Delek US Holdings Reports Fourth Quarter 2024 Results

Rhea-AI Summary

Delek US Holdings (NYSE: DK) reported a net loss of $413.8 million or $(6.55) per share for Q4 2024, with an adjusted net loss of $160.5 million or $(2.54) per share. Adjusted EBITDA was $(23.2) million. Key 2024 achievements include selling retail assets for $390 million, reducing interest in DKL from 78.7% to 63.6%, and completing the W2W pipeline drop-down into DKL. DKL's Q4 adjusted EBITDA reached $107.2 million, driven by acquisitions and rate increases. The company repurchased ~$42 million in shares and announced a regular quarterly dividend of $0.255 per share.

For 2025, DKL closed the Gravity Water Midstream acquisition and expects EOP to increase profitability by $120 million. DKL's full-year EBITDA guidance is $480-$520 million, with authorization to buy back up to $150 million in common units from DK through 2026. Delek US had a cash balance of $735.6 million and net debt of $2,029.6 million as of December 31, 2024. The refining segment's Q4 adjusted EBITDA was $(69.6) million, impacted by lower crack spreads and turnaround activities. The logistics segment's adjusted EBITDA improved to $107.2 million, while corporate and other activities reported an adjusted EBITDA loss of $(60.3) million.

Positive

• Sold retail assets for $390 million
• Reduced interest in DKL from 78.7% to 63.6%
• Completed W2W pipeline drop-down
• DKL's Q4 adjusted EBITDA $107.2 million
• $42 million in share repurchases
• Regular quarterly dividend of $0.255 per share
• DKL's full-year EBITDA guidance $480-$520 million
• DKL authorized to buy back up to $150 million in common units

Negative

• Net loss of $413.8 million
• Adjusted net loss of $160.5 million
• Adjusted EBITDA $(23.2) million
• Refining segment Q4 adjusted EBITDA $(69.6) million
• Corporate and other activities adjusted EBITDA loss $(60.3) million

Insights

Financial Analyst

Delek US Holdings' Q4 2024 results paint a complex picture of a company in transition amid challenging market conditions. The $413.8 million net loss ($6.55 per share) and negative adjusted EBITDA of $23.2 million reflect significant pressure on the core refining business, where segment EBITDA plunged to -$69.6 million from -$4.4 million in Q4 2023.

The refining segment's deterioration stems from a 13.1% year-over-year decline in benchmark crack spreads and turnaround activities at Krotz Springs. This performance underscores the cyclical volatility inherent in refining operations and highlights why management has been aggressively pursuing its Sum of the Parts (SOTP) strategy—essentially attempting to unlock value by separating more stable midstream assets from volatile refining operations.

The bright spot remains DK's stake in Delek Logistics (DKL), which delivered record quarterly adjusted EBITDA of $107.2 million, up 7.8% year-over-year. DKL's transformation is particularly noteworthy, with management indicating that approximately 70% of its cash flows now come from third-party sources on a pro-forma basis. This evolution toward a more independent midstream entity with diversified revenue streams supports DK's gradual reduction of its ownership stake from 78.7% to 63.6%.

The company's financial structure reveals interesting dynamics: while consolidated net debt stands at $2.03 billion, excluding DKL's obligations shows DK in a much stronger position with just $159.6 million in net debt. This financial flexibility explains management's ability to maintain the $0.255 quarterly dividend despite operational challenges.

Management's Enterprise Optimization Plan (EOP) targeting $120 million in profitability improvements (at the high end of their original range) represents a critical initiative to offset margin pressures. While the timeline extends to 2H 2025, successful execution would significantly improve the company's earnings profile independent of market conditions.

The strategic acquisitions completed by DKL (H2O Midstream and Gravity Water Midstream) further diversify its asset base in the high-growth Permian Basin water handling space, providing more stable cash flows to support distributions. The authorization for DKL to repurchase up to $150 million in units from DK creates another tax-efficient mechanism to advance the SOTP strategy while maintaining financial flexibility.

For investors, the key question remains whether these strategic maneuvers will ultimately create more value than a simplified corporate structure. While the midstream transformation shows promise, the persistent weakness in refining operations highlights the challenges in DK's core business that strategic reshuffling alone cannot solve.

Energy Sector Strategist

Delek US Holdings' Q4 2024 results reveal a company executing a strategic pivot amid severe refining headwinds. The $413.8 million net loss masks a more nuanced story of corporate transformation aimed at reducing exposure to refining volatility while maximizing the value of stable midstream assets.

The refining segment's $69.6 million negative EBITDA (versus -$4.4 million last year) illustrates the cyclical challenges facing independent refiners. The 13.1% year-over-year decline in crack spreads reflects normalization after the exceptional margins of 2022-2023, compounded by the Krotz Springs turnaround. Unlike integrated majors who benefit from upstream production during refining downturns, independent refiners like Delek face full exposure to margin compression.

Management's Sum of the Parts (SOTP) strategy represents a calculated response to this structural vulnerability. By gradually reducing its stake in Delek Logistics (DKL) from 78.7% to 63.6%, DK is effectively monetizing these assets at midstream valuations (typically 8-10x EBITDA) rather than having them valued at refining multiples (typically 4-6x EBITDA). The transformation of DKL's cash flow profile to ~70% third-party sources significantly enhances its standalone investment case.

The financial structure reveals remarkable balance sheet engineering: while consolidated figures show $2.03 billion in net debt, DK's standalone net debt position is just $159.6 million. This separation effectively ring-fences DKL's $1.87 billion in debt against its stable midstream assets while maintaining DK's financial flexibility.

The Enterprise Optimization Plan targeting $120 million in profitability improvements builds upon the $100 million in cost reductions already achieved through zero-based budgeting. This dual approach to operational efficiency represents approximately $2.00 per share in annualized earnings potential – significant for a stock trading in the mid-teens.

DKL's acquisitions of H2O Midstream and Gravity Water Midstream position it strategically in the high-growth Permian water handling space, diversifying beyond traditional fuel logistics. These assets typically generate stable, contracted cash flows with growth potential tied to Permian production increases rather than volatile refining margins.

The authorization for DKL to repurchase up to $150 million in units from DK creates a tax-efficient mechanism to continue reducing DK's ownership stake while supporting DKL's unit price. This approach allows DK to monetize assets without triggering immediate tax consequences that would occur through direct sales.

For investors, Delek represents a calculated bet on management's ability to execute this strategic transformation while navigating a challenging refining environment. The maintained $0.255 quarterly dividend signals confidence in the underlying cash generation capabilities despite current headwinds.

