Delek US(US:DK)2026-02-27 17:02Financial Data and Key Metrics Changes - In Q4 2025, Delek reported an adjusted EPS of $0.44 and adjusted EBITDA of approximately $226 million, highlighting strong performance and stability in strategy [4][12] - For the full year 2025, adjusted EBITDA was approximately $763 million, excluding SREs [12] - Net income for Q4 was $78 million or $1.26 per share, with adjusted net income at $143 million or $2.31 per share [12] Business Line Data and Key Metrics Changes - The refining segment saw a decline in adjusted EBITDA by $91 million due to seasonality, while supply and marketing contributed approximately $23 million [13] - The logistics segment delivered approximately $142 million in adjusted EBITDA, indicating strong performance [13] Market Data and Key Metrics Changes - DKL had a record year with approximately $536 million in adjusted EBITDA, and 2026 EBITDA guidance is expected to be in the range of $520 million to $560 million [5] - DKL is nearing completion on its comprehensive sour gas solution, which will enhance its market access and growth opportunities in the Delaware Basin [6][7] Company Strategy and Development Direction - The company is focused on improving free cash flow and has raised its Enterprise Optimization Plan target to at least $200 million on an annual run rate basis [5][9] - The strategy includes maintaining a strong balance sheet, returning value to shareholders through dividends and share buybacks, and ensuring safe and reliable operations [11][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing success of the Enterprise Optimization Plan, which is becoming part of the company culture [52] - The company anticipates continued improvements in cash flow generation and operational performance, particularly post-turnaround at the Big Spring refinery [8][45] Other Important Information - Cash flow from operations in Q4 was $503 million, with a significant improvement of $211 million compared to the previous year [15] - The company paid approximately $15 million in dividends and repurchased about $20 million of its shares during the quarter [11] Q&A Session Summary Question: Cash inflow on remaining SREs and future RINs value - Management discussed the importance of SREs and the expectation of continued support from the EPA regarding future RINs [20][22] Question: Consolidation of DKL and ownership goals - Management highlighted ongoing efforts to ensure the value of the midstream business is reflected in share prices and discussed potential strategies for further consolidation [40][42] Question: Drivers of raised cash flow guidance - Management attributed the raised guidance to the success of the Enterprise Optimization Plan and ongoing operational improvements [51][52] Question: Supply line performance and future expectations - Management noted that the supply and marketing segment has shown strength due to EOP initiatives and market optimization efforts [58][60]