Core Viewpoint - Delek US Holdings, Inc. is a significant player in the downstream energy sector, focusing on refining and logistics, transforming crude oil into essential fuels and managing the infrastructure for their transportation and storage [1] Group 1: Performance and Strategic Initiatives - The company is making strong progress on its Enterprise Optimization Plan, targeting at least $120 million in annual cash flow improvements by the second half of 2025, with operational gains already realized [4][10] - Delek is actively deconsolidating Delek Logistics, aiming to increase third-party EBITDA to 80%, which has improved liquidity by $250 million and could unlock hidden value in DKL [5][10] - Despite a challenging refining margin environment, Delek repurchased $32 million in shares and paid $16 million in dividends in Q1 2025, indicating confidence in its long-term value [6][10] - The company’s refineries are positioned for stronger performance heading into the summer driving season, with improved throughput guidance suggesting better earnings [7] - Potential retroactive small refinery exemption approvals from the EPA could provide a financial benefit exceeding $300 million, significantly improving liquidity and earnings [8] Group 2: Challenges and Risks - First-quarter 2025 refining margins were down nearly 30% year over year, contributing to a net loss of $173 million, with ongoing macroeconomic headwinds posing risks to profitability [11] - Execution risks in the midstream deconsolidation process could hinder value realization, as full deconsolidation is not yet complete [12] - Competitive pressures in the Southwest refining market, with gasoline and diesel cracks below five-year averages, may impact refining margins [13] - Reliance on Permian crude output presents risks; any decrease in production could increase feedstock costs and disadvantage Delek compared to larger refiners [14] - The company's share price has declined 20.5% over the past year, underperforming its sub-industry, indicating investor concerns about margin pressures and operational efficiency [15]

Group 1 - The core investment thesis for Delek US Holdings (NYSE: DK) revolves around its significant stake in Delek Logistics Partners (DKL), which is a midstream play [1] - The investment strategy has been focused on deep value and the sum of parts analysis, indicating that the market may undervalue the company's assets [1] Group 2 - The author has been contributing to investment analysis since 2011, emphasizing a value-oriented approach rather than growth [1]

Group 1 - The oil market continues its strong performance, with WTI crude oil futures rising 2.8% to $63.67 per barrel and Brent crude oil futures increasing 2.6% to $66.63 per barrel, marking the largest four-day gain since October of the previous year [1] - The positive market sentiment is driven by a breakthrough in US-China trade negotiations, where both parties agreed to suspend new tariffs for 90 days, alleviating concerns over weak energy demand [1] - The US Labor Department reported a narrowing year-on-year increase in the Consumer Price Index (CPI) to 2.3%, the lowest in four years, which has led institutions like JPMorgan and Barclays to lower recession forecasts for the US economy [1] Group 2 - Geopolitical factors are also providing support, with the Trump administration adopting a hardline stance towards Iran, raising concerns about the stability of Middle Eastern supply [2] - Demand signals are turning positive, as a JPMorgan report indicates that despite uncertainties in crude oil demand, the refined oil market remains strong, with gasoline and diesel prices stable [2] - The refining sector is experiencing a bullish response in the secondary market, with companies like PBF Energy rising 10.1% and Delek US increasing by 6.1% [2]

Delek US Holdings, Inc. (DK) reported a first-quarter 2025 adjusted net loss of $2.32 per share, wider than the Zacks Consensus Estimate of a loss of $2.27 and the year-ago quarter’s loss of 41 cents. This decline was mainly due to weaker year-over-year performance in the Refining segment. (See the Zacks Earnings Calendar to stay ahead of market-making news.)Net revenues decreased 18.2% year over year to $2.6 billion.  The figure also missed the Zacks Consensus Estimate by $208 million.The diversified downs ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-38142 DELEK US HOLDINGS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporati ...