• Net loss of $413.8 million or $(6.55) per share, adjusted net loss of $160.5 million or $(2.54) per share, adjusted EBITDA of $(23.2) million
• Closing a transformational 2024 with additional steps to improve DK's profitability. During 2024:
  • DK made significant progress in achieving our Sum of the Parts ("SOTP") goals
    • Sold our retail assets for proceeds of $390 million
    • Progressed DKL deconsolidation reducing DK's interest in DKL from 78.7% in January 2024 to 63.6% currently
  • DK & Delek Logistics (DKL) executed the intercompany amendments and extensions
  • DK completed the drop-down of Wink to Webster ("W2W") pipeline into DKL
  • DKL closed the acquisition of H2O Midstream, further adding to its third party cash flows
  • DKL achieved another record quarterly Adjusted EBITDA of $107.2 million
  • Completed a successful five-year turnaround at its Krotz Springs refinery
  • Achieved the $100 million cost reduction run rate through our zero based budget ("ZBB") efforts
  • Announced the Enterprise Optimization Plan ("EOP") to increase overall profitability by at least $100 million
  • Repurchased ~$42 million in shares
• We have also started 2025 on a strong note. Since the start of the year:
  • DKL closed the acquisition of Gravity Water Midstream
  • EOP expected to be at the high end of the range - $120 million
  • DKL announced a strong full year EBITDA guidance of $480 to $520 million
  • DKL announced authorization to buyback common units up to $150 million from DK through 2026
    • Adds another tax efficient way for DK to progress SOTP
    • Accretive to DKL's free cash flow
• Paid $16.1 million of dividends and announced regular quarterly dividend of $0.255 per share in February

BRENTWOOD, Tenn.--(BUSINESS WIRE)-- Delek US Holdings, Inc. (NYSE: DK) (“Delek US”, "Company") today announced financial results for its fourth quarter ended December 31, 2024.

“Despite challenging market conditions, 2024 was a transformation year during which we have made significant progress in achieving our Sum of the Parts goals and improving the overall profitability of the company,” said Avigal Soreq, President and Chief Executive Officer of Delek US. “After announcing the EOP plan in September we have already made significant progress towards our goals of increasing the profitability of the company by $100 million and now expect to be at the high end of original target run-rate in 2H'2025. Delek Logistics is also a completely different company versus where it started the year. On a pro-forma basis ~70% of its cash flows will be coming from third-party sources."

"Looking ahead, we will continue to execute on our priorities of running safe and reliable operations, and making further progress on midstream deconsolidation, our EOP efforts, and delivering shareholder value while maintaining our financial strength and flexibility," Soreq concluded.

Delek US Results

		Three Months Ended December 31,								Year Ended December 31,
($ in millions, except per share data)			2024				2023				2024				2023
Net (loss) income attributable to Delek US (1)		$	(413.8	)		$	(164.9	)		$	(560.4	)		$	19.8
Total diluted (loss) income per share		$	(6.55	)		$	(2.57	)		$	(8.77	)		$	0.30
Adjusted net (loss) income		$	(160.5	)		$	(93.2	)		$	(338.9	)		$	196.6
Adjusted net (loss) income per share		$	(2.54	)		$	(1.46	)		$	(5.31	)		$	2.98
Adjusted EBITDA		$	(23.2	)		$	60.6			$	313.7			$	949.7

(1)

For the three months ended December 31, 2024, includes a $212.2 million goodwill impairment charge. For the three months ended December 31, 2023, includes a $23.1 million right-of-use asset impairment charge and a $14.8 million goodwill impairment charge. For the year ended December 31, 2024, includes a $212.2 million goodwill impairment charge, a $22.1 million impairment charge related to the idling of the biodiesel facilities, and a $9.2 million impairment charge related to certain pipeline assets. For the year ended December 31, 2023, includes a $23.1 million right-of-use asset impairment charge and a $14.8 million goodwill impairment charge.

Refining Segment

The refining segment Adjusted EBITDA was $(69.6) million in the fourth quarter 2024 compared with $(4.4) million in the same quarter last year, which reflects other inventory impacts of $43.9 million and $48.6 million for fourth quarter 2024 and 2023, respectively. The decrease over 2023 is primarily due to lower refining crack spreads and turnaround activities at the Krotz Springs refinery. During the fourth quarter 2024, Delek US's benchmark crack spreads were down an average of 13.1% from prior-year levels.

Logistics Segment

The logistics segment Adjusted EBITDA in the fourth quarter 2024 was $107.2 million compared with $99.4 million in the prior-year quarter. The increase over last year's fourth quarter was driven by strong contributions from Delaware Gathering systems, annual rate increases, the impact of the W2W dropdown and incremental contribution due to the H2O Acquisition on September 11, 2024, partially offset by lower wholesale margins.

Corporate and Other Activity

Adjusted EBITDA from Corporate, Other and Eliminations was a loss of $(60.3) million in the fourth quarter 2024 compared with a loss of $(43.8) million in the prior-year period. The increased losses were driven primarily by the impact of the W2W dropdown and higher Corporate expenses.

Shareholder Distributions

On February 18, 2025, the Board of Directors approved the regular quarterly dividend of $0.2550 per share that will be paid on March 10, 2025 to shareholders of record on March 3, 2025.

Liquidity

As of December 31, 2024, Delek US had a cash balance of $735.6 million and total consolidated long-term debt of $2,765.2 million, resulting in net debt of $2,029.6 million. As of December 31, 2024, Delek Logistics Partners, LP (NYSE: DKL) ("Delek Logistics") had $5.4 million of cash and $1,875.4 million of total long-term debt, which are included in the consolidated amounts on Delek US' balance sheet. Excluding Delek Logistics, Delek US had $730.2 million in cash and $889.8 million of long-term debt, or a $159.6 million net debt position.

Fourth Quarter 2024 Results | Conference Call Information

Delek US will hold a conference call to discuss its fourth quarter 2024 results on Tuesday, February 25, 2025 at 10:00 a.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 2024 earnings conference call that will be held on Tuesday, February 25, 2025 at 11:30 a.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.

About Delek US Holdings, Inc.

Delek US Holdings, Inc. is a diversified downstream energy company with assets in petroleum refining, logistics, pipelines, and renewable fuels. 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.

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 subsidiaries owned approximately 63.6% (including the general partner interest) of Delek Logistics Partners, LP at January 2, 2025.

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; projected capital expenditures and investments into our business; liquidity and EBITDA impacts from strategic and intercompany transactions; 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 Delaware Gathering, Acquisition H2O Midstream and Gravity Water Midstream acquisitions, 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 the Organization of Petroleum Exporting Countries ("OPEC") regarding production and pricing disputes between OPEC members and Russia; risks and uncertainties related to the integration by Delek Logistics of the Delaware Gathering, H2O Midstream or Gravity business following their acquisition; 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; risks and uncertainties with respect to the possible benefits of the retail and H20 Midstream and Gravity transactions; 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; 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.

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 financial information presented in accordance with United States ("U.S.") Generally Accepted Accounting Principles ("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 US 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 intercompany lease impacts;
• Refining production margin - calculated based on the regional market sales price of refined products produced, less allocated transportation, Renewable Fuel Standard 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 throughput barrel - calculated as refining production margin divided by our average refining throughput 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, Adjusted Refining Margin and Refining Production 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.

