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]

Delek US Holdings (DK) Operations and Strategy - Delek Logistics (DKL) reported a record quarter, with run-rate cash flow improvements of $120 million in 2Q'25[11] - DK raised its EOP target to $130-170 million in cash flow improvements[11] - DK returned ~$150 million to shareholders through buybacks and dividends over the last 12 months, representing an approximate 12% yield[11] - DKL is on track to deliver 2025 EBITDA guidance of $480-520 million[11] - DK's value creation journey is tied to EOP (efficiency and optimization plan), SOTP (sum of the parts), and SREs (small refinery exemptions)[14] EOP (Efficiency and Optimization Plan) Progress - EOP aims to improve DK's profitability and free cash flow at constant margins[21] - DK is confident in reaching $130 – 170 million in run-rate cash flow improvements in 2H'2025[21] - Approximately $30 million of cash improvements were realized in 2Q'25 due to EOP initiatives[11, 25] - El Dorado refinery saw ~$1.45/Bbl of EOP improvements in its gross margin during the second quarter[28] Financial Performance - Adjusted EBITDA for 2Q'25 was $170.2 million[47, 52] - Capital expenditures for 2025 YTD totaled $297 million, with $97 million in Refining and $191 million in Logistics[56] - Delek US, excluding DKL net debt, was $275.2 million as of June 30, 2025[59]

Executive Summary & Strategic Outlook [Company Overview & CEO Commentary](index=1&type=section&id=Company%20Overview%20%26%20CEO%20Commentary) Delek US Holdings reported strong Q2 2025 results, exceeding EOP targets and increasing cash flow improvement goals, while advancing midstream deconsolidation and shareholder value initiatives - Delek US achieved its original **$120 million EOP target** one quarter in advance, and has increased its run-rate cash flow improvement target to **$130 to $170 million**[3](index=3&type=chunk) - DKL's new Libby 2 gas processing plant strengthens its position in the Permian basin and contributes to unlocking the full value of midstream assets[3](index=3&type=chunk) - Future priorities include safe and reliable operations, further midstream deconsolidation, improving cash flow generation, and delivering shareholder value while maintaining financial strength[3](index=3&type=chunk) [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) Delek US reported a net loss attributable to Delek US of $106.4 million for Q2 2025, with a diluted loss per share of $(1.76), while Adjusted EBITDA reached $170.2 million Second Quarter 2025 Financial Highlights ($ in millions, except per share data) | ($ in millions, except per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Net loss attributable to Delek US | $(106.4) | $(37.2) | $(279.1) | $(69.8) | | Total diluted loss per share | $(1.76) | $(0.58) | $(4.55) | $(1.09) | | Adjusted net loss | $(33.1) | $(59.3) | $(177.5) | $(85.5) | | Adjusted net loss per share | $(0.56) | $(0.92) | $(2.90) | $(1.33) | | Adjusted EBITDA | $170.2 | $107.5 | $196.7 | $266.2 | [Operational & Strategic Achievements](index=1&type=section&id=Operational%20%26%20Strategic%20Achievements) Key achievements in Q2 2025 included the continued success of the Enterprise Optimization Plan, the completion of DKL's new Libby 2 gas processing plant, a successful $700.0 million debt offering by DKL, and share repurchases by DK - The Enterprise Optimization Plan (EOP) continues to exceed expectations, forecasted to deliver **$130 to $170 million in annual run-rate cash flow improvements**, with approximately **$30 million recognized in Q2 2025**[6](index=6&type=chunk) - Delek Logistics (DKL) completed its new Libby 2 gas processing plant, expanding processing capacity for producer customers in Lea County, New Mexico[6](index=6&type=chunk) - DKL successfully executed a **$700.0 million debt offering** maturing in June 2033, reinforcing its growth efforts and economic independence[6](index=6&type=chunk) - DK repurchased approximately **$13 million in DK common stock** during Q2 2025, and an additional **$7.5 million after the quarter**[6](index=6&type=chunk) Consolidated Financial Performance [Condensed Consolidated Statements of Income (Loss)](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20(Loss)) For the second quarter of 2025, Delek US reported a net loss of $90.1 million, a