Delek US Announces 2023 Capital Program

Rhea-AI Summary

On January 4, 2023, Delek US Holdings (NYSE: DK) unveiled its 2023 capital spending budget, totaling approximately $350 million. The primary focus of this budget is on growth capital for expanding its gathering business in the Permian basin. Additionally, the budget includes a planned turnaround at the Tyler Refinery during the first half of the year. Key allocations encompass $21 million for regulatory, $176 million for maintenance, and $5 million for growth in the refining segment.

Positive

• 2023 capital spending budget of approximately $350 million.
• Focus on growth capital to expand gathering business in the Permian basin.

Negative

• Underwhelming $5 million allocated for growth in the refining segment.

BRENTWOOD, Tenn., Jan. 4, 2023 /PRNewswire/ -- Today Delek US Holdings, Inc. (NYSE: DK) announced the 2023 capital spending budget of approximately $350 million on a consolidated basis. Growth capital is largely allocated toward expanding the gathering business in the Permian basin. Sustaining capital includes a planned turnaround at the Tyler Refinery in the first half of 2023.  

The table below provides a breakdown of spending by segment as well as growth versus maintenance and regulatory spending.

Delek US - Capital Spending
($ in millions)			2023 Budget
Refining Segment
	Regulatory		$                       21
	Maintenance/Reliability/Sustaining		$                     176
	Growth		$                         5
	Total		$                     202
Logistic Segment
	Regulatory		$                       13
	Maintenance/Reliability/Sustaining		$                         2
	Growth		$                       66
	Total		$                       81
Retail Segment
	Regulatory		$                          -
	Maintenance/Reliability/Sustaining		$                       27
	Growth		$                         4
	Total		$                       31
Corporate/Other
	Regulatory		$                         1
	Maintenance/Reliability/Sustaining		$                       33
	Growth		$                         2
	Total		$                       36
Consolidated
	Regulatory		$                       35
	Maintenance/Reliability/Sustaining		$                     238
	Growth		$                       77
	Total		$                     350

About Delek US Holdings, Inc.
Delek US Holdings, Inc. is a diversified downstream energy company with assets in petroleum refining, logistics, asphalt, renewable fuels and convenience store retailing.  The refining assets consist 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.

The convenience store retail business operates approximately 250 convenience stores in central and west Texas and New Mexico.

The logistics operations consist of Delek Logistics Partners, LP ("Delek Logistics"). Delek US and its affiliates also own the general partner and an approximate 80 percent limited partner interest in Delek Logistics. Delek Logistics is a growth-oriented master limited partnership focused on owning and operating midstream energy infrastructure assets.

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. Investors are cautioned that risks described in the Company's filings with the United States Securities and Exchange Commission, among others, may affect these forward-looking statements. 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. The Company undertakes no obligation to update or revise any such forward-looking statements to reflect events or circumstances that occur or that the Company becomes aware of after the date hereof, except as required by applicable law or regulation.

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SOURCE Delek US Holdings, Inc.

FAQ

What is Delek's 2023 capital spending budget?

Delek US Holdings announced a 2023 capital spending budget of approximately $350 million.

Where is Delek focusing its growth capital for 2023?

The growth capital for 2023 is primarily allocated towards expanding the gathering business in the Permian basin.

What are the key allocations in Delek's 2023 budget?

Key allocations include $21 million for regulatory, $176 million for maintenance, and $5 million for growth in the refining segment.