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, 2024 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) Delaware 35-2581557 (State or other jurisdi ...

Financial Data and Key Metrics Changes - The company reported an adjusted EBITDA of $159 million for Q1 2024, an improvement over Q4 2023 [6][34] - The net loss for the quarter was $33 million, or $0.51 per share, while the adjusted net loss was $26 million, or $0.41 per share [33] - Cash flow from operations was $167 million, with a positive $28 million from working capital improvements [36] Business Line Data and Key Metrics Changes - The Refining segment saw a $117 million improvement in EBITDA, primarily due to higher crack spreads and capture rates [34] - The Logistics segment delivered $100 million in EBITDA, with strong contributions from the Midland Gathering System [7][34] - The Retail segment operated as expected, in line with typical first-quarter seasonality [8] Market Data and Key Metrics Changes - Total throughput in Big Spring was approximately 65,000 barrels per day, with a production margin of $12.87 per barrel [18] - In Tyler, throughput was approximately 72,000 barrels per day, with a production margin of $15.72 per barrel [24] - El Dorado's throughput was approximately 84,000 barrels per day, with a production margin of $9.29 per barrel [25] Company Strategy and Development Direction - The company focuses on safe and reliable operations, maintaining a strong balance sheet, and unlocking value from its assets [9][10] - There is an ongoing effort to highlight the value of midstream assets and improve internal efficiencies [11][15] - The company is evaluating strategic opportunities for its Retail segment to unlock inherent value [21][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational improvements and the positioning for the driving season, expecting throughput guidance to be met [31] - The company is focused on cost efficiency, targeting $90 million to $100 million in cost savings by the end of 2024 [16][84] - Management acknowledged challenges from extreme weather conditions impacting operations but emphasized ongoing risk mitigation efforts [96] Other Important Information - The company paid $60 million in dividends during the quarter and announced a $0.05 per share increase in the regular dividend [10] - Liquidity increased from approximately $300 million to $800 million, and the leverage ratio was reduced from 4.34x to 4.01x [12] Q&A Session Summary Question: Update on cost reduction targets - Management confirmed they are on track for $90 million to $100 million in cost savings by the end of 2024, with additional opportunities identified for 2025 [48][125] Question: Impact of winter storm on operations - Management discussed the challenges faced during the winter storm and emphasized the importance of risk mitigation strategies to minimize future impacts [94][96] Question: Future of the marketing business and potential monetization - Management acknowledged a shift in strategy regarding the marketing business and is exploring options to unlock value [54][60] Question: Dividend policy and buyback expectations - Management reiterated their commitment to a consistent and growing dividend while maintaining a strong balance sheet, with no immediate plans for buybacks due to strategic initiatives [111][112]

First Quarter 2024 Earnings Conference Call Forward Looking Statements: Exhibit 99.2 Disclaimers These forward-looking statements include, but are not limited to, the statements regarding the following: financial and operating guidance for future and uncompleted financial periods; financial strength and flexibility; potential for and projections of growth; return of cash to shareholders, stock repurchases and the payment of dividends, including the amount and timing thereof; cost reductions; crude oil throu ...

