Delek US Holdings’ Board of Directors Approves the Purchase of up to $30 million of Delek Logistics Partners, LP Limited Pa...
November 08 2016 - 5:00PM
Delek US Holdings, Inc. (NYSE:DK) (“Delek US”) today announced that
its Board of Directors has approved the purchase of up to $30
million of the outstanding common limited partner units in Delek
Logistics Partners, LP (NYSE:DKL). This authorization, which may be
executed through 10b5-1 or similar plans, will remain in place
until the authorized amount is fully utilized. At the
discretion of Delek US, the program may be suspended or terminated
at any time. At September 30, 2016, Delek US and its
affiliates owned a 59.7 percent limited partner interest,
consisting of 14,798,516 limited partner units, and the 2.0 percent
general partner of Delek Logistics Partners, LP.
Uzi Yemin, Chairman, President and Chief
Executive Officer of Delek US stated, "This approval provides an
additional option in our capital allocation program. Based on the
current growth outlook for DKL combined with its yield and
valuation, we believe it represents an attractive investment
opportunity. With the expected closing of the $535.0 million retail
transaction in November, our financial flexibility should be
improved, providing the ability to support this investment, as well
as continued evaluation of strategic opportunities to grow our
business with a focus on creating long term value for our
shareholders.”
About Delek US Holdings,
Inc.Delek US Holdings, Inc. is a diversified downstream
energy company with assets in petroleum refining and
logistics. The refining segment consists of refineries
operated in Tyler, Texas and El Dorado, Arkansas with a combined
nameplate production capacity of 155,000 barrels per day.
Delek US Holdings, Inc. and its affiliates also own approximately
62 percent (including the 2 percent general partner interest) of
Delek Logistics Partners, LP. Delek Logistics Partners, LP
(NYSE:DKL) is a growth-oriented master limited partnership focused
on owning and operating midstream energy infrastructure
assets. Delek US Holdings, Inc. also owns approximately 47
percent of the outstanding common stock of Alon USA Energy, Inc.
(NYSE:ALJ).
Safe Harbor Provisions Regarding
Forward-Looking StatementsThis press release contains
forward-looking statements that are based upon current expectations
and involve a number of risks and uncertainties. Statements
concerning current estimates, expectations and projections about
future results, performance, prospects and opportunities and other
statements, concerns, or matters that are not historical facts are
“forward-looking statements,” as that term is defined under the
federal securities laws.
Investors are cautioned that the following
important factors, among others, may affect these forward-looking
statements. These factors include but are not limited to: risks and
uncertainties with respect to the quantities and costs of crude oil
we are able to obtain and the price of the refined petroleum
products we ultimately sell; gains and losses from derivative
instruments; management's ability to execute its strategy of growth
through acquisitions and the transactional risks associated with
acquisitions and dispositions; acquired assets may suffer a
diminishment in fair value as a result of which we may need to
record a write-down or impairment in carrying value of the asset;
our ability to complete and realize the benefits of the retail
transaction; the effect on our financial results by the financial
results of Alon USA Energy, Inc., in which we hold a significant
equity investment; uncertainty regarding the outcome of our
proposal to acquire the remaining outstanding stock of Alon USA;
changes in the scope, costs, and/or timing of capital and
maintenance projects; operating hazards inherent in transporting,
storing and processing crude oil and intermediate and finished
petroleum products; our competitive position and the effects of
competition; the projected growth of the industries in which we
operate; general economic and business conditions, particularly
levels of spending relating to travel and tourism or conditions
affecting the southeastern United States; and other risks contained
in our filings with the United States Securities and Exchange
Commission.
Forward-looking statements should not be read as
a guarantee of future performance or results and will not be
accurate indications of the times at or by which such performance
or results will be achieved. Forward-looking information is
based on information available at the time and/or management's good
faith belief with respect to future events, and is subject to risks
and uncertainties that could cause actual performance or results to
differ materially from those expressed in the statements.
Delek US undertakes no obligation to update or revise any such
forward-looking statements.
U.S. Investor / Media Relations Contact:
Keith Johnson
Delek US Holdings, Inc.
Vice President of Investor Relations
615-435-1366
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