- Net loss of $76.8 million or $(1.20) per share, adjusted net
loss of $93.0 million or $(1.45) per share, adjusted EBITDA of
$70.6 million
- During 3Q' 2024, we successfully closed previously announced
transactions to further our SOTP strategy:
- Sold our retail assets for proceeds of $390 million
- DK & Delek Logistics(DKL) executed the intercompany
amendments and extensions
- Completed the drop-down of Wink to Webster ("W2W") pipeline
into DKL
- DKL closed the acquisition of H2O Midstream, further adding
to its third party cash flows
- Announced the Enterprise Optimization Plan ("EOP") expected
to increase overall profitability by at least $100 million
- DKL announced another record quarterly EBITDA of $106.1
million
- Paid $16.4 million of dividends and announced regular
quarterly dividend of $0.255 per share in October
Delek US Holdings, Inc. (NYSE: DK) (“Delek US”, "Company") today
announced financial results for its third quarter ended September
30, 2024.
“We are excited about the significant progress we have made
on i. our 'Sum of the Parts' efforts, ii. Operational improvements
& iii. Cost reductions,” said Avigal Soreq, President and
Chief Executive Officer of Delek US. “After closing the
transactions we announced with our last earnings call, we are
currently focused on maximizing the value of the third party
businesses at Delek Logistics as a next step in our 'Sum of the
Parts' efforts. We are also working hard to increase the
overall profitability and free cash flow generation power of our
company through our Enterprise Optimization Plan (EOP).”
"Looking ahead, we will continue to execute on our priorities of
running safe and reliable operations, and making further progress
on midstream deconsolidation, our EOP efforts, and delivering
shareholder value while maintaining our financial strength and
flexibility,” Soreq concluded.
Delek US Results
Three Months Ended September
30,
Nine Months Ended September
30,
($ in millions, except per share
data)
2024
2023
2024
2023
Net (loss) income attributable to Delek
US
$
(76.8
)
$
128.7
$
(146.6
)
$
184.7
Total diluted (loss) income per share
$
(1.20
)
$
1.97
$
(2.29
)
$
2.78
Adjusted net (loss) income
$
(93.0
)
$
131.9
$
(178.5
)
$
289.8
Adjusted net (loss) income per share
$
(1.45
)
$
2.02
$
(2.78
)
$
4.37
Adjusted EBITDA
$
70.6
$
345.1
$
336.8
$
889.1
Refining Segment
The refining segment Adjusted EBITDA was $10.2 million in the
third quarter 2024 compared with $296.1 million in the same quarter
last year, which reflects other inventory impacts of $25.8 million
and $(28.2) million for third quarter 2024 and 2023, respectively.
The decrease over 2023 is primarily due to lower refining crack
spreads. During the third quarter 2024, Delek US's benchmark crack
spreads were down an average of 49.1% from prior-year levels.
Logistics Segment
The logistics segment Adjusted EBITDA in the third quarter 2024
was $106.1 million compared with $96.5 million in the prior year
quarter. The increase over last year's third quarter was driven by
strong contributions from Delaware Gathering systems, annual rate
increases and the impact of the W2W dropdown.
Corporate and Other
Activity
Adjusted EBITDA from Corporate, Other and Eliminations was a
loss of $(53.9) million in the third quarter 2024 compared with a
loss of $(63.9) million in the prior-year period. The decreased
losses were driven by lower employee related expenses, partially
offset by the impact of the W2W dropdown.
Shareholder
Distributions
On October 30, 2024, the Board of Directors approved the regular
quarterly dividend of $0.255 per share that will be paid on
November 18, 2024 to shareholders of record on November 12,
2024.
Liquidity
As of September 30, 2024, Delek US had a cash balance of
$1,037.6 million and total consolidated long-term debt of $2,789.4
million, resulting in net debt of $1,751.8 million. As of September
30, 2024, Delek Logistics Partners, LP (NYSE: DKL) ("Delek
Logistics") had $7.3 million of cash and $1,894.3 million of total
long-term debt, which are included in the consolidated amounts on
Delek US' balance sheet. Excluding Delek Logistics, Delek US had
$1,030.3 million in cash and $895.1 million of long-term debt, or a
$135.2 million net cash position.
Third Quarter 2024 Results | Conference
Call Information
Delek US will hold a conference call to discuss its third
quarter 2024 results on Wednesday, November 6, 2024 at 9:00 a.m.
Central Time. Investors will have the opportunity to listen to the
conference call live by going to www.DelekUS.com and clicking on
the Investor Relations tab. Participants are encouraged to register
at least 15 minutes early to download and install any necessary
software. Presentation materials accompanying the call will be
available on the investor relations tab of the Delek US website
approximately ten minutes prior to the start of the call. For those
who cannot listen to the live broadcast, the online replay will be
available on the website for 90 days.
Investors may also wish to listen to Delek Logistics’ (NYSE:
DKL) third quarter 2024 earnings conference call that will be held
on Wednesday, November 6, 2024 at 10:30 a.m. Central Time and
review Delek Logistics’ earnings press release. Market trends and
information disclosed by Delek Logistics may be relevant to the
logistics segment reported by Delek US. Both a replay of the
conference call and press release for Delek Logistics will be
available online at www.deleklogistics.com.
About Delek US Holdings,
Inc.
Delek US Holdings, Inc. is a diversified downstream energy
company with assets in petroleum refining, logistics, pipelines,
and renewable fuels. The refining assets consist primarily of
refineries operated in Tyler and Big Spring, Texas, El Dorado,
Arkansas and Krotz Springs, Louisiana with a combined nameplate
crude throughput capacity of 302,000 barrels per day. Pipeline
assets include an ownership interest in the 650-mile Wink to
Webster long-haul crude oil pipeline.
The logistics operations include Delek Logistics Partners, LP
(NYSE: DKL). Delek Logistics Partners, LP is a growth-oriented
master limited partnership focused on owning and operating
midstream energy infrastructure assets. Delek US Holdings, Inc. and
its subsidiaries owned approximately 70.4% (including the general
partner interest) of Delek Logistics Partners, LP at September 30,
2024.
Safe Harbor Provisions Regarding
Forward-Looking Statements
This press release contains forward-looking statements that are
based upon current expectations and involve a number of risks and
uncertainties. Statements concerning current estimates,
expectations and projections about future results, performance,
prospects, opportunities, plans, actions and events and other
statements, concerns, or matters that are not historical facts are
“forward-looking statements,” as that term is defined under the
federal securities laws. These statements contain words such as
“possible,” “believe,” “should,” “could,” “would,” “predict,”
“plan,” “estimate,” “intend,” “may,” “anticipate,” “will,” “if",
“potential,” “expect” or similar expressions, as well as statements
in the future tense. These forward-looking statements include, but
are not limited to, statements regarding throughput at the
Company’s refineries; crude oil prices, discounts and quality and
our ability to benefit therefrom; cost reductions; growth;
scheduled turnaround activity; projected capital expenditures and
investments into our business; liquidity and EBITDA impacts from
strategic and intercompany transactions; the performance and
execution of our midstream growth initiatives, including the
Permian Gathering System, the Red River joint venture and the Wink
to Webster long-haul crude oil pipeline, and the flexibility,
benefits and the expected returns therefrom; projected benefits of
the Delaware Gathering Acquisition, renewable identification
numbers ("RINs") waivers and tax credits and the value and benefit
therefrom; cash and liquidity; emissions reductions; opportunities
and anticipated performance and financial position.
