株探米国株
日本語 英語
エドガーで原本を確認する
0001694426false00016944262023-05-082023-05-08

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
May 8, 2023
Date of Report (Date of earliest event reported)
DELEK US HOLDINGS, INC.
(Exact name of registrant as specified in its charter)
Delaware
001-38142
35-2581557
(State or other jurisdiction of incorporation)
(Commission File Number)
(IRS Employer Identification No.)
delekglobea40.jpg
310 Seven Springs Way, Suite 500
Brentwood Tennessee
37027
(Address of Principal Executive)
(Zip Code)
(615) 771-6701
(Registrant’s telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, $0.01 par value DK New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    



Item 2.02 Results of Operations and Financial Condition

On May 8, 2023, Delek US Holdings, Inc. (the “Company”) announced its financial results for the quarter ended March 31, 2023. The full text of the press release is furnished as Exhibit 99.1 hereto.
 
The information in the attached Exhibit is being furnished pursuant to Item 2.02 “Results of Operations and Financial Condition” on Form 8-K. The information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, each as amended, except as shall be expressly set forth by specific reference in such filing.

Item 7.01 Regulation FD Disclosure

On May 8, 2023, the Company will use the materials included in Exhibit 99.2 (the "Earnings Call Slides") to this report in connection with the first quarter earnings call. The Earnings Call Slides are incorporated into this Item 7.01 by this reference and will also be available on the Company's website at www.delekus.com.

The information in this Item 7.01 is being furnished, not filed, pursuant to Regulation FD. Accordingly, the information in Item 7.01 of this report will not be incorporated by reference into any registration statement filed by the Company under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference. The furnishing of the information in this report is not intended to, and does not, constitute a determination or admission by the Company that the information in this report is material or complete, or that investors should consider this information before making an investment decision with respect to any security of the Company or any of its affiliates.

Item 9.01     Financial Statements and Exhibits.

(d)    Exhibits.
104 Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.




SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: May 8, 2023
DELEK US HOLDINGS, INC


        /s/ Reuven Spiegel
Name: Reuven Spiegel
 Title: Executive Vice President and Chief Financial Officer
(Principal Financial Officer) 


EX-99.1 2 dk-ex991earningsreleasex03.htm EX-99.1 Document
Exhibit 99.1
delekglobea38a.jpg
Delek US Holdings Reports First Quarter 2023 Results


•Net income of $64.3 million or $0.95 per share
•Adjusted net income of $92.7 million or $1.37 per share
•Adjusted EBITDA of $284.6 million, compared with $83.6 million from last year
•Generated $395.1 million of cash from operations
•Repaid $281.0 million of consolidated debt, $327.4 million of Delek US Holdings debt
•Repurchased approximately $40.0 million of shares subsequent to quarter end; Increased the quarterly regular dividend by 4.5 percent in May 2023


BRENTWOOD, Tenn.-- May 8, 2023 -- Delek US Holdings, Inc. (NYSE: DK) (“Delek US”, "Company") today announced financial results for its first quarter ended March 31, 2023.
"We delivered a strong quarter. Our team executed well, we captured favorable refining margins, and generated record contributions from the Logistics business," said Avigal Soreq, President and Chief Executive Officer of Delek US. "Having safe, reliable and environmentally responsible operations is a top priority for us, and in the first quarter we successfully completed a significant turnaround at the Tyler refinery with zero process and safety incidents."
"Optimizing the balance sheet and delivering long-term shareholder value are also important. We strengthened our portfolio by paying down debt and investing in projects necessary for safe, reliable operations. To reward our shareholders, we made $14.7 million of dividend payments in the first quarter. In addition, we repurchased approximately $40.0 million of Delek shares after quarter end. And in May, the board of directors increased the quarterly dividend 4.5 percent to 23 cents per share," Mr. Soreq concluded.

Delek US Holdings Results
Three Months Ended March 31,
($ in millions, except per share data) 2023
2022
Net income attributable to Delek $ 64.3  $ 6.6 
Diluted income per share $ 0.95  $ 0.09 
 Adjusted net income (loss) $ 92.7  $ (25.0)
 Adjusted net income (loss) per share $ 1.37  $ (0.35)
 Adjusted EBITDA $ 284.6  $ 83.6 

Refining Segment
The refining segment Adjusted EBITDA was $230.2 million in the first quarter 2023 compared with $39.2 million in the same quarter last year. The increase over 2022 is primarily due to higher refining crack spreads, partially offset by lower sales volume primarily resulting from turnaround activities at the Tyler refinery. During the first quarter 2023, Delek US's benchmark crack spreads were up an average of 29.6% from prior-year levels.
Logistics Segment
The logistics segment Adjusted EBITDA in the first quarter 2023 was $91.4 million compared with $64.0 million in the prior year quarter. The increase over last year's first quarter was driven by strong contributions from the Midland Gathering system and the acquisition of 3 Bear Delaware Holding - NM, LLC ("3 Bear") on June 1, 2022.
1 |


