Fourth Quarter
- Net loss of $118.7 million for
fourth quarter or $1.73 per
share
- Adjusted net income of $60.8
million or $0.88 per share,
and Adjusted EBITDA of $220.9
million
- Returned $104.1 million to
shareholders through dividends and share repurchases
- Refining impacted by unplanned downtime
- Record contributions from Logistics business
- Initiated sum of the parts valuation unlock
initiative
- Launched cost reduction and process improvement
efforts
Full-Year 2022
- Delivered $257.1 million of
net income and $1,185.8 million of
Adjusted EBITDA
- Returned $236.4 million to
shareholders through dividends and share repurchases, $172.4 million in the second half of
2022
- Capital spending of $343.1
million, with $152.4 million
for growth and $190.7 million for
sustaining/regulatory
- Achieved crude utilization rate of 93 percent in
Refining
- Grew Logistics business through Delek Permian Gathering and
acquisition of 3 Bear
BRENTWOOD, Tenn., Feb. 28,
2023 /PRNewswire/ -- Delek US Holdings, Inc. (NYSE:
DK) ("Delek US", "Company") today announced financial results for
its fourth quarter ended December 31,
2022.
"2022 was a record year for Delek US. Market conditions were
strong for refining and midstream, and we were well positioned to
capture opportunities throughout the year," said Avigal Soreq,
President and Chief Executive Officer of Delek US. "Refining's
crude utilization rate was 93 percent for 2022. This includes
unplanned downtime at the Big Spring Refinery during the fourth
quarter of 2022. Our Logistics segment ran extremely well all year,
its record EBITDA reflects this, as well as the successful
integration of the 3 Bear assets."
"During 2022, we returned to shareholder friendly pre-pandemic
practices. We returned $236 million
through share repurchases and dividends for the year. To improve
our cost structure, we launched a cost reduction and process
improvement effort. We expect $30
million to $40 million of
lower costs in 2023, and $90 million
to $100 million on an annual run rate
basis once complete. And finally, we are focused on our sum
of the parts strategic initiative. Currently, we are evaluating
various options and opportunities around logistics and retail, we
look forward to unlocking value for our stakeholders," Mr. Soreq
continued.
"Looking ahead, the refining cracks remain elevated. We
believe we are well positioned to capture opportunities in the
market, given the successful turnaround at the Tyler Refinery, and
no significant planned downtime scheduled until late 2024.
With this, the board was very supportive and approved an additional
5 percent increase to the quarterly regular dividend, raising it to
22 cents per share," Mr. Soreq
concluded.
1 |
Delek US Holdings Results
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
($ in millions,
except per share data)
|
|
2022
|
|
2021
As Adjusted
(1)
|
|
2022
|
|
2021
As Adjusted
(1)
|
Net income (loss)
attributable to Delek
|
|
$
(118.7)
|
|
$
(13.4)
|
|
$
257.1
|
|
$
(128.3)
|
Diluted income (loss)
per share
|
|
$
(1.73)
|
|
$
(0.18)
|
|
$
3.59
|
|
$
(1.73)
|
Adjusted net
income (loss)
|
|
$
60.8
|
|
$
(63.2)
|
|
$
525.6
|
|
$
(294.0)
|
Adjusted net
income (loss) per share
|
|
$
0.88
|
|
$
(0.86)
|
|
$
7.33
|
|
$
(3.95)
|
Adjusted
EBITDA
|
|
$
220.9
|
|
$
32.8
|
|
$
1,185.8
|
|
$
37.7
|
|
(1)
Adjusted to reflect the retrospective change in accounting policy
from LIFO to FIFO for certain inventories.
|
Refining Segment
The refining segment Adjusted EBITDA was $182.0 million in the fourth quarter 2022
compared with a loss of $(3.3)
million in the same quarter last year. The increase over
2021, is primarily due to higher refining crack spreads.
During the fourth quarter 2022, Delek US's benchmark crack spreads
were up an average of 76.0% from prior-year levels.
Logistics Segment
The logistics segment Adjusted EBITDA in the fourth quarter 2022
was $90.6 million compared with
$68.1 million in the prior year
quarter. The increase over last year's fourth quarter was driven by
strong contributions from the Delek Permian Gathering system and
the acquisition of 3 Bear Delaware Holding - NM, LLC ("3 Bear") on
June 1, 2022.
Retail Segment
For the fourth quarter 2022, Adjusted EBITDA was $7.8 million compared with $10.0 million in the prior-year period for the
retail segment. The decrease was primarily driven by reduced
volumes and lower average margins during the fourth quarter in 2022
compared with the fourth quarter of 2021.
Corporate and Other Activity
Adjusted EBITDA from Corporate, Other and Eliminations was a
loss of $(59.5) million in the fourth
quarter 2022 compared to a loss of $(42.0)
million in the prior-year period. The higher losses
are driven by general and administrative costs, primarily related
to benefit related expenses.
Shareholder Distributions
During the fourth quarter 2022, Delek US repurchased
approximately 2.8 million shares of Delek US common stock for
approximately $89.6 million, with an
average price of $31.70 per
share. In addition, in the fourth quarter, the Board of
Directors increased the quarterly regular dividend by $0.01 per share to $0.21 per share. On February 27, 2023, the Board of Directors
approved an additional $0.01 per
share increase in the quarterly regular dividend to $0.22 per share that will be paid on March 17, 2023 to shareholders of record on
March 10, 2023.
Liquidity
As of December 31, 2022, Delek US
had a cash balance of $841.3 million
and total consolidated long-term debt of $3,053.7 million, resulting in Net debt of
$2.21 billion. As of December 31, 2022, Delek Logistics Partners, LP
(NYSE: DKL) ("Delek Logistics") had $8.0
million of cash and $1,661.6
million of total long-term debt, which are included in the
consolidated amounts on Delek US' balance sheet. Excluding Delek
Logistics, Delek US had $833.3
million in cash and $1,392.1
million of long-term debt, or a $558.8 million net debt position.
Fourth Quarter 2022 Results | Conference Call
Information
Delek US will hold a conference call to discuss its fourth
quarter 2022 results on Tuesday, February
28, 2023 at 2:00 p.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) fourth quarter 2022 earnings conference call that will be held
on Tuesday, February 28, 2022 at
3:30 p.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.
2 |
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 249
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 affiliates owned approximately 78.8% (including the general
partner interest) of Delek Logistics Partners, LP at December 31, 2022.
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; 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 3 Bear 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 OPEC regarding production and pricing
disputes between OPEC members and Russia; risks and uncertainties related to the
integration by Delek Logistics of the 3 Bear business following the
recent acquisition; risks and uncertainties related to the Covid-19
pandemic; 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.
3 |
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 GAAP financial information presented in
accordance with U.S. 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
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), unrealized hedging (gain) loss, and non-cash
changes in fair value of the S&O obligation associated with
hedging activities;
- Refining production margin - calculated based on the regional
market sales price of refined products produced, less allocated
transportation, RFS renewable 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 sales barrel - calculated as
refining margin divided by our average refining sales 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, and Adjusted Refining Segment 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.
