Delek Us Hldgs Inc Stock Price, News & Analysis

Delek Logistics Partners, LP (NYSE: DKL) announced a quarterly cash distribution of $0.905 per common limited partner unit for Q3 2020, reflecting a 0.6% increase from Q2 2020 and a 2.8% increase year-over-year. This marks the 30th consecutive quarterly increase in distributions, demonstrating business stability amid challenging energy conditions. The distribution is payable on November 12, 2020 to unitholders of record on November 6, 2020. Delek Logistics aims for 5% distribution growth for the year compared to 2019.

Delek US Holdings (NYSE: DK) will issue its third quarter 2020 results on November 4, 2020, after market close. A conference call to discuss these results is scheduled for 8:30 a.m. CT on November 5, 2020. Investors can access the live broadcast through the Delek US website. Additionally, Delek Logistics Partners (NYSE: DKL) will hold its own earnings call at 7:30 a.m. CT on the same day, which may offer relevant information for Delek US stakeholders.

Delek Logistics Partners, LP (NYSE: DKL) announced it will release its third-quarter 2020 results after market close on November 4, 2020. A conference call is scheduled for November 5, 2020, at 7:30 a.m. CT to discuss the results. Investors can access the live call on its website, with a replay available for 90 days. Additionally, Delek US Holdings, Inc. (NYSE: DK) will also hold its own earnings call on the same day at 8:30 a.m. CT. The logistics partnership focuses on owning and operating midstream energy infrastructure.

On August 13, 2020, Delek US Holdings and Delek Logistics Partners announced the elimination of all incentive distribution rights (IDRs) in Delek Logistics. In return, Delek US will receive 14 million newly issued DKL common limited partner units and $45 million in cash. This transaction is projected to enhance distributable cash flow per DKL unit and increases Delek US's ownership stake in DKL to approximately 80%. The Conflicts Committee of Delek Logistics approved the transaction, which aims to reduce the cost of capital and support the midstream growth strategy of Delek Logistics.

Delek US reported second quarter 2020 financial results, showing a net income of $87.7 million or $1.18 per diluted share, up from $77.3 million or $1.00 per diluted share year-over-year. However, adjusted net loss reached $110.5 million, reflecting significant losses from inventory impacts and hedging. The refining segment faced a decline in contribution margin to $59.7 million from $198.1 million, largely due to lower demand amid COVID-19. The company declared a quarterly dividend of $0.31 per share and reported a cash balance of $849 million as of June 30, 2020.

Delek Logistics Partners reported a net income of $44.4 million for Q2 2020, significantly up from $24.9 million in Q2 2019. EBITDA increased to $64.8 million, reflecting a 45% year-over-year rise. The decline in revenue to $117.6 million was primarily due to lower commodity prices. However, distributable cash flow surged to $57.0 million, a 82% increase compared to the previous year. A quarterly cash distribution of $0.90 per common limited partner unit was declared, marking a 5.9% increase from last year. The leverage ratio remains below 4.1x, indicating strong financial health.

Delek US Holdings, trading under the ticker DK, plans to release its second quarter 2020 results post-market closure on August 4, 2020. A conference call to discuss these results is scheduled for August 5, 2020, at 8:30 a.m. CT. Investors can access the live broadcast on the company's website. Additionally, investors may want to attend Delek Logistics Partners’ earnings call earlier that day at 7:30 a.m. CT, as it may provide relevant insights into Delek US's logistics segment.

Delek US Holdings (NYSE: DK) has completed the sale of Alon Bakersfield Property, Inc., a subsidiary owning a refinery in California, to Global Clean Energy Holdings for $40 million. The transaction is set to eliminate about $14 million in annual operating expenses and remove certain environmental liabilities from Delek's balance sheet. CEO Uzi Yemin stated that this sale strengthens their financial position by reducing costs and liabilities. Delek continues to maintain a diversified portfolio in refining, logistics, and retail.

Delek US Holdings reported a first quarter net loss of $(314.4) million, or $(4.28) per share, compared to a net income of $149.3 million in the same period last year. Adjusted EBITDA was $(29.7) million, a marked decline from $244.1 million in Q1 2019. The company plans a $75 million reduction in capital expenditures and a 10% decrease in operating expenses in response to COVID-19 impacts. Despite challenges, refining throughput for Q2 is expected at 80% utilization, benefiting from improving regional demand and contango in crude oil markets. Delek US holds $785 million in cash as of March 31, 2020.