Delek US Holdings, Inc. (NYSE: DK) (“Delek US”) today announced
financial results for its fourth quarter ended December 31,
2019. Delek US reported fourth quarter 2019 net income of $32.7
million, or $0.44 per diluted share, versus a net income of $121.6
million, or $1.48 per diluted share, for the quarter ended
December 31, 2018. On an adjusted basis, Delek US
reported Adjusted net loss of $(8.5) million, or $(0.11) per share
for the fourth quarter 2019. This compares to Adjusted net income
of $165.7 million, or $2.03 per share, in the prior-year period.
Adjusted earnings before interest, taxes, depreciation and
amortization ("Adjusted EBITDA") was $66.0 million compared to
Adjusted EBITDA of $287.4 million in the prior-year period.
Reconciliations of net income reported under U.S. GAAP to Adjusted
net income and Adjusted EBITDA are included in the financial tables
attached to this release.
Adjusted quarterly results include a net income
benefit of approximately $7.2
million, or $0.10 per share. This consists of a
$31.1 million (after-tax) benefit from the retroactive
biodiesel tax credit (BTC) attributable to the first three quarters
of 2019, partially offset by headwinds of approximately $23.9
million (after-tax). These headwinds include $11.4 million related
to environmental expenses and incremental employee costs. In
addition, approximately $12.5 million is related to operating
factors, such as accelerated work and product inventory builds at
Krotz Springs and Big Spring, respectively, along with unplanned
repairs and maintenance.
For the full year 2019, Delek
US reported net income of $310.6 million,
or $4.06 per diluted share, compared to net income
of $340.1 million, or $3.95 per diluted share in
2018. Net income in 2019 includes the benefit of $40.4 million
(after-tax) of retroactive BTC related to 2018, while 2018 net
income included the benefit of $24.9 million (after-tax) of
retroactive BTC related to 2017. Adjusted net income
was $252.5 million, or $3.30 per share in 2019,
compared to net income of $416.6 million,
or $4.92 per share in 2018. Adjusted net income for both
2019 and 2018 reflect adjustments to present BTC impacts in the
year to which they relate. The overall decrease in year-over-year
results were primarily driven by a lower crude differential
environment where the benchmark Midland to Brent differential
declined from $13.85 per barrel for full year 2018 to $7.83 per
barrel for full year 2019. The effect from a lower crude oil
differential was partially offset by the alkylation unit at Krotz
Springs that began operating in the second quarter 2019 and an
increase in income from joint ventures. Adjusted EBITDA
was $659.4 million compared to Adjusted EBITDA
of $864.6 million in the prior year period.
Uzi Yemin, Chairman, President and Chief
Executive Officer of Delek US, stated, "Our company had solid
execution and financial performance in 2019. Last year in refining
we brought the alkylation unit at Krotz Springs on line and
completed turnaround and vacuum tower work at El Dorado. In retail
we continued to high grade our portfolio with the divestiture of
select stores and progress on re-branding. Strategically, we took
meaningful steps to transition our portfolio to become more
integrated and diversified, mainly through midstream investments.
These steps included the ongoing build-out of the Big Spring
Gathering system, where we are increasing EBITDA guidance,
participation in the Wink to Webster pipeline joint venture, and
Delek Logistics Partners' acquisition of an interest in the Red
River pipeline joint venture. These midstream assets should provide
a significant contribution to future results and gain momentum into
2021 and 2022. We remain confident in our annualized midstream
EBITDA target of $370 to $395 million by 2023. With our midstream
growth, we are looking to simplify the capital structure of our MLP
and unlock value through potential asset drop-down opportunities.
During 2019, we also returned approximately $265 million of cash to
shareholders in the form of dividends and share repurchases as we
strive to balance growth while simultaneously returning cash."
Mr. Yemin continued, "Cash generation in the
first half of 2020 should benefit from the retroactive approval of
the BTC, along with project financing from Wink to Webster.
Additionally, our capital spending this year should decline
approximately 24% to $325 million. Between the work completed at El
Dorado last year and the turnaround at the Big Spring refinery in
the first quarter of 2020, our system should be positioned to
capture market opportunities throughout the balance of this year.
Finally, our strong balance sheet positions us well for macro
volatility. As a result, our quarterly dividend is being increased
by 3.3% from the third quarter 2019, marking the seventh increase
since the dividend paid during the first quarter of 2018."
