STOCK TITAN

Delek US Holdings Reports Third Quarter 2024 Results

Rhea-AI Impact
(Moderate)
Rhea-AI Sentiment
(Neutral)
Tags

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.

Positive
  • 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
Negative
  • 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 $76.8 million ($1.20 per share), marking a stark reversal from the $128.7 million profit in Q3 2023. The refining segment's performance deteriorated substantially, with Adjusted EBITDA plummeting to $10.2 million from $296.1 million year-over-year, primarily due to a 49.1% decline in crack spreads.

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 logistics segment remains a bright spot, achieving record quarterly EBITDA of $106.1 million, demonstrating the value of recent acquisitions and the W2W pipeline dropdown.

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 $2.79 billion, the parent company maintains a net cash position of $135.2 million excluding DKL obligations. This financial flexibility, combined with ongoing strategic initiatives, provides some buffer against current operational challenges.

  • Net loss of $76.8 million or $(1.20) per share, adjusted net loss of $93.0 million or $(1.45) per share, adjusted EBITDA of $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
  • 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 $16.4 million of dividends and announced regular quarterly dividend of $0.255 per share in October

BRENTWOOD, Tenn.--(BUSINESS WIRE)-- Delek US Holdings, Inc. (NYSE: DK) (“Delek US”, "Company") today announced financial results for its third quarter ended September 30, 2024.

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 $10.2 million in the third quarter 2024 compared with $296.1 million in the same quarter last year, which reflects other inventory impacts of $25.8 million and $(28.2) million for third quarter 2024 and 2023, respectively. The decrease over 2023 is primarily due to lower refining crack spreads. During the third quarter 2024, Delek US's benchmark crack spreads were down an average of 49.1% from prior-year levels.

Logistics Segment

The logistics segment Adjusted EBITDA in the third quarter 2024 was $106.1 million compared with $96.5 million in the prior year quarter. The increase over last year's third quarter was driven by strong contributions from Delaware Gathering systems, annual rate increases and the impact of the W2W dropdown.

Corporate and Other Activity

Adjusted EBITDA from Corporate, Other and Eliminations was a loss of $(53.9) million in the third quarter 2024 compared with a loss of $(63.9) million in the prior-year period. The decreased losses were driven by lower employee related expenses, partially offset by the impact of the W2W dropdown.

Shareholder Distributions

On October 30, 2024, the Board of Directors approved the regular quarterly dividend of $0.255 per share that will be paid on November 18, 2024 to shareholders of record on November 12, 2024.

Liquidity

As of September 30, 2024, Delek US had a cash balance of $1,037.6 million and total consolidated long-term debt of $2,789.4 million, resulting in net debt of $1,751.8 million. As of September 30, 2024, Delek Logistics Partners, LP (NYSE: DKL) ("Delek Logistics") had $7.3 million of cash and $1,894.3 million of total long-term debt, which are included in the consolidated amounts on Delek US' balance sheet. Excluding Delek Logistics, Delek US had $1,030.3 million in cash and $895.1 million of long-term debt, or a $135.2 million net cash position.

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 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. Pipeline assets include an ownership interest in the 650-mile Wink to Webster long-haul crude oil pipeline.

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 70.4% (including the general partner interest) of Delek Logistics Partners, LP at September 30, 2024.

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, 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 business following its 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 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)

 

 

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, $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, 81,231,308 shares and 81,539,871 shares issued at September 30, 2024 and December 31, 2023, respectively

 

 

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 100% of the limited liability company interests in H2O Midstream Intermediate, LLC, H2O Midstream Permian LLC, and H2O Midstream LLC (the "H2O Midstream Acquisition") from H2O Midstream Holdings, LLC. The H2O Midstream Acquisition included water disposal and recycling operations in the Midland Basin in Texas. The purchase price was $229.5 million, subject to final working capital closing adjustments and including $70.0 million of Preferred Units. Delek Logistics incurred $6.1 million ($4.7 million after-tax) of transaction related expenses in connection with the H2O Midstream Acquisition during the three months ended September 30, 2024.