4 |
Delek US Holdings,
Inc.
|
Condensed
Consolidated Balance Sheets (Unaudited)
|
($ in millions,
except share and per share data)
|
|
|
December 31,
2022
|
|
December 31,
2021
As Adjusted
(1)
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
841.3
|
|
$
856.5
|
Accounts receivable,
net
|
|
1,234.4
|
|
776.6
|
Inventories, net of
inventory valuation reserves
|
|
1,518.5
|
|
1,260.7
|
Other current
assets
|
|
122.7
|
|
126.0
|
Total current
assets
|
|
3,716.9
|
|
3,019.8
|
Property, plant and
equipment:
|
|
|
|
|
Property, plant and
equipment
|
|
4,349.0
|
|
3,645.4
|
Less: accumulated
depreciation
|
|
(1,572.6)
|
|
(1,338.1)
|
Property, plant and
equipment, net
|
|
2,776.4
|
|
2,307.3
|
Operating lease
right-of-use assets
|
|
179.5
|
|
208.5
|
Goodwill
|
|
744.3
|
|
729.7
|
Other intangibles,
net
|
|
315.6
|
|
102.7
|
Equity method
investments
|
|
359.7
|
|
344.1
|
Other non-current
assets
|
|
100.4
|
|
100.5
|
Total
assets
|
|
$
8,192.8
|
|
$
6,812.6
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
1,745.6
|
|
$
1,695.3
|
Current portion of
long-term debt
|
|
74.5
|
|
92.2
|
Current portion of
obligation under Inventory Intermediation Agreements
|
|
49.9
|
|
487.5
|
Current portion of
operating lease liabilities
|
|
49.6
|
|
53.9
|
Accrued expenses and
other current liabilities
|
|
1,166.8
|
|
797.8
|
Total current
liabilities
|
|
3,086.4
|
|
3,126.7
|
Non-current
liabilities:
|
|
|
|
|
Long-term debt, net of
current portion
|
|
2,979.2
|
|
2,125.8
|
Obligation under
Inventory Intermediation Agreements
|
|
491.8
|
|
—
|
Environmental
liabilities, net of current portion
|
|
111.5
|
|
109.5
|
Asset retirement
obligations
|
|
41.8
|
|
38.3
|
Deferred tax
liabilities
|
|
266.5
|
|
214.5
|
Operating lease
liabilities, net of current portion
|
|
122.4
|
|
152.0
|
Other non-current
liabilities
|
|
23.7
|
|
31.8
|
Total non-current
liabilities
|
|
4,036.9
|
|
2,671.9
|
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, 84,509,517 shares and
91,772,080 shares issued at December 31, 2022 and December 31,
2021, respectively
|
|
0.9
|
|
0.9
|
Additional paid-in
capital
|
|
1,134.1
|
|
1,206.5
|
Accumulated other
comprehensive loss
|
|
(5.2)
|
|
(3.8)
|
Treasury stock,
17,575,527 shares, at cost, as of December 31, 2022 and December
31, 2021
|
|
(694.1)
|
|
(694.1)
|
Retained
earnings
|
|
507.9
|
|
384.7
|
Non-controlling
interests in subsidiaries
|
|
125.9
|
|
119.8
|
Total stockholders'
equity
|
|
1,069.5
|
|
1,014.0
|
Total liabilities and
stockholders' equity
|
|
$
8,192.8
|
|
$
6,812.6
|
|
(1)
Adjusted to reflect the retrospective change in accounting policy
from LIFO to FIFO for certain inventories.
|
______________________________________________________________________________________________________________________
|
5 |
Delek US Holdings,
Inc.
|
Condensed
Consolidated Statements of Income (Unaudited)
|
($ in millions,
except share and per share data)
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
|
2022
|
|
2021
As Adjusted
(1)
|
|
2022
|
|
2021
As Adjusted (1)
(2)
|
Net revenues
|
|
$
4,479.2
|
|
$
3,108.0
|
|
$
20,245.8
|
|
$
10,648.2
|
Cost of
sales:
|
|
|
|
|
|
|
|
|
Cost of materials and
other
|
|
4,204.5
|
|
2,832.5
|
|
18,355.6
|
|
9,643.9
|
Operating expenses
(excluding depreciation and amortization
presented below)
|
|
175.6
|
|
138.9
|
|
701.8
|
|
502.0
|
Depreciation and
amortization
|
|
71.8
|
|
61.2
|
|
263.8
|
|
239.6
|
Total cost of
sales
|
|
4,451.9
|
|
3,032.6
|
|
19,321.2
|
|
10,385.5
|
Insurance
proceeds
|
|
(3.9)
|
|
(18.9)
|
|
(31.2)
|
|
(23.3)
|
Operating expenses
related to retail and wholesale business
(excluding depreciation and amortization presented
below)
|
|
17.2
|
|
23.5
|
|
106.8
|
|
110.4
|
General and
administrative expenses
|
|
106.8
|
|
65.0
|
|
348.8
|
|
212.6
|
Depreciation and
amortization
|
|
6.0
|
|
7.8
|
|
23.2
|
|
25.0
|
Other operating income,
net
|
|
4.7
|
|
(27.0)
|
|
(12.5)
|
|
(27.3)
|
Total operating costs
and expenses
|
|
4,582.7
|
|
3,083.0
|
|
19,756.3
|
|
10,682.9
|
Operating income
(loss)
|
|
(103.5)
|
|
25.0
|
|
489.5
|
|
(34.7)
|
Interest expense,
net
|
|
62.6
|
|
36.7
|
|
195.3
|
|
136.7
|
Income from equity
method investments
|
|
(13.3)
|
|
(3.8)
|
|
(57.7)
|
|
(18.3)
|
Other income,
net
|
|
0.5
|
|
0.2
|
|
(2.5)
|
|
(15.8)
|
Total non-operating
expense, net
|
|
49.8
|
|
33.1
|
|
135.1
|
|
102.6
|
Income (loss) before
income tax expense (benefit)
|
|
(153.3)
|
|
(8.1)
|
|
354.4
|
|
(137.3)
|
Income tax expense
(benefit)
|
|
(43.6)
|
|
(3.0)
|
|
63.9
|
|
(42.0)
|
Net income
(loss)
|
|
(109.7)
|
|
(5.1)
|
|
290.5
|
|
(95.3)
|
Net income attributed
to non-controlling interests
|
|
9.0
|
|
8.3
|
|
33.4
|
|
33.0
|
Net income (loss)
attributable to Delek
|
|
$
(118.7)
|
|
$
(13.4)
|
|
$
257.1
|
|
$
(128.3)
|
Basic income (loss) per
share
|
|
$
(1.73)
|
|
$
(0.18)
|
|
$
3.63
|
|
$
(1.73)
|
Diluted income (loss)
per share
|
|
$
(1.73)
|
|
$
(0.18)
|
|
$
3.59
|
|
$
(1.73)
|
Weighted average common
shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
68,697,820
|
|
74,141,908
|
|
70,789,458
|
|
73,984,104
|
Diluted
|
|
68,697,820
|
|
74,141,908
|
|
71,516,361
|
|
73,984,104
|
|
|
(1)
|
Adjusted to reflect the
retrospective change in accounting policy from LIFO to FIFO for
certain inventories.
|
(2)
|
In the current period,
we reassessed the classification of certain expenses and made
certain reclassification adjustments to better represent the nature
of those
expenses. Accordingly, we have made reclassifications to the prior
period in order to conform to this revised current period
classification, which resulted in a decrease
in the prior period general and administrative expenses and an
increase in the prior period operating expenses of approximately
$16.8 million for the year ended
December 31, 2021.
|
___________________________________________________________________________________________________________________________
|
Condensed Cash Flow
Data (Unaudited)
|
($ in
millions)
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
2022
|
|
2021
As Adjusted
(1)
|
|
2022
|
|
2021
As Adjusted
(1)
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
Net cash (used in)
provided by operating activities
|
$
(290.8)
|
|
$
161.2
|
|
$
425.3
|
|
$
371.4
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
Net cash used in
investing activities
|
(111.7)
|
|
(35.2)
|
|
(931.6)
|
|
(178.4)
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
Net cash provided by
(used in) financing activities
|
90.0
|
|
(100.1)
|
|
491.1
|
|
(124.0)
|
Net (decrease) increase
in cash and cash equivalents
|
(312.5)
|
|
25.9
|
|
(15.2)
|
|
69.0
|
Cash and cash
equivalents at the beginning of the period
|
1,153.8
|
|
830.6
|
|
856.5
|
|
787.5
|
Cash and cash
equivalents at the end of the period
|
$
841.3
|
|
$
856.5
|
|
$
841.3
|
|
$
856.5
|
|
(1)
Adjusted to reflect the retrospective change in accounting policy
from LIFO to FIFO for certain inventories.
|
_____________________________________________________________________________________________________________________
|
6 |
Significant Transactions During the Quarter Impacting
Results:
Insurance Recoveries
During the fourth quarter 2022, we received insurance recoveries
related to the fire and freeze events that occurred during the
first quarter 2021, which unfavorably impacted our results during
the first two quarters of 2021. For the three months ended
December 31, 2022, we have recognized
an additional $5.2 million
($4.0 million after-tax) of business
interruption insurance recoveries, which were recorded in other
operating income on the consolidated statement of income. We have
additional business interruption claims that are outstanding and
still pending which are expected to be recognized in future
quarters. Because business interruption losses are economic in
nature rather than recognized, the related insurance recoveries are
included as an Adjusting item in Adjusted net income and Adjusted
EBITDA.