Delek US Holdings, Inc.
Condensed Consolidated Balance Sheets (Unaudited)
($ in millions, except share and per share data)
		December 31, 2024				December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents		$	735.6			$	821.8
Accounts receivable, net			617.6				783.7
Inventories, net of inventory valuation reserves			893.2				941.2
Current assets of discontinued operations			—				41.5
Other current assets			85.5				77.8
Total current assets			2,331.9				2,666.0
Property, plant and equipment:
Property, plant and equipment			4,948.4				4,460.3
Less: accumulated depreciation			(2,008.4	)			(1,764.0	)
Property, plant and equipment, net			2,940.0				2,696.3
Operating lease right-of-use assets			92.2				121.5
Goodwill			475.3				687.5
Other intangibles, net			321.6				287.7
Equity method investments			392.9				360.7
Non-current assets of discontinued operations			—				228.1
Other non-current assets			111.9				124.0
Total assets		$	6,665.8			$	7,171.8
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	1,813.8			$	1,814.3
Current portion of long-term debt			9.5				44.5
Current portion of obligation under Inventory Intermediation Agreement			—				0.4
Current portion of operating lease liabilities			43.2				50.1
Current liabilities of discontinued operations			—				11.5
Accrued expenses and other current liabilities			649.5				764.3
Total current liabilities			2,516.0				2,685.1
Non-current liabilities:
Long-term debt, net of current portion			2,755.7				2,555.3
Obligation under Inventory Intermediation Agreement			408.7				407.2
Environmental liabilities, net of current portion			33.3				110.9
Asset retirement obligations			24.7				36.4
Deferred tax liabilities			214.8				264.1
Operating lease liabilities, net of current portion			54.8				85.7
Non-current liabilities of discontinued operations			—				34.3
Other non-current liabilities			82.6				33.1
Total non-current liabilities			3,574.6				3,527.0
Redeemable non-controlling interest			—				—
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, 80,127,994 shares and 81,539,871 shares issued at December 31, 2024 and December 31, 2023, respectively			0.8				0.8
Additional paid-in capital			1,215.9				1,113.6
Accumulated other comprehensive loss			(4.1	)			(4.8	)
Treasury stock, 17,575,527 shares, at cost, at December 31, 2024 and December 31, 2023, respectively			(694.1	)			(694.1	)
Retained earnings			(205.7	)			430.0
Non-controlling interests in subsidiaries			262.4				114.2
Total stockholders’ equity			575.2				959.7
Total liabilities and stockholders’ equity		$	6,665.8			$	7,171.8

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,
			2024				2023				2024				2023
Net revenues		$	2,373.7			$	3,942.1			$	11,852.2			$	16,467.2
Cost of sales:
Cost of materials and other			2,234.7				3,714.1				10,781.8				14,825.3
Operating expenses (excluding depreciation and amortization presented below)			183.5				193.4				763.8				770.6
Depreciation and amortization			90.1				79.7				349.7				322.8
Total cost of sales			2,508.3				3,987.2				11,895.3				15,918.7
Insurance proceeds			(5.6	)			(7.0	)			(20.6	)			(20.3	)
Operating (income) expenses related to wholesale business (excluding depreciation and amortization presented below)			(2.3	)			0.5				3.4				4.4
General and administrative expenses			61.2				64.0				252.8				272.0
Depreciation and amortization			6.2				4.6				24.8				16.7
Asset impairment			212.2				37.9				243.5				37.9
Other operating income, net			(2.9	)			(1.2	)			(55.5	)			(6.9	)
Total operating costs and expenses			2,777.1				4,086.0				12,343.7				16,222.5
Operating (loss) income			(403.4	)			(143.9	)			(491.5	)			244.7
Interest expense, net			68.9				78.9				313.0				318.0
Income from equity method investments			(14.8	)			(19.1	)			(92.2	)			(86.2	)
Other ( income) expense, net			(5.2	)			0.9				(6.3	)			(3.7	)
Total non-operating expense, net			48.9				60.7				214.5				228.1
(Loss) income from continuing operations before income tax (benefit) expense			(452.3	)			(204.6	)			(706.0	)			16.6
Income tax benefit			(51.2	)			(41.3	)			(107.9	)			(3.0	)
(Loss) income from continuing operations, net of tax			(401.1	)			(163.3	)			(598.1	)			19.6
Discontinued operations:
(Loss) income from discontinued operations, including gain on sale of discontinued operations			(1.9	)			6.1				105.9				35.2
Income tax (benefit) expense			(0.9	)			2.9				28.7				8.1
(Loss) income from discontinued operations, net of tax			(1.0	)			3.2				77.2				27.1
Net (loss) income			(402.1	)			(160.1	)			(520.9	)			46.7
Non-controlling interests			11.7				4.8				39.5				26.9
Net (loss) income attributable to Delek		$	(413.8	)		$	(164.9	)		$	(560.4	)		$	19.8
Basic (loss) income per share:
Loss from continuing operations		$	(6.53	)		$	(2.62	)		$	(9.98	)		$	(0.11	)
(Loss) income from discontinued operations			(0.02	)			0.05			$	1.21			$	0.41
Total basic (loss) income per share		$	(6.55	)		$	(2.57	)		$	(8.77	)		$	0.30
Diluted (loss) income per share:
Loss from continuing operations		$	(6.53	)		$	(2.62	)		$	(9.98	)		$	(0.11	)
(Loss) income from discontinued operations			(0.02	)			0.05			$	1.21			$	0.41
Total diluted (loss) income per share		$	(6.55	)		$	(2.57	)		$	(8.77	)		$	0.30
Weighted average common shares outstanding:
Basic			63,234,505				64,046,868				63,882,219				65,406,089
Diluted			63,234,505				64,046,868				63,882,219				65,406,089

Delek US Holdings, Inc.
Condensed Cash Flow Data (Unaudited)
($ in millions)		Three Months Ended December 31,								Year Ended December 31,
			2024				2023				2024				2023
Cash flows from operating activities:
Cash (used in) provided by operating activities - continuing operations		$	(162.6	)		$	87.3			$	(83.7	)		$	979.0
Cash (used in) provided by operating activities - discontinued operations			(0.9	)			3.5				16.9				34.6
Net cash (used in) provided by operating activities			(163.5	)			90.8				(66.8	)			1,013.6
Cash flows from investing activities:
Cash used in investing activities - continuing operations			(215.8	)			(61.0	)			(603.2	)			(381.6	)
Cash (used in) provided by investing activities - discontinued operations			—				(8.4	)			361.7				(26.4	)
Net cash used in investing activities			(215.8	)			(69.4	)			(241.5	)			(408.0	)
Cash flows from financing activities:
Cash provided by (used in) financing activities - continuing operations			77.3				(100.9	)			221.7				(624.7	)
Net cash provided by (used in) financing activities			77.3				(100.9	)			221.7				(624.7	)
Net decrease in cash and cash equivalents			(302.0	)			(79.5	)			(86.6	)			(19.1	)
Cash and cash equivalents at the beginning of the period			1,037.6				901.7				822.2				841.3
Cash and cash equivalents at the end of the period			735.6				822.2				735.6				822.2
Less cash and cash equivalents of discontinued operations at the end of the period			—				0.4				—				0.4
Cash and cash equivalents of continuing operations at the end of the period		$	735.6			$	821.8			$	735.6			$	821.8

Working Capital Impacts Included in Cash Flows from Operating Activities from Continuing Operations
($ in millions)		Three Months Ended December 31,							Year Ended December 31,
			2024				2023			2024			2023
(Unfavorable) favorable cash flow working capital changes (1)		$	(71.1	)		$	130.6		$	39.2		$	531.6
(1) Includes obligations under the inventory intermediation agreement.