Retail Segment
For the first quarter 2023, Adjusted EBITDA for the retail segment was $6.4 million compared with $10.3 million in the prior-year period. The decrease was primarily driven by lower average margins, partially offset by increased inside store sales.
Corporate and Other Activity
Adjusted EBITDA from Corporate, Other and Eliminations was a loss of $(43.4) million in the first quarter 2023 compared with a loss of $(29.9) million in the prior-year period. The higher losses are driven by general and administrative costs, primarily related to benefit expenses.
Shareholder Distributions
On May 2, 2023, the Board of Directors increased the quarterly regular dividend by 4.5 percent or $0.01 per share to $0.23 per share.
Liquidity
As of March 31, 2023, Delek US had a cash balance of $865.0 million and total consolidated long-term debt of $2,775.0 million, resulting in net debt of $1.91 billion. As of March 31, 2023, Delek Logistics Partners, LP (NYSE: DKL) ("Delek Logistics") had $11.0 million of cash and $1,708.2 million of total long-term debt, which are included in the consolidated amounts on Delek US' balance sheet. Excluding Delek Logistics, Delek US had $854.0 million in cash and $1,066.8 million of long-term debt, or a $212.8 million net debt position.
First Quarter 2023 Results | Conference Call Information
Delek US will hold a conference call to discuss its first quarter 2023 results on Monday, May 8, 2023 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) first quarter 2023 earnings conference call that will be held on Monday, May 8, 2023 at 11:30 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, 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. Pipeline assets include an ownership interest in the 650-mile Wink to Webster long-haul crude oil pipeline. The convenience store retail segment operates approximately 249 convenience stores in West Texas and New Mexico.

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 affiliates owned approximately 78.7% (including the general partner interest) of Delek Logistics Partners, LP at March 31, 2023.

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; 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, 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.
2 |


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 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.
3 |


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 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) and unrealized hedging (gain) loss;
•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 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; 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 Refining Segment 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.

4 |


Delek US Holdings, Inc.
Condensed Consolidated Balance Sheets (Unaudited)
($ in millions, except share and per share data)
March 31, 2023 December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents $ 865.0  $ 841.3 
Accounts receivable, net 847.8  1,234.4 
Inventories, net of inventory valuation reserves 1,314.7  1,518.5 
Other current assets 159.4  122.7 
Total current assets 3,186.9  3,716.9 
Property, plant and equipment:    
Property, plant and equipment 4,528.7  4,349.0 
Less: accumulated depreciation (1,646.7) (1,572.6)
Property, plant and equipment, net 2,882.0  2,776.4 
Operating lease right-of-use assets 181.8  179.5 
Goodwill 744.3  744.3 
Other intangibles, net 310.3  315.6 
Equity method investments 354.2  359.7 
Other non-current assets 127.2  100.4 
Total assets $ 7,786.7  $ 8,192.8 
LIABILITIES AND STOCKHOLDERS’ EQUITY    
Current liabilities:    
Accounts payable $ 1,794.1  $ 1,745.6 
Current portion of long-term debt 49.5  74.5 
Current portion of obligation under Inventory Intermediation Agreements 57.1  49.9 
Current portion of operating lease liabilities 53.4  49.6 
Accrued expenses and other current liabilities 915.8  1,166.8 
Total current liabilities 2,869.9  3,086.4 
Non-current liabilities:    
Long-term debt, net of current portion 2,725.5  2,979.2 
Obligation under Inventory Intermediation Agreements 479.1  491.8 
Environmental liabilities, net of current portion 111.5  111.5 
Asset retirement obligations 42.1  41.8 
Deferred tax liabilities 283.8  266.5 
Operating lease liabilities, net of current portion 121.5  122.4 
Other non-current liabilities 29.0  23.7 
Total non-current liabilities 3,792.5  4,036.9 
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, 84,569,103 shares and 84,509,517 shares issued at March 31, 2023 and December 31, 2022, respectively 0.9  0.9 
Additional paid-in capital 1,141.2  1,134.1 
Accumulated other comprehensive loss (5.2) (5.2)
Treasury stock, 17,575,527 shares, at cost, at March 31, 2023 and December 31, 2022, respectively (694.1) (694.1)
Retained earnings 557.2  507.9 
Non-controlling interests in subsidiaries 124.3  125.9 
Total stockholders’ equity 1,124.3  1,069.5 
Total liabilities and stockholders’ equity $ 7,786.7  $ 8,192.8 
5 |