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
and per barrel cost of materials and other for the period
recognized on a FIFO basis. 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.
Segment Reporting
During the fourth quarter 2022, we realigned our reportable
segments for financial reporting purposes to reflect changes in the
manner in which our chief operating decision maker, or CODM,
assesses financial information for decision-making purposes.
The change primarily represents reporting the operating results of
wholesale crude operations within the refining segment. Prior to
this change, wholesale crude operations were reported as part of
corporate, other and eliminations. Through September 30, 2022, the CODM believed that
contribution margin was a meaningful measure of performance, and it
was used by CODM to analyze the Company and stand-alone operating
segment performance. During the fourth quarter 2022, the CODM
determined that EBITDA is the key performance measure for planning
and forecasting purposes and discontinued the use of contribution
margin as a measure of performance. While these reporting changes
did not change our consolidated results, segment data for previous
years has been restated and is consistent with the current year
presentation.
Inventory Intermediation Agreement
On December 22, 2022, Delek US
entered into an inventory intermediation agreement (the "Inventory
Intermediation Agreement") with Citigroup Energy Inc. ("Citi").
Pursuant to the Inventory Intermediation Agreement, Citi will (i)
purchase from and sell to Delek US crude oil and other petroleum
feedstocks in connection with processing operations at certain
refineries, (ii) purchase from and sell to Delek US all refined
products produced by such refineries other than certain excluded
products and (iii) in connection with such purchases and sales,
Delek US will enter into certain market risk hedges in each case,
on the terms and subject to the conditions set forth therein.
On December 27, 2022, in
connection with entry into the Inventory Intermediation Agreement,
Delek US and J. Aron & Company LLC ("J. Aron") agreed to
terminate the existing supply and offtake agreements, with each
such termination effective as of December
30, 2022.
Restructuring Costs
In November 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 three months ended December 31, 2022, we recorded restructuring
costs totaling $12.5 million
($9.5 million after-tax) associated
with our business transformation. These costs are recorded in
general and administrative expenses in our consolidated statements
of income and are reported in our Corporate segment.
7 |
Reconciliation of
Net Income (Loss) Attributable to Delek to Adjusted Net Income
(Loss)
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
$ in millions
(unaudited)
|
|
2022
|
|
2021
As Adjusted
(1)
|
|
2022
|
|
2021
As Adjusted
(1)
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Reported net income
(loss) attributable to Delek
|
|
$
(118.7)
|
|
$
(13.4)
|
|
$
257.1
|
|
$
(128.3)
|
Adjusting
items (2)
|
|
|
|
|
|
|
|
|
Inventory LCM valuation
(benefit) loss
|
|
(17.2)
|
|
8.2
|
|
1.9
|
|
8.5
|
Tax effect
|
|
3.9
|
|
(1.9)
|
|
(0.4)
|
|
(2.0)
|
Inventory LCM valuation
(benefit) loss, net
|
|
(13.3)
|
|
6.3
|
|
1.5
|
|
6.5
|
Other inventory
impact
|
|
193.6
|
|
(61.6)
|
|
331.1
|
|
(218.1)
|
Tax effect
|
|
(44.2)
|
|
14.4
|
|
(75.7)
|
|
50.8
|
Other inventory impact,
net (3)
|
|
149.4
|
|
(47.2)
|
|
255.4
|
|
(167.3)
|
Business interruption
insurance recoveries
|
|
(5.2)
|
|
(9.9)
|
|
(31.1)
|
|
(9.9)
|
Tax effect
|
|
1.2
|
|
2.2
|
|
7.0
|
|
2.2
|
Business interruption
insurance recoveries, net (3)
|
|
(4.0)
|
|
(7.7)
|
|
(24.1)
|
|
(7.7)
|
Total El Dorado
refinery fire net losses, net of related recoveries
|
|
—
|
|
4.0
|
|
—
|
|
7.8
|
Tax effect
|
|
—
|
|
(1.0)
|
|
—
|
|
(1.9)
|
El Dorado refinery fire
losses, net of related recoveries, net
|
|
—
|
|
3.0
|
|
—
|
|
5.9
|
Total unrealized
hedging (gain) loss where the hedged item is
not yet recognized in the financial statements
|
|
50.1
|
|
(5.5)
|
|
24.1
|
|
6.7
|
Tax effect
|
|
(12.2)
|
|
1.3
|
|
(5.9)
|
|
(1.6)
|
Unrealized hedging
(gain) loss where the hedged item is not yet
recognized in the financial statements, net
|
|
37.9
|
|
(4.2)
|
|
18.2
|
|
5.1
|
Non-cash change in fair
value of Supply and Offtake ("S&O")
Obligation associated with hedging activities
|
|
—
|
|
—
|
|
—
|
|
(6.9)
|
Tax effect
|
|
—
|
|
—
|
|
—
|
|
1.5
|
Non-cash change in fair
value of S&O Obligation associated
with hedging activities, net
|
|
—
|
|
—
|
|
—
|
|
(5.4)
|
Non-operating
litigation accrual related to pre-Delek/Alon
Merger shareholder action
|
|
—
|
|
—
|
|
—
|
|
6.5
|
Tax effect
|
|
—
|
|
—
|
|
—
|
|
(1.6)
|
Non-operating
litigation accrual related to pre-Delek/Alon
Merger shareholder action, net
|
|
—
|
|
—
|
|
—
|
|
4.9
|
In-substance
indemnification recoveries from WTW Contract
Termination in excess of amounts that have or will impact net
income
|
|
—
|
|
—
|
|
—
|
|
(10.2)
|
Tax effect
|
|
—
|
|
—
|
|
—
|
|
2.5
|
Contract termination
recoveries in excess of amounts that have or
will impact net income
|
|
—
|
|
—
|
|
—
|
|
(7.7)
|
Transaction related
expenses
|
|
—
|
|
—
|
|
10.6
|
|
—
|
Tax effect
|
|
—
|
|
—
|
|
(2.6)
|
|
—
|
Transaction related
expenses, net (3)
|
|
—
|
|
—
|
|
8.0
|
|
—
|
Restructuring
costs
|
|
12.5
|
|
—
|
|
12.5
|
|
—
|
Tax effect
|
|
(3.0)
|
|
—
|
|
(3.0)
|
|
—
|
Restructuring costs,
net (3)
|
|
9.5
|
|
—
|
|
9.5
|
|
—
|
Total adjusting
items (2)
|
|
179.5
|
|
(49.8)
|
|
268.5
|
|
(165.7)
|
Adjusted net
income (loss)
|
|
$
60.8
|
|
$
(63.2)
|
|
$
525.6
|
|
$
(294.0)
|
|
(1) Adjusted to reflect the
retrospective change in accounting policy from LIFO to FIFO for
certain inventories.
|
(2)
All adjustments have been tax effected using the estimated
marginal income tax rate, as applicable.
|
(3)
See further discussion in the "Significant Transactions
During the Quarter Impacting Results" section.