Significant Transactions During the Quarter Impacting Results:

Transaction Costs

We incurred $3.8 million ($2.9 million after-tax) of additional transaction related costs in connection with the previously announced acquisition of interests in H2O Midstream Intermediate, LLC, H2O Midstream Permian LLC, and H2O Midstream LLC (the "H2O Midstream Acquisition"), intercompany agreement amendments, sale of our retail business and acquisition of interests in Gravity Water Intermediate Holdings LLC ("Gravity Acquisition") during the three months ended December 31, 2024.

Restructuring Costs

In 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 fourth quarter 2024, we recorded restructuring costs totaling $3.3 million ($2.6 million after-tax) associated with our business transformation. Restructuring costs $3.1 million are recorded in general and administrative expenses and $0.2 million are included in operating expenses in our condensed consolidated statements of income.

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 directly related to our refineries and per barrel cost of materials and other for the period recognized on a first-in, first-out basis directly related to our refineries. 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.

Intercompany Leases

As a result of amendments to intercompany lease agreements in August 2024, we had to reassess lease classification for the agreements that contain leases under Accounting Standards Codification 842. As a result of these lease assessments, certain of these agreements met the criteria to be accounted for as sales-type leases for Delek Logistics and finance leases for the Refining segment. Therefore, portions of the minimum volume commitments under these agreements subject to sales-type lease accounting are recorded as interest income with the remaining amounts recorded as a reduction in net investment in leases. Prior to the amendments, these agreements were accounted for as operating leases and these minimum volume commitments were recorded as revenues in the Logistics segment. Similarly, these minimum volume commitments were previously recorded as costs of sales for the Refining segment, as the underlying lease was reclassified from an operating lease to a finance lease, and these payments are now recorded as interest expense and reductions in the lease liability. These accounting changes have no impact to the Delek US consolidated results as these amounts eliminate in consolidation.

Reconciliation of Net Income (Loss) Attributable to Delek US to Adjusted Net Income (Loss)
		Three Months Ended December 31,								Year Ended December 31,
$ in millions (unaudited)			2024				2023				2024				2023
Reported net (loss) income attributable to Delek US		$	(413.8	)		$	(164.9	)		$	(560.4	)		$	19.8
Adjusting items (1)
Inventory LCM valuation (benefit) loss			(0.2	)			6.6				(10.7	)			0.4
Tax effect			—				(1.5	)			2.4				(0.1	)
Inventory LCM valuation (benefit) loss, net			(0.2	)			5.1				(8.3	)			0.3
Other inventory impact			43.9				48.6				82.9				194.0
Tax effect			(9.9	)			(11.0	)			(18.7	)			(43.7	)
Other inventory impact, net (2)			34.0				37.6				64.2				150.3
Business interruption insurance and settlement recoveries			—				—				(10.6	)			(10.0	)
Tax effect			—				—				2.4				2.3
Business interruption insurance and settlement recoveries, net			—				—				(8.2	)			(7.7	)
Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements			0.1				(9.5	)			1.2				(17.6	)
Tax effect			(0.1	)			2.2				(0.3	)			4.0
Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements, net			—				(7.3	)			0.9				(13.6	)
Transaction related expenses			3.8				—				24.8				—
Tax effect			(0.9	)			—				(5.6	)			—
Transaction related expenses, net (2)			2.9				—				19.2				—
Unrealized RINs hedging (gain) loss where the hedged item is not yet recognized in the financial statements			1.8				—				5.5				—
Tax effect			(0.4	)			—				(1.2	)			—
Unrealized RINs hedging (gain) loss where the hedged item is not yet recognized in the financial statements, net (3)			1.4				—				4.3				—
Restructuring costs			3.3				31.4				62.8				37.8
Tax effect			(0.7	)			(7.1	)			(14.1	)			(8.5	)
Restructuring costs, net (2)			2.6				24.3				48.7				29.3
El Dorado refinery fire losses			—				0.7				—				8.7
Tax effect			—				(0.2	)			—				(2.0	)
El Dorado refinery fire losses, net			—				0.5				—				6.7
Goodwill impairment			212.2				14.8				212.2				14.8
Tax effect			—				(3.3	)			—				(3.3	)
Goodwill impairment, net			212.2				11.5				212.2				11.5
Property settlement			—				—				(53.4	)			—
Tax effect			—				—				12.0				—
Property settlement, net			—				—				(41.4	)			—
Loss (gain) on sale of Retail Stores			0.9				—				(97.5	)			—
Tax effect			(0.5	)			—				27.4				—
Loss (gain) on sale of Retail Stores, net			0.4				—				(70.1	)			—
Total adjusting items (1)			253.3				71.7				221.5				176.8
Adjusted net (loss) income		$	(160.5	)		$	(93.2	)		$	(338.9	)		$	196.6

(1)		All adjustments have been tax effected using the estimated marginal income tax rate, as applicable.
(2)		See further discussion in the "Significant Transactions During the Quarter Impacting Results" section.
(3)		Starting with the quarter ended March 31, 2024, we updated our non-GAAP financial measures to include the impact of unrealized gains and losses related to RINs where the hedged item is not yet recognized in the financial statements. The impact to historical non-GAAP financial measures is immaterial.

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)			2024				2023				2024				2023
Reported diluted (loss) income per share		$	(6.55	)		$	(2.57	)		$	(8.77	)		$	0.30
Adjusting items, after tax (per share) (1) (2)
Net inventory LCM valuation (benefit) loss			—				0.08				(0.13	)			—
Other inventory impact (3)			0.53				0.58				1.00				2.29
Business interruption insurance and settlement recoveries			—				—				(0.13	)			(0.12	)
Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements			—				(0.11	)			0.01				(0.21	)
Unrealized RINs hedging (gain) loss where the hedged item is not yet recognized in the financial statements (4)			0.02				—				0.07				—
Transaction related expenses (3)			0.05				—				0.30				—
Restructuring costs (3)			0.04				0.37				0.77				0.45
El Dorado refinery fire losses			—				0.01				—				0.10
Goodwill impairment			3.36				0.18				3.32				0.17
Property settlement			—				—				(0.65	)			—
Loss (gain) on sale of Retail Stores			0.01				—				(1.10	)			—
Total adjusting items (1)			4.01				1.11				3.46				2.68
Adjusted net (loss) income per share		$	(2.54	)		$	(1.46	)		$	(5.31	)		$	2.98

(1)		The adjustments have been tax effected using the estimated marginal tax rate, as applicable.
(2)		For periods of Adjusted net loss, Adjustments (Adjusting items) and Adjusted net loss per share are presented using basic weighted average shares outstanding.
(3)		See further discussion in the "Significant Transactions During the Quarter Impacting Results" section.
(4)		Starting with the quarter ended March 31, 2024, we updated our non-GAAP financial measures to include the impact of unrealized gains and losses related to RINs where the hedged item is not yet recognized in the financial statements. The impact to historical non-GAAP financial measures is immaterial.

