Delaware |
001-38142 |
35-2581557 |
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(State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
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![]() |
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310 Seven Springs Way, Suite 500 |
Brentwood | Tennessee | 37027 |
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(Address of Principal Executive) |
(Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, $0.01 par value | DK | New York Stock Exchange |
104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. |
Dated: August 7, 2023 |
DELEK US HOLDINGS, INC
|
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/s/ Reuven Spiegel |
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Name: Reuven Spiegel |
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Title: Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
|
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
($ in millions, except per share data) | 2023 | 2022 |
2023 | 2022 |
||||||||||||||||||||||
Net (loss) income attributable to Delek | $ | (8.3) | $ | 361.8 | $ | 56.0 | $ | 368.4 | ||||||||||||||||||
Diluted (loss) income per share | $ | (0.13) | $ | 5.05 | $ | 0.84 | $ | 5.07 | ||||||||||||||||||
Adjusted net income | $ | 65.2 | $ | 271.4 | $ | 157.9 | $ | 246.7 | ||||||||||||||||||
Adjusted net income per share | $ | 1.00 | $ | 3.80 | $ | 2.36 | $ | 3.40 | ||||||||||||||||||
Adjusted EBITDA | $ | 259.4 | $ | 462.2 | $ | 544.0 | $ | 546.0 |
1 | |
2 | |
3 | |
4 | |
Delek US Holdings, Inc. | ||||||||||||||
Condensed Consolidated Balance Sheets (Unaudited) | ||||||||||||||
($ in millions, except share and per share data) | ||||||||||||||
June 30, 2023 | December 31, 2022 | |||||||||||||
ASSETS | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 821.6 | $ | 841.3 | ||||||||||
Accounts receivable, net | 1,003.5 | 1,234.4 | ||||||||||||
Inventories, net of inventory valuation reserves | 1,276.4 | 1,518.5 | ||||||||||||
Other current assets | 94.6 | 122.7 | ||||||||||||
Total current assets | 3,196.1 | 3,716.9 | ||||||||||||
Property, plant and equipment: | ||||||||||||||
Property, plant and equipment | 4,577.2 | 4,349.0 | ||||||||||||
Less: accumulated depreciation | (1,708.0) | (1,572.6) | ||||||||||||
Property, plant and equipment, net | 2,869.2 | 2,776.4 | ||||||||||||
Operating lease right-of-use assets | 169.5 | 179.5 | ||||||||||||
Goodwill | 744.3 | 744.3 | ||||||||||||
Other intangibles, net | 305.1 | 315.6 | ||||||||||||
Equity method investments | 363.7 | 359.7 | ||||||||||||
Other non-current assets | 121.6 | 100.4 | ||||||||||||
Total assets | $ | 7,769.5 | $ | 8,192.8 | ||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable | $ | 1,990.1 | $ | 1,745.6 | ||||||||||
Current portion of long-term debt | 49.5 | 74.5 | ||||||||||||
Current portion of obligation under Inventory Intermediation Agreement | — | 49.9 | ||||||||||||
Current portion of operating lease liabilities | 50.2 | 49.6 | ||||||||||||
Accrued expenses and other current liabilities | 824.8 | 1,166.8 | ||||||||||||
Total current liabilities | 2,914.6 | 3,086.4 | ||||||||||||
Non-current liabilities: | ||||||||||||||
Long-term debt, net of current portion | 2,761.4 | 2,979.2 | ||||||||||||
Obligation under Inventory Intermediation Agreement | 453.4 | 491.8 | ||||||||||||
Environmental liabilities, net of current portion | 111.6 | 111.5 | ||||||||||||
Asset retirement obligations | 42.5 | 41.8 | ||||||||||||
Deferred tax liabilities | 280.7 | 266.5 | ||||||||||||
Operating lease liabilities, net of current portion | 113.4 | 122.4 | ||||||||||||
Other non-current liabilities | 29.0 | 23.7 | ||||||||||||
Total non-current liabilities | 3,792.0 | 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, 83,150,295 shares and 84,509,517 shares issued at June 30, 2023 and December 31, 2022, respectively | 0.8 | 0.9 | ||||||||||||
Additional paid-in capital | 1,121.8 | 1,134.1 | ||||||||||||
Accumulated other comprehensive loss | (5.3) | (5.2) | ||||||||||||
Treasury stock, 17,575,527 shares, at cost, at June 30, 2023 and December 31, 2022, respectively | (694.1) | (694.1) | ||||||||||||
Retained earnings | 518.1 | 507.9 | ||||||||||||
Non-controlling interests in subsidiaries | 121.6 | 125.9 | ||||||||||||
Total stockholders’ equity | 1,062.9 | 1,069.5 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 7,769.5 | $ | 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 June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||
