Delek US Holdings, Inc. - DK STOCK NEWS

Delek US Holdings (NYSE: DK) announced the appointment of Todd O'Malley as EVP and Chief Commercial Officer, effective March 1, 2021. Uzi Yemin, Chairman and CEO, expressed optimism about O'Malley’s extensive experience in private equity, trading, and management within the energy sector. O'Malley has previously held significant roles in companies like Citizens Companies and PBF Energy. Delek US operates in petroleum refining, logistics, and retail, with a combined refining capacity of 302,000 barrels per day and approximately 253 convenience stores across Texas and New Mexico.

Delek US Holdings, Inc. (NYSE: DK) addressed a Section 220 request from CVR Energy, Inc., asserting its belief that CVR's activism campaign may not serve Delek's shareholders' best interests. Delek highlights a five-year total shareholder return of +92%, exceeding the 28% average of its peers. The company plans to review and respond to CVR's letter. Delek operates in refining, logistics, and retail, with a crude throughput capacity of 302,000 barrels per day and 253 convenience stores across Texas and New Mexico.

A fire occurred today at the Penex unit of Delek US Holdings' refinery in El Dorado, Arkansas. The fire was extinguished without adverse impacts reported to air quality in the area. Six employees received medical treatment, and the company is committed to supporting them. There were no operational impacts due to ongoing turnaround activities. Delek emphasizes the safety of personnel and customers, having rigorous safety protocols in place. A full investigation will follow to assess the incident.

Delek Logistics Partners reported strong fourth-quarter 2020 results with a net income of $40.7 million, increasing 88% year-over-year. The company achieved a distributable cash flow of $55.9 million, up from $33.0 million, and reduced operating expenses by $7.5 million. Revenue slightly increased to $140.1 million, attributed to new asset drop downs, despite challenges in the West Texas wholesale business. A quarterly distribution of $0.910 per unit reflects a 2.8% year-over-year increase. The company anticipates continued distribution growth of 5% in 2021, demonstrating a solid operational outlook.

Delek US Holdings reported a Q4 2020 net loss of $(293.2) million, or $(3.98) per share, a sharp decline from net income of $32.7 million, or $0.44 per share, in Q4 2019. Adjusted net loss was $(204.0) million, impacted by a $126 million goodwill impairment. Adjusted EBITDA decreased to $(137.6) million from $65.4 million year-over-year. The refining segment's contribution margin fell to $(82.0) million, affected by lower crude oil differentials and crack spreads due to COVID-19. However, the logistics segment improved with a contribution margin of $62.2 million, up from $42.5 million in Q4 2019.

Delek US Holdings (NYSE: DK) responded to CVR Energy's nomination of three candidates for its Board of Directors. The company remains focused on maintaining a strong, independent, and diverse Board that prioritizes shareholder value. Delek US will evaluate CVR's nominees through its Nominating and Corporate Governance Committee and will provide recommendations in due course. Shareholders are advised not to take any action at this point. Delek US operates in petroleum refining, logistics, asphalt, renewable fuels, and convenience store retailing.

Delek Logistics Partners, LP (NYSE: DKL) has appointed Sherri A. Brillon to its Board of Directors, effective January 26, 2021. With over 35 years of experience in the oil and gas sector, including roles at Encana Corporation, Brillon's expertise aims to enhance the board's perspective and competitiveness. She will also serve on the Audit Committee, leveraging her extensive financial operations background. This strategic addition is anticipated to bring fresh ideas and diversity, positioning the company for future growth.

Delek Logistics Partners, LP (NYSE: DKL) announced a quarterly cash distribution of $0.91 per common limited partner unit for the fourth quarter of 2020, a 0.6% increase from Q3 2020 and a 2.8% rise from Q4 2019. This marks the 31st consecutive quarterly increase in distributions, aligning with their 5% growth target for 2020. The distribution will be payable on February 9, 2021 to unitholders on record as of February 2, 2021.

Chairman Uzi Yemin emphasized the business's stability amidst challenging market conditions.

Delek US Holdings appointed Laurie Z. Tolson to its Board of Directors on January 20, 2021. Her diverse background in technology is expected to enhance the company's operations and align with its goal of increasing board diversity by 2022. Tolson, who has extensive experience in digital transformation and has held executive roles at GE Transportation and ABB, aims to improve efficiency and safety through technological advancements. Delek US operates in petroleum refining, logistics, asphalt, renewable fuels, and convenience store retailing across several states.