Regular Quarterly Dividend and Share
RepurchaseDelek US announced today its Board of Directors
declared a regular quarterly cash dividend of $0.31 per share. This
represents a 3.3% increase from our previous regular quarterly
dividend. Shareholders of record on March 10, 2020 will
receive this cash dividend payable on March 24, 2020.
During the fourth quarter 2019, Delek US
repurchased approximately 863 thousand shares of Delek US common
stock for approximately $30.3 million, with an average price of
$35.05 per share. For the full year 2019, Delek US repurchased
approximately 5.0 million shares for approximately $178.0 million
with an average price of $35.33 per share. At December 31,
2019, there was approximately $231.7 million of total available
authorization remaining to repurchase shares.
LiquidityAs of
December 31, 2019, Delek US had a cash balance of $955.3
million and total consolidated long-term debt of $2,067.1 million,
resulting in net debt of $1,111.8 million. As of
December 31, 2019, Delek Logistics Partners, LP (NYSE: DKL)
("Delek Logistics") had $833.1 million of total debt and $5.5
million of cash, which is included in the consolidated amounts on
Delek US' balance sheet. Excluding Delek Logistics, Delek US had
approximately $949.8 million in cash and $1,234.0 million of debt,
or a $284.2 million net debt position.
Refining SegmentRefining
segment contribution margin was $161.5 million in the fourth
quarter 2019 compared to $235.3 million in the fourth quarter 2018.
On a year-over-year basis, results were negatively impacted by a
lower crude differential environment and lower sales volumes. In
the fourth quarter 2018, results included an approximate $16.0
million reduction in operating expenses related to environmental
indemnification proceeds at the idled Bakersfield, California
location.
Fourth-quarter 2019 contribution margin includes
a benefit of $67.9 million for the BTC attributable to volumes
blended in 2018 and the first three quarters of 2019. The benefit
was recognized in the fourth quarter since the legislation
authorizing the credit was enacted in December 2019.
Logistics SegmentThe logistics
segment contribution margin in the fourth quarter 2019 was $42.5
million compared to $45.0 million in the fourth quarter 2018.
Results in the fourth quarter 2019 were negatively impacted by
spill related costs of $7.1 million, which were partially offset by
improved performance in the Paline Pipeline and SALA Gathering
System.
Retail SegmentFor the fourth
quarter 2019, contribution margin was $12.1 million compared to
$13.1 million in the prior year period for the retail segment.
Merchandise sales were approximately $72.9 million with an average
retail margin of 30.6% in the fourth quarter 2019, compared to
merchandise sales of approximately $81.0 million with an average
retail margin of 30.2% in the prior-year period. Approximately 51.5
million retail fuel gallons were sold at an average margin of $0.29
per gallon in the fourth quarter 2019 compared to 53.3 million
retail fuel gallons sold at an average margin of $0.30 per gallon
in the fourth quarter 2018. In the fourth quarter 2019, the average
store count was 258 compared to 295 in the prior year period.
On a same store sales basis in the fourth quarter 2019, merchandise
sales increased 0.5% and fuel gallons sold increased 2.4% compared
to the prior-year period.
Corporate/OtherContribution
margin from Corporate/Other was a loss of $44.7 million in the
fourth quarter 2019 compared to a loss of $8.0 million in the
prior-year period. The year over year decrease was mainly driven by
hedging losses of approximately $39.0 million in the fourth quarter
2019.
Fourth Quarter 2019 Results | Conference
Call InformationDelek US will hold a conference call to
discuss its fourth quarter 2019 results on Wednesday, February 26,
2020 at 8:30 a.m. Central Time. Investors will have the opportunity
to listen to the conference call live by going to www.DelekUS.com
and clicking on the Investor Relations tab. Participants are
encouraged to register at least 15 minutes early to download and
install any necessary software. Presentation materials accompanying
the call will be available on the investor relations tab of the
Delek US website approximately five minutes prior to the start of
the call. For those who cannot listen to the live broadcast, the
online replay will be available on the website for 90 days. A
telephonic replay of the call will also be available
through March 11, 2020. The replay can be accessed by
dialing (855) 859-2056 with the conference ID number 4691547.
Investors may also wish to listen to Delek
Logistics’ (NYSE: DKL) fourth quarter 2019 earnings conference call
that will be held on Wednesday, February 26, 2020 at 7:30 a.m.
Central Time and review Delek Logistics’ earnings press release.
