Delek US Holdings Reports Third Quarter 2024 Results
Delek US Holdings reported a net loss of $76.8 million ($1.20 per share) in Q3 2024, with adjusted net loss of $93.0 million ($1.45 per share) and adjusted EBITDA of $70.6 million. The company completed several strategic transactions, including the sale of retail assets for $390 million and the drop-down of Wink to Webster pipeline. The refining segment's adjusted EBITDA decreased to $10.2 million from $296.1 million year-over-year due to lower crack spreads. The logistics segment showed improvement with adjusted EBITDA of $106.1 million. The company maintains a strong liquidity position with $1,037.6 million in cash and announced a quarterly dividend of $0.255 per share.
Delek US Holdings ha registrato una perdita netta di 76,8 milioni di dollari (1,20 dollari per azione) nel terzo trimestre del 2024, con una perdita netta rettificata di 93,0 milioni di dollari (1,45 dollari per azione) e un EBITDA rettificato di 70,6 milioni di dollari. L'azienda ha completato diverse operazioni strategiche, inclusa la vendita di beni al dettaglio per 390 milioni di dollari e la discesa della pipeline Wink a Webster. L'EBITDA rettificato del segmento di raffinazione è diminuito a 10,2 milioni di dollari rispetto ai 296,1 milioni di dollari dell'anno precedente a causa di spread di crack più bassi. Il segmento della logistica ha mostrato un miglioramento con un EBITDA rettificato di 106,1 milioni di dollari. L'azienda mantiene una posizione di liquidità solida con 1.037,6 milioni di dollari in contante e ha annunciato un dividendo trimestrale di 0,255 dollari per azione.
Delek US Holdings reportó una pérdida neta de 76,8 millones de dólares (1,20 dólares por acción) en el tercer trimestre de 2024, con una pérdida neta ajustada de 93,0 millones de dólares (1,45 dólares por acción) y un EBITDA ajustado de 70,6 millones de dólares. La compañía completó varias transacciones estratégicas, incluida la venta de activos minoristas por 390 millones de dólares y la transferencia de la tubería Wink a Webster. El EBITDA ajustado del segmento de refinación disminuyó a 10,2 millones de dólares desde 296,1 millones de dólares en comparación con el año anterior debido a márgenes de crack más bajos. El segmento de logística mostró una mejora con un EBITDA ajustado de 106,1 millones de dólares. La compañía mantiene una posición de liquidez sólida con 1.037,6 millones de dólares en efectivo y anunció un dividendo trimestral de 0,255 dólares por acción.
Delek US Holdings는 2024년 3분기에 7,680만 달러 (주당 1.20달러)의 순손실을 보고했으며, 조정된 순손실은 9,300만 달러 (주당 1.45달러), 조정된 EBITDA는 7,060만 달러입니다. 이 회사는 3억 9,000만 달러에 소매 자산을 판매하고 Wink 파이프라인을 Webster로 이전하는 등 여러 전략적 거래를 완료했습니다. 정제 부문의 조정된 EBITDA는 작년 대비 낮은 크랙 스프레드로 인해 2억 9,610만 달러에서 1,020만 달러로 감소했습니다. 물류 부문은 조정된 EBITDA가 1억 610만 달러로 개선되었습니다. 이 회사는 10억 3,760만 달러의 현금을 보유하며 안정적인 유동성 위치를 유지하고 있으며, 주당 0.255달러의 분기 배당금을 발표했습니다.
Delek US Holdings a annoncé une perte nette de 76,8 millions de dollars (1,20 dollar par action) au troisième trimestre 2024, avec une perte nette ajustée de 93,0 millions de dollars (1,45 dollar par action) et un EBITDA ajusté de 70,6 millions de dollars. L'entreprise a réalisé plusieurs transactions stratégiques, y compris la vente d'actifs de détail pour 390 millions de dollars et le transfert de l'oléoduc Wink à Webster. L'EBITDA ajusté du segment de raffinage a diminué à 10,2 millions de dollars contre 296,1 millions de dollars l'année précédente en raison de la baisse des spreads de crack. Le segment logistique a montré une amélioration avec un EBITDA ajusté de 106,1 millions de dollars. L'entreprise maintient une solide position de liquidité avec 1.037,6 millions de dollars en espèces et a annoncé un dividende trimestriel de 0,255 dollar par action.
Delek US Holdings berichtete im 3. Quartal 2024 über einen Nettoverlust von 76,8 Millionen Dollar (1,20 Dollar pro Aktie) mit einem bereinigten Nettoverlust von 93,0 Millionen Dollar (1,45 Dollar pro Aktie) und einem bereinigten EBITDA von 70,6 Millionen Dollar. Das Unternehmen hat mehrere strategische Transaktionen abgeschlossen, darunter den Verkauf von Einzelhandelsaktiva für 390 Millionen Dollar und die Übertragung der Wink-Pipeline an Webster. Das bereinigte EBITDA des Raffinierungsegments ging im Vergleich zum Vorjahr von 296,1 Millionen Dollar auf 10,2 Millionen Dollar aufgrund niedrigerer Crack-Spreads zurück. Das Logistiksegment zeigte Verbesserungen mit einem bereinigten EBITDA von 106,1 Millionen Dollar. Das Unternehmen verfügt über eine starke Liquiditätsposition mit 1.037,6 Millionen Dollar in bar und kündigte eine vierteljährliche Dividende von 0,255 Dollar pro Aktie an.
- Sale of retail assets generated $390 million in proceeds
- Logistics segment achieved record quarterly EBITDA of $106.1 million
- Enterprise Optimization Plan expected to increase profitability by $100 million
- Strong liquidity position with $1,037.6 million cash balance
- Net loss of $76.8 million compared to net income of $128.7 million in Q3 2023
- Adjusted EBITDA declined to $70.6 million from $345.1 million year-over-year
- Refining segment EBITDA dropped to $10.2 million from $296.1 million year-over-year
- Total consolidated long-term debt of $2,789.4 million
Insights
The Q3 2024 results show significant challenges with a net loss of
However, strategic moves are noteworthy:
- Sale of retail assets for
$390 million - Implementation of Enterprise Optimization Plan targeting
$100 million in profitability improvements - Strong liquidity position with
$1.03 billion cash (excluding DKL)
The company's strategic shift towards a "Sum of the Parts" (SOTP) approach is gaining traction through midstream deconsolidation and asset optimization. The completion of multiple strategic transactions, including the H2O Midstream acquisition and W2W pipeline dropdown, positions DKL for stronger third-party cash flows. However, the core refining business faces significant headwinds from compressed margins.
The balance sheet shows a complex picture: while consolidated debt is high at
-
Net loss of
or$76.8 million per share, adjusted net loss of$(1.20) or$93.0 million per share, adjusted EBITDA of$(1.45) $70.6 million -
During 3Q' 2024, we successfully closed previously announced transactions to further our SOTP strategy:
-
Sold our retail assets for proceeds of
$390 million - DK & Delek Logistics(DKL) executed the intercompany amendments and extensions
-
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
-
Sold our retail assets for proceeds of
-
Announced the Enterprise Optimization Plan ("EOP") expected to increase overall profitability by at least
$100 million -
DKL announced another record quarterly EBITDA of
$106.1 million -
Paid
of dividends and announced regular quarterly dividend of$16.4 million per share in October$0.25 5
“We are excited about the significant progress we have made on i. our 'Sum of the Parts' efforts, ii. Operational improvements & iii. Cost reductions,” said Avigal Soreq, President and Chief Executive Officer of Delek US. “After closing the transactions we announced with our last earnings call, we are currently focused on maximizing the value of the third party businesses at Delek Logistics as a next step in our 'Sum of the Parts' efforts. We are also working hard to increase the overall profitability and free cash flow generation power of our company through our Enterprise Optimization Plan (EOP).”
"Looking ahead, we will continue to execute on our priorities of running safe and reliable operations, and making further progress on midstream deconsolidation, our EOP efforts, and delivering shareholder value while maintaining our financial strength and flexibility,” Soreq concluded.
