Delek US (DK) Q3 2024 earnings summary

Executive summary

• Reported a Q3 2024 net loss of $76.8 million ($1.20 per share) and adjusted net loss of $93 million ($1.45 per share), with adjusted EBITDA of $70.6–$71 million.

• Completed sale of 249 retail stores for $390.2 million, entered a 10-year fuel supply agreement, and classified retail as discontinued operations.

• Acquired H2O Midstream for $229.5–$230 million, expanding water disposal and recycling in the Permian Basin.

• Announced the Enterprise Optimization Plan targeting at least $100 million in profitability improvement by H2 2025.

• Logistics segment delivered record adjusted EBITDA, driven by Delaware Gathering, rate increases, and W2W dropdown.

Financial highlights

• Q3 2024 net revenues were $3,042.4 million, down 34.3% year-over-year; adjusted EBITDA was $70.6–$71 million, down from $345.1 million in Q3 2023.

• Net loss attributable to Delek was $76.8 million; adjusted net loss was $93 million ($1.45 per share).

• Logistics segment delivered $106.1 million adjusted EBITDA in Q3 2024.

• Cash balance at September 30, 2024, was $1,037.6 million; total long-term debt was $2,789.4 million.

• Net cash provided by operating activities for Q3 2024 was $432.6 million; $322.9 million provided by financing activities.

Outlook and guidance

• Fourth quarter 2024 throughput guidance: 265,000–276,000 bpd; operating expenses expected between $177–$188 million; G&A $53–$58 million.

• Capex for 2024 forecasted at $315–$330 million, excluding gas plant expansion.

• Focus on operational excellence, cost structure optimization, and execution of the Enterprise Optimization Plan.