Delek US reports Q2 EPS (92c), consensus ($1.31)

Reports Q2 revenue $ $3.421B , consensus $3.31B.We are excited about the significant progress we have made on our ‘Sum of the Parts’ efforts,” said Avigal Soreq, President and Chief Executive Officer of Delek US. “We concluded the strategic review of our retail assets. Following the review, we have announced the sale of our retail business to FEMSA. Delek US & Delek Logistics executed on ‘win-win’ contract amendments and extensions as well as drop-down of our interest in the Wink to Webster pipeline. A combination of our retail sale, drop-down of our interest in the Wink to Webster pipeline, and amendments & extensions of contracts between DK & DKL will allow for a cash infusion of over $500mm in DK with little to no loss in standalone DK EBITDA. At the same time, a combination of contract extensions, acquisition of Wink to Webster interest, new processing plant and acquisition of H2O Midstream will enable DKL to continue to have among the best combination of cash flow growth and distributions amongst its peers.” “Looking ahead, we will continue to execute on our priorities of running safe and reliable operations, making further progress on our strategic initiatives, and delivering shareholder value while maintaining our financial strength and flexibility,” Soreq concluded.