- Net loss of $37.2 million or $(0.58) per share, adjusted net
loss of $59.3 million or $(0.92) per share, adjusted EBITDA of
$107.5 million
- Since the end of 1Q' 2024, we have successfully progressed
our SOTP strategy:
Delek US (DK):
- Entered into an agreement to sell our retail assets for $385
million
- Signed a fuel supply agreement with FEMSA for ten
years
Delek Logistics (DKL):
- DK & DKL agreed to amend and extend intercompany
contracts for a period of up to seven years
- DK executed a drop-down of Wink to Webster ("W2W") into
DKL
- DKL signed an agreement to acquire H2O Midstream, further
adding to its third party cash flows
- DKL announced the final investment decision (FID) on a new
gas processing plant
- Paid $16.0 million of dividends and increased regular
quarterly dividend to $0.255 per share in July
Delek US Holdings, Inc. (NYSE: DK) (“Delek US”, "Company") today
announced financial results for its second quarter ended June 30,
2024.
“We are excited about the significant progress we have made on
our `Sum of the Parts' efforts,” said Avigal Soreq, President and
Chief Executive Officer of Delek US. “We concluded the strategic
review of our retail assets. Following the review, we have
announced the sale of our retail business to FEMSA. Delek US &
Delek Logistics executed on `win-win' contract amendments and
extensions as well as drop-down of our interest in the Wink to
Webster pipeline. A combination of our retail sale, drop-down of
our interest in the Wink to Webster pipeline, and amendments &
extensions of contracts between DK & DKL will allow for a cash
infusion of over $500mm in DK with little to no loss in standalone
DK EBITDA. At the same time, a combination of contract
extensions, acquisition of Wink to Webster interest, new processing
plant and acquisition of H2O Midstream will enable DKL to continue
to have among the best combination of cash flow growth and
distributions amongst its peers.”
"Looking ahead, we will continue to execute on our priorities of
running safe and reliable operations, making further progress on
our strategic initiatives, and delivering shareholder value while
maintaining our financial strength and flexibility,” Soreq
concluded.
For the intercompany transactions, Barclays was the exclusive
financial advisor and Bradley Arant Boult Cummings LLP was the
legal advisor to Delek US.
Delek US Results
Three Months Ended June
30,
Six Months Ended June
30,
($ in millions, except per share
data)
2024
2023
2024
2023
Net (loss) income attributable to Delek
US
$
(37.2
)
$
(8.3
)
$
(69.8
)
$
56.0
Diluted (loss) income per share
$
(0.58
)
$
(0.13
)
$
(1.09
)
$
0.84
Adjusted net (loss) income
$
(59.3
)
$
65.2
$
(85.5
)
$
157.9
Adjusted net (loss) income per share
$
(0.92
)
$
1.00
$
(1.33
)
$
2.36
Adjusted EBITDA
$
107.5
$
259.4
$
266.2
$
544.0
Refining Segment
The refining segment Adjusted EBITDA was $42.1 million in the
second quarter 2024 compared with $212.4 million in the same
quarter last year, which reflects other inventory impacts of $14.6
million and $96.5 million for second quarter 2024 and 2023,
respectively. The decrease over 2023 is primarily due to lower
refining crack spreads, partially offset by higher sales volume.
During the second quarter 2024, Delek US's benchmark crack spreads
were down an average of 21.1% from prior-year levels.
Logistics Segment
The logistics segment Adjusted EBITDA in the second quarter 2024
was $100.6 million compared with $90.9 million in the prior year
quarter. The increase over last year's second quarter was driven by
strong contributions from Delaware Gathering systems in addition to
annual rate increases.
Retail Segment
For the second quarter 2024, Adjusted EBITDA for the retail
segment was $12.4 million compared with $15.0 million in the
prior-year period. The decrease over 2023 is primarily due to
decreased sales as a result of remodeling activities and decreased
margins.
Corporate and Other
Activity
Adjusted EBITDA from Corporate, Other and Eliminations was a
loss of $(47.6) million in the second quarter 2024 compared with a
loss of $(58.9) million in the prior-year period. The decreased
losses were driven by lower employee related expenses.
Shareholder
Distributions
On July 31, 2024, the Board of Directors approved the regular
quarterly dividend of $0.255 per share that will be paid on August
19, 2024 to shareholders of record on August 12, 2024.
Liquidity
As of June 30, 2024, Delek US had a cash balance of $657.9
million and total consolidated long-term debt of $2,461.7 million,
resulting in net debt of $1,803.8 million. As of June 30, 2024,
Delek Logistics Partners, LP (NYSE: DKL) ("Delek Logistics") had
$5.1 million of cash and $1,566.3 million of total long-term debt,
which are included in the consolidated amounts on Delek US' balance
sheet. Excluding Delek Logistics, Delek US had $652.8 million in
cash and $895.4 million of long-term debt, or a $242.6 million net
debt position.
