DK

BRENTWOOD, Tenn., October 23, 2026--(BUSINESS WIRE)--Delek Logistics Partners, LP (NYSE: DKL) ("Delek Logistics") today declared its quarterly cash distribution for the third quarter 2026 of $1.14 per common limited partner unit, or $4.56 per common limited partner unit on an annualized basis. The third quarter 2026 cash distribution is payable on November 10, 2026, to unitholders of record on November 3, 2026. About Delek Logistics Partners, LP Delek Logistics is a midstream energy master limited partnership headquartered in Brentwood, Tennessee. Through its owned assets and joint ventures located primarily in and around the Permian Basin, the Delaware Basin and other select areas in the Gulf Coast region, Delek Logistics provides gathering, pipeline, transportation, and other services for its customers in crude oil, intermediates, refined products, natural gas, storage, wholesale marketing, terminalling, water disposal, and recycling. Delek US Holdings, Inc. (NYSE: DK) owns the general partner interest as well as a majority limited partner interest in Delek Logistics and is also a significant customer. Safe Harbor Provisions Regarding Forward-Looking Statements This press release contains forward-looking statements that are based upon current expectations and involve a number of risks and uncertainties. Statements concerning future distributions, including the amounts and timing thereof, current estimates, expectations or projections about future distributions, future financial flexibility, results, performance, prospects, opportunities, plans, actions and events and other statements, concerns, or matters that are not historical facts are "forward-looking statements," within the meaning of federal securities laws. Forward-looking statements should not be read as a guarantee of future performance or results and may not be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time and/or management's good faith belief with respect to future events, and investors are cautioned that risks described in Delek Logistics' filings with the United States Securities and Exchange Commission, among others, could cause actual performance or results to differ materially from those expressed in the statements. There can be no assurance that actual results will not differ from those expected by management or described in forward-looking statements. Delek Logistics undertakes no obligation to update or revise such forward-looking statements to reflect events or circumstances that occur, or which Delek Logistics becomes aware of, after the date hereof. Tax Considerations This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b)(4) and (d). Please note that 100 percent of Delek Logistics Partners, LP's distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, all of Delek Logistics Partners, LP's distributions to foreign investors are subject to federal income tax withholding at the highest applicable effective tax rate for individuals or corporations, as applicable. Nominees, and not Delek Logistics Partners, LP, are treated as the withholding agents responsible for withholding on the distributions received by them on behalf of foreign investors. View source version on businesswire.com: https://www.businesswire.com/news/home/20261023013297/en/ Contacts Investor Relations and Media/Public Affairs Contact: [email protected]

U.S. stocks enter the final quarter with a mildly bullish setup, helped by favorable seasonality, resilient corporate earnings and continued enthusiasm around artificial intelligence spending. The S&P 500 remains close to record territory, and expectations for solid profit growth could keep investor sentiment constructive. Still, the path higher may not be smooth. Elevated Treasury yields are pressuring valuations and raising borrowing costs, while investors are also watching Federal Reserve policy and geopolitical developments. Even so, recent market action suggests that equities are holding up well despite these headwinds. With the S&P 500 still within reach of 8,000 by year-end 2026, the broader tone remains cautiously positive. In this environment, focusing on stocks already outperforming the market through relative price strength can be a sensible strategy for investors seeking areas where momentum remains firm. At this stage, investors would be wise to consider companies such as PBF Energy PBF, BP plc BP, Delek US Holdings DK, Cenovus Energy CVE and Cracker Barrel Old Country Store CBRL. Earnings growth and valuation multiples are indeed important for investors to determine a stock's ability to offer considerable returns. However, these are also essential for determining whether a stock's price performance is better than its peers or the industry average. If a stock's performance is lacking that of the broader groups, despite impressive earnings growth or valuation multiples, then something must be wrong. It's always advisable to stay away from these stocks and bet on those that are outperforming their respective industry or benchmark. This is because betting on a winner always proves to be lucrative. Then again, it is imperative that you determine whether or not an investment has relevant upside potential when considering stocks with significant relative price strength. Stocks delivering better than the S&P 500 for 1 to 3 months, at least, and having solid fundamentals, indicate room for growth and are the best way to go about this strategy. Finally, it is crucial to find out whether analysts are optimistic about the upcoming earnings of these companies. In order to do this, we have added positive estimate revisions for the current quarter's (Q1) earnings to our screen. When a stock undergoes an upward revision, it leads to additional price gains. Relative % Price change – 12 weeks greater than 0 Relative % Price change – 4 weeks greater than 0 Relative % Price change – 1 week greater than 0 (We have considered those stocks that have been outperforming the S&P 500 over the last 12 weeks, four weeks and one week.) % Change (Q1) Est. over 4 Weeks greater than 0: Positive current-quarter estimate revisions over the last four weeks. Zacks Rank equal to 1: Only Zacks Rank #1 (Strong Buy) stocks — that have returned more than 26% annually over the last 26 years and surpassed the S&P 500 in 23 of the last 26 years — can get through. You can see the complete list of today's Zacks #1 Rank stocks here. Current Price greater than or equal to $5 and Average 20-day Volume greater than or equal to 50,000: A minimum price of $5 is a good standard to screen low-priced stocks, while a high trading volume would imply adequate liquidity. VGM Score less than or equal to B: Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2 (Buy), offer the best upside potential. Here are five of the 10 stocks that made it through the screen: PBF Energy: PBF Energy is a leading independent refiner of crude oil based in Parsippany, NJ. The company's expected EPS growth rate for three to five years is currently 55.2%, which compares favorably with the industry's growth rate of 32.7%. PBF Energy has a VGM Score of A. Over the past 60 days, the Zacks Consensus Estimate for PBF Energy's 2026 earnings has moved up 44.5%. The Zacks Consensus Estimate for 2026 earnings indicates 648.7% growth. PBF shares have gained 173.3% in a year. BP: It is an integrated oil and gas company with upstream, downstream and trading operations. Its portfolio spans global production, refining, customer businesses and low-carbon activities, supported by strong technical and commercial capabilities. The Zacks Consensus Estimate for BP's 2026 earnings indicates 152.8% growth. BP has a VGM Score of A. BP beat the Zacks Consensus Estimate for earnings in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 17.9%, on average. BP shares have gained 31.4% in a year. Delek US Holdings: Brentwood, TN-based Delek US Holdings is an independent refiner, transporter and marketer of petroleum products. The Zacks Consensus Estimate for 2026 earnings of DK indicates 143.3% growth. The company has a VGM Score of A. DK has a trailing four-quarter earnings surprise of roughly 243%, on average. Over the past 60 days, the Zacks Consensus Estimate for the downstream operator's 2026 earnings has moved up from $8.32 per share to $16.06. Delek's shares have gone up 130.2% in a year. Cenovus Energy: It is an integrated energy company with oil sands, conventional and offshore production, supported by refining assets in Canada and the United States. Its diversified operations combine long-life resources, downstream capacity and growth investments. CVE has a market capitalization of $59 billion. It has a VGM Score of A. Notably, over the past 60 days, the Zacks Consensus Estimate for Cenovus Energy's 2026 earnings has gone up 11.6%. The Zacks Consensus Estimate for 2026 earnings of CVE indicates 131.8% growth. Cenovus Energy shares have gained 88.9% in a year. Cracker Barrel Old Country Store: It owns and operates full-service restaurants that combine a restaurant and a retail store in the same unit. Cracker Barrel's expected EPS growth rate for three to five years is currently 27%, which compares favorably with the industry's growth rate of 14.7%. CBRL has a VGM Score of A. Over the past 60 days, the Zacks Consensus Estimate for Cracker Barrel's fiscal 2027 earnings has moved up 21.9%. The Zacks Consensus Estimate for fiscal 2027 earnings indicates 81.3% growth. CBRL shares have gained 17% in a year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BP p.l.c. (BP) : Free Stock Analysis Report Cracker Barrel Old Country Store, Inc. (CBRL) : Free Stock Analysis Report Delek US Holdings, Inc. (DK) : Free Stock Analysis Report Cenovus Energy Inc (CVE) : Free Stock Analysis Report PBF Energy Inc. (PBF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Delek US Holdings has posted very strong share price gains in recent years, which puts a spotlight on whether that move is fully backed by its earnings power. With the stock now drawing more attention, the question is how much of its current US$78.12 price can be explained by the profits the business is generating today. Over the past 5 years the stock has returned about 431.6%, which makes it important to ask whether that performance is in line with what the underlying earnings can reasonably support. The business model is tightly tied to refining and energy markets, so the quality, stability and cyclicality of Delek US Holdings' profits can have a direct