Delek US Holdings, Inc.
Condensed Consolidated Statements of Income (Unaudited)
($ in millions, except share and per share data) Three Months Ended March 31,
2023
2022 (1)
Net revenues $ 3,924.3  $ 4,459.1 
Cost of sales:
Cost of materials and other 3,439.6  4,152.5 
Operating expenses (excluding depreciation and amortization presented below) 170.8  142.4 
Depreciation and amortization 76.8  62.7 
Total cost of sales 3,687.2  4,357.6 
Operating expenses related to retail and wholesale business (excluding depreciation and amortization presented below) 27.0  27.4 
General and administrative expenses 71.5  50.2 
Depreciation and amortization 6.6  5.6 
Other operating income, net (10.8) (28.4)
Total operating costs and expenses 3,781.5  4,412.4 
Operating income 142.8  46.7 
Interest expense, net 76.5  38.4 
Income from equity method investments (14.6) (10.9)
Other (income) loss, net (7.1) 1.3 
Total non-operating expense, net 54.8  28.8 
Income before income tax expense 88.0  17.9 
Income tax expense 15.8  3.1 
Net income 72.2  14.8 
Net income attributed to non-controlling interests 7.9  8.2 
Net income attributable to Delek $ 64.3  $ 6.6 
Basic income per share $ 0.96  $ 0.09 
Diluted income per share $ 0.95  $ 0.09 
Weighted average common shares outstanding:
Basic 66,951,975  73,236,274 
Diluted 67,369,374  73,649,266 
(1) 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 $2.9 million for the three months ended March 31, 2022.

Condensed Cash Flow Data (Unaudited)
($ in millions) Three Months Ended March 31,
  2023
2022
Cash flows from operating activities:
Net cash provided by operating activities $ 395.1  $ 26.8 
Cash flows from investing activities:
Net cash used in investing activities (222.1) (30.2)
Cash flows from financing activities:
Net cash (used in) provided by financing activities (149.3) 1.0 
Net increase (decrease) in cash and cash equivalents 23.7  (2.4)
Cash and cash equivalents at the beginning of the period 841.3  856.5 
Cash and cash equivalents at the end of the period $ 865.0  $ 854.1 
6 |


Significant Transactions During the Quarter Impacting Results:
Insurance Recoveries
During the first quarter 2023, 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 March 31, 2023, we have recognized an additional $5.1 million ($4.0 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.
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 and per barrel cost of materials and other for the period recognized on a FIFO basis. 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.
7 |


Reconciliation of Net Income (Loss) Attributable to Delek to Adjusted Net Income (Loss)
Three Months Ended March 31,
$ in millions (unaudited) 2023
2022
Reported net income (loss) attributable to Delek $ 64.3  $ 6.6 
 Adjusting items (1)
Inventory LCM valuation (benefit) loss (1.7) (8.5)
Tax effect 0.4  2.0 
Inventory LCM valuation (benefit) loss, net (1.3) (6.5)
Other inventory impact 77.1  (87.0)
Tax effect (17.3) 20.8 
Other inventory impact, net (2)
59.8  (66.2)
Business interruption insurance recoveries (5.1) (10.0)
Tax effect 1.1  2.2 
Business interruption insurance recoveries, net (2)
(4.0) (7.8)
Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements (3)
(32.2) 64.5 
Tax effect 7.2  (15.6)
Unrealized hedging (gain) loss where the hedged item is not yet recognized in the financial statements, net (25.0) 48.9 
Restructuring costs (1.4) — 
Tax effect 0.3  — 
Restructuring costs, net (1.1) — 
 Total adjusting items (1)
28.4  (31.6)
 Adjusted net income (loss) $ 92.7  $ (25.0)
(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, 2023, we no longer adjust non-GAAP financial measures for unrealized gains and losses related to RINs where the hedged item is not yet recognized in the financial statements. Historical non-GAAP financial measures have been revised to conform to current period presentation.
Reconciliation of U.S. GAAP Income (Loss) per share to Adjusted Net Income (Loss) per share:
Three Months Ended March 31,
$ per share (unaudited) 2023
2022
Reported diluted income per share $ 0.95  $ 0.09 
Adjusting items, after tax (per share) (1) (2)
Net inventory LCM valuation (benefit) loss (0.02) (0.09)
Other inventory impact (3)
0.89  (0.90)
Business interruption insurance recoveries (3)
(0.06) (0.11)
Total unrealized hedging (gain) loss where the hedged item is not yet recognized in the financial statements (4)
(0.37) 0.66 
Restructuring costs (0.02) — 
 Total adjusting items (1)
0.42  (0.44)
 Adjusted net income (loss) per share $ 1.37  $ (0.35)
(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, 2023, we no longer adjust non-GAAP financial measures for unrealized gains and losses related to RINs where the hedged item is not yet recognized in the financial statements. Historical non-GAAP financial measures have been revised to conform to current period presentation.
8 |