Second Quarter 2024 Results |
Conference Call Information
Delek US will hold a conference call to discuss its second
quarter 2024 results on Tuesday, August 6, 2024 at 11:00 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) second quarter 2024 earnings conference call that will be held
on Tuesday August 6, 2024 at 11:30 a.m. Central Time and review
Delek Logistics’ earnings press release. Market trends and
information disclosed by Delek Logistics may be relevant to the
logistics segment reported by Delek US. Both a replay of the
conference call and press release for Delek Logistics will be
available online at www.deleklogistics.com.
About Delek US Holdings,
Inc.
Delek US Holdings, Inc. is a diversified downstream energy
company with assets in petroleum refining, logistics, pipelines,
renewable fuels and convenience store retailing. 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
convenience store retail segment operates approximately 250
convenience stores in West Texas and New Mexico.
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 72.6% (including the general
partner interest) of Delek Logistics Partners, LP at June 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 timing
for closing and 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) and unrealized hedging (gain) loss;
- 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)
June 30, 2024
December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents
$
657.9
$
822.2
Accounts receivable, net
771.4
783.7
Inventories, net of inventory valuation
reserves
1,010.4
981.9
Other current assets
61.2
78.2
Total current assets
2,500.9
2,666.0
Property, plant and equipment:
Property, plant and equipment
4,799.4
4,690.7
Less: accumulated depreciation
(2,013.6
)
(1,845.5
)
Property, plant and equipment, net
2,785.8
2,845.2
Operating lease right-of-use assets
133.5
148.2
Goodwill
729.4
729.4
Other intangibles, net
284.3
296.2
Equity method investments
386.9
360.7
Other non-current assets
122.7
126.1
Total assets
$
6,943.5
$
7,171.8
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
1,861.4
$
1,814.3
Current portion of long-term debt
9.5
44.5
Current portion of obligation under
Inventory Intermediation Agreement
—
0.4
Current portion of operating lease
liabilities
51.0
54.7
Accrued expenses and other current
liabilities
642.9
771.2
Total current liabilities
2,564.8
2,685.1
Non-current liabilities:
Long-term debt, net of current portion
2,452.2
2,555.3
Obligation under Inventory Intermediation
Agreement
472.2
407.2
Environmental liabilities, net of current
portion
32.8
110.9
Asset retirement obligations
26.2
43.3
Deferred tax liabilities
262.1
264.1
Operating lease liabilities, net of
current portion
96.0
111.2
Other non-current liabilities
54.4
35.0
Total non-current liabilities
3,395.9
3,527.0
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, 82,085,570 shares and 81,539,871 shares issued
at June 30, 2024 and December 31, 2023, respectively
0.8
0.8
Additional paid-in capital
1,175.8
1,113.6
Accumulated other comprehensive loss
(4.8
)
(4.8
)
Treasury stock, 17,575,527 shares, at
cost, at June 30, 2024 and December 31, 2023, respectively
(694.1
)
(694.1
)
Retained earnings
328.1
430.0
Non-controlling interests in
subsidiaries
177.0
114.2
Total stockholders’ equity
982.8
959.7
Total liabilities and stockholders’
equity
$
6,943.5
$
7,171.8
Delek US Holdings, Inc.
Condensed Consolidated Statements of
Income (Unaudited)
($ in millions, except share and per
share data)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Net revenues
$
3,421.7
$
4,195.6
$
6,649.3
$
8,119.9
Cost of sales:
Cost of materials and other
3,099.4
3,766.6
5,896.7
7,206.2
Operating expenses (excluding depreciation
and amortization presented below)
185.1
188.7
398.9
359.5
Depreciation and amortization
80.7
82.6
167.1
159.4
Total cost of sales
3,365.2
4,037.9
6,462.7
7,725.1
Operating expenses related to retail and
wholesale business (excluding depreciation and amortization
presented below)
26.3
31.1
52.1
58.1
General and administrative expenses
63.1
75.8
127.5
147.3
Depreciation and amortization
11.4
6.8
20.2
13.4
Asset impairment
22.1
—
22.1
—
Other operating income, net
(79.9
)
(6.1
)
(81.5
)
(16.9
)
Total operating costs and expenses
3,408.2
4,145.5
6,603.1
7,927.0
Operating income
13.5
50.1
46.2
192.9
Interest expense, net
77.7
80.4
165.4
156.9
Income from equity method investments
(30.4
)
(25.5
)
(52.3
)
(40.1
)
Other expense (income), net
—
0.5
(0.7
)
(6.6
)
Total non-operating expense, net
47.3
55.4
112.4
110.2
(Loss) income before income tax (benefit)
expense
(33.8
)
(5.3
)
(66.2
)
82.7
Income tax (benefit) expense
(7.7
)
(3.8
)
(14.9
)
12.0
Net (loss) income
(26.1
)
(1.5
)
(51.3
)
70.7
Net income attributed to non-controlling
interests
11.1
6.8
18.5
14.7
Net (loss) income attributable to
Delek
$
(37.2
)
$
(8.3
)
$
(69.8
)
$
56.0
Basic (loss) income per share
$
(0.58
)
$
(0.13
)
$
(1.09
)
$
0.84
Diluted (loss) income per share
$
(0.58
)
$
(0.13
)
$
(1.09
)
$
0.84
Weighted average common shares
outstanding:
Basic
64,213,899
65,773,609
64,117,943
66,359,537
Diluted
64,213,899
65,773,609
64,117,943
66,835,322
Condensed Cash Flow Data (Unaudited)
($ in millions)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Cash flows from operating
activities:
Net cash (used in) provided by operating
activities
$
(48.4
)
$
95.1
$
118.3
$
490.2
Cash flows from investing
activities:
Net cash used in investing activities
(62.5
)
(57.8
)
(104.1
)
(279.9
)
Cash flows from financing
