This was a modest trim compared to typical trades by the Delek executive. On October 29, 2025, Director Ezra Uzi Yemin executed an open-market sale of 7,388 shares of Delek US Holdings (DK 1.70%), as disclosed in the SEC Form 4 filing.Transaction summaryMetricValueShares sold7,388Transaction value~$281,300Post-transaction shares166,580Post-transaction value (direct ownership)~$6.4 millionTransaction value calculated using the SEC Form 4 weighted average purchase price of $38.08 as of October 29, 2025.Key qu ...

One key earnings detail may explain why this investor jumped into Delek stock.Florida-based GeoSphere Capital Management disclosed a new position in Delek US Holdings (DK 1.26%), adding 150,000 shares valued at approximately $4.8 million, in its November 14 SEC filing.What HappenedAccording to a filing with the Securities and Exchange Commission dated November 14, GeoSphere Capital Management established a new stake in Delek US Holdings (DK 1.26%). The fund acquired 150,000 shares during the third quarter, ...

Core Insights - Delek US Holdings, Inc. (DK) has significantly outperformed its peers and the broader Oils & Energy sector, with a year-to-date increase of over 106.6%, compared to a 19% gain in the refining sub-industry and a 6% rise in the overall sector [1][7][21] Company Performance - DK's strong performance is attributed to exceptional earnings in Q3, with adjusted earnings per share of $1.52 and adjusted EBITDA of $759.6 million, bolstered by a $280.8 million benefit from Small Refinery Exemptions (SRE) [9][21] - The company anticipates approximately $400 million in cash inflow from SRE monetization over the next six to nine months, which will enhance financial flexibility and shareholder value [10][21] - Delek Logistics Partners (DKL), a subsidiary of DK, has raised its full-year 2025 EBITDA guidance to between $500 million and $520 million, indicating strong performance and growth potential [11] Market Position and Opportunities - DK is well-positioned in the U.S. downstream sector, producing essential fuels and operating a logistics network that supports the national fuel supply chain [3][4] - The company is capitalizing on opportunities in the Delaware Basin, leveraging its first-mover advantage in sour gas solutions, which is expected to drive further growth [12][21] Challenges and Risks - The company's refining business is exposed to cyclical and volatile refining margins, which could impact profitability despite strong operational execution [15][20] - Execution risks are present in midstream growth initiatives, particularly related to the ramp-up of new assets like the Libby 2 plant [17][20] - DK's consolidated net debt stands at $2.55 billion, which may limit financial flexibility during downturns and expose the company to risks associated with rising interest rates [19][20]

Core Insights - Delek US Holdings, Inc. (DK) reported third-quarter 2025 adjusted earnings per share of $1.52, significantly exceeding the Zacks Consensus Estimate of 28 cents, and showing a substantial improvement from the adjusted loss of $1.45 in the same quarter last year, driven by enhanced performance across segments and an 18.1% reduction in operating expenses [1][2][8] Financial Performance - Net revenues decreased by 5.1% year over year to $2.9 billion, primarily due to lower revenues from the refining segment, but still surpassed the Zacks Consensus Estimate by $177 million [2] - Adjusted EBITDA for the quarter was $759.6 million, a sharp increase from $70.6 million reported a year earlier, and also exceeded estimates by $177 million [2] - Total operating expenses fell by approximately 18.1% year over year to $2.6 billion, with capital program expenditures amounting to $90.6 million [8] Segment Performance - The refining segment achieved an adjusted EBITDA profit of $696.9 million, a significant rise from the $10.2 million profit in the prior-year quarter, surpassing profit estimates of $3.1 million [4][11] - The logistics segment reported adjusted EBITDA of $131.5 million, up from $106.1 million in the year-ago quarter, driven by recent acquisitions and higher wholesale margins, also beating estimates of $85.2 million [7][11] Dividends and Share Repurchase - The board of directors approved a regular quarterly dividend of 25.5 cents per share, to be paid on November 17, 2025, to