Reconciliation of Net Income (Loss) attributable to Delek to Adjusted EBITDA
Three Months Ended March 31,
$ in millions (unaudited) 2023
2022
Reported net (loss) income attributable to Delek $ 64.3  $ 6.6 
Add:
Interest expense, net 76.5  38.4 
Income tax expense (benefit) 15.8  3.1 
Depreciation and amortization 83.4  68.3 
EBITDA attributable to Delek 240.0  116.4 
Adjusting items
Net inventory LCM valuation (benefit) loss (1.7) (8.5)
Other inventory impact (1)
77.1  (87.0)
Business Interruption insurance recoveries (1)
(5.1) (10.0)
Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements (2)
(32.2) 64.5 
Restructuring costs (1.4) — 
Net income attributable to non-controlling interest 7.9  8.2 
     Total Adjusting items 44.6  (32.8)
 Adjusted EBITDA $ 284.6  $ 83.6 
(1) See further discussion in the "Significant Transactions During the Quarter Impacting Results" section.
(2) Starting with the quarter ended March 31, 2023, we no longer adjust non-GAAP financial measures for unrealized gains and losses related to RINs where the hedged item is not yet recognized in the financial statements. Historical non-GAAP financial measures have been revised to conform to current period presentation.

9 |


Reconciliation of Segment EBITDA Attributable to Delek to Adjusted Segment EBITDA
Three Months Ended March 31, 2023
$ in millions (unaudited) Refining Logistics Retail Corporate, Other and Eliminations Consolidated
Segment EBITDA Attributable to Delek $ 192.1  $ 91.4  $ 6.4  $ (49.9) $ 240.0 
Adjusting items
Net inventory LCM valuation (benefit) loss (1.7) —  —  —  (1.7)
Other inventory impact (1)
77.1  —  —  —  77.1 
Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements (2)
(32.2) —  —  —  (32.2)
Restructuring costs —  —  —  (1.4) (1.4)
Business Interruption insurance recoveries (1)
(5.1) —  —  —  (5.1)
Net income attributable to non-controlling interest —  —  —  7.9  7.9 
     Total Adjusting items 38.1  —  —  6.5  44.6 
Adjusted Segment EBITDA $ 230.2  $ 91.4  $ 6.4  $ (43.4) $ 284.6 
  Three Months Ended March 31, 2022
$ in millions (unaudited) Refining Logistics Retail Corporate, Other and Eliminations Consolidated
Segment EBITDA Attributable to Delek $ 80.0  $ 64.2  $ 10.3  $ (38.1) $ 116.4 
Adjusting items
Net inventory LCM valuation (benefit) loss (8.5) —  —  —  (8.5)
Other inventory impact (1)
(87.0) —  —  —  (87.0)
Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements (2)
64.7  (0.2) —  —  64.5 
Business Interruption insurance recoveries (1)
(10.0) —  —  —  (10.0)
Net income attributable to non-controlling interest —  —  —  8.2  8.2 
     Total Adjusting items (40.8) (0.2) —  8.2  (32.8)
Adjusted Segment EBITDA $ 39.2  $ 64.0  $ 10.3  $ (29.9) $ 83.6 
(1) See further discussion in the "Significant Transactions During the Quarter Impacting Results" section.
(2) Starting with the quarter ended March 31, 2023, we no longer adjust non-GAAP financial measures for unrealized gains and losses related to RINs where the hedged item is not yet recognized in the financial statements. Historical non-GAAP financial measures have been revised to conform to current period presentation.
10 |


Refining Segment Selected Financial Information Three Months Ended March 31,
2023 2022
Total Refining Segment (Unaudited)
Days in period 90  90 
Total sales volume - refined product (average barrels per day ("bpd")) (1)
271,715  303,865 
Total production (average bpd) 266,606  286,058 
Crude oil 248,199  272,156 
Other feedstocks 20,336  14,871 
Total throughput (average bpd): 268,535  287,027 
Total refining production margin per bbl total throughput $ 16.44  $ 10.71 
Total refining operating expenses per bbl total throughput $ 5.60  $ 4.56 
Total refining production margin ($ in millions) $ 397.3  $ 276.6 
Trading & supply and other ($ millions) (2)
(18.4) (105.3)
Total adjusted refining margin ($ in millions) $ 378.9  $ 171.3 
Total crude slate details
Total crude slate: (% based on amount received in period)
WTI crude oil 69.8  % 62.7  %
Gulf Coast Sweet Crude 4.7  % 9.4  %
Local Arkansas crude oil 4.5  % 4.4  %
Other 21.0  % 23.5  %
Crude utilization (% based on nameplate capacity)(5)
82.2  % 90.1  %
Tyler, TX Refinery
Days in period 90  90 
Products manufactured (average bpd):
Gasoline 18,776  37,228 
Diesel/Jet 13,042  29,010 
Petrochemicals, LPG, NGLs 736  2,251 
Other 1,778  1,670 
Total production 34,332  70,159 
Throughput (average bpd):    
   Crude oil 29,810  66,436 
Other feedstocks 4,694  3,720 
Total throughput 34,504  70,156 
Tyler refining production margin ($ in millions) $ 67.2  $ 79.2 
Per barrel of throughput:    
Tyler refining production margin $ 21.65  $ 12.54 
Operating expenses (3)
$ 8.70  $ 4.64 
Crude Slate: (% based on amount received in period)
WTI crude oil 37.5  % 86.8  %
East Texas crude oil 62.5  % 13.2  %
Capture Rate (4)
66.5  % 53.0  %
El Dorado, AR Refinery
Days in period
90  90 
Products manufactured (average bpd):
Gasoline 38,044  36,875 
Diesel 27,710  29,178 
Petrochemicals, LPG, NGLs 1,290  1,019 
Asphalt 7,718  7,123 
Other 746  785 
Total production 75,508  74,980 
Throughput (average bpd):
Crude oil 72,637  72,091 
Other feedstocks 4,558  3,947 
Total throughput 77,195  76,038 
11 |