activities:
Net cash provided by (used in) financing
activities
15.4
(80.7
)
(178.5
)
(230.0
)
Net decrease in cash and cash
equivalents
(95.5
)
(43.4
)
(164.3
)
(19.7
)
Cash and cash equivalents at the beginning
of the period
753.4
865.0
822.2
841.3
Cash and cash equivalents at the end of
the period
$
657.9
$
821.6
$
657.9
$
821.6
Significant Transactions During the Quarter Impacting
Results:
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 second quarter 2024,
we recorded restructuring costs totaling $22.6 million ($17.5
million after-tax) associated with our business transformation. The
second quarter 2024 included a $22.1 million impairment related to
the decision to temporary idle the Crossett, Arkansas, Cleburne,
Texas and New Albany, Mississippi biodiesel facilities, while we
explore viable and sustainable alternatives. Our decision to idle
these facilities was driven by the decline in the overall biodiesel
market and aligns with our continued operational and cost
optimization efforts. Restructuring costs of $22.1 million are
recorded in asset impairment, $0.1 million are recorded in general
and administrative expenses and $0.4 million are included in
operating expenses in our consolidated statements of income.
Insurance and Settlement Recoveries
During the second quarter 2024, we received insurance and third
party recoveries related to the fire events that occurred during
2021 and 2022, which unfavorably impacted our results in 2021 and
2022. For the three months ended June 30, 2024, we have recognized
an additional $14.5 million ($11.2 million after-tax) of property
recoveries, which were recorded in other operating income on the
consolidated statement of income. These recoveries are not included
as an Adjusting item in Adjusted net income and Adjusted
EBITDA.
During the second quarter 2024, we received third party
recoveries related to the fire events that occurred during 2021,
which unfavorably impacted our results in 2021. For three months
ended June 30, 2024, we recognized a gain of $10.6 million ($8.2
million after-tax) related to business interruption claims which
were recorded in other operating income on the consolidated
statement of income. Because business interruption losses are
economic in nature rather than recognized, the related recoveries
are included as an Adjusting item in Adjusted net income and
Adjusted EBITDA. We have additional claims that are outstanding and
still pending which could be recognized in future quarters.
Property Settlement
On June 27, 2024, we settled a dispute that was in litigation
related to a property that we historically operated as an asphalt
and marine fuel terminal both as an owner and, subsequently, as a
lessee under an in-substance lease agreement (the “License
Agreement”). The settlement included the purchase of the property
for $10.0 million and $42.0 million for settlement of the
litigation for a total of $52.0 million. As a result of the
termination of the License Agreement, we are no longer obligated to
remove equipment from the property for certain development
activities and as a result we reversed the $17.9 million asset
retirement obligation recorded in connection with the Delek/Alon
Merger, effective July 1, 2017. Additionally, as a result of the
settlement we reduced the non-contingent guarantee and
environmental liability which resulted in a gain of $77.5 million.
The net gain from this settlement totaled $53.4 million and is
recorded in other operating income, net in the 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 June
30,
Six Months Ended June
30,
$ in millions (unaudited)
2024
2023
2024
2023
Reported net (loss) income attributable
to Delek US
$
(37.2
)
$
(8.3
)
$
(69.8
)
$
56.0
Adjusting items (1)
Inventory LCM valuation (benefit) loss
(1.9
)
(7.9
)
(10.7
)
(9.6
)
Tax effect
0.4
1.8
2.4
2.2
Inventory LCM valuation (benefit) loss,
net
(1.5
)
(6.1
)
(8.3
)
(7.4
)
Other inventory impact
14.6
96.5
13.2
173.6
Tax effect
(3.3
)
(21.8
)
(3.0
)
(39.1
)
Other inventory impact, net (2) (3)
11.3
74.7
10.2
134.5
Business interruption insurance and
settlement recoveries
(10.6
)
(4.7
)
(10.6
)
(9.8
)
Tax effect
2.4
1.1
2.4
2.2
Business interruption insurance and
settlement recoveries, net (2)
(8.2
)
(3.6
)
(8.2
)
(7.6
)
Unrealized inventory/commodity hedging
(gain) loss where the hedged item is not yet recognized in the
financial statements
0.1
6.7
9.1
(25.5
)
Tax effect
—
(1.5
)
(2.0
)
5.7
Unrealized inventory/commodity hedging
(gain) loss where the hedged item is not yet recognized in the
financial statements, net
0.1
5.2
7.1
(19.8
)
Unrealized RINs hedging (gain) loss where
the hedged item is not yet recognized in the financial
statements
0.1
—
6.3
—
Tax effect
—
—
(1.4
)
—
Unrealized RINs hedging (gain) loss where
the hedged item is not yet recognized in the financial statements,
net (4)
0.1
—
4.9
—
Restructuring costs
22.6
4.3
25.8
2.9
Tax effect
(5.1
)
(1.0
)
(5.8
)
(0.7
)
Restructuring costs, net (2)
17.5
3.3
20.0
2.2
Property settlement
(53.4
)
—
(53.4
)
—
Tax effect
12.0
—
12.0
—
Property settlement, net (2)
(41.4
)
—
(41.4
)
—
Total adjusting items (1)
(22.1
)
73.5
(15.7
)
101.9
Adjusted net (loss) income
$
(59.3
)
$
65.2
$
(85.5
)
$
157.9
(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 September
30, 2023, we updated our other inventory impact calculation to
exclude the impact of certain pipeline inventories not used in our
refinery operations. The impact to historical non-GAAP financial
measures is immaterial.
