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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 Logistics Partners has announced a quarterly cash distribution of $1.02 per common limited partner unit for Q4 2022, reflecting a 3% increase from Q3 2021 and a 5% increase from Q4 2021. This marks the 40th consecutive quarter of increased payouts. The distribution is set for payment on February 9, 2023, to unitholders of record as of February 2, 2023. Delek Logistics aims for another 5% distribution growth in 2023, driven by strong demand in its Permian and Delaware Gathering Systems.
Delek Logistics Partners declared a quarterly cash distribution of $1.02 per common limited partner unit for Q4 2022, marking a 3% increase from Q3 2021 and a 5% increase compared to Q4 2021. This is the 40th consecutive quarter of distribution increases, fulfilling the company's 5% growth commitment for 2022. The distribution is payable on February 9, 2023, to unitholders of record by February 2, 2023. Delek Logistics anticipates another 5% distribution growth for 2023, driven by strong demand in the Permian and Delaware Gathering Systems.
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.
Delek US Holdings (NYSE: DK) and Delek Logistics Partners (NYSE: DKL) announced the appointment of Rosy Zuklic as Vice President of Investor Relations and Market Intelligence, effective early 2023. Zuklic, with over 25 years of experience in the oil and gas sector, will enhance Delek's communication with institutional investors and analysts. She previously held a senior role at Phillips 66. Blake Fernandez, the outgoing SVP of Investor Relations, will assist during the transition. Delek operates refineries with a combined capacity of 302,000 barrels per day and has over 250 convenience stores in Texas and New Mexico.
Delek US reported third-quarter 2022 net income of $7.4 million, or $0.10 per share, down from $11.8 million or $0.16 per share a year prior. Despite unfavorable inventory impacts of $225.1 million, adjusted EBITDA rose to $135.8 million. The company announced a $0.01 dividend increase to $0.21 per share and plans to repurchase $75 to $100 million in stock. Refining margins increased to $106 million, though impacted by inventory valuation issues. Delek US maintains 99% crude utilization and engaged bankers to explore corporate development opportunities.
Delek Logistics Partners reported a third quarter net income of $44.7 million, up from $43.6 million year-over-year. EBITDA reached a record $89.0 million, despite $4.2 million in acquisition costs. The adjusted distributable cash flow coverage ratio stands at 1.62x, with a total leverage ratio of 4.35x. The company achieved a 4.2% year-over-year increase in its quarterly distribution to $0.99/unit, marking the 39th consecutive distribution growth. Recent credit amendments have improved liquidity and debt maturity.
On November 1, 2022, Delek US Holdings (NYSE: DK) announced a $0.01 increase in its quarterly dividend, raising it to $0.21 per share. This increase reflects the company’s commitment to returning cash to shareholders. The dividend will be paid on December 2, 2022, to shareholders recorded by November 18, 2022. The company operates refineries in Texas, Arkansas, and Louisiana, with a total throughput capacity of 302,000 barrels per day, alongside a convenience store network in Texas and New Mexico.
On October 25, 2022, Delek Logistics Partners, LP (NYSE: DKL) announced a quarterly cash distribution of $0.99 per common limited partner unit for Q3 2022, reflecting a 0.5% increase from Q2 2022 and a 4.2% rise from Q3 2021. This marks the 39th consecutive quarter of distribution increases since Q4 2012. The distribution will be payable on November 10, 2022 to unitholders of record by November 4, 2022. The company cites strong refining margins and operational momentum as key drivers.
Delek US Holdings (NYSE: DK) will release its third quarter 2022 results before the U.S. market opens on November 7, 2022. A conference call to discuss these results is set for 9:30 a.m. CT. Investors can access the live broadcast at www.DelekUS.com. Additionally, Delek Logistics Partners (NYSE: DKL) will hold its earnings call the same day at 8:30 a.m. CT, with insights relevant to Delek US's operations.
Delek US operates refineries in Texas, Arkansas, and Louisiana, with a capacity of 302,000 barrels per day.
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