Retail

On September 30, 2024, Delek US closed the previously announced transaction to sell 100% of the equity interests in four of Delek US' wholly-owned subsidiaries that own and operate 249 retail fuel and convenience stores (the "Retail Stores") under the Delek US Retail brand to a subsidiary of Fomento Económico Mexicano, S.A.B. de C.V. (“FEMSA”) ("Retail Transaction"). Net cash proceeds before taxes related to this transaction were approximately $390.2 million. The Retail Transaction resulted in a gain on sale of the Retail Stores, before income tax, of $98.4 million. As a result, we met the requirements of ASC 205-20 and ASC 360 to report the results of the Retail Stores as discontinued operations and to classify the Retail Stores as a group of discontinued operations assets.

Delek US and Delek Logistics Transactions

Wink to Webster Pipeline

On August 1, 2024, we purchased an additional 0.6% indirect investment in Wink to Webster Pipeline LLC for $18.6 million, bringing our total indirect ownership in the pipeline joint venture to 15.6%. On August 5, 2024, we contributed all of our 50% investment in W2W Holdings LLC ("HoldCo") which includes our 15.6% indirect interest in the Wink to Webster Pipeline LLC joint venture and related joint venture indebtedness, to a subsidiary of Delek Logistics. Total consideration was comprised of $83.9 million (including post-close adjustments) in cash, forgiveness of a $60.0 million payable to Delek Logistics and 2,300,000 of Delek Logistics common units. The transaction was accounted for as an acquisition of assets between entities under common control and we did not record a gain or loss. As of August 5, 2024, the operating results of HoldCo are now reported in our Logistics segment. Previously, they were reported as part of corporate, other and eliminations.

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 $5.4 million ($4.2 million after-tax) of transaction related expenses in connection with these agreements during the three months ended September 30, 2024.

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 $33.7 million ($26.1 million after-tax) associated with our business transformation. Restructuring costs of $14.1 million are recorded in other operating expense (income), net, $9.2 million are recorded in asset impairment, $6.6 million are recorded in general and administrative expenses and $3.8 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.

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

 

El Dorado refinery fire losses

 

 

 

 

 

8.0

 

 

 

 

 

 

8.0

 

Tax effect

 

 

 

 

 

(1.8

)

 

 

 

 

 

(1.8

)

El Dorado refinery fire losses, net

 

 

 

 

 

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 U.S. GAAP Income (Loss) per share to Adjusted Net Income (Loss) per share

 

 

 

 

 

 

 

 

 

 

 

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

 

El Dorado refinery fire losses

 

 

 

 

 

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

 

El Dorado refinery fire losses

 

 

 

 

 

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

 

El Dorado refinery fire losses

 

 

 

 

 

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,
Other and
Eliminations

 

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,
Other and

Eliminations (3)

 

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

)

El Dorado refinery fire losses

 

 

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,
Other and
Eliminations (3)

 

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,
Other
and Eliminations (3)

 

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

)

El Dorado refinery fire losses

 

 

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 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 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 Arkansas crude oil

 

 

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

%

 

 

 

 

 

 

 

 

 

Tyler, TX Refinery

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

Tyler refining production margin ($ in millions)

 

$

51.6

 

 

$

165.4

 

 

$

224.6

 

 

$

329.7

 

Per barrel of throughput:

 

 

 

 

 

 

 

 

Tyler refining production margin

 

$

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

%

East Texas crude oil

 

 

19.6

%

 

 

23.2

%

 

 

19.0

%

 

 

21.9

%

Other

 

 

1.2

%

 

 

%

 

 

0.4

%

 

 

%

 

 

 

 

 

 

 

 

 

Capture rate (3)

 

 

47.8

%

 

 

73.0

%

 

 

58.4

%

 

 

64.0

%

El Dorado, AR Refinery

 

 

 

 

 

 

 

 

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

 

El Dorado refining production margin ($ in millions)

 

$

4.7

 

 

$

97.5

 

 

$

97.0

 

 

$

231.0

 

Per barrel of throughput:

 

 

 

 

 

 

 

 

El Dorado refining production margin

 

$

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 Arkansas crude oil

 

 

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

%

Big Spring, TX Refinery

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

Big Spring refining production margin ($ in millions)

 

$

45.6

 

 

$

95.1

 

 