influence on what investors are willing to pay for each dollar of earnings. There is a second opinion on Delek US Holdings worth weighing. See what analysts think Delek US Holdings's shares could be worth. The issue now is whether the current share price is justified by Delek US Holdings' earnings when set against a benchmark such as Fair Ratio. If you want to stress test whether Delek US Holdings' earnings driven valuation question shows up elsewhere, compare it with a broader set of 33 high quality undervalued stocks. The P/E ratio works reasonably well for Delek US Holdings because earnings are a key focus for a refining and fuel marketing business. The current P/E of about 21.2x sits below the peer group average of roughly 25.5x, yet well above the broader Oil and Gas industry level of around 13.5x. That mix indicates that the market is giving the stock a richer tag than the sector overall while still pricing it below closer comparables. The Fair Ratio model, which looks at factors such as growth profile, margins, risk and size, points to a materially lower P/E than where Delek US Holdings trades today. On this framework the shares screen as overvalued, because the present 21.2x earnings multiple implies a stronger earnings story than the model suggests is justified. For anyone considering the stock, the key question is whether Delek US Holdings can sustain or improve its profit base enough to support that premium multiple over time. Explore the numbers behind Delek US Holdings's P/E valuation. Narratives for Delek US Holdings bridge the gap between the current P/E debate and the assumptions that would need to hold on growth, margins and earnings for the stock to be worth materially more or less than today. Each scenario connects its valuation view to a clear stance on how Delek US Holdings' profitability and risk profile might evolve. You can track this over time on Simply Wall St's Community page as new information arrives. Community views on Delek US Holdings are split between those who see more upside in the current setup and those who think expectations already look full. Bull case: 6% undervalued Discover why this Narrative puts Delek US Holdings at 6% undervalued. Bear case: roughly fairly valued Explore why this Narrative puts Delek US Holdings at roughly fairly valued. Valuation only tells part of the story for Delek US Holdings, because recent research has also flagged specific risks that could change how you think about the stock. Take a closer look at 3 warning signs (2 major) before settling on a valuation. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include DK. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Delek US Holdings, Inc. DK reported second-quarter 2026 adjusted earnings of $5.48 per share, surpassing the Zacks Consensus Estimate of $2.21 by 148%. The bottom line also improved from the year-ago adjusted loss of 56 cents, supported by stronger year-over-year performance across both segments. Brentwood, TN-based oil and gas refining and marketing company’s net revenues increased 47.8% year over year to $4.1 billion, beating the Zacks Consensus Estimate of $3 billion by 34.8%. This was due to better-than-expected performance from the refining and logistics segments, which exceeded our consensus marks by 37.24% and 29.57%, respectively. Delek US Holdings, Inc. price-consensus-eps-surprise-chart | Delek US Holdings, Inc. Quote The strong quarterly performance was primarily supported by higher refining margins amid increased crack spreads. Total refining throughput averaged 315,555 barrels per day. Adjusted EBITDA increased to $638.7 million from $177.9 million a year earlier. Moreover, the reported figure beat our estimate of $72 million. Refining segment net revenues, excluding intercompany fees and revenues, increased to $3.9 billion from $2.6 billion in the prior-year quarter. The segment reported adjusted EBITDA of $566.2 million compared with $114.8 million a year ago. Moreover, the reported figure beat our estimate of $287.8 million. The significant year-over-year improvement was driven by stronger refining margins, supported by higher crack spreads. Delek US’ benchmark crack spreads increased an average of 136% from the prior-year level. Total refining production margin rose to $569.6 million from $231.1 million. Production margin per throughput barrel increased to $19.84 from $8.03 a year earlier. Adjusted refining margin totaled $569.1 million compared with $256.8 million in the year-ago quarter. Crude utilization was 100.2% compared with 100.9% a year ago. Management highlighted improved performance at the Big Spring refinery following the first-quarter turnaround. The company also has no planned refinery turnarounds for the remainder of 2026, positioning its refining system to capture the current margin environment. This unit represents Delek US’ majority interest in Delek Logistics Partners DKL, a publicly traded master limited partnership that owns, operates, develops and acquires pipelines and other midstream assets. The logistics segment generated net revenues, excluding intercompany fees and revenues, of $179.9 million compared with $132.3 million in the prior-year period. Adjusted EBITDA increased 12.6% year over year to a record $143.5 million. However, the reported figure missed our estimate of $149.4 million. This improvement reflected higher margins in the wholesale business and increased interest income related to sales-type leases. Delaware Gathering natural gas gathering and processing volumes rose to 80,715 Mcf per day from 60,940 Mcf, while crude gathering volumes increased to 157,156 barrels per day from 137,167 barrels. Total operating costs and expenses increased 35.3% year over year to $3.8 billion. Operating expenses, excluding depreciation and amortization, were $220.1 million compared with $209.8 million a year earlier. General and administrative expenses declined to $56.7 million from $76.6 million. Delek US recorded restructuring costs of $10.9 million during the quarter. Cash provided by operating activities was $262.9 million in the second quarter compared with $51.4 million a year ago. The quarter included $137.9 million of unfavorable working-capital changes. Investing activities used $176.2 million, while financing activities resulted in an $82.2 million outflow. As of June 30, 2026, the company had cash and cash equivalents of $628.6 million and consolidated long-term debt of $3.2 billion, with a debt-to-total capital of about 88.3%. Excluding Delek Logistics, Delek US had $614.9 million in cash and $817 million of long-term debt. During the quarter, DK repurchased $20 million of common stock and paid $15.6 million in dividends. For the third quarter of 2026, Delek US expects throughput of 72,000-77,000 barrels per day at Tyler, 78,000-83,000 barrels at El Dorado, 68,000-73,000 barrels at Big Spring and 78,000-83,000 barrels at Krotz Springs. The implied system throughput target is 296,000-316,000 barrels per day. On the cost side, this Zacks Rank #2 (Buy) company expects operating expenses of $220-$230 million, general and administrative expenses of $50-$55 million, depreciation and amortization of $110-$120 million and net interest expense of $75-$85 million for the third quarter. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Delek US’ Enterprise Optimization Plan continues to focus on improving free cash flow. The company expects the program to generate at least $220 million of annual free cash flow improvement, with the majority coming from margin enhancement across refining, logistics and wholesale operations. Management estimated that the program contributed approximately $60 million to second-quarter results. Delek Logistics also reaffirmed the 2026 adjusted EBITDA guidance of $520-$560 million as it continues advancing the midstream growth and economic separation initiatives. While we have discussed DK’s second-quarter results in detail, let us take a look at two other key reports in this space. Houston, TX-based oil and gas equipment and services provider Halliburton HAL posted second-quarter 2026 adjusted net income per share of 55 cents, marginally beating the Zacks Consensus Estimate of 54 cents. The outperformance was backed by year-over-year revenue growth. However, the bottom line was flat compared with the prior-year level. As of June 30, 2026, Halliburton had approximately $2 billion in cash and cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization of 39%. Fort Worth, TX-based oil and gas exploration and production company Range Resources Corporation RRC reported second-quarter 2026 adjusted earnings of 79 cents per share, up 19.7% from 66 cents a year ago. Range Resources’ bottom line topped the Zacks Consensus Estimate of 56 cents by 41.1%. Strong quarterly results are driven by higher production and improved price realization. The company’s net debt was $880.8 million at June 30, 2026, down 28% from $1.22 billion at year-end 2025. Range Resources repurchased $78 million of shares and paid $24 million in dividends during the quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Delek US Holdings, Inc. (DK) : Free Stock Analysis Report Halliburton Company (HAL) : Free Stock Analysis Report Range Resources Corporation (RRC) : Free Stock Analysis Report Delek Logistics Partners, L.P. (DKL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Delek US Holdings, Inc.? Here are five stocks we like better. Strong Q2 results: Delek US reported approximately $170 million in net income and $639 million in adjusted EBITDA, driven by stronger refining margins, higher throughput and record logistics performance. Refining and logistics outlook remains favorable: The Big Spring turnaround improved reliability and product yields, while Delek Logistics posted record adjusted EBITDA of about $144 million and reaffirmed its 2026 guidance of $520 million to $560 million. Debt reduction and capital allocation continued: Delek reduced its term loan by $70 million and standalone net debt by $72 million during the quarter, while paying $16 million in dividends and repurchasing approximately $20 million of shares. Can DICK'S Turn Foot Locker Into a Winner? Delek US (NYSE:DK) reported second-quarter 2026 net income of approximately $170 million, or $2.71 per share, as stronger refining margins, improved throughput and record logistics results supported performance. On an adjusted basis, the company posted net income of about $344 million, or $5.48 per share, and adjusted EBITDA of approximately $639 million. Excluding a 50% renewable volume obligation, or RVO, adjustment, adjusted EBITDA was about $490 million and adjusted earnings were $3.64 per share, according to Executive Vice President and CFO Robert Wright. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth 3 Refiners Benefiting From Oil Volatility and Tight Fuel Supply President and CEO Avigal Soreq said the company navigated volatility in crude and product markets during the quarter while continuing to focus on reliability, cash-flow generation and disciplined capital allocation. Wright said quarter-over-quarter EBITDA improvement was led by stronger refining margins and higher throughput following the completion of the Big Spring refinery turnaround. Soreq said Big Spring has performed in line with expectations since the turnaround, with improved reliability, greater crude-slate flexibility, better product yields and increased octane and blending capability. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Dick’s Sporting Goods Isn’t Done Winning Yet Delek has no planned refinery turnarounds for the remainder of 2026, Soreq said, positioning its system to participate in favorable market conditions. Management pointed to steep backwardation, shifting crude differentials and tight transportation-fuel markets as important factors in the refining environment. Soreq said the company believes access to crude supplies, high distillate yields and the ability to respond quickly to market changes are important advantages. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High During the question-and-answer session, Soreq said global refined-product markets remain affected by capacity outages and that normalization could take several quarters after current market disruptions end. He also cited Delek’s access to Gulf Coast and Midcontinent markets, domestic crude availability and high distillate and jet fuel yields as favorable characteristics. On refining margin capture, Soreq said a decline in market backwardation should benefit realized crack spreads. He described the current forward curve as relatively flat compared with the significantly steeper backwardation seen during the second quarter. For the third quarter, Delek guided to total refining-system throughput of 296,000 to 316,000 barrels per day. By refinery, the company expects: Tyler throughput of 72,000 to 77,000 barrels per day; El Dorado throughput of 78,000 to 83,000 barrels per day; Big Spring throughput of 68,000 to 73,000 barrels per day; and Krotz Springs throughput of 78,000 to 83,000 barrels per day. The company also forecast third-quarter operating expenses of $220 million to $230 million, general and administrative expenses of $50 million to $55 million, and depreciation and amortization expense of $110 million to $120 million. Soreq said Delek’s Enterprise Optimization Plan, or EOP, contributed an estimated $60 million to second-quarter profit and loss. The program is intended to increase annual cash flow by at least $220 million on a run-rate basis. Management said it is pursuing another phase of optimization initiatives, though it did not provide details. Soreq described EOP as an ongoing effort across the organization rather than a one-time project. Mohit Bhardwaj, Delek’s executive vice president of New Energy, Strategy and Investor Relations, said the company’s confidence in its mid-cycle free-cash-flow profile has increased. Delek Logistics Partners delivered approximately $144 million in adjusted EBITDA, its best quarterly result in company history, Wright said. Performance was supported by momentum across its Permian Basin crude, natural gas and water businesses. Delek Logistics reaffirmed its 2026 EBITDA guidance of $520 million to $560 million. Soreq said the partnership expects third-party EBITDA to exceed 80% on a pro forma basis during 2026, a metric that management views as central to its strategy to further separate the logistics business economically from Delek US. Mark Hobbs, executive vice president of Delek Logistics Partners, said the Libby I and Libby II gas plants are operating well and that the company is nearing completion of a sour-gas gathering and compression system. The facilities and associated acid-gas injection well are intended to provide a sour-gas solution in the Northern Delaware Basin and support increased gas volumes through the remainder of the year. Cash flow from operations totaled $263 million in the second quarter, including a $138 million net working-capital outflow. Investing activities used $176 million, including $61 million of capital purchases at Delek Logistics, primarily for growth projects, and $55 million of refining capital purchases. Financing activities represented an $82 million outflow. Delek reduced its term loan from $920 million to $850 million through a refinancing and paydown, while standalone net debt, excluding Delek Logistics, declined by $72 million during the quarter, Wright said. The company paid approximately $16 million in dividends and repurchased about $20 million of shares during the quarter. Soreq said Delek intends to maintain its dividend through the cycle and balance additional cash deployment between debt reduction and share repurchases. Management also discussed small refinery exemptions under the Renewable Fuel Standard. Soreq said elevated RVO costs have created a burden for qualifying small refineries and that the company expects the Environmental Protection Agency to continue providing relief for 2025 and beyond. Bhardwaj said Delek’s recently granted Krotz Springs exemption reflected findings by the EPA and Department of Energy that the refinery faced disproportionate economic harm from Renewable Fuel Standard obligations. He said the company is encouraged by the strength of its 2025 petitions but did not provide timing or financial guidance for potential awards. Management emphasized that any RIN-related proceeds would represent the return of costs previously incurred to remain in compliance, rather than new cash provided by another party. Delek said it would continue its existing capital-allocation approach and does not intend to hold excess cash solely for the purpose of maintaining a larger balance-sheet cash position. Delek US Holdings, Inc (NYSE: DK) is an independent downstream energy company engaged in the refining, logistics, and marketing of petroleum products. Headquartered in Brentwood, Tennessee, the company operates a network of inland refineries, storage terminals and pipelines, and convenience store locations. Delek US focuses on converting crude oil into a variety of finished products, including gasoline, diesel, jet fuel, asphalt and renewable fuels, serving wholesale and retail customers across the United States. In its refining segment, Delek US owns and operates four inland refineries located in Texas and Arkansas. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Delek US Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Delek US Holdings, Inc. DK used its second-quarter 2026 call to emphasize stronger cash generation, improved refinery reliability and a disciplined response to volatile crude and product markets. Adjusted earnings of $5.48 per share topped the Zacks Consensus Estimate of $2.21, while revenue of $4.09 billion exceeded the $3.03 billion estimate. President and CEO Avigal Soreq emphasized repeatable execution, enterprise optimization and value separation at Delek Logistics. Delek US Holdings, Inc. price-consensus-eps-surprise-chart | Delek US Holdings, Inc. Quote CEO Avigal Soreq said all four refineries operated well. Big Spring has met expectations after its turnaround, with better reliability, crude-slate flexibility, product yields, octane and blending capabilities. CEO Avigal Soreq said crude access, high distillate output and quick responses to market shifts remain central advantages. With no planned turnarounds for the rest of 2026, the system is positioned to capture market strength. EVP Robert Wright guided third-quarter system throughput to 296,000-316,000 barrels per day. Operating expenses are expected at $220-$230 million, G&A at $50-$55 million and depreciation and amortization at $110-$120 million. CEO Avigal Soreq said the enterprise optimization plan contributed about $60 million to second-quarter results. The program targets at least $220 million of annual run-rate cash-flow improvement. EVP of Strategy, Business Development and Investor Relations Mohit Bhardwaj said confidence is increasing in mid-cycle free cash flow of $650-$700 million, including Delek Logistics distributions. A Goldman Sachs analyst pressed for the next upside sources. CEO Avigal Soreq described optimization as an organization-wide discipline and cited further opportunities in gross margin, product mix, sales locations and other operating areas. Delek Logistics generated second-quarter adjusted EBITDA of $143.5 million and reaffirmed 2026 guidance of $520-$560 million. Gathering and processing adjusted EBITDA rose to $104.1 million from $78 million a year earlier. CEO Avigal Soreq said third-party EBITDA should exceed 80% on a pro forma basis in 2026. He called that economic separation a cornerstone of the sum-of-the-parts and deconsolidation work. CFO Mark Hobbs said both Libby plants are running well, the acid-gas injection well is complete and sour-gas gathering and compression are nearing completion. He expects a step change in gas volumes through year-end. A Wolfe Research analyst asked about exemption timing and the reversed Krotz Springs denial. EVP Mohit Bhardwaj said the decision reinforced confidence in Delek’s 2025 petitions. Answering a TPH Research analyst, EVP Mohit Bhardwaj said Delek’s total 2025 renewable volume obligation was $468.4 million, based on a RIN price of $1 per gallon. EVP Robert Wright emphasized tax minimization as a key strategy.EVP Mohit Bhardwaj framed awarded RINs as a return of credits already purchased for compliance, not a new cash grant. CEO Avigal Soreq said proceeds would follow the existing capital-allocation framework. CEO Avigal Soreq said Delek paid about $16 million in dividends and repurchased $20 million of shares during the quarter. He added that the company has bought back about 10% of its shares since the beginning of 2025. Answering Goldman Sachs, CEO Avigal Soreq reaffirmed a through-cycle dividend and a balance between debt reduction and repurchases. He said Delek does not plan