|
_____________________________________________________________________________________________________________________________
|
8 |
Reconciliation of
U.S. GAAP Income (Loss) per share to Adjusted Net Income (Loss) per
share:
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
$ per share
(unaudited)
|
|
2022
|
|
2021
As Adjusted
(1)
|
|
2022
|
|
2021
As Adjusted
(1)
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Reported diluted
income (loss) per share
|
|
$
(1.73)
|
|
$
(0.18)
|
|
$
3.59
|
|
$
(1.73)
|
Adjusting items,
after tax (per share) (2) (3)
|
|
|
|
|
|
|
|
|
Net inventory LCM
valuation (benefit) loss
|
|
(0.19)
|
|
0.08
|
|
0.02
|
|
0.09
|
Other inventory impact
(4)
|
|
2.17
|
|
(0.64)
|
|
3.57
|
|
(2.26)
|
El Dorado refinery
fire net losses, net of related recoveries
|
|
—
|
|
0.04
|
|
—
|
|
0.08
|
Business interruption
insurance recoveries (4)
|
|
(0.06)
|
|
(0.10)
|
|
(0.34)
|
|
(0.10)
|
Total unrealized
hedging (gain) loss where the hedged item is
not yet recognized in the financial statements
|
|
0.55
|
|
(0.06)
|
|
0.25
|
|
0.07
|
Non-cash change in
fair value of S&O Obligation associated
with hedging activities
|
|
—
|
|
—
|
|
—
|
|
(0.07)
|
Non-operating
litigation accrual related to pre-Delek/Alon
Merger shareholder action
|
|
—
|
|
—
|
|
—
|
|
0.07
|
Contract termination
recoveries in excess of amounts that
have or will impact net income
|
|
—
|
|
—
|
|
—
|
|
(0.10)
|
Transaction related
expenses (4)
|
|
—
|
|
—
|
|
0.11
|
|
—
|
Restructuring costs
(4)
|
|
0.14
|
|
—
|
|
0.13
|
|
—
|
Total adjusting
items (2)
|
|
2.61
|
|
(0.68)
|
|
3.74
|
|
(2.22)
|
Adjusted net
income (loss) per share
|
|
$
0.88
|
|
$
(0.86)
|
|
$
7.33
|
|
$
(3.95)
|
|
(1) Adjusted
to reflect the retrospective change in accounting policy from LIFO
to FIFO for certain inventories.
|
(2) The
adjustments have been tax effected using the estimated marginal tax
rate, as applicable.
|
(3) For
periods of Adjusted net loss, Adjustments (Adjusting Items) and
Adjusted net loss per share are presented using basic weighted
average shares outstanding.
|
(4) See
further discussion in the "Significant Transactions During the
Quarter Impacting Results" section.
|
________________________________________________________________________________________________________________________
|
9 |
Reconciliation of
Net Income (Loss) attributable to Delek to Adjusted
EBITDA
|
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
$ in millions
(unaudited)
|
|
2022
|
|
2021
As Adjusted
(1)
|
|
2022
|
|
2021
As Adjusted
(1)
|
Reported net (loss)
income attributable to Delek
|
|
$
(118.7)
|
|
$
(13.4)
|
|
$
257.1
|
|
$
(128.3)
|
Interest expense,
net
|
|
62.6
|
|
36.7
|
|
195.3
|
|
136.7
|
Income tax expense
(benefit)
|
|
(43.6)
|
|
(3.0)
|
|
63.9
|
|
(42.0)
|
Depreciation and
amortization
|
|
77.8
|
|
69.0
|
|
287.0
|
|
264.6
|
EBITDA attributable to
Delek
|
|
(21.9)
|
|
89.3
|
|
803.3
|
|
231.0
|
Adjusting
items
|
|
|
|
|
|
|
|
|
Net inventory LCM
valuation (benefit) loss
|
|
(17.2)
|
|
8.2
|
|
1.9
|
|
8.5
|
Other inventory impact
(2)
|
|
193.6
|
|
(61.6)
|
|
331.1
|
|
(218.1)
|
Business Interruption
insurance recoveries (2)
|
|
(5.2)
|
|
(9.9)
|
|
(31.1)
|
|
(9.9)
|
El Dorado refinery fire
losses, net of related insurance recoveries
|
|
—
|
|
4.0
|
|
—
|
|
7.8
|
Unrealized hedging
(gain) loss where the hedged item is not yet
recognized in the financial statements
|
|
50.1
|
|
(5.5)
|
|
24.1
|
|
6.7
|
Non-cash change in fair
value of S&O Obligation associated
with hedging activities
|
|
—
|
|
—
|
|
—
|
|
(6.9)
|
Non-operating
litigation accrual related to pre-Delek/Alon
Merger shareholder action
|
|
—
|
|
—
|
|
—
|
|
6.5
|
Contract termination
recoveries in excess of amounts that have
or will impact EBITDA
|
|
—
|
|
—
|
|
—
|
|
(20.9)
|
Transaction related
expenses (2)
|
|
—
|
|
—
|
|
10.6
|
|
—
|
Restructuring costs
(2)
|
|
12.5
|
|
—
|
|
12.5
|
|
—
|
Net income attributable
to non-controlling interest
|
|
9.0
|
|
8.3
|
|
33.4
|
|
33.0
|
Total Adjusting
items
|
|
242.8
|
|
(56.5)
|
|
382.5
|
|
(193.3)
|
Adjusted
EBITDA
|
|
$
220.9
|
|
$
32.8
|
|
$
1,185.8
|
|
$
37.7
|
|
(1)
Adjusted to reflect the retrospective change in accounting policy
from LIFO to FIFO for certain inventories.
|
(2)
See further discussion in the "Significant Transactions
During the Quarter Impacting Results" section.
|
_________________________________________________________________________________________________________________________
|
Reconciliation of
Segment EBITDA Attributable to Delek to Adjusted Segment
EBITDA:
|
|
|
Three Months Ended
December 31, 2022
|
$ in millions
(unaudited)
|
|
Refining
|
|
Logistics
|
|
Retail
|
|
Corporate,
Other and
Eliminations
|
|
Consolidated
|
Segment EBITDA
Attributable to Delek
|
|
$
(39.1)
|
|
$
90.7
|
|
$
7.8
|
|
$
(81.3)
|
|
$
(21.9)
|
Adjusting
items
|
|
|
|
|
|
|
|
|
|
|
Net inventory LCM
valuation (benefit) loss
|
|
(17.1)
|
|
(0.1)
|
|
—
|
|
—
|
|
(17.2)
|
Other inventory impact
(2)
|
|
193.6
|
|
—
|
|
—
|
|
—
|
|
193.6
|
Unrealized
inventory/commodity hedging (gain) loss
where the hedged item is not yet recognized in the
financial statements
|
|
38.7
|
|
—
|
|
—
|
|
0.3
|
|
39.0
|
Unrealized RINs and
other hedging (gain) loss where
the hedged item is not yet recognized in the financial
statements
|
|
11.1
|
|
—