Reconciliation of Net Income (Loss) attributable to Delek US to Adjusted EBITDA
		Three Months Ended December 31,								Year Ended December 31,
$ in millions (unaudited)			2024				2023				2024				2023
Reported net (loss) income attributable to Delek US		$	(413.8	)		$	(164.9	)		$	(560.4	)		$	19.8
Add:
Interest expense, net			68.9				79.0				313.1				318.2
Income tax expense (benefit)			(52.1	)			(38.4	)			(79.2	)			5.1
Depreciation and amortization			96.3				87.5				383.5				351.6
EBITDA attributable to Delek US			(300.7	)			(36.8	)			57.0				694.7
Adjusting items
Net inventory LCM valuation (benefit) loss			(0.2	)			6.6				(10.7	)			0.4
Other inventory impact (1)			43.9				48.6				82.9				194.0
Business interruption insurance and settlement recoveries			—				—				(10.6	)			(10.0	)
Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements			0.1				(9.5	)			1.2				(17.6	)
Unrealized RINs hedging (gain) loss where the hedged item is not yet recognized in the financial statements (2)			1.8				—				5.5				—
Transaction related expenses (1)			3.8				—				24.8				—
Restructuring costs (1)			3.3				31.4				62.8				37.8
El Dorado refinery fire losses			—				0.7				—				8.7
Goodwill impairment			212.2				14.8				212.2				14.8
Property settlement			—				—				(53.4	)			—
Loss (gain) on sale of Retail Stores			0.9				—				(97.5	)			—
Net income attributable to non-controlling interest			11.7				4.8				39.5				26.9
Total Adjusting items			277.5				97.4				256.7				255.0
Adjusted EBITDA		$	(23.2	)		$	60.6			$	313.7			$	949.7

(1)		See further discussion in the "Significant Transactions During the Quarter Impacting Results" section.
(2)		Starting with the quarter ended March 31, 2024, we updated our non-GAAP financial measures to include the impact of unrealized gains and losses related to RINs where the hedged item is not yet recognized in the financial statements. The impact to historical non-GAAP financial measures is immaterial.

Reconciliation of (Loss) Income From Continuing Operations, Net of Tax to Adjusted EBITDA from Continuing Operations
		Three Months Ended December 31,								Year Ended December 31,
$ in millions (unaudited)			2024				2023				2024				2023
Reported (loss) income from continuing operations, net of tax		$	(401.1	)		$	(163.3	)		$	(598.1	)		$	19.6
Add:
Interest expense, net			68.9				78.9				313.0				318.0
Income tax benefit			(51.2	)			(41.3	)			(107.9	)			(3.0	)
Depreciation and amortization			96.3				84.3				374.5				339.5
EBITDA attributable to Delek US			(287.1	)			(41.4	)			(18.5	)			674.1
Adjusting items
Net inventory LCM valuation (benefit) loss			(0.2	)			6.6				(10.7	)			0.4
Other inventory impact (1)			43.9				48.6				82.9				194.0
Business interruption insurance and settlement recoveries			—				—				(10.6	)			(10.0	)
Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements			0.1				(9.5	)			1.2				(17.6	)
Unrealized RINs hedging (gain) loss where the hedged item is not yet recognized in the financial statements (2)			1.8				—				5.5				—
Transaction related expenses (1)			3.3				—				14.9				—
Restructuring costs (1)			3.3				31.4				62.8				37.8
El Dorado refinery fire losses			—				0.7				—				8.7
Goodwill impairment			212.2				14.8				212.2				14.8
Property settlement			—				—				(53.4	)			—
Total Adjusting items			264.4				92.6				304.8				228.1
Adjusted EBITDA from continuing operations		$	(22.7	)		$	51.2			$	286.3			$	902.2

(1)		See further discussion in the "Significant Transactions During the Quarter Impacting Results" section.
(2)		Starting with the quarter ended March 31, 2024, we updated our non-GAAP financial measures to include the impact of unrealized gains and losses related to RINs where the hedged item is not yet recognized in the financial statements. The impact to historical non-GAAP financial measures is immaterial.

Reconciliation of (Loss) Income From Discontinued Operations, Net of Tax to Adjusted EBITDA from Discontinued Operations
		Three Months Ended December 31,							Year Ended December 31,
$ in millions (unaudited)			2024				2023			2024				2023
Reported (loss) income from discontinued operations, net of tax		$	(1.0	)		$	3.2		$	77.2			$	27.1
Add:
Interest expense, net			—				0.1			0.1				0.2
Income tax (benefit) expense			(0.9	)			2.9			28.7				8.1
Depreciation and amortization			—				3.2			9.0				12.1
EBITDA attributable to discontinued operations			(1.9	)			9.4			115.0				47.5
Adjusting items
Transaction costs (1)			0.5				—			9.9				—
Loss (gain) on sale of Retail Stores			0.9				—			(97.5	)			—
Total Adjusting items			1.4				—			(87.6	)			—
Adjusted EBITDA from discontinued operations		$	(0.5	)		$	9.4		$	27.4			$	47.5
(1) See further discussion in the "Significant Transactions During the Quarter Impacting Results" section.

Reconciliation of Segment EBITDA Attributable to Delek US to Adjusted Segment EBITDA
		Three Months Ended December 31, 2024
$ in millions (unaudited)		Refining				Logistics			Corporate, Other and Eliminations				Consolidated
Segment EBITDA Attributable to Delek US		$	(293.2	)		$	73.8		$	(67.7	)		$	(287.1	)
Adjusting items
Net inventory LCM valuation (benefit) loss			(0.2	)			—			—				(0.2	)
Other inventory impact (1)			43.9				—			—				43.9
Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements			0.1				—			—				0.1
Unrealized RINs hedging (gain) loss where the hedged item is not yet recognized in the financial statements (2)			1.8				—			—				1.8
Transaction related expenses (1)			—				2.7			0.6				3.3
Restructuring costs (1)			—				—			3.3				3.3
Goodwill impairment			212.2				—			—				212.2
Intercompany lease impacts (1)			(34.2	)			30.7			3.5				—
Total Adjusting items			223.6				33.4			7.4				264.4
Adjusted Segment EBITDA		$	(69.6	)		$	107.2		$	(60.3	)		$	(22.7	)