to retain excess cash without a defined purpose. EVP Robert Wright said stand-alone net debt declined by $72 million after the term loan was refinanced and reduced from $920 million to $850 million. CEO Avigal Soreq said acquisitions must be strategic and accretive to leverage and coverage. CEO Avigal Soreq’s tone was confident on refinery reliability, enterprise optimization and logistics growth, while measured on market volatility and the timing and value of regulatory relief. The priorities leaving the call were consistent: safe operations, higher free cash flow, economic separation of Delek Logistics and disciplined capital returns. DK carries a Zacks Rank #1 (Strong Buy), indicating a favorable earnings-estimate revision profile under the Zacks framework. Its Value Score of A, Growth Score of A and VGM Score of A reinforce broad style strength, while the Momentum Score of C is less favorable.You can see the complete list of today’s Zacks #1 Rank stocks here. The combination points to constructive near-term potential rather than a certain outcome. The Zacks Rank can change as analysts revise estimates following the just-reported results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Delek US Holdings, Inc. (DK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 11:00 a.m. ET Executive Vice President and Chief Financial Officer - Robert Wright President and Chief Executive Officer - Avigal Soreq Executive Vice President, New Energy, Strategy and Investor Relations - Mohit Bhardwaj Management Team Member - Mark Hobbs Operator: Hello, everyone. Thank you for joining us, and welcome to the Delek US Second Quarter 2026 Earnings Call. [Operator Instructions] I will now hand the conference over to Robert Wright, EVP and CFO. Robert, go ahead. Robert Wright: Good morning, and welcome to the Delek US Second Quarter Earnings Conference Call. Participants joining me on today's call will include Avigal Soreq, President and CEO; Mohit Bhardwaj, EVP, New Energy, Strategy and Investor Relations; as well as other members of our management team. Today's presentation materials can be found on the Investor Relations section of the Delek US website. Slide 2 contains our safe harbor statement regarding forward-looking information. As a reminder, this conference call will contain forward-looking information as defined under the federal securities laws, including statements regarding guidance and future business outlook. Any forward-looking statements made during today's call involve risks and uncertainties that may cause actual results to differ materially from today's comments. Factors that could cause actual results to differ are included in our SEC filings. The company assumes no obligation to update any forward-looking statements. I will now turn the call over to Avigal for opening remarks. Avigal? Avigal Soreq: Thank you, Robert. Good morning, and thank you for joining us today. I'm extremely pleased with our strong execution in the second quarter. The quarter further demonstrates our enhanced execution capabilities. First, we successfully navigated the volatility in crude and product markets caused by the event in the Middle East. Second, we made further progress in increasing our free cash flow profile and reducing our overall cost structure. This quarter reinforced the importance of discipline in maintaining safe and reliable operations and making thoughtful capital allocation decisions. This is especially important during periods of strong margins. We will continue to apply the same prudent approach across our business, capital deployment and corporate culture as we are creating sustainable long-term shareholder value. As I mentioned during the last earnings call, the events in the Middle East and East Europe has created many ripple effects in the markets. We continue to see steep liquidation, swing in crude differentials and shortage of transportation fuels. In the current environment, we continue to believe that access to crude, high distillate yield and, most importantly, the ability to respond quickly to changing in the market conditions are critical to maintaining operational flexibility and delivering strong performance. We plan to continue navigating this environment with measured approach by, first, mitigating risk; and second, capturing the opportunities offered by the market. Now I will cover some of our second quarter highlights and strategic initiatives in detail. Starting with refining. Our refining system operated well, demonstrated by all 4 refineries. Big Spring has been running to our expectations since its turnaround. Post turnaround, we are seeing improved reliability, higher crude slate flexibility, improvement in overall product yields and higher octane and blending capabilities. We are very pleased with this improvement and are looking at finding additional opportunities to further improve this important asset in our portfolio. With no planned turnarounds for the rest of the year, our refining system is well positioned to capture the strength in the market. Moving to EOP. Enterprise optimization plan continue to drive significant value. As a reminder, our enterprise optimization plan target to increase our cash flow by at least $220 million on an annual run rate basis. During the second quarter of 2026, we estimate approximately $60 million of EOP contribution to our P&L. We are currently working on further advancing EOP to create an additional meaningful step change to our free cash flow profile. We'll provide more details on this in the near future. Our Sum of the Parts initiative also continued to progress with raising strength of our midstream business. DKL today reaffirmed its 2026 EBITDA guidance of $520 million to $560 million. The tailwinds we have been seeing in DKL business continue to rise, and we are working hard to capture these opportunities. DKL is close to completing its comprehensive gathering, treatment, processing and acid gas injection solution. The sour gas solution will provide DKL the ability to fully capitalize on its growth opportunities in the Delaware Basin and maintain its best-in-class EBITDA growth and yield. In 2026, on a pro forma basis, we continue to expect DKL third-party EBITDA to exceed 80%. This level of economic separation is a cornerstone of our Sum of the Parts strategy and continue to bring us closer to our deconsolidation goal. DKL is on the right path, and we continue to work hard to write the next chapter in its growth story. As mentioned last quarter, we are pursuing a proactive strategy to manage our obligation under the RFS. The SRE provision in the RFS served the important purpose of mitigating the impact felt on small refineries from the RFS burden. RVO costs remain elevated and the absence of SREs created a significant burden on small refineries like us. We expect the EPA to continue to provide relief to small refineries for the year of 2025 and beyond. Finally, we believe that the current administration, Senate, Congress and EPA realize the importance of small refinery exemptions, not only for the refineries which qualify under the program but also for the local communities they serve. The final piece of our strategy is being shareholder-friendly and having a strong balance sheet. During the quarter, we paid approximately $16 million in dividend and $20 million in buybacks. Our strong balance sheet, improved reliability, EOP and confidence in our outlook continue to support disciplined approach to capital allocation through continued dividend and buybacks. We remain committed to a balanced and disciplined capital allocation strategy and look forward to continuing to reward our shareholders. In closing, thank you for our team for their hard work and dedication. I'm immensely proud of the progress Delek has made, and I look forward to building on the momentum for the remainder of the year and beyond. Now I will turn the call over to Robert, who will provide additional color on the quarter. Robert Wright: Thank you, Avigal. For the second quarter, Delek reported net income of approximately $170 million or $2.71 per share. On an adjusted basis, net income came in at approximately $344 million or $5.48 per share, with adjusted EBITDA of approximately $639 million. Turning to Slide 4, we provide the breakout of adjusted EBITDA and adjusted EPS for the quarter. When we exclude the 50% RVO adjustment, adjusted EBITDA was approximately $490 million and adjusted EPS was approximately $3.64 per share. Slide 5 walks through the bridge in adjusted EBITDA, excluding the 50% RVO adjustment from the first quarter to the second quarter. The breakdown shows that there were 3 main drivers for the increase in EBITDA. Quarter-over-quarter, performance was led by stronger refining margins, helped by our robust distillate yields, along with higher throughput following the successful completion of the turnaround at Big Spring. In Supply and Marketing, we saw a $60 million increase versus the prior quarter. This improvement was driven primarily by wholesale marketing, which contributed $25 million to the improved results, partially offset by a $3 million reduction in asphalt contribution with the remainder of the change coming from supply. Our Logistics segment posted its best quarterly results in our history, delivering approximately $144 million in adjusted EBITDA as momentum continued across all 3 of our Permian Basin offerings, crude, gas and water. Let's move to Slide 15 for a review of cash flow. Cash flow from operations was $263 million for the quarter. This reflects net income for the period adjusted for noncash items, along with $138 million net outflow from changes in working capital. Investing activities was a use of $176 million, reflecting our continued investment in growth. This includes second quarter capital purchases of $61 million at Delek Logistics, primarily for growth projects and $55 million of purchases in refining, along with a quarter-over-quarter reduction of capital accruals, primarily related to the payments on the final expenditures of the Big Spring turnaround, which we completed safely, on schedule and on budget. Financing activities was an outflow of $82 million, which reflects the paydown associated with the successful refinancing of our term loan from $920 million down to $850 million. It also includes approximately $16 million in dividend payments and approximately $22 million in DKL distribution payments to public unitholders. Slide 16 breaks