Refining Segment Selected Financial Information (continued) Three Months Ended March 31,
2023 2022
El Dorado refining production margin ($ in millions) $ 93.0  $ 49.0 
Per barrel of throughput:
El Dorado refining production margin $ 13.38  $ 7.16 
Operating expenses (3)
$ 4.47  $ 4.14 
Crude Slate: (% based on amount received in period)
WTI crude oil 61.9  % 31.4  %
Local Arkansas crude oil 14.7  % 17.4  %
Other 23.4  % 51.2  %
Capture Rate (4)
41.1  % 30.2  %
Big Spring, TX Refinery
Days in period
90 90
Products manufactured (average bpd):
Gasoline 38,509  32,894 
Diesel/Jet 25,642  22,688 
Petrochemicals, LPG, NGLs 3,133  3,333 
Asphalt 1,642  1,881 
Other 2,642  1,280 
Total production 71,568  62,076 
Throughput (average bpd):  
Crude oil 67,989  60,633 
Other feedstocks 4,625  1,739 
Total throughput 72,614  62,372 
Big Spring refining production margin ($ in millions) $ 119.8  $ 71.1 
Per barrel of throughput:  
Big Spring refining production margin $ 18.33  $ 12.66 
Operating expenses (3)
$ 5.80  $ 6.06 
Crude Slate: (% based on amount received in period)
WTI crude oil 74.8  % 66.7  %
WTS crude oil 25.2  % 33.3  %
Capture Rate (4)
58.7  % 55.4  %
Krotz Springs, LA Refinery
Days in period
90  90 
Products manufactured (average bpd):
Gasoline 41,846  32,667 
Diesel/Jet 32,783  30,994 
Heavy oils 3,509  1,021 
Petrochemicals, LPG, NGLs 6,873  6,927 
Other 187  7,234 
Total production 85,198  78,843 
Throughput (average bpd):  
Crude oil 77,764  72,997 
Other feedstocks 6,459  5,464 
Total throughput 84,223  78,461 
Krotz refining production margin ($ in millions) $ 117.3  $ 77.3 
Per barrel of throughput:  
Krotz Springs refining production margin $ 15.47  $ 10.95 
Operating expenses (3)
$ 5.21  $ 4.12 
Crude Slate: (% based on amount received in period)
WTI Crude 79.8  % 64.3  %
Gulf Coast Sweet Crude 14.3  % 35.7  %
Other 5.9  % —  %
Capture Rate (4)
81.1  % 63.0  %
(1)     Includes sales to other segments which are eliminated in consolidation.
(2)    Trading and supply activities include the employment of marketing uplift strategies and the execution of risk management programs to capture the physical and financial opportunities that extend from our refining operations.
12 |


(3)    Reflects the prior period conforming reclassification adjustment between operating expenses and general and administrative expenses.
(4)    Defined as refining production margin divided by the respective crack spread. See page 14 for crack spread information.
(5) Crude throughput as % of total nameplate capacity of 302,000 bpd.
Logistics Segment Selected Information Three Months Ended March 31,
2023 2022
(Unaudited)
Gathering & Processing: (average bpd)
Lion Pipeline System:
Crude pipelines (non-gathered) 63,528  72,872 
Refined products pipelines 55,003  59,522 
SALA Gathering System 13,872  16,156 
East Texas Crude Logistics System 10,508  16,056 
Midland Gathering Assets (1)
222,112  100,325 
Plains Connection System 240,597  162,007 
Delaware Gathering Assets: (2)
Natural Gas Gathering and Processing (Mcfd) (3)
74,716  n/a
Crude Oil Gathering (average bpd) 103,725  n/a
Water Disposal and Recycling (average bpd) 88,182  n/a
Wholesale Marketing & Terminalling:
East Texas - Tyler Refinery sales volumes (average bpd) (4)
34,816  70,578 
Big Spring wholesale marketing throughputs (average bpd) 78,380  75,549 
West Texas wholesale marketing throughputs (average bpd) 8,696  9,913 
West Texas wholesale marketing margin per barrel $ 2.58  $ 3.04 
Terminalling throughputs (average bpd) (5)
93,305  137,622 
(1) Formerly known as the Permian Gathering System. Excludes volumes that are being temporarily transported via trucks while connectors are under construction.
(2) Formally known as 3 Bear, which was acquired June 1, 2022.
(3) Mcfd - average thousand cubic feet per day.
(4) Excludes jet fuel and petroleum coke.
(5) 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.
Retail Segment Selected Information
Three Months Ended March 31,
2023 2022
(Unaudited)
Number of stores (end of period) 249  248 
Average number of stores 249  248 
Average number of fuel stores 244  243 
Retail fuel sales (thousands of gallons) 39,964  39,505 
Average retail gallons sold per average number of fuel stores (in thousands) 164  163 
Average retail sales price per gallon sold $ 3.28  $ 3.54 
Retail fuel margin ($ per gallon) (1)
$ 0.27  $ 0.31 
Merchandise sales (in millions) $ 73.9  $ 69.7 
Merchandise sales per average number of stores (in millions) $ 0.3  $ 0.3 
Merchandise margin % 33.0  % 34.6  %
Three Months Ended March 31,
2023 2022
Same-Store Comparison (2)
(Unaudited)
Change in same-store fuel gallons sold (1.7) % 0.8  %
Change in same-store merchandise sales 5.3  % (5.2) %
13 |


