Delek US Reports Q3 2024 Financial Results Amidst Challenges

Delek US ( (DK) ) has released its Q3 earnings. Here is a breakdown of the information Delek US presented to its investors.

Delek US Holdings, Inc. is a diversified downstream energy company specializing in petroleum refining, logistics, pipelines, and renewable fuels, with key operations across multiple states in the USA. The company has recently announced its financial results for the third quarter of 2024, reflecting a challenging period with a net loss of $76.8 million or $(1.20) per share, and an adjusted net loss of $93.0 million or $(1.45) per share. Despite these setbacks, Delek Logistics reported a record quarterly EBITDA of $106.1 million, highlighting the strengths within its logistics segment.

Key financial highlights for the quarter include the sale of retail assets for $390 million, completion of the Wink to Webster pipeline dropdown into Delek Logistics, and the acquisition of H2O Midstream. The company also introduced an Enterprise Optimization Plan aimed at boosting profitability by at least $100 million. However, a significant downturn in refining crack spreads resulted in reduced adjusted EBITDA for the refining segment compared to the previous year.

The logistics segment showed resilience with an increase in adjusted EBITDA from $96.5 million in the prior year to $106.1 million, driven by contributions from Delaware Gathering systems and the impact of the Wink to Webster dropdown. The corporate segment saw a reduction in losses, attributed to lower employee-related expenses. The company also maintained its shareholder distribution with a declared regular quarterly dividend.

Looking ahead, Delek US is focused on executing its strategic priorities, including maximizing third-party business value, enhancing profitability through the Enterprise Optimization Plan, and maintaining financial strength and flexibility. The management remains committed to delivering shareholder value and advancing its operational efficiencies.