out our net debt position between Delek and Delek Logistics. On a stand-alone basis, excluding Delek Logistics, Delek net debt declined by $72 million, driven primarily by the term loan paydown completed as part of the successful refinancing of that facility. Now turning to Slide 17 and our outlook for the third quarter. Our throughput guidance is as follows: Tyler, 72,000 to 77,000 barrels per day; El Dorado, 78,000 to 83,000 barrels per day; Big Spring, 68,000 to 73,000 barrels per day; and Krotz Springs, 78,000 to 83,000 barrels per day. Taken together, this implies a system throughput target of 296,000 to 316,000 barrels per day for the third quarter. In addition to the throughput guidance, for the third quarter of 2026, we expect operating expenses to be between $220 million and $230 million, G&A between $50 million and $55 million and D&A to be between $110 million and $120 million. Additionally, beginning this quarter, we will provide interest expense guidance at both the DKL and stand-alone DK levels. This added disclosure reflects our continued focus on economic separation and capital discipline and underscores the progress we have made on both fronts. We expect net interest expense between $75 million and $85 million, with DK contributing between $28 million and $33 million and DKL contributing between $47 million and $52 million. With that, we will now open the call for questions. Operator: [Operator Instructions] Your first question comes from the line of Doug Leggate with Wolfe Research. Unknown Analyst: This is Ayush Gupta on behalf of Doug Leggate at Wolfe Research. He sends his apologies for not making the call today. Congrats on a great quarter. I have a few questions, and I'll start off with the SREs. So can you offer any update on the current timing of 2025? And specifically, can you clarify if SREs are awarded, what are the restrictions on value? Can you sell 2025 credits at 2026 prices? And related, you recently were awarded Krotz Springs having previously been denied. Can you share the process that led to the change in decision and implications for what it might mean across the portfolio for 2026 going forward? Avigal Soreq: Yes. First of all, thank you for joining us, and please send our regards to Doug. So let's start with a bigger discussion about small refinery exemptions. First, small refinery exemption related to 2025, it's not a Delek situation. It's an industry, it's probably impact like, I would guess, around 40 refineries across the nation and probably impact half of the industry. So it's well beyond us. The issue of small refinery exemptions, and I want you to remember one line here is disproportionate economic harm. And the idea is to maintain high-paying jobs, local communities and affordable fuels. It supports the administration energy dominance, the administration understand it very well, Senate, Congress and EPA and they all understand that it need to be resolved in a timely manner that allow us to comply as needed. And Mohit, I'll let you chime in to give more color around this. Mohit Bhardwaj: Yes. Thanks, Avigal, and thanks, Ayush, for joining the call. Avigal is absolutely right. The SRE issue is about disproportionate economic harm. And you rightly pointed out in your question, the grant for KSR reflects that. Like our petition was strong and EPA and the DOE, they both agree that we have disproportionate economic harm because of RFS, and that's why our petition was overturned. So as far as we are concerned, we are very excited about our 2025 petitions as well in terms of the strength of them, and we are looking forward to that announcement. Unknown Analyst: Perfect. And I have a follow-up. Your refining profitability is generally higher cost versus peers and the cost allocated to DKL, can DK hedge margin spread? And what could that really look like? Avigal Soreq: Yes. Thank you for that question. Generally speaking, some of our investors sees us in getting into the refinery industry and for DK share specifically is to get exposure to crack spread. So we're going ahead and hedging, that is taking some of the teasers investment. So we are not doing it in any meaningful way, and we want to make sure that our investors are well rewarded and awarded for investing in our share, both on what we do on the capital allocation and not blocking the teasers around it. I hope it makes sense to you. Operator: Your next question comes from Alexa Breno with Goldman Sachs. Alexa Petrick: We wanted to ask first, could you just talk a little bit more about your capital allocation strategy? You've got a good amount of tailwinds coming in from a cash perspective. So how should we think about that, whether that be buybacks, a dividend or any other M&A consideration or any other allocation considerations? Avigal Soreq: Yes, absolutely. Alexa, first of all, thank you for joining this call, and thank you for your support. So I will be very clear around that, right? We had a very clear capital allocation strategy that they're working very well for us. We maintain dividend through the cycle very well towards that. And then we have a balanced approach between taking care of our balance sheet and buyback. We need to put things in perspective. We bought around 10% of our company since the beginning of 2025, and we are one of the leading companies among our peers around returning capital to our investors. We believe that being friendly to our investor and giving a good return to their investment is cornerstone in our strategy, and we'll keep doing that going forward. Alexa Petrick: That's helpful. And then just on a follow-up, can you talk a little bit more about EOP? Any places that it's surprising to the upside? And as you kind of think about -- you always talk about it being ongoing in the next leg, like where are areas for further improvement? Avigal Soreq: Yes, absolutely. EOP, it's a big deal, very big deal in our shop. And we spoke about it many times you and I, how proud we are about the fact that the entire organization is behind it and showing a very good results. EOP, it's not a project. It's a lifestyle. That's something we do. We push the entire organization and the organization love it and come up with more and more idea initiative as we speak. You need to remember, and I'm sure you know that the whole point of EOP is to create a free cash flow at all market conditions in DK, and we helped you during the presentation we put together, we put a slide that show what happened in terms of EBITDA and free cash flow in a similar market condition and how well it position us going forward. Obviously, we started the program with around $100 million. We more than doubled that as we stand now. And I mentioned that in my prepared remarks, and I'm going to reiterate that we are not stopping here, not even closely. We are working more about the more exciting things around EOP, and you need to stay tuned and expect some more good news to come after that. Mohit, why don't you chime in? Mohit Bhardwaj: Yes. And Alexa, I think Avigal is absolutely right. So from an upside standpoint, our confidence in our free cash flow profile on a mid-cycle basis is increasing. And we show in our slide deck around $650 million to $700 million in free cash flow, including DKL distributions, and I think our confidence in that free cash flow, which is close to like a 15% to 20% free cash flow yield at current prices is increasing. So we are very happy about EOP. As Avigal pointed out, we are very happy about the next phase of it, and we are very excited about the free cash flow situation that we have coming along for us post EOP environment. Operator: Your next question comes from Manav Gupta with UBS. Manav Gupta: I'll pivot a little bit to midstream. You have a very strong sour gas presence. Can you give us an update on in terms of completion of the Libby gas complex, when do you expect to get completed? And then should we expect a ramp into the fourth quarter and year-end? And how that further increases your position in the Permian sour gas opportunity? Avigal Soreq: Manav, thank you for joining us. It's a great question. We are very excited about the progress we are doing at DKL. DKL today on a pro forma basis, 80% third party. We have a clear, clean strategy of being a premier provider of crude, water and gas in the most prolific area of the Permian Basin. We have a very good growing engine, which is the gas that you just mentioned. We are very close to completing it. We see increase quarter-over-quarter on the gas reprocessing. And lately, Mark took himself that responsibility of leading DKL together with Chris, as I mentioned on my prepared remarks. So that's a very good story for us, and we are very excited about the generation. It's both showing on the DK and the DKL unit and share. So Mark, why don't you take it from here? Mark Hobbs: Yes. Thanks, Manav. Thanks for the question. Look, what I'll start with is both our plants are running well, both Libbey 1 and Libbey 2. And as you know, we've discussed in the past, we are seeing increasingly more sour gas production from our customers versus sweet, and this trend does continue. As you know, we've added not only the Libby 2 processing capacity, we've completed our AGI well and are now nearing completion of our sour gas gathering and compression offering. providing us with a much needed and unique sour gas solution in the Northern Delaware, which will help our customers continue to grow their production because we're capable of handling that. And look, we do see this driving a step change in our gas volumes as we move through the rest of the year, and it positions us very well for future growth in the region. Manav Gupta: Perfect. My quick follow-up is a little bit on the refining macro. Given the amount of global capacity that's down, do you expect the product markets to remain tight? And if you could provide some commentary on how, given your high diesel yield, it really benefits you guys? Avigal Soreq: Yes, absolutely. And that topic, Manav, as you know, was very well discussed over many calls. And the high-level comment I will provide is we have like 5 million barrels that are off capacity all in. Obviously, we believe that once the event ends, it's going to take a few quarters probably to everything to normalize. So it's not going to end very quickly in terms of the fact that we are short of refined product across the world actually. We obviously see a steep liquidation versus