[Overview and Strategic Highlights](index=1&type=section&id=Overview%20and%20Strategic%20Highlights) Delek US reported Q1 2024 results in line with guidance, strengthening Delek Logistics' liquidity to **$800 million**, initiating a retail business value unlock, and increasing its quarterly dividend - The company navigated regional demand headwinds to deliver solid operational performance, with results in line with guidance[2](index=2&type=chunk) - Delek Logistics (DKL) successfully executed debt and equity offerings, improving liquidity to approximately **$800 million** and reducing the leverage ratio to **4.01x**[2](index=2&type=chunk)[4](index=4&type=chunk) - A process was initiated to unlock the value inherent in the retail business as part of a 'sum of the parts' initiative[2](index=2&type=chunk) - The regular quarterly dividend was increased to **$0.250 per share** in May, following **$15.7 million** in dividends paid during the quarter[4](index=4&type=chunk) [Consolidated Financial Performance](index=1&type=section&id=Consolidated%20Financial%20Performance) Delek US reported a consolidated net loss of **$32.6 million** for Q1 2024, a reversal from prior-year net income, with Adjusted EBITDA decreasing to **$158.7 million** Q1 2024 Consolidated Financial Results (in millions, except per share data) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net (loss) income attributable to Delek US | $(32.6) | $64.3 | | Diluted (loss) income per share | $(0.51) | $0.95 | | Adjusted net (loss) income | $(26.2) | $92.7 | | Adjusted net (loss) income per share | $(0.41) | $1.37 | | Adjusted EBITDA | $158.7 | $284.6 | [Segment Performance](index=1&type=section&id=Segment%20Performance) Q1 2024 segment performance was mixed, with Refining Adjusted EBITDA declining due to lower crack spreads, Logistics growing from Delaware Gathering, Retail remaining stable, and Corporate losses increasing [Refining Segment](index=1&type=section&id=Refining%20Segment) The Refining segment's Adjusted EBITDA declined to **$106.1 million** in Q1 2024, primarily due to a **22.2%** decrease in benchmark crack spreads Refining Segment Adjusted EBITDA (in millions) | Period | Adjusted EBITDA (in millions) | | :--- | :--- | | Q1 2024 | $106.1 | | Q1 2023 | $230.2 | - The primary driver for lower performance was a **22.2%** average decrease in benchmark crack spreads compared to prior-year levels[4](index=4&type=chunk) [Logistics Segment](index=3&type=section&id=Logistics%20Segment) The Logistics segment's Adjusted EBITDA increased to **$99.7 million** in Q1 2024, driven by strong contributions from Delaware Gathering systems and annual rate increases Logistics Segment Adjusted EBITDA (in millions) | Period | Adjusted EBITDA (in millions) | | :--- | :--- | | Q1 2024 | $99.7 | | Q1 2023 | $91.4 | [Retail Segment](index=3&type=section&id=Retail%20Segment) The Retail segment maintained stable performance, with Adjusted EBITDA of **$6.5 million** in Q1 2024, nearly flat year-over-year Retail Segment Adjusted EBITDA (in millions) | Period | Adjusted EBITDA (in millions) | | :--- | :--- | | Q1 2024 | $6.5 | | Q1 2023 | $6.4 | [Corporate and Other Activity](index=3&type=section&id=Corporate%20and%20Other%20Activity) Adjusted EBITDA from Corporate, Other and Eliminations widened to a **$53.6 million** loss in Q1 2024, driven by higher employee-related expenses Corporate & Other Adjusted EBITDA (in millions) | Period | Adjusted EBITDA Loss (in millions) | | :--- | :--- | | Q1 2024 | $(53.6) | | Q1 2023 | $(43.4) | [Shareholder Returns and Capital Structure](index=3&type=section&id=Shareholder%20Returns%20and%20Capital%20Structure) Delek US continues to return capital to shareholders with a **$0.25 per share** quarterly dividend, maintaining a consolidated net debt of **$1.74 billion** as of March 31, 2024 [Shareholder Distributions](index=3&type=section&id=Shareholder%20Distributions) The Board of Directors approved a regular quarterly dividend of **$0.25 per share** on May 2, 2024 - A regular quarterly dividend of **$0.25 per share** was approved by the Board of Directors[8](index=8&type=chunk) [Liquidity and Net Debt](index=3&type=section&id=Liquidity%20and%20Net%20Debt) As of March 31, 2024, Delek US reported a consolidated cash balance of **$753.4 million** and net debt of **$1.74 billion**, with **$152.0 million** net debt excluding DKL Liquidity and Debt Position as of March 31, 2024 (in millions) | Metric | Consolidated (in millions) | Delek US (ex-DKL) (in millions) | | :--- | :--- | :--- | | Cash Balance | $753.4 | $743.7 | | Long-Term Debt | $2,496.9 | $895.7 | | Net Debt | $1,743.5 | $152.0 | [Financial Statements (Unaudited)](index=7&type=section&id=Financial%20Statements%20(Unaudited)) Unaudited Q1 2024 financial statements show total assets of **$7.18 billion**, a net loss of **$25.2 million** on **$3.23 billion** net revenues, and **$166.7 million** in operating cash flow [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2024, Delek US reported total assets of **$7.18 billion**, total