Delek US Results
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
($ in millions, except per share data) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net (loss) income attributable to Delek US |
|
$ |
(76.8 |
) |
|
$ |
128.7 |
|
$ |
(146.6 |
) |
|
$ |
184.7 |
||
Total diluted (loss) income per share |
|
$ |
(1.20 |
) |
|
$ |
1.97 |
|
|
$ |
(2.29 |
) |
|
$ |
2.78 |
|
Adjusted net (loss) income |
|
$ |
(93.0 |
) |
|
$ |
131.9 |
|
|
$ |
(178.5 |
) |
|
$ |
289.8 |
|
Adjusted net (loss) income per share |
|
$ |
(1.45 |
) |
|
$ |
2.02 |
|
|
$ |
(2.78 |
) |
|
$ |
4.37 |
|
Adjusted EBITDA |
|
$ |
70.6 |
|
|
$ |
345.1 |
|
|
$ |
336.8 |
|
|
$ |
889.1 |
|
Refining Segment
The refining segment Adjusted EBITDA was
Logistics Segment
The logistics segment Adjusted EBITDA in the third quarter 2024 was
Corporate and Other Activity
Adjusted EBITDA from Corporate, Other and Eliminations was a loss of
Shareholder Distributions
On October 30, 2024, the Board of Directors approved the regular quarterly dividend of
Liquidity
As of September 30, 2024, Delek US had a cash balance of
Third Quarter 2024 Results | Conference Call Information
Delek US will hold a conference call to discuss its third quarter 2024 results on Wednesday, November 6, 2024 at 9:00 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) third quarter 2024 earnings conference call that will be held on Wednesday, November 6, 2024 at 10:30 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
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
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
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
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
- 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
Delek US Holdings, Inc. |
||||||||
Condensed Consolidated Balance Sheets (Unaudited) |
||||||||
($ in millions, except share and per share data) |
||||||||
|
|
September 30, 2024 |
|
December 31, 2023 |
||||
ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
1,037.6 |
|
|
$ |
821.8 |
|
Accounts receivable, net |
|
|
561.6 |
|
|
|
783.7 |
|
Inventories, net of inventory valuation reserves |
|
|
915.0 |
|
|
|
941.2 |
|
Current assets of discontinued operations |
|
|
— |
|
|
|
41.5 |
|
Other current assets |
|
|
50.6 |
|
|
|
77.8 |
|
Total current assets |
|
|
2,564.8 |
|
|
|
2,666.0 |
|
Property, plant and equipment: |
|
|
|
|
||||
Property, plant and equipment |
|
|
4,790.7 |
|
|
|
4,460.3 |
|
Less: accumulated depreciation |
|
|
(1,961.7 |
) |
|
|
(1,764.0 |
) |
Property, plant and equipment, net |
|
|
2,829.0 |
|
|
|
2,696.3 |
|
Operating lease right-of-use assets |
|
|
98.8 |
|
|
|
121.5 |
|
Goodwill |
|
|
687.5 |
|
|
|
687.5 |
|
Other intangibles, net |
|
|
328.6 |
|
|
|
287.7 |
|
Equity method investments |
|
|
408.7 |
|
|
|
360.7 |
|
Non-current assets of discontinued operations |
|
|
— |
|
|
|
228.1 |
|
Other non-current assets |
|
|
112.9 |
|
|
|
124.0 |
|
Total assets |
|
$ |
7,030.3 |
|
|
$ |
7,171.8 |
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
1,713.6 |
|
|
$ |
1,814.3 |
|
Current portion of long-term debt |
|
|
9.5 |
|
|
|
44.5 |
|
Current portion of obligation under Inventory Intermediation Agreement |
|
|
3.6 |
|
|
|
0.4 |
|
Current portion of operating lease liabilities |
|
|
45.6 |
|
|
|
50.1 |
|
Current liabilities of discontinued operations |
|
|
— |
|
|
|
11.5 |
|
Accrued expenses and other current liabilities |
|
|
694.7 |
|
|
|
764.3 |
|
Total current liabilities |
|
|
2,467.0 |
|
|
|
2,685.1 |
|
Non-current liabilities: |
|
|
|
|
||||
Long-term debt, net of current portion |
|
|
2,779.9 |
|
|
|
2,555.3 |
|
Obligation under Inventory Intermediation Agreement |
|
|
385.3 |
|
|
|
407.2 |
|
Environmental liabilities, net of current portion |
|
|
33.7 |
|
|
|
110.9 |
|
Asset retirement obligations |
|
|
24.4 |
|
|
|
36.4 |
|
Deferred tax liabilities |
|
|
243.9 |
|
|
|
264.1 |
|
Operating lease liabilities, net of current portion |
|
|
63.7 |
|
|
|
85.7 |
|
Non-current liabilities of discontinued operations |
|
|
— |
|
|
|
34.3 |
|
Other non-current liabilities |
|
|
87.0 |
|
|
|
33.1 |
|
Total non-current liabilities |
|
|
3,617.9 |
|
|
|
3,527.0 |
|
Redeemable non-controlling interest |
|
|
70.0 |
|
|
|
— |
|
Stockholders’ equity: |
|
|
|
|
||||
Preferred stock, |
|
|
— |
|
|
|
— |
|
Common stock, |
|
|
0.8 |
|
|
|
0.8 |
|
Additional paid-in capital |
|
|
1,172.7 |
|
|
|
1,113.6 |
|
Accumulated other comprehensive loss |
|
|
(4.8 |
) |
|
|
(4.8 |
) |
Treasury stock, 17,575,527 shares, at cost, at September 30, 2024 and December 31, 2023, respectively |
|
|
(694.1 |
) |
|
|
(694.1 |
) |
Retained earnings |
|
|
228.5 |
|
|
|
430.0 |
|
Non-controlling interests in subsidiaries |
|
|
172.3 |
|
|
|
114.2 |
|
Total stockholders’ equity |
|
|
875.4 |
|
|
|
959.7 |
|
Total liabilities, redeemable non-controlling interest and stockholders’ equity |
|
$ |
7,030.3 |
|
|
$ |
7,171.8 |
|
|
Delek US Holdings, Inc. | ||||||||||||||||
Condensed Consolidated Statements of Income (Unaudited) |
||||||||||||||||
($ in millions, except share and per share data) |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net revenues |
|
$ |
3,042.4 |
|
|
$ |
4,628.8 |
|
|
$ |
9,478.5 |
|
|
$ |
12,525.1 |
|
Cost of sales: |
|
|
|
|
|
|
|
|
||||||||
Cost of materials and other |
|
|
2,788.7 |
|
|
|
4,049.4 |
|
|
|
8,547.1 |
|
|
|
11,111.2 |
|
Operating expenses (excluding depreciation and amortization presented below) |
|
|
181.4 |
|
|
|
217.7 |
|
|
|
580.3 |
|
|
|
577.2 |
|
Depreciation and amortization |
|
|
92.5 |
|
|
|
83.7 |
|
|
|
259.6 |
|
|
|
243.1 |
|
Total cost of sales |
|
|
3,062.6 |
|
|
|
4,350.8 |
|
|
|
9,387.0 |
|
|
|
11,931.5 |
|
Operating expenses related to wholesale business (excluding depreciation and amortization presented below) |
|
|
3.7 |
|
|
|
(3.7 |
) |
|
|
5.7 |
|
|
|
3.9 |
|
General and administrative expenses |
|
|
70.4 |
|
|
|
67.7 |
|
|
|
191.6 |
|
|
|
208.0 |
|
Depreciation and amortization |
|
|
5.6 |
|
|
|
4.0 |
|
|
|
18.6 |
|
|
|
12.1 |
|
Asset impairment |
|
|
9.2 |
|
|
|
— |
|
|
|
31.3 |
|
|
|
— |
|
Other operating expense (income), net |
|
|
12.8 |
|
|
|
(2.1 |
