•Reported second quarter net income of $361.8 million or $5.05 per share and Adjusted EBITDA of $518.4 million

•Record refinery utilization rates and strong operational performance helped drive record quarterly results

•Announced special dividend of $0.20 per share on June 21, 2022

•Announced a regular quarterly dividend at $0.20 per share

•Board approved expanded share repurchase authorization program up to $400 million

•DKL closed 3 Bear acquisition early on June 1, 2022; increases third party revenue, product mix and geography

•Strong free cash generation led to improved cash balance with $1.24 billion of cash as of June 30, 2022

BRENTWOOD, Tenn.-- August 4, 2022 -- Delek US Holdings, Inc. (NYSE: DK) (“Delek US”) today announced financial results for its second quarter ended June 30, 2022. Delek US reported second quarter 2022 net income of $361.8 million, or $5.05 per share, versus a net loss of $(56.7) million, or $(0.77) per share, for the quarter ended June 30, 2021. On an adjusted basis, Delek US reported Adjusted net income of $314.5 million, or $4.40 per share, for the second quarter 2022. This compares to Adjusted net loss of $(33.9) million, or $(0.46) per share, in the prior year. Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") was $518.4 million for the second quarter compared to Adjusted EBITDA of $46.1 million in the prior year.

Avigal Soreq, President and Chief Executive Officer of Delek US, stated, "The Board has approved a reinstatement of the “regular” quarterly dividend at $0.20 per share as well as an expansion of the share repurchase authorization to $400 million. Based on the current outlook, we expect to repurchase approximately $25 to $35 million of stock in the third quarter, while simultaneously further enhancing the balance sheet. We expect that the combination of full year dividend payments, along with announced share repurchases through the third quarter, will result in approximately $135 million of cash returns to shareholders in 2022, with upside depending on potential buyback activity in the fourth quarter. Our organic growth initiatives remain intact in both the midstream and retail segments. Finally, I would like to welcome the 3 Bear team to our organization. This acquisition closed early on June 1st and offers third party revenue, an expanded product mix and geographic diversification into the Delaware portion of the Permian."

Uzi Yemin, Executive Chairman of Delek US, stated, “The combination of multiple factors including: global capacity rationalization, post COVID demand recovery, reduced utilization trends in China and capacity outages stemming from the Russian/Ukraine conflict, have led to unprecedented strength in refining margins. This coupled with record utilization rates within our system led to record results in the quarter. I’m pleased to hand off the reins of CEO to Avigal Soreq with the company on strong financial footing including a cash balance of $1.24 billion and an outlook for strong cash generation into the future.”

On June 21, 2022 the company announced a special dividend of $0.20 per share that was paid on July 20, 2022. On August 1, 2022 the Board of Directors approved a regular quarterly cash dividend of $0.20 per share. Shareholders of record on August 22, 2022 will receive this cash dividend payable on September 6, 2022.

The Board also approved an approximately $170 million increase in its share repurchase authorization, bringing the total amount available for repurchases under current authorizations to $400 million. Delek US expects to commence the program with share repurchases of approximately $25 to $35 million of Delek US common stock during the third quarter 2022.

Net income attributable to Delek in the second quarter 2022 was $361.8 million compared to a $(56.7) million net loss in the second quarter 2021. On an adjusted basis, Adjusted net income was $314.5 million in the second quarter 2022 compared to Adjusted net loss of $(33.9) million in the second quarter 2021. The $348.4 million improvement in Adjusted net income is primarily attributable to improvements in refining operating results and contribution margins compared to the prior year quarter, including the impact of higher refining utilization rates and crack spreads during the current quarter compared to the prior period. See below for further discussion of operating results and contribution margin across our segments.

Refining contribution margin increased to $618.3 million in the second quarter 2022 from $14.1 million in the second quarter 2021, while Adjusted segment contribution margin was $557.4 million in the second quarter 2022 compared to $37.9 million in the second quarter 2021. On a year-over-year basis, our refining segment results were favorably impacted by improvements in crack spreads and increased demand, attributable in part to low clean product inventories and continued macroeconomic improvements around the pandemic combined with the impact of sanctions on Russian oil supply. We also experienced marked improvements in our refining utilization rates compared to the prior year period. Additionally, during the second quarter 2022, Delek US's benchmark crack spreads were up an average of approximately 181.7% from prior-year levels, though the refineries' ability to capture crack spreads continues to be negatively impacted by elevated RIN costs with an ongoing burden of the RFS program on small refineries.