		Three Months Ended December 31, 2023
$ in millions (unaudited)		Refining (3)				Logistics			Corporate, Other and Eliminations (3)				Consolidated
Segment EBITDA Attributable to Delek US		$	(52.3	)		$	84.2		$	(73.3	)		$	(41.4	)
Adjusting items
Net inventory LCM valuation (benefit) loss			6.6				—			—				6.6
Other inventory impact (1)			48.6				—			—				48.6
Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements			(9.5	)			—			—				(9.5	)
Restructuring costs			1.5				0.4			29.5				31.4
El Dorado refinery fire losses			0.7				—			—				0.7
Goodwill impairment			—				14.8			—				14.8
Total Adjusting items			47.9				15.2			29.5				92.6
Adjusted Segment EBITDA		$	(4.4	)		$	99.4		$	(43.8	)		$	51.2

Reconciliation of Segment EBITDA Attributable to Delek US to Adjusted Segment EBITDA
		Year Ended December 31, 2024
$ in millions (unaudited)		Refining (3)				Logistics			Corporate, Other and Eliminations (3)				Consolidated
Segment EBITDA Attributable to Delek US		$	(158.0	)		$	342.7		$	(203.2	)		$	(18.5	)
Adjusting items
Net inventory LCM valuation (benefit) loss			(10.7	)			—			—				(10.7	)
Other inventory impact (1)			82.9				—			—				82.9
Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements			1.2				—			—				1.2
Unrealized RINs hedging (gain) loss where the hedged item is not yet recognized in the financial statements (2)			5.5				—			—				5.5
Restructuring costs (1)			36.6				—			26.2				62.8
Transaction related expenses (1)			—				11.4			3.5				14.9
Business interruption settlement recoveries			(10.6	)			—			—				(10.6	)
Goodwill impairment			212.2				—			—				212.2
Property settlement			—				—			(53.4	)			(53.4	)
Intercompany lease impacts (1)			(66.3	)			59.6			6.7				—
Total Adjusting items			250.8				71.0			(17.0	)			304.8
Adjusted Segment EBITDA		$	92.8			$	413.7		$	(220.2	)		$	286.3

		Year Ended December 31, 2023
$ in millions (unaudited)		Refining (3)				Logistics			Corporate, Other and Eliminations (3)				Consolidated
Segment EBITDA Attributable to Delek US		$	560.7			$	363.0		$	(249.6	)		$	674.1
Adjusting items
Net inventory LCM valuation (benefit) loss			0.4				—			—				0.4
Other inventory impact (1)			194.0				—			—				194.0
Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements			(17.6	)			—			—				(17.6	)
Restructuring costs			1.5				0.4			35.9				37.8
Business interruption insurance recoveries			(10.0	)			—			—				(10.0	)
El Dorado refinery fire losses			8.7				—			—				8.7
Goodwill impairment			—				14.8			—				14.8
Total Adjusting items			177.0				15.2			35.9				228.1
Adjusted Segment EBITDA		$	737.7			$	378.2		$	(213.7	)		$	902.2

(1)		See further discussion in the "Significant Transactions During the Quarter Impacting Results" section.
(2)		Starting with the quarter ended March 31, 2024, we updated our non-GAAP financial measures to include the impact of unrealized gains and losses related to RINs where the hedged item is not yet recognized in the financial statements. The impact to historical non-GAAP financial measures is immaterial.
(3)		During the second quarter 2024, 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 represents reporting the operating results of our 50% interest in a joint venture that owns asphalt terminals located in the southwestern region of the U.S. within the refining segment. Prior to this change, these operating results were reported as part of corporate, other and eliminations. While this reporting change did not change our consolidated results, segment data for previous years has been restated and is consistent with the current year presentation.

Refining Segment Selected Financial Information		Three Months Ended December 31,								Year Ended December 31,
			2024				2023				2024				2023
Total Refining Segment		(Unaudited)								(Unaudited)
Days in period			92				92				366				365
Total sales volume - refined product (average barrels per day ("bpd")) (1)			271,333				308,932				301,834				298,617
Total production (average bpd)			262,918				304,939				292,817				291,802
Crude oil			252,170				286,898				281,271				278,231
Other feedstocks			14,346				19,508				15,380				15,998
Total throughput (average bpd)			266,516				306,406				296,651				294,229
Total refining production margin per bbl total throughput		$	3.71			$	6.86			$	7.10			$	12.02
Total refining operating expenses per bbl total throughput		$	5.46			$	5.62			$	5.37			$	5.54
Total refining production margin ($ in millions)		$	90.9			$	193.3			$	771.2			$	1,291.0
Supply, marketing and other ($ millions) (2)			(34.6	)			(43.4	)			(123.0	)			51.6
Total adjusted refining margin ($ in millions)		$	56.3			$	149.9			$	648.2			$	1,342.6
Total crude slate details
Total crude slate: (% based on amount received in period)
WTI crude oil			66.3	%			72.2	%			69.9	%			73.0	%
Gulf Coast Sweet crude			6.7	%			5.4	%			7.3	%			4.3	%
Local Arkansas crude oil			3.9	%			3.5	%			3.4	%			4.0	%
Other			23.1	%			18.9	%			19.4	%			18.7	%
Crude utilization (% based on nameplate capacity) (4)			83.5	%			95.0	%			93.1	%			92.1	%
Tyler, TX Refinery
Days in period			92				92				366				365
Products manufactured (average bpd):
Gasoline			33,052				41,433				35,723				33,442
Diesel/Jet			29,568				33,698				31,755				28,670
Petrochemicals, LPG, NGLs			1,983				2,142				2,319				2,341
Other			426				1,201				849				1,691
Total production			65,029				78,474				70,646				66,144
Throughput (average bpd):
Crude oil			65,060				74,577				70,009				63,210
Other feedstocks			1,279				4,727				2,299				3,617
Total throughput			66,339				79,304				72,308				66,827
Tyler refining production margin ($ in millions)		$	40.6			$	84.2			$	265.2			$	413.9
Per barrel of throughput:
Tyler refining production margin		$	6.66			$	11.54			$	10.02			$	16.97
Operating expenses		$	5.51			$	5.13			$	5.04			$	5.08
Crude Slate: (% based on amount received in period)
WTI crude oil			74.5	%			82.8	%			79.2	%			79.5	%
East Texas crude oil			25.2	%			17.2	%			20.4	%			20.5	%
Other			0.3	%			—	%			0.4	%			—	%
Capture rate (3)			48.4	%			65.8	%			57.0	%			62.8	%
El Dorado, AR Refinery
Days in period			92				92				366				365
Products manufactured (average bpd):
Gasoline			37,814				43,777				38,215				38,868
Diesel			27,628				32,585				29,843				30,061
Petrochemicals, LPG, NGLs			918				1,290				1,205				1,495
Asphalt			8,412				8,579				8,739				7,711
Other			1,076				409				1,237				877
Total production			75,848				86,640				79,239				79,012
Throughput (average bpd):
Crude oil			73,215				83,767				77,993				77,423
Other feedstocks			4,034				3,881				2,886				3,262
Total throughput			77,249				87,648				80,879				80,685

