Core Viewpoint - Companies like AGNC Investment, Annaly Capital Management, and Delek Logistics Partners are identified as "monster dividend stocks" with yields exceeding 10%, making them attractive for generating passive income [1]. Group 1: AGNC Investment - AGNC Investment offers a dividend yield of over 16%, significantly higher than the S&P 500's yield of less than 1.5% [3]. - As a REIT, AGNC is required to distribute at least 90% of its taxable net income as dividends, contributing to its high yield [4]. - The company utilizes leverage to enhance returns, with potential returns in the low 20% range, but this strategy carries risks during market downturns [5]. Group 2: Annaly Capital Management - Annaly Capital Management, another mortgage REIT, has a dividend yield approaching 15% and has recently increased its dividend due to improved earnings [7]. - The REIT invests primarily in Agency MBS and has also ventured into higher-risk residential credit investments and mortgage servicing rights [6][8]. - Historical performance shows that Annaly has had to cut dividends in the past due to declining earnings, indicating a higher risk-reward profile [8]. Group 3: Delek Logistics Partners - Delek Logistics Partners operates as a master limited partnership (MLP) with a dividend yield of nearly 10.5%, the highest in the energy midstream sector [10]. - The MLP has consistently raised its distribution for 49 consecutive quarters, with a 3.7% increase over the past year [10]. - Its business model is supported by stable cash flows from long-term contracts, and it is diversifying its earnings by reducing reliance on its parent company [11].

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]

Acquisitions and Investments - The Partnership acquired 100% of Gravity Water Intermediate Holdings LLC for water disposal and recycling operations in the Permian Basin and Bakken on January 2, 2025[111]. - Gravity Acquisition completed on January 2, 2025, for a total consideration of $300.8 million, consisting of $209.3 million in cash and 2,175,209 common units, enhancing the company's position in the Permian Basin[130]. - The Delek Permian Gathering Dropdown on May 1, 2025, involved the transfer of the purchasing and blending business, with total consideration including the cancellation of $58.8 million in existing receivables owed by Delek Holdings[130]. - The El Dorado Purchase Agreement, executed on May 1, 2025, involves Delek Holdings purchasing assets for cash consideration of $25.0 million, set to close on January 1, 2026[132]. - The partnership is focused on pursuing attractive expansion opportunities in the Permian Basin, particularly in crude, natural gas, and water services[141]. Financial Performance - The Partnership reported a $6.4 million increase in net income for the three months ended March 31, 2025, compared to the prior year period[124]. - EBITDA decreased by $16.0 million in 2025 compared to 2024, primarily due to a change in classification of certain commercial agreements[124]. - EBITDA for the three months ended March 31, 2025, was reported at $85.5 million, compared to $101.5 million for the same period in 2024[153]. - Net revenues for Q1 2025 decreased by $2.1 million, or 0.9%, compared to Q1 2024, totaling $249.93 million[160]. - EBITDA for Q1 2025 was $85.49 million, a decrease of $16.01 million, or 15.8%, from $101.50 million in Q1 2024[158]. - Distributable cash flow increased to $71.71 million in Q1 2025, up from $67.99 million in Q1 2024, representing a growth of 5.0%[155]. Segment Performance - The gathering and processing segment saw a $10.2 million increase in segment EBITDA, largely due to the H2O Midstream and Gravity acquisitions[124]. - The wholesale marketing and terminalling segment experienced a $12.0 million decrease in segment EBITDA[124]. - The storage and transportation segment reported a $13.7 million decrease in segment EBITDA[124]. - The gathering and processing segment saw net revenues rise by $22.7 million, or 23.7%, in Q1 2025, largely due to contributions from H2O Midstream and Gravity operations[170]. - Net revenues for the wholesale marketing and terminalling segment decreased by $12.6 million, or 10.5%, to $106.7 million in Q1 2025 compared to $119.3 million in Q1 2024[176]. - Net revenues for the storage and transportation segment decreased by $12.3 million, or 33.3%, to $24.6 million in Q1 2025 compared to $36.9 million in Q1 2024[185]. Expenses and Cash Flow - Operating expenses increased by $9.1 million, or 28.4%, in Q1 2025 compared to Q1 2024, driven by higher general and administrative expenses[161]. - General and administrative expenses surged by $4.0 million, or 82.3%, in Q1 2025, primarily due to transaction costs related to the Gravity Acquisition[161]. - Net cash provided by operating activities decreased by $12.3 million to $31.6 million in Q1 2025 compared to $43.9 million in Q1 2024[198]. - Net cash used in investing activities increased by $224.9 million to $234.8 million in Q1 2025, primarily due to the Gravity Acquisition for $181.2 million[199]. Debt and Liquidity - Total liquidity as of March 31, 2025, amounted to $447.0 million, consisting of $444.9 million in unused credit commitments and $2.1 million in cash[192]. - Total indebtedness as of March 31, 2025, was $2,155.1 million, reflecting an increase of $269.7 million compared to December 31, 2024[203]. - The outstanding floating rate borrowings totaled approximately $705.1 million as of March 31, 2025, exposing the company to interest rate risk[211]. - A hypothetical one percent change in interest rates would change interest expense by approximately $7.1 million annually[211]. Strategic Outlook - The economic outlook remains uncertain due to geopolitical instability and commodity market volatility, but the Partnership is positioned to manage through potential downturns[125]. - The company aims to achieve strong cash flow growth in 2025, driven by the expansion of the Libby gas processing plant and the integration of H2O Midstream and Gravity acquisitions[144]. - The partnership is prioritizing reducing its leverage ratio to enhance financial flexibility for pursuing growth opportunities[143]. - The partnership's long-term strategic objectives include increasing economic separation from Delek Holdings and enhancing third-party cash flow contributions[140]. Market and Regulatory Factors - Market trends indicate that fluctuations in crude oil and natural gas prices significantly impact operations, with long-term fee-based contracts mitigating short-term financial risks[147]. - Changes in commodity prices can significantly affect revenues and cash flows, impacting operating margins[210]. - Inflationary factors may adversely affect operating results, impacting gross margin and operating expenses[212]. - Regulatory maintenance projects are financed through cash generated from operations, ensuring compliance with environmental regulations[206]. Safety and Compliance - The company has successfully avoided lost time injuries for four years, demonstrating strong safety protocols and adherence to regulations[142].