) |
|
|
(67.6 |
) |
|
|
(19.0 |
) |
Total operating costs and expenses |
|
|
3,164.3 |
|
|
|
4,416.7 |
|
|
|
9,566.6 |
|
|
|
12,136.5 |
|
Operating (loss) income |
|
|
(121.9 |
) |
|
|
212.1 |
|
|
|
(88.1 |
) |
|
|
388.6 |
|
Interest expense, net |
|
|
78.8 |
|
|
|
82.4 |
|
|
|
244.1 |
|
|
|
239.1 |
|
Income from equity method investments |
|
|
(25.1 |
) |
|
|
(27.0 |
) |
|
|
(77.4 |
) |
|
|
(67.1 |
) |
Other (income) expense, net |
|
|
(0.5 |
) |
|
|
2.0 |
|
|
|
(1.1 |
) |
|
|
(4.6 |
) |
Total non-operating expense, net |
|
|
53.2 |
|
|
|
57.4 |
|
|
|
165.6 |
|
|
|
167.4 |
|
(Loss) income from continuing operations before income tax (benefit) expense |
|
|
(175.1 |
) |
|
|
154.7 |
|
|
|
(253.7 |
) |
|
|
221.2 |
|
Income tax (benefit) expense |
|
|
(40.3 |
) |
|
|
29.1 |
|
|
|
(56.7 |
) |
|
|
38.3 |
|
(Loss) income from continuing operations, net of tax |
|
|
(134.8 |
) |
|
|
125.6 |
|
|
|
(197.0 |
) |
|
|
182.9 |
|
Discontinued operations: |
|
|
|
|
|
|
|
|
||||||||
Income from discontinued operations, including gain on sale of discontinued operations |
|
|
95.4 |
|
|
|
12.9 |
|
|
|
107.8 |
|
|
|
29.1 |
|
Income tax expense |
|
|
28.1 |
|
|
|
2.4 |
|
|
|
29.6 |
|
|
|
5.2 |
|
Income from discontinued operations, net of tax |
|
|
67.3 |
|
|
|
10.5 |
|
|
|
78.2 |
|
|
|
23.9 |
|
Net (loss) income |
|
|
(67.5 |
) |
|
|
136.1 |
|
|
|
(118.8 |
) |
|
|
206.8 |
|
Net income attributable to: |
|
|
|
|
|
|
|
|
||||||||
Non-controlling interests |
|
|
9.3 |
|
|
|
7.4 |
|
|
|
27.8 |
|
|
|
22.1 |
|
Net (loss) income attributable to Delek |
|
$ |
(76.8 |
) |
|
$ |
128.7 |
|
|
$ |
(146.6 |
) |
|
$ |
184.7 |
|
Basic (loss) income per share: |
|
|
|
|
|
|
|
|
||||||||
(Loss) income from continuing operations |
|
$ |
(2.25 |
) |
|
$ |
1.82 |
|
|
$ |
(3.51 |
) |
|
$ |
2.44 |
|
Income from discontinued operations |
|
|
1.05 |
|
|
|
0.16 |
|
|
$ |
1.22 |
|
|
$ |
0.36 |
|
Total basic (loss) income per share |
|
$ |
(1.20 |
) |
|
$ |
1.98 |
|
|
$ |
(2.29 |
) |
|
$ |
2.80 |
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted (loss) income per share: |
|
|
|
|
|
|
|
|
||||||||
(Loss) income from continuing operations |
|
$ |
(2.25 |
) |
|
$ |
1.81 |
|
|
$ |
(3.51 |
) |
|
$ |
2.42 |
|
Income from discontinued operations |
|
|
1.05 |
|
|
|
0.16 |
|
|
$ |
1.22 |
|
|
$ |
0.36 |
|
Total diluted (loss) income per share |
|
$ |
(1.20 |
) |
|
$ |
1.97 |
|
|
$ |
(2.29 |
) |
|
$ |
2.78 |
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
64,063,609 |
|
|
|
64,889,504 |
|
|
|
64,099,700 |
|
|
|
65,864,141 |
|
Diluted |
|
|
64,063,609 |
|
|
|
65,464,970 |
|
|
|
64,099,700 |
|
|
|
66,372,335 |
|
|
Delek US Holdings, Inc. | ||||||||||||||||
Condensed Cash Flow Data (Unaudited) |
||||||||||||||||
($ in millions) |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
||||||||
Cash (used in) provided by operating activities - continuing operations |
|
$ |
(22.1 |
) |
|
$ |
420.2 |
|
|
$ |
78.9 |
|
|
$ |
891.7 |
|
Cash provided by operating activities - discontinued operations |
|
|
0.5 |
|
|
|
12.4 |
|
|
|
17.8 |
|
|
|
31.1 |
|
Net cash (used in) provided by operating activities |
|
|
(21.6 |
) |
|
|
432.6 |
|
|
|
96.7 |
|
|
|
922.8 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
||||||||
Cash used in investing activities - continuing operations |
|
|
(298.4 |
) |
|
|
(50.5 |
) |
|
|
(387.4 |
) |
|
|
(320.6 |
) |
Cash provided by (used in) investing activities - discontinued operations |
|
|
376.8 |
|
|
|
(8.2 |
) |
|
|
361.7 |
|
|
|
(18.0 |
) |
Net cash provided by (used in) investing activities |
|
|
78.4 |
|
|
|
(58.7 |
) |
|
|
(25.7 |
) |
|
|
(338.6 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
||||||||
Cash provided by (used in) financing activities - continuing operations |
|
|
322.9 |
|
|
|
(293.8 |
) |
|
|
144.4 |
|
|
|
(523.8 |
) |
Net cash provided by (used in) financing activities |
|
|
322.9 |
|
|
|
(293.8 |
) |
|
|
144.4 |
|
|
|
(523.8 |
) |
Net increase in cash and cash equivalents |
|
|
379.7 |
|
|
|
80.1 |
|
|
|
215.4 |
|
|
|
60.4 |
|
Cash and cash equivalents at the beginning of the period |
|
|
657.9 |
|
|
|
821.6 |
|
|
|
822.2 |
|
|
|
841.3 |
|
Cash and cash equivalents at the end of the period |
|
|
1,037.6 |
|
|
|
901.7 |
|
|
|
1,037.6 |
|
|
|
901.7 |
|
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 |
|
$ |
1,037.6 |
|
|
$ |
901.3 |
|
|
$ |
1,037.6 |
|
|
$ |
901.3 |
|
|
Significant Transactions During the Quarter Impacting Results:
H20 Midstream Acquisition
On September 11, 2024, Delek Logistics completed the acquisition of
Retail
On September 30, 2024, Delek US closed the previously announced transaction to sell
Delek US and Delek Logistics Transactions
Wink to Webster Pipeline
On August 1, 2024, we purchased an additional
Amended and Extended Intercompany Agreements
On August 5, 2024, we also amended and extended expired, or soon to be expired, commercial agreements with subsidiaries of Delek Logistics under which the Delek Logistics subsidiaries provide various services, including crude oil gathering and crude oil, intermediate and refined products transportation and storage services, and marketing, terminalling and offloading services to us as well as entered into an amended and restated Omnibus Agreement with Delek Logistics. We incurred
As a result of these amendments, 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.
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 third quarter 2024, we recorded restructuring costs totaling
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.
Reconciliation of Net Income (Loss) Attributable to Delek US to Adjusted Net Income (Loss) |
||||||||||||||||
|
|
|
|
|
||||||||||||
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
$ in millions (unaudited) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
||||||||||||
Reported net (loss) income attributable to Delek US |
|
$ |
(76.8 |
) |
|
$ |
128.7 |
|
|
$ |
(146.6 |
) |
|
$ |
184.7 |
|
Adjusting items (1) |
|
|
|
|
|
|
|
|
||||||||
Inventory LCM valuation (benefit) loss |
|
|
0.2 |
|
|
|
3.4 |
|
|
|
(10.5 |
) |
|
|
(6.2 |
) |
Tax effect |
|
|
— |
|
|
|
(0.8 |
) |
|
|
2.4 |
|
|
|
1.4 |
|
