Delek US Holdings, Inc. (NYSE:DK) Q3 2023 Earnings Conference Call November 7, 2023 11:00 AM ET Company Participants Rosy Zuklic - Vice President-Investor Relations Avigal Soreq - President & Chief Executive Officer Joseph Israel - Executive Vice President-Operations Reuven Spiegel - Executive Vice President & Chief Financial Officer Mark Hobbs - Executive Vice President-Corporate Development Conference Call Participants Manav Gupta - UBS Neil Mehta - Goldman Sachs Ryan Todd - Piper Sandler Doug Leggate - B ...

November 7, 2023 Investors are cautioned that the following important factors, among others, may affect these forward-looking statements: uncertainty related to timing and amount of value returned to shareholders; risks and uncertainties with respect to the quantities and costs of crude oil we are able to obtain and the price of the refined petroleum products we ultimately sell, including uncertainties regarding future decisions by OPEC regarding production and pricing disputes between OPEC members and Russ ...

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 September 30, 2023 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) 310 Seven Springs Way, Suite 500 Brentw ...

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) Unaudited Q2 2023 financial statements show a net loss of $8.3 million, a significant decline from Q2 2022's $361.8 million net income, reflecting decreased profitability [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $7.77 billion as of June 30, 2023, from $8.19 billion at year-end 2022, driven by lower current assets and liabilities Condensed Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | $3,196.1 | $3,716.9 | | **Total Assets** | **$7,769.5** | **$8,192.8** | | **Total Current Liabilities** | $2,914.6 | $3,086.4 | | **Total Liabilities** | **$6,706.6** | **$7,123.3** | | **Total Stockholders' Equity** | $1,062.9 | $1,069.5 | [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q2 2023 saw a net loss of $8.3 million, or ($0.13) per share, a significant decline from Q2 2022's $361.8 million net income, primarily due to lower net revenues Statement of Income Highlights (in millions, except per share data) | Metric | Q2 2023 | Q2 2022 | YTD 2023 | YTD 2022 | | :--- | :--- | :--- | :--- | :--- | | Net Revenues | $4,195.6 | $5,982.6 | $8,119.9 | $10,441.7 | | Operating Income | $50.1 | $493.3 | $192.9 | $540.0 | | Net (Loss) Income Attributable to Delek | $(8.3) | $361.8 | $56.0 | $368.4 | | Diluted (Loss) Income Per Share | $(0.13) | $5.05 | $0.84 | $5.07 | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations decreased to $490.2 million for the six months ended June 30, 2023, while investing activities used less cash and financing activities reversed to a net outflow Cash Flow Summary (in millions) | Activity | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $490.2 | $585.9 | | Net cash used in investing activities | $(279.9) | $(720.9) | | Net cash (used in) provided by financing activities | $(230.0) | $523.1 | | **Net (decrease) increase in cash** | **$(19.7)** | **$388.1** | | Cash and cash equivalents at end of period | $821.6 | $1,244.6 | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail segment reporting, the $628.3 million Delaware Gathering acquisition, inventory intermediation, $2.8 billion long-term debt, derivatives, environmental liabilities, and shareholder equity activities - Delek Logistics completed the acquisition of Delaware Gathering (formerly 3 Bear) on June 1, 2022, for a purchase price of **$628.3 million**, expanding its operations in the Delaware Basin[33](index=33&type=chunk)[34](index=34&type=chunk) Segment EBITDA Attributable to Delek (in millions) | Segment | Q2 2023 | Q2 2022 | YTD 2023 | YTD 2022 | | :--- | :--- | :--- | :--- | :--- | | Refining | $110.5 | $587.9 | $302.6 | $667.9 | | Logistics | $90.9 | $62.6 | $182.3 | $126.8 | | Retail | $15.0 | $12.5 | $21.4 | $22.8 | | Corporate, Other & Eliminations | $(58.7) | $(89.2) | $(108.6) | $(127.3) | | **Total EBITDA** | **$157.7** | **$573.8** | **$397.7** | **$690.2** | - On December 22, 2022, Delek entered into a new Inventory Intermediation Agreement with Citigroup, replacing a previous agreement with J. Aron. This agreement provides up to **$800 million** of working capital capacity. The outstanding obligation under this agreement was **$453.4 million** as of June 30, 2023[77](index=77&type=chunk)[78](index=78&type=chunk) - As of June 30, 2023, the company had total long-term debt of **$2.87 billion** in principal, with the largest components being the Delek Term Loan (**$945.3 million**) and the Delek Logistics Revolver (**$811.0 million**)[86](index=86&type=chunk) - The company recorded an environmental liability of approximately **$114.7 million** as of June 30, 2023, primarily for remediation costs at refineries and terminals[119](index=119&type=chunk) - During the six months ended June 30, 2023, the company repurchased and cancelled **1.81 million shares** of common stock for a total of **$40.4 million**. The Board also declared quarterly dividends, including **$0.23 per share** paid in May 2023[134](index=134&type=chunk)[135](index=135&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the profitability decline to lower refining margins, while Logistics showed strong growth, with a focus on operations, cost improvements, and shareholder returns, maintaining $1.6 billion in liquidity [Executive Summary and Strategic Overview](index=38&type=section&id=Executive%20Summary%20and%20Strategic%20Overview) Management emphasizes strong but lower refining margins, operational challenges, and a strategic focus on safe operations, shareholder returns, and business model evolution through key leadership appointments - The company's near-term focus is on safe and reliable operations, shareholder returns including debt reductions, and unlocking the 'sum of the parts' value of its business[154](index=154&type=chunk) - Key strategic initiatives for 2023 include improving outage spend discipline, implementing a zero-based budget, reducing debt, and enhancing safety through a new Safety Action Plan[172](index=172&type=chunk) - The company is progressing a business transformation to improve cost structure efficiency and is