|
|
—
|
|
—
|
|
11.1
|
Total unrealized
hedging (gain) loss where the hedged
item is not yet recognized in the financial statements
|
|
49.8
|
|
—
|
|
—
|
|
0.3
|
|
50.1
|
Restructuring costs
(2)
|
|
—
|
|
—
|
|
—
|
|
12.5
|
|
12.5
|
Business Interruption
insurance recoveries (2)
|
|
(5.2)
|
|
—
|
|
—
|
|
—
|
|
(5.2)
|
Net income attributable
to non-controlling interest
|
|
—
|
|
—
|
|
—
|
|
9.0
|
|
9.0
|
Total Adjusting
items
|
|
221.1
|
|
(0.1)
|
|
—
|
|
21.8
|
|
242.8
|
Adjusted Segment
EBITDA
|
|
$
182.0
|
|
$
90.6
|
|
$
7.8
|
|
$
(59.5)
|
|
$
220.9
|
10 |
|
|
Three Months Ended
December 31, 2021, As Adjusted (1)
|
$ in millions
(unaudited)
|
|
Refining
(1)
|
|
Logistics
|
|
Retail
|
|
Corporate,
Other and
Eliminations
|
|
Consolidated
(1)
|
Segment EBITDA
Attributable to Delek
|
|
$
61.7
|
|
$
67.9
|
|
$
10.0
|
|
$
(50.3)
|
|
$
89.3
|
Adjusting
items
|
|
|
|
|
|
|
|
|
|
|
Net inventory LCM
valuation (benefit) loss
|
|
8.0
|
|
0.2
|
|
—
|
|
—
|
|
8.2
|
Other inventory impact
(2)
|
|
(61.6)
|
|
—
|
|
—
|
|
—
|
|
(61.6)
|
Unrealized
inventory/commodity hedging (gain) loss
where the hedged item is not yet recognized in the
financial statements
|
|
(6.0)
|
|
—
|
|
—
|
|
—
|
|
(6.0)
|
Unrealized RINs and
other hedging (gain) loss where
the hedged item is not yet recognized in the financial
statements
|
|
0.5
|
|
—
|
|
—
|
|
—
|
|
0.5
|
Total unrealized
hedging (gain) loss where the hedged
item is not yet recognized in the financial statements
|
|
(5.5)
|
|
—
|
|
—
|
|
—
|
|
(5.5)
|
El Dorado refinery fire
losses
|
|
4.0
|
|
—
|
|
—
|
|
—
|
|
4.0
|
Business Interruption
insurance recoveries (2)
|
|
(9.9)
|
|
—
|
|
—
|
|
—
|
|
(9.9)
|
Net income attributable
to non-controlling interest
|
|
—
|
|
—
|
|
—
|
|
8.3
|
|
8.3
|
Total Adjusting
items
|
|
(65.0)
|
|
0.2
|
|
—
|
|
8.3
|
|
(56.5)
|
Adjusted Segment
EBITDA
|
|
$
(3.3)
|
|
$
68.1
|
|
$
10.0
|
|
$
(42.0)
|
|
$
32.8
|
|
|
Year Ended December
31, 2022
|
$ in millions
(unaudited)
|
|
Refining
|
|
Logistics
|
|
Retail
|
|
Corporate,
Other and
Eliminations
|
|
Consolidated
|
Segment EBITDA
Attributable to Delek
|
|
$
719.1
|
|
$
304.8
|
|
$
44.1
|
|
$
(264.7)
|
|
$
803.3
|
Adjusting
items
|
|
|
|
|
|
|
|
|
|
|
Net inventory LCM
valuation (benefit) loss
|
|
2.0
|
|
(0.1)
|
|
—
|
|
—
|
|
1.9
|
Other inventory impact
(2)
|
|
331.1
|
|
—
|
|
—
|
|
—
|
|
331.1
|
Unrealized
inventory/commodity hedging (gain) loss
where the hedged item is not yet recognized in the
financial statements
|
|
8.1
|
|
—
|
|
—
|
|
—
|
|
8.1
|
Unrealized RINs and
other hedging (gain) loss where
the hedged item is not yet recognized in the financial
statements
|
|
16.0
|
|
—
|
|
—
|
|
—
|
|
16.0
|
Total unrealized
hedging (gain) loss where the hedged
item is not yet recognized in the financial statements
|
|
24.1
|
|
—
|
|
—
|
|
—
|
|
24.1
|
Restructuring costs
(2)
|
|
—
|
|
—
|
|
—
|
|
12.5
|
|
12.5
|
Transaction related
expenses
|
|
—
|
|
10.6
|
|
—
|
|
—
|
|
10.6
|
Business Interruption
insurance recoveries (2)
|
|
(31.1)
|
|
—
|
|
—
|
|
—
|
|
(31.1)
|
Net income attributable
to non-controlling interest
|
|
—
|
|
—
|
|
—
|
|
33.4
|
|
33.4
|
Total Adjusting
items
|
|
326.1
|
|
10.5
|
|
—
|
|
45.9
|
|
382.5
|
Adjusted Segment
EBITDA
|
|
$
1,045.2
|
|
$
315.3
|
|
$
44.1
|
|
$
(218.8)
|
|
$
1,185.8
|
11 |
Reconciliation of
Segment EBITDA Attributable to Delek to Adjusted Segment EBITDA
(continued)
|
|
|
Year Ended December
31, 2021, As Adjusted (1)
|
$ in millions
(unaudited)
|
|
Refining
(1)
|
|
Logistics
|
|
Retail
|
|
Corporate,
Other and
Eliminations
|
|
Consolidated
(1)
|
Segment EBITDA
Attributable to Delek
|
|
$
69.2
|
|
$
258.0
|
|
$
51.1
|
|
$
(147.3)
|
|
$
231.0
|
Adjusting
items
|
|
|
|
|
|
|
|
|
|
|
Net inventory LCM
valuation (benefit) loss
|
|
8.4
|
|
0.1
|
|
—
|
|
—
|
|
8.5
|
Other inventory impact
(2)
|
|
(218.1)
|
|
—
|
|
—
|
|
—
|
|
(218.1)
|
Unrealized
inventory/commodity hedging (gain) loss
where the hedged item is not yet recognized in the
financial statements
|
|
6.7
|
|
(0.3)
|
|
—
|
|
—
|
|
6.4
|
Unrealized RINs and
other hedging (gain) loss where
the hedged item is not yet recognized in the financial
statements
|
|
0.3
|
|
—
|
|
—
|
|
—
|
|
0.3
|
Total unrealized
hedging (gain) loss where the hedged
item is not yet recognized in the financial statements
|
|
7.0
|
|
(0.3)
|
|
—
|
|
—
|
|
6.7
|
El Dorado refinery fire
losses
|
|
7.8
|
|
|
|
|
|
|
|
7.8
|
Business Interruption
insurance recoveries (2)
|
|
(9.9)
|
|
—
|
|
—
|
|
—
|
|
(9.9)
|
Non-cash change in fair
value of S&O Obligation
associated with hedging activities
|
|
(6.9)
|
|
—
|
|
—
|
|
—
|
|
(6.9)
|
Non-operating
litigation accrual related to pre-Delek/Alon
Merger shareholder action
|
|
—
|
|
—
|
|
—
|
|
6.5
|
|
6.5
|
Contract termination
recoveries in excess of amounts that
have or will impact EBITDA
|
|
—
|
|
—
|
|
—
|
|
(20.9)
|
|
(20.9)
|
Net income attributable
to non-controlling interest
|
|
—
|
|
—
|
|
—
|
|
33.0
|
|
33.0
|
Total Adjusting
items
|
|
(211.7)
|
|
(0.2)
|
|
—
|
|
18.6
|
|
(193.3)
|
Adjusted Segment
EBITDA
|
|
$
(142.5)
|
|
$
257.8
|
|
$
51.1
|
|
$
(128.7)
|
|
$
37.7
|
|
(1) Adjusted to reflect the
retrospective change in accounting policy from LIFO to FIFO for
certain inventories.
|
(2) See
further discussion in the "Significant Transactions During the
Quarter Impacting Results" section.
