Delek Us Hldgs Inc Stock Price, News & Analysis

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.

Delek US Holdings (NYSE: DK) announced its response to the nomination of three candidates for its Board of Directors by IEP Energy Holding LLC, controlled by Carl Icahn. The company emphasizes its commitment to a strong, independent, and diverse Board that serves stockholders' interests. The Nominating and Corporate Governance Committee will review the nominees and advise the Board, which will then provide recommendations to stockholders. No action is required from stockholders at this time.

Delek's retail segment is enhancing customer experience through innovative technology and personalized services. In 2021, 25% of stores adopted Touch-Less checkout using Mashgin tech, reducing checkout times by 67%. The High Octane Rewards Program offers mobile benefits, including fuel discounts, resulting in a 42% increase in loyalty member basket sizes. In 2022, a new loyalty app with mobile payment will be launched to further enhance customer engagement. This strategy aims to fulfill the vision of delivering a customer-centric experience.

Delek Logistics Partners, LP (NYSE: DKL) declared a quarterly cash distribution of $0.975 per common limited partner unit for Q4 2021, a 2.6% increase from Q3 2021 and a 7.1% increase from Q4 2020. This distribution, payable on February 8, 2022, highlights the company's consistent quarterly increases since Q4 2012. Improved energy sentiment and strong utilization rates are noted as contributing factors, while no major turnaround activities are planned for 2022. The management emphasizes stability despite potential risks, including those linked to Delek US and external market conditions.

Delek US Holdings (NYSE: DK) announced it will summarize its fourth quarter 2021 results after the U.S. market closes on February 23, 2022. A conference call for results discussion is set for 8:30 a.m. CT on February 24, 2022. Investors can access the live broadcast via DelekUS.com. Additionally, Delek Logistics Partners (NYSE: DKL) will announce its fourth quarter earnings on the same day at 7:30 a.m. CT, with relevant information also available on DelekLogistics.com.

Delek Logistics Partners, LP (NYSE: DKL) will announce its fourth quarter 2021 results on February 23, 2022, after market close. A conference call to discuss these results is set for February 24, 2022, at 7:30 a.m. CT. Investors can access the live broadcast through the Delek Logistics website, with a replay available for 90 days. Delek Logistics operates as a master limited partnership focusing on midstream energy assets and is a subsidiary of Delek US Holdings, Inc. (NYSE: DK).

Delek US Holdings (NYSE:DK) has announced a program to sell up to 434,590 common limited partner units in Delek Logistics Partners, LP (NYSE:DKL) over the next three months. This sale, guided by Rule 144 and a Rule 10b5-1 trading plan, aims to highlight the value of Delek's approximately 80% ownership in DKL, which the company believes is not reflected in its stock price. This move is expected to enhance liquidity and trading volumes for DKL, ultimately benefiting its unitholders.

Delek US Holdings and Delek Logistics Partners announced their 2022 capital spending budget, which ranges from $250 million to $260 million. The budget allocates approximately $59 million for growth at Delek Logistics, anticipated to be self-funding. Key focuses include expanding the Permian Gathering business due to strong demand and opening four new retail locations. Fourth quarter refining throughput guidance is between 275 to 280 mbbl/d, with maintenance activities delayed until 2023.