2023 | 2022 (1) |
2023 | 2022 (1) |
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Net revenues | $ | 4,195.6 | $ | 5,982.6 | $ | 8,119.9 | $ | 10,441.7 | ||||||||||||||||||
Cost of sales: | ||||||||||||||||||||||||||
Cost of materials and other | 3,766.6 | 5,082.6 | 7,206.2 | 9,235.1 | ||||||||||||||||||||||
Operating expenses (excluding depreciation and amortization presented below) | 188.7 | 192.7 | 359.5 | 335.1 | ||||||||||||||||||||||
Depreciation and amortization | 82.6 | 62.8 | 159.4 | 125.5 | ||||||||||||||||||||||
Total cost of sales | 4,037.9 | 5,338.1 | 7,725.1 | 9,695.7 | ||||||||||||||||||||||
Operating expenses related to retail and wholesale business (excluding depreciation and amortization presented below) | 31.1 | 34.0 | 58.1 | 61.4 | ||||||||||||||||||||||
General and administrative expenses | 75.8 | 122.3 | 147.3 | 172.5 | ||||||||||||||||||||||
Depreciation and amortization | 6.8 | 5.2 | 13.4 | 10.8 | ||||||||||||||||||||||
Other operating income, net | (6.1) | (10.3) | (16.9) | (38.7) | ||||||||||||||||||||||
Total operating costs and expenses | 4,145.5 | 5,489.3 | 7,927.0 | 9,901.7 | ||||||||||||||||||||||
Operating income | 50.1 | 493.3 | 192.9 | 540.0 | ||||||||||||||||||||||
Interest expense, net | 80.4 | 43.6 | 156.9 | 82.0 | ||||||||||||||||||||||
Income from equity method investments | (25.5) | (15.7) | (40.1) | (26.6) | ||||||||||||||||||||||
Other expense (income), net | 0.5 | (3.6) | (6.6) | (2.3) | ||||||||||||||||||||||
Total non-operating expense, net | 55.4 | 24.3 | 110.2 | 53.1 | ||||||||||||||||||||||
(Loss) income before income tax (benefit) expense | (5.3) | 469.0 | 82.7 | 486.9 | ||||||||||||||||||||||
Income tax (benefit) expense | (3.8) | 100.4 | 12.0 | 103.5 | ||||||||||||||||||||||
Net (loss) income | (1.5) | 368.6 | 70.7 | 383.4 | ||||||||||||||||||||||
Net income attributed to non-controlling interests | 6.8 | 6.8 | 14.7 | 15.0 | ||||||||||||||||||||||
Net (loss) income attributable to Delek | $ | (8.3) | $ | 361.8 | $ | 56.0 | $ | 368.4 | ||||||||||||||||||
Basic (loss) income per share | $ | (0.13) | $ | 5.11 | $ | 0.84 | $ | 5.12 | ||||||||||||||||||
Diluted (loss) income per share | $ | (0.13) | $ | 5.05 | $ | 0.84 | $ | 5.07 | ||||||||||||||||||
Weighted average common shares outstanding: | ||||||||||||||||||||||||||
Basic | 65,773,609 | 70,805,458 | 66,359,537 | 72,014,151 | ||||||||||||||||||||||
Diluted | 65,773,609 | 71,679,954 | 66,835,322 | 72,675,313 | ||||||||||||||||||||||
Condensed Cash Flow Data (Unaudited) | ||||||||||||||||||||||||||
($ in millions) | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||
2023 | 2022 |
2023 | 2022 |
|||||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||||
Net cash provided by operating activities | $ | 95.1 | $ | 559.1 | $ | 490.2 | $ | 585.9 | ||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||
Net cash used in investing activities | (57.8) | (690.7) | (279.9) | (720.9) | ||||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||
Net cash (used in) provided by financing activities | (80.7) | 522.1 | (230.0) | 523.1 | ||||||||||||||||||||||
Net (decrease) increase in cash and cash equivalents | (43.4) | 390.5 | (19.7) | 388.1 | ||||||||||||||||||||||
Cash and cash equivalents at the beginning of the period | 865.0 | 854.1 | 841.3 | 856.5 | ||||||||||||||||||||||
Cash and cash equivalents at the end of the period | $ | 821.6 | $ | 1,244.6 | $ | 821.6 | $ | 1,244.6 | ||||||||||||||||||
6 | |
7 | |
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) | 2023 | 2022 |
2023 | 2022 |
||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
Reported net income (loss) attributable to Delek | $ | (8.3) | $ | 361.8 | $ | 56.0 | $ | 368.4 | ||||||||||||||||||
Adjusting items (1) |
||||||||||||||||||||||||||
Inventory LCM valuation (benefit) loss | (7.9) | 7.3 | (9.6) | (1.2) | ||||||||||||||||||||||
Tax effect | 1.8 | (1.7) | 2.2 | 0.3 | ||||||||||||||||||||||
Inventory LCM valuation (benefit) loss, net | (6.1) | 5.6 | (7.4) | (0.9) | ||||||||||||||||||||||
Other inventory impact | 96.5 | (55.0) | 173.6 | (142.0) | ||||||||||||||||||||||
Tax effect | (21.8) | 12.8 | (39.1) | 33.6 | ||||||||||||||||||||||
Other inventory impact, net (2) |
74.7 | (42.2) | 134.5 | (108.4) | ||||||||||||||||||||||
Business interruption insurance recoveries | (4.7) | (8.6) | (9.8) | (18.6) | ||||||||||||||||||||||