Investors are cautioned that the following important factors,
among others, may affect these forward-looking statements. These
factors include, but are not limited to: uncertainty related to
timing and amount of future share repurchases and dividend
payments; 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, uncertainties
regarding future decisions by the Organization of Petroleum
Exporting Countries ("OPEC") regarding production and pricing
disputes between OPEC members and Russia; risks and uncertainties
related to the integration by Delek Logistics of the Delaware
Gathering business following its acquisition; Delek US' ability to
realize cost reductions; risks related to Delek US’ exposure to
Permian Basin crude oil, such as supply, pricing, gathering,
production and transportation capacity; gains and losses from
derivative instruments; risks associated with acquisitions and
dispositions; risks and uncertainties with respect to the possible
benefits of the retail and H20 Midstream transactions; acquired
assets may suffer a diminishment in fair value as a result of which
we may need to record a write-down or impairment in carrying value
of the asset; the possibility of litigation challenging renewable
fuel standard waivers; changes in the scope, costs, and/or timing
of capital and maintenance projects; the ability to grow the
Permian Gathering System; the ability of the Red River joint
venture to complete the expansion project to increase the Red River
pipeline capacity; operating hazards inherent in transporting,
storing and processing crude oil and intermediate and finished
petroleum products; our competitive position and the effects of
competition; the projected growth of the industries in which we
operate; general economic and business conditions affecting the
geographic areas in which we operate; and other risks described in
Delek US’ filings with the United States Securities and Exchange
Commission (the “SEC”), including risks disclosed in our Annual
Report on Form 10-K, Quarterly Reports on Form 10-Q and other
filings and reports with the SEC.
Forward-looking statements should not be read as a guarantee of
future performance or results and will not be accurate indications
of the times at, or by, which such performance or results will be
achieved. Forward-looking information is based on information
available at the time and/or management's good faith belief with
respect to future events, and is subject to risks and uncertainties
that could cause actual performance or results to differ materially
from those expressed in the statements. Delek US undertakes no
obligation to update or revise any such forward-looking statements
to reflect events or circumstances that occur, or which Delek US
becomes aware of, after the date hereof, except as required by
applicable law or regulation.
Non-GAAP Disclosures:
Our management uses certain “non-GAAP” operational measures to
evaluate our operating segment performance and non-GAAP financial
measures to evaluate past performance and prospects for the future
to supplement our financial information presented in accordance
with United States ("U.S.") Generally Accepted Accounting
Principles ("GAAP"). These financial and operational non-GAAP
measures are important factors in assessing our operating results
and profitability and include:
- Adjusting items - certain identified infrequently occurring
items, non-cash items, and items that are not attributable to or
indicative of our on-going operations or that may obscure our
underlying results and trends;
- Adjusted net income (loss) - calculated as net income (loss)
attributable to Delek US adjusted for relevant Adjusting items
recorded during the period;
- Adjusted net income (loss) per share - calculated as Adjusted
net income (loss) divided by weighted average shares outstanding,
assuming dilution, as adjusted for any anti-dilutive instruments
that may not be permitted for consideration in GAAP earnings per
share calculations but that nonetheless favorably impact
dilution;
- Earnings before interest, taxes, depreciation and amortization
("EBITDA") - calculated as net income (loss) attributable to Delek
US adjusted to add back interest expense, income tax expense,
depreciation and amortization;
- Adjusted EBITDA - calculated as EBITDA adjusted for the
relevant identified Adjusting items in Adjusted net income (loss)
that do not relate to interest expense, income tax expense,
depreciation or amortization, and adjusted to include income (loss)
attributable to non-controlling interests;
- Refining margin - calculated as gross margin (which we define
as sales minus cost of sales) adjusted for operating expenses and
depreciation and amortization included in cost of sales;
- Adjusted refining margin - calculated as refining margin
adjusted for other inventory impacts, net inventory LCM valuation
loss (benefit), unrealized hedging (gain) loss and intercompany
lease impacts;
- Refining production margin - calculated based on the regional
market sales price of refined products produced, less allocated
transportation, Renewable Fuel Standard volume obligation and
associated feedstock costs. This measure reflects the economics of
each refinery exclusive of the financial impact of inventory price
risk mitigation programs and marketing uplift strategies;
- Refining production margin per throughput barrel - calculated
as refining production margin divided by our average refining
throughput in barrels per day (excluding purchased barrels)
multiplied by 1,000 and multiplied by the number of days in the
period; and
- Net debt - calculated as long-term debt including both current
and non-current portions (the most comparable GAAP measure) less
cash and cash equivalents as of a specific balance sheet date.
We believe these non-GAAP operational and financial measures are
useful to investors, lenders, ratings agencies and analysts to
assess our ongoing performance because, when reconciled to their
most comparable GAAP financial measure, they provide improved
relevant comparability between periods, to peers or to market
metrics through the inclusion of retroactive regulatory or other
adjustments as if they had occurred in the prior periods they
relate to, or through the exclusion of certain items that we
believe are not indicative of our core operating performance and
that may obscure our underlying results and trends. “Net debt,”
also a non-GAAP financial measure, is an important measure to
monitor leverage and evaluate the balance sheet.
Non-GAAP measures have important limitations as analytical
tools, because they exclude some, but not all, items that affect
net earnings and operating income. These measures should not be
considered substitutes for their most directly comparable U.S. GAAP
financial measures. Additionally, because Adjusted net income or
loss, Adjusted net income or loss per share, EBITDA and Adjusted
EBITDA, Adjusted Refining Margin and Refining Production Margin or
any of our other identified non-GAAP measures may be defined
differently by other companies in its industry, Delek US'
definition may not be comparable to similarly titled measures of
other companies. See the accompanying tables in this earnings
release for a reconciliation of these non-GAAP measures to the most
directly comparable GAAP measures.
Delek US Holdings, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
($ in millions, except share and per
share data)
September 30, 2024
December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents
$
1,037.6
$
821.8
Accounts receivable, net
561.6
783.7
Inventories, net of inventory valuation
reserves
915.0
941.2
Current assets of discontinued
operations
—
41.5
Other current assets
50.6
77.8
Total current assets
2,564.8
2,666.0
Property, plant and equipment:
Property, plant and equipment
4,790.7
4,460.3
Less: accumulated depreciation
(1,961.7
)
(1,764.0
)
Property, plant and equipment, net
2,829.0
2,696.3
Operating lease right-of-use assets
98.8
121.5
Goodwill
687.5
687.5
Other intangibles, net
328.6
287.7
Equity method investments
408.7
360.7
Non-current assets of discontinued
operations
—
228.1
Other non-current assets
112.9
124.0
Total assets
$
7,030.3
$
7,171.8
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
1,713.6
$
1,814.3
Current portion of long-term debt
9.5
44.5
Current portion of obligation under
Inventory Intermediation Agreement
3.6
0.4
Current portion of operating lease
liabilities
45.6
50.1
Current liabilities of discontinued
operations
—
11.5
Accrued expenses and other current
liabilities
694.7
764.3
Total current liabilities
2,467.0
2,685.1
Non-current liabilities:
Long-term debt, net of current portion
2,779.9
2,555.3
Obligation under Inventory Intermediation
Agreement
385.3
407.2
Environmental liabilities, net of current
portion
33.7
110.9
Asset retirement obligations
24.4
36.4
Deferred tax liabilities
243.9
264.1
Operating lease liabilities, net of
current portion
63.7
85.7
Non-current liabilities of discontinued
operations
—
34.3
Other non-current liabilities
87.0
33.1
Total non-current liabilities
3,617.9
3,527.0
Redeemable non-controlling interest
70.0
—
Stockholders’ equity:
Preferred stock, $0.01 par value,
10,000,000 shares authorized, no shares issued and outstanding
—
—
Common stock, $0.01 par value, 110,000,000
shares authorized, 81,231,308 shares and 81,539,871 shares issued
at September 30, 2024 and December 31, 2023, respectively
0.8
0.8
Additional paid-in capital
1,172.7
1,113.6
Accumulated other comprehensive loss
(4.8
)
(4.8
)
Treasury stock, 17,575,527 shares, at
cost, at September 30, 2024 and December 31, 2023, respectively
(694.1
)
(694.1
)
Retained earnings
228.5
430.0
Non-controlling interests in
subsidiaries
172.3
114.2
Total stockholders’ equity
875.4
959.7
Total liabilities, redeemable
non-controlling interest and stockholders’ equity
$
7,030.3
$
7,171.8
Delek US Holdings, Inc.