The logistics segment contribution margin in the second quarter 2022 was $69.3 million compared to $64.2 million in the second quarter 2021, where Adjusted segment contribution margin was $69.5 million compared to $64.0 million in the prior year quarter. Overall performance benefited from strong refinery utilization rates and closing of the 3 Bear Delaware Holding - NM, LLC ("3 Bear") acquisition on June 1, 2022 (the "3 Bear Acquisition").

For the second quarter 2022, contribution margin, on both a GAAP and adjusted basis, was $18.2 million compared to $21.9 million and $22.0 million on a GAAP and adjusted basis, respectively, in the prior-year period for the retail segment. Merchandise sales were approximately $83.4 million with an average retail margin of 34.0% in the second quarter 2022, compared to merchandise sales of approximately $84.5 million with an average retail margin of 32.7% in the prior-year period. Approximately 44.9 million retail fuel gallons were sold at an average margin of $0.33 per gallon in the second quarter 2022 compared to 43.0 million retail fuel gallons sold at an average margin of $0.39 per gallon in the second quarter 2021. In the second quarter 2022, the average merchandise store count was 248 compared to 252 in the prior-year period. On a same-store-sales basis in the second quarter 2022, merchandise sales increased 0.1% and fuel gallons sold increased 5.8% compared to the prior-year period.

Contribution margin from Corporate, Other and Eliminations was a loss of $28.3 million in the second quarter 2022 compared to a loss of $35.5 million in the prior-year period, where Adjusted contribution margin was a $27.4 million loss compared to a $35.7 million loss in the same quarter of 2021, and where these amounts include inter-segment eliminations.

Returns from the Wink-to-Webster crude oil pipeline, in which Delek owns a 15% indirect joint venture interest, is currently reflected in income from equity method investments in the condensed consolidated statements of income, and is expected to ratably increase throughout the year. The 36-inch diameter pipeline, which is fully contracted with minimum volume commitments ("MVCs"), will originate in the Permian Basin and have destination points in the Houston market.

As of June 30, 2022, Delek US had a cash balance of $1.24 billion and total consolidated long-term debt of $2.82 billion, resulting in Net debt of $1.57 billion. As of June 30, 2022, Delek Logistics Partners, LP (NYSE: DKL) ("Delek Logistics") had $13.8 million of cash and $1.52 billion of total long-term debt, which are included in the consolidated amounts on Delek US' balance sheet. Excluding Delek Logistics, Delek US had approximately $1.23 billion in cash and $1.30 billion of long-term debt, or a $64.7 million Net debt position.

Delek US will hold a conference call to discuss its second quarter 2022 results on Thursday, August 4, 2022 at 10:00 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) second quarter 2022 earnings conference call that will be held on Thursday, August 4, 2022 at 9:00 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.

Delek US Holdings, Inc. is a diversified downstream energy company with assets in petroleum refining, logistics, renewable fuels and convenience store retailing. 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.

The logistics operations primarily consist of Delek Logistics Partners, LP (NYSE: DKL). Delek US Holdings, Inc. and its affiliates own approximately 78.9% (including the general partner interest) of Delek Logistics Partners, LP at June 30, 2022. Delek Logistics Partners, LP is a growth-oriented master limited partnership focused on owning and operating midstream energy infrastructure assets.

The convenience store retail segment operates approximately 248 convenience stores in West Texas and New Mexico.

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; investments into our business; 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 3 Bear acquisition, 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 OPEC regarding production and pricing disputes between OPEC members and Russia; risks and uncertainties related to the integration by Delek Logistics of the 3 Bear business following the recent acquisition; risks and uncertainties related to the Covid-19 pandemic; 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; 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; the ability of the joint venture to construct the Wink to Webster long haul crude oil pipeline; 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.