Inventory LCM valuation (benefit) loss, net |
|
|
0.2 |
|
|
|
2.6 |
|
|
|
(8.1 |
) |
|
|
(4.8 |
) |
Other inventory impact |
|
|
25.8 |
|
|
|
(28.2 |
) |
|
|
39.0 |
|
|
|
145.4 |
|
Tax effect |
|
|
(5.8 |
) |
|
|
6.4 |
|
|
|
(8.8 |
) |
|
|
(32.7 |
) |
Other inventory impact, net (2) |
|
|
20.0 |
|
|
|
(21.8 |
) |
|
|
30.2 |
|
|
|
112.7 |
|
Business interruption insurance and settlement recoveries |
|
|
— |
|
|
|
(0.2 |
) |
|
|
(10.6 |
) |
|
|
(10.0 |
) |
Tax effect |
|
|
— |
|
|
|
0.1 |
|
|
|
2.4 |
|
|
|
2.3 |
|
Business interruption insurance and settlement recoveries, net |
|
|
— |
|
|
|
(0.1 |
) |
|
|
(8.2 |
) |
|
|
(7.7 |
) |
Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements |
|
|
(8.0 |
) |
|
|
17.4 |
|
|
|
1.1 |
|
|
|
(8.1 |
) |
Tax effect |
|
|
1.8 |
|
|
|
(3.9 |
) |
|
|
(0.2 |
) |
|
|
1.8 |
|
Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements, net |
|
|
(6.2 |
) |
|
|
13.5 |
|
|
|
0.9 |
|
|
|
(6.3 |
) |
Transaction related expenses |
|
|
20.9 |
|
|
|
— |
|
|
|
20.9 |
|
|
|
— |
|
Tax effect |
|
|
(4.7 |
) |
|
|
— |
|
|
|
(4.7 |
) |
|
|
— |
|
Transaction related expenses, net (2) |
|
|
16.2 |
|
|
|
— |
|
|
|
16.2 |
|
|
|
— |
|
Unrealized RINs hedging (gain) loss where the hedged item is not yet recognized in the financial statements |
|
|
(2.6 |
) |
|
|
— |
|
|
|
3.7 |
|
|
|
— |
|
Tax effect |
|
|
0.6 |
|
|
|
— |
|
|
|
(0.8 |
) |
|
|
— |
|
Unrealized RINs hedging (gain) loss where the hedged item is not yet recognized in the financial statements, net (3) |
|
|
(2.0 |
) |
|
|
— |
|
|
|
2.9 |
|
|
|
— |
|
Restructuring costs |
|
|
33.7 |
|
|
|
3.5 |
|
|
|
59.5 |
|
|
|
6.4 |
|
Tax effect |
|
|
(7.6 |
) |
|
|
(0.7 |
) |
|
|
(13.4 |
) |
|
|
(1.4 |
) |
Restructuring costs, net (2) |
|
|
26.1 |
|
|
|
2.8 |
|
|
|
46.1 |
|
|
|
5.0 |
|
|
|
|
— |
|
|
|
8.0 |
|
|
|
— |
|
|
|
8.0 |
|
Tax effect |
|
|
— |
|
|
|
(1.8 |
) |
|
|
— |
|
|
|
(1.8 |
) |
|
|
|
— |
|
|
|
6.2 |
|
|
|
— |
|
|
|
6.2 |
|
Property settlement |
|
|
— |
|
|
|
— |
|
|
|
(53.4 |
) |
|
|
— |
|
Tax effect |
|
|
— |
|
|
|
— |
|
|
|
12.0 |
|
|
|
— |
|
Property settlement, net |
|
|
— |
|
|
|
— |
|
|
|
(41.4 |
) |
|
|
— |
|
Gain on sale of Retail Stores |
|
|
(98.4 |
) |
|
|
— |
|
|
|
(98.4 |
) |
|
|
— |
|
Tax effect |
|
|
27.9 |
|
|
|
— |
|
|
|
27.9 |
|
|
|
— |
|
Gain on sale of Retail Stores, net (2) |
|
|
(70.5 |
) |
|
|
— |
|
|
|
(70.5 |
) |
|
|
— |
|
Total adjusting items (1) |
|
|
(16.2 |
) |
|
|
3.2 |
|
|
|
(31.9 |
) |
|
|
105.1 |
|
Adjusted net (loss) income |
|
$ |
(93.0 |
) |
|
$ |
131.9 |
|
|
$ |
(178.5 |
) |
|
$ |
289.8 |
|
(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 |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
$ per share (unaudited) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
||||||||||||
Reported diluted (loss) income per share |
|
$ |
(1.20 |
) |
|
$ |
1.97 |
|
|
$ |
(2.29 |
) |
|
$ |
2.78 |
|
Adjusting items, after tax (per share) (1) (2) |
|
|
|
|
|
|
|
|
||||||||
Net inventory LCM valuation (benefit) loss |
|
|
— |
|
|
|
0.04 |
|
|
|
(0.13 |
) |
|
|
(0.07 |
) |
Other inventory impact (3) |
|
|
0.31 |
|
|
|
(0.33 |
) |
|
|
0.47 |
|
|
|
1.70 |
|
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 |
|
|
(0.10 |
) |
|
|
0.21 |
|
|
|
0.01 |
|
|
|
(0.09 |
) |
Unrealized RINs hedging (gain) loss where the hedged item is not yet recognized in the financial statements (4) |
|
|
(0.03 |
) |
|
|
— |
|
|
|
0.05 |
|
|
|
— |
|
Transaction related expenses (3) |
|
|
0.25 |
|
|
|
— |
|
|
|
0.25 |
|
|
|
— |
|
Restructuring costs (3) |
|
|
0.41 |
|
|
|
0.04 |
|
|
|
0.73 |
|
|
|
0.08 |
|
|
|
|
— |
|
|
|
0.09 |
|
|
|
— |
|
|
|
0.09 |
|
Property settlement |
|
|
— |
|
|
|
— |
|
|
|
(0.65 |
) |
|
|
— |
|
Gain on sale of Retail Stores (3) |
|
|
(1.09 |
) |
|
|
— |
|
|
|
(1.09 |
) |
|
|
— |
|
Total adjusting items (1) |
|
|
(0.25 |
) |
|
|
0.05 |
|
|
|
(0.49 |
) |
|
|
1.59 |
|
Adjusted net (loss) income per share |
|
$ |
(1.45 |
) |
|
$ |
2.02 |
|
|
$ |
(2.78 |
) |
|
$ |
4.37 |
|
(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 September 30, |
|
Nine Months Ended September 30, |
||||||||||||
$ in millions (unaudited) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Reported net (loss) income attributable to Delek US |
|
$ |
(76.8 |
) |
|
$ |
128.7 |
|
|
$ |
(146.6 |
) |
|
$ |
184.7 |
|
Add: |
|
|
|
|
|
|
|
|
||||||||
Interest expense, net |
|
|
78.8 |
|
|
|
82.3 |
|
|
|
244.2 |
|
|
|
239.2 |
|
Income tax expense (benefit) |
|
|
(12.2 |
) |
|
|
31.5 |
|
|
|
(27.1 |
) |
|
|
43.5 |
|
Depreciation and amortization |
|
|
99.9 |
|
|
|
91.3 |
|
|
|
287.2 |
|
|
|
264.1 |
|
EBITDA attributable to Delek US |
|
|
89.7 |
|
|
|
333.8 |
|
|
|
357.7 |
|
|
|
731.5 |
|
Adjusting items |
|
|
|
|
|
|
|
|
||||||||
Net inventory LCM valuation (benefit) loss |
|
|
0.2 |
|
|
|
3.4 |
|
|
|
(10.5 |
) |
|
|
(6.2 |
) |
Other inventory impact (1) |
|
|
25.8 |
|
|
|
(28.2 |
) |
|
|
39.0 |
|
|
|
145.4 |
|
Business interruption insurance and settlement recoveries |
|
|
— |
|
|
|
(0.2 |
) |
|
|
(10.6 |
) |
|
|
(10.0 |
) |
Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements |
|
|
(8.0 |
) |
|
|
17.4 |
|
|
|
1.1 |
|
|
|
(8.1 |
) |
Unrealized RINs hedging (gain) loss where the hedged item is not yet recognized in the financial statements (2) |
|
|
(2.6 |
) |
|
|
— |
|
|
|
3.7 |
|
|
|
— |
|
Transaction related expenses (1) |
|
|
20.9 |
|
|
|
— |
|
|
|
20.9 |
|
|
|
— |
|
Restructuring costs (1) |
|
|
33.7 |
|
|
|
3.5 |
|
|
|
59.5 |
|
|
|
6.4 |
|
|
|
|
— |
|
|
|
8.0 |
|
|
|
— |
|
|
|
8.0 |
|
Property settlement |
|
|
— |
|
|
|
— |
|
|
|
(53.4 |
) |
|
|
— |
|
Gain on sale of Retail Stores (1) |
|
|
(98.4 |
) |
|
|
— |
|
|
|
(98.4 |
) |
|
|
— |
|
Net income attributable to non-controlling interest |
|
|
9.3 |
|
|
|
7.4 |
|
|
|
27.8 |
|
|
|
22.1 |
|
Total Adjusting items |
|
|
(19.1 |
) |
|
|
11.3 |
|
|
|
(20.9 |
) |
|
|
157.6 |
|
Adjusted EBITDA |
|
$ |
70.6 |
|
|
$ |
345.1 |
|
|
$ |
336.8 |
|
|
$ |
889.1 |
|
(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 September 30, |
|
Nine Months Ended September 30, |
||||||||||||
$ in millions (unaudited) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Reported loss (income) from continuing operations, net of tax |
