Delek US Holdings reported a net loss of $172.7 million, or $2.78 per share, in its 2025 first quarter that ended March 31, the Brentwood, Tennessee-based company said in its earnings call Wednesday.
The company also reported an adjusted net loss of $144.4 million, or $2.32 per share, and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $26.5 million.
- Delek US Holdings is No. 31 on CSP’s 2024 Top 202 ranking of U.S. convenience-store chains by store count.
“We showed incremental progress in achieving our sum of the parts goals and improving the overall profitability of the company despite continued challenging market conditions,” said Avigal Soreq, president and CEO of Delek US. “We are excited about the progress we are making with our EOP (enterprise optimization plan) and expect to deliver cash flow improvements of at least approximately $120 million by the second half of 2025.
“The new intercompany agreements further increase the economic separation with DKL (DK Logistics) and unlocks in excess of $250 million of liquidity,” he continued. “They are also an incremental step in our top strategic goal to complete midstream deconsolidation. On a pro-forma basis, approximately 80% of DKL's cash flows will be coming from third-party sources after these agreements.”
Delek Logistics Partners LP is a publicly traded master limited partnership formed by Delek US Holdings in 2012 to own, operate, acquire and construct crude oil and refined products logistics and marketing assets, according to the Delek Logistics’ website.
Soreq added, “Looking ahead, we will continue to execute on our priorities of running safe and reliable operations, making further progress on midstream deconsolidation, improving cash flow generation by at least $120 million and delivering shareholder value while maintaining our financial strength and flexibility.”
Last year, Monterrey, Mexico-based Fomento Económico Mexicano, S.A.B. de C.V. (FEMSA) entered into definitive agreements with Delek US Holdings Inc. to acquire Delek’s retail operations, consisting of 249 convenience stores located mainly in Texas, for a total amount of $385 million on a cash-free, debt-free basis, including the purchase of inventories. As part of its strategic growth, FEMSA earlier this year began rebranding the convenience stores it acquired from Delek US Holdings Inc. last fall to OXXO, CSP reported in February.
As of March 31, Delek US had a cash balance of $623.8 million and total consolidated long-term debt of $3,035.3 million, resulting in net debt of $2,411.5 million.
In addition, during the first quarter:
DK continued to advance its key objectives of sum of the parts, midstream deconsolidation and enterprise optimization plan (EOP). The EOP will deliver at least $120 million in run-rate cash ow improvement in the second half of 2025.
DKL closed the acquisition of Gravity Water Midstream on Jan. 2, resulting in the reduction of DK's ownership in DKL to 63.4%.
Brentwood, Tennessee-based Delek US Holdings is a diversified downstream energy company with assets in petroleum refining, logistics, pipelines and renewable fuels. The refining assets consist primarily of refineries operated in Tyler and Big Spring, Texas; El Dorado, Arkansas, and Krotz Springs, Louisiana, with a combined crude throughput capacity of 302,000 barrels per day. The logistics operations include Delek Logistics Partners LP, a growth-oriented master limited partnership (MLP) focused on owning and operating midstream energy infrastructure assets. Delek US Holdings and its subsidiaries owned approximately 72.5% (including the general partner interest) of Delek Logistics Partners.
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