(1)Retail fuel margin represents gross margin on fuel sales in the retail segment, and is calculated as retail fuel sales revenue less retail fuel cost of sales. The retail fuel margin per gallon calculation is derived by dividing retail fuel margin by the total retail fuel gallons sold for the period.
(2)Same-store comparisons include period-over-period changes in specified metrics for stores that were in service at both the beginning of the earliest period and the end of the most recent period used in the comparison.
Supplemental Information
Schedule of Selected Segment Financial Data, Pricing Statistics Impacting our Refining Segment Selected Financial Information and Other Reconciliation of Amounts Reported Under U.S. GAAP
Three Months Ended March 31, 2023
$ in millions (unaudited) Refining Logistics Retail Corporate,
Other and Eliminations
Consolidated
Net revenues (excluding intercompany fees and revenues) $ 3,600.8  $ 118.5  $ 205.0  $ —  $ 3,924.3 
Inter-segment fees and revenues 193.7  125.0  —  (318.7) — 
Total revenues $ 3,794.5  $ 243.5  $ 205.0  $ (318.7) $ 3,924.3 
Cost of sales 3,654.5  170.1  170.0  (307.4) 3,687.2 
Gross margin $ 140.0  $ 73.4  $ 35.0  $ (11.3) $ 237.1 
Three Months Ended March 31, 2022
$ in millions (unaudited) Refining Logistics Retail Corporate,
Other and Eliminations
Consolidated
Net revenues (excluding intercompany fees and revenues) $ 4,166.5  $ 82.8  $ 209.5  $ 0.3  $ 4,459.1 
Inter-segment fees and revenues 225.8  123.8  —  (349.6) — 
Total revenues $ 4,392.3  $ 206.6  $ 209.5  $ (349.3) $ 4,459.1 
Cost of sales 4,365.7  153.6  173.0  (334.7) 4,357.6 
Gross margin $ 26.6  $ 53.0  $ 36.5  $ (14.6) $ 101.5 
Pricing Statistics Three Months Ended March 31,
(average for the period presented) 2023 2022
WTI — Cushing crude oil (per barrel) $ 75.96  $ 95.18 
WTI — Midland crude oil (per barrel) $ 75.99  $ 95.01 
WTS — Midland crude oil (per barrel) $ 75.39  $ 94.90 
LLS (per barrel) $ 78.84  $ 97.49 
Brent (per barrel) $ 82.10  $ 97.92 
U.S. Gulf Coast 5-3-2 crack spread (per barrel) (1)
$ 32.55  $ 23.68 
U.S. Gulf Coast 3-2-1 crack spread (per barrel) (1)
$ 31.22  $ 22.84 
U.S. Gulf Coast 2-1-1 crack spread (per barrel) (1)
$ 19.08  $ 17.40 
U.S. Gulf Coast Unleaded Gasoline (per gallon) $ 2.39  $ 2.71 
Gulf Coast Ultra low sulfur diesel (per gallon) $ 2.87  $ 3.02 
U.S. Gulf Coast high sulfur diesel (per gallon) $ 1.92  $ 2.69 
Natural gas (per MMBTU) $ 2.73  $ 4.59 
(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. Starting in Q1 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). Historical Gulf Coast 2-1-1 crack spread measures have been revised to conform to current period presentation. 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.
14 |