|
$ |
(134.8 |
) |
|
$ |
125.6 |
|
|
$ |
(197.0 |
) |
|
$ |
182.9 |
|
Add: |
|
|
|
|
|
|
|
|
||||||||
Interest expense, net |
|
|
78.8 |
|
|
|
82.4 |
|
|
|
244.1 |
|
|
|
239.1 |
|
Income tax expense (benefit) |
|
|
(40.3 |
) |
|
|
29.1 |
|
|
|
(56.7 |
) |
|
|
38.3 |
|
Depreciation and amortization |
|
|
98.1 |
|
|
|
87.7 |
|
|
|
278.2 |
|
|
|
255.2 |
|
EBITDA attributable to Delek US |
|
|
1.8 |
|
|
|
324.8 |
|
|
|
268.6 |
|
|
|
715.5 |
|
Adjusting items |
|
|
|
|
|
|
|
|
||||||||
Net inventory LCM valuation (benefit) loss |
|
|
0.2 |
|
|
|
3.4 |
|
|
|
(10.5 |
) |
|
|
(6.2 |
) |
Other inventory impact (1) |
|
|
25.8 |
|
|
|
(28.2 |
) |
|
|
39.0 |
|
|
|
145.4 |
|
Business interruption insurance and settlement recoveries |
|
|
— |
|
|
|
(0.2 |
) |
|
|
(10.6 |
) |
|
|
(10.0 |
) |
Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements |
|
|
(8.0 |
) |
|
|
17.4 |
|
|
|
1.1 |
|
|
|
(8.1 |
) |
Unrealized RINs hedging (gain) loss where the hedged item is not yet recognized in the financial statements (2) |
|
|
(2.6 |
) |
|
|
— |
|
|
|
3.7 |
|
|
|
— |
|
Transaction related expenses (1) |
|
|
11.5 |
|
|
|
— |
|
|
|
11.5 |
|
|
|
— |
|
Restructuring costs (1) |
|
|
33.7 |
|
|
|
3.5 |
|
|
|
59.5 |
|
|
|
6.4 |
|
|
|
|
— |
|
|
|
8.0 |
|
|
|
— |
|
|
|
8.0 |
|
Property settlement |
|
|
— |
|
|
|
— |
|
|
|
(53.4 |
) |
|
|
— |
|
Total Adjusting items |
|
|
60.6 |
|
|
|
3.9 |
|
|
|
40.3 |
|
|
|
135.5 |
|
Adjusted EBITDA from continuing operations |
|
$ |
62.4 |
|
|
$ |
328.7 |
|
|
$ |
308.9 |
|
|
$ |
851.0 |
|
(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 Income From Discontinued Operations, Net of Tax to Adjusted EBITDA from Discontinued Operations | ||||||||||||||||
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
$ in millions (unaudited) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Reported income from discontinued operations, net of tax |
|
$ |
67.3 |
|
|
$ |
10.5 |
|
|
$ |
78.2 |
|
|
$ |
23.9 |
|
Add: |
|
|
|
|
|
|
|
|
||||||||
Interest expense (income), net |
|
|
— |
|
|
|
(0.1 |
) |
|
|
0.1 |
|
|
|
0.1 |
|
Income tax expense |
|
|
28.1 |
|
|
|
2.4 |
|
|
|
29.6 |
|
|
|
5.2 |
|
Depreciation and amortization |
|
|
1.8 |
|
|
|
3.6 |
|
|
|
9.0 |
|
|
|
8.9 |
|
EBITDA attributable to discontinued operations |
|
|
97.2 |
|
|
|
16.4 |
|
|
|
116.9 |
|
|
|
38.1 |
|
Adjusting items |
|
|
|
|
|
|
|
|
||||||||
Transaction costs (1) |
|
|
9.4 |
|
|
|
— |
|
|
|
9.4 |
|
|
|
— |
|
Gain on sale of Retail Stores (1) |
|
|
(98.4 |
) |
|
|
— |
|
|
|
(98.4 |
) |
|
|
— |
|
Total Adjusting items |
|
|
(89.0 |
) |
|
|
— |
|
|
|
(89.0 |
) |
|
|
— |
|
Adjusted EBITDA from discontinued operations |
|
$ |
8.2 |
|
|
$ |
16.4 |
|
|
$ |
27.9 |
|
|
$ |
38.1 |
|
(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 September 30, 2024 |
||||||||||||||
$ in millions (unaudited) |
|
Refining |
|
Logistics |
|
Corporate,
|
|
Consolidated |
||||||||
Segment EBITDA Attributable to Delek US |
|
$ |
12.8 |
|
|
$ |
68.6 |
|
$ |
(79.6 |
) |
|
$ |
1.8 |
|
|
Adjusting items |
|
|
|
|
|
|
|
|
||||||||
Net inventory LCM valuation (benefit) loss |
|
|
0.2 |
|
|
|
— |
|
|
|
— |
|
|
|
0.2 |
|
Other inventory impact (1) |
|
|
25.8 |
|
|
|
— |
|
|
|
— |
|
|
|
25.8 |
|
Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements |
|
|
(8.0 |
) |
|
|
— |
|
|
|
— |
|
|
|
(8.0 |
) |
Unrealized RINs hedging (gain) loss where the hedged item is not yet recognized in the financial statements (2) |
|
|
(2.6 |
) |
|
|
— |
|
|
|
— |
|
|
|
(2.6 |
) |
Transaction related expenses (1) |
|
|
— |
|
|
|
8.6 |
|
|
|
2.9 |
|
|
|
11.5 |
|
Restructuring costs (1) |
|
|
14.1 |
|
|
|
— |
|
|
|
19.6 |
|
|
|
33.7 |
|
Intercompany lease impacts (1) |
|
|
(32.1 |
) |
|
|
28.9 |
|
|
|
3.2 |
|
|
|
— |
|
Total Adjusting items |
|
|
(2.6 |
) |
|
|
37.5 |
|
|
|
25.7 |
|
|
|
60.6 |
|
Adjusted Segment EBITDA |
|
$ |
10.2 |
|
|
$ |
106.1 |
|
|
$ |
(53.9 |
) |
|
$ |
62.4 |
|
|
|
Three Months Ended September 30, 2023 |
||||||||||||||
$ in millions (unaudited) |
|
Refining (3) |
|
Logistics |
|
Corporate,
|
|
Consolidated |
||||||||
Segment EBITDA Attributable to Delek US |
|
$ |
295.7 |
|
|
$ |
96.5 |
|
$ |
(67.4 |
) |
|
$ |
324.8 |
|
|
Adjusting items |
|
|
|
|
|
|
|
|
||||||||
Net inventory LCM valuation (benefit) loss |
|
|
3.4 |
|
|
|
— |
|
|
|
— |
|
|
|
3.4 |
|
Other inventory impact (1) |
|
|
(28.2 |
) |
|
|
— |
|
|
|
— |
|
|
|
(28.2 |
) |
Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements |
|
|
17.4 |
|
|
|
— |
|
|
|
— |
|
|
|
17.4 |
|
Restructuring costs |
|
|
— |
|
|
|
— |
|
|
|
3.5 |
|
|
|
3.5 |
|
Business interruption insurance recoveries |
|
|
(0.2 |
) |
|
|
— |
|
|
|
— |
|
|
|
(0.2 |
) |
|
|
|
8.0 |
|
|
|
— |
|
|
|
— |
|
|
|
8.0 |
|
Total Adjusting items |
|
|
0.4 |
|
|
|
— |
|
|
|
3.5 |
|
|
|
3.9 |
|
Adjusted Segment EBITDA |
|
$ |
296.1 |
|
|
$ |
96.5 |
|
|
$ |
(63.9 |
) |
|
$ |
328.7 |
|
Reconciliation of Segment EBITDA Attributable to Delek US to Adjusted Segment EBITDA |
||||||||||||||||
|
|
Nine Months Ended September 30, 2024 |
||||||||||||||
$ in millions (unaudited) |
|
Refining (3) |
|
Logistics |
|
Corporate,
|
|
Consolidated |
||||||||
Segment EBITDA Attributable to Delek US |
|
$ |
135.2 |
|
|
$ |
268.9 |
|
$ |
(135.5 |
) |
|
$ |
268.6 |
|
|
Adjusting items |
|
|
|
|
|
|
|
|
||||||||
Net inventory LCM valuation (benefit) loss |
|
|
(10.5 |
) |
|
|
— |
|
|
|
— |
|
|
|
(10.5 |
) |
Other inventory impact (1) |
|
|
39.0 |
|
|
|
— |
|
|
|
— |
|
|
|
39.0 |
|
Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements |
|
|
1.1 |
|
|
|
— |
|
|
|
— |
|
|
|
1.1 |
|
Unrealized RINs hedging (gain) loss where the hedged item is not yet recognized in the financial statements (2) |
|
|
3.7 |
|
|
|
— |
|
|
|
— |
|
|
|
3.7 |
|
Restructuring costs (1) |
|
|
36.6 |
|
|
|
— |
|
|
|
22.9 |
|
|
|
59.5 |
|
Transaction related expenses (1) |
|
|
— |
|
|
|
8.6 |
|
|
|
2.9 |
|
|
|
11.5 |
|
Business interruption settlement recoveries |
|
|
(10.6 |
) |
|
|
— |
|
|
|
— |
|
|
|
(10.6 |
) |
Property settlement |
|
|
— |
|
|
|
— |
|
|
|
(53.4 |
) |
|
|
(53.4 |
) |
Intercompany lease impacts (1) |
|
|
(32.1 |
) |
|
|
28.9 |
|
|
|
3.2 |
|
|
|
— |
|
Total Adjusting items |