(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 U.S. GAAP Income (Loss) per share to
Adjusted Net Income (Loss) per share
Three Months Ended June
30,
Six Months Ended June
30,
$ per share (unaudited)
2024
2023
2024
2023
Reported diluted (loss) income per
share
$
(0.58
)
$
(0.13
)
$
(1.09
)
$
0.84
Adjusting items,
after tax (per share) (1) (2)
Net inventory LCM valuation (benefit)
loss
(0.02
)
(0.09
)
(0.13
)
(0.11
)
Other inventory impact (3) (4)
0.18
1.14
0.16
2.01
Business interruption insurance and
settlement recoveries (3)
(0.13
)
(0.05
)
(0.13
)
(0.11
)
Unrealized inventory/commodity hedging
(gain) loss where the hedged item is not yet recognized in the
financial statements
—
0.08
0.11
(0.30
)
Unrealized RINs hedging (gain) loss where
the hedged item is not yet recognized in the financial statements
(5)
—
—
0.08
—
Restructuring costs (3)
0.27
0.05
0.31
0.03
Property settlement (3)
(0.64
)
—
(0.64
)
—
Total adjusting items (1)
(0.34
)
1.13
(0.24
)
1.52
Adjusted net (loss) income per
share
$
(0.92
)
$
1.00
$
(1.33
)
$
2.36
(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 September
30, 2023, we updated our other inventory impact calculation to
exclude the impact of certain pipeline inventories not used in our
refinery operations. The impact to historical non-GAAP financial
measures is immaterial.
(5)
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 June
30,
Six Months Ended June
30,
$ in millions (unaudited)
2024
2023
2024
2023
Reported net (loss) income attributable
to Delek US
$
(37.2
)
$
(8.3
)
$
(69.8
)
$
56.0
Add:
Interest expense, net
77.7
80.4
165.4
156.9
Income tax expense (benefit)
(7.7
)
(3.8
)
(14.9
)
12.0
Depreciation and amortization
92.1
89.4
187.3
172.8
EBITDA attributable to Delek US
124.9
157.7
268.0
397.7
Adjusting items
Net inventory LCM valuation (benefit)
loss
(1.9
)
(7.9
)
(10.7
)
(9.6
)
Other inventory impact (1) (2)
14.6
96.5
13.2
173.6
Business interruption insurance and
settlement recoveries (1)
(10.6
)
(4.7
)
(10.6
)
(9.8
)
Unrealized inventory/commodity hedging
(gain) loss where the hedged item is not yet recognized in the
financial statements
0.1
6.7
9.1
(25.5
)
Unrealized RINs hedging (gain) loss where
the hedged item is not yet recognized in the financial statements
(3)
0.1
—
6.3
—
Restructuring costs (1)
22.6
4.3
25.8
2.9
Property settlement (1)
(53.4
)
—
(53.4
)
—
Net income attributable to non-controlling
interest
11.1
6.8
18.5
14.7
Total Adjusting items
(17.4
)
101.7
(1.8
)
146.3
Adjusted EBITDA
$
107.5
$
259.4
$
266.2
$
544.0
(1)
See further discussion in the "Significant
Transactions During the Quarter Impacting Results" section.
(2)
Starting with the quarter ended September
30, 2023, we updated our other inventory impact calculation to
exclude the impact of certain pipeline inventories not used in our
refinery operations. The impact to historical non-GAAP financial
measures is immaterial.