Other Reconciliation of Amounts Reported Under U.S. GAAP
$ in millions (unaudited)
Three Months Ended March 31,
Reconciliation of gross margin to Refining margin to Adjusted refining margin 2023 2022
Gross margin $ 140.0  $ 26.6 
Add back (items included in cost of sales):
Operating expenses (excluding depreciation and amortization) 139.1  122.7 
Depreciation and amortization 56.6  52.8 
Refining Margin $ 335.7  $ 202.1 
Adjusting items, after tax
Net inventory LCM valuation loss (benefit) (1.7) (8.5)
Other inventory impact 77.1  (87.0)
Total unrealized hedging (gain) loss where the hedged item is not yet recognized in the financial statements (32.2) 64.7 
 Total adjusting items 43.2  (30.8)
Adjusted Refining Margin $ 378.9  $ 171.3 


Calculation of Net Debt March 31, 2023 December 31, 2022
Long-term debt - current portion $ 49.5  $ 74.5 
Long-term debt - non-current portion 2,725.5  2,979.2 
Total long-term debt 2,775.0  3,053.7 
Less: Cash and cash equivalents 865.0  841.3 
Net debt - consolidated 1,910.0  2,212.4 
Less: DKL net debt 1,697.2  1,653.6 
Net debt, excluding DKL $ 212.8  $ 558.8 
Investor/Media Relations Contacts:
Rosy Zuklic, Vice President of Investor Relations and Market Intelligence, 615-767-4344

Media/Public Affairs Contact:
Michael P. Ralsky, Vice President - Public Affairs & ESG, 615-435-1407

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 Twitter account (@DelekUSHoldings).

15 |
EX-99.2 3 a1q23dkslides.htm EX-99.2 a1q23dkslides
First Quarter 2023 Earnings Conference Call May 8, 2023 Exhibit 99.2


 
2 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 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. Words such as "may," "will," "should," "could," "would," "predicts," "potential," "continue," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "appears," "projects" and similar expressions, as well as statements in future tense, identify forward-looking statements. These forward-looking statements include, but are not limited to, the statements regarding the following: financial and operating guidance for future and uncompleted financial periods; financial strength and flexibility; potential for and projections of growth; return of cash to shareholders, stock repurchases and the payment of dividends, including the amount and timing thereof; cost reductions; crude oil throughput; crude oil market trends, including production, quality, pricing, demand, imports, exports and transportation costs; competitive conditions in the markets where our refineries are located; the performance of our joint venture investments, and the benefits, flexibility, returns and EBITDA therefrom; the potential for, and estimates of cost savings and other benefits from, acquisitions, divestitures, dropdowns and financing activities; long-term value creation from capital allocation; targeted internal rates of return on capital expenditures; execution of strategic initiatives and the benefits therefrom, including cash flow stability from business model transition and approach to renewable diesel; and access to crude oil and the benefits therefrom. Investors are cautioned that the following important factors, among others, may affect these forward-looking statements: uncertainty related to timing and amount of value returned to shareholders; 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, including uncertainties regarding future decisions by OPEC regarding production and pricing disputes between OPEC members and Russia; Delek US’ ability to realize cost reductions; risks related to Delek US’ exposure to Permian Basin crude oil, such as supply, pricing, production and transportation capacity; gains and losses from derivative instruments; management's ability to execute its strategy of growth through acquisitions and the transactional 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; changes in the scope, costs, and/or timing of capital and maintenance projects; the ability of the Wink to Webster joint venture to construct the long-haul pipeline; the ability of the Red River joint venture to expand the Red River pipeline; uncertainty relating to the impact of the COVID-19 outbreak on the demand for crude oil, refined products and transportation and storage services; the possibility of litigation challenging renewable fuel standard waivers; the ability to grow the Big Spring Gathering System; 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 contained in Delek US’ and Delek Logistics’ filings with the United States Securities and Exchange Commission. 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. Neither Delek US nor Delek Logistics undertakes any obligation to update or revise any such forward-looking statements.


 
3 Overview Strong results Executed well Strengthened balance sheet Return to shareholders Tyler Refinery, Tyler, TX Find new image


 
4 First Quarter Highlights $ Millions (except per share) Adjusted Net Income $93 Adjusted Net Income per share $1.37 Adjusted EBITDA $285 Cash from operations $395


 
5 Adjusted EBITDA 1Q2023 vs 4Q2022 ($MM) $230 $91 $6 $(43) 1Q23 Adjusted EBITDA $210 $59 $1 $(1) $16 $285 4Q22 Adj. EBITDA Refining Logistics Retail Corporate 1Q23 Adj. EBITDA $— $50 $100 $150 $200 $250 $300


 
6 1st Quarter Consolidated Cash Flow ($MM) *includes cash and cash equivalents $841 $395 $(222) $(149) $865 12/31/2022 Cash Balance* Operating Activities Investing Activities Financing Activities 3/31/2023 Cash Balance* $— $200 $400 $600 $800 $1,000 $1,200 $1,400


 
7 Capital Expenditures $ Millions 2023 Est. 1Q23 Actual Refining $ 202 $ 147 Logistics 81 36 Retail 31 3 Corporate/Other 36 6 Delek Total $ 350 $ 192 Capital Expenditures Drivers 1% 81% 18% Regulatory Sustaining Growth 10% 68% 22% 1Q23 2023