Refining Segment Selected Financial Information (continued)		Three Months Ended December 31,								Year Ended December 31,
			2024				2023				2024				2023
El Dorado refining production margin ($ in millions)		$	4.0			$	39.8			$	101.0			$	270.8
Per barrel of throughput:
El Dorado refining production margin		$	0.56			$	4.94			$	3.41			$	9.20
Operating expenses		$	4.78			$	4.58			$	4.65			$	4.59
Crude Slate: (% based on amount received in period)
WTI crude oil			64.9	%			66.4	%			66.5	%			67.3	%
Local Arkansas crude oil			13.1	%			11.9	%			12.2	%			14.0	%
Other			22.0	%			21.7	%			21.3	%			18.7	%
Capture rate (3)			4.1	%			28.2	%			19.4	%			34.0	%
Big Spring, TX Refinery
Days in period			92				92				366				365
Products manufactured (average bpd):
Gasoline			36,757				28,324				33,888				32,386
Diesel/Jet			24,784				19,593				25,157				22,390
Petrochemicals, LPG, NGLs			4,949				4,465				4,710				3,593
Asphalt			2,986				2,430				2,774				1,983
Other			2,670				2,673				3,883				3,129
Total production			72,146				57,485				70,412				63,481
Throughput (average bpd):
Crude oil			66,919				52,828				66,123				60,236
Other feedstocks			5,981				5,380				4,975				4,223
Total throughput			72,900				58,208				71,098				64,459
Big Spring refining production margin ($ in millions)		$	33.8			$	32.4			$	215.4			$	312.7
Per barrel of throughput:
Big Spring refining production margin		$	5.04			$	6.05			$	8.28			$	13.29
Operating expenses		$	6.29			$	8.98			$	6.66			$	7.92
Crude Slate: (% based on amount received in period)
WTI crude oil			70.1	%			67.4	%			70.4	%			68.5	%
WTS crude oil			29.9	%			32.6	%			29.6	%			31.5	%
Capture rate (3)			38.6	%			38.5	%			48.9	%			51.3	%
Krotz Springs, LA Refinery
Days in period			92				92				366				365
Products manufactured (average bpd):
Gasoline			18,516				41,848				34,268				40,805
Diesel/Jet			18,957				30,982				28,125				31,589
Heavy oils			9,202				2,440				3,641				3,785
Petrochemicals, LPG, NGLs			2,791				6,568				4,942				6,525
Other			429				503				1,544				460
Total production			49,895				82,341				72,520				83,164
Throughput (average bpd):
Crude oil			46,976				75,726				67,146				77,362
Other feedstocks			3,052				5,520				5,220				4,896
Total throughput			50,028				81,246				72,366				82,258
Krotz Springs refining production margin ($ in millions)		$	12.5			$	36.9			$	189.6			$	293.5
Per barrel of throughput:
Krotz Springs refining production margin		$	2.71			$	4.93			$	7.16			$	9.78
Operating expenses		$	5.27			$	4.83			$	5.23			$	4.96
Crude Slate: (% based on amount received in period)
WTI Crude			52.6	%			72.6	%			63.7	%			77.4	%
Gulf Coast Sweet Crude			35.0	%			20.2	%			29.7	%			15.1	%
Other			12.4	%			7.2	%			6.6	%			7.5	%
Capture rate (3)			27.8	%			55.7	%			53.4	%			66.5	%

(1)		Includes sales to other segments which are eliminated in consolidation.
(2)		Supply, marketing and other activities include refined product wholesale and related marketing activities, asphalt and intermediates marketing activities, optimization of inventory, the execution of risk management programs to capture the physical and financial opportunities that extend from our refining operations and our 50% interest in a joint venture that owns asphalt terminals. Formally known as Trading & Supply.
(3)		Defined as refining production margin divided by the respective crack spread. See page 19 for crack spread information.
(4)		Crude throughput as % of total nameplate capacity of 302,000 bpd.

Logistics Segment Selected Information		Three Months Ended December 31,						Year Ended December 31,
			2024			2023			2024			2023
		(Unaudited)						(Unaudited)
Gathering & Processing: (average bpd)
Lion Pipeline System:
Crude pipelines (non-gathered)			64,920			73,438			69,903			67,003
Refined products pipelines			57,513			68,552			59,136			58,181
SALA Gathering System			13,883			13,329			11,568			13,782
East Texas Crude Logistics System			35,046			40,798			34,711			32,668
Midland Gathering Assets			200,705			229,179			217,847			230,471
Plains Connection System			360,725			254,224			333,405			250,140
Delaware Gathering Assets:
Natural gas gathering and processing (Mcfd) (1)			71,078			67,292			74,831			71,239
Crude oil gathering (average bpd)			123,346			112,522			123,978			111,335
Water disposal and recycling (average bpd)			144,414			95,175			128,539			108,907
Midland Water Gathering System: (2)
Water disposal and recycling (average bpd)			274,361			—			280,955			—
Wholesale Marketing & Terminalling:
East Texas - Tyler Refinery sales volumes (average bpd) (3)			63,022			68,735			67,682			60,626
Big Spring wholesale marketing throughputs (average bpd)			—			76,408			44,999			77,897
West Texas wholesale marketing throughputs (average bpd)			7,472			10,511			5,828			10,032
West Texas wholesale marketing margin per barrel		$	4.35		$	4.73		$	3.18		$	5.18
Terminalling throughputs (average bpd) (4)			151,309			105,933			154,217			113,803

(1)		Mcfd - average thousand cubic feet per day.
(2)		2024 volumes include volumes from September 11, 2024 through December 31, 2024.
(3)		Excludes jet fuel and petroleum coke.
(4)		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.

Supplemental Information
Schedule of Selected Segment Financial Data, Pricing Statistics Impacting our Refining Segment, and Other Reconciliations of Amounts Reported Under U.S. GAAP

Selected Segment Financial Data		Three Months Ended December 31, 2024
$ in millions (unaudited)		Refining				Logistics			Corporate, Other and Eliminations				Consolidated
Net revenues (excluding intercompany fees and revenues)		$	2,270.3			$	103.4		$	—			$	2,373.7
Inter-segment fees and revenues			69.4				106.4			(175.8	)			—
Total revenues		$	2,339.7			$	209.8		$	(175.8	)		$	2,373.7
Cost of sales			2,502.7				163.9			(158.3	)			2,508.3
Gross margin		$	(163.0	)		$	45.9		$	(17.5	)		$	(134.6	)

		Three Months Ended December 31, 2023
$ in millions (unaudited)		Refining				Logistics			Corporate, Other and Eliminations				Consolidated
Net revenues (excluding intercompany fees and revenues)		$	3,735.9			$	104.7		$	—			$	3,840.6
Inter-segment fees and revenues (1)			199.5				149.4			(247.4	)			101.5
Total revenues		$	3,935.4			$	254.1		$	(247.4	)		$	3,942.1
Cost of sales			4,049.9				179.9			(242.6	)			3,987.2
Gross margin		$	(114.5	)		$	74.2		$	(4.8	)		$	(45.1	)