(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 Segment EBITDA Attributable to Delek US
to Adjusted Segment EBITDA
Three Months Ended June 30,
2024
$ in millions (unaudited)
Refining
Logistics
Retail
Corporate, Other and
Eliminations
Consolidated
Segment EBITDA Attributable to Delek
US
$
17.3
$
100.6
$
12.4
$
(5.4
)
$
124.9
Adjusting
items
Net inventory LCM valuation (benefit)
loss
(1.9
)
—
—
—
(1.9
)
Other inventory impact (1) (2)
14.6
—
—
—
14.6
Unrealized inventory/commodity hedging
(gain) loss where the hedged item is not yet recognized in the
financial statements
0.1
—
—
—
0.1
Unrealized RINs hedging (gain) loss where
the hedged item is not yet recognized in the financial statements
(3)
0.1
—
—
—
0.1
Restructuring costs (1)
22.5
—
—
0.1
22.6
Business interruption settlement
recoveries (1)
(10.6
)
—
—
—
(10.6
)
Property settlement (1)
—
—
—
(53.4
)
(53.4
)
Net income attributable to non-controlling
interest
—
—
—
11.1
11.1
Total Adjusting items
24.8
—
—
(42.2
)
(17.4
)
Adjusted Segment EBITDA
$
42.1
$
100.6
$
12.4
$
(47.6
)
$
107.5
Three Months Ended June 30,
2023
$ in millions (unaudited)
Refining(4)
Logistics
Retail
Corporate, Other and
Eliminations(4)
Consolidated
Segment EBITDA Attributable to Delek
US
$
121.8
$
90.9
$
15.0
$
(70.0
)
$
157.7
Adjusting items
Net inventory LCM valuation (benefit)
loss
(7.9
)
—
—
—
(7.9
)
Other inventory impact (1) (2)
96.5
—
—
—
96.5
Unrealized inventory/commodity hedging
(gain) loss where the hedged item is not yet recognized in the
financial statements
6.7
—
—
—
6.7
Restructuring costs
—
—
—
4.3
4.3
Business interruption insurance
recoveries
(4.7
)
—
—
—
(4.7
)
Net income attributable to non-controlling
interest
—
—
—
6.8
6.8
Total Adjusting items
90.6
—
—
11.1
101.7
Adjusted Segment EBITDA
$
212.4
$
90.9
$
15.0
$
(58.9
)
$
259.4
Reconciliation of Segment EBITDA
Attributable to Delek US to Adjusted Segment EBITDA
Six Months Ended June 30,
2024
$ in millions (unaudited)
Refining(4)
Logistics
Retail
Corporate, Other and
Eliminations(4)
Consolidated
Segment EBITDA Attributable to Delek
US
$
122.4
$
200.3
$
18.9
$
(73.6
)
$
268.0
Adjusting items
Net inventory LCM valuation (benefit)
loss
(10.7
)
—
—
—
(10.7
)
Other inventory impact (1) (2)
13.2
—
—
—
13.2
Unrealized inventory/commodity hedging
(gain) loss where the hedged item is not yet recognized in the
financial statements
9.1
—
—
—
9.1
Unrealized RINs hedging (gain) loss where
the hedged item is not yet recognized in the financial statements
(3)
6.3
—
—
—
6.3
Restructuring costs (1)
22.5
—
—
3.3
25.8
Business interruption settlement
recoveries (1)
(10.6
)
—
—
—
(10.6
)
Property settlement (1)
—
—
—
(53.4
)
(53.4
)
Net income attributable to non-controlling
interest
—
—
—
18.5
18.5
Total Adjusting items
29.8
—
—
(31.6
)
(1.8
)
Adjusted Segment EBITDA
$
152.2
$
200.3
$
18.9
$
(105.2
)
$
266.2
Six Months Ended June 30,
2023
$ in millions (unaudited)
Refining(4)
Logistics
Retail
Corporate, Other and
Eliminations(4)
Consolidated
Segment EBITDA Attributable to Delek
US
$
317.3
$
182.3
$
21.4
$
(123.3
)
$
397.7
Adjusting
items
Net inventory LCM valuation (benefit)
loss
(9.6
)
—
—
—
(9.6
)
Other inventory impact (1) (2)
173.6
—
—
—
173.6
Unrealized inventory/commodity hedging
(gain) loss where the hedged item is not yet recognized in the
financial statements
(25.5
)
—
—
—
(25.5
)
Restructuring costs
—
—
—
2.9
2.9
Business interruption insurance
recoveries
(9.8
)
—
—
—
(9.8
)
Net income attributable to non-controlling
interest
—
—
—
14.7
14.7
Total Adjusting items
128.7
—
—
17.6
146.3
Adjusted Segment EBITDA
$
446.0
$
182.3
$
21.4
$
(105.7
)
$
544.0
(1)
See further discussion in the "Significant
Transactions During the Quarter Impacting Results" section.
(2)
Starting with the quarter ended September
30, 2023, we updated our other inventory impact calculation to
exclude the impact of certain pipeline inventories not used in our
refinery operations. The impact to historical non-GAAP financial
measures is immaterial.
(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.