Condensed Consolidated Statements of
Income (Unaudited)
($ in millions, except share and per
share data)
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
Net revenues
$
3,042.4
$
4,628.8
$
9,478.5
$
12,525.1
Cost of sales:
Cost of materials and other
2,788.7
4,049.4
8,547.1
11,111.2
Operating expenses (excluding depreciation
and amortization presented below)
181.4
217.7
580.3
577.2
Depreciation and amortization
92.5
83.7
259.6
243.1
Total cost of sales
3,062.6
4,350.8
9,387.0
11,931.5
Operating expenses related to wholesale
business (excluding depreciation and amortization presented
below)
3.7
(3.7
)
5.7
3.9
General and administrative expenses
70.4
67.7
191.6
208.0
Depreciation and amortization
5.6
4.0
18.6
12.1
Asset impairment
9.2
—
31.3
—
Other operating expense (income), net
12.8
(2.1
)
(67.6
)
(19.0
)
Total operating costs and expenses
3,164.3
4,416.7
9,566.6
12,136.5
Operating (loss) income
(121.9
)
212.1
(88.1
)
388.6
Interest expense, net
78.8
82.4
244.1
239.1
Income from equity method investments
(25.1
)
(27.0
)
(77.4
)
(67.1
)
Other (income) expense, net
(0.5
)
2.0
(1.1
)
(4.6
)
Total non-operating expense, net
53.2
57.4
165.6
167.4
(Loss) income from continuing operations
before income tax (benefit) expense
(175.1
)
154.7
(253.7
)
221.2
Income tax (benefit) expense
(40.3
)
29.1
(56.7
)
38.3
(Loss) income from continuing operations,
net of tax
(134.8
)
125.6
(197.0
)
182.9
Discontinued operations:
Income from discontinued operations,
including gain on sale of discontinued operations
95.4
12.9
107.8
29.1
Income tax expense
28.1
2.4
29.6
5.2
Income from discontinued operations, net
of tax
67.3
10.5
78.2
23.9
Net (loss) income
(67.5
)
136.1
(118.8
)
206.8
Net income attributable to:
Non-controlling interests
9.3
7.4
27.8
22.1
Net (loss) income attributable to
Delek
$
(76.8
)
$
128.7
$
(146.6
)
$
184.7
Basic (loss) income per share:
(Loss) income from continuing
operations
$
(2.25
)
$
1.82
$
(3.51
)
$
2.44
Income from discontinued operations
1.05
0.16
$
1.22
$
0.36
Total basic (loss) income per share
$
(1.20
)
$
1.98
$
(2.29
)
$
2.80
Diluted (loss) income per share:
(Loss) income from continuing
operations
$
(2.25
)
$
1.81
$
(3.51
)
$
2.42
Income from discontinued operations
1.05
0.16
$
1.22
$
0.36
Total diluted (loss) income per share
$
(1.20
)
$
1.97
$
(2.29
)
$
2.78
Weighted average common shares
outstanding:
Basic
64,063,609
64,889,504
64,099,700
65,864,141
Diluted
64,063,609
65,464,970
64,099,700
66,372,335
Delek US Holdings, Inc.
Condensed Cash Flow Data
(Unaudited)
($ in millions)
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
Cash flows from operating
activities:
Cash (used in) provided by operating
activities - continuing operations
$
(22.1
)
$
420.2
$
78.9
$
891.7
Cash provided by operating activities -
discontinued operations
0.5
12.4
17.8
31.1
Net cash (used in) provided by operating
activities
(21.6
)
432.6
96.7
922.8
Cash flows from investing
activities:
Cash used in investing activities -
continuing operations
(298.4
)
(50.5
)
(387.4
)
(320.6
)
Cash provided by (used in) investing
activities - discontinued operations
376.8
(8.2
)
361.7
(18.0
)
Net cash provided by (used in) investing
activities
78.4
(58.7
)
(25.7
)
(338.6
)
Cash flows from financing
activities:
Cash provided by (used in) financing
activities - continuing operations
322.9
(293.8
)
144.4
(523.8
)
Net cash provided by (used in) financing
activities
322.9
(293.8
)
144.4
(523.8
)
Net increase in cash and cash
equivalents
379.7
80.1
215.4
60.4
Cash and cash equivalents at the beginning
of the period
657.9
821.6
822.2
841.3
Cash and cash equivalents at the end of
the period
1,037.6
901.7
1,037.6
901.7
Less cash and cash equivalents of
discontinued operations at the end of the period
—
0.4
—
0.4
Cash and cash equivalents of continuing
operations at the end of the period
$
1,037.6
$
901.3
$
1,037.6
$
901.3
Significant Transactions During the Quarter Impacting
Results:
H20 Midstream Acquisition
On September 11, 2024, Delek Logistics completed the acquisition
of 100% of the limited liability company interests in H2O Midstream
Intermediate, LLC, H2O Midstream Permian LLC, and H2O Midstream LLC
(the "H2O Midstream Acquisition") from H2O Midstream Holdings, LLC.
The H2O Midstream Acquisition included water disposal and recycling
operations in the Midland Basin in Texas. The purchase price was
$229.5 million, subject to final working capital closing
adjustments and including $70.0 million of Preferred Units. Delek
Logistics incurred $6.1 million ($4.7 million after-tax) of
transaction related expenses in connection with the H2O Midstream
Acquisition during the three months ended September 30, 2024.
Retail
On September 30, 2024, Delek US closed the previously announced
transaction to sell 100% of the equity interests in four of Delek
US' wholly-owned subsidiaries that own and operate 249 retail fuel
and convenience stores (the "Retail Stores") under the Delek US
Retail brand to a subsidiary of Fomento Económico Mexicano, S.A.B.
de C.V. (“FEMSA”) ("Retail Transaction"). Net cash proceeds before
taxes related to this transaction were approximately $390.2
million. The Retail Transaction resulted in a gain on sale of the
Retail Stores, before income tax, of $98.4 million. As a result, we
met the requirements of ASC 205-20 and ASC 360 to report the
results of the Retail Stores as discontinued operations and to
classify the Retail Stores as a group of discontinued operations
assets.