|
______________________________________________________________________________________________________________________________
|
12 |
Refining Segment
Selected Financial Information
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
2022
|
|
2021
As Adjusted
(2)
|
|
2022
|
|
2021
As Adjusted
(2)
|
Total Refining
Segment
|
|
(Unaudited)
|
|
(Unaudited)
|
Days in
period
|
|
92
|
|
92
|
|
365
|
|
365
|
Total sales volume -
refined product (average barrels per day
("bpd")) (1)
|
|
274,148
|
|
301,648
|
|
299,004
|
|
275,075
|
Total production
(average bpd)
|
|
278,384
|
|
297,591
|
|
290,040
|
|
260,507
|
|
|
|
|
|
|
|
|
|
Crude oil
|
|
257,937
|
|
278,851
|
|
281,205
|
|
250,632
|
Other
feedstocks
|
|
22,492
|
|
19,784
|
|
10,558
|
|
12,305
|
Total throughput
(average bpd):
|
|
280,429
|
|
298,635
|
|
291,763
|
|
262,937
|
|
|
|
|
|
|
|
|
|
Total refining
production margin per bbl total throughput
|
|
$
15.68
|
|
$
5.91
|
|
$
18.22
|
|
$
4.20
|
Total refining
operating expenses per bbl total throughput
|
|
$
5.35
|
|
$
4.35
|
|
$
5.53
|
|
$
4.46
|
|
|
|
|
|
|
|
|
|
Total refining
production margin ($ in millions)
|
|
$
404.7
|
|
$
162.2
|
|
$
1,940.1
|
|
$
403.3
|
Trading & supply
and other ($ millions) (3)
|
|
(62.4)
|
|
(80.1)
|
|
(232.7)
|
|
(59.6)
|
Total refining segment
adjusted gross margin ($ in millions) (2)
|
|
$
342.3
|
|
$
82.1
|
|
$
1,707.4
|
|
$
343.7
|
|
|
|
|
|
|
|
|
|
Total crude slate
details
|
|
|
|
|
|
|
|
|
Total crude slate: (%
based on amount received in period)
|
|
|
|
|
|
|
|
|
WTI crude
oil
|
|
72.1 %
|
|
68.4 %
|
|
68.2 %
|
|
69.6 %
|
Gulf Coast Sweet
Crude
|
|
5.9 %
|
|
8.9 %
|
|
7.8 %
|
|
7.5 %
|
Local Arkansas crude
oil
|
|
4.2 %
|
|
4.1 %
|
|
4.1 %
|
|
4.5 %
|
Other
|
|
17.8 %
|
|
18.6 %
|
|
19.9 %
|
|
18.4 %
|
|
|
|
|
|
|
|
|
|
Crude utilization (%
based on nameplate capacity)(6)
|
|
85.4 %
|
|
92.3 %
|
|
93.1 %
|
|
83.0 %
|
|
|
|
|
|
|
|
|
|
Tyler, TX
Refinery
|
|
|
|
|
|
|
|
|
Days in
period
|
|
92
|
|
92
|
|
365
|
|
365
|
Products manufactured
(average bpd):
|
|
|
|
|
|
|
|
|
Gasoline
|
|
42,267
|
|
30,951
|
|
36,847
|
|
35,782
|
Diesel/Jet
|
|
32,487
|
|
23,606
|
|
31,419
|
|
27,553
|
Petrochemicals, LPG,
NGLs
|
|
1,979
|
|
1,823
|
|
2,114
|
|
1,957
|
Other
|
|
1,771
|
|
1,288
|
|
1,825
|
|
1,503
|
Total
production
|
|
78,504
|
|
57,668
|
|
72,205
|
|
66,795
|
Throughput (average
bpd):
|
|
|
|
|
|
|
|
|
Crude
oil
|
|
72,427
|
|
56,301
|
|
70,114
|
|
65,205
|
Other
feedstocks
|
|
7,266
|
|
1,822
|
|
2,604
|
|
1,971
|
Total
throughput
|
|
79,693
|
|
58,123
|
|
72,718
|
|
67,176
|
|
|
|
|
|
|
|
|
|
Tyler refining
production margin ($ in millions)
|
|
$
144.6
|
|
$
35.1
|
|
$
586.4
|
|
$
116.6
|
Per barrel of
throughput:
|
|
|
|
|
|
|
|
|
Tyler refining
production margin
|
|
$
19.72
|
|
$
6.56
|
|
$
22.09
|
|
$
4.76
|
Operating expenses
(4)
|
|
$
3.64
|
|
$
5.83
|
|
$
5.24
|
|
$
4.16
|
Crude Slate: (% based
on amount received in period)
|
|
|
|
|
|
|
|
|
WTI crude
oil
|
|
80.8 %
|
|
95.1 %
|
|
84.7 %
|
|
90.8 %
|
East Texas crude
oil
|
|
18.0 %
|
|
4.9 %
|
|
15.0 %
|
|
9.0 %
|
Other
|
|
1.2 %
|
|
— %
|
|
0.3 %
|
|
0.2 %
|
|
|
|
|
|
|
|
|
|
Capture Rate
(5)
|
|
61.1 %
|
|
37.5 %
|
|
66.2 %
|
|
28.6 %
|
El Dorado, AR
Refinery
|
|
|
|
|
|
|
|
|
Days in
period
|
|
92
|
|
92
|
|
365
|
|
365
|
Products manufactured
(average bpd):
|
|
|
|
|
|
|
|
|
Gasoline
|
|
38,119
|
|
43,834
|
|
38,738
|
|
32,004
|
Diesel
|
|
27,931
|
|
32,397
|
|
30,334
|
|
24,777
|
Petrochemicals, LPG,
NGLs
|
|
1,102
|
|
1,506
|
|
1,255
|
|
1,078
|
Asphalt
|
|
7,310
|
|
8,083
|
|
7,782
|
|
6,352
|
Other
|
|
2,347
|
|
820
|
|
1,200
|
|
646
|
Total
production
|
|
76,809
|
|
86,640
|
|
79,309
|
|
64,857
|
Throughput (average
bpd):
|
|
|
|
|
|
|
|
|
Crude oil
|
|
72,862
|
|
79,994
|
|
76,806
|
|
62,067
|
Other
feedstocks
|
|
5,106
|
|
7,022
|
|
3,646
|
|
3,580
|
Total
throughput
|
|
77,968
|
|
87,016
|
|
80,452
|
|
65,647
|
13 |
Refining Segment
Selected Financial Information
(continued)
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
2022
|
|
2021
As Adjusted
(2)
|
|
2022
|
|
2021
As Adjusted
(2)
|
El Dorado refining
production margin ($ in millions)
|
|
$
107.4
|
|
$
25.8
|
|
$
458.2
|
|
$
26.2
|
Per barrel of
throughput:
|
|
|
|
|
|
|
|
|
El Dorado refining
production margin
|
|
$
14.97
|
|
$
3.22
|
|
$
15.60
|
|
$
1.09
|
Operating expenses
(4)
|
|
$
4.72
|
|
$
4.13
|
|
$
4.61
|
|
$
4.29
|
Crude Slate: (% based
on amount received in period)
|
|
|
|
|
|
|
|
|
WTI crude
oil
|
|
64.7 %
|
|
43.3 %
|
|
55.1 %
|
|
49.0 %
|
Local Arkansas crude
oil
|
|
14.7 %
|
|
14.7 %
|
|
15.3 %
|
|
18.5 %
|
Other
|
|
20.6 %
|
|
42.0 %
|
|
29.6 %
|
|
32.5 %
|
|
|
|
|
|
|
|
|
|
Capture Rate
(5)
|
|
46.4 %
|
|
18.4 %
|
|
46.8 %
|
|
6.6 %
|
Big Spring, TX
Refinery
|
|
|
|
|
|
|
|
|
Days in
period
|
|
92
|
|
92
|
|
365
|
|
365
|
Products manufactured
(average bpd):
|
|
|
|
|
|
|
|
|
Gasoline
|
|
20,605
|
|
40,112
|
|
30,689
|
|
35,640
|
Diesel/Jet
|
|
12,815
|
|
27,580
|
|
22,125
|
|
25,284
|
Petrochemicals, LPG,
NGLs
|
|
1,387
|
|
3,832
|
|
2,942
|
|
3,712
|
Asphalt
|
|
1,895
|
|
1,509
|
|
1,721
|
|
1,475
|
Other
|
|
1,887
|
|
1,369
|
|
1,481
|
|
1,404
|
Total
production
|
|
38,589
|
|
74,402
|
|
58,958
|
|
67,515
|
Throughput (average
bpd):
|
|
|
|
|
|
|
|
|
Crude oil
|
|
35,798
|
|
72,030
|
|
59,476
|
|
68,038
|
Other
feedstocks
|
|
3,327
|
|
3,547
|
|
191
|
|
843
|
Total
throughput
|
|
39,125
|
|
75,577
|
|
59,667
|
|
68,881
|
|
|
|
|
|
|
|
|
|
Big Spring refining
production margin ($ in millions)
|
|
$
49.7
|
|
$
39.9
|
|
$
420.1
|
|
$
126.3
|
Per barrel of
throughput:
|
|
|
|
|
|
|
|
|
Big Spring refining
production margin
|
|
$
13.80
|
|
$
5.73
|
|
$
19.29
|
|
$
5.02
|
Operating expenses
(4)
|
|
$
10.50
|
|
$
3.98
|
|
$
7.48
|
|
$
4.84
|
Crude Slate: (% based
on amount received in period)
|
|
|
|
|
|
|
|
|
WTI crude
oil
|
|
74.3 %
|
|
77.3 %
|
|
70.1 %
|
|
71.0 %
|
WTS crude
oil
|
|
25.7 %
|
|
22.7 %
|
|
29.9 %
|
|
29.0 %
|
|
|
|
|
|
|
|
|
|
Capture Rate
(5)
|
|
47.2 %
|
|
33.3 %
|
|
61.4 %
|
|
30.2 %
|
Krotz Springs, LA
Refinery
|
|
|
|
|
|
|
|
|
Days in
period
|
|
92
|
|
92
|
|
365
|
|
365
|
Products manufactured
(average bpd):
|
|
|
|
|
|
|
|
|
Gasoline
|
|
41,073
|
|
33,679
|
|
34,370
|
|
26,170
|
Diesel/Jet
|
|
31,691
|
|
28,250
|
|
31,576
|
|
21,387
|
Heavy oils
|
|
5,323
|
|
599
|
|
2,418
|
|
719
|
Petrochemicals, LPG,
NGLs
|
|
6,156
|
|
6,595
|
|
6,749
|
|
5,170
|
Other
|
|
238
|
|
9,759
|
|
4,458
|
|
7,895
|
Total
production
|
|
84,481
|
|
78,882
|
|
79,571
|
|
61,341
|
Throughput (average
bpd):
|
|
|
|
|
|
|
|
|
Crude oil
|
|
76,850
|
|
70,525
|
|
74,808
|
|
55,321
|
Other
feedstocks
|
|
6,793
|
|
7,392
|
|
4,118
|
|
5,912
|
Total
throughput
|
|
83,643
|
|
77,917
|
|
78,926
|
|
61,233
|
|
|
|
|
|
|
|
|
|
Krotz refining
production margin ($ in millions)
|
|
$
103.0
|
|
$
61.5
|
|
$
475.5
|
|
$
134.2
|
Per barrel of
throughput:
|
|
|
|
|
|
|
|
|
Krotz Springs refining
production margin
|
|
$
13.39
|
|
$
8.58
|
|
$
16.51
|
|
$
6.00
|
Operating expenses
(4)
|
|
$
5.16
|
|
$
3.85
|
|
$
5.25
|
|
$
4.55
|
Crude Slate: (% based
on amount received in period)
|
|
|
|
|
|
|
|
|
WTI Crude
|
|
70.3 %
|
|
64.7 %
|
|
63.4 %
|
|
65.3 %
|
Gulf Coast Sweet
Crude
|
|
19.6 %
|
|
35.3 %
|
|
29.8 %
|
|
34.3 %
|
Other
|
|
10.1 %
|
|
— %
|
|
6.8 %
|
|
0.4 %
|
|
|
|
|
|
|
|
|
|
Capture Rate
(5)
|
|
70.1 %
|
|
77.3 %
|
|
74.3 %
|
|
63.0 %
|
|
|
(1)
|
Includes sales to other
segments which are eliminated in consolidation.