significant increase from a $26.1 million net loss in Q2 2024, with net revenues decreasing to $2,764.6 million Condensed Consolidated Statements of Income (Loss) ($ in millions, except share and per share data) | ($ in millions, except share and per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Net revenues | $2,764.6 | $3,308.1 | $5,406.5 | $6,436.1 | | Total cost of sales | $2,712.4 | $3,291.3 | $5,418.0 | $6,324.4 | | Operating (loss) income | $(33.5) | $4.6 | $(159.3) | $33.8 | | Net loss attributable to Delek | $(106.4) | $(37.2) | $(279.1) | $(69.8) | | Total diluted loss per share | $(1.76) | $(0.58) | $(4.55) | $(1.09) | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, Delek US reported total assets of $7,068.8 million, an increase from $6,665.8 million at December 31, 2024, while total liabilities increased to $6,773.9 million Condensed Consolidated Balance Sheets ($ in millions) | ($ in millions) | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Cash and cash equivalents | $615.5 | $735.6 | | Total assets | $7,068.8 | $6,665.8 | | Total current liabilities | $2,905.8 | $2,516.0 | | Total non-current liabilities | $3,868.1 | $3,574.6 | | Total liabilities | $6,773.9 | $6,090.6 | | Total stockholders' equity | $294.9 | $575.2 | [Condensed Consolidated Cash Flow Data](index=9&type=section&id=Condensed%20Consolidated%20Cash%20Flow%20Data) In Q2 2025, net cash provided by operating activities was $51.4 million, a significant improvement from a net use of $48.4 million in Q2 2024, despite increased net cash used in investing activities Condensed Consolidated Cash Flow Data ($ in millions) | ($ in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------------ | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Net cash provided by (used in) operating activities | $51.4 | $(48.4) | $(11.0) | $118.3 | | Net cash used in investing activities | $(163.0) | $(62.5) | $(477.6) | $(104.1) | | Net cash provided by (used in) financing activities | $103.3 | $15.4 | $368.5 | $(178.5) | | Net decrease in cash and cash equivalents | $(8.3) | $(95.5) | $(120.1) | $(164.3) | Segment Performance [Refining Segment](index=1&type=section&id=Refining%20Segment) The Refining segment's Adjusted EBITDA significantly increased in Q2 2025, primarily driven by higher crack spreads, reporting improved production margins despite slight decreases in total sales volume and production [Refining Segment Adjusted EBITDA](index=1&type=section&id=Refining%20Segment%20Adjusted%20EBITDA) Refining Segment Adjusted EBITDA ($ in millions) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :------ | :------------------------------- | :------------------------------- | | Refining | $113.6 | $42.1 | - The increase in Refining segment Adjusted EBITDA was primarily due to an increase in refining margin driven by increased crack spreads, which were up an average of **11.4% from prior-year levels**[5](index=5&type=chunk) [Refining Segment Selected Financial Information](index=18&type=section&id=Refining%20Segment%20Selected%20Financial%20Information) Refining Segment Selected Financial Information | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :----------------------------------------- | :------------------------------- | :------------------------------- | | Total sales volume - refined product (bpd) | 315,259 | 320,514 | | Total production (bpd) | 311,298 | 311,957 | | Total throughput (bpd) | 316,325 | 316,054 | | Total refining production margin per bbl | $8.03 | $7.07 | | Total refining operating expenses per bbl | $5.17 | $5.02 | | Crude utilization (% of nameplate capacity) | 100.9% | 100.4% | - WTI crude oil constituted **77.5% of the total crude slate in Q2 2025**, up from **72.0% in Q2 2024**[41](index=41&type=chunk) [Logistics Segment](index=3&type=section&id=Logistics%20Segment) The Logistics segment demonstrated strong growth in Adjusted EBITDA for Q2 2025, primarily driven by strategic acquisitions and increased wholesale margins, with varied performance across its operations [Logistics Segment Adjusted EBITDA](index=3&type=section&id=Logistics%20Segment%20Adjusted%20EBITDA) Logistics Segment Adjusted EBITDA ($ in millions) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :------- | :------------------------------- | :------------------------------- | | Logistics | $120.2 | $100.6 | - The increase in Logistics segment Adjusted EBITDA was driven by the impact of the W2W dropdown, incremental contribution from the H2O Midstream Acquisition (September 11, 2024), the Gravity Acquisition (January 2, 2025), and an increase in wholesale margins[7](index=7&type=chunk) [Logistics Segment Selected Information](index=22&type=section&id=Logistics%20Segment%20Selected%20Information) Logistics Segment Selected Information | Gathering & Processing (average bpd) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | | Midland Gathering Assets | 207,183 | 206,933 | | Delaware Crude oil gathering | 137,167 | 123,927 | | Delaware Natural gas gathering (Mcfd) | 60,940 | 76,237 | | Midland Water disposal and recycling (bpd) | 600,891 | — | - West Texas wholesale marketing margin per barrel increased to **$4.12 in Q2 2025** from **$2.99 in Q2 2024**[43](index=43&type=chunk) Liquidity & Capital Management [Liquidity Position](index=3&type=section&id=Liquidity%20Position) As of June 30, 2025, Delek US maintained a cash balance of $615.5 million, with total consolidated long-term debt of $3,100.7 million, resulting in a net debt of $2,485.2 million Liquidity Position ($ in millions) | Metric | June 30, 2025 | | :----------------------------------- | :------------ | | Cash balance | $615.5 million | | Total consolidated long-term debt | $3,100.7 million | | Net debt | $2,485.2 million | | Net debt, excluding Delek Logistics | $275.2 million | [Shareholder Distributions & Capital Actions](index=3&type=section&id=Shareholder%20Distributions%20%26%20Capital%20Actions) Delek US announced a regular quarterly dividend of $0.255 per share and continued its share repurchase program, buying back approximately $13 million in common stock during the quarter - The Board of Directors approved a regular quarterly dividend of **$0.255 per share**, payable on August 18, 2025, to shareholders of record on August 11, 2025[8](index=8&type=chunk) - Delek US purchased approximately **$13 million in DK common stock** during Q2 2025 and an additional **$7.5 million after the quarter**[6](index=6&type=chunk) Significant Transactions & Non-GAAP Disclosures [Significant Transactions During the Quarter](index=10&type=section&id=Significant%20Transactions%20During%20the%20Quarter) During Q2 2025, Delek US recorded impairment charges of $8.6 million, incurred $3.9 million in transaction-related costs for acquisitions, and recognized $25.5 million in restructuring costs, while also completing the DPG Dropdown to Delek Logistics - Recorded an **$8.6 million ($6.7 million after-tax) impairment** in connection with two investments held at cost[27](index=27&type=chunk) - Incurred **$3.9 million ($3.0 million after-tax) in transaction-related costs** for the H2O Midstream and Gravity Acquisitions[28](index=28&type=chunk) - Recognized **$25.5 million ($19.8 million after-tax) in restructuring costs** associated with business transformation efforts[29](index=29&type=chunk) - Transferred Delek Permian Gathering (DPG) purchasing and blending activities to Delek Logistics, with operating results now reported in the Logistics segment[31](index=31&type=chunk) [Non-GAAP Financial Measures](index=6&type=section&id=Non-GAAP%20Financial%20Measures) Delek US utilizes various non-GAAP operational and financial measures, such as Adjusted net income (loss), Adjusted EBITDA, and Net debt, to evaluate performance and provide improved comparability - Management uses non-GAAP measures to evaluate operating segment performance and past performance, believing they are useful to investors for assessing ongoing performance and comparability[19](index=19&type=chunk)[20](index=20&type=chunk) - Non-GAAP measures include Adjusted net income (loss), Adjusted net income (loss) per share, EBITDA, Adjusted EBITDA, Refining margin, Adjusted refining margin, Refining production margin, Refining production margin per throughput barrel, and Net debt[22](index=22&type=chunk) - These measures have limitations as analytical tools and should not be considered substitutes for their most directly comparable U.S. GAAP financial measures[21](index=21&type=chunk) [Non-GAAP Reconciliations](index=11&type=section&id=Non-GAAP%20Reconciliations) The report provides detailed reconciliations of GAAP financial measures to their non-GAAP