Market trends and information disclosed by Delek Logistics may be
relevant to the logistics segment reported by Delek US. Both a
replay of the conference call and press release for Delek Logistics
are available online at www.deleklogistics.com.
About Delek US Holdings,
Inc.Delek US Holdings, Inc. is a diversified downstream
energy company with assets in petroleum refining, logistics,
renewable fuels and convenience store retailing. The refining
assets consist of refineries operated in Tyler and Big Spring,
Texas, El Dorado, Arkansas and Krotz Springs, Louisiana with a
combined nameplate crude throughput capacity of 302,000 barrels per
day.
The logistics operations primarily consist of
Delek Logistics Partners, LP (NYSE: DKL). Delek US Holdings,
Inc. and its affiliates own approximately 63% (including the 2%
general partner interest) of Delek Logistics Partners, LP.
Delek Logistics Partners, LP is a growth-oriented master limited
partnership focused on owning and operating midstream energy
infrastructure assets.
The convenience store retail operates
approximately 252 convenience stores in central and west Texas and
New Mexico.
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, opportunities, plans,
actions and events 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. These
statements contain words such as “possible,” “believe,” “should,”
“could,” “would,” “predict,” “plan,” “estimate,” “intend,” “may,”
“anticipate,” “will,” “if", “potential,” “expect” or similar
expressions, as well as statements in the future tense. These
forward-looking statements include, but are not limited to,
statements regarding throughput at the Company’s refineries; crude
oil prices, discounts and quality and our ability to benefit
therefrom; share repurchases; returning cash to shareholders;
payments of dividends; growth; investments into our business; the
performance and execution of our midstream growth initiatives,
including the Big Spring Gathering System, the Red River joint
venture and the Wink to Webster long-haul crude oil pipeline, and
the flexibility, benefits and the expected returns therefrom; RINs
waivers and tax credits and the value and benefit therefrom; cash
and liquidity; opportunities and anticipated performance and
financial position.
Investors are cautioned that the following
important factors, among others, may affect these forward-looking
statements. These factors include, but are not limited to:
uncertainty related to timing and amount of future share
repurchases and dividend payments; 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; risks related to Delek US’ exposure to Permian
Basin crude oil, such as supply, pricing, gathering, production and
transportation capacity; gains and losses from derivative
instruments; management's ability to execute its strategy of
growth, including 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; the possibility of
litigation challenging renewable fuel standard waivers;changes in
the scope, costs, and/or timing of capital and maintenance
projects; the ability to grow the Big Spring Gathering System; the
ability of the Red River joint venture to complete the expansion
project to increase the Red River pipeline capacity; the ability of
the joint venture to construct the Wink to Webster long haul crude
oil pipeline; 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 affecting the geographic areas in
which we operate; and other risks described in Delek US’ filings
with the United States Securities and Exchange Commission (the
“SEC”), including risks disclosed in our Annual Report on Form
10-K, Quarterly Reports on Form 10-Q and other filings and reports
with the SEC.
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 to reflect events or circumstances that
occur, or which Delek US becomes aware of, after the date hereof,
except as required by applicable law or regulation.
Non-GAAP Disclosures:
Our management uses certain “non-GAAP”
operational measures to evaluate our operating segment performance
and non-GAAP financial measures to evaluate past performance and
prospects for the future to supplement our GAAP financial
information presented in accordance with U.S. GAAP. These financial
and operational non-GAAP measures are important factors in
assessing our operating results and profitability and include:
- Adjusted net income (loss) -
calculated as net income attributable to Delek US adjusted for
certain identified infrequently occurring items, non-cash items and
items that are not attributable to our on-going operations
(collectively, "Adjusting Items") recorded during the period;
- Adjusted unrealized hedging (gains)
losses - calculated as GAAP unrealized (gains) losses on commodity
derivatives that are economic hedges but not designated as hedging
instruments adjusted to exclude unrealized (gains) losses where the
instrument has matured but where it has not cash settled as of the
balance sheet date. This adjustment more appropriately aligns
matured commodity derivatives gains and losses with the recognition
of the related cost of materials and other. There are no premiums
paid or received at the inception of the derivative contracts, and
upon settlement there is no cost recovery associated with these
contracts;
- Adjusted net income (loss) per
share - calculated as Adjusted net income (loss) divided by
weighted average shares outstanding, assuming dilution, as adjusted
for any anti-dilutive instruments that may not be permitted for
consideration in GAAP earnings per share calculations but that
nonetheless favorably impact dilution;
- Earnings before interest, taxes,
depreciation and amortization ("EBITDA") - calculated as net income
attributable to Delek adjusted to add back interest expense, income
tax expense, depreciation and amortization;
- Adjusted EBITDA - calculated as
EBITDA adjusted for the identified adjusting items in Adjusted net
income (loss) that do not relate to interest expense, income tax
expense, depreciation or amortization, and adjusted to include
income (loss) attributable to non-controlling interests;
- Refining margin - calculated as the
difference between total refining revenues and total cost of
materials and other;
- Adjusted refining margin --
calculated as refining margin adjusted for certain identified
infrequently occurring items, non-cash items and items that are not
attributable to our on-going refining operations recorded during
the period;
- Refining margin per sales barrel -
calculated as refining margin divided by our average refining sales
in barrels per day (excluding purchased barrels) multiplied by
1,000 and multiplied by the number of days in the period; and
- Adjusted refining margin per sales
barrel - calculated as adjusted refining margin divided by our
average refining sales in barrels per day (excluding purchased
barrels) multiplied by 1,000 and multiplied by the number of days
in the period.
