Delek US(US:DK)2025-11-07 11:31Financial Performance - Delek US reported a net income of $178.0 million or $2.93 per share for Q3 2025, compared to a net loss of $76.8 million or $(1.20) per share in Q3 2024[4]. - Adjusted net income for Q3 2025 was $434.2 million or $7.13 per share, significantly up from an adjusted loss of $93.0 million or $(1.45) per share in the same quarter last year[5]. - Total net revenues for Q3 2025 were $2,887.0 million, a decrease of 5.1% from $3,042.4 million in Q3 2024[23]. - Operating income for Q3 2025 was $295.7 million, compared to a loss of $121.9 million in Q3 2024[23]. - Cash provided by operating activities from continuing operations was $44.3 million in Q3 2025, compared to a cash outflow of $22.1 million in Q3 2024[24]. - Reported net income attributable to Delek for Q3 2025 was $178.0 million, a significant improvement from a loss of $76.8 million in Q3 2024[23]. - Reported diluted net income per share for Q3 2025 was $2.93, compared to a loss of $(1.20) in Q3 2024[37]. - Adjusted net income per share for Q3 2025 was $7.13, while the adjusted net loss per share for Q3 2024 was $(1.45)[37]. EBITDA and Adjustments - Adjusted EBITDA for Q3 2025 reached $759.6 million, a substantial increase from $70.6 million in Q3 2024, driven by a $280.8 million benefit from Small Refinery Exemptions (SREs)[4][5]. - The refining segment's adjusted EBITDA was $696.9 million in Q3 2025, compared to $10.2 million in Q3 2024, reflecting a 46.8% increase in benchmark crack spreads[6]. - Total adjusting items for Q3 2025 amounted to $347.4 million, while in Q3 2024, it was a negative $19.1 million[38]. - Adjusted EBITDA from continuing operations for Q3 2025 was $760.0 million, compared to $62.4 million in Q3 2024[39]. - Total adjusting items for Q3 2025 amounted to $71.9 million, compared to a negative $16.7 million in Q3 2024[50]. Segment Performance - The logistics segment's adjusted EBITDA increased to $131.5 million in Q3 2025 from $106.1 million in the prior-year quarter, attributed to acquisitions and increased wholesale margins[7]. - The refining segment contributed $464.1 million to the segment EBITDA in Q3 2025, while logistics contributed $102.0 million[41]. - Segment EBITDA attributable to Delek US for Q3 2025 reached $566.1 million, a substantial increase from $81.4 million in Q3 2024[41]. - The company reported total revenues of $3,103.4 million for the three months ended September 30, 2025, compared to $3,241.9 million for the same period in 2024, reflecting a decrease of approximately 4.3%[47]. Cash Flow and Debt - As of September 30, 2025, Delek US had a cash balance of $630.9 million and total consolidated long-term debt of $3,177.3 million, resulting in a net debt of $2,546.4 million[9]. - Cash and cash equivalents at the end of Q3 2025 were $630.9 million, down from $1,037.6 million at the end of Q3 2024[24]. - Long-term debt, net of current portion, increased to $3,167.8 million as of September 30, 2025, from $2,755.7 million at the end of 2024[22]. - Total long-term debt as of September 30, 2025, was $3,177.3 million, an increase from $2,765.2 million as of December 31, 2024[50]. Operational Metrics - Total sales volume of refined products averaged 317,587 barrels per day (bpd) in Q3 2025, up from 309,175 bpd in Q3 2024, representing a 2.9% increase[44]. - Total refining production margin increased to $9.59 per barrel in Q3 2025, compared to $4.88 per barrel in Q3 2024, marking a 96% increase[44]. - The average water disposal and recycling throughput in the Midland Water Gathering System increased significantly to 616,484 bpd in 2025 from 311,290 bpd in 2024[46]. - Operating expenses per barrel of throughput were $5.43 in Q3 2025, compared to $5.12 in Q3 2024, reflecting a 6% increase[44]. Costs and Expenses - The company incurred significant costs to comply with Renewable Identification Number (RIN) obligations due to the EPA's decisions on Small Refinery Exemption petitions[25]. - The company reported impairment charges of $16.3 million ($12.6 million after-tax) primarily related to software development costs for the three months ended September 30, 2025[27]. - Restructuring costs totaled $34.1 million ($26.4 million after-tax) in Q3 2025, associated with a business transformation initiative[29]. - General and administrative expenses, excluding transaction and restructuring costs, were $49.8 million for the three months ended September 30, 2025[30]. Market Conditions - The U.S. Gulf Coast 5-3-2 crack spread averaged $22.57 per barrel in the three months ended September 30, 2025, compared to $15.64 per barrel in the same period of 2024, representing a year-over-year increase of approximately 44.5%[49]. - The average WTI Cushing crude oil price per barrel was $65.06 in the three months ended September 30, 2025, down from $75.28 in the same period of 2024, indicating a decrease of approximately 13.5%[49].