Delek US (NYSE:DK) reported second-quarter 2026 internet earnings of roughly $170 million, or $2.71 per share, as stronger refining margins, improved throughput and document logistics outcomes supported efficiency.
On an adjusted foundation, the corporate posted internet earnings of about $344 million, or $5.48 per share, and adjusted EBITDA of roughly $639 million. Excluding a 50% renewable quantity obligation, or RVO, adjustment, adjusted EBITDA was about $490 million and adjusted earnings had been $3.64 per share, based on Government Vice President and CFO Robert Wright.
President and CEO Avigal Soreq stated the corporate navigated volatility in crude and product markets through the quarter whereas persevering with to give attention to reliability, cash-flow technology and disciplined capital allocation.
Refining efficiency and market outlook
Wright stated quarter-over-quarter EBITDA enchancment was led by stronger refining margins and better throughput following the completion of the Large Spring refinery turnaround. Soreq stated Large Spring has carried out according to expectations because the turnaround, with improved reliability, higher crude-slate flexibility, higher product yields and elevated octane and mixing functionality.
Delek has no deliberate refinery turnarounds for the rest of 2026, Soreq stated, positioning its system to take part in favorable market situations.
Administration pointed to steep backwardation, shifting crude differentials and tight transportation-fuel markets as necessary components within the refining atmosphere. Soreq stated the corporate believes entry to crude provides, excessive distillate yields and the flexibility to reply shortly to market modifications are necessary benefits.
In the course of the question-and-answer session, Soreq stated world refined-product markets stay affected by capability outages and that normalization might take a number of quarters after present market disruptions finish. He additionally cited Delek’s entry to Gulf Coast and Midcontinent markets, home crude availability and excessive distillate and jet gasoline yields as favorable traits.
On refining margin seize, Soreq stated a decline in market backwardation ought to profit realized crack spreads. He described the present ahead curve as comparatively flat in contrast with the considerably steeper backwardation seen through the second quarter.
For the third quarter, Delek guided to whole refining-system throughput of 296,000 to 316,000 barrels per day. By refinery, the corporate expects:
- Tyler throughput of 72,000 to 77,000 barrels per day;
- El Dorado throughput of 78,000 to 83,000 barrels per day;
- Large Spring throughput of 68,000 to 73,000 barrels per day; and
- Krotz Springs throughput of 78,000 to 83,000 barrels per day.
The corporate additionally forecast third-quarter working bills of $220 million to $230 million, basic and administrative bills of $50 million to $55 million, and depreciation and amortization expense of $110 million to $120 million.
Optimization efforts and logistics progress
Soreq stated Delek’s Enterprise Optimization Plan, or EOP, contributed an estimated $60 million to second-quarter revenue and loss. This system is meant to extend annual money circulation by no less than $220 million on a run-rate foundation.
Administration stated it’s pursuing one other section of optimization initiatives, although it didn’t present particulars. Soreq described EOP as an ongoing effort throughout the group fairly than a one-time mission. Mohit Bhardwaj, Delek’s government vice chairman of New Vitality, Technique and Investor Relations, stated the corporate’s confidence in its mid-cycle free-cash-flow profile has elevated.
Delek Logistics Companions delivered roughly $144 million in adjusted EBITDA, its greatest quarterly lead to firm historical past, Wright stated. Efficiency was supported by momentum throughout its Permian Basin crude, pure fuel and water companies.
Delek Logistics reaffirmed its 2026 EBITDA steerage of $520 million to $560 million. Soreq stated the partnership expects third-party EBITDA to exceed 80% on a professional forma foundation throughout 2026, a metric that administration views as central to its technique to additional separate the logistics enterprise economically from Delek US.
Mark Hobbs, government vice chairman of Delek Logistics Companions, stated the Libby I and Libby II fuel crops are working nicely and that the corporate is nearing completion of a sour-gas gathering and compression system. The amenities and related acid-gas injection nicely are supposed to offer a sour-gas answer within the Northern Delaware Basin and assist elevated fuel volumes via the rest of the yr.
Money circulation, debt discount and shareholder returns
Money circulation from operations totaled $263 million within the second quarter, together with a $138 million internet working-capital outflow. Investing actions used $176 million, together with $61 million of capital purchases at Delek Logistics, primarily for progress tasks, and $55 million of refining capital purchases.
Financing actions represented an $82 million outflow. Delek diminished its time period mortgage from $920 million to $850 million via a refinancing and paydown, whereas standalone internet debt, excluding Delek Logistics, declined by $72 million through the quarter, Wright stated.
The corporate paid roughly $16 million in dividends and repurchased about $20 million of shares through the quarter. Soreq stated Delek intends to keep up its dividend via the cycle and stability extra money deployment between debt discount and share repurchases.
Small refinery exemptions
Administration additionally mentioned small refinery exemptions below the Renewable Gasoline Normal. Soreq stated elevated RVO prices have created a burden for qualifying small refineries and that the corporate expects the Environmental Safety Company to proceed offering reduction for 2025 and past.
Bhardwaj stated Delek’s not too long ago granted Krotz Springs exemption mirrored findings by the EPA and Division of Vitality that the refinery confronted disproportionate financial hurt from Renewable Gasoline Normal obligations. He stated the corporate is inspired by the power of its 2025 petitions however didn’t present timing or monetary steerage for potential awards.
Administration emphasised that any RIN-related proceeds would characterize the return of prices beforehand incurred to stay in compliance, fairly than new money offered by one other social gathering. Delek stated it will proceed its present capital-allocation method and doesn’t intend to carry extra money solely for the aim of sustaining a bigger balance-sheet money place.
About Delek US (NYSE:DK)
Delek US Holdings, Inc (NYSE: DK) is an unbiased downstream vitality firm engaged within the refining, logistics, and advertising of petroleum merchandise. Headquartered in Brentwood, Tennessee, the corporate operates a community of inland refineries, storage terminals and pipelines, and comfort retailer places. Delek US focuses on changing crude oil into a wide range of completed merchandise, together with gasoline, diesel, jet gasoline, asphalt and renewable fuels, serving wholesale and retail prospects throughout the USA.
In its refining phase, Delek US owns and operates 4 inland refineries situated in Texas and Arkansas.
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