Delek US and Delek Logistics Transactions
Wink to Webster Pipeline
On August 1, 2024, we purchased an additional 0.6% indirect
investment in Wink to Webster Pipeline LLC for $18.6 million,
bringing our total indirect ownership in the pipeline joint venture
to 15.6%. On August 5, 2024, we contributed all of our 50%
investment in W2W Holdings LLC ("HoldCo") which includes our 15.6%
indirect interest in the Wink to Webster Pipeline LLC joint venture
and related joint venture indebtedness, to a subsidiary of Delek
Logistics. Total consideration was comprised of $83.9 million
(including post-close adjustments) in cash, forgiveness of a $60.0
million payable to Delek Logistics and 2,300,000 of Delek Logistics
common units. The transaction was accounted for as an acquisition
of assets between entities under common control and we did not
record a gain or loss. As of August 5, 2024, the operating results
of HoldCo are now reported in our Logistics segment. Previously,
they were reported as part of corporate, other and
eliminations.
Amended and Extended Intercompany
Agreements
On August 5, 2024, we also amended and extended expired, or soon
to be expired, commercial agreements with subsidiaries of Delek
Logistics under which the Delek Logistics subsidiaries provide
various services, including crude oil gathering and crude oil,
intermediate and refined products transportation and storage
services, and marketing, terminalling and offloading services to us
as well as entered into an amended and restated Omnibus Agreement
with Delek Logistics. We incurred $5.4 million ($4.2 million
after-tax) of transaction related expenses in connection with these
agreements during the three months ended September 30, 2024.
As a result of these amendments, we had to reassess lease
classification for the agreements that contain leases under
Accounting Standards Codification 842. As a result of these lease
assessments, certain of these agreements met the criteria to be
accounted for as sales-type leases for Delek Logistics and finance
leases for the Refining segment. Therefore, portions of the minimum
volume commitments under these agreements subject to sales-type
lease accounting are recorded as interest income with the remaining
amounts recorded as a reduction in net investment in leases. Prior
to the amendments, these agreements were accounted for as operating
leases and these minimum volume commitments were recorded as
revenues in the Logistics segment. Similarly, these minimum volume
commitments were previously recorded as costs of sales for the
Refining segment, as the underlying lease was reclassified from an
operating lease to a finance lease, and these payments are now
recorded as interest expense and reductions in the lease liability.
These accounting changes have no impact to the Delek US
consolidated results as these amounts eliminate in
consolidation.
Restructuring Costs
In 2022, we announced that we are progressing a business
transformation focused on enterprise-wide opportunities to improve
the efficiency of our cost structure. For the third quarter 2024,
we recorded restructuring costs totaling $33.7 million ($26.1
million after-tax) associated with our business transformation.
Restructuring costs of $14.1 million are recorded in other
operating expense (income), net, $9.2 million are recorded in asset
impairment, $6.6 million are recorded in general and administrative
expenses and $3.8 million are included in operating expenses in our
condensed consolidated statements of income.
Other Inventory Impact
"Other inventory impact" is primarily calculated by multiplying
the number of barrels sold during the period by the difference
between current period weighted average purchase cost per barrel
directly related to our refineries and per barrel cost of materials
and other for the period recognized on a first-in, first-out basis
directly related to our refineries. It assumes no beginning or
ending inventory, so that the current period average purchase cost
per barrel is a reasonable estimate of our market purchase cost for
the current period, without giving effect to any build or draw on
beginning inventory. These amounts are based on management
estimates using a methodology including these assumptions. However,
this analysis provides management with a means to compare
hypothetical refining margins to current period average crack
spreads, as well as provides a means to better compare our results
to peers.
Reconciliation of Net Income (Loss)
Attributable to Delek US to Adjusted Net Income (Loss)
Three Months Ended September
30,
Nine Months Ended September
30,
$ in millions (unaudited)
2024
2023
2024
2023
Reported net (loss) income attributable
to Delek US
$
(76.8
)
$
128.7
$
(146.6
)
$
184.7
Adjusting items (1)
Inventory LCM valuation (benefit) loss
0.2
3.4
(10.5
)
(6.2
)
Tax effect
—
(0.8
)
2.4
1.4
Inventory LCM valuation (benefit) loss,
net
0.2
2.6
(8.1
)
(4.8
)
Other inventory impact
25.8
(28.2
)
39.0
145.4
Tax effect
(5.8
)
6.4
(8.8
)
(32.7
)
Other inventory impact, net (2)
20.0
(21.8
)
30.2
112.7
Business interruption insurance and
settlement recoveries
—
(0.2
)
(10.6
)
(10.0
)
Tax effect
—
0.1
2.4
2.3
Business interruption insurance and
settlement recoveries, net
—
(0.1
)
(8.2
)
(7.7
)
Unrealized inventory/commodity hedging
(gain) loss where the hedged item is not yet recognized in the
financial statements
(8.0
)
17.4
1.1
(8.1
)
Tax effect
1.8
(3.9
)
(0.2
)
1.8
Unrealized inventory/commodity hedging
(gain) loss where the hedged item is not yet recognized in the
financial statements, net
(6.2
)
13.5
0.9
(6.3
)
Transaction related expenses
20.9
—
20.9
—
Tax effect
(4.7
)
—
(4.7
)
—
Transaction related expenses, net (2)
16.2
—
16.2
—
Unrealized RINs hedging (gain) loss where
the hedged item is not yet recognized in the financial
statements
(2.6
)
—
3.7
—
Tax effect
0.6
—
(0.8
)
—
Unrealized RINs hedging (gain) loss where
the hedged item is not yet recognized in the financial statements,
net (3)
(2.0
)
—
2.9
—
Restructuring costs
33.7
3.5
59.5
6.4
Tax effect
(7.6
)
(0.7
)
(13.4
)
(1.4
)
Restructuring costs, net (2)
26.1
2.8
46.1
5.0
El Dorado refinery fire losses
—
8.0
—
8.0
Tax effect
—
(1.8
)
—
(1.8
)
El Dorado refinery fire losses, net
—
6.2
—
6.2
Property settlement
—
—
(53.4
)
—
Tax effect
—
—
12.0
—
Property settlement, net
—
—
(41.4
)
—
Gain on sale of Retail Stores
(98.4
)
—
(98.4
)
—
Tax effect
27.9
—
27.9
—
Gain on sale of Retail Stores, net (2)
(70.5
)
—
(70.5
)
—
Total adjusting items (1)
(16.2
)
3.2
(31.9
)
105.1
Adjusted net (loss) income
$
(93.0
)
$
131.9
$
(178.5
)
$
289.8
(1)
All adjustments have been tax
effected using the estimated marginal income tax rate, as
applicable.
(2)
See further discussion in the
"Significant Transactions During the Quarter Impacting Results"
section.
(3)
Starting with the quarter ended
March 31, 2024, we updated our non-GAAP financial measures to
include the impact of unrealized gains and losses related to RINs
where the hedged item is not yet recognized in the financial
statements. The impact to historical non-GAAP financial measures is
immaterial.