positioning itself for potential economic headwinds and long-term energy transition pressures[152](index=152&type=chunk) [Results of Operations](index=50&type=section&id=Results%20of%20Operations) Consolidated net loss of $1.5 million in Q2 2023, down from $368.6 million net income in Q2 2022, was driven by lower net revenues and higher interest expense, despite reduced material costs Consolidated Results Comparison (Q2 2023 vs Q2 2022, in millions) | Item | Q2 2023 | Q2 2022 | Change | Change % | | :--- | :--- | :--- | :--- | :--- | | Net Revenues | $4,195.6 | $5,982.6 | $(1,787.0) | (29.9)% | | Cost of Materials and Other | $3,766.6 | $5,082.6 | $(1,316.0) | (25.9)% | | Operating Income | $50.1 | $493.3 | $(443.2) | (89.8)% | | Interest Expense, Net | $80.4 | $43.6 | $36.8 | 84.4% | | Net (Loss) Income | $(1.5) | $368.6 | $(370.1) | (100.4)% | [Segment Performance](index=57&type=section&id=Segment%20Performance) Q2 2023 segment performance varied, with Refining EBITDA plummeting due to lower crack spreads, while Logistics EBITDA grew significantly from the Delaware Gathering acquisition, and Retail saw a modest increase Refining Segment Highlights (Q2 2023 vs Q2 2022) | Metric | Q2 2023 | Q2 2022 | | :--- | :--- | :--- | | Refining Margin ($M) | $269.2 | $778.4 | | EBITDA ($M) | $110.5 | $587.9 | | Total Throughput (avg bpd) | 295,481 | 297,304 | | Gulf Coast 5-3-2 Crack Spread ($/bbl) | $25.54 | $44.03 | Logistics Segment Highlights (Q2 2023 vs Q2 2022) | Metric | Q2 2023 | Q2 2022 | | :--- | :--- | :--- | | Revenues ($M) | $246.9 | $266.7 | | EBITDA ($M) | $90.9 | $62.6 | | Delaware Gathering Crude Throughput (avg bpd) | 117,017 | 78,011 | Retail Segment Highlights (Q2 2023 vs Q2 2022) | Metric | Q2 2023 | Q2 2022 | | :--- | :--- | :--- | | EBITDA ($M) | $15.0 | $12.5 | | Retail Fuel Margin ($/gallon) | $0.342 | $0.329 | | Change in Same-Store Merchandise Sales | 0.1% | 0.1% | [Liquidity and Capital Resources](index=73&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2023, the company maintained strong liquidity of $1.6 billion, with $2.8 billion in long-term debt, and forecasts $350.5 million in capital expenditures for 2023 - Total liquidity as of June 30, 2023, was **$1.6 billion**, including **$821.6 million** in cash and cash equivalents[274](index=274&type=chunk) 2023 Capital Spending (in millions) | Segment | 2023 Forecast | YTD 2023 Actual | | :--- | :--- | :--- | | Refining | $201.8 | $177.1 | | Logistics | $81.3 | $55.5 | | Retail | $31.1 | $8.0 | | Corporate and Other | $36.3 | $12.7 | | **Total** | **$350.5** | **$253.3** | Contractual Cash Requirements Summary (in millions) | Obligation | < 1 Year | 1-3 Years | > 3 Years | Total | | :--- | :--- | :--- | :--- | :--- | | Long-term debt & notes | $49.5 | $546.5 | $2,277.8 | $2,873.8 | | Interest | $228.7 | $401.2 | $437.2 | $1,067.1 | | Operating leases | $57.0 | $75.8 | $56.0 | $188.8 | | Purchase commitments | $562.3 | $0.0 | $0.0 | $562.3 | [Quantitative and Qualitative Disclosures about Market Risk](index=62&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company faces market risks from commodity prices, interest rates, and inflation, managing commodity risk with derivatives and noting a $22.2 million impact for every 1% change on its $2.2 billion floating-rate debt - The company has market exposure on approximately **$2.2 billion** of floating-rate debt. A hypothetical **1%** change in interest rates would change annual interest expense by about **$22.2 million**[300](index=300&type=chunk) - The company uses commodity derivatives to manage price risk. As of June 30, 2023, open non-trading derivative positions included **152.6 million barrels** of crude oil and refined products and **81.1 million RINs**[299](index=299&type=chunk)[104](index=104&type=chunk) - Inflationary factors, including higher labor costs and supply chain disruptions, negatively affected results in the first half of 2023 and are expected to persist[302](index=302&type=chunk) [Controls and Procedures](index=65&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2023, with no material changes to internal control over financial reporting during Q2 2023 - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the reporting period[306](index=306&type=chunk) - No changes occurred during Q2 2023 that materially affected or are reasonably likely to materially affect the company's internal control over financial reporting[307](index=307&type=chunk) [PART II. OTHER INFORMATION](index=66&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=66&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings but management does not anticipate any material adverse effects on its business or financial condition - The company states that it does not expect any currently pending legal proceedings to have a material adverse effect on its financial statements[310](index=310&type=chunk) [Risk Factors](index=66&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors identified in the fiscal 2022 Annual Report on Form 10-K were reported for the six months ended June 30, 2023 - No material changes to risk factors were reported for the six months ended June 30, 2023[311](index=311&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=66&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q2 2023, the company repurchased 1.8 million shares for $40.0 million, with $230.1 million remaining authorized for future repurchases as of June 30, 2023 Common Stock Repurchases (Q2 2023) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2023 | 1,184,067 | $22.93 | | May 2023 | 611,268 | $20.94 | | June 2023 | — | $— | | **Total** | **1,795,335** | **$22.25** | - As of June 30, 2023, **$230.1 million** remained authorized for share repurchases[313](index=313&type=chunk) [Other Information](index=66&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated a Rule 10b5-1 trading plan or non-Rule 10b5-1 trading arrangement during Q2 2023 - No directors or officers adopted or terminated a Rule 10b5-1 trading plan during Q2 2023[314](index=314&type=chunk) [Exhibits](index=66&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including agreements with Citigroup, incentive plan amendments, and CEO/CFO certifications [Signatures](index=68&type=section&id=Signatures)