Tax effect | 1.1 | 1.9 | 2.2 | 4.2 | ||||||||||||||||||||||
Business interruption insurance recoveries, net (2) |
(3.6) | (6.7) | (7.6) | (14.4) | ||||||||||||||||||||||
Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements (3) |
6.7 | (68.3) | (25.5) | (3.8) | ||||||||||||||||||||||
Tax effect | (1.5) | 16.5 | 5.7 | 0.9 | ||||||||||||||||||||||
Unrealized hedging (gain) loss where the hedged item is not yet recognized in the financial statements, net | 5.2 | (51.8) | (19.8) | (2.9) | ||||||||||||||||||||||
Transaction related expenses | — | 6.2 | — | 6.4 | ||||||||||||||||||||||
Tax effect | — | (1.5) | — | (1.5) | ||||||||||||||||||||||
Transaction related expenses, net | — | 4.7 | — | 4.9 | ||||||||||||||||||||||
Restructuring costs | 4.3 | — | 2.9 | — | ||||||||||||||||||||||
Tax effect | (1.0) | — | (0.7) | — | ||||||||||||||||||||||
Restructuring costs, net (2) |
3.3 | — | 2.2 | — | ||||||||||||||||||||||
Total adjusting items (1) |
73.5 | (90.4) | 101.9 | (121.7) | ||||||||||||||||||||||
Adjusted net income | $ | 65.2 | $ | 271.4 | $ | 157.9 | $ | 246.7 |
8 | |
Reconciliation of U.S. GAAP Income (Loss) per share to Adjusted Net Income (Loss) per share: | ||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
$ per share (unaudited) | 2023 | 2022 |
2023 | 2022 |
||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
Reported diluted income per share | $ | (0.13) | $ | 5.05 | $ | 0.84 | $ | 5.07 | ||||||||||||||||||
Adjusting items, after tax (per share) (1) (2) |
||||||||||||||||||||||||||
Net inventory LCM valuation (benefit) loss | (0.09) | 0.08 | (0.11) | (0.01) | ||||||||||||||||||||||
Other inventory impact (3) |
1.14 | (0.59) | 2.01 | (1.49) | ||||||||||||||||||||||
Business interruption insurance recoveries (3) |
(0.05) | (0.09) | (0.11) | (0.20) | ||||||||||||||||||||||
Total unrealized hedging (gain) loss where the hedged item is not yet recognized in the financial statements (4) |
0.08 | (0.72) | (0.30) | (0.04) | ||||||||||||||||||||||
Transaction related expenses | — | 0.07 | — | 0.07 | ||||||||||||||||||||||
Restructuring costs (3) |
0.05 | — | 0.03 | — | ||||||||||||||||||||||
Total adjusting items (1) |
1.13 | (1.25) | 1.52 | (1.67) | ||||||||||||||||||||||
Adjusted net income per share | $ | 1.00 | $ | 3.80 | $ | 2.36 | $ | 3.40 | ||||||||||||||||||
9 | |
Reconciliation of Net Income (Loss) attributable to Delek to Adjusted EBITDA | ||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
$ in millions (unaudited) | 2023 | 2022 |
2023 | 2022 |
||||||||||||||||||||||
Reported net (loss) income attributable to Delek | $ | (8.3) | $ | 361.8 | $ | 56.0 | $ | 368.4 | ||||||||||||||||||
Add: | ||||||||||||||||||||||||||
Interest expense, net | 80.4 | 43.6 | 156.9 | 82.0 | ||||||||||||||||||||||
Income tax expense (benefit) | (3.8) | 100.4 | 12.0 | 103.5 | ||||||||||||||||||||||
Depreciation and amortization | 89.4 | 68.0 | 172.8 | 136.3 | ||||||||||||||||||||||
EBITDA attributable to Delek | 157.7 | 573.8 | 397.7 | 690.2 | ||||||||||||||||||||||
Adjusting items | ||||||||||||||||||||||||||
Net inventory LCM valuation (benefit) loss | (7.9) | 7.3 | (9.6) | (1.2) | ||||||||||||||||||||||
Other inventory impact (1) |
96.5 | (55.0) | 173.6 | (142.0) | ||||||||||||||||||||||
Business Interruption insurance recoveries (1) |
(4.7) | (8.6) | (9.8) | (18.6) | ||||||||||||||||||||||
Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements (2) |
6.7 | (68.3) | (25.5) | (3.8) | ||||||||||||||||||||||
Transaction related expenses | — | 6.2 | — | 6.4 | ||||||||||||||||||||||
Restructuring costs (1) |
4.3 | — | 2.9 | — | ||||||||||||||||||||||
Net income attributable to non-controlling interest | 6.8 | 6.8 | 14.7 | 15.0 | ||||||||||||||||||||||
Total Adjusting items | 101.7 | (111.6) | 146.3 | (144.2) | ||||||||||||||||||||||
Adjusted EBITDA | $ | 259.4 | $ | 462.2 | $ | 544.0 | $ | 546.0 |
10 | |
Reconciliation of Segment EBITDA Attributable to Delek to Adjusted Segment EBITDA: | ||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2023 | ||||||||||||||||||||||||||||||||
$ in millions (unaudited) | Refining | Logistics | Retail | Corporate, Other and Eliminations | Consolidated | |||||||||||||||||||||||||||
Segment EBITDA Attributable to Delek | $ | 110.5 | $ | 90.9 | $ | 15.0 | $ | (58.7) | $ | 157.7 | ||||||||||||||||||||||
Adjusting items | ||||||||||||||||||||||||||||||||