Financial Data and Key Metrics Changes - Delek reported a net loss of $173 million or negative $2.78 per share for Q1 2025, with an adjusted net loss of $144 million or negative $2.32 per share and adjusted EBITDA of $26.5 million [21][22] - The refining segment saw a $42.2 million increase in EBITDA due to a higher margin environment and increased throughput compared to Q4 2024 [21] - Logistics segment delivered $117 million in adjusted EBITDA, a $9 million increase over the previous record [22] Business Line Data and Key Metrics Changes - Total throughput in Tyler was approximately 69,000 barrels per day in Q1, with a production margin of $7.82 per barrel [14] - El Dorado's throughput was approximately 76,000 barrels per day with a production margin of $3.83 per barrel [15] - Big Spring's throughput was approximately 59,000 barrels per day, with a production margin of $4.86 per barrel [16] - Cross Springs achieved a record throughput of approximately 85,000 barrels per day, with a production margin of $6.40 per barrel [18] Market Data and Key Metrics Changes - The refining margin environment was reported to be around $4 below mid-cycle levels [5] - Supply and marketing contributed a loss of $23.7 million in Q1, driven by seasonal low demand trends [19] - Crack spreads improved to $3 to $4 in recent weeks, indicating positive market conditions [42] Company Strategy and Development Direction - The company is focused on its Enterprise Optimization Plan (EOP) aiming for cash flow improvement of $120 million annually starting in the second half of 2025 [10] - Delek is advancing its midstream deconsolidation goal, with third-party cash flow at DKL increasing to around 80% [8] - The company is committed to a disciplined capital allocation strategy, including share buybacks and dividends [10][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational improvements and the potential for a strong year ahead, particularly in the context of the Permian Basin activity [32] - The company remains optimistic about the support from the EPA for small refinery exemptions, which could provide significant financial relief [51][55] - Management highlighted the importance of free cash flow and the positive trajectory of operational metrics [34][68] Other Important Information - The company paid $16 million in dividends and repurchased $32 million of its shares during the quarter [10] - Capital expenditures for Q1 were $133 million, with a significant portion allocated to logistics and refining segments [23] Q&A Session Summary Question: Discussion on DKL and full year EBITDA guidance - Management reiterated confidence in DKL's performance and the positive outlook for Permian activity [30][32] Question: Capital returns strategy and sustainability of dividend yield - Management emphasized a balanced approach between share buybacks and dividends, focusing on free cash flow generation [33][38] Question: Improvement in supply and marketing for Q2 - Management noted strong demand and improving market conditions, expecting further improvements in wholesale marketing and asphalt categories [40][42] Question: Dynamics in the Southwest market - Management reported strong crack spreads in the Southwest, particularly in Arizona markets, countering concerns about sluggishness [46] Question: Small refinery exemptions (SREs) and potential retroactive claims - Management confirmed that they are pursuing both retroactive and forward-looking SREs, with significant potential value [51][55] Question: Opportunities for upside beyond EOP targets - Management acknowledged potential for exceeding the $120 million target due to ongoing operational improvements [60] Question: Intercompany transactions and their impact - Management clarified that recent intercompany transactions are aimed at optimizing asset allocation and enhancing deconsolidation efforts [72][76] Question: OpEx guidance and trends - Management explained that increased OpEx guidance is primarily due to the addition of a new natural gas plant, with expectations for further improvements [99][100]