Financial Data and Key Metrics Changes - The company reported approximately $117 million in quarterly adjusted EBITDA, an increase from $102 million in the same period of 2024, indicating a strong performance [4][13] - Distributable cash flow as adjusted was $75 million, with a DCF coverage ratio of approximately 1.27 times, expected to rise throughout the year [13] - The capital program for the first quarter was approximately $72 million, with $52 million attributed to the construction of the Libbey II gas processing plant [15][16] Business Line Data and Key Metrics Changes - For the Gathering and Processing segment, adjusted EBITDA was $81 million compared to $50 million in Q1 2024, primarily due to acquisitions [14] - Wholesale marketing and terminalling adjusted EBITDA decreased to $18 million from $25 million, attributed to seasonal weather impacts [14] - Storage and transportation adjusted EBITDA was $14 million, down from $18 million, due to renegotiation impacts [14] - Investments in the pipeline joint venture segment contributed $10 million, up from $8 million in Q1 2024 [14] Market Data and Key Metrics Changes - The company is increasing its economic separation from DK, with third-party contributions to cash flow rising from 70% to around 80% on a pro forma basis [4][20] - The Delaware Basin is expected to continue growing, with the company maintaining a competitive position despite near-term crude price volatility [5][6] Company Strategy and Development Direction - The company is focused on enhancing its competitive position in the Midland and Delaware Basins through acquisitions and operational improvements [5][9] - The commissioning of the Libbey II gas plant is expected to add 100 million to 120 million cubic feet per day of incremental capacity [9][10] - The company aims to improve margins across operations while managing liquidity and leverage effectively [12][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of the Delaware Basin and the overall partnership, emphasizing prudent management of leverage and coverage [6][12] - The company anticipates continued value creation and growth in distributions moving forward [6][16] Other Important Information - The Board of Directors approved a 49th consecutive increase in the quarterly distribution to $1.11 per unit [6] - The company has authorization to buy back common units of up to $150 million from DK through 2026, with $10 million repurchased in Q1 [12] Q&A Session Summary Question: Details on intercompany agreements and optimization opportunities - Management clarified that the intercompany transaction involved cleaning up contracts and moving some midstream activities from DK to DKL, with no net material impact on EBITDA [20] Question: Customer feedback and contract mix in the current macro environment - Management reported stable volumes in the Midland Basin and increasing water volumes, indicating a strong customer base and competitive advantage [22][25] Question: CapEx and gas plant ramp-up - Management noted that CapEx was heavy in the first half, with limited material investment expected in the second half, and emphasized the importance of the Libbey II gas plant for meeting existing demand and supporting acreage growth [26][27]