Net inventory LCM valuation (benefit) loss | (7.9) | — | — | — | (7.9) | |||||||||||||||||||||||||||
Other inventory impact (1) |
96.5 | — | — | — | 96.5 | |||||||||||||||||||||||||||
Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements (2) |
6.7 | — | — | — | 6.7 | |||||||||||||||||||||||||||
Restructuring costs (1) |
— | — | — | 4.3 | 4.3 | |||||||||||||||||||||||||||
Business Interruption insurance recoveries (1) |
(4.7) | — | — | — | (4.7) | |||||||||||||||||||||||||||
Net income attributable to non-controlling interest | — | — | — | 6.8 | 6.8 | |||||||||||||||||||||||||||
Total Adjusting items | 90.6 | — | — | 11.1 | 101.7 | |||||||||||||||||||||||||||
Adjusted Segment EBITDA | $ | 201.1 | $ | 90.9 | $ | 15.0 | $ | (47.6) | $ | 259.4 |
Three Months Ended June 30, 2022 |
||||||||||||||||||||||||||||||||
$ in millions (unaudited) | Refining | Logistics | Retail | Corporate, Other and Eliminations | Consolidated | |||||||||||||||||||||||||||
Segment EBITDA Attributable to Delek | $ | 587.9 | $ | 62.6 | $ | 12.5 | $ | (89.2) | $ | 573.8 | ||||||||||||||||||||||
Adjusting items | ||||||||||||||||||||||||||||||||
Net inventory LCM valuation (benefit) loss | 7.3 | — | — | — | 7.3 | |||||||||||||||||||||||||||
Other inventory impact (1) |
(55.0) | — | — | — | (55.0) | |||||||||||||||||||||||||||
Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements (2) |
(68.5) | 0.2 | — | — | (68.3) | |||||||||||||||||||||||||||
Transaction related expenses | — | 6.2 | — | — | 6.2 | |||||||||||||||||||||||||||
Business Interruption insurance recoveries | (8.6) | — | — | — | (8.6) | |||||||||||||||||||||||||||
Net income attributable to non-controlling interest | — | — | — | 6.8 | 6.8 | |||||||||||||||||||||||||||
Total Adjusting items | (124.8) | 6.4 | — | 6.8 | (111.6) | |||||||||||||||||||||||||||
Adjusted Segment EBITDA | $ | 463.1 | $ | 69.0 | $ | 12.5 | $ | (82.4) | $ | 462.2 |
11 | |
Reconciliation of Segment EBITDA Attributable to Delek to Adjusted Segment EBITDA | ||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2023 | ||||||||||||||||||||||||||||||||
$ in millions (unaudited) | Refining | Logistics | Retail | Corporate, Other and Eliminations | Consolidated | |||||||||||||||||||||||||||
Segment EBITDA Attributable to Delek | $ | 302.6 | $ | 182.3 | $ | 21.4 | $ | (108.6) | $ | 397.7 | ||||||||||||||||||||||
Adjusting items | ||||||||||||||||||||||||||||||||
Net inventory LCM valuation (benefit) loss | (9.6) | — | — | — | (9.6) | |||||||||||||||||||||||||||
Other inventory impact (1) |
173.6 | — | — | — | 173.6 | |||||||||||||||||||||||||||
Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements (2) |
(25.5) | — | — | — | (25.5) | |||||||||||||||||||||||||||
Restructuring costs | — | — | — | 2.9 | 2.9 | |||||||||||||||||||||||||||
Business Interruption insurance recoveries | (9.8) | — | — | — | (9.8) | |||||||||||||||||||||||||||
Net income attributable to non-controlling interest | — | — | — | 14.7 | 14.7 | |||||||||||||||||||||||||||
Total Adjusting items | 128.7 | — | — | 17.6 | 146.3 | |||||||||||||||||||||||||||
Adjusted Segment EBITDA | $ | 431.3 | $ | 182.3 | $ | 21.4 | $ | (91.0) | $ | 544.0 |
Six Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||
$ in millions (unaudited) | Refining | Logistics | Retail | Corporate, Other and Eliminations | Consolidated | |||||||||||||||||||||||||||
Segment EBITDA Attributable to Delek | $ | 667.9 | $ | 126.8 | $ | 22.8 | $ | (127.3) | $ | 690.2 | ||||||||||||||||||||||
Adjusting items | ||||||||||||||||||||||||||||||||
Net inventory LCM valuation (benefit) loss | (1.2) | — | — | — | (1.2) | |||||||||||||||||||||||||||
Other inventory impact (1) |
(142.0) | — | — | — | (142.0) | |||||||||||||||||||||||||||
Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements (2) |
(3.8) | — | — | — | (3.8) | |||||||||||||||||||||||||||
Transaction related expenses | — | 6.4 | — | — | 6.4 | |||||||||||||||||||||||||||
Business Interruption insurance recoveries | (18.6) | — | — | — | (18.6) | |||||||||||||||||||||||||||
Net income attributable to non-controlling interest | — | — | — | 15.0 | 15.0 | |||||||||||||||||||||||||||
Total Adjusting items | (165.6) | 6.4 | — | 15.0 | (144.2) | |||||||||||||||||||||||||||
Adjusted Segment EBITDA | $ | 502.3 | $ | 133.2 | $ | 22.8 | $ | (112.3) | $ | 546.0 |
12 | |
Refining Segment Selected Financial Information | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Total Refining Segment | (Unaudited) | (Unaudited) | ||||||||||||||||||||||||