shareholders of record as of November 10, 2025 [3] - During the same period, the company repurchased approximately $15 million worth of its common shares and distributed $15.3 million in dividends [3][11] Future Guidance - The company anticipates a strong close to the fourth quarter, with expected operating expenses between $205 million and $220 million, and general and administrative expenses of $52 million to $57 million [12] - Projected crude throughput is expected to remain healthy, ranging from 252,000 to 284,000 barrels per day [13] - For 2025, the company expects improved cash-flow visibility, targeting at least $180 million in annual run-rate improvement under the Enterprise Optimization Plan, and anticipates receiving about $400 million from the monetization of historical Small Refinery Exemption credits [14]

Core Insights - Delek US Holdings, Inc. reported third-quarter sales of $2.887 billion, exceeding analyst expectations of $2.763 billion [1] - The company posted adjusted earnings of $7.13 per share, a significant improvement from a loss of $1.45 per share in the same quarter last year [1] Financial Performance - The strong performance in the third quarter is attributed to effective EOP (End of Period) contributions, which have exceeded previous guidance [2] - Delek US's free cash flow generation is expected to improve significantly in both the short and long term due to clarity on SREs (Strategic Resource Enhancements) [2] Market Position and Future Outlook - Delek US is strengthening its position in the Permian basin, with a raised guidance for processing plant contributions to $500 – $520 million [2] - The company is making progress on its midstream assets, with ongoing AGI (Asset Growth Initiatives) and increasing economic separation from DK [2] Analyst Ratings and Price Targets - Wells Fargo analyst Sam Margolin maintained an Overweight rating on Delek US and raised the price target from $43 to $53 [5] - Scotiabank analyst Paul Cheng maintained a Sector Perform rating and increased the price target from $33 to $40 [5]

Financial Performance - Consolidated net income for Q3 2025 was $194.8 million, compared to a net loss of $67.5 million in Q3 2024, with net income attributable to Delek at $178.0 million or $2.96 per basic share [266]. - Net revenues for Q3 2025 were $2,887.0 million, a decrease of $155.4 million or 5.1% from $3,042.4 million in Q3 2024, primarily due to a 7.1% decrease in the average price of U.S. Gulf Coast gasoline [268]. - Segment EBITDA attributable to Delek for Q3 2025 was $566.1 million, compared to $81.4 million in Q3 2024, indicating significant operational improvement [262]. - Refining margin for Q3 2025 was $616.7 million, an increase from $165.5 million in Q3 2024, reflecting improved refining performance [262]. - EBITDA increased by $451.3 million, or 3525.8%, in Q3 2025 compared to Q3 2024, primarily due to an increase in refining margin [319]. Operational Highlights - The refining segment reported higher margins in Q3 2025 compared to Q2 2025 and Q3 2024, driven by increased crack spreads [203]. - The refining segment has a combined nameplate capacity of 302,000 bpd as of September 30, 2025, with individual capacities of 75,000 bpd, 80,000 bpd, 73,000 bpd, and 74,000 bpd across four refineries [223]. - Total sales volume of refined products averaged 317,587 bpd in Q3 2025, up from 309,175 bpd in Q3 2024, representing a 2.9% increase [303]. - Total production averaged 309,739 bpd in Q3 2025, compared to 303,882 bpd in Q3 2024, indicating a growth of 1.4% [303]. - Crude oil throughput utilization reached 100.6% based on nameplate capacity in Q3 2025, up from 97.8% in Q3 2024 [303]. Cost and Expenses - Cost of materials and other for Q3 2025 was $2,165.7 million, a decrease of $623.0 million or 22.3% from $2,788.7 million in Q3 2024, driven by a decrease in crude oil feedstock costs [269]. - Operating expenses for Q3 2025 increased to $231.3 million, an increase of $46.2 million or 25.0% compared to $185.1 million in Q3 2024, primarily due to increased sales volume and acquisition-related costs [271]. - General and administrative expenses for Q3 2025 were $76.8 million, an increase of $6.4 million or 9.1% from $70.4 million in Q3 2024, driven by incentive compensation [273]. - Total operating costs and expenses for Q3 2025 were $2,591.3 million, compared