|
(2)
|
Adjusted to reflect the
retrospective change in accounting policy from LIFO to FIFO for
certain inventories.
|
(3)
|
Trading and supply
activities include the employment of marketing uplift strategies
and the execution of risk management programs to capture the
physical and financial opportunities that extend from our refining
operations.
|
(4)
|
Reflects the prior
period conforming reclassification adjustment between operating
expenses and general and administrative expenses.
|
(5)
|
Defined as refining
production margin divided by the respective crack spread. See
page 17 for crack spread information.
|
(6)
|
Crude throughput as %
of total nameplate capacity of 302,000 bpd
|
_________________________________________________________________________________________________________________________
|
14 |
Logistics Segment
Selected Information
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Gathering &
Processing: (average bpd)
|
|
|
|
|
|
|
|
|
Lion Pipeline
System:
|
|
|
|
|
|
|
|
|
Crude pipelines
(non-gathered)
|
|
68,798
|
|
80,145
|
|
78,519
|
|
65,335
|
Refined products
pipelines
|
|
35,585
|
|
66,632
|
|
56,382
|
|
48,757
|
SALA Gathering
System
|
|
13,136
|
|
15,660
|
|
15,391
|
|
14,460
|
East Texas Crude
Logistics System
|
|
25,154
|
|
18,499
|
|
21,310
|
|
22,647
|
Permian Gathering
Assets (1)
|
|
191,119
|
|
83,353
|
|
128,725
|
|
80,285
|
Plains Connection
System
|
|
234,164
|
|
133,281
|
|
183,827
|
|
124,025
|
Delaware Gathering
Assets: (2)
|
|
|
|
|
|
|
|
|
Natural Gas Gathering
and Processing (Mcfd) (3)
|
|
60,669
|
|
—
|
|
60,971
|
|
—
|
Crude Oil Gathering
(average bpd)
|
|
91,526
|
|
—
|
|
87,519
|
|
—
|
Water Disposal and
Recycling (average bpd)
|
|
80,028
|
|
—
|
|
72,056
|
|
—
|
|
|
|
|
|
|
|
|
|
Wholesale Marketing
& Terminalling:
|
|
|
|
|
|
|
|
|
East Texas - Tyler
Refinery sales volumes (average bpd) (4)
|
|
64,825
|
|
55,755
|
|
66,058
|
|
68,497
|
Big Spring wholesale
marketing throughputs (average
bpd)
|
|
58,061
|
|
83,385
|
|
71,580
|
|
78,370
|
West Texas wholesale
marketing throughputs (average
bpd)
|
|
10,835
|
|
10,007
|
|
10,206
|
|
10,026
|
West Texas wholesale
marketing margin per barrel
|
|
$
3.62
|
|
$
3.97
|
|
$
4.15
|
|
$
3.72
|
Terminalling
throughputs (average bpd) (5)
|
|
127,277
|
|
124,476
|
|
132,262
|
|
138,301
|
|
|
(1)
|
Formerly known as the
Big Spring Gathering System. Excludes volumes that are being
temporarily transported via trucks while connectors are under
construction.
|
(2)
|
2022 volumes include
volumes from June 1, 2022 through December 31, 2022.
|
(3)
|
Mcfd - average thousand
cubic feet per day.
|
(4)
|
Excludes jet fuel and
petroleum coke.
|
(5)
|
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
December 31,
|
|
Year Ended December
31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Number of stores (end
of period)
|
|
249
|
|
248
|
|
249
|
|
248
|
Average number of
stores
|
|
249
|
|
248
|
|
249
|
|
248
|
Average number of fuel
stores
|
|
244
|
|
243
|
|
244
|
|
243
|
Retail fuel sales
(thousands of gallons)
|
|
41,523
|
|
42,303
|
|
170,668
|
|
166,959
|
Average retail gallons
sold per average number of fuel stores (in
thousands)
|
|
171
|
|
174
|
|
701
|
|
688
|
Average retail sales
price per gallon sold
|
|
$
3.37
|
|
$
3.11
|
|
$
3.76
|
|
$
2.88
|
Retail fuel margin ($
per gallon) (1)
|
|
$
0.32
|
|
$
0.30
|
|
$
0.33
|
|
$
0.34
|
Merchandise sales (in
millions)
|
|
$
77.4
|
|
$
75.5
|
|
$
314.7
|
|
$
316.4
|
Merchandise sales per
average number of stores (in millions)
|
|
$
0.3
|
|
$
0.3
|
|
$
1.3
|
|
$
1.3
|
Merchandise margin
%
|
|
32.1 %
|
|
33.6 %
|
|
33.3 %
|
|
33.2 %
|
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Same-Store
Comparison (2)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Change in same-store
fuel gallons sold
|
|
(1.8) %
|
|
3.0 %
|
|
2.5 %
|
|
(5.3) %
|
Change in same-store
merchandise sales
|
|
2.5 %
|
|
0.7 %
|
|
0.3 %
|
|
(1.8) %
|
|
|
(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.