Days in period | 91 | 91 | 181 | 181 | ||||||||||||||||||||||
Total sales volume - refined product (average barrels per day ("bpd")) (1) |
305,688 | 305,300 | 288,795 | 304,587 | ||||||||||||||||||||||
Total production (average bpd) | 291,715 | 295,457 | 279,230 | 290,784 | ||||||||||||||||||||||
Crude oil | 282,493 | 294,702 | 265,441 | 283,491 | ||||||||||||||||||||||
Other feedstocks | 12,988 | 2,602 | 16,642 | 8,703 | ||||||||||||||||||||||
Total throughput (average bpd): | 295,481 | 297,304 | 282,083 | 292,194 | ||||||||||||||||||||||
Total refining production margin per bbl total throughput | $ | 9.29 | $ | 28.98 | $ | 12.68 | $ | 20.06 | ||||||||||||||||||
Total refining operating expenses per bbl total throughput | $ | 5.43 | $ | 6.19 | $ | 5.51 | $ | 5.45 | ||||||||||||||||||
Total refining production margin ($ in millions) | $ | 249.9 | $ | 784.1 | $ | 647.2 | $ | 1,060.7 | ||||||||||||||||||
Trading & supply and other ($ millions) (2) |
114.6 | (121.9) | 96.2 | (227.2) | ||||||||||||||||||||||
Total adjusted refining margin ($ in millions) | $ | 364.5 | $ | 662.2 | $ | 743.4 | $ | 833.5 | ||||||||||||||||||
Total crude slate details | ||||||||||||||||||||||||||
Total crude slate: (% based on amount received in period) | ||||||||||||||||||||||||||
WTI crude oil | 75.9 | % | 62.2 | % | 73.2 | % | 62.4 | % | ||||||||||||||||||
Gulf Coast Sweet Crude | 4.0 | % | 10.8 | % | 4.3 | % | 10.1 | % | ||||||||||||||||||
Local Arkansas crude oil | 3.9 | % | 4.3 | % | 4.2 | % | 4.4 | % | ||||||||||||||||||
Other | 16.2 | % | 22.7 | % | 18.3 | % | 23.1 | % | ||||||||||||||||||
Crude utilization (% based on nameplate capacity)(5) |
93.5 | % | 97.6 | % | 87.9 | % | 93.9 | % | ||||||||||||||||||
Tyler, TX Refinery | ||||||||||||||||||||||||||
Days in period | 91 | 91 | 181 | 181 | ||||||||||||||||||||||
Products manufactured (average bpd): | ||||||||||||||||||||||||||
Gasoline | 37,672 | 32,645 | 28,276 | 34,924 | ||||||||||||||||||||||
Diesel/Jet | 33,029 | 30,271 | 23,091 | 29,644 | ||||||||||||||||||||||
Petrochemicals, LPG, NGLs | 3,031 | 1,983 | 1,890 | 2,116 | ||||||||||||||||||||||
Other | 1,829 | 1,824 | 1,803 | 1,748 | ||||||||||||||||||||||
Total production | 75,561 | 66,723 | 55,060 | 68,432 | ||||||||||||||||||||||
Throughput (average bpd): | ||||||||||||||||||||||||||
Crude oil | 72,955 | 66,681 | 51,501 | 66,559 | ||||||||||||||||||||||
Other feedstocks | 3,955 | 552 | 4,323 | 2,128 | ||||||||||||||||||||||
Total throughput | 76,910 | 67,233 | 55,824 | 68,687 | ||||||||||||||||||||||
Tyler refining production margin ($ in millions) | $ | 97.1 | $ | 211.2 | $ | 164.3 | $ | 290.3 | ||||||||||||||||||
Per barrel of throughput: | ||||||||||||||||||||||||||
Tyler refining production margin | $ | 13.87 | $ | 34.51 | $ | 16.26 | $ | 23.35 | ||||||||||||||||||
Operating expenses (3) |
$ | 3.78 | $ | 6.20 | $ | 5.29 | $ | 5.40 | ||||||||||||||||||
Crude Slate: (% based on amount received in period) | ||||||||||||||||||||||||||
WTI crude oil | 86.5 | % | 83.8 | % | 78.7 | % | 85.4 | % | ||||||||||||||||||
East Texas crude oil | 13.5 | % | 16.2 | % | 21.3 | % | 14.6 | % | ||||||||||||||||||
Capture Rate (4) |
54.3 | % | 78.4 | % | 56.0 | % | 69.2 | % | ||||||||||||||||||
El Dorado, AR Refinery | ||||||||||||||||||||||||||
Days in period |
91 | 91 | 181 | 181 | ||||||||||||||||||||||
Products manufactured (average bpd): | ||||||||||||||||||||||||||
Gasoline | 34,220 | 39,347 | 36,121 | 38,118 | ||||||||||||||||||||||
Diesel | 27,948 | 32,855 | 27,830 | 31,027 | ||||||||||||||||||||||
Petrochemicals, LPG, NGLs | 1,521 | 1,549 | 1,406 | 1,285 | ||||||||||||||||||||||
Asphalt | 6,641 | 8,181 | 7,177 | 7,655 | ||||||||||||||||||||||
Other | 1,185 | 805 | 967 | 795 | ||||||||||||||||||||||
Total production | 71,515 | 82,737 | 73,501 | 78,880 | ||||||||||||||||||||||
Throughput (average bpd): | ||||||||||||||||||||||||||
Crude oil | 71,449 | 81,510 | 72,040 | 76,827 | ||||||||||||||||||||||
Other feedstocks | 2,011 | 2,221 | 3,278 | 3,079 | ||||||||||||||||||||||
Total throughput | 73,460 | 83,731 | 75,318 | 79,906 |
13 | |
Refining Segment Selected Financial Information (continued) | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
El Dorado refining production margin ($ in millions) | $ | 40.5 | $ | 195.8 | $ | 133.5 | $ | 244.8 | ||||||||||||||||||
Per barrel of throughput: | ||||||||||||||||||||||||||