$

181.6

 

 

$

280.3

 

Per barrel of throughput:

 

 

 

 

 

 

 

 

Big Spring refining production margin

 

$

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

%

Krotz Springs, LA Refinery

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

Krotz Springs refining production margin ($ in millions)

 

$

36.2

 

 

$

92.5

 

 

$

177.1

 

 

$

256.6

 

Per barrel of throughput:

 

 

 

 

 

 

 

 

Krotz Springs refining production margin

 

$

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 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 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:

 

 

 

 

 

 

 

 

East Texas - Tyler Refinery sales volumes (average bpd) (3)

 

 

70,172

 

 

 

69,178

 

 

 

69,246

 

 

 

57,894

 

Big Spring wholesale marketing throughputs (average bpd)

 

 

22,700

 

 

 

81,617

 

 

 

60,109

 

 

 

78,399

 

West Texas wholesale marketing throughputs (average bpd)

 

 

6,552

 

 

 

10,692

 

 

 

5,276

 

 

 

9,871

 

West Texas wholesale marketing margin per barrel

 

$

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 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 September 30, 2024

$ in millions (unaudited)

 

Refining

 

Logistics

 

Corporate,
Other and
Eliminations

 

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,
Other and
Eliminations

 

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,
Other and
Eliminations

 

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,
Other
and Eliminations

 

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 $90.6 million and $287.0 million during the three and nine months ended September 30, 2024, respectively, and $116.9 million and $331.0 million during the three and nine months ended September 30, 2023, respectively, to the Retail Stores, the operations of which are reported in discontinued operations.

 

Pricing Statistics

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

(average for the period presented)

 

2024

 

2023

 

2024

 

2023

 

 

 

 

 

 

 

 

 

WTI — Cushing crude oil (per barrel)

 

$

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

 

 

 

 

 

 

 

 

 

 

U.S. Gulf Coast 5-3-2 crack spread (per barrel) (1)

 

$

15.64

 

 

$

32.39

 

 

$

18.89

 

 

$

30.15

 

U.S. Gulf Coast 3-2-1 crack spread (per barrel) (1)

 

$

15.27

 

 

$

31.30

 

 

$

18.26

 

 

$

29.30

 

U.S. Gulf Coast 2-1-1 crack spread (per barrel) (1)

 

$

11.42

 

 

$

19.48

 

 

$

14.63

 

 

$

16.64

 

 

 

 

 

 

 

 

 

 

U.S. Gulf Coast Unleaded Gasoline (per gallon)

 

$

2.11

 

 

$

2.58

 

 

$

2.21

 

 

$

2.44

 

Gulf Coast Ultra-low sulfur diesel (per gallon)

 

$

2.24

 

 

$

2.97

 

 

$

2.43

 

 

$

2.74

 

U.S. Gulf Coast high sulfur diesel (per gallon)

 

$

2.08

 

 

$

2.04

 

 

$

1.97

 

 

$

1.80

 

Natural gas (per MMBTU)

 

$

2.23

 

 

$

2.66

 

 

$

2.23

 

 

$

2.57

 

(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 U.S. Gulf Coast Pipeline No. 2 heating oil (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 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

 

 

 

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?

Delek US Holdings reported a loss of $1.20 per share, with adjusted loss per share of $1.45 in Q3 2024.

How much did Delek US Holdings (DK) receive from the sale of its retail assets?

Delek US Holdings received proceeds of $390 million from the sale of its retail assets in Q3 2024.

What was Delek US Holdings (DK) refining segment performance in Q3 2024?

The refining segment's Adjusted EBITDA was $10.2 million, down from $296.1 million in Q3 2023, primarily due to lower refining crack spreads.

What is the quarterly dividend announced by Delek US Holdings (DK) for Q3 2024?

Delek US Holdings announced a regular quarterly dividend of $0.255 per share, payable on November 18, 2024.

DELEK LOGISTICS PARTNERS, LP

NYSE:DKL

DKL Rankings

DKL Latest News

DKL Stock Data

2.04B
12.45M
67.22%
14.81%
1.22%
Oil & Gas Refining & Marketing
Pipe Lines (no Natural Gas)
Link
United States of America
BRENTWOOD