to $3,164.3 million in Q3 2024, reflecting a decrease in overall costs [270]. Strategic Initiatives - The enterprise optimization plan (EOP) aims to improve financial health by reducing general and administrative expenses, operating expenses, and interest expenses [205]. - The company plans to execute strategic initiatives that may include monetizing its investment in Delek Logistics to unlock value [230]. - Delek is focused on identifying investment opportunities that fit its sustainability view, including strategic investments in renewables or carbon capture [230]. - The company continues to focus on operational excellence, financial strength, and strategic initiatives to enhance scale and diversify revenue streams [207]. Acquisitions and Investments - Delek Logistics acquired Gravity Water Intermediate Holdings LLC for a total consideration of $300.8 million, consisting of $209.3 million in cash and 2,175,209 common units [209]. - The El Dorado Purchase Agreement involves a cash consideration of $25.0 million for the related El Dorado rail facility assets, set to close on January 1, 2026 [214]. - The acquisition of Gravity is synergistic with Delek's recent acquisition of H2O Midstream, enhancing integrated crude and produced water services [231]. Shareholder Returns - As of September 30, 2025, Delek returned $106.1 million to shareholders through dividends and share buybacks [206]. - During the nine months ended September 30, 2025, Delek repurchased 3,254,403 shares for a total of $59.4 million, with $484.2 million remaining under the stock repurchase program [231]. - The company approved a quarterly cash dividend of $0.255 per share on October 29, 2025 [339]. Liquidity and Capital Structure - Total liquidity as of September 30, 2025, amounted to $2,304.6 million, including $1,673.7 million in unused credit commitments and $630.9 million in cash [339]. - As of September 30, 2025, total cash and cash equivalents were $630.9 million, with total long-term indebtedness of approximately $3,177.3 million [349]. - The company has the ability to incur an additional $400.0 million of secured debt under the Delek Term Loan Credit Facility [341]. - The company’s total unused credit commitments or borrowing base availability under revolving credit facilities was approximately $1,673.7 million [349]. Market Conditions - The near-term economic outlook remains uncertain due to geopolitical instability and commodity market volatility [205]. - The company faces challenges from regulatory costs and energy price volatility, particularly affecting smaller refineries [299]. - The volatility in RIN prices continues to affect refining margins, with significant cash outflows for additional RINs purchases [249].

Financial Data and Key Metrics Changes - Delek reported adjusted EPS of $1.52 and adjusted EBITDA of approximately $319 million for Q3 2025, reflecting strong momentum and progress from the enterprise optimization plan [3][14] - Net income for the quarter was $178 million, or $2.93 per share, while adjusted net income was $434 million, or $7.13 per share, with adjusted EBITDA reaching approximately $760 million [14][15] - Cash flow from operations was $44 million, but adjusted for working capital, it improved to $150 million, a $202 million increase compared to Q3 last year [16] Business Line Data and Key Metrics Changes - The supply and marketing segment contributed approximately $130 million in the quarter, with wholesale marketing generating about $70 million [12][13] - The logistics segment delivered approximately $132 million in adjusted EBITDA, marking an $11 million increase over the previous record [15] - The enterprise optimization plan (EOP) contributed approximately $60 million to the P&L in Q3, leading to an increase in the annual run rate EOP improvement target from $150 million to at least $180 million [5][9] Market Data and Key Metrics Changes - The refining system achieved record throughput, with Krotz Springs setting a record high [11] - Total throughput in Tyler was 76,000 barrels per day, with a production margin of $11.32 per barrel [11] - El Dorado's throughput was approximately 83,000 barrels per day, with a production margin of $7.43 per barrel [12] Company Strategy and Development Direction - The company is focused on safe and reliable operations, with a strong operational