Delek Us Hldgs Inc Stock Price, News & Analysis

Delek US Holdings reported a first quarter net income of $6.6 million or $0.09 per share, recovering from a net loss of $70 million in Q1 2021. Adjusted EBITDA reached $172.8 million, up from $12.6 million a year ago, driven by improved refining margins and utilization rates. The company plans to acquire 3Bear, aiming for midstream EBITDA of $365 - $395 million. With a cash reserve of $854 million and no major maintenance plans in 2022, Delek is positioned to capitalize on a strengthening energy market.

Delek Logistics Partners reported first quarter net income of $39.5 million, a 9% increase year-over-year. EBITDA rose to $66.0 million, up 12% year-over-year. The company declared a quarterly distribution of $0.98 per unit, reflecting a 6.5% increase from last year. A planned acquisition of 3Bear will enhance scale and revenue diversity, while strong activity in the Permian Gathering business is expected to boost volumes. The distributable cash flow coverage ratio stood at 1.21x with a leverage ratio of 3.3x.

Delek Logistics Partners, LP (NYSE: DKL) announced a quarterly cash distribution of $0.98 per common limited partner unit for Q1 2022, up 0.5% from Q4 2021 and 6.5% from Q1 2021. This marks the 37th consecutive quarter of increasing distributions. The distribution will be payable on May 12, 2022, to unitholders of record on May 5, 2022. The company also highlighted strong industry momentum due to elevated commodity prices and increased demand in its Permian Gathering System, along with a planned acquisition that is expected to boost cash flow ratios.

Delek US Holdings (NYSE: DK) plans to release its first quarter 2022 results on May 3, 2022, before the U.S. market opens. A conference call to discuss these results will occur at 11:00 a.m. CT (12:00 p.m. ET) on the same day. Investors can access the live broadcast via www.DelekUS.com. Additionally, Delek Logistics Partners (NYSE: DKL) will hold its earnings call earlier on May 3, 2022, at 9:30 a.m. CT (10:30 a.m. ET), providing insights relevant to Delek US's logistics segment.

Delek Logistics Partners (NYSE: DKL) has entered into a definitive agreement to acquire 100% of the equity interests in 3Bear Delaware Holding – NM, LLC for $624.7 million. The acquisition encompasses 3Bear's crude oil and gas gathering, processing, and transportation operations in New Mexico's Delaware Basin. 3Bear manages a robust asset portfolio with significant pipeline and processing capacities. This strategic move is expected to enhance revenue, diversify product offerings, and support cash flow growth. The transaction is anticipated to close mid-2022, subject to regulatory approval.

Delek US Holdings (NYSE: DK) announced a leadership transition effective June 2022, with Uzi Yemin stepping down as CEO to become Executive Chairman. Avigal Soreq, previously CEO of El Al Airlines, will take over as CEO of Delek US and President of Delek Logistics. The company emphasizes its strategic direction and operational capabilities under the new leadership. Other appointments include Todd O'Malley as COO and Nithia Thaver as EVP and President of Refining. Leonardo Moreno joins the Board, broadening governance and bringing renewable energy expertise.

Delek Logistics Partners, LP (NYSE: DKL) has announced that the 2021 K-1 tax packages are now available for unit holders on its website. The packages can be accessed by selecting the Tax Information link. Additionally, the company is currently in the process of printing and mailing these tax packages. Unit holders can direct any inquiries regarding the tax packages to a dedicated helpline or via email. Delek Logistics, based in Brentwood, Tennessee, focuses on owning and operating crude oil and refined product logistics and marketing assets.

Delek US Holdings (NYSE: DK) announced a $64 million stock purchase agreement with the Icahn Group, buying back shares at $18.30 each, closing by March 11, 2022. This acquisition will reduce shares outstanding by approximately 4.7%, increasing Icahn Group's stake to about 4.93%. CEO Uzi Yemin stated the transaction reflects confidence in the company's underlying business, supported by a strong cash balance and refining margins. A Form 8-K detailing the agreement will be filed with the SEC.

Delek US Holdings reported a fourth quarter 2021 net loss of $(41.9) million, a significant improvement from a net loss of $(293.2) million in Q4 2020. On an adjusted basis, the net loss was $(44.9) million versus $(204.0) million the prior year. Adjusted EBITDA was $58.2 million, contrasting with $(137.6) million in Q4 2020. The refining contribution margin rose to $32.1 million, driven by increased demand and higher crack spreads. The company maintained a cash balance of $856.5 million with total long-term debt at $2,218.0 million.