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1. Company Snapshot

1.a. Company Description

Delek US Holdings, Inc.engages in the integrated downstream energy business in the United States.The company operates through three segments: Refining, Logistics, and Retail.


The Refining segment processes crude oil and other feedstock for the manufacture of various grades of gasoline, diesel fuel, aviation fuel, asphalt, and other petroleum-based products that are distributed through owned and third-party product terminal.It owns and operates four independent refineries located in Tyler, Texas; El Dorado, Arkansas; Big Spring, Texas; and Krotz Springs, Louisiana, as well as three biodiesel facilities in Crossett, Arkansas, Cleburne, Texas, and New Albany.The Logistics segment gathers, transports, and stores crude oil, intermediate, and refined products; and markets, distributes, transports, and stores refined products for third parties.


It owns or leases capacity on approximately 400 miles of crude oil transportation pipelines, approximately 450 miles of refined product pipelines, an approximately 900-mile crude oil gathering system, and associated crude oil storage tanks with an aggregate of approximately 10.2 million barrels of active shell capacity; and owns and operates ten light product distribution terminals, as well as markets light products using third-party terminals.The Retail segment owns and leases 248 convenience store sites located primarily in West Texas and New Mexico.Its convenience stores offer various grades of gasoline and diesel under the DK or Alon brand; and food products and service, tobacco products, non-alcoholic and alcoholic beverages, and general merchandise, as well as money orders to the public primarily under the 7-Eleven and DK or Alon brand names.


It serves oil companies, independent refiners and marketers, jobbers, distributors, utility and transportation companies, the U.S. government, and independent retail fuel operators.Delek US Holdings, Inc.was founded in 2001 and is headquartered in Brentwood, Tennessee.

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1.b. Last Insights on DK

Delek US Holdings' recent performance was driven by several positive factors. The company's Q2 2025 earnings report showed progress in achieving its "Sum of the Parts" goals, with a $120 million earnings optimization program target achieved one quarter ahead of schedule. Record throughput and midstream growth also contributed to the performance. Additionally, the company's refining operations benefited from improved crack spreads and cost-cutting initiatives, supporting robust free cash flow. A quarterly dividend of $0.255 per share was also announced. Furthermore, the company received a favorable EPA decision granting small refinery exemptions for 2019-2024.

1.c. Company Highlights

2. Delek US Holdings' Strong Q3 Earnings Driven by Enterprise Optimization Plan

Delek US reported a robust adjusted EPS of $1.52, significantly beating estimates of $0.28, and adjusted EBITDA of approximately $319 million for the third quarter. The company's refining system had a strong operational quarter, with record throughput at Krotz Springs. Total throughput for the refineries was: Tyler, 76,000 barrels per day; El Dorado, 83,000 barrels per day; Big Spring, 70,000 barrels per day; and Krotz Springs, 85,000 barrels per day. The company's EOP initiatives delivered meaningful results across all business units, with an estimated $60 million contribution to P&L in the third quarter.

Publication Date: Nov -29

📋 Highlights
  • Strong Q3 Financials:: Adjusted EPS reached $1.52, with EBITDA at $319M, driven by $60M contribution from EOP initiatives.
  • Annual EOP Guidance Raised:: EOP annual run rate savings increased to at least $180M, with 73 initiatives driving margin improvements.
  • SRE Monetization:: EPA approval unlocked $400M in RINs proceeds, with 100% exemption expected for 2025 SRE petitions.
  • Full-Year EBITDA Boost:: Guidance raised to $500–520M, supported by $40M wholesale gains and EOP-driven operational efficiency.
  • Capital Discipline:: $15M dividends paid and $15M share buybacks executed, alongside net debt reduction to $265M at quarter-end.

Operational Highlights

The company's refining operations continue to demonstrate strong performance, with total throughput for the refineries indicating a healthy operational quarter. For the fourth quarter, estimated total throughput ranges are: Tyler, 70,000-78,000 barrels per day; El Dorado, 67,000-75,000 barrels per day; Big Spring, 62,000-70,000 barrels per day; and Krotz Springs, 72,000-80,000 barrels per day. The company expects operating expenses to be $205-220 million, G&A to be $52-57 million, D&A to be $100-110 million, and net interest expense to be $85-95 million in the fourth quarter.

Financial Performance and Guidance

Delek's adjusted EBITDA was $760 million, and adjusted net income was $434 million or $7.13 per share. The company's cash flow provided by operations was $44 million, and when adjusted for working capital, it was $150 million. Delek's capital expenditures were $91 million, with approximately $50 million spent in the Logistics segment. The company increased its EOP guidance to at least $180 million on an annual run rate basis and expects $400 million in proceeds from monetizing granted RINs.