|
|
27.2 |
|
|
|
37.5 |
|
|
|
(24.4 |
) |
|
|
40.3 |
|
Adjusted Segment EBITDA |
|
$ |
162.4 |
|
|
$ |
306.4 |
|
|
$ |
(159.9 |
) |
|
$ |
308.9 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Nine Months Ended September 30, 2023 |
||||||||||||||
$ in millions (unaudited) |
|
Refining (3) |
|
Logistics |
|
Corporate,
|
|
Consolidated |
||||||||
Segment EBITDA Attributable to Delek US |
|
$ |
613.0 |
|
|
$ |
278.8 |
|
$ |
(176.3 |
) |
|
$ |
715.5 |
|
|
Adjusting items |
|
|
|
|
|
|
|
|
||||||||
Net inventory LCM valuation (benefit) loss |
|
|
(6.2 |
) |
|
|
— |
|
|
|
— |
|
|
|
(6.2 |
) |
Other inventory impact (1) |
|
|
145.4 |
|
|
|
— |
|
|
|
— |
|
|
|
145.4 |
|
Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements |
|
|
(8.1 |
) |
|
|
— |
|
|
|
— |
|
|
|
(8.1 |
) |
Restructuring costs |
|
|
— |
|
|
|
— |
|
|
|
6.4 |
|
|
|
6.4 |
|
Business interruption insurance recoveries |
|
|
(10.0 |
) |
|
|
— |
|
|
|
— |
|
|
|
(10.0 |
) |
|
|
|
8.0 |
|
|
|
— |
|
|
|
— |
|
|
|
8.0 |
|
Total Adjusting items |
|
|
129.1 |
|
|
|
— |
|
|
|
6.4 |
|
|
|
135.5 |
|
Adjusted Segment EBITDA |
|
$ |
742.1 |
|
|
$ |
278.8 |
|
|
$ |
(169.9 |
) |
|
$ |
851.0 |
|
(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 |
|
Refining Segment Selected Financial Information |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Total Refining Segment |
|
(Unaudited) |
|
(Unaudited) |
||||||||||||
Days in period |
|
|
92 |
|
|
|
92 |
|
|
|
274 |
|
|
|
273 |
|
Total sales volume - refined product (average barrels per day ("bpd")) (1) |
|
|
309,175 |
|
|
|
307,626 |
|
|
|
312,075 |
|
|
|
295,141 |
|
Total production (average bpd) |
|
|
303,882 |
|
|
|
303,399 |
|
|
|
302,858 |
|
|
|
287,375 |
|
|
|
|
|
|
|
|
|
|
||||||||
Crude oil |
|
|
295,350 |
|
|
|
294,726 |
|
|
|
291,042 |
|
|
|
275,310 |
|
Other feedstocks |
|
|
12,245 |
|
|
|
11,222 |
|
|
|
15,727 |
|
|
|
14,815 |
|
Total throughput (average bpd) |
|
|
307,595 |
|
|
|
305,948 |
|
|
|
306,769 |
|
|
|
290,125 |
|
|
|
|
|
|
|
|
|
|
||||||||
Total refining production margin per bbl total throughput |
|
$ |
4.88 |
|
|
$ |
16.01 |
|
|
$ |
8.09 |
|
|
$ |
13.86 |
|
Total refining operating expenses per bbl total throughput |
|
$ |
5.12 |
|
|
$ |
5.47 |
|
|
$ |
5.34 |
|
|
$ |
5.50 |
|
|
|
|
|
|
|
|
|
|
||||||||
Total refining production margin ($ in millions) |
|
$ |
138.1 |
|
|
$ |
450.5 |
|
|
$ |
680.3 |
|
|
$ |
1,097.7 |
|
Supply, marketing and other ($ millions) (2) |
|
|
10.7 |
|
|
|
(1.2 |
) |
|
|
(88.4 |
) |
|
|
95.0 |
|
Total adjusted refining margin ($ in millions) |
|
$ |
148.8 |
|
|
$ |
449.3 |
|
|
$ |
591.9 |
|
|
$ |
1,192.7 |
|
|
|
|
|
|
|
|
|
|
||||||||
Total crude slate details |
|
|
|
|
|
|
|
|
||||||||
Total crude slate: (% based on amount received in period) |
|
|
|
|
|
|
|
|
||||||||
WTI crude oil |
|
|
69.4 |
% |
|
|
73.4 |
% |
|
|
70.9 |
% |
|
|
73.3 |
% |
Gulf Coast Sweet crude |
|
|
8.8 |
% |
|
|
3.3 |
% |
|
|
7.5 |
% |
|
|
4.0 |
% |
Local |
|
|
3.2 |
% |
|
|
4.0 |
% |
|
|
3.3 |
% |
|
|
4.1 |
% |
Other |
|
|
18.6 |
% |
|
|
19.3 |
% |
|
|
18.3 |
% |
|
|
18.6 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Crude utilization (% based on nameplate capacity) (4) |
|
|
97.8 |
% |
|
|
97.6 |
% |
|
|
96.4 |
% |
|
|
91.2 |
% |
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Days in period |
|
|
92 |
|
|
|
92 |
|
|
|
274 |
|
|
|
273 |
|
Products manufactured (average bpd): |
|
|
|
|
|
|
|
|
||||||||
Gasoline |
|
|
35,962 |
|
|
|
35,615 |
|
|
|
36,620 |
|
|
|
30,750 |
|
Diesel/Jet |
|
|
33,647 |
|
|
|
34,620 |
|
|
|
32,490 |
|
|
|
26,976 |
|
Petrochemicals, LPG, NGLs |
|
|
3,429 |
|
|
|
3,429 |
|
|
|
2,432 |
|
|
|
2,409 |
|
Other |
|
|
93 |
|
|
|
1,959 |
|
|
|
991 |
|
|
|
1,856 |
|
Total production |
|
|
73,131 |
|
|
|
75,623 |
|
|
|
72,533 |
|
|
|
61,991 |
|
Throughput (average bpd): |
|
|
|
|
|
|
|
|
||||||||
Crude oil |
|
|
73,385 |
|
|
|
74,877 |
|
|
|
71,671 |
|
|
|
59,379 |
|
Other feedstocks |
|
|
1,613 |
|
|
|
1,118 |
|
|
|
2,641 |
|
|
|
3,243 |
|
Total throughput |
|
|
74,998 |
|
|
|
75,995 |
|
|
|
74,312 |
|
|
|
62,622 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
$ |
51.6 |
|
|
$ |
165.4 |
|
|
$ |
224.6 |
|
|
$ |
329.7 |
|
Per barrel of throughput: |
|
|
|
|
|
|
|
|
||||||||
|
|
$ |
7.48 |
|
|
$ |
23.66 |
|
|
$ |
11.03 |
|
|
$ |
19.29 |
|
Operating expenses |
|
$ |
4.61 |
|
|
$ |
4.74 |
|
|
$ |
4.90 |
|
|
$ |
5.06 |
|
Crude Slate: (% based on amount received in period) |
|
|
|
|
|
|
|
|
||||||||
WTI crude oil |
|
|
79.2 |
% |
|
|
76.8 |
% |
|
|
80.6 |
% |
|
|
78.1 |
% |
|
|
|
19.6 |
% |
|
|
23.2 |
% |
|
|
19.0 |
% |
|
|
21.9 |
% |
Other |
|
|
1.2 |
% |
|
|
— |
% |
|
|
0.4 |
% |
|
|
— |
% |
|
|
|
|
|
|
|
|
|
||||||||
Capture rate (3) |
|
|
47.8 |
% |
|
|
73.0 |
% |
|
|
58.4 |
% |
|
|
64.0 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Days in period |
|
|
92 |
|
|
|
92 |
|
|
|
274 |
|
|
|
273 |
|
Products manufactured (average bpd): |
|
|
|
|
|
|
|
|
||||||||
Gasoline |
|
|
34,887 |
|
|
|
39,361 |
|
|
|
38,350 |
|
|
|
37,213 |
|
Diesel |
|
|
29,854 |
|
|
|
31,927 |
|
|
|
30,587 |
|
|
|
29,211 |
|
Petrochemicals, LPG, NGLs |
|
|
1,317 |
|
|
|
1,875 |
|
|
|
1,301 |
|
|
|
1,564 |
|
Asphalt |
|
|
9,046 |
|
|
|
7,893 |
|
|
|
8,849 |
|
|
|
7,418 |
|
Other |
|
|
993 |
|
|
|
1,168 |
|
|
|
1,291 |
|
|
|
1,034 |
|
Total production |
|
|
76,097 |
|
|
|
82,224 |
|
|
|
80,378 |
|
|
|
76,440 |
|
Throughput (average bpd): |
|
|
|
|
|
|
|
|
||||||||
Crude oil |
|
|
75,344 |
|
|
|
81,671 |
|
|
|
79,597 |
|
|
|
75,286 |
|
Other feedstocks |
|
|
2,674 |
|
|
|
2,611 |
|
|
|
2,500 |
|
|
|
3,053 |
|
Total throughput |
|
|
78,018 |
|
|
|
84,282 |
|
|
|
82,097 |
|
|
|
78,339 |
|
Refining Segment Selected Financial Information (continued) |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
$ |
4.7 |
|
|
$ |
97.5 |
|
|
$ |
97.0 |
|
|
$ |
231.0 |
|
Per barrel of throughput: |
|
|
|
|
|
|
|
|
||||||||
|
|
$ |
0.66 |
|
|
$ |
12.57 |
|
|
$ |
4.31 |
|
|
$ |
10.80 |
|
Operating expenses |
|
$ |
5.01 |
|
|
$ |
4.36 |
|
|
$ |
4.61 |
|
|
$ |
4.60 |
|
Crude Slate: (% based on amount received in period) |
|
|
|
|
|
|
|
|
||||||||
WTI crude oil |
|
|
68.3 |
% |
|
|
71.9 |