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 GAAP financial information presented in accordance with U.S. 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 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 attributable to Delek 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;

•Adjusted segment contribution margin - calculated as Segment contribution margin adjusted for the identified Adjusting Items in Adjusted net income (loss) that impact Segment contribution margin;

•Refining margin - calculated as the difference between total refining revenues and total cost of materials and other;

•Adjusted refining margin - calculated as refining margin adjusted for the relevant identified Adjusting items in Adjusted net income (loss) that impact refining margin and that, where applicable, can be identified and/or are measured and recognized at the refinery level;

•Refining margin per sales barrel - calculated as refining margin divided by our average refining sales in barrels per day (excluding purchased barrels) multiplied by 1,000 and multiplied by the number of days in the period;

•Adjusted refining margin per sales barrel - calculated as adjusted refining margin divided by our average refining sales 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, and Adjusted Segment Contribution 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.

(1) Adjusted to reflect the retrospective change in accounting policy from LIFO to FIFO for certain inventories.

(1) Adjusted to reflect the retrospective change in accounting policy from LIFO to FIFO for certain inventories.

(2) In the current period, we reassessed the classification of certain expenses and made certain reclassification adjustments to better represent the nature of those expenses. Accordingly, we have made reclassifications to the prior period in order to conform to this revised current period classification, which resulted in a decrease in the prior period general and administrative expenses and an increase in the prior period operating expenses of approximately $5.1 million and $11.1 million for the three and six months ended June 30, 2021, respectively.

Condensed Cash Flow Data (Unaudited)
(In millions)			Three Months Ended June 30,												Six Months Ended June 30,
			2022						2021 As Adjusted(1)						2022						2021 As Adjusted(1)
Cash flows from operating activities:
Net cash provided by operating activities			$	559.1					$	169.2					$	585.9					$	134.9
Cash flows from investing activities:
Net cash used in investing activities			(690.7)						(72.6)						(720.9)						(118.7)
Cash flows from financing activities:
Net cash provided by (used in) financing activities			522.1						(57.1)						523.1						29.3
Net increase in cash and cash equivalents			390.5						39.5						388.1						45.5
Cash and cash equivalents at the beginning of the period			854.1						793.5						856.5						787.5
Cash and cash equivalents at the end of the period			$	1,244.6					$	833.0					$	1,244.6					$	833.0

(1) Adjusted to reflect the retrospective change in accounting policy from LIFO to FIFO for certain inventories.

(1) Adjusted to reflect the retrospective change in accounting policy from LIFO to FIFO for certain inventories.

(2) In the current period, we reassessed the classification of certain expenses and made certain reclassification adjustments to better represent the nature of those expenses. Accordingly, we have made reclassifications to the prior period in order to conform to this revised current period classification, which resulted in a decrease in the prior period general and administrative expenses and an increase in the prior period operating expenses of approximately $5.1 million and $11.1 million for the three and six months ended June 30, 2021, respectively.

(3) Reflects an adjustment to net down year-to-date net revenues and cost of materials and other of approximately $362 million related to certain crude wholesale net settled transactions included in corporate, other and eliminations that occurred during the three months ended March 31, 2021, which was not reflected in the unaudited condensed consolidated financial statements as of and for the three months ended March 31, 2021, as filed on our March 31, 2021 Quarterly Report on Form 10-Q on May 6, 2021. Such uncorrected adjustment, as well as the subsequent out-of-period correction reflected above, did not relate to any of our reportable segments, had no impact on segment contribution margin, consolidated contribution margin or consolidated operating loss, and are not considered material to the condensed consolidated financial statements in either period.

On June 21, 2022, Delek announced that its Board of Directors declared a special cash dividend on its common stock of $0.20 per share payable to all shareholders of record of the Company’s common stock as of the close of business on July 12, 2022. The payment date for the special dividend was July 20, 2022.

On June 1, 2022, DKL Delaware Gathering, LLC, a subsidiary of Delek Logistics, completed the acquisition of 100% of the limited liability company interests in 3 Bear Delaware Holding – NM, LLC from 3 Bear Energy – New Mexico LLC (the “Seller”), related to Seller’s crude oil and natural gas gathering, processing and transportation businesses, as well as water disposal and recycling operations, located in the Delaware Basin in New Mexico (the “3 Bear Acquisition”). The purchase price was $624.7 million, subject to final working capital closing adjustments. We incurred $6.2 million of transaction related expenses In connection with the 3 Bear Acquisition during the three months ended June 30, 2022.