Valuation and Outlook

With a P/E Ratio of -4.52 and an EV/EBITDA of 9.23, the market is pricing in a challenging environment for Delek US. Analysts estimate next year's revenue growth at -7.0%. However, the company's commitment to a disciplined and balanced approach to capital allocation, having paid $15 million in dividends and buying back $15 million of shares during the quarter, is a positive sign. The recent guidance increase for EOP cash savings and the expected $400 million in proceeds from monetizing granted RINs are also encouraging. As the company continues to execute on its EOP initiatives and navigate the complex refining environment, investors will be watching closely for further progress.

3. NewsRoom

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Delek Stock Up 200% Since April: What a New $4.8M Stake Signals Now

Dec -04

Source: fool.com

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Delek US Holdings, Inc. $DK Shares Sold by Fisher Asset Management LLC

Dec -03

Source: defenseworld.net

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3 Oil Pipeline MLP Stocks to Watch Despite Industry Headwinds

Nov -11

Source: zacks.com

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Delek US Q3 Earnings & Revenues Beat Estimates, Adjusted EBITDA Up Y/Y

Nov -11

Source: zacks.com

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Delek US Holdings Analysts Boost Their Forecasts After Q3 Results

Nov -10

Source: benzinga.com

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Delek US Holdings, Inc. (DK) Q3 2025 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

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Delek US Holdings (DK) Q3 Earnings: How Key Metrics Compare to Wall Street Estimates

Nov -07

Source: zacks.com

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Delek US Holdings Reports Third Quarter 2025 Results

Nov -07

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.90%)

6. Segments

Refining

Expected Growth: 3.83%

Delek US Holdings' refining segment growth of 3.83% is driven by increased throughput volumes, improved refining margins, and strategic acquisitions. Additionally, the company's focus on cost optimization, operational efficiency, and favorable crude oil pricing contribute to its growth momentum.

Retail

Expected Growth: 4.83%

Delek US Holdings' Retail segment growth of 4.83% is driven by increased fuel sales volume, higher merchandise sales, and strategic store remodels. Additionally, the company's focus on convenience store offerings, foodservice, and loyalty programs has contributed to the growth. Furthermore, the acquisition of new stores and expansion into new markets have also supported the segment's growth.

Logistics

Expected Growth: 4.65%

Delek US Holdings' Logistics segment growth of 4.65% is driven by increased demand for refined products, strategic acquisitions, and expansion of its pipeline network. Additionally, the company's focus on cost savings initiatives and operational efficiencies have contributed to the growth. Furthermore, the growth in crude oil transportation and storage services has also positively impacted the segment's performance.

7. Detailed Products

Refined Products

Delek US Holdings, Inc. refines crude oil into various petroleum products such as gasoline, diesel fuel, jet fuel, and other petroleum-based products.

Crude Oil

Delek US Holdings, Inc. purchases and sells crude oil to refineries and other customers.

Intermediate Chemicals

Delek US Holdings, Inc. produces and sells intermediate chemicals such as toluene, xylene, and other petrochemicals.

Lubricants

Delek US Holdings, Inc. produces and sells lubricants such as motor oils, transmission fluids, and other lubricating products.

Convenience Store Merchandise

Delek US Holdings, Inc. operates convenience stores that sell food, beverages, and other merchandise.

8. Delek US Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Delek US Holdings, Inc. operates in the energy industry, where substitutes are limited. However, the increasing adoption of electric vehicles and renewable energy sources poses a moderate threat to the company's operations.

Bargaining Power Of Customers

Delek US Holdings, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are essential to its customers, making it difficult for them to negotiate prices.

Bargaining Power Of Suppliers

Delek US Holdings, Inc. relies on a few large suppliers for its raw materials, giving them some bargaining power. However, the company's size and scale of operations mitigate this risk to some extent.

Threat Of New Entrants

The energy industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This makes it difficult for new entrants to challenge Delek US Holdings, Inc.'s market position.

Intensity Of Rivalry

The energy industry is highly competitive, with many established players competing for market share. Delek US Holdings, Inc. faces intense competition from other refining and marketing companies, which can lead to pricing pressures and reduced margins.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 75.84%
Debt Cost 10.69%
Equity Weight 24.16%
Equity Cost 10.69%
WACC 10.69%
Leverage 313.96%

11. Quality Control: Delek US Holdings, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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A-Score: 7.3/10

Value: 8.4

Growth: 5.8

Quality: 5.2

Yield: 10.0

Momentum: 5.5

Volatility: 9.0

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Quality: 3.7

Yield: 5.0

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Delek US Holdings

A-Score: 5.3/10

Value: 8.0

Growth: 2.0

Quality: 3.2

Yield: 6.0

Momentum: 9.5

Volatility: 3.0

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Value: 5.8

Growth: 5.4

Quality: 2.1

Yield: 0.0

Momentum: 9.5

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

37.65$

Current Price

37.65$

Potential

-0.00%

Expected Cash-Flows