(4)
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 June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Total Refining Segment
(Unaudited)
(Unaudited)
Days in period
91
91
182
181
Total sales volume - refined product
(average barrels per day ("bpd")) (1)
320,514
305,688
313,541
288,795
Total production (average bpd)
311,957
291,715
302,340
279,230
Crude oil
303,177
282,493
288,865
265,441
Other feedstocks
12,877
12,988
17,487
16,642
Total throughput (average bpd)
316,054
295,481
306,352
282,083
Total refining production margin per bbl
total throughput
$
7.07
$
9.29
$
9.72
$
12.68
Total refining operating expenses per bbl
total throughput
$
5.02
$
5.43
$
5.45
$
5.51
Total refining production margin ($ in
millions)
$
203.3
$
249.9
$
542.2
$
647.2
Supply, marketing and other ($ millions)
(2)
(33.6
)
114.6
(99.1
)
96.2
Total adjusted refining margin ($ in
millions)
$
169.7
$
364.5
$
443.1
$
743.4
Total crude slate details
Total crude slate: (% based on amount
received in period)
WTI crude oil
72.0
%
75.9
%
71.7
%
73.2
%
Gulf Coast Sweet crude
7.5
%
4.0
%
6.9
%
4.3
%
Local Arkansas crude oil
3.2
%
3.9
%
3.3
%
4.2
%
Other
17.3
%
16.2
%
18.1
%
18.3
%
Crude utilization (% based on nameplate
capacity) (4)
100.4
%
93.5
%
95.7
%
87.9
%
Tyler, TX Refinery
Days in period
91
91
182
181
Products manufactured (average bpd):
Gasoline
36,539
37,672
36,953
28,276
Diesel/Jet
33,705
33,029
31,905
23,091
Petrochemicals, LPG, NGLs
1,873
3,031
1,928
1,890
Other
1,674
1,829
1,445
1,803
Total production
73,791
75,561
72,231
55,060
Throughput (average bpd):
Crude oil
73,818
72,955
70,805
51,501
Other feedstocks
1,849
3,955
3,161
4,323
Total throughput
75,667
76,910
73,966
55,824
Tyler refining production margin ($ in
millions)
$
69.6
$
97.1
$
173.0
$
164.3
Per barrel of throughput:
Tyler refining production margin
$
10.11
$
13.87
$
12.85
$
16.26
Operating expenses
$
4.83
$
3.78
$
5.05
$
5.29
Crude Slate: (% based on amount received
in period)
WTI crude oil
80.1
%
86.5
%
81.3
%
78.7
%
East Texas crude oil
19.9
%
13.5
%
18.7
%
21.3
%
Capture rate (3)
55.8
%
54.3
%
62.5
%
56.0
%
El Dorado, AR Refinery
Days in period
91
91
182
181
Products manufactured (average bpd):
Gasoline
38,659
34,220
40,100
36,121
Diesel
31,880
27,948
30,958
27,830
Petrochemicals, LPG, NGLs
1,003
1,521
1,293
1,406
Asphalt
9,193
6,641
8,749
7,177
Other
2,089
1,185
1,442
967
Total production
82,824
71,515
82,542
73,501
Throughput (average bpd):
Crude oil
83,312
71,449
81,747
72,040
Other feedstocks
1,421
2,011
2,412
3,278
Total throughput
84,733
73,460
84,159
75,318
Refining Segment Selected Financial
Information (continued)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
El Dorado refining production margin ($ in
millions)
$
21.5
$
40.5
$
92.2
$
133.5
Per barrel of throughput:
El Dorado refining production margin
$
2.79
$
6.06
$
6.02
$
9.79
Operating expenses
$
4.12
$
5.00
$
4.41
$
4.73
Crude Slate: (% based on amount received
in period)
WTI crude oil
66.5
%
68.4
%
66.5
%
65.2
%
Local Arkansas crude oil
11.7
%
16.6
%
11.6
%
15.6
%
Other
21.8
%
15.0
%
21.9
%
19.2
%
Capture rate (3)
15.4
%
23.7
%
29.3
%
33.7
%
Big Spring, TX Refinery
Days in period
91
91
182
181
Products manufactured (average bpd):
Gasoline
34,271
33,582
32,123
36,032
Diesel/Jet
27,086
20,774
24,766
23,194
Petrochemicals, LPG, NGLs
3,287
3,034
4,362
3,083
Asphalt
2,841
1,630
2,464
1,636
Other
5,928
1,907
4,795
2,272
Total production
73,413
60,927
68,510
66,217
Throughput (average bpd):
Crude oil
69,342
59,240
64,395
63,590
Other feedstocks
4,701
3,020
5,053
3,818
Total throughput
74,043
62,260
69,448
67,408
Big Spring refining production margin ($
in millions)
$
60.1
$
65.5
$
136.0
$
185.3
Per barrel of throughput:
Big Spring refining production margin
$
8.92
$
11.55
$
10.76
$
15.18
Operating expenses
$
6.35
$
8.91
$
7.15
$
7.24
Crude Slate: (% based on amount received
in period)
WTI crude oil
70.2
%
66.7
%
71.4
%
71.0
%
WTS crude oil
29.8
%
33.3
%
28.6
%
29.0
%
Capture rate (3)
50.3
%
45.5
%
54.4
%
53.6
%
Krotz Springs, LA Refinery
Days in period
91
91
182
181
Products manufactured (average bpd):
Gasoline
39,037
41,191
38,907
41,517
Diesel/Jet
32,468
31,968
30,356
32,373
Heavy oils
1,033
3,725
1,882
3,618
Petrochemicals, LPG, NGLs
4,924
6,588
5,328
6,730
Other
4,467
240
2,584
214
Total production
81,929
83,712
79,057
84,452
Throughput (average bpd):
Crude oil
76,705
78,848
71,918
78,309
Other feedstocks
4,906
4,002
6,861
5,224
Total throughput
81,611
82,850
78,779
83,533
Krotz Springs refining production margin
($ in millions)
$
52.1
$
46.8
$
140.9
$
164.1
Per barrel of throughput:
Krotz Springs refining production
margin
$
7.02
$
6.21
$
9.83
$
10.85
Operating expenses
$
4.95
$
4.74
$
5.43
$
4.97
Crude Slate: (% based on amount received
in period)
WTI Crude
72.1
%
77.4
%
68.6
%
78.5
%
Gulf Coast Sweet Crude
27.2
%
15.0
%
26.2
%
14.7
%
Other
0.7
%
7.6
%
5.2
%
6.8
%
Capture rate (3)
52.8
%
54.9
%
60.3
%
71.3
%
(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 17 for crack
spread information.
