BRENTWOOD, Tenn.--(BUSINESS WIRE)--Delek US Holdings, Inc. (NYSE:DK) ("Delek†) today announced that its Board of Directors has approved a quarterly dividend of $0.255 per share, to be paid on November 17, 2025, to shareholders as of record on November 10, 2025. 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 i. ...

Company Overview - Delek US Holdings, Inc. is a diversified downstream energy company with assets in petroleum refining, logistics, pipelines, and renewable fuels [3] - 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 [3] Recent Developments - Delek US Holdings plans to issue a press release summarizing its third quarter 2025 results before the U.S. stock market opens on November 7, 2025, followed by a conference call at 9:30 a.m. CT [1] - The company welcomed the U.S. Environmental Protection Agency's decision to grant more than half of its pending small refinery exemptions for the years 2019-2024, which is expected to help ensure affordable energy prices and high-paying jobs [7] - The company reported financial results for its second quarter ended June 30, 2025, achieving its original $120 million EOP target one quarter in advance, indicating progress in improving overall profitability [8] Financial Information - Delek US Holdings announced a quarterly dividend of $0.255 per share, to be paid on August 18, 2025, to shareholders of record on August 11, 2025 [9] Logistics Operations - The logistics operations include Delek Logistics Partners, LP, a growth-oriented master limited partnership focused on owning and operating midstream energy infrastructure assets, with Delek US Holdings owning approximately 63.4% of it as of June 30, 2025 [4]

Core Thesis - Delek US Holdings, Inc. (DK) is viewed as a compelling investment opportunity due to multiple underappreciated catalysts and a strong balance sheet, with shares trading at $32.72 as of September 24th [1][2]. Financial Metrics - DK's trailing P/E is 4.61 and forward P/E is 20.33, indicating potential undervaluation [1]. - The company has a market capitalization of approximately $1.7 billion, with potential cash from EPA-approved Renewable Identification Number (RIN) SRE refunds estimated between $600 million to $900 million, representing about 35% to 50% of its market cap [2]. Operational Strengths - Delek operates four diesel-focused refineries and benefits from favorable midstream and refining conditions, including low inventories and rising diesel cracks, which enhance margins [2]. - The company owns a majority stake in DKL, which generates over 80% of its EBITDA from third-party operations and is trading at depressed multiples, presenting an opportunity for substantial net asset value unlocking through a potential spin-off or sale [3]. Shareholder Value Initiatives - DK has initiated a $565 million share repurchase program, which could significantly reduce its 60 million share float [2]. - The company offers a 6.3% dividend yield, indicating strong shareholder alignment and capital structure [3]. Market Outlook - Analysts project significant upside from SRE relief, with partial approvals potentially adding 20% to the stock price and full approvals capable of doubling it [4]. - Despite a 144% rally in recent months, the market has not fully priced in the potential cash from RIN refunds, buybacks, DKL value, and favorable diesel macro conditions [3][4]. - The stock is trading below its sum-of-the-parts value, suggesting a potential for meaningful re-rating in the near future [4].

Group 1: Company Analysis - Chevron Corp is highlighted for its strong performance in the energy sector, benefiting from rising oil prices and increased demand for energy [1] - Cogent Communications Holdings Inc is noted for its growth in the telecommunications industry, with a focus on expanding its fiber network to meet increasing data demands [1] - T-Mobile US Inc continues to show robust subscriber growth, driven by competitive pricing and enhanced network capabilities [1] Group 2: Industry Trends - The energy sector is experiencing a rebound, with oil prices climbing significantly, which is positively impacting companies like Chevron [1] - The telecommunications industry is undergoing rapid transformation, with companies like Cogent Communications investing heavily in infrastructure to support higher data usage [1] - The competitive landscape in the telecom sector is intensifying, with T-Mobile US Inc leveraging its market position to attract new customers [1]

Core Insights - Delek US Holdings, Inc. (NYSE:DK) experienced a significant share price decline of 10.92% from September 5 to September 12, 2025, ranking it among the energy stocks that lost the most during that week [1] Company Overview - Delek US Holdings is a diversified downstream energy company involved in petroleum refining, asphalt, renewable fuels, and logistics [2] Recent Performance and Market Reactions - The stock had previously rallied after Wolfe Research upgraded it from 'Peer Perform' to 'Outperform' with a price target of $40, benefiting from small refining exemptions granted by the Trump administration [3] - The recent downturn in share price may be attributed to profit-taking by investors following the earlier rally [3] Insider Activity - Investor confidence was impacted by the sale of 7,135 shares by Robert G. Wright, Senior Vice President and Deputy CFO, with a total transaction value of $208,627 [4]