% |
|
|
67.0 |
% |
|
|
67.6 |
% |
Local |
|
|
12.4 |
% |
|
|
13.4 |
% |
|
|
11.9 |
% |
|
|
14.8 |
% |
Other |
|
|
19.3 |
% |
|
|
14.7 |
% |
|
|
21.1 |
% |
|
|
17.6 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Capture rate (3) |
|
|
4.2 |
% |
|
|
38.8 |
% |
|
|
22.8 |
% |
|
|
35.8 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Days in period |
|
|
92 |
|
|
|
92 |
|
|
|
274 |
|
|
|
273 |
|
Products manufactured (average bpd): |
|
|
|
|
|
|
|
|
||||||||
Gasoline |
|
|
34,510 |
|
|
|
29,274 |
|
|
|
32,925 |
|
|
|
33,755 |
|
Diesel/Jet |
|
|
26,303 |
|
|
|
23,607 |
|
|
|
25,282 |
|
|
|
23,333 |
|
Petrochemicals, LPG, NGLs |
|
|
5,160 |
|
|
|
3,723 |
|
|
|
4,630 |
|
|
|
3,299 |
|
Asphalt |
|
|
3,176 |
|
|
|
2,220 |
|
|
|
2,703 |
|
|
|
1,833 |
|
Other |
|
|
3,290 |
|
|
|
5,272 |
|
|
|
4,290 |
|
|
|
3,283 |
|
Total production |
|
|
72,439 |
|
|
|
64,096 |
|
|
|
69,830 |
|
|
|
65,503 |
|
Throughput (average bpd): |
|
|
|
|
|
|
|
|
||||||||
Crude oil |
|
|
68,746 |
|
|
|
61,046 |
|
|
|
65,856 |
|
|
|
62,733 |
|
Other feedstocks |
|
|
3,817 |
|
|
|
3,865 |
|
|
|
4,638 |
|
|
|
3,834 |
|
Total throughput |
|
|
72,563 |
|
|
|
64,911 |
|
|
|
70,494 |
|
|
|
66,567 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
$ |
45.6 |
|
|
$ |
95.1 |
|
|
$ |
181.6 |
|
|
$ |
280.3 |
|
Per barrel of throughput: |
|
|
|
|
|
|
|
|
||||||||
|
|
$ |
6.82 |
|
|
$ |
15.92 |
|
|
$ |
9.40 |
|
|
$ |
15.43 |
|
Operating expenses |
|
$ |
6.08 |
|
|
$ |
8.37 |
|
|
$ |
6.78 |
|
|
$ |
7.61 |
|
Crude Slate: (% based on amount received in period) |
|
|
|
|
|
|
|
|
||||||||
WTI crude oil |
|
|
68.9 |
% |
|
|
64.3 |
% |
|
|
70.5 |
% |
|
|
68.8 |
% |
WTS crude oil |
|
|
31.1 |
% |
|
|
35.7 |
% |
|
|
29.5 |
% |
|
|
31.2 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Capture rate (3) |
|
|
44.7 |
% |
|
|
50.9 |
% |
|
|
51.5 |
% |
|
|
52.6 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Days in period |
|
|
92 |
|
|
|
92 |
|
|
|
274 |
|
|
|
273 |
|
Products manufactured (average bpd): |
|
|
|
|
|
|
|
|
||||||||
Gasoline |
|
|
40,842 |
|
|
|
38,361 |
|
|
|
39,557 |
|
|
|
40,454 |
|
Diesel/Jet |
|
|
32,879 |
|
|
|
30,653 |
|
|
|
31,203 |
|
|
|
31,794 |
|
Heavy oils |
|
|
1,559 |
|
|
|
5,461 |
|
|
|
1,773 |
|
|
|
4,239 |
|
Petrochemicals, LPG, NGLs |
|
|
6,332 |
|
|
|
6,079 |
|
|
|
5,665 |
|
|
|
6,510 |
|
Other |
|
|
602 |
|
|
|
902 |
|
|
|
1,919 |
|
|
|
446 |
|
Total production |
|
|
82,214 |
|
|
|
81,456 |
|
|
|
80,117 |
|
|
|
83,443 |
|
Throughput (average bpd): |
|
|
|
|
|
|
|
|
||||||||
Crude oil |
|
|
77,875 |
|
|
|
77,132 |
|
|
|
73,918 |
|
|
|
77,912 |
|
Other feedstocks |
|
|
4,141 |
|
|
|
3,628 |
|
|
|
5,948 |
|
|
|
4,686 |
|
Total throughput |
|
|
82,016 |
|
|
|
80,760 |
|
|
|
79,866 |
|
|
|
82,598 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
$ |
36.2 |
|
|
$ |
92.5 |
|
|
$ |
177.1 |
|
|
$ |
256.6 |
|
Per barrel of throughput: |
|
|
|
|
|
|
|
|
||||||||
|
|
$ |
4.80 |
|
|
$ |
12.45 |
|
|
$ |
8.09 |
|
|
$ |
11.38 |
|
Operating expenses |
|
$ |
4.82 |
|
|
$ |
5.00 |
|
|
$ |
5.22 |
|
|
$ |
5.00 |
|
Crude Slate: (% based on amount received in period) |
|
|
|
|
|
|
|
|
||||||||
WTI Crude |
|
|
61.6 |
% |
|
|
79.8 |
% |
|
|
66.1 |
% |
|
|
79.0 |
% |
Gulf Coast Sweet Crude |
|
|
32.8 |
% |
|
|
11.2 |
% |
|
|
28.6 |
% |
|
|
13.5 |
% |
Other |
|
|
5.6 |
% |
|
|
9.0 |
% |
|
|
5.3 |
% |
|
|
7.5 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Capture rate (3) |
|
|
42.0 |
% |
|
|
63.9 |
% |
|
|
55.3 |
% |
|
|
68.4 |
% |
(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 |
(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 September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
|
(Unaudited) |
|
(Unaudited) |
||||||||||||
Gathering & Processing: (average bpd) |
|
|
|
|
|
|
|
|
||||||||
Lion Pipeline System: |
|
|
|
|
|
|
|
|
||||||||
Crude pipelines (non-gathered) |
|
|
68,430 |
|
|
70,153 |
|
|
71,576 |
|
|
64,835 |
||||
Refined products pipelines |
|
|
55,283 |
|
|
|
63,991 |
|
|
|
59,681 |
|
|
|
54,686 |
|
SALA Gathering System |
|
|
13,886 |
|
|
|
14,774 |
|
|
|
12,113 |
|
|
|
13,935 |
|
East Texas Crude Logistics System |
|
|
35,891 |
|
|
|
36,298 |
|
|
|
26,319 |
|
|
|
29,928 |
|
Midland Gathering Assets |
|
|
185,179 |
|
|
|
248,443 |
|
|
|
201,796 |
|
|
|
230,907 |
|
Plains Connection System |
|
|
188,421 |
|
|
|
250,550 |
|
|
|
218,323 |
|
|
|
248,763 |
|
Delaware Gathering Assets: |
|
|
|
|
|
|
|
|
||||||||
Natural gas gathering and processing (Mcfd) (1) |
|
|
75,719 |
|
|
|
69,737 |
|
|
|
76,092 |
|
|
|
72,569 |
|
Crude oil gathering (average bpd) |
|
|
125,123 |
|
|
|
111,973 |
|
|
|
124,190 |
|
|
|
110,935 |
|
Water disposal and recycling (average bpd) |
|
|
123,856 |
|
|
|
99,158 |
|
|
|
120,360 |
|
|
|
104,920 |
|
Midland Water Gathering System: (2) |
|
|
|
|
|
|
|
|
||||||||
Water disposal and recycling (average bpd) |
|
|
100,335 |
|
|
|
— |
|
|
|
100,335 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
||||||||
Wholesale Marketing & Terminalling: |
|
|
|
|
|
|
|
|
||||||||
|
|
|
70,172 |
|
|
|
69,178 |
|
|
|
69,246 |
|
|
|
57,894 |
|
|
|
|
22,700 |
|
|
|
81,617 |
|
|
|
60,109 |
|
|
|
78,399 |
|
|
|
|
6,552 |
|
|
|
10,692 |
|
|
|
5,276 |
|
|
|
9,871 |
|
|
|
$ |
3.38 |
|
|
$ |
9.64 |
|
|
$ |
2.85 |
|
|
$ |
8.76 |
|
Terminalling throughputs (average bpd) (4) |
|
|
160,849 |
|
|
|
121,430 |
|
|
|
152,272 |
|
|
|
116,455 |
|
(1) |
Mcfd - average thousand cubic feet per day. |
(2) |
2024 volumes include volumes from September 11, 2024 through September 30, 2024. |
(3) |
Excludes jet fuel and petroleum coke. |
(4) |
Consists of terminalling throughputs at our |
|
Supplemental Information | |
Schedule of Selected Segment Financial Data, Pricing Statistics Impacting our Refining Segment, and Other Reconciliations of Amounts Reported Under |
Selected Segment Financial Data |
|
Three Months Ended September 30, 2024 |
||||||||||||||
$ in millions (unaudited) |
|
Refining |
|
Logistics |
|
Corporate,
|
|
Consolidated |
||||||||
Net revenues (excluding intercompany fees and revenues) |
|
$ |
2,852.6 |
|
|
$ |
99.2 |
|
$ |
— |
|
|
$ |
2,951.8 |
|
|
Inter-segment fees and revenues (1) |
|
|
175.2 |
|
|
|