El Dorado refining production margin | $ | 6.06 | $ | 25.70 | $ | 9.79 | $ | 16.93 | ||||||||||||||||||
Operating expenses (3) |
$ | 5.00 | $ | 5.07 | $ | 4.73 | $ | 4.63 | ||||||||||||||||||
Crude Slate: (% based on amount received in period) | ||||||||||||||||||||||||||
WTI crude oil | 68.4 | % | 53.1 | % | 65.2 | % | 43.2 | % | ||||||||||||||||||
Local Arkansas crude oil | 16.6 | % | 15.6 | % | 15.6 | % | 16.4 | % | ||||||||||||||||||
Other | 15.0 | % | 31.3 | % | 19.2 | % | 40.4 | % | ||||||||||||||||||
Capture Rate (4) |
23.7 | % | 58.4 | % | 33.7 | % | 50.1 | % | ||||||||||||||||||
Big Spring, TX Refinery | ||||||||||||||||||||||||||
Days in period |
91 | 91 | 181 | 181 | ||||||||||||||||||||||
Products manufactured (average bpd): | ||||||||||||||||||||||||||
Gasoline | 33,582 | 34,918 | 36,032 | 33,912 | ||||||||||||||||||||||
Diesel/Jet | 20,774 | 27,043 | 23,194 | 24,877 | ||||||||||||||||||||||
Petrochemicals, LPG, NGLs | 3,034 | 3,537 | 3,083 | 3,436 | ||||||||||||||||||||||
Asphalt | 1,630 | 1,406 | 1,636 | 1,642 | ||||||||||||||||||||||
Other | 1,907 | 1,410 | 2,272 | 1,345 | ||||||||||||||||||||||
Total production | 60,927 | 68,314 | 66,217 | 65,212 | ||||||||||||||||||||||
Throughput (average bpd): | ||||||||||||||||||||||||||
Crude oil | 59,240 | 70,662 | 63,590 | 65,675 | ||||||||||||||||||||||
Other feedstocks | 3,020 | (1,093) | 3,818 | 315 | ||||||||||||||||||||||
Total throughput | 62,260 | 69,569 | 67,408 | 65,990 | ||||||||||||||||||||||
Big Spring refining production margin ($ in millions) | $ | 65.5 | $ | 182.4 | $ | 185.3 | $ | 253.5 | ||||||||||||||||||
Per barrel of throughput: | ||||||||||||||||||||||||||
Big Spring refining production margin | $ | 11.55 | $ | 28.82 | $ | 15.18 | $ | 21.23 | ||||||||||||||||||
Operating expenses (3) |
$ | 8.91 | $ | 7.58 | $ | 7.24 | $ | 6.86 | ||||||||||||||||||
Crude Slate: (% based on amount received in period) | ||||||||||||||||||||||||||
WTI crude oil | 66.7 | % | 68.2 | % | 71.0 | % | 67.5 | % | ||||||||||||||||||
WTS crude oil | 33.3 | % | 31.8 | % | 29.0 | % | 32.5 | % | ||||||||||||||||||
Capture Rate (4) |
45.5 | % | 67.9 | % | 53.6 | % | 65.2 | % | ||||||||||||||||||
Krotz Springs, LA Refinery | ||||||||||||||||||||||||||
Days in period |
91 | 91 | 181 | 181 | ||||||||||||||||||||||
Products manufactured (average bpd): | ||||||||||||||||||||||||||
Gasoline | 41,191 | 31,298 | 41,517 | 31,979 | ||||||||||||||||||||||
Diesel/Jet | 31,968 | 32,419 | 32,373 | 31,711 | ||||||||||||||||||||||
Heavy oils | 3,725 | 845 | 3,618 | 1,690 | ||||||||||||||||||||||
Petrochemicals, LPG, NGLs | 6,588 | 7,152 | 6,730 | 7,040 | ||||||||||||||||||||||
Other | 240 | 5,970 | 214 | 5,840 | ||||||||||||||||||||||
Total production | 83,712 | 77,684 | 84,452 | 78,260 | ||||||||||||||||||||||
Throughput (average bpd): | ||||||||||||||||||||||||||
Crude oil | 78,848 | 75,849 | 78,309 | 74,430 | ||||||||||||||||||||||
Other feedstocks | 4,002 | 922 | 5,224 | 3,181 | ||||||||||||||||||||||
Total throughput | 82,850 | 76,771 | 83,533 | 77,611 | ||||||||||||||||||||||
Krotz Springs refining production margin ($ in millions) | $ | 46.8 | $ | 194.7 | $ | 164.1 | $ | 272.1 | ||||||||||||||||||
Per barrel of throughput: | ||||||||||||||||||||||||||
Krotz Springs refining production margin | $ | 6.21 | $ | 27.87 | $ | 10.85 | $ | 19.37 | ||||||||||||||||||
Operating expenses (3) |
$ | 4.74 | $ | 6.14 | $ | 4.97 | $ | 5.12 | ||||||||||||||||||
Crude Slate: (% based on amount received in period) | ||||||||||||||||||||||||||
WTI Crude | 77.4 | % | 49.4 | % | 78.5 | % | 56.6 | % | ||||||||||||||||||
Gulf Coast Sweet Crude | 15.0 | % | 40.6 | % | 14.7 | % | 38.2 | % | ||||||||||||||||||
Other | 7.6 | % | 10.0 | % | 6.8 | % | 5.2 | % | ||||||||||||||||||
Capture Rate (4) |
54.9 | % | 76.9 | % | 71.3 | % | 72.5 | % |
14 | |
Logistics Segment Selected Information | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||||||||||||
Gathering & Processing: (average bpd) | ||||||||||||||||||||||||||
Lion Pipeline System: | ||||||||||||||||||||||||||
Crude pipelines (non-gathered) | 61,260 | 84,699 | 62,131 | 78,818 | ||||||||||||||||||||||
Refined products pipelines | 44,966 | 64,821 | 49,957 | 62,186 | ||||||||||||||||||||||
SALA Gathering System | 13,041 | 17,961 | 13,509 | 17,064 | ||||||||||||||||||||||
East Texas Crude Logistics System | 30,666 | 19,942 | 26,690 | 18,010 | ||||||||||||||||||||||