During the second quarter 2022, we received insurance recoveries related to the fire and freeze events that occurred during the first quarter 2021, which unfavorably impacted our results during the first two quarters of 2021. For the three months ended June 30, 2022, we have recognized an additional $8.6 million ($6.7 million after-tax) of business interruption insurance recoveries, which were recorded in other operating income on the consolidated statement of income. We have additional business interruption claims that are outstanding and still pending which are expected to be recognized in future quarters. Because business interruption losses are economic in nature rather than recognized, the related insurance recoveries are included as an Adjusting item in Adjusted net income and Adjusted EBITDA.

Reconciliation of Net Income (Loss) Attributable to Delek to Adjusted Net Income (Loss)
						Three Months Ended June 30,												Six Months Ended June 30,
$ in millions (unaudited)						2022						2021 As Adjusted(1)						2022						2021 As Adjusted(1)
						(Unaudited)												(Unaudited)
Reported net income (loss) attributable to Delek						$	361.8					$	(56.7)					$	368.4					$	(126.7)
Adjusting items (2)
Inventory LCM valuation (benefit) loss						7.3						(0.8)						(1.2)						0.1
Tax effect						(1.7)						0.2						0.3						—
Inventory LCM valuation loss (benefit), net						5.6						(0.6)						(0.9)						0.1
Business interruption insurance recoveries						(8.6)						—						(18.6)						—
Tax effect						1.9						—						4.2						—
Business interruption insurance recoveries, net (3)						(6.7)						—						(14.4)						—
Total El Dorado refinery fire net losses (recoveries)						—						—						—						4.8
Tax effect						—						—						—						(1.1)
El Dorado refinery fire losses, net of related recoveries, net						—						—						—						3.7
Total unrealized hedging (gain) loss where the hedged item is not yet recognized in the financial statements						(67.1)						24.3						(0.3)						11.8
Tax effect						16.2						(5.8)						0.1						(2.8)
Unrealized hedging (gain) loss where the hedged item is not yet recognized in the financial statements, net						(50.9)						18.5						(0.2)						9.0
Non-cash change in fair value of Supply and Offtake ("S&O") Obligation associated with hedging activities						—						—						—						(6.9)
Tax effect						—						—						—						1.5
Non-cash change in fair value of S&O Obligation associated with hedging activities, net						—						—						—						(5.4)
Non-operating litigation accrual related to pre-Delek/Alon Merger shareholder action						—						6.5						—						6.5
Tax effect						—						(1.6)						—						(1.6)
Non-operating litigation accrual related to pre-Delek/Alon Merger shareholder action, net						—						4.9						—						4.9
Transaction related expenses						6.2						—						6.4						—
Tax effect						(1.5)						—						(1.5)						—
Transaction related expenses, net (3)						4.7						—						4.9						—
Total adjusting items (2)						(47.3)						22.8						(10.6)						12.3
Adjusted net income (loss)						$	314.5					$	(33.9)					$	357.8					$	(114.4)

(1) Adjusted to reflect the retrospective change in accounting policy from LIFO to FIFO for certain inventories.

(2) All adjustments have been tax effected using the estimated marginal income tax rate, as applicable.

(3) See further discussion in the "Significant Transactions During the Quarter Impacting Results" section on page 8.

(1)Adjusted to reflect the retrospective change in accounting policy from LIFO to FIFO for certain inventories.

(2) The adjustments have been tax effected using the estimated marginal tax rate, as applicable.

(3) For periods of Adjusted net loss, Adjustments (Adjusting Items) and Adjusted net loss per share are presented using basic weighted average shares outstanding.

(4) See further discussion in the "Significant Transactions During the Quarter Impacting Results" section on page 8.

(1) Adjusted to reflect the retrospective change in accounting policy from LIFO to FIFO for certain inventories.

(2) See further discussion in the "Significant Transactions During the Quarter Impacting Results" section on page 8.

(1) Adjusted to reflect the retrospective change in accounting policy from LIFO to FIFO for certain inventories.

(2)    Reflects the prior period conforming reclassification adjustment between operating expenses and general and administrative expenses.