quarter across its refining system [4] - Delek is committed to a disciplined capital allocation framework, having paid approximately $15 million in dividends and repurchased $15 million of its shares [9] - The company is optimistic about the future, expecting to finish 2025 strong and build on current momentum [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the monetization of granted RINs, expecting approximately $400 million in profits over the next six to nine months [6][24] - The company anticipates continued strength in distillate cracks and a positive outlook for Q4 [47] - Management emphasized the importance of the EOP as a core strength and a continuous improvement culture within the organization [5][40] Other Important Information - The company has increased its full-year EBITDA guidance for Delek Logistics to between $500 million and $520 million [4][9] - The EPA's approval of several SRE petitions is seen as a critical part of the current administration's energy policy, with implications for future profitability [6][24] Q&A Session Summary Question: Refining throughput guidance and RVO risk - Management clarified that they expect to qualify for 100% of SREs for 2025 and are confident in the legal backing for their petitions [20][25] Question: Clarification on total adjusted refining margin - The reported total adjusted refining margin of $688.6 million includes SRE benefits, while gross margins reported do not [29][30] Question: Impact of Permian Sour Gas opportunity - Management highlighted the strategic advantage of being early in the Permian Sour Gas market and the need for rapid solutions for sour gas [32][35] Question: Timing of SRE cash impact on balance sheet - Management expects to see cash from SRE monetization in the next six to nine months [37][38] Question: Drivers of recent EOP cash savings guidance increase - Management emphasized that EOP is a lifestyle across the organization, with ongoing initiatives leading to improved margins and cash flow [39][40] Question: Strength of wholesale and supply results - Management noted that structural improvements in the wholesale business are a significant part of the EOP progress [43][45] Question: Sensitivity of results to Group 3 pricing - Management stated that the enterprise optimization plan aims to reduce dependence on specific market conditions, leading to more structural improvements [58][59] Question: Monetization of $400 million in RINs - Management confirmed that $400 million is a solid number to model for future cash flow from RINs [60][61]

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Financial Performance - Adjusted EPS was $7.13 in 3Q 2025[17] - Adjusted EBITDA reached $759.6 million[18] - CFO (ex WC and SREs) amounted to $150 million[19] Enterprise Optimization Plan (EOP) - The company achieved approximately $60 million in EOP improvements in 3Q 2025[9] - The run-rate cash flow improvement guidance is raised to at least $180 million from the previous $130 - $170 million[12] - $50 million margin improvement plan stems from enhanced logistics, reduced costs, higher quality product slate and higher yields at El Dorado[37] Delek Logistics (DKL) - DKL is increasing its expected 2025 EBITDA range to $500 million[13] - Increased DKL Distribution: $1.12 per unit ($4.48 per unit annualized)[15] Small Refinery Exemptions (SREs) - The majority of pending 2019-2024 SRE petitions were approved[13] - A cash inflow of approximately $400 million is expected over the next six to nine months due to SREs[14] - The impact of (50% RVO Exemption 1Q to 3Q 2025) is $160.2 million[21] Capital Returns - Approximately $30 million was allocated to dividends and buybacks in 3Q 2025[15, 17] - Delek has led the group in the last twelve months in total shareholder returns, outperforming the group average by 7%[26]