Delek US Holdings, Inc. (NYSE:DK) Q2 2023 Earnings Conference Call August 7, 2023 11:00 AM ET Company Participants Rosy Zuklic - VP, IR Avigal Soreq - President and CEO Joseph Israel - EVP, Operations Mark Hobbs - EVP, Corporate Development Reuven Spiegel - EVP and CFO Conference Call Participants Manav Gupta - UBS Matthew Blair - Tudor, Pickering, Holt Nicolette Slusser - Goldman Sachs Doug Leggate - Bank of America Ryan Todd - Piper Sandler Roger Read - Wells Fargo Paul Cheng - Scotiabank Jason Gabelman - ...

| --- | --- | --- | --- | --- | --- | --- | --- | --- | |-----------------------------|---------|---------|---------|---------|---------|---------|---------|---------| | Updated Reporting | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 | Q4 2021 | Q3 2021 | Q2 2021 | Q1 2021 | | 2-1-1: 50% Argus 50% Platts | $23.81 | $25.63 | $36.23 | $17.40 | $11.75 | $11.53 | $8.87 | $7.63 | | 50/50 KSR Capture Rate (1) | 56% | 55% | 77% | 63% | 73% | 63% | 31% | 82% | Capital Expenditures 8 B Net Debt | --- | --- | --- | --- | | ...

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, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Registrant's telephone number, including area code) Not Applicable For the transition period from to Commission file number 001-38142 DELEK US HOLDINGS, INC. (Exact name of registrant as s ...

Delek US Holdings, Inc. (NYSE:DK) Q4 2022 Earnings Conference Call February 28, 2023 3:00 PM ET Company Participants Rosy Zuklic - VP, IR Avigal Soreq - President and CEO Todd O'Malley - EVP and COO Reuven Spiegel - EVP and CFO Mark Hobbs - EVP Corporate Development Robert Wright - Chief Accounting Officer Conference Call Participants John Royall - JPMorgan Neil Mehta - Goldman Sachs Kalei Akamine - Bank of America Merrill Lynch Paul Cheng - Scotiabank Jason Gabelman - Cowen Roger Read - Wells Fargo Matthe ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 18 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2022 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) (I.R.S. Employer Identification No.) (State or o ...

Delek US Holdings, Inc. (NYSE:DK) Q3 2022 Earnings Conference Call November 7, 2022 10:30 AM ET Company Participants Blake Fernandez - SVP, IR & Market Intelligence Avigal Soreq - President, CEO & Director Reuven Spiegel - EVP & CFO Todd O'Malley - EVP & COO Conference Call Participants Roger Read - Wells Fargo Securities Matthew Blair - Tudor, Pickering, Holt & Co. Ryan Todd - Piper Sandler & Co. Carly Davenport - Goldman Sachs Kalei Akamine - Bank of America Merrill Lynch Daniel Kutz - Morgan Stanley John ...