historical standard. We have wide swing in crude differentials. And we believe that the structural shortage of product is going to last a little bit longer Obviously, larger E&P are more disciplined than smaller, smaller. We show an increase in terms of production. We saw the rigs count increase by around 20 since the event started, which is also another tool in our toolbox. And we obviously saw Brent TI widening in lieu of the different country risk we see now versus beginning of the year. So what does it mean for us? Let's bring it back on. We have a very good access to product, both Gulf Coast and Mid-Continent, which is a positive. We have the highest among our peers. We provide you a slide, distillate and jet fuel, and that's very good for us to be outside of turnaround cycle and be able to capture that. We have obviously excess of domestic crude, which doesn't put us in working capital issues or in any other supply problems. And we have a very good midstream Permian exposure that allows the holder of DK share to enjoy both. So we are very well positioned around that, and we are very happy about where we are. Mohit, do you want to chime in? Mohit Bhardwaj: Yes. Avigal, I think you covered a lot of ground there. I just want to emphasize some of the points that you talked about specifically to us. You're absolutely right. With this macro environment that we have seen, we have seen that our producers have started at least completing their wells and production outlook has increased both in the Midland and in the Delaware Basin. Mark talked about that, which is beneficial for our midstream business, and this is obviously very beneficial for our refining business as well because they have access to these barrels. Flexibility is the name of the game that Avigal talked about. So having high distillate yield, high jet yield, having different sourcing patterns that really helps us. And last thing I really want to talk about is that there are a lot of product pipelines being talked about, which is going to clear our markets. That's also going to have a very positive impact. It has nothing to do with the crisis, but that is some of the macro trends that we are seeing in our markets. Hopefully, that answers your question. Operator: Your next question comes from Jason Gabelman from TD Cowen. Jason Gabelman: I wanted to go back to the SREs and specifically on crops and the recent award, how should we think about monetizing that award and the magnitude of cash you'll think you could get from that? And where is the priority in terms of where that cash goes? Avigal Soreq: Yes. First of all, Jason, thank you for joining our call. We're going to keep -- stick to our capital -- very strict capital guidance we provided about the dividend to maintain it all cycle and balanced approach between taking care of the balance sheet and buy back our shares. As Mohit alluded earlier, even in a mid-cycle basis, we are showing $600 million to $700 million free cash flow, which is 15% to 20% yield. So there is a lot of room in our share price to go up. We don't have any plan to have excess cash on our balance sheet. So I want to make it very clear on that. We are not going to hold excess cash just for the sake of holding it. So all of that coming together is pretty clear where it's going to come from this point on. Our strategy is to stay always with compliance, and I will let Mohit to finish it. Mohit Bhardwaj: Yes. And Jason, as Avigal just pointed out, we don't have a strategy of holding excess cash on our balance sheet. So you've seen our history, we have done a lot of return to capital -- return of capital to shareholders, and that's something that will continue. As far as KSR and the petition is concerned, we are very happy with the outcomes. And this shows the point around disproportionate economic harm that I was making earlier. As far as we are concerned, that reflects well as far as our petitions for 2025 are concerned, and we are excited to see what EPA says. It's important to understand for people like us who stay in compliance, we buy RINs, and this is a return of those rents RINs to us. So it is important that it's not like somebody is giving us cash. It's the cash that we have already invested and is being returned to us. Jason Gabelman: Okay. Yes. I guess I'm wondering, is there any friction time in terms of receiving those RINs and then monetizing them? Or is that a pretty immediate event? Mohit Bhardwaj: Yes. So Jason, I think we've gone through this rodeo based upon how this plays out last time. We have a very good strategy around this. We have a very good team who manages our RIN purchases and disposals, if any required. So we have a very good strategy around it. We are not concerned about it. But as I said, SREs is an issue around disproportionate economic harm, and we are glad that EPA took the right decision. Jason Gabelman: Okay. And then my follow-up is just on kind of near-term refining margin capture dynamics. Obviously, 2Q, you had a pretty steep backwardation. It seems like the curve has eased here in 3Q. Should we expect that to be kind of a one-to-one benefit in terms of kind of the backwardation in 2Q going to easing in 3Q flowing to your refining margin? Avigal Soreq: Yes, that's pretty much it. You got it right. So $1 in the backwardation is dollar that doesn't reflect itself into the crack and vice versa. You are absolutely right. We see a pretty flat curve now. Maybe on the front, we see like around $1.50 or something like that. So that's pretty flat versus the $6, $7, even more we have seen in Q2, and that's obviously reflected in the crack spread. So you're absolutely right. Operator: Your next question comes from Joe Laetsch with Morgan Stanley. Joseph Laetsch: So I wanted to start on the Sum of the Parts side. Could you just talk through how you're thinking about the current deconsolidation and value unlock options here? You've done a good job with bolt-ons and organic growth in the past at DKL and the currency at DKL has certainly strengthened this year. So curious about the M&A landscape as well. Avigal Soreq: Yes, absolutely. So I will start by saying the journey of Sum of the Parts. We need to remember the objective is to make sure that the value that we are creating in DKL show both in the share price and unit price. We obviously made progress with that, and there is more steps that we are doing as we speak. What we need to remember here that today, we are standing with around 80% third-party income on the DKL side on a pro forma basis. We are standing in a very, very good location, both on the Delaware side and in the Midland side, and Mark gave his remark about the gas plant, which is a very good unique opportunity. We obviously have very good asset quality as we stand now on all aspects, DPG on DGG on the crude side, DB on the gas side and also the former H2O and Gravity that we brought in around 5 to 6x, probably the valuation now is around 10, I would guess. Another dynamic in the market, Joe, that you're probably aware of that we have seen the recent transaction are low to mid-teens that if you're doing the intrinsic value, there is very high upside about where we are. As I said in the past, all options are on the table, and we are promoting one or more of them, either the DK asset sale, obviously, continue doing a bolt-on acquisition or do a buyback like between DK and DKL like we did in the past, which is, to remind you, a free tax exercise. In terms of the M&A itself, the market is very good for sellers today, and you can take that comment wherever you believe to. And on the top of that, we are not going to do acquisition if it's not accretive to leverage, coverage ratio and it's going to be strategic. So we are looking at all options, and we are staying very, very tuned. Joseph Laetsch: That's helpful. And then shifting to refining, just on the utilization side. So it looks like the system ran well overall across all of the refineries. And you've had some initiatives and turnarounds in recent years to improve the competitiveness of the assets. As we think about the path forward, is there more work to conduct across the system? Or is it in a place now where it's more about just operational execution? Avigal Soreq: Yes. I will tie 2 answers together. The one answer, we are obviously happy about where we are in terms of reliability and the progress we have done. We have completed the third successful turnaround on budget, on time and most importantly, safely. So we are happy about that. But now I'm going to take the other portion of the answer is enterprise optimization plan is well tied into that. And Joe, you know that we are never going to be happy about where we are with EOP. We made progress $220 million, $60 million this quarter. But the entire organization, and it's coming from all levels, are fully committed to bring -- to write the next chapter of EOP. And don't be surprised if we will come back to you quickly with another level of improvement that we see either in the gross margin, in the products we make, in the location we are selling them in the more area of the business. So stay tuned. Operator: Your next question comes from Matthew Blair with TPH. Matthew Blair: So for marketing and supply in the second quarter, apologies if I missed this, but do you have the breakout that includes the details on wholesale marketing, asphalt and your supply activities? And then for the third quarter, do you have any general commentary on the trends that you're seeing, for example, with crude prices moving back up, would that be a headwind to asphalt so far in Q3? Avigal Soreq: Go ahead, Mohit. Mohit Bhardwaj: Yes, Matt, thanks for the question. So as we have talked about multiple times, our supply and marketing line item, which we call internally the DKTS is doing very well. We have new leadership in place. We have done -- as we've talked about multiple times, we have tried to improve our wholesale business, our asphalt business, trying to create more value out of it. And you saw the results in the second quarter where versus where we were in the first quarter, results improved markedly despite all the volatility that we are seeing, which is you're also referring to as far as your ask for the 3Q forecast is concerned. Wholesale is doing very well. We are very optimistic about the improvements that we've been making, and they should continue in the third quarter as well. Asphalt, we still have to see as to