liabilities of **$6.15 billion**, and total stockholders' equity of **$1.04 billion** Balance Sheet Summary (in millions) | Account | March 31, 2024 (in millions) | December 31, 2023 (in millions) | | :--- | :--- | :--- | | Total Current Assets | $2,708.1 | $2,666.0 | | Total Assets | $7,180.3 | $7,171.8 | | Total Current Liabilities | $2,606.5 | $2,685.1 | | Total Liabilities | $6,145.2 | $6,212.1 | | Total Stockholders' Equity | $1,035.1 | $959.7 | [Condensed Consolidated Statements of Income](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) For Q1 2024, Delek US reported net revenues of **$3.23 billion** and a net loss attributable to Delek of **$32.6 million**, a reversal from prior-year net income Income Statement Summary (in millions, except per share data) | Account | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Revenues | $3,227.6 | $3,924.3 | | Operating Income | $32.7 | $142.8 | | Net (loss) income | $(25.2) | $72.2 | | Net (loss) income attributable to Delek | $(32.6) | $64.3 | | Diluted (loss) income per share | $(0.51) | $0.95 | [Condensed Cash Flow Data](index=8&type=section&id=Condensed%20Cash%20Flow%20Data) Q1 2024 net cash provided by operating activities decreased to **$166.7 million**, with net cash used in investing and financing activities leading to a **$68.8 million** net decrease in cash Cash Flow Summary (in millions) | Activity | Q1 2024 (in millions) | Q1 2023 (in millions) | | :--- | :--- | :--- | | Net cash provided by operating activities | $166.7 | $395.1 | | Net cash used in investing activities | $(41.6) | $(222.1) | | Net cash used in financing activities | $(193.9) | $(149.3) | | Net (decrease) increase in cash | $(68.8) | $23.7 | [Non-GAAP Financial Measures and Reconciliations](index=6&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) Delek US uses non-GAAP measures like Adjusted EBITDA and Adjusted Net Income to clarify core operating performance, with Q1 2024 adjusted net loss at **$26.2 million** and Adjusted EBITDA at **$158.7 million** - The company uses non-GAAP measures such as Adjusted EBITDA, Adjusted Net Income, and Net Debt to assess ongoing performance, improve comparability, and monitor leverage[19](index=19&type=chunk)[20](index=20&type=chunk) Reconciliation of Net Loss to Adjusted EBITDA (in millions) | Description | Q1 2024 (in millions) | Q1 2023 (in millions) | | :--- | :--- | :--- | | **Reported net (loss) income** | **$(32.6)** | **$64.3** | | Interest, Tax, D&A | $175.7 | $175.7 | | EBITDA attributable to Delek US | $143.1 | $240.0 | | Adjusting items | $15.6 | $44.6 | | **Adjusted EBITDA** | **$158.7** | **$284.6** | Reconciliation of Net Loss to Adjusted Net Loss (in millions) | Description | Q1 2024 (in millions) | Q1 2023 (in millions) | | :--- | :--- | :--- | | **Reported net (loss) income** | **$(32.6)** | **$64.3** | | Total adjusting items | $6.4 | $28.4 | | **Adjusted net (loss) income** | **$(26.2)** | **$92.7** | [Supplemental Information and Operating Data](index=14&type=section&id=Supplemental%20Information%20and%20Operating%20Data) This section details operational metrics, showing increased Refining throughput to **296,652 bpd**, higher Logistics volumes, and a Retail fuel margin increase to **$0.29 per gallon** despite lower sales [Refining Segment Selected Financial Information](index=14&type=section&id=Refining%20Segment%20Selected%20Financial%20Information) Q1 2024 refining throughput increased to **296,652 bpd** with crude utilization at **90.9%**, though production margin per barrel decreased to **$12.55** Refining Segment Key Operating Metrics | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total throughput (avg bpd) | 296,652 | 268,535 | | Total refining production margin per bbl | $12.55 | $16.44 | | Total refining operating expenses per bbl | $5.90 | $5.60 | | Crude utilization (%) | 90.9% | 82.2% | [Logistics Segment Selected Information](index=18&type=section&id=Logistics%20Segment%20Selected%20Information) The Logistics segment experienced increased Q1 2024 activity, with Delaware Gathering crude oil rising to **123,509 bpd** and Plains Connection System throughput averaging **256,844 bpd** Logistics Segment Key Throughputs (avg bpd) | System | Q1 2024 (avg bpd) | Q1 2023 (avg bpd) | | :--- | :--- | :--- | | Plains Connection System | 256,844 | 240,597 | | Delaware Gathering - Crude oil | 123,509 | 103,725 | | Delaware Gathering - Water disposal | 120,269 | 88,182 | [Retail Segment Selected Information](index=18&type=section&id=Retail%20Segment%20Selected%20Information) The Retail segment ended Q1 2024 with **250 stores**, improving fuel margin to **$0.29 per gallon** despite a **4.1%** decline in same-store merchandise sales Retail Segment Key Metrics | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Number of stores (end of period) | 250 | 249 | | Retail fuel margin ($ per gallon) | $0.29 | $0.27 | | Merchandise sales (in millions) | $70.7 | $73.9 | | Merchandise margin % | 33.5% | 33.0% | | Change in same-store merchandise sales | (4.1)% | 5.3% |