counterparts, including Adjusted Net Income (Loss), Adjusted EBITDA, and Adjusted Segment EBITDA, outlining the specific adjusting items for both quarterly and year-to-date periods [Adjusted Net Income (Loss) Reconciliation](index=11&type=section&id=Adjusted%20Net%20Income%20(Loss)%20Reconciliation) Adjusted Net Income (Loss) Reconciliation ($ in millions, unaudited) | $ in millions (unaudited) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------ | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Reported net loss attributable to Delek US | $(106.4) | $(37.2) | $(279.1) | $(69.8) | | Total Adjusting items | $73.3 | $(22.1) | $101.6 | $(15.7) | | Adjusted net loss | $(33.1) | $(59.3) | $(177.5) | $(85.5) | Adjusted Net Income (Loss) Reconciliation ($ per share, unaudited) | $ per share (unaudited) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Reported diluted loss per share | $(1.76) | $(0.58) | $(4.55) | $(1.09) | | Total Adjusting items, after tax (per share) | $1.20 | $(0.34) | $1.65 | $(0.24) | | Adjusted net loss per share | $(0.56) | $(0.92) | $(2.90) | $(1.33) | [Adjusted EBITDA Reconciliation](index=13&type=section&id=Adjusted%20EBITDA%20Reconciliation) Adjusted EBITDA Reconciliation ($ in millions, unaudited) | $ in millions (unaudited) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------ | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Reported net loss attributable to Delek US | $(106.4) | $(37.2) | $(279.1) | $(69.8) | | EBITDA attributable to Delek US | $59.3 | $124.9 | $35.1 | $268.0 | | Total Adjusting items | $110.9 | $(17.4) | $161.6 | $(1.8) | | Adjusted EBITDA | $170.2 | $107.5 | $196.7 | $266.2 | Adjusted EBITDA from Continuing Operations ($ in millions, unaudited) | $ in millions (unaudited) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------ | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Reported loss from continuing operations, net of tax | $(89.3) | $(33.8) | $(247.5) | $(62.2) | | Adjusted EBITDA from continuing operations | $171.2 | $94.9 | $198.1 | $246.5 | [Adjusted Segment EBITDA Reconciliation](index=16&type=section&id=Adjusted%20Segment%20EBITDA%20Reconciliation) Adjusted Segment EBITDA Reconciliation (Q2 2025, $ in millions, unaudited) | $ in millions (unaudited) | Refining (Q2 2025) | Logistics (Q2 2025) | Corporate, Other and Eliminations (Q2 2025) | Consolidated (Q2 2025) | | :------------------------ | :----------------- | :------------------ | :------------------------------------------ | :--------------------- | | Segment EBITDA Attributable to Delek US | $95.1 | $90.1 | $(108.6) | $76.6 | | Total Adjusting items | $18.5 | $30.1 | $46.0 | $94.6 | | Adjusted Segment EBITDA | $113.6 | $120.2 | $(62.6) | $171.2 | Adjusted Segment EBITDA Reconciliation (YTD 2025, $ in millions, unaudited) | $ in millions (unaudited) | Refining (YTD 2025) | Logistics (YTD 2025) | Corporate, Other and Eliminations (YTD 2025) | Consolidated (YTD 2025) | | :------------------------ | :------------------ | :------------------- | :------------------------------------------- | :---------------------- | | Segment EBITDA Attributable to Delek US | $78.9 | $175.6 | $(187.5) | $67.0 | | Total Adjusting items | $7.3 | $61.1 | $62.7 | $131.1 | | Adjusted Segment EBITDA | $86.2 | $236.7 | $(124.8) | $198.1 | [Adjusted Refining Margin Reconciliation](index=26&type=section&id=Adjusted%20Refining%20Margin%20Reconciliation) Adjusted Refining Margin Reconciliation ($ in millions, unaudited) | $ in millions (unaudited) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------ | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Gross margin | $21.3 | $(49.2) | $(71.3) | $(8.0) | | Refining margin | $238.3 | $156.8 | $375.7 | $425.2 | | Total Adjusting items | $18.5 | $12.9 | $7.0 | $17.9 | | Adjusted refining margin | $256.8 | $169.7 | $382.7 | $443.1 | [Net Debt Calculation](index=26&type=section&id=Net%20Debt%20Calculation) Net Debt Calculation ($ in millions) | Calculation of Net (Cash) Debt | June 30, 2025 | December 31, 2024 | | :----------------------------- | :------------ | :---------------- | | Total long-term debt | $3,100.7 | $2,765.2 | | Less: Cash and cash equivalents | $615.5 | $735.6 | | Net debt - consolidated | $2,485.2 | $2,029.6 | | Less: DKL net debt | $2,210.0 | $1,870.0 | | Net debt, excluding DKL | $275.2 | $159.6 | Supplemental Information & Corporate Details [Selected Segment Financial Data](index=24&type=section&id=Selected%20Segment%20Financial%20Data) The supplemental data provides a breakdown of net revenues, inter-segment fees, total revenues, cost of sales, and gross margin for the Refining and Logistics segments, as well as consolidated figures for Q2 and YTD 2025 and 2024 Selected Segment Financial Data (Q2 2025, $ in millions, unaudited) | $ in millions (unaudited) | Refining (Q2 2025) | Logistics (Q2 2025) | Consolidated (Q2 2025) | | :------------------------ | :----------------- | :------------------ | :--------------------- | | Net revenues (excluding intercompany fees and revenues) | $2,632.3 | $132.3 | $2,764.6 | | Total revenues | $2,716.8 | $246.4 | $2,764.6 | | Gross margin | $21.3 | $60.7 | $52.2 | Selected Segment Financial Data (YTD 2025, $ in millions, unaudited) | $ in millions (unaudited) | Refining (YTD 2025) | Logistics (YTD 2025) | Consolidated (YTD 2025) | | :------------------------ | :------------------ | :------------------- | :---------------------- | | Net revenues (excluding intercompany fees and revenues) | $5,150.6 | $255.9 | $5,406.5 | | Total revenues | $5,325.1 | $496.3 | $5,406.5 | | Gross margin | $(71.3) | $111.3 | $(11.5) | [Pricing Statistics](index=25&type=section&id=Pricing%20Statistics) The report provides average pricing statistics for key crude oil benchmarks (WTI, LLS, Brent), various U.S. Gulf Coast crack spreads, and refined product prices for Q2 and YTD 2025 compared to 2024 Pricing Statistics ($ average for the period presented) | (average for the period presented) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | | WTI — Cushing crude oil (per barrel) | $63.81 | $80.83 | | Brent (per barrel) | $66.71 | $85.06 | | U.S. Gulf Coast 5-3-2 crack spread (per barrel) | $20.19 | $18.12 | | U.S. Gulf Coast Unleaded Gasoline (per gallon) | $1.95 | $2.30 | | Gulf Coast Ultra-low sulfur diesel (per gallon) | $2.08 | $2.44 | | Natural gas (per MMBTU) | $3.51 | $2.37 | [About Delek US Holdings, Inc.](index=3&type=section&id=About%20Delek%20US%20Holdings,%20Inc.) Delek US Holdings, Inc. is a diversified downstream energy company with assets in petroleum refining, logistics, pipelines, and renewable fuels, operating four refineries with a combined crude throughput capacity of 302,000 barrels per day - Delek US Holdings, Inc. is a diversified downstream energy company with assets in petroleum refining, logistics, pipelines, and renewable fuels[12](index=12&type=chunk) - The company's refining assets include refineries 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**[12](index=12&type=chunk) - Delek US and its subsidiaries owned approximately **63.3% (including the general partner interest) of Delek Logistics Partners, LP** at June 30, 2025[13](index=13&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section serves as a cautionary note regarding forward-looking statements, which are based on current expectations and involve risks and uncertainties, advising investors that actual results may differ materially - The press release contains forward-looking statements based on current expectations, involving risks and uncertainties, and are not guarantees of future performance[14](index=14&type=chunk)[18](index=18&type=chunk) - Important factors that may affect these statements include political/regulatory developments, crude oil prices, acquisition risks, and general economic conditions[15](index=15&type=chunk)[17](index=17&type=chunk) - Delek US undertakes no obligation to update or revise any forward-looking statements to reflect events or circumstances that occur after the date of the release, except as required by law[18](index=18&type=chunk) [Conference Call Information](index=3&type=section&id=Conference%20Call%20Information) Delek US will host a conference call on August 6, 2025, to discuss its Q2 2025 results, with details provided for live access and replay, and a separate call for Delek Logistics' results will also be held - Delek US will hold a conference call on Wednesday, August 6, 2025, at **10:00 a.m. Central Time**, accessible via www.DelekUS.com under the Investor Relations tab[10](index=10&type=chunk) - Delek Logistics (DKL) will hold its Q2 2025 earnings conference call on Wednesday, August 6, 2025, at **11:30 a.m. Central Time**, with information available at www.deleklogistics.com[11](index=11&type=chunk) [Investor/Media Relations Contacts](index=26&type=section&id=Investor%2FMedia%20Relations%20Contacts) Contact information for investor and media relations is provided, along with links to Delek US Holdings, Inc.'s website and social media - Investor/Media Relations can be contacted via **investor.relations@delekus.com**[48](index=48&type=chunk) - Information about Delek US Holdings, Inc. is available on its website (www.delekus.com), investor relations webpage (ir.delekus.com), news webpage (www.delekus.com/news), and X account (@DelekUSHoldings)[48](index=48&type=chunk)

Core Insights - Delek US Holdings, Inc. (DK) is a significant player in the U.S. downstream energy sector, focusing on refining crude oil and managing logistics, producing essential fuels like gasoline, diesel, and jet fuel [1] - The company has seen a 40.8% increase in share price over the past six months, outperforming the broader refining and marketing oil and gas sub-industry and the overall oils and energy sector [2] Performance Overview - DK's logistics segment achieved a record $117 million in adjusted EBITDA in Q1 2025, contributing to strong cash flows and growth [7] - The refining operations have improved, with throughput guidance for Q2 2025 set between 302,000-318,000 barrels per day, and margin improvements expected at El Dorado [9][11] - Seasonal demand is anticipated to enhance refining margins in Q2 2025 due to increased gasoline demand and tighter supply conditions [11] Strategic Positioning - DK's midstream assets are strategically located in the Permian Basin, benefiting from sour gas gathering and water midstream opportunities, with the Libby 2 gas plant nearing completion [10] - Management has expressed confidence in the long-term strategy, highlighting operational improvements and midstream growth [12] Challenges and Risks - The refining segment reported an adjusted EBITDA loss of $27.4 million in Q1 2025, a significant decline from $110.1 million in Q1 2024, primarily due to lower crack spreads [13] - Execution risks related to the Enterprise Optimization Plan could impact cash flow improvements, with potential delays in operational efficiencies and cost cuts [15] - Regulatory uncertainty surrounding Small Refinery Exemptions poses a risk, as the approval timeline and political factors remain hurdles [17] Investment Considerations - DK presents both opportunities and risks, with strong logistics performance and strategic positioning in the Permian Basin, but ongoing challenges in refining margins and high capital intensity could pressure near-term cash flows [21][22] - A cautious investment approach is suggested, with a hold strategy recommended until a more favorable entry point is identified [23]

Financial Performance & Shareholder Returns - Delek US Holdings' market capitalization was $2.9 billion as of February 23, 2018 [5] - The company repurchased $118.8 million of stock from November 2017 to February 23, 2018 and approved a new $150 million authorization [5] - The regular quarterly dividend was increased by 33% to $0.20 per share from $0.15 per share [5] - Delek US had $931.8 million in cash and $1,465.6 million in debt as of December 31, 2017 [5] Strategic Initiatives & Synergies - The acquisition of Alon USA Energy closed on July 1, 2017, to purchase the remaining 53% [5] - The purchase of the remaining 18.4% of Alon USA Energy Partners LP units closed on February 7, 2018 [5] - The company expects to achieve run-rate synergies of approximately $105-$120 million in 2018 from the DK/ALJ combination, increased from the original target of $85-$105 million [39] - As of December 31, 2017, $89 million of annualized synergies had been captured [39] Logistics & Asset Optimization - The Big Spring Logistics assets dropdown to DKL is expected to close in March 2018, with an expected annualized EBITDA of $40.2 million [64, 65] - The Paline Pipeline expansion was completed in early March 2018, increasing capacity to 42,000 bpd from 35,000 bpd, with an $8 million estimated annualized EBITDA uplift [64] - A definitive agreement to sell West Coast terminals for $75 million in cash was announced on February 12, 2018 [8, 55]

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 ...