how prices settle. Prices have seen a lot of volatility. But as far as even asphalt is concerned, you should have some catch-up based upon the time that has passed since the start of the conflict, but it's all going to depend upon the volatility. So overall, we are very happy with how the business is performing, both in wholesale and asphalt, and we expect improvements all along. Just cannot talk about the volatility around it. Matthew Blair: Okay. Sounds good. And then on the SRE proceeds, could you just clarify -- so for like 2025, I think we're estimating that if you receive partial waivers at all 4 refineries, it's just about $600 million. If you receive full waivers, it would be double like $1.2 billion. Is there a tax that you would have to pay on that just because you bought RINs at a lower price and then theoretically be selling them at a higher price? So do you have any estimates on what a potential tax impact might look like? Avigal Soreq: Yes. So obviously, we are not going to give a specific guidance around that. We still need to make sure 2025 come as we expected, and we're going to follow the capital allocation strategy that we have. And let's stay tuned around that, and we are very optimistic about those sufficient. Mohit, why don't you finish? Mohit Bhardwaj: Yes. Avigal, thanks for that. And Robert will answer the exact strategy around tax management, which is not just tied to SREs. But as far as your comments were concerned, so we have given the number out for -- total RVO obligation in 2025 was $468.4 million, and that was around a RIN price of $1 a gallon. So you can make your own assumptions beyond that. That was the 2025 pricing in that number. As far as our overall tax allocation strategy is concerned, we're not going to discuss it on the call, but Robert, do you have any comments to make on that? Robert Wright: No, I think Avigal addressed it right. I think we have a lot of levers that we can play to minimize our tax expense on this and obviously, the current economics and profitability that the business is seeing. So nothing to model or share right now, but tax minimization is a key strategy of ours, and we'll employ that on any SREs that were granted. Mohit Bhardwaj: Yes. It's just a whole -- it's just not tied to the SREs, but overall tax minimization is our strategy. And for us, we are very happy about our cash flow situation and where we are in the cycle right now. Operator: There are no further questions at this time. I will now turn the call back to Avigal Soreq, CEO, for closing remarks. Avigal Soreq: I want to thank my colleagues here around the table for another great quarter. I want to thank the Board of Directors trusting us, to thank you the investors of sticking to the story and supporting us and most importantly, to our employees who make this company, the great company we are privileged to manage. We'll talk again in the next quarter, and have a safe day. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Delek Us, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Delek Us wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends Delek Us. The Motley Fool has a disclosure policy. Delek US Holdings (DK) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Delek US Holdings (DK) reported $4.09 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 47.8%. EPS of $5.48 for the same period compares to -$0.56 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $3.03 billion, representing a surprise of +34.83%. The company delivered an EPS surprise of +147.96%, with the consensus EPS estimate being $2.21. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Delek US Holdings performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Total throughput (average bpd) - Total Refining: 315,555.00 BBL/D compared to the 305,149.50 BBL/D average estimate based on four analysts. Total Throughput Capacity Per Day - Tyler, TX Refinery: 77,887.00 BBL/D compared to the 75,199.22 BBL/D average estimate based on four analysts. Tyler, TX Refinery - Per barrel of throughput - Tyler refining production margin: $23.3 million versus the four-analyst average estimate of $19.13 million. Total refining production margin per bbl total throughput: $19.84 versus $15.86 estimated by four analysts on average. Total Throughput Capacity Per Day - Big Spring, TX Refinery: 70,137.00 BBL/D versus 67,771.98 BBL/D estimated by four analysts on average. Total Throughput Capacity Per Day - Krotz Springs, LA Refinery: 83,025.00 BBL/D compared to the 81,088.97 BBL/D average estimate based on four analysts. El Dorado, AR Refinery - Per barrel of throughput - El Dorado refining production margin: $16.4 million versus $14.07 million estimated by four analysts on average. Big Spring, TX Refinery - Per barrel of throughput - Big Spring refining production margin: $20.47 million versus the four-analyst average estimate of $15.68 million. Total Throughput Capacity Per Day - El Dorado, AR Refinery: 84,506.00 BBL/D versus the four-analyst average estimate of 81,089.31 BBL/D. Total Revenues- Logistics: $384.7 million versus $296.9 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +56.1% change. Total Revenues- Corporate, Other and Eliminations: $-353.7 million compared to the $-240.47 million average estimate based on three analysts. The reported number represents a change of +78.1% year over year. Total Revenues- Refining: $4.06 billion versus $2.96 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +49.3% change. View all Key Company Metrics for Delek US Holdings here>>> Shares of Delek US Holdings have returned +26.5% over the past month versus the Zacks S&P 500 composite's +3.5% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Delek US Holdings, Inc. (DK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Net Income: Approximately $170 million, or $2.71 per share. Adjusted Net Income: Approximately $344 million, or $5.48 per share. Adjusted EBITDA: Approximately $639 million; approximately $490 million excluding the 50% RVO adjustment. Adjusted EPS (excl. RVO adjustment): Approximately $3.64 per share. Cash Flow from Operations: $263 million for the quarter, including a $138 million net outflow from working capital changes. Investing Activities: Use of $176 million, including $61 million in Delek Logistics capital purchases and $55 million in refining purchases. Financing Activities: Outflow of $82 million, reflecting term loan paydown, $16 million in dividend payments, and $22 million in DKL distribution payments to public unitholders. Logistics Segment Adjusted EBITDA: Approximately $144 million, a record quarterly result. Supply and Marketing Improvement: $60 million increase quarter-over-quarter, driven by wholesale marketing ($25 million) and supply, partially offset by a $3 million reduction in asphalt contribution. EOP Contribution: Approximately $60 million to P&L in the second quarter of 2026. Shareholder Returns: Paid approximately $16 million in dividends and $20 million in buybacks during the quarter. Net Debt Reduction (stand-alone DK): Declined by $72 million, driven primarily by the term loan paydown. Third-Quarter Throughput Guidance: System target of 296,000 to 316,000 barrels per day (Tyler: 72,000-77,000; El Dorado: 78,000-83,000; Big Spring: 68,000-73,000; Krotz Springs: 78,000-83,000). Third-Quarter Expense Guidance: Operating expenses between $220 million and $230 million; G&A between $50 million and $55 million; D&A between $110 million and $120 million. Third-Quarter Interest Expense Guidance: Net interest expense between $75 million and $85 million (DK: $28 million-$33 million; DKL: $47 million-$52 million). Warning! GuruFocus has detected 9 Warning Signs with DK. Is DK fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Delek US Holdings Inc (NYSE:DK) reported strong second-quarter results with adjusted EBITDA of approximately $639 million and adjusted EPS of $5.48, driven by robust refining margins and higher throughput. The company's Enterprise Optimization Plan (EOP) contributed approximately $60 million to P&L in Q2 2026, and management is working on further initiatives to create an additional meaningful step change in free cash flow. Delek Logistics (DKL) delivered its best quarterly results in history with approximately $144 million in adjusted EBITDA, and reaffirmed its 2026 EBITDA guidance of $520 million to $560 million. The successful completion of the Big Spring turnaround has improved reliability, crude slate flexibility, product yields, and octane/blending capabilities, positioning the refinery well for the rest of the year with no planned turnarounds. The company maintains a shareholder-friendly capital allocation strategy, having bought back approximately 10% of its shares since the beginning of 2025, and continues to pay dividends and execute buybacks. Delek US Holdings Inc (NYSE:DK) is making progress on its Sum of the Parts strategy, with DKL's third-party EBITDA expected to exceed 80% on a pro forma basis in 2026, moving closer to deconsolidation goals. The recent award of a Small Refinery Exemption (SRE) for Krotz Springs reflects the company's strong petition and the EPA's recognition of disproportionate economic harm, which bodes well for its 2025 SRE petitions. The company faces significant uncertainty and burden from the RFS obligations, with elevated RVO costs and the absence of SREs creating a substantial financial impact on small refineries like Delek US Holdings Inc (NYSE:DK). The refining margin environment is subject to volatility, with steep backwardation in Q2 2026 expected to ease in Q3, which could negatively impact refining margins quarter-over-quarter. The company does not hedge its refining margin exposure, leaving investors fully exposed to crack spread volatility, which could lead to unpredictable earnings. There is ongoing geopolitical risk and market disruption from events in the Middle East and Eastern Europe, which, while creating opportunities, also introduces significant operational and market uncertainty. The company's asphalt business saw a $3 million reduction in contribution in Q2, and its performance remains dependent on volatile crude prices and market conditions. Delek US Holdings Inc (NYSE:DK) faces potential tax implications on SRE proceeds, and while management has a tax minimization strategy, the exact impact remains uncertain and unquantified. The company's free cash flow is subject to working capital swings, as evidenced by a $138 million net