Editor's note: Seeking Alpha is proud to welcome Long Term Capital as a new contributor. It's easy to become a Seeking Alpha contributor and earn money for your best investment ideas. Active contributors also get free access to SA Premium. Click here to find out more » Frank Rothe/The Image Bank via Getty Images Delek US Holdings (NYSE:DK) is an integrated energy company with operations in refining, logistics, and retail segments through its network of convenience stores and gas stations. Despite consis ...

Delek US Holdings, Inc. (DK) reported fourth-quarter 2023 adjusted net loss of $1.46 per share, wider than the Zacks Consensus Estimate of a loss of $1.28. The figure also deteriorated from the year-ago quarter’s profit of 88 cents per share. The underperformance could be attributed to the Refining segment's weak year-on-year contributions.Net revenues decreased 9.6% year over year to $4 billion. The figure, however, beat the consensus mark of $3.8 billion due to record contributions from the Retail and Log ...

Financial Data and Key Metrics Changes - For the fourth quarter of 2023, Delek US reported a loss of $165 million or $2.57 per share, with an adjusted net loss of $93 million or $1.46 per share and adjusted EBITDA of $61 million [30][31] - The full year 2023 adjusted EBITDA reached $950 million, indicating a strong performance [4] - The company returned $146 million to shareholders through dividends and share buybacks in 2023, with $85 million allocated for share buybacks [6][8] Business Line Data and Key Metrics Changes - The logistics segment achieved a record quarter with over $99 million in performance, while retail was down due to seasonal trends [31][17] - In refining, total throughput for El Dorado was approximately 88,000 barrels per day, with a production margin of $4.94 per barrel [11] - Big Spring's throughput was approximately 58,000 barrels per day, impacted by maintenance work [12] - Krotz Springs had a throughput of approximately 81,000 barrels per day, with a production margin of $4.93 per barrel [13] Market Data and Key Metrics Changes - The company experienced weakness in product demand consistent with seasonal trends during the quarter [3] - Asphalt marketing contributed approximately $5 million compared to $15 million in the third quarter, reflecting seasonal trends [28] Company Strategy and Development Direction - The company remains focused on operational excellence, financial strength, and shareholder returns, with a planned major turnaround of the Krotz Springs Refinery in Q4 of 2024 [7][9] - The capital program for 2024 is estimated at approximately $330 million, reflecting a reduction from 2023 levels [22][60] - The company is committed to exploring opportunities in the energy transition space, including carbon capture technology at Big Spring [50] Management's Comments on Operating Environment and Future Outlook - Management noted that 2023 was the best year on record for safety performance and emphasized the importance of operational improvements [19][20] - The company is optimistic about capturing opportunities in the refining market dynamics for 2024 [56] - Management highlighted the importance of disciplined capital allocation and maintaining a balance between financial strength and shareholder returns [49] Other Important Information - The company reduced its debt by $454 million in 2023, improving its financial position [6] - The capital expenditures for 2023 were $372 million, with 80% dedicated to sustaining and regulatory projects [60] Q&A Session All Questions and Answers Question: Update on the sum-of-the-parts unlock - Management remains committed to highlighting the intrinsic value of the business and is focused on enhancing the balance sheet and generating attractive shareholder returns [65] Question: Opportunities around energy transition and carbon capture - The Big Spring Refinery was selected for a project by the Department of Energy to advance carbon capture technology, with no material CapEx planned for 2024 [50][73] Question: Supply and marketing headwinds in Q4 - Management acknowledged the seasonal trends affecting supply and marketing but noted a positive trend correlated to seasonal driving [80] Question: Shareholder returns and buybacks outlook - The company returned $146 million to shareholders in 2023 and remains committed to shareholder returns based on free cash flow [123]

For the quarter ended December 2023, Delek US Holdings (DK) reported revenue of $4.05 billion, down 9.6% over the same period last year. EPS came in at -$1.46, compared to $0.88 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $3.81 billion, representing a surprise of +6.24%. The company delivered an EPS surprise of -14.06%, with the consensus EPS estimate being -$1.28.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- ...

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 Russia; risks and unc ...

☑ ANNUAL REPORT PURSUANT TO SECTION 18 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 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) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) | Delaware | | | 35-2581557 | | --- | --- | --- ...