We believe these non-GAAP operational and
financial measures are useful to investors, lenders, ratings
agencies and analysts to assess our ongoing performance because,
when reconciled to their most comparable GAAP financial measure,
they provide improved comparability between periods through the
exclusion of certain items that we believe are not indicative of
our core operating performance and that may obscure our underlying
results and trends.
Non-GAAP measures have important limitations as
analytical tools, because they exclude some, but not all, items
that affect net earnings and operating income. These measures
should not be considered substitutes for their most directly
comparable U.S. GAAP financial measures. Additionally,
because Adjusted net income or loss, Adjusted net income or loss
per share, EBITDA and adjusted EBITDA or any of our other
identified non-GAAP measures may be defined differently by other
companies in its industry, Delek US' definition may not be
comparable to similarly titled measures of other companies. See the
accompanying tables in this earnings release for a reconciliation
of these non-GAAP measures to the most directly comparable GAAP
measures.
Delek US
Holdings, Inc. |
Condensed
Consolidated Balance Sheets (Unaudited) |
(In
millions, except share and per share data) |
|
|
December 31, 2019 |
|
December 31, 2018 |
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
955.3 |
|
|
$ |
1,079.3 |
|
Accounts receivable, net |
|
792.6 |
|
|
514.4 |
|
Inventories, net of inventory valuation reserves |
|
946.7 |
|
|
677.9 |
|
Other current assets |
|
268.7 |
|
|
148.7 |
|
Total current assets |
|
2,963.3 |
|
|
2,420.3 |
|
Property, plant and
equipment: |
|
|
|
|
Property, plant and equipment |
|
3,362.8 |
|
|
2,999.6 |
|
Less: accumulated depreciation |
|
(934.5 |
) |
|
(804.7 |
) |
Property, plant and equipment, net |
|
2,428.3 |
|
|
2,194.9 |
|
Operating lease right-of-use
assets |
|
183.6 |
|
|
— |
|
Goodwill |
|
855.7 |
|
|
857.8 |
|
Other intangibles, net |
|
110.3 |
|
|
104.4 |
|
Equity method investments |
|
407.3 |
|
|
130.3 |
|
Other non-current assets |
|
67.8 |
|
|
52.9 |
|
Total assets |
|
$ |
7,016.3 |
|
|
$ |
5,760.6 |
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
|
$ |
1,599.7 |
|
|
$ |
1,011.2 |
|
Current portion of long-term debt |
|
36.4 |
|
|
32.0 |
|
Obligation under Supply and Offtake Agreements |
|
332.5 |
|
|
312.6 |
|
Current portion of operating lease liabilities |
|
40.5 |
|
|
— |
|
Accrued expenses and other current liabilities |
|
346.8 |
|
|
307.7 |
|
Total current liabilities |
|
2,355.9 |
|
|
1,663.5 |
|
Non-current liabilities: |
|
|
|
|
Long-term debt, net of current portion |
|
2,030.7 |
|
|
1,751.3 |
|
Obligation under Supply and Offtake Agreements |
|
144.8 |
|
|
49.6 |
|
Environmental liabilities, net of current portion |
|
137.9 |
|
|
139.5 |
|
Asset retirement obligations |
|
68.6 |
|
|
75.5 |
|
Deferred tax liabilities |
|
267.9 |
|
|
210.2 |