		Year Ended December 31, 2024
$ in millions (unaudited)		Refining				Logistics			Corporate, Other and Eliminations				Consolidated
Net revenues (excluding intercompany fees and revenues)		$	11,142.4			$	422.8		$	—			$	11,565.2
Inter-segment fees and revenues (1)			640.6				517.8			(871.4	)			287.0
Total revenues		$	11,783.0			$	940.6		$	(871.4	)		$	11,852.2
Cost of sales			12,009.5				703.0			(817.2	)			11,895.3
Gross margin		$	(226.5	)		$	237.6		$	(54.2	)		$	(43.1	)

		Year Ended December 31, 2023
$ in millions (unaudited)		Refining			Logistics			Corporate, Other and Eliminations				Consolidated
Net revenues (excluding intercompany fees and revenues)		$	15,578.1		$	456.6		$	—			$	16,034.7
Inter-segment fees and revenues (1)			828.8			563.8			(960.1	)			432.5
Total revenues		$	16,406.9		$	1,020.4		$	(960.1	)		$	16,467.2
Cost of sales			16,095.7			735.5			(912.5	)			15,918.7
Gross margin		$	311.2		$	284.9		$	(47.6	)		$	548.5

(1)

Intercompany fees and sales for the refining segment include revenues of $287.0 million during the year ended December 31, 2024 and $101.5 million and $432.5 million during the three months ended December 31, 2023 and year ended December 31, 2023, respectively, to the Retail Stores, the operations of which are reported in discontinued operations.

Pricing Statistics		Three Months Ended December 31,						Year Ended December 31,
(average for the period presented)			2024			2023			2024			2023
WTI — Cushing crude oil (per barrel)		$	70.42		$	78.69		$	75.88		$	77.69
WTI — Midland crude oil (per barrel)		$	71.19		$	79.71		$	76.85		$	78.90
WTS — Midland crude oil (per barrel)		$	70.12		$	78.43		$	75.95		$	77.61
LLS (per barrel)		$	72.57		$	81.26		$	78.30		$	80.18
Brent (per barrel)		$	74.01		$	82.94		$	79.84		$	82.21
U.S. Gulf Coast 5-3-2 crack spread (per barrel) (1)		$	13.74		$	17.52		$	17.58		$	27.02
U.S. Gulf Coast 3-2-1 crack spread (per barrel) (1)		$	13.05		$	15.71		$	16.94		$	25.93
U.S. Gulf Coast 2-1-1 crack spread (per barrel) (1)		$	9.77		$	8.85		$	13.40		$	14.70
U.S. Gulf Coast Unleaded Gasoline (per gallon)		$	1.90		$	2.03		$	2.13		$	2.34
Gulf Coast Ultra-low sulfur diesel (per gallon)		$	2.15		$	2.68		$	2.36		$	2.72
U.S. Gulf Coast high sulfur diesel (per gallon)		$	2.02		$	2.01		$	1.98		$	1.85
Natural gas (per MMBTU)		$	2.98		$	2.92		$	2.42		$	2.66

(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 (Argus pricing) WTI Cushing crude, U.S. Gulf Coast CBOB gasoline and Gulf Coast 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 (Argus pricing) WTI Cushing crude, U.S. Gulf Coast CBOB gasoline and Gulf Coast ultra-low sulfur diesel. For 2023, for our Krotz Springs refinery, we compare our per barrel refining margin to the Gulf Coast 2-1-1 crack spread consisting of (Argus pricing) LLS crude oil, (Argus pricing) U.S. Gulf Coast CBOB gasoline and 50% of (Argus pricing) U.S. Gulf Coast Pipeline No. 2 heating oil (high sulfur diesel) and 50% of (Platts pricing) U.S. Gulf Coast Pipeline No. 2 heating oil (high sulfur diesel). For 2024, for our Krotz Springs refinery, we compare our per barrel refining margin to the Gulf Coast 2-1-1 crack spread consisting of (Argus pricing) LLS crude oil, (Argus pricing) U.S. Gulf Coast CBOB gasoline and (Platts pricing) 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.

Other Reconciliations 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			2024				2023				2024				2023
Gross margin		$	(163.0	)		$	(114.5	)		$	(226.5	)		$	311.2
Add back (items included in cost of sales):
Operating expenses (excluding depreciation and amortization)			137.2				159.8				596.6				619.2
Depreciation and amortization			70.7				57.7				265.5				234.2
Refining margin		$	44.9			$	103.0			$	635.6			$	1,164.6
Adjusting items
Net inventory LCM valuation loss (benefit)			(0.2	)			6.6				(10.7	)			0.4
Other inventory impact (1)			43.9				48.6				82.9				194.0
Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements			0.1				(9.5	)			1.2				(17.6	)
Unrealized RINs hedging (gain) loss where the hedged item is not yet recognized in the financial statements (2)			1.8				—				5.5				—
Restructuring costs (1)			—				1.2				—				1.2
Intercompany lease impacts (1)			(34.2	)			—				(66.3	)			—
Total adjusting items			11.4				46.9				12.6				178.0
Adjusted refining margin		$	56.3			$	149.9			$	648.2			$	1,342.6

(1)		See further discussion in the "Significant Transactions During the Quarter Impacting Results" section.
(2)		Starting with the quarter ended March 31, 2024, we updated our non-GAAP financial measures to include the impact of unrealized gains and losses related to RINs where the hedged item is not yet recognized in the financial statements. The impact to historical non-GAAP financial measures is immaterial.

Calculation of Net (Cash) Debt		December 31, 2024			December 31, 2023
Long-term debt - current portion		$	9.5		$	44.5
Long-term debt - non-current portion			2,755.7			2,555.3
Total long-term debt			2,765.2			2,599.8
Less: Cash and cash equivalents			735.6			821.8
Net debt - consolidated			2,029.6			1,778.0
Less: DKL net debt			1,870.0			1,700.0
Net debt, excluding DKL		$	159.6		$	78.0

 

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Source: Delek US Holdings, Inc.

FAQ

What were Delek US Holdings' Q4 2024 financial results?

Delek US Holdings reported a net loss of $413.8 million or $(6.55) per share, with an adjusted net loss of $160.5 million or $(2.54) per share, and adjusted EBITDA of $(23.2) million.

What significant transactions did Delek US complete in 2024?

In 2024, Delek US sold retail assets for $390 million, reduced its interest in DKL from 78.7% to 63.6%, and completed the W2W pipeline drop-down into DKL.

What is Delek US Holdings' outlook for 2025?

In 2025, Delek US expects the EOP to increase profitability by $120 million and DKL's full-year EBITDA guidance is $480-$520 million.

How did the refining segment perform in Q4 2024?

The refining segment's Q4 2024 adjusted EBITDA was $(69.6) million, impacted by lower crack spreads and turnaround activities.

What was the logistics segment's performance in Q4 2024?

The logistics segment's Q4 2024 adjusted EBITDA was $107.2 million, driven by acquisitions and rate increases.

What is Delek US Holdings' current debt position?

As of December 31, 2024, Delek US Holdings had a cash balance of $735.6 million and net debt of $2,029.6 million.