|
_______________________________________________________________________________________________
|
15 |
Supplemental
Information
|
Schedule of Selected
Segment Financial Data, Pricing Statistics Impacting our
Refining Segment Selected Financial Information and Other
Reconciliation of
Amounts Reported Under U.S. GAAP
|
|
Selected Segment
Financial Data
|
|
Three Months Ended
December 31, 2022
|
$ in millions
(unaudited)
|
|
Refining
|
|
Logistics
|
|
Retail
|
|
Corporate,
Other and
Eliminations
|
|
Consolidated
|
Net revenues
(excluding
intercompany fees and revenues)
|
|
$
4,096.6
|
|
$
164.9
|
|
$
217.2
|
|
$
0.5
|
|
$
4,479.2
|
Inter-segment fees and
revenues
|
|
231.8
|
|
104.1
|
|
—
|
|
(335.9)
|
|
—
|
Total
revenues
|
|
$
4,328.4
|
|
$
269.0
|
|
$
217.2
|
|
$
(335.4)
|
|
$
4,479.2
|
Cost of
sales
|
|
4,413.7
|
|
203.4
|
|
179.2
|
|
(344.4)
|
|
4,451.9
|
Gross
margin
|
|
$
(85.3)
|
|
$
65.6
|
|
$
38.0
|
|
$
9.0
|
|
$
27.3
|
|
|
Three Months Ended
December 31, 2021
|
$ in millions
(unaudited)
|
|
Refining
|
|
Logistics
|
|
Retail
|
|
Corporate,
Other and
Eliminations
|
|
Consolidated
|
Net revenues
(excluding
intercompany fees and revenues)
|
|
$
2,820.8
|
|
$
79.5
|
|
$
207.1
|
|
$
0.6
|
|
$
3,108.0
|
Inter-segment fees and
revenues
|
|
200.1
|
|
110.4
|
|
—
|
|
(310.5)
|
|
—
|
Total
revenues
|
|
$
3,020.9
|
|
$
189.9
|
|
$
207.1
|
|
$
(309.9)
|
|
$
3,108.0
|
Cost of
sales
|
|
3,053.3
|
|
134.1
|
|
169.2
|
|
(324.0)
|
|
3,032.6
|
Gross
margin
|
|
$
(32.4)
|
|
$
55.8
|
|
$
37.9
|
|
$
14.1
|
|
$
75.4
|
|
|
Year Ended December
31, 2022
|
$ in millions
(unaudited)
|
|
Refining
|
|
Logistics
|
|
Retail
|
|
Corporate,
Other and
Eliminations
|
|
Consolidated
|
Net revenues
(excluding
intercompany fees and revenues)
|
|
$
18,730.9
|
|
$
557.0
|
|
$
956.9
|
|
$
1.0
|
|
$
20,245.8
|
Inter-segment fees and
revenues
|
|
1,032.1
|
|
479.4
|
|
—
|
|
(1,511.5)
|
|
—
|
Total
revenues
|
|
$
19,763.0
|
|
$
1,036.4
|
|
$
956.9
|
|
$
(1,510.5)
|
|
$
20,245.8
|
Cost of
sales
|
|
19,222.6
|
|
787.0
|
|
796.3
|
|
(1,484.7)
|
|
19,321.2
|
Gross
margin
|
|
$
540.4
|
|
$
249.4
|
|
$
160.6
|
|
$
(25.8)
|
|
$
924.6
|
|
|
Year Ended December
31, 2021
|
$ in millions
(unaudited)
|
|
Refining
|
|
Logistics
|
|
Retail
|
|
Corporate,
Other and
Eliminations
|
|
Consolidated
|
Net revenues
(excluding
intercompany fees and revenues)
|
|
$
9,564.9
|
|
$
282.1
|
|
$
797.4
|
|
$
3.8
|
|
$
10,648.2
|
Inter-segment fees and
revenues
|
|
702.9
|
|
418.8
|
|
—
|
|
(1,121.7)
|
|
—
|
Total
revenues
|
|
$
10,267.8
|
|
$
700.9
|
|
$
797.4
|
|
$
(1,117.9)
|
|
$
10,648.2
|
Cost of
sales
|
|
10,351.0
|
|
484.8
|
|
635.6
|
|
(1,085.9)
|
|
10,385.5
|
Gross
margin
|
|
$
(83.2)
|
|
$
216.1
|
|
$
161.8
|
|
$
(32.0)
|
|
$
262.7
|
16 |
|
Pricing
Statistics
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
(average for the
period presented)
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
WTI — Cushing crude oil
(per barrel)
|
|
$
82.82
|
|
$
77.33
|
|
$
94.62
|
|
$
68.11
|
WTI — Midland crude oil
(per barrel)
|
|
$
82.64
|
|
$
77.82
|
|
$
94.38
|
|
$
68.55
|
WTS -- Midland crude
oil (per barrel)
|
|
$
81.55
|
|
$
76.86
|
|
$
94.29
|
|
$
68.29
|
LLS (per
barrel)
|
|
$
85.47
|
|
$
78.38
|
|
$
96.85
|
|
$
69.60
|
Brent crude oil (per
barrel)
|
|
$
88.63
|
|
$
79.65
|
|
$
99.06
|
|
$
70.96
|
|
|
|
|
|
|
|
|
|
U.S. Gulf Coast 5-3-2
crack spread (per barrel) (1)
|
|
$
32.25
|
|
$
17.51
|
|
$
33.36
|
|
$
16.62
|
U.S. Gulf Coast 3-2-1
crack spread (per barrel) (1)
|
|
$
29.27
|
|
$
17.21
|
|
$
31.41
|
|
$
16.62
|
U.S. Gulf Coast 2-1-1
crack spread (per barrel) (1)
|
|
$
19.11
|
|
$
11.10
|
|
$
22.21
|
|
$
9.53
|
|
|
|
|
|
|
|
|
|
U.S. Gulf Coast
Unleaded Gasoline (per gallon)
|
|
$
2.32
|
|
$
2.22
|
|
$
2.77
|
|
$
2.02
|
Gulf Coast Ultra low
sulfur diesel (per gallon)
|
|
$
3.37
|
|
$
2.32
|
|
$
3.46
|
|
$
2.02
|
U.S. Gulf Coast high
sulfur diesel (per gallon)
|
|
$
2.66
|
|
$
2.05
|
|
$
2.90
|
|
$
1.75
|
Natural gas (per
MMBTU)
|
|
$
6.09
|
|
$
4.84
|
|
$
6.54
|
|
$
3.73
|
(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 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 WTI Cushing crude,
Gulf Coast CBOB gasoline and Gulf Coast ultra-low sulfur diesel,
and for our Krotz Springs refinery, we compare our per barrel
refining margin to the Gulf Coast 2-1-1 crack spread consisting of
LLS crude oil, Gulf Coast CBOB gasoline and 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.
|
____________________________________________________________________________________________________________
|
17 |
Other Reconciliation
of Amounts Reported Under U.S. GAAP
|
$ in millions
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
Reconciliation of
gross margin to Refining margin to
Adjusted refining margin
|
|
2022
|
|
2021
As Adjusted
(1)
|
|
2022
|
|
2021
As Adjusted
(1)
|
Gross margin
|
|
$
(85.3)
|
|
$
(32.4)
|
|
$
540.4
|
|
$
(83.2)
|
Add back (items
included in cost of sales):
|
|
|
|
|
|
|
|
|
Operating expenses
(excluding depreciation and
amortization)
|
|
147.8
|
|
123.9
|
|
604.7
|
|
437.8
|
Depreciation and
amortization
|
|
53.5
|
|
49.7
|
|
205.1
|
|
198.7
|
Refining
Margin
|
|
$
116.0
|
|
$
141.2
|
|
$
1,350.2
|
|
$
553.3
|
Adjusting items, after
tax
|
|
|
|
|
|
|
|
|
Net inventory LCM
valuation loss (benefit)
|
|
(17.1)
|
|
8.0
|
|
2.0
|
|
8.4
|
Other inventory
impact
|
|
193.6
|
|
(61.6)
|
|
331.1
|
|
(218.1)
|
Total unrealized
hedging (gain) loss where the hedged
item is not yet recognized in the financial statements
|
|
49.8
|
|
(5.5)
|
|
24.1
|
|
7.0
|
Non-cash change in fair
value of S&O Obligation
associated with hedging activities
|
|
—
|
|
—
|
|
—
|
|
(6.9)
|
Total adjusting
items
|
|
226.3
|
|
(59.1)
|
|
357.2
|
|
(209.6)
|
Adjusted Refining
Margin
|
|
$
342.3
|
|
$
82.1
|
|
$
1,707.4
|
|
$
343.7
|
|
(1) Adjusted
to reflect the retrospective change in accounting policy from LIFO
to FIFO for certain inventories.
|
___________________________________________________________________________________________________________________________
|
Calculation of Net
Debt
|
|
December 31,
2022
|
|
December 31,
2021
|
Long-term debt -
current portion
|
|
$
74.5
|
|
$
92.2
|
Long-term debt -
non-current portion
|
|
2,979.2
|
|
2,125.8
|
Total long-term
debt
|
|
3,053.7
|
|
2,218.0
|
Less: Cash and cash
equivalents
|
|
841.3
|
|
856.5
|
Net debt -
consolidated
|
|
2,212.4
|
|
1,361.5
|
Less: DKL net
debt
|
|
1,653.6
|
|
894.7
|
Net debt, excluding
DKL
|
|
$
558.8
|
|
$
466.8
|
|
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
Twitter account (@DelekUSHoldings).
18 |
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SOURCE Delek US Holdings, Inc.