Midland Gathering Assets (1) |
221,876 | 101,236 | 221,993 | 100,783 | ||||||||||||||||||||||
Plains Connection System | 255,035 | 154,086 | 247,856 | 158,025 | ||||||||||||||||||||||
Delaware Gathering Assets: (2) |
||||||||||||||||||||||||||
Natural Gas Gathering and Processing (Mcfd) (3) |
73,309 | 51,292 | 74,008 | 51,292 | ||||||||||||||||||||||
Crude Oil Gathering (average bpd) | 117,017 | 78,011 | 110,408 | 78,011 | ||||||||||||||||||||||
Water Disposal and Recycling (average bpd) | 127,195 | 57,625 | 107,848 | 57,625 | ||||||||||||||||||||||
Wholesale Marketing & Terminalling: | ||||||||||||||||||||||||||
East Texas - Tyler Refinery sales volumes (average bpd) (4) |
69,310 | 63,502 | 52,158 | 67,021 | ||||||||||||||||||||||
Big Spring wholesale marketing throughputs (average bpd) | 75,164 | 78,634 | 76,763 | 77,100 | ||||||||||||||||||||||
West Texas wholesale marketing throughputs (average bpd) | 9,985 | 10,073 | 9,454 | 9,994 | ||||||||||||||||||||||
West Texas wholesale marketing margin per barrel | $ | 3.23 | $ | 2.67 | $ | 2.89 | $ | 2.85 | ||||||||||||||||||
Terminalling throughputs (average bpd) (5) |
134,323 | 130,002 | 113,926 | 136,808 |
Retail Segment Selected Information |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||||||||||||
Number of stores (end of period) | 247 | 248 | 247 | 248 | ||||||||||||||||||||||
Average number of stores | 247 | 248 | 247 | 248 | ||||||||||||||||||||||
Average number of fuel stores | 242 | 243 | 242 | 243 | ||||||||||||||||||||||
Retail fuel sales (thousands of gallons) | 45,687 | 44,911 | 85,651 | 84,416 | ||||||||||||||||||||||
Average retail gallons sold per average number of fuel stores (in thousands) | 189 | 185 | 354 | 348 | ||||||||||||||||||||||
Average retail sales price per gallon sold | $ | 3.25 | $ | 4.31 | $ | 3.26 | $ | 3.95 | ||||||||||||||||||
Retail fuel margin ($ per gallon) (1) |
$ | 0.34 | $ | 0.33 | $ | 0.31 | $ | 0.32 | ||||||||||||||||||
Merchandise sales (in millions) | $ | 84.3 | $ | 83.4 | $ | 158.2 | $ | 153.1 | ||||||||||||||||||
Merchandise sales per average number of stores (in millions) | $ | 0.3 | $ | 0.3 | $ | 0.6 | $ | 0.6 | ||||||||||||||||||
Merchandise margin % | 33.9 | % | 34.0 | % | 33.5 | % | 34.3 | % | ||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Same-Store Comparison (2) |
(Unaudited) | (Unaudited) | ||||||||||||||||||||||||
Change in same-store fuel gallons sold | (1.5) | % | 5.8 | % | (1.6) | % | 3.4 | % | ||||||||||||||||||
Change in same-store merchandise sales | 0.1 | % | 0.1 | % | 2.4 | % | (2.4) | % |
15 | |
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 | ||||||||||||||||||||
Selected Segment Financial Data | Three Months Ended June 30, 2023 | |||||||||||||||||||||||||||||||
$ in millions (unaudited) | Refining | Logistics | Retail | Corporate, Other and Eliminations |
Consolidated | |||||||||||||||||||||||||||
Net revenues (excluding intercompany fees and revenues) | $ | 3,849.0 | $ | 113.9 | $ | 232.7 | $ | — | $ | 4,195.6 | ||||||||||||||||||||||
Inter-segment fees and revenues | 203.5 | 133.0 | — | (336.5) | — | |||||||||||||||||||||||||||
Total revenues | $ | 4,052.5 | $ | 246.9 | $ | 232.7 | $ | (336.5) | $ | 4,195.6 | ||||||||||||||||||||||
Cost of sales | 3,996.9 | 179.0 | 188.5 | (326.5) | 4,037.9 | |||||||||||||||||||||||||||
Gross margin | $ | 55.6 | $ | 67.9 | $ | 44.2 | $ | (10.0) | $ | 157.7 | ||||||||||||||||||||||
Three Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||
$ in millions (unaudited) | Refining | Logistics | Retail | Corporate, Other and Eliminations |
Consolidated | |||||||||||||||||||||||||||
Net revenues (excluding intercompany fees and revenues) | $ | 5,562.6 | $ | 142.4 | $ | 277.1 | $ | 0.5 | $ | 5,982.6 | ||||||||||||||||||||||
Inter-segment fees and revenues | 312.3 | 124.3 | — | (436.6) | — | |||||||||||||||||||||||||||
Total revenues | $ | 5,874.9 | $ | 266.7 | $ | 277.1 | $ | (436.1) | $ | 5,982.6 | ||||||||||||||||||||||
Cost of sales | 5,315.8 | 209.6 | 233.8 | (421.1) | 5,338.1 | |||||||||||||||||||||||||||
Gross margin | $ | 559.1 | $ | 57.1 | $ | 43.3 | $ | (15.0) | $ | 644.5 | ||||||||||||||||||||||
Six Months Ended June 30, 2023 | ||||||||||||||||||||||||||||||||
$ in millions (unaudited) | Refining | Logistics | Retail | Corporate, Other and Eliminations |
Consolidated | |||||||||||||||||||||||||||
Net revenues (excluding intercompany fees and revenues) | $ | 7,449.8 | $ | 232.4 | $ | 437.7 | $ | — | $ | 8,119.9 | ||||||||||||||||||||||