Financial Performance - Delek US reported a net income of $178.0 million or $2.93 per share for Q3 2025, compared to a net loss of $76.8 million or $(1.20) per share in Q3 2024[4]. - Adjusted net income for Q3 2025 was $434.2 million or $7.13 per share, significantly up from an adjusted loss of $93.0 million or $(1.45) per share in the same quarter last year[5]. - Total net revenues for Q3 2025 were $2,887.0 million, a decrease of 5.1% from $3,042.4 million in Q3 2024[23]. - Operating income for Q3 2025 was $295.7 million, compared to a loss of $121.9 million in Q3 2024[23]. - Cash provided by operating activities from continuing operations was $44.3 million in Q3 2025, compared to a cash outflow of $22.1 million in Q3 2024[24]. - Reported net income attributable to Delek for Q3 2025 was $178.0 million, a significant improvement from a loss of $76.8 million in Q3 2024[23]. - Reported diluted net income per share for Q3 2025 was $2.93, compared to a loss of $(1.20) in Q3 2024[37]. - Adjusted net income per share for Q3 2025 was $7.13, while the adjusted net loss per share for Q3 2024 was $(1.45)[37]. EBITDA and Adjustments - Adjusted EBITDA for Q3 2025 reached $759.6 million, a substantial increase from $70.6 million in Q3 2024, driven by a $280.8 million benefit from Small Refinery Exemptions (SREs)[4][5]. - The refining segment's adjusted EBITDA was $696.9 million in Q3 2025, compared to $10.2 million in Q3 2024, reflecting a 46.8% increase in benchmark crack spreads[6]. - Total adjusting items for Q3 2025 amounted to $347.4 million, while in Q3 2024, it was a negative $19.1 million[38]. - Adjusted EBITDA from continuing operations for Q3 2025 was $760.0 million, compared to $62.4 million in Q3 2024[39]. - Total adjusting items for Q3 2025 amounted to $71.9 million, compared to a negative $16.7 million in Q3 2024[50]. Segment Performance - The logistics segment's adjusted EBITDA increased to $131.5 million in Q3 2025 from $106.1 million in the prior-year quarter, attributed to acquisitions and increased wholesale margins[7]. - The refining segment contributed $464.1 million to the segment EBITDA in Q3 2025, while logistics contributed $102.0 million[41]. - Segment EBITDA attributable to Delek US for Q3 2025 reached $566.1 million, a substantial increase from $81.4 million in Q3 2024[41]. - The company reported total revenues of $3,103.4 million for the three months ended September 30, 2025, compared to $3,241.9 million for the same period in 2024, reflecting a decrease of approximately 4.3%[47]. Cash Flow and Debt - As of September 30, 2025, Delek US had a cash balance of $630.9 million and total consolidated long-term debt of $3,177.3 million, resulting in a net debt of $2,546.4 million[9]. - Cash and cash equivalents at the end of Q3 2025 were $630.9 million, down from $1,037.6 million at the end of Q3 2024[24]. - Long-term debt, net of current portion, increased to $3,167.8 million as of September 30, 2025, from $2,755.7 million at the end of 2024[22]. - Total long-term debt as of September 30, 2025, was $3,177.3 million, an increase from $2,765.2 million as of December 31, 2024[50]. Operational Metrics - Total sales volume of refined products averaged 317,587 barrels per day (bpd) in Q3 2025, up from 309,175 bpd in Q3 2024, representing a 2.9% increase[44]. - Total refining production margin increased to $9.59 per barrel in Q3 2025, compared to $4.88 per barrel in Q3 2024, marking a 96% increase[44]. - The average water disposal and recycling throughput in the Midland Water Gathering System increased significantly to 616,484 bpd in 2025 from 311,290 bpd in 2024[46]. - Operating expenses per barrel of throughput were $5.43 in Q3 2025, compared to $5.12 in Q3 2024, reflecting a 6% increase[44]. Costs and Expenses - The company incurred significant costs to comply with Renewable Identification Number (RIN) obligations due to the EPA's decisions on Small Refinery Exemption petitions[25]. - The company reported impairment charges of $16.3 million ($12.6 million after-tax) primarily related to software development costs for the three months ended September 30, 2025[27]. - Restructuring costs totaled $34.1 million ($26.4 million after-tax) in Q3 2025, associated with a business transformation initiative[29]. - General and administrative expenses, excluding transaction and restructuring costs, were $49.8 million for the three months ended September 30, 2025[30]. Market Conditions - The U.S. Gulf Coast 5-3-2 crack spread averaged $22.57 per barrel in the three months ended September 30, 2025, compared to $15.64 per barrel in the same period of 2024, representing a year-over-year increase of approximately 44.5%[49]. - The average WTI Cushing crude oil price per barrel was $65.06 in the three months ended September 30, 2025, down from $75.28 in the same period of 2024, indicating a decrease of approximately 13.5%[49].