Core Insights - Delek US Holdings, Inc. (DK) is a significant player in the U.S. downstream energy market, focusing on refining crude oil and managing logistics operations, producing essential fuel products like gasoline, diesel, and jet fuel [1] - Over the past 12 months, DK's share price surged by 67%, outperforming peers such as CVR Energy (40.4%), Valero Energy (16.9%), and Marathon Petroleum (10.4%), while the refining and marketing sub-industry declined by 3.1% [2] - The company's strong performance is attributed to improved refining margins, a robust balance sheet, record throughput levels, and a disciplined capital return strategy [8][11][12] Financial Performance - DK's realized refining margin increased by 96 cents per barrel compared to the previous quarter, despite a benchmark Gulf Coast 5-3-2 crack spread that was only 11.4% higher year over year [9] - As of June 30, 2025, DK maintained a strong standalone financial position with $614.1 million in cash and $889.3 million in long-term debt, resulting in a net debt position of $275.2 million [10] - The refining segment reported adjusted EBITDA of $113.6 million, more than doubling year over year, indicating strong operational performance [11] Capital Return Strategy - DK has shown a commitment to returning capital to shareholders, paying $15.5 million in dividends and repurchasing $13 million of common stock in the second quarter, with total capital returns exceeding $150 million over the past 12 months [12] - The company is executing a "Sum of the Parts" strategy to unlock midstream asset value, increasing third-party EBITDA from 40% to 80% and growing 2025 EBITDA guidance to $480-$520 million [13] Market Trends and Challenges - DK's profitability is closely tied to commodity price and crack spread volatility, with recent performance benefiting from a favorable margin environment [14] - The company carries a substantial consolidated long-term debt of $3.1 billion, which increases financial risk, especially during industry downturns [15] - Long-term demand threats from the transition to electric vehicles and renewable energy, along with intense industry competition, pose challenges to DK's market position [18] Regulatory Environment - The company's outlook is partially dependent on the successful outcome of pending Small Refinery Exemption petitions, which are outside of its control [19]

Group 1 - Delek US (NYSE: DK) shares have increased by 13% over the past year, indicating solid performance [1] - The company has benefited from a recovery in the refining market following a challenging winter [1] - Delek US has been divesting assets, which has contributed to the increase in share value [1]

Core Insights - Delek US Holdings, Inc. (DK) reported a narrower adjusted net loss of 56 cents per share for Q2 2025, compared to a loss of 92 cents in the same quarter last year, attributed to lower operating costs year-over-year [1] - Net revenues decreased by 16.4% year-over-year to $2.8 billion, missing the Zacks Consensus Estimate by $117 million [1] - Adjusted EBITDA loss was $170.2 million, contrasting with a profit of $107.5 million in the prior-year period [2] Financial Performance - Total operating expenses fell by approximately 15.3% year-over-year to $2.8 billion, with capital expenditures amounting to $164 million during the same period [9] - As of June 30, 2025, the company had cash and cash equivalents of $615.5 million and long-term debt of $3.1 billion, resulting in a debt-to-total capital ratio of about 91.3 [9][10] - The refining segment reported an adjusted EBITDA profit of $113.6 million, significantly up from $42.1 million in the prior-year quarter, driven by an 11.4% increase in benchmark crack spreads [6] Strategic Initiatives - DK advanced its Enterprise Optimization Plan (EOP) and Sum-of-the-Parts (SOTP) strategy, generating approximately $30 million in cash flow improvements during Q2 2025 [3] - Delek Logistics Partners (DKL) launched the new Libby 2 gas processing facility, enhancing processing capacity, and completed a $700 million debt issuance to support growth strategies [4] - The company repurchased about $13 million of its common shares in Q2 and an additional $7.5 million after the quarter ended [5] Segment Performance - The logistics segment achieved an adjusted EBITDA of $120.2 million, up from $100.6 million in the year-ago quarter, although it missed the estimate of $137.1 million [8] - The company expects total crude throughput in Q3 2025 to be between 291,000 and 306,000 barrels per day, with total throughput anticipated in the range of 302,000-317,000 barrels per day [12] Future Guidance - DK anticipates operating expenses for Q3 2025 to be between $210 million and $225 million, with general and administrative expenses expected to fall between $52 million and $57 million [11] - The company plans to increase its EOP guidance to a range of $130 million to $170 million for cash flow improvements starting in the second half of 2025, up from the original target of $80 million to $120 million [13] - For the full year 2025, total capital expenditures are expected to be $405 million, with specific allocations for refining, logistics, and corporate expenses [14]

