DK
|
| Security Exchange Name |
NYSE
|
| Entity Emerging Growth Company |
false
|
| Entity Central Index Key |
0001694426
|
| Amendment Flag |
false
|
| X |
- DefinitionBoolean flag that is true when the XBRL content amends previously-filed or accepted submission.
| Name: |
dei_AmendmentFlag |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionFor the EDGAR submission types of Form 8-K: the date of the report, the date of the earliest event reported; for the EDGAR submission types of Form N-1A: the filing date; for all other submission types: the end of the reporting or transition period. The format of the date is YYYY-MM-DD.
| Name: |
dei_DocumentPeriodEndDate |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:dateItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionThe type of document being provided (such as 10-K, 10-Q, 485BPOS, etc). The document type is limited to the same value as the supporting SEC submission type, or the word 'Other'.
| Name: |
dei_DocumentType |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:submissionTypeItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionAddress Line 1 such as Attn, Building Name, Street Name
| Name: |
dei_EntityAddressAddressLine1 |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionAddress Line 2 such as Street or Suite number
| Name: |
dei_EntityAddressAddressLine2 |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- Definition
+ References
+ Details
| Name: |
dei_EntityAddressCityOrTown |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionCode for the postal or zip code
| Name: |
dei_EntityAddressPostalZipCode |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionName of the state or province.
| Name: |
dei_EntityAddressStateOrProvince |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:stateOrProvinceItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionA unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityCentralIndexKey |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:centralIndexKeyItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionIndicate if registrant meets the emerging growth company criteria. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityEmergingGrowthCompany |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionCommission file number. The field allows up to 17 characters. The prefix may contain 1-3 digits, the sequence number may contain 1-8 digits, the optional suffix may contain 1-4 characters, and the fields are separated with a hyphen.
| Name: |
dei_EntityFileNumber |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:fileNumberItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionTwo-character EDGAR code representing the state or country of incorporation.
| Name: |
dei_EntityIncorporationStateCountryCode |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:edgarStateCountryItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionThe exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityRegistrantName |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionThe Tax Identification Number (TIN), also known as an Employer Identification Number (EIN), is a unique 9-digit value assigned by the IRS. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityTaxIdentificationNumber |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:employerIdItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionLocal phone number for entity.
| Name: |
dei_LocalPhoneNumber |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 13e
-Subsection 4c
| Name: |
dei_PreCommencementIssuerTenderOffer |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 14d
-Subsection 2b
| Name: |
dei_PreCommencementTenderOffer |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionTitle of a 12(b) registered security. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b
| Name: |
dei_Security12bTitle |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:securityTitleItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionName of the Exchange on which a security is registered. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection d1-1
| Name: |
dei_SecurityExchangeName |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:edgarExchangeCodeItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Section 14a
-Number 240
-Subsection 12
| Name: |
dei_SolicitingMaterial |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionTrading symbol of an instrument as listed on an exchange.
| Name: |
dei_TradingSymbol |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:tradingSymbolItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Securities Act
-Number 230
-Section 425
| Name: |
dei_WrittenCommunications |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
Delek US (NYSE:DK)
Gráfico Histórico do Ativo
De Nov 2024 até Dez 2024
Delek US (NYSE:DK)
Gráfico Histórico do Ativo
De Dez 2023 até Dez 2024