outflow from changes in working capital in Q2, which can impact liquidity. Q: Can you offer any update on the current timing of 2025 Small Refinery Exemptions (SREs)? Can you clarify if SREs are awarded, what are the restrictions on value, and can you sell 2025 credits at 2026 prices? Also, you were recently awarded Krotz Springs having previously been denied. Can you share the process that led to the change in decision and implications for the portfolio? A: Avigal Soreq (President and CEO) stated that the SRE issue is not just a Delek situation but impacts roughly 40 refineries across the nation. The key principle is "disproportionate economic harm," and the administration, Senate, Congress, and EPA understand the need to resolve it timely to maintain jobs and affordable fuels. Mohit Bhardwaj (EVP, New Energy, Strategy and Investor Relations) added that the Krotz Springs grant reflects the strength of their petition, as both the EPA and DOE agreed they faced disproportionate economic harm. They are excited about the strength of their 2025 petitions and look forward to the announcement. Q: Can you talk a little bit more about your capital allocation strategy? You've got a good amount of tailwinds coming in from a cash perspective. How should we think about that, whether that be buybacks, a dividend, or any other M&A consideration? A: Avigal Soreq (President and CEO) reiterated a clear and disciplined capital allocation strategy. They maintain the dividend through the cycle and take a balanced approach between strengthening the balance sheet and buybacks. He highlighted that they have bought back around 10% of the company since the beginning of 2025, making them a leader among peers in returning capital. He confirmed they will continue this shareholder-friendly approach going forward. Q: Can you talk a little bit more about EOP? Any places that it's surprising to the upside? And as you think about the next leg, where are areas for further improvement? A: Avigal Soreq (President and CEO) described EOP as a "lifestyle" rather than a project, with the entire organization committed to it. The program started at around $100 million and has more than doubled to its current target of at least $220 million. He confirmed they are not stopping there and are working on the next phase, expecting to announce more good news soon. Mohit Bhardwaj (EVP, New Energy, Strategy and Investor Relations) added that their confidence in the mid-cycle free cash flow profile of $650 million to $700 million, including DKL distributions, is increasing, which represents a 15% to 20% free cash flow yield at current prices. Q: You have a very strong sour gas presence. Can you give us an update on the completion of the Libby gas complex? When do you expect it to be completed, and should we expect a ramp into the fourth quarter? A: Avigal Soreq (President and CEO) noted that DKL is close to completing its comprehensive sour gas solution, which will allow it to fully capitalize on growth opportunities in the Delaware Basin. Mark Hobbs (EVP, Logistics of the General Partner) added that both Libby 1 and Libby 2 plants are running well, and they are seeing increasingly more sour gas production from customers. They have completed the AGI well and are nearing completion of the sour gas gathering and compression offering. This unique solution will help customers continue to grow production and is expected to drive a step change in gas volumes through the rest of the year. Q: Given the amount of global capacity that's down, do you expect the product markets to remain tight? And can you provide commentary on how your high diesel yield benefits you? A: Avigal Soreq (President and CEO) stated that with roughly 5 million barrels of capacity offline, the structural shortage of refined products is likely to last a bit longer. They see steep backwardation and wide swings in crude differentials. He highlighted their high distillate and jet fuel yield, access to both Gulf Coast and Mid-Continent products, and excess domestic crude as key advantages. Mohit Bhardwaj (EVP, New Energy, Strategy and Investor Relations) added that producers have increased production in the Midland and Delaware Basins, which benefits both their midstream and refining businesses. He also mentioned that new product pipelines being discussed will have a positive impact on clearing their markets. Q: I wanted to go back to the SREs and specifically on Krotz Springs and the recent award. How should we think about monetizing that award and the magnitude of cash you could get from that? And where is the priority in terms of where that cash goes? A: Avigal Soreq (President and CEO) stated they will stick to their strict capital guidance, maintaining the dividend and taking a balanced approach between the balance sheet and buybacks. He emphasized they do not plan to hold excess cash on the balance sheet. Mohit Bhardwaj (EVP, New Energy, Strategy and Investor Relations) clarified that for companies that stay in compliance, SREs are a return of RINs they have already purchased, not a gift. He confirmed they have a good strategy for managing RIN purchases and disposals and are not concerned about the process. Q: On the Sum of the Parts side, could you talk through how you're thinking about the current deconsolidation and value unlock options? The currency at DKL has strengthened this year, so I'm curious about the M&A landscape as well. A: Avigal Soreq (President and CEO) stated the objective is to ensure the value created in DKL shows in both the share and unit price. With around 80% third-party income on a pro forma basis, they are in a strong position. He noted that recent transactions in the market are at low-to-mid teens multiples, implying high upside. He confirmed all options are on the table, including asset sales, bolt-on acquisitions, or buybacks between DK and DKL, which is a tax-free exercise. He added that the market is very good for sellers today, but they will not do an acquisition unless it is accretive to leverage and coverage ratios and is strategic. Q: On the refining utilization side, the system ran well overall. As we think about the path forward, is there more work to conduct across the system, or is it more about operational execution now? A: Avigal Soreq (President and CEO) expressed happiness with the reliability progress, noting they completed the third successful turnaround on budget, on time, and safely. He tied this to the Enterprise Optimization Plan, stating the organization is fully committed to writing the next chapter of EOP For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Delek US Holdings (DK) just released its second quarter 2026 results, reporting sales of US$4,087 million and net income of US$169.5 million, along with an updated picture of first half performance. See our latest analysis for Delek US Holdings. Despite the sharp 1-day share price decline of 9.74% to US$59.75 after Delek US Holdings reported its quarterly figures and confirmed another dividend payment, momentum over longer periods remains strong. The 30-day share price return is 12.8%, the year-to-date share price return is 100.64%, and the 1-year total shareholder return is 208.64%, suggesting recent volatility is being assessed against a very strong run. If Delek US Holdings has piqued your interest and you want to see what else is moving in energy and infrastructure, this is a good moment to scan 36 power grid technology and infrastructure stocks After such a steep drop following strong recent gains and a swing back to quarterly profit, the question for Delek US Holdings now is whether the latest move reflects changing business fundamentals or a short term sentiment reset ahead of valuation work. Delek US Holdings closed at $59.75, a touch below the most widely followed fair value estimate of $60.67. That slight gap is built on a detailed set of revenue, earnings, and discount rate assumptions. Read the complete narrative. Want to see what underpins that fair value for Delek US Holdings. The narrative leans heavily on cash flow uplift, higher margins, and a richer future earnings multiple. The real story sits in how these assumptions fit together over the next several years. Result: Fair Value of $60.67 (ABOUT RIGHT) Have a read of the narrative in full and understand what's behind the forecasts. However, investors in Delek US Holdings still need to watch for two key pressure points: ongoing net losses alongside high capital spending, and regulatory decisions on small refinery exemptions that could materially affect future cash flows. Find out about the key risks to this Delek US Holdings narrative. While the most popular Delek US Holdings narrative sits close to analyst fair value around $60.67, the SWS DCF model sends a very different signal. At a current price of $59.75, the stock trades far above an estimated future cash flow value of $6.46, which points to a wide valuation gap that raises questions about how durable today’s expectations really are. For investors, the contrast between a near at par analyst target and a deeply discounted DCF outcome is a prompt to stress test assumptions on margins, utilization, and long term refining economics. Look into how the SWS DCF model arrives at its fair value. Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Delek US Holdings for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 50 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. With sentiment on Delek US Holdings finely balanced between opportunity and caution, this is the moment to review the full data set and form your own stance. To weigh up both sides of the story quickly, start with the 1 key reward and 3 important warning signs. If Delek US Holdings has sharpened your focus on opportunities, do not stop here. Use the Simply Wall St screener to identify other stocks that align with your goals. Target resilient income by reviewing companies in the 8 dividend fortresses that may offer higher yields supported by the strength of their underlying businesses. Unearth overlooked opportunities by scanning the screener containing 18 high quality undiscovered gems where solid fundamentals have yet to attract broad attention. Prioritise capital preservation by checking the 82 resilient stocks with low risk scores which highlights stocks with lower risk scores and sturdier profiles. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include DK. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]