PART I. FINANCIAL INFORMATION This part presents the unaudited condensed consolidated financial statements and management's analysis for Q2 2025 [Item 1. Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) This section presents Delek US Holdings, Inc.'s unaudited condensed consolidated financial statements for June 30, 2025, and related notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section summarizes the company's assets, liabilities, and equity as of June 30, 2025 and December 31, 2024 | Metric | June 30, 2025 (Millions) | December 31, 2024 (Millions) | Change (Millions) | % Change | | :-------------------------------- | :------------------------- | :--------------------------- | :---------------- | :------- | | **Assets** | | | | | | Total current assets | $2,321.6 | $2,331.9 | $(10.3) | -0.44% | | Property, plant and equipment, net | $3,248.9 | $2,940.0 | $308.9 | 10.51% | | Total assets | $7,068.8 | $6,665.8 | $403.0 | 6.05% | | **Liabilities & Equity** | | | | | | Total current liabilities | $2,905.8 | $2,516.0 | $389.8 | 15.49% | | Total non-current liabilities | $3,868.1 | $3,574.6 | $293.5 | 8.21% | | Total stockholders' equity | $294.9 | $575.2 | $(280.3) | -48.73% | | Total liabilities and stockholders' equity | $7,068.8 | $6,665.8 | $403.0 | 6.05% | - Total assets increased by **$403.0 million (6.05%)** from December 31, 2024, primarily driven by a significant increase in net property, plant, and equipment[9](index=9&type=chunk) - Total stockholders' equity decreased by **$280.3 million (48.73%)**, largely due to a substantial increase in retained earnings deficit[9](index=9&type=chunk) [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) This section presents the company's revenues, costs, and net loss for the three and six months ended June 30, 2025 and 2024 | Metric | Three Months Ended June 30, 2025 (Millions) | Three Months Ended June 30, 2024 (Millions) | Six Months Ended June 30, 2025 (Millions) | Six Months Ended June 30, 2024 (Millions) | | :--------------------------------------- | :---------------------------------------- | :---------------------------------------- | :--------------------------------------- | :---------------------------------------- | | Net revenues | $2,764.6 | $3,308.1 | $5,406.5 | $6,436.1 | | Total operating costs and expenses | $2,798.1 | $3,303.5 | $5,565.8 | $6,402.3 | | Operating (loss) income | $(33.5) | $4.6 | $(159.3) | $33.8 | | Loss from continuing operations before income tax benefit | $(103.4) | $(42.6) | $(298.4) | $(78.6) | | Net loss attributable to Delek | $(106.4) | $(37.2) | $(279.1) | $(69.8) | | Basic loss per share | $(1.76) | $(0.58) | $(4.55) | $(1.09) | - Net revenues decreased by **16.4%** for the three months and **16.0%** for the six months ended June 30, 2025, compared to the prior year periods[12](index=12&type=chunk) - Net loss attributable to Delek significantly increased to **$(106.4) million** for Q2 2025 and **$(279.1) million** for H1 2025, compared to prior year periods[12](index=12&type=chunk) [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This section presents the company's comprehensive income and loss for the three and six months ended June 30, 2025 and 2024 | Metric | Three Months Ended June 30, 2025 (Millions) | Three Months Ended June 30, 2024 (Millions) | Six Months Ended June 30, 2025 (Millions) | Six Months Ended June 30, 2024 (Millions) | | :--------------------------------------- | :---------------------------------------- | :---------------------------------------- | :--------------------------------------- | :---------------------------------------- | | Net loss | $(90.1) | $(26.1) | $(248.6) | $(51.3) | | Comprehensive loss | $(90.1) | $(26.1) | $(248.6) | $(51.3) | | Comprehensive income attributable to non-controlling interest | $16.3 | $11.1 | $30.5 | $18.5 | | Comprehensive loss attributable to Delek | $(106.4) | $(37.2) | $(279.1) | $(69.8) | - Comprehensive loss attributable to Delek significantly widened to **$(106.4) million** for Q2 2025 from **$(37.2) million** in Q2 2024, and to **$(279.1) million** for the six months ended June 30, 2025, from **$(69.8) million** in the prior year period[16](index=16&type=chunk) [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) This section details changes in the company's stockholders' equity from December 31, 2024, to June 30, 2025 Gravity Acquisition Purchase Price Allocation (January 2, 2025) | Metric | June 30, 2025 (Millions) | December 31, 2024 (Millions) | Change (Millions) | | :-------------------------------- | :------------------------- | :--------------------------- | :---------------- | | Common Stock (Amount) | $0.8 | $0.8 | $0.0 | | Additional Paid-in Capital | $1,243.3 | $1,215.9 | $27.4 | | Accumulated Other Comprehensive Loss | $(4.2) | $(4.1) | $(0.1) | | Treasury Stock (Amount) | $(694.1) | $(694.1) | $0.0 | | Retained Earnings | $(519.8) | $(205.7) | $(314.1) | | Non-Controlling Interests in Subsidiaries | $268.9 | $262.4 | $6.5 | | Total Stockholders' Equity | $294.9 | $575.2 | $(280.3) | - Total stockholders' equity decreased by **$280.3 million** from December 31, 2024, to June 30, 2025, primarily due to a significant increase in retained earnings deficit[19](index=19&type=chunk)[23](index=23&type=chunk) - The company repurchased **2,694,470 common shares** for **$44.4 million** during the six months ended June 30, 2025[23](index=23&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents the company's cash flow activities for the six months ended June 30, 2025 and 2024 | Cash Flow Activity | Six Months Ended June 30, 2025 (Millions) | Six Months Ended June 30, 2024 (Millions) | Change (Millions) | | :----------------------------------- | :---------------------------------------- | :---------------------------------------- | :---------------- | | Net cash (used in) provided by operating activities | $(11.0) | $118.3 | $(129.3) | | Net cash used in investing activities | $(477.6) | $(104.1) | $(373.5) | | Net cash provided by (used in) financing activities | $368.5 | $(178.5) | $547.0 | | Net decrease in cash and cash equivalents | $(120.1) | $(164.3) | $44.2 | | Cash and cash equivalents at the end of the period | $615.5 | $657.9 | $(42.4) | - Net cash used in operating activities was **$(11.0) million** for the six months ended June 30, 2025, a significant decrease from **$118.3 million** provided in the prior year, primarily due to lower cash receipts from customers and higher debt interest payments[28](index=28&type=chunk)[337](index=337&type=chunk) - Investing activities used **$477.6 million**, a substantial increase from **$104.1 million** in the prior year, mainly driven by the **$300.8 million** Gravity Acquisition and increased purchases of property, plant, and equipment[28](index=28&type=chunk)[338](index=338&type=chunk) - Financing activities provided **$368.5 million**, a reversal from **$(178.5) million** used in the prior year, largely due to