Reconciliation of U.S. GAAP Income (Loss) per share to Adjusted
Net Income (Loss) per share
Three Months Ended September
30,
Nine Months Ended September
30,
$ per share (unaudited)
2024
2023
2024
2023
Reported diluted (loss) income per
share
$
(1.20
)
$
1.97
$
(2.29
)
$
2.78
Adjusting items,
after tax (per share) (1) (2)
Net inventory LCM valuation (benefit)
loss
—
0.04
(0.13
)
(0.07
)
Other inventory impact (3)
0.31
(0.33
)
0.47
1.70
Business interruption insurance and
settlement recoveries
—
—
(0.13
)
(0.12
)
Unrealized inventory/commodity hedging
(gain) loss where the hedged item is not yet recognized in the
financial statements
(0.10
)
0.21
0.01
(0.09
)
Unrealized RINs hedging (gain) loss where
the hedged item is not yet recognized in the financial statements
(4)
(0.03
)
—
0.05
—
Transaction related expenses (3)
0.25
—
0.25
—
Restructuring costs (3)
0.41
0.04
0.73
0.08
El Dorado refinery fire losses
—
0.09
—
0.09
Property settlement
—
—
(0.65
)
—
Gain on sale of Retail Stores (3)
(1.09
)
—
(1.09
)
—
Total adjusting items (1)
(0.25
)
0.05
(0.49
)
1.59
Adjusted net (loss) income per
share
$
(1.45
)
$
2.02
$
(2.78
)
$
4.37
(1)
The adjustments have been tax effected
using the estimated marginal tax rate, as applicable.
(2)
For periods of Adjusted net loss,
Adjustments (Adjusting items) and Adjusted net loss per share are
presented using basic weighted average shares outstanding.
(3)
See further discussion in the "Significant
Transactions During the Quarter Impacting Results" section.
(4)
Starting with the quarter ended March 31,
2024, we updated our non-GAAP financial measures to include the
impact of unrealized gains and losses related to RINs where the
hedged item is not yet recognized in the financial statements. The
impact to historical non-GAAP financial measures is immaterial.
Reconciliation of Net Income (Loss) attributable to Delek US to
Adjusted EBITDA
Three Months Ended September
30,
Nine Months Ended September
30,
$ in millions (unaudited)
2024
2023
2024
2023
Reported net (loss) income attributable
to Delek US
$
(76.8
)
$
128.7
$
(146.6
)
$
184.7
Add:
Interest expense, net
78.8
82.3
244.2
239.2
Income tax expense (benefit)
(12.2
)
31.5
(27.1
)
43.5
Depreciation and amortization
99.9
91.3
287.2
264.1
EBITDA attributable to Delek US
89.7
333.8
357.7
731.5
Adjusting
items
Net inventory LCM valuation (benefit)
loss
0.2
3.4
(10.5
)
(6.2
)
Other inventory impact (1)
25.8
(28.2
)
39.0
145.4
Business interruption insurance and
settlement recoveries
—
(0.2
)
(10.6
)
(10.0
)
Unrealized inventory/commodity hedging
(gain) loss where the hedged item is not yet recognized in the
financial statements
(8.0
)
17.4
1.1
(8.1
)
Unrealized RINs hedging (gain) loss where
the hedged item is not yet recognized in the financial statements
(2)
(2.6
)
—
3.7
—
Transaction related expenses (1)
20.9
—
20.9
—
Restructuring costs (1)
33.7
3.5
59.5
6.4
El Dorado refinery fire losses
—
8.0
—
8.0
Property settlement
—
—
(53.4
)
—
Gain on sale of Retail Stores (1)
(98.4
)
—
(98.4
)
—
Net income attributable to non-controlling
interest
9.3
7.4
27.8
22.1
Total Adjusting items
(19.1
)
11.3
(20.9
)
157.6
Adjusted EBITDA
$
70.6
$
345.1
$
336.8
$
889.1
(1)
See further discussion in the
"Significant Transactions During the Quarter Impacting Results"
section.
(2)
Starting with the quarter ended
March 31, 2024, we updated our non-GAAP financial measures to
include the impact of unrealized gains and losses related to RINs
where the hedged item is not yet recognized in the financial
statements. The impact to historical non-GAAP financial measures is
immaterial.
Reconciliation of (Loss) Income From Continuing Operations, Net
of Tax to Adjusted EBITDA from Continuing Operations
Three Months Ended September
30,
Nine Months Ended September
30,
$ in millions (unaudited)
2024
2023
2024
2023
Reported loss (income) from continuing
operations, net of tax
$
(134.8
)
$
125.6
$
(197.0
)
$
182.9
Add:
Interest expense, net
78.8
82.4
244.1
239.1
Income tax expense (benefit)
(40.3
)
29.1
(56.7
)
38.3
Depreciation and amortization
98.1
87.7
278.2
255.2
EBITDA attributable to Delek US
1.8
324.8
268.6
715.5
Adjusting
items
Net inventory LCM valuation (benefit)
loss
0.2
3.4
(10.5
)
(6.2
)
Other inventory impact (1)
25.8
(28.2
)
39.0
145.4
Business interruption insurance and
settlement recoveries
—
(0.2
)
(10.6
)
(10.0
)
Unrealized inventory/commodity hedging
(gain) loss where the hedged item is not yet recognized in the
financial statements
(8.0
)
17.4
1.1
(8.1
)
Unrealized RINs hedging (gain) loss where
the hedged item is not yet recognized in the financial statements
(2)
(2.6
)
—
3.7
—
Transaction related expenses (1)
11.5
—
11.5
—
Restructuring costs (1)
33.7
3.5
59.5
6.4
El Dorado refinery fire losses
—
8.0
—
8.0
Property settlement
—
—
(53.4
)
—
Total Adjusting items
60.6
3.9
40.3
135.5
Adjusted EBITDA from continuing
operations
$
62.4
$
328.7
$
308.9
$
851.0
(1)
See further discussion in the
"Significant Transactions During the Quarter Impacting Results"
section.
(2)
Starting with the quarter ended
March 31, 2024, we updated our non-GAAP financial measures to
include the impact of unrealized gains and losses related to RINs
where the hedged item is not yet recognized in the financial
statements. The impact to historical non-GAAP financial measures is
immaterial.
Reconciliation of Income From Discontinued Operations, Net of
Tax to Adjusted EBITDA from Discontinued Operations
Three Months Ended September
30,
Nine Months Ended September
30,
$ in millions (unaudited)
2024
2023
2024
2023
Reported income from discontinued
operations, net of tax
$
67.3
$
10.5
$
78.2
$
23.9
Add:
Interest expense (income), net
—
(0.1
)
0.1
0.1
Income tax expense
28.1
2.4
29.6
5.2
Depreciation and amortization
1.8
3.6
9.0
8.9
EBITDA attributable to discontinued
operations
97.2
16.4
116.9
38.1
Adjusting items
Transaction costs (1)
9.4
—
9.4
—
Gain on sale of Retail Stores (1)
(98.4
)
—
(98.4
)
—
Total Adjusting items
(89.0
)
—
(89.0
)
—
Adjusted EBITDA from discontinued
operations
$
8.2
$
16.4
$
27.9
$
38.1
(1)
See further discussion in the "Significant
Transactions During the Quarter Impacting Results" section.