114.9 |
|
|
|
(199.5 |
) |
|
|
90.6 |
|
Total revenues |
|
$ |
3,027.8 |
|
|
$ |
214.1 |
|
|
$ |
(199.5 |
) |
|
$ |
3,042.4 |
|
Cost of sales |
|
|
3,083.3 |
|
|
|
168.3 |
|
|
|
(189.0 |
) |
|
|
3,062.6 |
|
Gross margin |
|
$ |
(55.5 |
) |
|
$ |
45.8 |
|
|
$ |
(10.5 |
) |
|
$ |
(20.2 |
) |
|
|
Three Months Ended September 30, 2023 |
||||||||||||||
$ in millions (unaudited) |
|
Refining |
|
Logistics |
|
Corporate,
|
|
Consolidated |
||||||||
Net revenues (excluding intercompany fees and revenues) |
|
$ |
4,392.4 |
|
$ |
119.5 |
|
$ |
— |
|
|
$ |
4,511.9 |
|||
Inter-segment fees and revenues (1) |
|
|
232.1 |
|
|
|
156.4 |
|
|
|
(271.6 |
) |
|
|
116.9 |
|
Total revenues |
|
$ |
4,624.5 |
|
|
$ |
275.9 |
|
|
$ |
(271.6 |
) |
|
$ |
4,628.8 |
|
Cost of sales |
|
|
4,394.4 |
|
|
|
206.5 |
|
|
|
(250.1 |
) |
|
|
4,350.8 |
|
Gross margin |
|
$ |
230.1 |
|
|
$ |
69.4 |
|
|
$ |
(21.5 |
) |
|
$ |
278.0 |
|
|
|
Nine Months Ended September 30, 2024 |
||||||||||||||
$ in millions (unaudited) |
|
Refining |
|
Logistics |
|
Corporate,
|
|
Consolidated |
||||||||
Net revenues (excluding intercompany fees and revenues) |
|
$ |
8,872.1 |
|
|
$ |
319.4 |
|
$ |
— |
|
|
$ |
9,191.5 |
||
Inter-segment fees and revenues (1) |
|
|
571.2 |
|
|
|
411.4 |
|
|
|
(695.6 |
) |
|
|
287.0 |
|
Total revenues |
|
$ |
9,443.3 |
|
|
$ |
730.8 |
|
|
$ |
(695.6 |
) |
|
$ |
9,478.5 |
|
Cost of sales |
|
|
9,506.8 |
|
|
|
539.1 |
|
|
|
(658.9 |
) |
|
|
9,387.0 |
|
Gross margin |
|
$ |
(63.5 |
) |
|
$ |
191.7 |
|
|
$ |
(36.7 |
) |
|
$ |
91.5 |
|
|
|
Nine Months Ended September 30, 2023 |
||||||||||||||
$ in millions (unaudited) |
|
Refining |
|
Logistics |
|
Corporate,
|
|
Consolidated |
||||||||
Net revenues (excluding intercompany fees and revenues) |
|
$ |
11,842.2 |
|
$ |
351.9 |
|
$ |
— |
|
|
$ |
12,194.1 |
|||
Inter-segment fees and revenues (1) |
|
|
629.3 |
|
|
|
414.4 |
|
|
|
(712.7 |
) |
|
|
331.0 |
|
Total revenues |
|
$ |
12,471.5 |
|
|
$ |
766.3 |
|
|
$ |
(712.7 |
) |
|
$ |
12,525.1 |
|
Cost of sales |
|
|
12,045.8 |
|
|
|
555.6 |
|
|
|
(669.9 |
) |
|
|
11,931.5 |
|
Gross margin |
|
$ |
425.7 |
|
|
$ |
210.7 |
|
|
$ |
(42.8 |
) |
|
$ |
593.6 |
|
(1) |
Intercompany fees and sales for the refining segment include revenues of |
|
Pricing Statistics |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
(average for the period presented) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
|
|
|
|
|
|
|
|
||||||||
WTI — |
|
$ |
75.28 |
|
$ |
82.51 |
|
$ |
77.72 |
|
$ |
77.37 |
||||
WTI — Midland crude oil (per barrel) |
|
$ |
75.96 |
|
|
$ |
83.85 |
|
|
$ |
78.75 |
|
|
$ |
78.63 |
|
WTS — Midland crude oil (per barrel) |
|
$ |
75.25 |
|
|
$ |
83.01 |
|
|
$ |
77.91 |
|
|
$ |
77.34 |
|
LLS (per barrel) |
|
$ |
77.28 |
|
|
$ |
84.88 |
|
|
$ |
80.23 |
|
|
$ |
79.82 |
|
Brent (per barrel) |
|
$ |
78.71 |
|
|
$ |
85.92 |
|
|
$ |
81.81 |
|
|
$ |
81.96 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
$ |
15.64 |
|
|
$ |
32.39 |
|
|
$ |
18.89 |
|
|
$ |
30.15 |
|
|
|
$ |
15.27 |
|
|
$ |
31.30 |
|
|
$ |
18.26 |
|
|
$ |
29.30 |
|
|
|
$ |
11.42 |
|
|
$ |
19.48 |
|
|
$ |
14.63 |
|
|
$ |
16.64 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
$ |
2.11 |
|
|
$ |
2.58 |
|
|
$ |
2.21 |
|
|
$ |
2.44 |
|
Gulf Coast Ultra-low sulfur diesel (per gallon) |
|
$ |
2.24 |
|
|
$ |
2.97 |
|
|
$ |
2.43 |
|
|
$ |
2.74 |
|
|
|
$ |
2.08 |
|
|
$ |
2.04 |
|
|
$ |
1.97 |
|
|
$ |
1.80 |
|
Natural gas (per MMBTU) |
|
$ |
2.23 |
|
|
$ |
2.66 |
|
|
$ |
2.23 |
|
|
$ |
2.57 |
|
(1) |
For our |
|
Other Reconciliations of Amounts Reported Under |
||||||||||||||||
$ in millions (unaudited) |
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
Reconciliation of gross margin to Refining margin to Adjusted refining margin |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Gross margin |
|
$ |
(55.5 |
) |
|
$ |
230.1 |
|
|
$ |
(63.5 |
) |
|
$ |
425.7 |
|
Add back (items included in cost of sales): |
|
|
|
|
|
|
|
|
||||||||
Operating expenses (excluding depreciation and amortization) |
|
|
145.0 |
|
|
|
166.5 |
|
|
|
459.4 |
|
|
|
459.4 |
|
Depreciation and amortization |
|
|
76.0 |
|
|
|
60.1 |
|
|
|
194.8 |
|
|
|
176.5 |
|
Refining margin |
|
$ |
165.5 |
|
|
$ |
456.7 |
|
|
$ |
590.7 |
|
|
$ |
1,061.6 |
|
Adjusting items |
|
|
|
|
|
|
|
|
||||||||
Net inventory LCM valuation loss (benefit) |
|
|
0.2 |
|
|
|
3.4 |
|
|
|
(10.5 |
) |
|
|
(6.2 |
) |
Other inventory impact (1) |
|
|
25.8 |
|
|
|
(28.2 |
) |
|
|
39.0 |
|
|
|
145.4 |
|
Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements |
|
|
(8.0 |
) |
|
|
17.4 |
|
|
|
1.1 |
|
|
|
(8.1 |
) |
Unrealized RINs hedging (gain) loss where the hedged item is not yet recognized in the financial statements (2) |
|
|
(2.6 |
) |
|
|
— |
|
|
|
3.7 |
|
|
|
— |
|
Intercompany lease impacts (1) |
|
|
(32.1 |
) |
|
|
— |
|
|
|
(32.1 |
) |
|
|
— |
|
Total adjusting items |
|
|
(16.7 |
) |
|
|
(7.4 |
) |
|
|
1.2 |
|
|
|
131.1 |
|
Adjusted refining margin |
|
$ |
148.8 |
|
|
$ |
449.3 |
|
|
$ |
591.9 |
|
|
$ |
1,192.7 |
|
(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. |
|
Calculation of Net (Cash) Debt |
|
September 30, 2024 |
|
December 31, 2023 |
||||
Long-term debt - current portion |
|
$ |
9.5 |
|
|
$ |
44.5 |
|
Long-term debt - non-current portion |
|
|
2,779.9 |
|
|
|
2,555.3 |
|
Total long-term debt |
|
|
2,789.4 |
|
|
|
2,599.8 |
|
Less: Cash and cash equivalents |
|
|
1,037.6 |
|
|
|
821.8 |
|
Net debt - consolidated |
|
|
1,751.8 |
|
|
|
1,778.0 |
|
Less: DKL net debt |
|
|
1,887.0 |
|
|
|
1,700.0 |
|
Net (cash) debt, excluding DKL |
|
$ |
(135.2 |
) |
|
$ |
78.0 |
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241106197750/en/
Investor/Media Relations Contacts:
investor.relations@delekus.com
Information about Delek US Holdings, Inc. can be found on its website (www.delekus.com), investor relations webpage (ir.delekus.com), news webpage (www.delekus.com/news) and its X account (@DelekUSHoldings).
Source: Delek US Holdings, Inc.
FAQ
What was Delek US Holdings (DK) earnings per share in Q3 2024?
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What was Delek US Holdings (DK) refining segment performance in Q3 2024?