Financial Data and Key Metrics Changes - Delek reported a net loss of $173 million or negative $2.78 per share for Q1 2025, with an adjusted net loss of $144 million or negative $2.32 per share and adjusted EBITDA of $26.5 million [19][20] - The increase in adjusted EBITDA was driven by a $42.2 million increase in refining due to a higher margin environment and sequentially higher throughputs [19] - Logistics segment delivered $117 million in adjusted EBITDA, a $9 million increase over the previous record [20] Business Line Data and Key Metrics Changes - Total throughput in Tyler was approximately 69,000 barrels per day with a production margin of $7.82 per barrel [13] - El Dorado's total throughput was approximately 76,000 barrels per day with a production margin of $3.83 per barrel [14] - Big Spring's throughput was approximately 59,000 barrels per day with a production margin of $4.86 per barrel [15] - Cross Springs achieved a record throughput of approximately 85,000 barrels per day with a production margin of $6.4 per barrel [16] Market Data and Key Metrics Changes - The refining margin environment was around $4 below mid-cycle, impacting overall performance [4] - Supply and marketing contributed a loss of $23.7 million, driven by seasonal low demand trends in wholesale marketing and asphalt [17] Company Strategy and Development Direction - The company is focused on a sum of the parts strategy and midstream deconsolidation, aiming to increase third-party cash flow at DKL to around 80% [7][8] - The Enterprise Optimization Plan (EOP) aims to improve cash flow by $120 million annually starting in the second half of 2025 [9] - The company is committed to a disciplined approach to capital allocation, including share buybacks and dividends [10] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational improvements and the potential for a cleaner runway into the summer driving season [6] - The company remains optimistic about the prospects for 2025 and beyond, particularly in light of the support for domestic energy production [11] Other Important Information - The company paid $16 million in dividends and repurchased $32 million of its shares during the quarter [9] - The company expects operating expenses for Q2 2025 to be between $215 million and $225 million, reflecting higher throughput [22] Q&A Session Summary Question: Discussion on DKL and full year EBITDA guidance - Management reiterated guidance for DKL, highlighting strong positions in both Midland and Delaware areas, with expectations for high volumes [28] Question: Capital returns strategy and sustainability of dividend yield - Management emphasized a focus on free cash flow and a balanced approach between buybacks and dividends, indicating confidence in share price value [31][35] Question: Supply and marketing improvements in Q2 - Management noted strong demand and positive trends in RAC, with expectations for further improvements in wholesale marketing and asphalt categories [40][41] Question: Dynamics in the Southwest market - Management reported strong cracks in the Southwest, particularly in Arizona markets, countering concerns about sluggish starts [44] Question: Small refinery exemptions (SREs) - Management confirmed that SREs would be pursued retroactively from 2019, with optimism about receiving support from the EPA [49][52] Question: Opportunities for upside beyond EOP targets - Management acknowledged potential for upside beyond the $120 million target, with ongoing focus on operational improvements [57] Question: Intercompany transactions and their impact - Management clarified that recent intercompany transactions are aimed at optimizing asset allocation and enhancing deconsolidation efforts [71][72] Question: Operational expenditure guidance - Management explained that increased OpEx guidance is primarily due to the addition of a new natural gas plant, with expectations for further improvements in the second half of the year [92][93]

Here is how Delek US Holdings performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: View all Key Company Metrics for Delek US Holdings here>>> Delek US Holdings (DK) reported $2.64 billion in revenue for the quarter ended March 2025, representing a year-over-year decline of 18.2%. EPS of -$2.32 for the same period compares to -$0.41 a year ago. The reported revenue represents a surprise of +8.54% over the Zacks Consensus Estimate of $2.43 ...

Exhibit 99.2 First Quarter 2025 Earnings Conference Call May 7, 2025 Disclaimers Forward Looking Statements: Delek US Holdings, Inc. ("Delek US") and Delek Logistics Partners, LP ("Delek Logistics"; and collectively with Delek US, "we" or "our") are traded on the New York Stock Exchange in the United States under the symbols "DK" and "DKL", respectively. These slides and any accompanying oral or written presentations contain forward-looking statements within the meaning of federal securities laws that are b ...

"Looking ahead, we will continue to execute on our priorities of running safe and reliable operations, making further progress on midstream deconsolidation, improving cash flow generation by at least $120 million, and delivering shareholder value while maintaining our financial strength and flexibility," Soreq concluded. Delek US Results | | | | Three Months Ended March 31, | | | --- | --- | --- | --- | --- | | ($ in millions, except per share data) | 2025 | | | 2024 | | Net loss attributable to Delek US | ...