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Net Loss: Reported a net loss of $32.6 million, slightly above the estimated net loss of $32.85 million.
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Earnings Per Share (EPS): Recorded a loss of $0.51 per share, falling short of the estimated loss of $0.45 per share.
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Adjusted EBITDA: Achieved $158.7 million in adjusted EBITDA, indicating operational resilience despite financial losses.
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Dividends: Increased the regular quarterly dividend to $0.250 per share, underlining commitment to shareholder returns despite the net loss.
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Liquidity and Debt Management: Improved liquidity to approximately $800 million and executed successful debt and equity offerings, enhancing financial flexibility.
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Refining Segment Performance: Adjusted EBITDA for the refining segment fell to $106.1 million from $230.2 million year-over-year, impacted by lower refining crack spreads.
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Logistics and Retail Segments: Logistics segment saw an increase in adjusted EBITDA to $99.7 million, while the retail segment maintained steady performance with $6.5 million in adjusted EBITDA.
On May 7, 2024, Delek US Holdings Inc. (NYSE:DK) disclosed its first-quarter financial results through an 8-K filing, revealing a net loss of $32.6 million, or $(0.51) per share. This performance fell short of analyst expectations, which had anticipated a smaller loss of $32.85 million and $(0.45) per share. The company’s adjusted net loss stood at $26.2 million, or $(0.41) per share, with adjusted EBITDA reaching $158.7 million.
About Delek US Holdings Inc.
Delek US Holdings Inc. is a diversified downstream energy company with a focus on petroleum refining, logistics, pipelines, renewable fuels, and convenience store retailing. The company operates refineries in Texas, Arkansas, and Louisiana with a combined crude throughput capacity of 302,000 barrels per day. Its logistics operations include a significant partnership in Delek Logistics Partners, LP (NYSE: DKL), enhancing its midstream infrastructure capabilities.
Operational and Financial Highlights
The first quarter of 2024 was marked by several strategic achievements for Delek US, despite the financial losses incurred. Key operational highlights included the execution of debt and equity offerings by Delek Logistics, which bolstered liquidity to approximately $800 million and expanded its volume activity. These initiatives led to an improved leverage ratio, from 4.34x at the end of 2023 to 4.01x, and diluted DK ownership to 72.7%.
President and CEO Avigal Soreq commented on the quarter’s performance, noting the company’s resilience against regional demand headwinds and its strategic progress.
We are proud of our operational excellence progress that reflects favorable EHS performance trends,” said Soreq. “We navigated regional demand headwinds early in the quarter and delivered solid operational performance.”
Segment Performance
The refining segment faced challenges, with adjusted EBITDA dropping to $106.1 million from $230.2 million in the prior year, primarily due to lower refining crack spreads. However, the logistics segment saw an increase in adjusted EBITDA to $99.7 million, up from $91.4 million, driven by strong contributions from Delaware Gathering systems and annual rate increases. The retail segment remained stable with a slight increase in adjusted EBITDA to $6.5 million.
Financial Position and Future Outlook
As of March 31, 2024, Delek US reported a robust cash position of $753.4 million, with a net debt of $1,743.5 million. The company remains committed to its strategic growth projects and enhancing shareholder value through safe and reliable operations. The Board of Directors also approved a regular quarterly dividend of $0.25 per share, underscoring its confidence in the company’s financial health and future prospects.
Looking ahead, Delek US is poised to continue its focus on operational excellence and strategic initiatives aimed at optimizing its portfolio and realizing value for stakeholders. Despite the current challenges, the company’s diversified business model and strong liquidity position it well for navigating future market dynamics and capitalizing on growth opportunities.
Investor Communications
Delek US has scheduled a conference call on May 7, 2024, to discuss detailed quarterly results and provide further insights into its operations and strategic plans. This will be followed by Delek Logistics earnings call, offering additional context relevant to Delek USs logistics segment.
For more detailed financial information and future updates, stakeholders are encouraged to visit the Delek US website and its investor relations pages.
Explore the complete 8-K earnings release (here) from Delek US Holdings Inc for further details.
This article first appeared on GuruFocus.
