Delek US Holdings navigated regional demand headwinds early in the first quarter of 2024 and delivered solid operational performance, President and CEO Avigal Soreq said. The convenience-store chain and refiner released its first-quarter results Tuesday.
Delek US, based in Brentwood, Tennessee, reported a net income loss of $32.6 million, adjusted net loss of $26.2 million and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $158.7 million.
The quarter was in line with Delek’s guidance, Soreq said.
"On the strategic front, we made significant headway," Soreq said. "Delek Logistics improved its financial strength and flexibility with the debt and equity offerings executed during the quarter. The $800 million of liquidity and additional volume activity in the units enhances our opportunities with [Delek Logistics Partners LP]. In addition, we initiated a process to unlock the value inherent in the retail business. We are well positioned to execute the sum of the parts initiative and realize value for our stakeholders."
"Looking ahead, we will continue to execute on our priorities of running safe and reliable operations, enhancing our portfolio with strategic growth projects and delivering shareholder value while maintaining our financial strength and flexibility,” Soreq said.
- Delek US Holdings is No. 31 on CSP’s 2024 Top 40 Update to the 2023 Top 202 ranking of U.S. c-store chains by store count. Watch for the full 2024 Top 202 ranking in the June issue of CSP magazine and in CSP Daily News.
Highlights of the company’s segments included:
- Refining: Adjusted EBITDA was $106.1 million, compared with $230.2 million in the same quarter last year. The decrease over 2023 is primarily due to lower refining crack spreads, partially offset by higher sales volume, Delek US said.
- Logistics: Adjusted EBITDA was $99.7 million compared with $91.4 million in the prior year quarter, driven by strong contributions from Delaware Gathering systems in addition to annual rate increases, the company said.
- Retail: Adjusted EBITDA was $6.5 million compared with $6.4 million in the prior-year period.
- Corporate and other activity: Adjusted EBITDA from corporate, other and eliminations was a loss of $53.6 million in the first quarter, compared to a loss of $43.2 million in the prior-year period. The increased losses were driven by higher employee-related expenses, Delek US said.
Delek US Holdings Inc. is a diversified downstream energy company with assets in petroleum refining, logistics, pipelines, renewable fuels and convenience-store retailing. The convenience-store retail segment operates approximately 250 convenience stores in West Texas and New Mexico under the DK and 7-Eleven brands.
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