 
8 Net Debt $ Millions March 31, 2023 December 31, 2022 Consolidated long-term debt - current portion $ 50 $ 75 Consolidated long-term debt - non-current portion 2,725 2,979 Consolidated total long-term debt 2,775 3,054 Less: Cash and cash equivalents 865 841 Consolidated net debt 1,910 2,213 Less: Delek Logistics net debt 1,697 1,654 Delek US, excluding DKL net debt $ 213 $ 559


 
9 2nd Quarter 2023 Outlook $ Millions Low High Operating Expenses $195 $205 General and Administrative Expenses $70 $80 Depreciation and Amortization $80 $90 Net Interest Expense $70 $80 Barrels per day (bpd) Total Crude Throughput 290,000 300,000 Total Throughput 301,000 311,000 Total Throughput by Refinery: Tyler, TX 74,000 77,000 El Dorado, AR 78,000 81,000 Big Spring, TX 69,000 71,000 Krotz Spring, LA 80,000 82,000


 
10 Supplemental Slides


 
11 Adjusted EBITDA 1Q23 vs 1Q22 ($MM) $230 $91 $6 $(43) 1Q23 Adjusted EBITDA $84 $191 $27 $(4) $(13) $285 1Q22 Adj. EBITDA Refining Logistics Retail Corporate 1Q23 Adj. EBITDA $— $50 $100 $150 $200 $250 $300 $350


 
12 2-1-1 Crack Spread Benchmark Update As Previously Reported Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021 2-1-1: $19.11 $21.53 $32.47 $17.14 $11.10 $11.11 $8.68 $7.65 Updated Reporting Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021 2-1-1: 50% Argus 50% Platts $23.81 $25.63 $36.23 $17.40 $11.75 $11.53 $8.87 $7.63 Krotz Springs refinery — Starting in Q1 2023, per barrel refining margin are compared 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). The Krotz Springs refinery’s crude oil input is primarily comprised of LLS and WTI Midland.


 
13 OPEX and G&A Reclassification Adjustments In the first quarter of 2023, we reassessed the classification of certain expenses and made certain reclassification adjustments to better represent the nature of those expenses.


 
14 Reconciliation of U.S. GAAP Income (Loss) per share to Adjusted Net Income (Loss) Per Share Three Months Ended March 31, Three Months Ended December 31, $ per share (unaudited) 2023 2022 2022 Reported diluted loss per share $ 0.95 $ 0.09 $ (1.73) Adjusting items, after tax (per share) (1) (2) Net inventory LCM valuation (benefit) loss (0.02) (0.09) (0.19) Other inventory impact (3) 0.89 (0.90) 2.17 Business interruption insurance recoveries (3) (0.06) (0.11) (0.06) Total unrealized hedging (gain) loss where the hedged item is not yet recognized in the financial statements (4) (0.37) 0.66 0.43 Restructuring costs (0.02) — 0.14 Total adjusting items (1) 0.42 (0.44) 2.49 Adjusted net income (loss) per share $ 1.37 $ (0.35) $ 0.76 (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 in 1Q23 Earnings Release (4) Starting with the quarter ended March 31, 2023, we no longer adjust non-GAAP financial measures for unrealized gains and losses related to RINs where the hedged item is not yet recognized in the financial statements. Historical non-GAAP financial measures have been revised to conform to current period presentation.


 
15 Reconciliation of Net Income (Loss) attributable to Delek to Adjusted EBITDA Three Months Ended March 31, Three Months Ended December 31, $ in millions (unaudited) 2023 2022 2022 Reported net income (loss) attributable to Delek $ 64.3 $ 6.6 $ (118.7) Add: Interest expense, net 76.5 38.4 62.6 Income tax expense (benefit) 15.8 3.1 (43.6) Depreciation and amortization 83.4 68.3 77.8 EBITDA attributable to Delek 240.0 116.4 (21.9) Adjusting items Net inventory LCM valuation (benefit) loss (1.7) (8.5) (17.2) Other inventory impact (1) 77.1 (87.0) 193.6 Business Interruption insurance recoveries (1) (5.1) (10.0) (5.2) Unrealized (gain) loss where the hedged item is not yet recognized in the financial statements(2) (32.2) 64.5 39.0 Restructuring costs (1.4) — 12.5 Net income attributable to non-controlling interest 7.9 8.2 9.0 Total Adjusting items 44.6 (32.8) 231.7 Adjusted EBITDA $ 284.6 $ 83.6 $ 209.8 (1) See further discussion in the "Significant Transactions During the Quarter Impacting Results" section in 1Q23 Earnings Release (2) Starting with the quarter ended March 31, 2023, we no longer adjust non-GAAP financial measures for unrealized gains and losses related to RINs where the hedged item is not yet recognized in the financial statements. Historical non-GAAP financial measures have been revised to conform to current period presentation.