Inter-segment fees and revenues | 397.2 | 258.0 | — | (655.2) | — | |||||||||||||||||||||||||||
Total revenues | $ | 7,847.0 | $ | 490.4 | $ | 437.7 | $ | (655.2) | $ | 8,119.9 | ||||||||||||||||||||||
Cost of sales | 7,651.4 | 349.1 | 358.5 | (633.9) | 7,725.1 | |||||||||||||||||||||||||||
Gross margin | $ | 195.6 | $ | 141.3 | $ | 79.2 | $ | (21.3) | $ | 394.8 | ||||||||||||||||||||||
Six Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||
$ in millions (unaudited) | Refining | Logistics | Retail | Corporate, Other and Eliminations |
Consolidated | |||||||||||||||||||||||||||
Net revenues (excluding intercompany fees and revenues) | $ | 9,729.1 | $ | 225.2 | $ | 486.6 | $ | 0.8 | $ | 10,441.7 | ||||||||||||||||||||||
Inter-segment fees and revenues | 538.1 | 248.1 | — | (786.2) | — | |||||||||||||||||||||||||||
Total revenues | $ | 10,267.2 | $ | 473.3 | $ | 486.6 | $ | (785.4) | $ | 10,441.7 | ||||||||||||||||||||||
Cost of sales | 9,681.5 | 363.2 | 406.8 | (755.8) | 9,695.7 | |||||||||||||||||||||||||||
Gross margin | $ | 585.7 | $ | 110.1 | $ | 79.8 | $ | (29.6) | $ | 746.0 | ||||||||||||||||||||||
16 | |
Pricing Statistics | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||
(average for the period presented) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
WTI — Cushing crude oil (per barrel) | $ | 73.57 | $ | 108.74 | $ | 74.78 | $ | 102.02 | ||||||||||||||||||
WTI — Midland crude oil (per barrel) | $ | 73.56 | $ | 108.50 | $ | 74.77 | $ | 101.81 | ||||||||||||||||||
WTS — Midland crude oil (per barrel) | $ | 73.55 | $ | 109.06 | $ | 74.48 | $ | 101.92 | ||||||||||||||||||
LLS (per barrel) | $ | 75.67 | $ | 110.25 | $ | 77.27 | $ | 103.92 | ||||||||||||||||||
Brent (per barrel) | $ | 77.74 | $ | 111.84 | $ | 79.94 | $ | 104.93 | ||||||||||||||||||
U.S. Gulf Coast 5-3-2 crack spread (per barrel) (1) |
$ | 25.54 | $ | 44.03 | $ | 29.04 | $ | 33.77 | ||||||||||||||||||
U.S. Gulf Coast 3-2-1 crack spread (per barrel) (1) |
$ | 25.42 | $ | 42.44 | $ | 28.32 | $ | 32.56 | ||||||||||||||||||
U.S. Gulf Coast 2-1-1 crack spread (per barrel) (1) |
$ | 11.32 | $ | 36.23 | $ | 15.23 | $ | 26.71 | ||||||||||||||||||
U.S. Gulf Coast Unleaded Gasoline (per gallon) | $ | 2.34 | $ | 3.40 | $ | 2.37 | $ | 3.05 | ||||||||||||||||||
Gulf Coast Ultra low sulfur diesel (per gallon) | $ | 2.38 | $ | 3.98 | $ | 2.62 | $ | 3.50 | ||||||||||||||||||
U.S. Gulf Coast high sulfur diesel (per gallon) | $ | 1.45 | $ | 3.39 | $ | 1.68 | $ | 3.04 | ||||||||||||||||||
Natural gas (per MMBTU) | $ | 2.33 | $ | 7.50 | $ | 2.53 | $ | 6.05 |
17 | |
Other Reconciliation of Amounts Reported Under U.S. GAAP | ||||||||||||||||||||||||||
$ in millions (unaudited) | ||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
Reconciliation of gross margin to Refining margin to Adjusted refining margin | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Gross margin | $ | 55.6 | $ | 559.1 | $ | 195.6 | $ | 585.7 | ||||||||||||||||||
Add back (items included in cost of sales): | ||||||||||||||||||||||||||
Operating expenses (excluding depreciation and amortization) | 153.8 | 169.4 | 292.9 | 292.1 | ||||||||||||||||||||||
Depreciation and amortization | 59.8 | 49.9 | 116.4 | 102.7 | ||||||||||||||||||||||
Refining margin | $ | 269.2 | $ | 778.4 | $ | 604.9 | $ | 980.5 | ||||||||||||||||||
Adjusting items | ||||||||||||||||||||||||||
Net inventory LCM valuation loss (benefit) | (7.9) | 7.3 | (9.6) | (1.2) | ||||||||||||||||||||||
Other inventory impact | 96.5 | (55.0) | 173.6 | (142.0) | ||||||||||||||||||||||
Total unrealized hedging (gain) loss where the hedged item is not yet recognized in the financial statements | 6.7 | (68.5) | (25.5) | (3.8) | ||||||||||||||||||||||
Total adjusting items | 95.3 | (116.2) | 138.5 | (147.0) | ||||||||||||||||||||||
Adjusted refining margin | $ | 364.5 | $ | 662.2 | $ | 743.4 | $ | 833.5 |
Calculation of Net Debt | June 30, 2023 | December 31, 2022 | ||||||||||||
Long-term debt - current portion | $ | 49.5 | $ | 74.5 | ||||||||||
Long-term debt - non-current portion | 2,761.4 | 2,979.2 | ||||||||||||
Total long-term debt | 2,810.9 | 3,053.7 | ||||||||||||
Less: Cash and cash equivalents | 821.6 | 841.3 | ||||||||||||
Net debt - consolidated | 1,989.3 | 2,212.4 | ||||||||||||
Less: DKL net debt | 1,736.6 | 1,653.6 | ||||||||||||
Net debt, excluding DKL | $ | 252.7 | $ | 558.8 |
18 | |