(4)
Crude throughput as % of total nameplate
capacity of 302,000 bpd.
Logistics Segment Selected Information
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
(Unaudited)
(Unaudited)
Gathering & Processing: (average
bpd)
Lion Pipeline System:
Crude pipelines (non-gathered)
73,320
61,260
73,166
62,131
Refined products pipelines
60,575
44,966
61,904
49,957
SALA Gathering System
13,024
13,041
13,005
13,509
East Texas Crude Logistics System
23,259
30,666
21,481
26,690
Midland Gathering Assets
206,933
221,876
210,196
221,993
Plains Connection System
210,033
255,035
233,438
247,856
Delaware Gathering Assets:
Natural gas gathering and processing
(Mcfd) (1)
76,237
73,309
76,280
74,008
Crude oil gathering (average bpd)
123,927
117,017
123,718
110,408
Water disposal and recycling (average
bpd)
116,916
127,195
118,592
107,848
Wholesale Marketing &
Terminalling:
East Texas - Tyler Refinery sales volumes
(average bpd) (2)
71,082
69,310
68,779
52,158
Big Spring wholesale marketing throughputs
(average bpd)
81,422
75,164
79,019
76,763
West Texas wholesale marketing throughputs
(average bpd)
11,381
9,985
10,678
9,454
West Texas wholesale marketing margin per
barrel
$
2.99
$
7.01
$
2.60
$
6.27
Terminalling throughputs (average bpd)
(3)
159,260
134,323
147,937
113,926
(1)
Mcfd - average thousand cubic feet per
day.
(2)
Excludes jet fuel and petroleum coke.
(3)
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.
Retail Segment Selected Information
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
(Unaudited)
(Unaudited)
Number of stores (end of period)
250
247
250
247
Average number of stores
250
247
250
247
Average number of fuel stores
245
242
245
242
Retail fuel sales (thousands of
gallons)
43,126
45,687
82,809
85,651
Average retail gallons sold per average
number of fuel stores (in thousands)
176
189
339
354
Average retail sales price per gallon
sold
$
3.16
$
3.25
$
3.13
$
3.26
Retail fuel margin ($ per gallon) (1)
$
0.31
$
0.34
$
0.30
$
0.31
Merchandise sales (in millions)
$
79.6
$
84.3
$
150.4
$
158.2
Merchandise sales per average number of
stores (in millions)
$
0.3
$
0.3
$
0.6
$
0.6
Merchandise margin %
32.9
%
33.9
%
33.2
%
33.5
%
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Same-Store Comparison (2)
(Unaudited)
(Unaudited)
Change in same-store fuel gallons sold
(4.0
)%
(1.5
)%
(1.8
)%
(1.6
)%
Change in same-store merchandise sales
(5.2
)%
0.1
%
(4.7
)%
2.4
%
(1)
Retail fuel margin represents gross margin
on fuel sales in the retail segment, and is calculated as retail
fuel sales revenue less retail fuel cost of sales. The retail fuel
margin per gallon calculation is derived by dividing retail fuel
margin by the total retail fuel gallons sold for the period.
(2)
Same-store comparisons include
period-over-period changes in specified metrics for stores that
were in service at both the beginning of the earliest period and
the end of the most recent period used in the comparison.