Reconciliation of Segment EBITDA Attributable to Delek US to
Adjusted Segment EBITDA
Three Months Ended September
30, 2024
$ in millions (unaudited)
Refining
Logistics
Corporate, Other and
Eliminations
Consolidated
Segment EBITDA Attributable to Delek
US
$
12.8
$
68.6
$
(79.6
)
$
1.8
Adjusting
items
Net inventory LCM valuation (benefit)
loss
0.2
—
—
0.2
Other inventory impact (1)
25.8
—
—
25.8
Unrealized inventory/commodity hedging
(gain) loss where the hedged item is not yet recognized in the
financial statements
(8.0
)
—
—
(8.0
)
Unrealized RINs hedging (gain) loss where
the hedged item is not yet recognized in the financial statements
(2)
(2.6
)
—
—
(2.6
)
Transaction related expenses (1)
—
8.6
2.9
11.5
Restructuring costs (1)
14.1
—
19.6
33.7
Intercompany lease impacts (1)
(32.1
)
28.9
3.2
—
Total Adjusting items
(2.6
)
37.5
25.7
60.6
Adjusted Segment EBITDA
$
10.2
$
106.1
$
(53.9
)
$
62.4
Three Months Ended September
30, 2023
$ in millions (unaudited)
Refining (3)
Logistics
Corporate, Other and
Eliminations (3)
Consolidated
Segment EBITDA Attributable to Delek
US
$
295.7
$
96.5
$
(67.4
)
$
324.8
Adjusting
items
Net inventory LCM valuation (benefit)
loss
3.4
—
—
3.4
Other inventory impact (1)
(28.2
)
—
—
(28.2
)
Unrealized inventory/commodity hedging
(gain) loss where the hedged item is not yet recognized in the
financial statements
17.4
—
—
17.4
Restructuring costs
—
—
3.5
3.5
Business interruption insurance
recoveries
(0.2
)
—
—
(0.2
)
El Dorado refinery fire losses
8.0
—
—
8.0
Total Adjusting items
0.4
—
3.5
3.9
Adjusted Segment EBITDA
$
296.1
$
96.5
$
(63.9
)
$
328.7
Reconciliation of Segment EBITDA
Attributable to Delek US to Adjusted Segment EBITDA
Nine Months Ended September
30, 2024
$ in millions (unaudited)
Refining (3)
Logistics
Corporate, Other and
Eliminations (3)
Consolidated
Segment EBITDA Attributable to Delek
US
$
135.2
$
268.9
$
(135.5
)
$
268.6
Adjusting items
Net inventory LCM valuation (benefit)
loss
(10.5
)
—
—
(10.5
)
Other inventory impact (1)
39.0
—
—
39.0
Unrealized inventory/commodity hedging
(gain) loss where the hedged item is not yet recognized in the
financial statements
1.1
—
—
1.1
Unrealized RINs hedging (gain) loss where
the hedged item is not yet recognized in the financial statements
(2)
3.7
—
—
3.7
Restructuring costs (1)
36.6
—
22.9
59.5
Transaction related expenses (1)
—
8.6
2.9
11.5
Business interruption settlement
recoveries
(10.6
)
—
—
(10.6
)
Property settlement
—
—
(53.4
)
(53.4
)
Intercompany lease impacts (1)
(32.1
)
28.9
3.2
—
Total Adjusting items
27.2
37.5
(24.4
)
40.3
Adjusted Segment EBITDA
$
162.4
$
306.4
$
(159.9
)
$
308.9
Nine Months Ended September
30, 2023
$ in millions (unaudited)
Refining (3)
Logistics
Corporate, Other and
Eliminations (3)
Consolidated
Segment EBITDA Attributable to Delek
US
$
613.0
$
278.8
$
(176.3
)
$
715.5
Adjusting
items
Net inventory LCM valuation (benefit)
loss
(6.2
)
—
—
(6.2
)
Other inventory impact (1)
145.4
—
—
145.4
Unrealized inventory/commodity hedging
(gain) loss where the hedged item is not yet recognized in the
financial statements
(8.1
)
—
—
(8.1
)
Restructuring costs
—
—
6.4
6.4
Business interruption insurance
recoveries
(10.0
)
—
—
(10.0
)
El Dorado refinery fire losses
8.0
—
—
8.0
Total Adjusting items
129.1
—
6.4
135.5
Adjusted Segment EBITDA
$
742.1
$
278.8
$
(169.9
)
$
851.0
(1)
See further discussion in the
"Significant Transactions During the Quarter Impacting Results"
section.
(2)
Starting with the quarter ended
March 31, 2024, we updated our non-GAAP financial measures to
include the impact of unrealized gains and losses related to RINs
where the hedged item is not yet recognized in the financial
statements. The impact to historical non-GAAP financial measures is
immaterial.
(3)
During the second quarter 2024,
we realigned our reportable segments for financial reporting
purposes to reflect changes in the manner in which our chief
operating decision maker, or CODM, assesses financial information
for decision-making purposes. The change represents reporting the
operating results of our 50% interest in a joint venture that owns
asphalt terminals located in the southwestern region of the U.S.
within the refining segment. Prior to this change, these operating
results were reported as part of corporate, other and eliminations.
While this reporting change did not change our consolidated
results, segment data for previous years has been restated and is
consistent with the current year presentation.
Refining Segment Selected Financial Information
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
Total Refining
Segment
(Unaudited)
(Unaudited)
Days in period
92
92
274
273
Total sales volume - refined product
(average barrels per day ("bpd")) (1)
309,175
307,626
312,075
295,141
Total production (average bpd)
303,882
303,399
302,858
287,375
Crude oil
295,350
294,726
291,042
275,310
Other feedstocks
12,245
11,222
15,727
14,815
Total throughput (average bpd)
307,595
305,948
306,769
290,125
Total refining production margin per bbl
total throughput
$
4.88
$
16.01
$
8.09
$
13.86
Total refining operating expenses per bbl
total throughput
$
5.12
$
5.47
$
5.34
$
5.50
Total refining production margin ($ in
millions)
$
138.1
$
450.5
$
680.3
$
1,097.7
Supply, marketing and other ($ millions)
(2)
10.7
(1.2
)
(88.4
)
95.0
Total adjusted refining margin ($ in
millions)
$
148.8
$
449.3
$
591.9
$
1,192.7
Total crude slate details
Total crude slate: (% based on amount
received in period)
WTI crude oil
69.4
%
73.4
%
70.9
%
73.3
%
Gulf Coast Sweet crude
8.8
%
3.3
%
7.5
%
4.0
%
Local Arkansas crude oil
3.2
%
4.0
%
3.3
%
4.1
%
Other
18.6
%
19.3
%
18.3
%
18.6
%
Crude utilization (% based on nameplate
capacity) (4)
97.8
%
97.6
%
96.4
%
91.2
%
Tyler, TX Refinery
Days in period
92
92
274
273
Products manufactured (average bpd):
Gasoline
35,962
35,615
36,620
30,750
Diesel/Jet
33,647
34,620
32,490
26,976
Petrochemicals, LPG, NGLs