Financial Data and Key Metrics Changes - Delek Logistics Partners reported approximately $117 million in quarterly adjusted EBITDA, an increase from $102 million in the same period of 2024, indicating a year-over-year growth of approximately 14.7% [4][13] - Distributable cash flow as adjusted was $75 million, with a DCF coverage ratio of approximately 1.27 times, expected to rise throughout the year [13] - The company is on track to deliver full-year EBITDA guidance of $480 million to $520 million [4][16] Business Line Data and Key Metrics Changes - Gathering and Processing segment adjusted EBITDA for the quarter was $81 million, up from $50 million in Q1 2024, reflecting a significant increase due to acquisitions [14] - Wholesale marketing and terminalling adjusted EBITDA decreased to $18 million from $25 million in the prior year, primarily due to seasonal weather impacts [14] - Storage and transportation adjusted EBITDA was $14 million, down from $18 million in Q1 2024, attributed to renegotiation impacts [14] - Investments in pipeline joint venture segment contributed $10 million, compared to $8 million in the same quarter of the previous year [14] Market Data and Key Metrics Changes - The company is enhancing its competitive position in the Midland Basin through intercompany transactions and acquisitions, increasing third-party contribution to cash flow from 70% to around 80% on a pro forma basis [4][20] - The Delaware Basin is expected to continue growing, with the company optimistic about its competitive position despite near-term crude price volatility [6] Company Strategy and Development Direction - The company is focused on increasing its economic separation from DK and enhancing its position as a full-service crude, natural gas, and water provider in the Permian Basin [4][5] - The commissioning of the Libbey II gas plant is expected to add 100 million to 120 million cubic feet per day of incremental capacity, with plans for future expansions [8][9] - The company aims to improve operational efficiency and margins across its operations [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of the Delaware Basin and the overall partnership, emphasizing prudent management of leverage and coverage [6][12] - The company is optimistic about the prospects of direct logistics and plans to continue its value creation path moving forward [6] Other Important Information - The Board of Directors approved a 49th consecutive increase in the quarterly distribution to $1.11 per unit [6] - The capital program for Q1 was approximately $72 million, with significant investments in the Libbey II gas processing plant [15][16] Q&A Session Summary Question: Details on intercompany agreements and optimization opportunities - Management clarified that the intercompany transaction involved cleaning up contracts and moving some midstream activities from DK to DKL, with no net material impact on EBITDA [20] Question: Customer feedback and contract mix in the current macro environment - Management reported stable volumes in the Midland Basin and increasing water volumes, indicating a strong customer base and competitive advantage [22][25] Question: CapEx and future growth plans - Management indicated limited direct commodity exposure with strong counterparties and forecasted an increase in produced water volumes despite volatility [25][26]

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]

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 ...

Exhibit 99.1 Delek Logistics Reports Record First Quarter 2025 Results BRENTWOOD, Tenn., May 7, 2025 -- Delek Logistics Partners, LP (NYSE: DKL) ("Delek Logistics") today announced its financial results for the first quarter 2025. "Delek Logistics started 2025 on a strong note enhancing our position as a premier midstream provider in the Permian basin. We provide the best combination of yield and growth in the midstream sector with a long runway of growth driven by its advantageous position in the Midland a ...

Group 1 - The company, Henriot Capital, emphasizes a quant-driven investment approach that prioritizes simplicity and common sense for success [1] - The investment strategy is characterized by a motto of "invest first, investigate later," indicating a reliance on model recommendations without human bias [1] - The firm aims to build a hedge fund with a clear purpose and disciplined focus, seeking consistent alpha through data-driven decisions [1]

Core Insights - Tomas Riba is an economist and former CFO focused on investing in high-quality companies that can compound cash flow over the long term [1] - His investment strategy emphasizes companies with strong competitive advantages, operating in growing industries, expanding margins, low debt, and aligned management [1] Background and Experience - Tomas Riba began his journey in financial markets at a young age and has been investing since 2007 [1] - He has a background in accounting and has served as CFO for a holding company involved in various sectors including pharma, medical devices, textiles, food, and real estate [1] - Currently, he teaches courses on "Derivatives for risk management" and "Investment analysis" at a Master's Degree program in Financial Management [1]