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 June 30,
2024
$ in millions (unaudited)
Refining
Logistics
Retail
Corporate, Other and
Eliminations
Consolidated
Net revenues (excluding intercompany fees
and revenues)
$
3,097.9
$
107.7
$
216.1
$
—
$
3,421.7
Inter-segment fees and revenues
209.3
156.9
—
(366.2
)
—
Total revenues
$
3,307.2
$
264.6
$
216.1
$
(366.2
)
$
3,421.7
Cost of sales
3,356.4
190.2
176.0
(357.4
)
3,365.2
Gross margin
$
(49.2
)
$
74.4
$
40.1
$
(8.8
)
$
56.5
Three Months Ended June 30,
2023
$ in millions (unaudited)
Refining
Logistics
Retail
Corporate, Other and
Eliminations
Consolidated
Net revenues (excluding intercompany fees
and revenues)
$
3,849.0
$
113.9
$
232.7
$
—
$
4,195.6
Inter-segment fees and revenues
203.5
133.0
—
(336.5
)
—
Total revenues
$
4,052.5
$
246.9
$
232.7
$
(336.5
)
$
4,195.6
Cost of sales
3,996.9
179.0
188.5
(326.5
)
4,037.9
Gross margin
$
55.6
$
67.9
$
44.2
$
(10.0
)
$
157.7
Six Months Ended June 30,
2024
$ in millions (unaudited)
Refining
Logistics
Retail
Corporate, Other and
Eliminations
Consolidated
Net revenues (excluding intercompany fees
and revenues)
$
6,019.5
$
220.2
$
409.6
$
—
$
6,649.3
Inter-segment fees and revenues
396.0
296.5
—
(692.5
)
—
Total revenues
$
6,415.5
$
516.7
$
409.6
$
(692.5
)
$
6,649.3
Cost of sales
6,423.5
370.8
334.7
(666.3
)
6,462.7
Gross margin
$
(8.0
)
$
145.9
$
74.9
$
(26.2
)
$
186.6
Six Months Ended June 30,
2023
$ in millions (unaudited)
Refining
Logistics
Retail
Corporate, Other and
Eliminations
Consolidated
Net revenues (excluding intercompany fees
and revenues)
$
7,449.8
$
232.4
$
437.7
$
—
$
8,119.9
Inter-segment fees and revenues
397.2
258.0
—
(655.2
)
—
Total revenues
$
7,847.0
$
490.4
$
437.7
$
(655.2
)
$
8,119.9
Cost of sales
7,651.4
349.1
358.5
(633.9
)
7,725.1
Gross margin
$
195.6
$
141.3
$
79.2
$
(21.3
)
$
394.8
Pricing Statistics
Three Months Ended June
30,
Six Months Ended June
30,
(average for the period presented)
2024
2023
2024
2023
WTI — Cushing crude oil (per barrel)
$
80.83
$
73.57
$
78.95
$
74.78
WTI — Midland crude oil (per barrel)
$
81.73
$
74.40
$
80.17
$
75.98
WTS — Midland crude oil (per barrel)
$
80.99
$
73.55
$
79.26
$
74.48
LLS (per barrel)
$
83.69
$
75.67
$
81.73
$
77.27
Brent (per barrel)
$
85.06
$
77.74
$
83.42
$
79.94
U.S. Gulf Coast 5-3-2 crack spread (per
barrel) (1)
$
18.12
$
25.54
$
20.55
$
29.04
U.S. Gulf Coast 3-2-1 crack spread (per
barrel) (1)
$
17.72
$
25.42
$
19.80
$
28.32
U.S. Gulf Coast 2-1-1 crack spread (per
barrel) (1)
$
13.29
$
11.32
$
16.29
$
15.23
U.S. Gulf Coast Unleaded Gasoline (per
gallon)
$
2.30
$
2.34
$
2.26
$
2.37
Gulf Coast Ultra low sulfur diesel (per
gallon)
$
2.44
$
2.38
$
2.53
$
2.62
U.S. Gulf Coast high sulfur diesel (per
gallon)
$
1.89
$
1.45
$
1.92
$
1.68
Natural gas (per MMBTU)
$
2.37
$
2.33
$
2.24
$
2.53
(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 June
30,
Six Months Ended June
30,
Reconciliation of gross margin to
Refining margin to Adjusted refining margin
2024
2023
2024
2023
Gross margin
$
(49.2
)
$
55.6
$
(8.0
)
$
195.6
Add back (items included in cost of
sales):
Operating expenses (excluding depreciation
and amortization)
148.6
153.8
314.4
292.9
Depreciation and amortization
57.4
59.8
118.8
116.4
Refining margin
$
156.8
$
269.2
$
425.2
$
604.9
Adjusting
items
Net inventory LCM valuation loss
(benefit)
(1.9
)
(7.9
)
(10.7
)
(9.6
)
Other inventory impact (1) (2)
14.6
96.5
13.2
173.6
Unrealized inventory/commodity hedging
(gain) loss where the hedged item is not yet recognized in the
financial statements
0.1
6.7
9.1
(25.5
)
Unrealized RINs hedging (gain) loss where
the hedged item is not yet recognized in the financial statements
(3)
0.1
—
6.3
—
Total adjusting items
12.9
95.3
17.9
138.5
Adjusted refining margin
$
169.7
$
364.5
$
443.1
$
743.4
(1)
See further discussion in the "Significant
Transactions During the Quarter Impacting Results" section.
(2)
Starting with the quarter ended September
30, 2023, we updated our other inventory impact calculation to
exclude the impact of certain pipeline inventories not used in our
refinery operations. The impact to historical non-GAAP financial
measures is immaterial.
(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.
Calculation of Net Debt
June 30, 2024
December 31, 2023
Long-term debt - current portion
$
9.5
$
44.5
Long-term debt - non-current portion
2,452.2
2,555.3
Total long-term debt
2,461.7
2,599.8
Less: Cash and cash equivalents
657.9
822.2
Net debt - consolidated
1,803.8
1,777.6
Less: DKL net debt
1,561.2
1,700.0
Net debt, excluding DKL
$
242.6
$
77.6
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version on businesswire.com: https://www.businesswire.com/news/home/20240806810970/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).
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