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Delek US Holdings, Inc. (NYSE: DK) is a diversified downstream energy company that operates through three main business segments: petroleum refining, marketing & supply, and retail. Headquartered in Brentwood, Tennessee, Delek US Holdings' refining segment operates a 60,000 barrel-per-day refinery in Tyler, Texas, known for its high conversion and moderate complexity refining capabilities. This refinery plays a crucial role in producing various petroleum products for transportation and industrial markets in the United States.
The marketing & supply segment of Delek US Holdings is involved in the transportation and wholesale distribution of refined products throughout West Texas, utilizing both company-owned and third-party operated terminals. This segment ensures the efficient delivery of products such as gasoline, diesel, and other refined goods to various markets.
Delek US Holdings also boasts an extensive retail network, operating more than 450 company-owned fuel and convenience stores across eight states. The retail segment markets gasoline and diesel through various regional brands including Mapco Express®, Mapco Mart® East Coast®, Discount Food Mart™, Fast Food and Fuel™, and Favorite Markets®.
Additionally, Delek US Holdings has a logistics segment that focuses on gathering, transporting, and storing crude oil and intermediate products. This segment is crucial for the company's operations as it supports the refining and marketing activities by ensuring a seamless supply chain for crude oil and refined products.
Recent developments highlight Delek US Holdings' dynamic growth strategy. The company, through its subsidiary Delek Logistics Partners, LP (NYSE: DKL), has been active in the financial markets, recently pricing an upsized offering of $650 million in senior notes and commencing a $120 million public offering of common units. The proceeds from these offerings are earmarked for repurchases, repayments, and general corporate purposes.
Delek US Holdings demonstrates a robust financial and operational framework, bolstered by strategic partnerships and a diversified product portfolio. The company's focus on refining, logistics, and retail ensures a comprehensive energy supply chain, catering to both wholesale and retail markets. As an integrated energy business, Delek US Holdings continues to strengthen its market position through strategic investments and a commitment to operational excellence.
Delek US Holdings (NYSE: DK) responded to a letter from CVR Energy, emphasizing its commitment to enhancing shareholder value. The company reported refinery utilization rates above industry averages and strategic investments aimed at boosting performance in 2021 and 2022. With over $265 million returned to shareholders through dividends and buybacks in 2019, Delek US plans to cut capital expenditures by approximately 40% in 2021. The company assures shareholders of ongoing dialogue and engagement while remaining focused on long-term strategic goals.
Delek US Holdings (NYSE: DK) will announce fourth quarter 2020 results on February 23, 2021, after market close. A conference call to discuss these results is set for February 24, 2021, at 8:30 a.m. CT (9:30 a.m. ET). Investors can access the live broadcast on www.DelekUS.com. Additionally, Delek Logistics Partners (NYSE: DKL) will hold its earnings call on the same day, starting at 7:30 a.m. CT (8:30 a.m. ET).
Delek Logistics Partners, LP (NYSE: DKL) will release its fourth quarter 2020 results after market close on February 23, 2021. A conference call to discuss the results is set for 7:30 a.m. CT on February 24, 2021. Investors can access the live broadcast via DelekLogistics.com, with a replay available for 90 days. Delek US Holdings, Inc. (NYSE: DK) will also hold its earnings call on the same day at 8:30 a.m. CT, providing insights that may be relevant to Delek Logistics as a subsidiary.
Delek US Holdings reported a net loss of $(88.1) million or $(1.20) per share for Q3 2020, compared to a net income of $51.3 million or $0.68 per share a year earlier. Adjusted EBITDA fell to $21.9 million from $184.2 million. Key actions to improve cash flow include an 8% workforce reduction and 40% CAPEX cut, projected to enhance cash flow by $200 million in 2021. The company suspended dividends to maintain financial flexibility. As of September 30, 2020, cash was $808 million, with $2.47 billion debt. Refining margins plummeted, while logistics saw improved contributions.
Delek Logistics Partners reported a strong performance for Q3 2020, with net income of $46.3 million ($1.26 per unit), up 52% year-over-year. Net cash from operations was $62.3 million, while distributable cash flow reached $59.1 million. EBITDA increased by 32% to $67.8 million, driven by the drop down of new assets and reduced operating expenses. The company declared a cash distribution of $0.905 per unit, reflecting a 2.8% increase from Q3 2019. Total debt stood at approximately $1 billion with a leverage ratio of 3.9x, demonstrating financial stability and growth potential.
Delek Logistics Partners, LP (NYSE: DKL) announced a quarterly cash distribution of $0.905 per common limited partner unit for Q3 2020, reflecting a 0.6% increase from Q2 2020 and a 2.8% increase year-over-year. This marks the 30th consecutive quarterly increase in distributions, demonstrating business stability amid challenging energy conditions. The distribution is payable on November 12, 2020 to unitholders of record on November 6, 2020. Delek Logistics aims for 5% distribution growth for the year compared to 2019.
Delek US Holdings (NYSE: DK) will issue its third quarter 2020 results on November 4, 2020, after market close. A conference call to discuss these results is scheduled for 8:30 a.m. CT on November 5, 2020. Investors can access the live broadcast through the Delek US website. Additionally, Delek Logistics Partners (NYSE: DKL) will hold its own earnings call at 7:30 a.m. CT on the same day, which may offer relevant information for Delek US stakeholders.
Delek Logistics Partners, LP (NYSE: DKL) announced it will release its third-quarter 2020 results after market close on November 4, 2020. A conference call is scheduled for November 5, 2020, at 7:30 a.m. CT to discuss the results. Investors can access the live call on its website, with a replay available for 90 days. Additionally, Delek US Holdings, Inc. (NYSE: DK) will also hold its own earnings call on the same day at 8:30 a.m. CT. The logistics partnership focuses on owning and operating midstream energy infrastructure.
On August 13, 2020, Delek US Holdings and Delek Logistics Partners announced the elimination of all incentive distribution rights (IDRs) in Delek Logistics. In return, Delek US will receive 14 million newly issued DKL common limited partner units and $45 million in cash. This transaction is projected to enhance distributable cash flow per DKL unit and increases Delek US's ownership stake in DKL to approximately 80%. The Conflicts Committee of Delek Logistics approved the transaction, which aims to reduce the cost of capital and support the midstream growth strategy of Delek Logistics.
Delek US reported second quarter 2020 financial results, showing a net income of $87.7 million or $1.18 per diluted share, up from $77.3 million or $1.00 per diluted share year-over-year. However, adjusted net loss reached $110.5 million, reflecting significant losses from inventory impacts and hedging. The refining segment faced a decline in contribution margin to $59.7 million from $198.1 million, largely due to lower demand amid COVID-19. The company declared a quarterly dividend of $0.31 per share and reported a cash balance of $849 million as of June 30, 2020.
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