Financial Data and Key Metrics Changes - Delek reported a net loss of $106 million or negative $1.76 per share for the second quarter, with an adjusted net loss of $33 million or negative $0.56 per share and adjusted EBITDA of $170.2 million [23][24] - The increase in adjusted EBITDA was driven by a $141 million increase in refining, primarily due to a higher margin environment and sequentially higher throughputs [23][24] - Cash flow provided by operations was $51 million, including a net loss and an inflow of approximately $51 million from timing-related working capital movements [24] Business Line Data and Key Metrics Changes - The logistics segment delivered approximately $120 million in adjusted EBITDA, marking a $4 million increase over the previous record [24] - Supply and marketing contributed a gain of $26 million, with wholesale marketing generating approximately $19 million [21] - The refining segment saw realized refining margins increase by $0.96 per barrel compared to the previous year, despite a decline in benchmark net margin [16] Market Data and Key Metrics Changes - The company noted a positive trend in diesel demand, with diesel inventories at five-year lows and gasoline showing a draw of 1.2 million barrels [45][48] - The outlook for the market remains optimistic, particularly for diesel, as high utilization rates continue despite low inventories [48] Company Strategy and Development Direction - Delek is focused on its enterprise optimization plan (EOP), increasing guidance on EOP improvements to a run rate of $130 million to $170 million starting in the second half of the year [4][8] - The company aims to improve cash flow generation through structural changes in operations, including cost reductions and enhanced operational efficiency [7][35] - Delek is committed to maintaining a disciplined approach to capital allocation, balancing dividends, share buybacks, and strengthening the balance sheet [12][41] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the small refinery exemption (SRE) petitions, indicating confidence in a favorable outcome based on legal precedents [30][31] - The company anticipates continued strong performance in refining and logistics, with expectations for increased throughput and margin improvements [16][19][66] Other Important Information - Delek paid approximately $16 million in dividends and repurchased about $13 million of its shares during the quarter [12] - The company completed a successful high-yield offering, increasing liquidity at DKL to over $1 billion, which supports its growth initiatives [9][24] Q&A Session Summary Question: Confidence around small refinery exemption (SRE) - Management expressed optimism about the SRE outcome, highlighting the economic harm caused by the pending issue and the company's compliance during the petition period [30][31] Question: EOP guidance and potential for further upside - Management confirmed that EOP is a continuous improvement initiative, with increased guidance reflecting confidence in margin improvements and operational efficiencies [35][38] Question: Allocation of cash flow and capital returns strategy - The company maintains a balanced approach to capital allocation, focusing on dividends, share buybacks, and strengthening the balance sheet [41][42] Question: Q3 demand trends and outlook - Management noted positive trends in diesel and gasoline demand, with expectations for a constructive market environment [45][48] Question: Supply and marketing performance in Q3 - The company is optimistic about supply and marketing contributions, driven by improved logistics and market access [51][53] Question: Timing for economic separation of DKL - Management indicated ongoing efforts towards economic separation, with a focus on enhancing DKL's value through strategic initiatives [57][59]