3,429
3,429
2,432
2,409
Other
93
1,959
991
1,856
Total production
73,131
75,623
72,533
61,991
Throughput (average bpd):
Crude oil
73,385
74,877
71,671
59,379
Other feedstocks
1,613
1,118
2,641
3,243
Total throughput
74,998
75,995
74,312
62,622
Tyler refining production margin ($ in
millions)
$
51.6
$
165.4
$
224.6
$
329.7
Per barrel of throughput:
Tyler refining production margin
$
7.48
$
23.66
$
11.03
$
19.29
Operating expenses
$
4.61
$
4.74
$
4.90
$
5.06
Crude Slate: (% based on amount received
in period)
WTI crude oil
79.2
%
76.8
%
80.6
%
78.1
%
East Texas crude oil
19.6
%
23.2
%
19.0
%
21.9
%
Other
1.2
%
—
%
0.4
%
—
%
Capture rate (3)
47.8
%
73.0
%
58.4
%
64.0
%
El Dorado, AR Refinery
Days in period
92
92
274
273
Products manufactured (average bpd):
Gasoline
34,887
39,361
38,350
37,213
Diesel
29,854
31,927
30,587
29,211
Petrochemicals, LPG, NGLs
1,317
1,875
1,301
1,564
Asphalt
9,046
7,893
8,849
7,418
Other
993
1,168
1,291
1,034
Total production
76,097
82,224
80,378
76,440
Throughput (average bpd):
Crude oil
75,344
81,671
79,597
75,286
Other feedstocks
2,674
2,611
2,500
3,053
Total throughput
78,018
84,282
82,097
78,339
Refining Segment Selected Financial
Information (continued)
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
El Dorado refining production margin ($ in
millions)
$
4.7
$
97.5
$
97.0
$
231.0
Per barrel of throughput:
El Dorado refining production margin
$
0.66
$
12.57
$
4.31
$
10.80
Operating expenses
$
5.01
$
4.36
$
4.61
$
4.60
Crude Slate: (% based on amount received
in period)
WTI crude oil
68.3
%
71.9
%
67.0
%
67.6
%
Local Arkansas crude oil
12.4
%
13.4
%
11.9
%
14.8
%
Other
19.3
%
14.7
%
21.1
%
17.6
%
Capture rate (3)
4.2
%
38.8
%
22.8
%
35.8
%
Big Spring, TX Refinery
Days in period
92
92
274
273
Products manufactured (average bpd):
Gasoline
34,510
29,274
32,925
33,755
Diesel/Jet
26,303
23,607
25,282
23,333
Petrochemicals, LPG, NGLs
5,160
3,723
4,630
3,299
Asphalt
3,176
2,220
2,703
1,833
Other
3,290
5,272
4,290
3,283
Total production
72,439
64,096
69,830
65,503
Throughput (average bpd):
Crude oil
68,746
61,046
65,856
62,733
Other feedstocks
3,817
3,865
4,638
3,834
Total throughput
72,563
64,911
70,494
66,567
Big Spring refining production margin ($
in millions)
$
45.6
$
95.1
$
181.6
$
280.3
Per barrel of throughput:
Big Spring refining production margin
$
6.82
$
15.92
$
9.40
$
15.43
Operating expenses
$
6.08
$
8.37
$
6.78
$
7.61
Crude Slate: (% based on amount received
in period)
WTI crude oil
68.9
%
64.3
%
70.5
%
68.8
%
WTS crude oil
31.1
%
35.7
%
29.5
%
31.2
%
Capture rate (3)
44.7
%
50.9
%
51.5
%
52.6
%
Krotz Springs, LA Refinery
Days in period
92
92
274
273
Products manufactured (average bpd):
Gasoline
40,842
38,361
39,557
40,454
Diesel/Jet
32,879
30,653
31,203
31,794
Heavy oils
1,559
5,461
1,773
4,239
Petrochemicals, LPG, NGLs
6,332
6,079
5,665
6,510
Other
602
902
1,919
446
Total production
82,214
81,456
80,117
83,443
Throughput (average bpd):
Crude oil
77,875
77,132
73,918
77,912
Other feedstocks
4,141
3,628
5,948
4,686
Total throughput
82,016
80,760
79,866
82,598
Krotz Springs refining production margin
($ in millions)
$
36.2
$
92.5
$
177.1
$
256.6
Per barrel of throughput:
Krotz Springs refining production
margin
$
4.80
$
12.45
$
8.09
$
11.38
Operating expenses
$
4.82
$
5.00
$
5.22
$
5.00
Crude Slate: (% based on amount received
in period)
WTI Crude
61.6
%
79.8
%
66.1
%
79.0
%
Gulf Coast Sweet Crude
32.8
%
11.2
%
28.6
%
13.5
%
Other
5.6
%
9.0
%
5.3
%
7.5
%
Capture rate (3)
42.0
%
63.9
%
55.3
%
68.4
%
(1)
Includes sales to other segments which are
eliminated in consolidation.
(2)
Supply, marketing and other activities
include refined product wholesale and related marketing activities,
asphalt and intermediates marketing activities, optimization of
inventory, the execution of risk management programs to capture the
physical and financial opportunities that extend from our refining
operations and our 50% interest in a joint venture that owns
asphalt terminals. Formally known as Trading & Supply.
(3)
Defined as refining production margin
divided by the respective crack spread. See page 19 for crack
spread information.
(4)
Crude throughput as % of total nameplate
capacity of 302,000 bpd.
Logistics Segment Selected Information
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
(Unaudited)
(Unaudited)
Gathering & Processing: (average
bpd)
Lion Pipeline System:
Crude pipelines (non-gathered)
68,430
70,153
71,576
64,835
Refined products pipelines
55,283
63,991
59,681
54,686
SALA Gathering System
13,886
14,774
12,113
13,935
East Texas Crude Logistics System
35,891
36,298
26,319
29,928
Midland Gathering Assets
185,179
248,443
201,796
230,907
Plains Connection System
188,421
250,550
218,323
248,763
Delaware Gathering Assets:
Natural gas gathering and processing
(Mcfd) (1)
75,719
69,737
76,092
72,569
Crude oil gathering (average bpd)
125,123
111,973
124,190
110,935
Water disposal and recycling (average
bpd)
123,856
99,158
120,360
104,920
Midland Water Gathering System: (2)
Water disposal and recycling (average
bpd)
100,335
—
100,335
—
Wholesale Marketing &
Terminalling:
East Texas - Tyler Refinery sales volumes
(average bpd) (3)
70,172
69,178
69,246
57,894
Big Spring wholesale marketing throughputs
(average bpd)
22,700
81,617
60,109
78,399
West Texas wholesale marketing throughputs
(average bpd)
6,552
10,692
5,276
9,871
West Texas wholesale marketing margin per
barrel
$
3.38
$
9.64
$
2.85
$
8.76
Terminalling throughputs (average bpd)
(4)
160,849
121,430
152,272
116,455
(1)
Mcfd - average thousand cubic
feet per day.
(2)
2024 volumes include volumes from
September 11, 2024 through September 30, 2024.
(3)
Excludes jet fuel and petroleum
coke.
(4)
Consists of terminalling
throughputs at our Tyler, Big Spring, Big Sandy and Mount Pleasant,
Texas terminals, El Dorado and North Little Rock, Arkansas
terminals and Memphis and Nashville, Tennessee terminals.
