In its 2024 third-quarter earnings call Nov. 6, Delek US Holdings reported a net loss of $76.8 million, adjusted net loss of $93 million and an adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $70.6 million.
EDITDA in the same period in 2023 was $345.1 million.
Avigal Soreq, president and CEO of Delek US, Brentwood, Tennessee, said the company is excited about “significant progress” it has made on operational improvements, cost reductions and its “Sum of the Parts” initiative.
“After closing the transactions we announced with our last earnings call, we are currently focused on maximizing the value of the third-party businesses at Delek Logistics as a next step in our 'Sum of the Parts' efforts,” he said. “We are also working hard to increase the overall profitability and free cash flow generation power of our company through our Enterprise Optimization Plan (EOP).”
Delek US Holdings is No. 31 on CSP’s 2024 Top 202 ranking of U.S. convenience-store chains by store count.
During the third quarter, Delek successfully closed previously announced transactions to further its Sum of the Parts strategy:
- Sold retail assets for proceeds of $390 million.
- DK and Delek Logistics (DKL) executed the intercompany amendments and extensions.
- Completed the dropdown of Wink to Webster pipeline into DKL.
- DKL closed the acquisition of H2O Midstream, further adding to its third-party cash. H20 is an energy midstream company focused exclusively on water.
In addition, Delek US Holdings announced the EOP expected to increase overall profitability by at least $100 million.
"Looking ahead, we will continue to execute on our priorities of running safe and reliable operations, and making further progress on midstream deconsolidation, our EOP efforts and delivering shareholder value while maintaining our financial strength and flexibility,” Soreq said.
The refining segment's adjusted EBITDA was $10.2 million in the third-quarter 2024 compared with $296.1 million in the same quarter last year, the company said.
On Sept. 30, Delek US closed the previously announced transaction to sell 100% of the equity interests in four of Delek US’ wholly owned subsidiaries that own and operate 249 retail fuel and convenience stores under the Delek US Retail brand to a subsidiary of Fomento Economico Mexicano, S.A.B. de C.V. (FEMSA). Net cash proceeds before taxes related to this transaction were about $390.2 million. The retail transaction resulted in a gain on sale of the retail stores, before income tax, of $98.4 million.
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.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.