Supplemental Information
Schedule of Selected Segment Financial
Data, Pricing Statistics Impacting our Refining Segment, and Other
Reconciliations of Amounts Reported Under U.S. GAAP
Selected Segment Financial Data
Three Months Ended September
30, 2024
$ in millions (unaudited)
Refining
Logistics
Corporate, Other and
Eliminations
Consolidated
Net revenues (excluding intercompany fees
and revenues)
$
2,852.6
$
99.2
$
—
$
2,951.8
Inter-segment fees and revenues (1)
175.2
114.9
(199.5
)
90.6
Total revenues
$
3,027.8
$
214.1
$
(199.5
)
$
3,042.4
Cost of sales
3,083.3
168.3
(189.0
)
3,062.6
Gross margin
$
(55.5
)
$
45.8
$
(10.5
)
$
(20.2
)
Three Months Ended September
30, 2023
$ in millions (unaudited)
Refining
Logistics
Corporate, Other and
Eliminations
Consolidated
Net revenues (excluding intercompany fees
and revenues)
$
4,392.4
$
119.5
$
—
$
4,511.9
Inter-segment fees and revenues (1)
232.1
156.4
(271.6
)
116.9
Total revenues
$
4,624.5
$
275.9
$
(271.6
)
$
4,628.8
Cost of sales
4,394.4
206.5
(250.1
)
4,350.8
Gross margin
$
230.1
$
69.4
$
(21.5
)
$
278.0
Nine Months Ended September
30, 2024
$ in millions (unaudited)
Refining
Logistics
Corporate, Other and
Eliminations
Consolidated
Net revenues (excluding intercompany fees
and revenues)
$
8,872.1
$
319.4
$
—
$
9,191.5
Inter-segment fees and revenues (1)
571.2
411.4
(695.6
)
287.0
Total revenues
$
9,443.3
$
730.8
$
(695.6
)
$
9,478.5
Cost of sales
9,506.8
539.1
(658.9
)
9,387.0
Gross margin
$
(63.5
)
$
191.7
$
(36.7
)
$
91.5
Nine Months Ended September
30, 2023
$ in millions (unaudited)
Refining
Logistics
Corporate, Other and
Eliminations
Consolidated
Net revenues (excluding intercompany fees
and revenues)
$
11,842.2
$
351.9
$
—
$
12,194.1
Inter-segment fees and revenues (1)
629.3
414.4
(712.7
)
331.0
Total revenues
$
12,471.5
$
766.3
$
(712.7
)
$
12,525.1
Cost of sales
12,045.8
555.6
(669.9
)
11,931.5
Gross margin
$
425.7
$
210.7
$
(42.8
)
$
593.6
(1)
Intercompany fees and sales for the
refining segment include revenues of $90.6 million and $287.0
million during the three and nine months ended September 30, 2024,
respectively, and $116.9 million and $331.0 million during the
three and nine months ended September 30, 2023, respectively, to
the Retail Stores, the operations of which are reported in
discontinued operations.
Pricing Statistics
Three Months Ended September
30,
Nine Months Ended September
30,
(average for the period presented)
2024
2023
2024
2023
WTI — Cushing crude oil (per barrel)
$
75.28
$
82.51
$
77.72
$
77.37
WTI — Midland crude oil (per barrel)
$
75.96
$
83.85
$
78.75
$
78.63
WTS — Midland crude oil (per barrel)
$
75.25
$
83.01
$
77.91
$
77.34
LLS (per barrel)
$
77.28
$
84.88
$
80.23
$
79.82
Brent (per barrel)
$
78.71
$
85.92
$
81.81
$
81.96
U.S. Gulf Coast 5-3-2 crack spread (per
barrel) (1)
$
15.64
$
32.39
$
18.89
$
30.15
U.S. Gulf Coast 3-2-1 crack spread (per
barrel) (1)
$
15.27
$
31.30
$
18.26
$
29.30
U.S. Gulf Coast 2-1-1 crack spread (per
barrel) (1)
$
11.42
$
19.48
$
14.63
$
16.64
U.S. Gulf Coast Unleaded Gasoline (per
gallon)
$
2.11
$
2.58
$
2.21
$
2.44
Gulf Coast Ultra-low sulfur diesel (per
gallon)
$
2.24
$
2.97
$
2.43
$
2.74
U.S. Gulf Coast high sulfur diesel (per
gallon)
$
2.08
$
2.04
$
1.97
$
1.80
Natural gas (per MMBTU)
$
2.23
$
2.66
$
2.23
$
2.57
(1)
For our Tyler and El Dorado refineries, we
compare our per barrel refining product margin to the Gulf Coast
5-3-2 crack spread consisting of (Argus pricing) WTI Cushing crude,
U.S. Gulf Coast CBOB gasoline and U.S. Gulf Coast Pipeline No. 2
heating oil (ultra-low sulfur diesel). For our Big Spring refinery,
we compare our per barrel refining margin to the Gulf Coast 3-2-1
crack spread consisting of (Argus pricing) WTI Cushing crude, U.S.
Gulf Coast CBOB gasoline and Gulf Coast ultra-low sulfur diesel.
For 2023, for our Krotz Springs refinery, we compare our per barrel
refining margin to the Gulf Coast 2-1-1 crack spread consisting of
(Argus pricing) LLS crude oil, (Argus pricing) U.S. Gulf Coast CBOB
gasoline and 50% of (Argus pricing) U.S. Gulf Coast Pipeline No. 2
heating oil (high sulfur diesel) and 50% of (Platts pricing) U.S.
Gulf Coast Pipeline No. 2 heating oil (high sulfur diesel). For
2024, for our Krotz Springs refinery, we compare our per barrel
refining margin to the Gulf Coast 2-1-1 crack spread consisting of
(Argus pricing) LLS crude oil, (Argus pricing) U.S. Gulf Coast CBOB
gasoline and (Platts pricing) U.S. Gulf Coast Pipeline No. 2
heating oil (high sulfur diesel). The Tyler refinery's crude oil
input is primarily WTI Midland and East Texas, while the El Dorado
refinery's crude input is primarily a combination of WTI Midland,
local Arkansas and other domestic inland crude oil. The Big Spring
refinery’s crude oil input is primarily comprised of WTS and WTI
Midland. The Krotz Springs refinery’s crude oil input is primarily
comprised of LLS and WTI Midland.
Other Reconciliations of Amounts Reported Under U.S. GAAP
$ in millions (unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
Reconciliation of gross margin to
Refining margin to Adjusted refining margin
2024
2023
2024
2023
Gross margin
$
(55.5
)
$
230.1
$
(63.5
)
$
425.7
Add back (items included in cost of
sales):
Operating expenses (excluding depreciation
and amortization)
145.0
166.5
459.4
459.4
Depreciation and amortization
76.0
60.1
194.8
176.5
Refining margin
$
165.5
$
456.7
$
590.7
$
1,061.6
Adjusting
items
Net inventory LCM valuation loss
(benefit)
0.2
3.4
(10.5
)
(6.2
)
Other inventory impact (1)
25.8
(28.2
)
39.0
145.4
Unrealized inventory/commodity hedging
(gain) loss where the hedged item is not yet recognized in the
financial statements
(8.0
)
17.4
1.1
(8.1
)
Unrealized RINs hedging (gain) loss where
the hedged item is not yet recognized in the financial statements
(2)
(2.6
)
—
3.7
—
Intercompany lease impacts (1)
(32.1
)
—
(32.1
)
—
Total adjusting items
(16.7
)
(7.4
)
1.2
131.1
Adjusted refining margin
$
148.8
$
449.3
$
591.9
$
1,192.7
(1)
See further discussion in the "Significant
Transactions During the Quarter Impacting Results" section.
(2)
Starting with the quarter ended March 31,
2024, we updated our non-GAAP financial measures to include the
impact of unrealized gains and losses related to RINs where the
hedged item is not yet recognized in the financial statements. The
impact to historical non-GAAP financial measures is immaterial.
Calculation of Net (Cash) Debt
September 30, 2024
December 31, 2023
Long-term debt - current portion
$
9.5
$
44.5
Long-term debt - non-current portion
2,779.9
2,555.3
Total long-term debt
2,789.4
2,599.8
Less: Cash and cash equivalents
1,037.6
821.8
Net debt - consolidated
1,751.8
1,778.0
Less: DKL net debt
1,887.0
1,700.0
Net (cash) debt, excluding DKL
$
(135.2
)
$
78.0
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version on businesswire.com: https://www.businesswire.com/news/home/20241106197750/en/
Investor/Media Relations
Contacts: investor.relations@delekus.com
Information about Delek US Holdings, Inc. can be found on its
website (www.delekus.com), investor relations webpage
(ir.delekus.com), news webpage (www.delekus.com/news) and its X
account (@DelekUSHoldings).
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