|
Operating lease liabilities, net of current portion |
|
144.3 |
|
|
— |
|
Other non-current liabilities |
|
30.9 |
|
|
62.9 |
|
Total non-current liabilities |
|
2,825.1 |
|
|
2,289.0 |
|
Stockholders’ equity: |
|
|
|
|
Common stock, $0.01 par value, 110,000,000 shares authorized,
90,987,025 shares and 90,478,075 shares issued at December 31, 2019
and December 31, 2018, respectively |
|
0.9 |
|
|
0.9 |
|
Additional paid-in capital |
|
1,151.9 |
|
|
1,135.4 |
|
Accumulated other comprehensive income |
|
0.1 |
|
|
28.6 |
|
Treasury stock, 17,516, 814 shares and 12,477,780 shares, at cost,
as of December 31, 2019 and December 31, 2018, respectively |
|
(692.2 |
) |
|
(514.1 |
) |
Retained earnings |
|
1,205.6 |
|
|
981.8 |
|
Non-controlling interests in subsidiaries |
|
169.0 |
|
|
175.5 |
|
Total stockholders’ equity |
|
1,835.3 |
|
|
1,808.1 |
|
Total liabilities and stockholders’ equity |
|
$ |
7,016.3 |
|
|
$ |
5,760.6 |
|
|
|
|
|
|
|
|
|
|
Delek US
Holdings, Inc. |
Condensed
Consolidated Statements of Income (Unaudited) (1) |
(In
millions, except share and per share data) |
|
|
Three Months Ended December 31, |
|
Year Ended
December 31, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
Net revenues |
|
$ |
2,283.7 |
|
|
$ |
2,474.1 |
|
|
$ |
9,298.2 |
|
|
$ |
10,233.1 |
|
Cost of sales: |
|
|
|
|
|
|
|
|
Cost of materials and other |
|
1,926.0 |
|
|
2,023.3 |
|
|
7,657.2 |
|
|
8,560.5 |
|
Operating expenses (excluding depreciation and amortization
presented below) |
|
161.8 |
|
|
137.8 |
|
|
580.2 |
|
|
538.5 |
|
Depreciation and amortization |
|
45.0 |
|
|
42.0 |
|
|
170.7 |
|
|
161.3 |
|
Total cost of sales |
|
2,132.8 |
|
|
2,203.1 |
|
|
8,408.1 |
|
|
9,260.3 |
|
Operating expenses related to
retail and wholesale business (excluding depreciation and
amortization presented below) |
|
24.5 |
|
|
27.6 |
|
|
102.0 |
|
|
106.5 |
|
General and administrative
expenses |
|
77.4 |
|
|
71.5 |
|
|
274.7 |
|
|
247.6 |
|
Depreciation and
amortization |
|
2.6 |
|
|
11.0 |
|
|
23.6 |
|
|
38.1 |
|
Other operating (income)
expense, net |
|
(1.8 |
) |
|
(21.9 |
) |
|
(2.5 |
) |
|
(31.3 |
) |
Total operating costs and expenses |
|
2,235.5 |
|
|
2,291.3 |
|
|
8,805.9 |
|
|
9,621.2 |
|
Operating income |
|
48.2 |
|
|
182.8 |
|
|
492.3 |
|
|
611.9 |
|
Interest expense |
|
35.7 |
|
|
30.7 |
|
|
131.1 |
|
|
125.9 |
|
Interest income |
|
(2.3 |
) |
|
(2.8 |
) |
|
(11.3 |
) |
|
(5.8 |
) |
Income from equity method
investments |
|
(5.9 |
) |
|
(2.8 |
) |
|
(34.3 |
) |
|
(9.7 |
) |
Gain on sale of business |
|
— |
|
|
(0.1 |
) |
|
— |
|
|
(13.3 |
) |
Impairment loss on assets held
for sale |
|
— |
|
|
— |
|
|
— |
|
|
27.5 |
|
Loss on extinguishment of
debt |
|
— |
|
|
— |
|
|
— |
|
|
9.1 |
|
Other expense (income),
net |
|
0.8 |
|
|
0.6 |
|
|
4.1 |
|
|
(7.3 |
) |
Total non-operating expenses (income), net |
|
28.3 |
|
|
25.6 |
|
|
89.6 |
|
|
126.4 |
|
Income from continuing operations before income tax expense |
|
19.9 |
|
|
157.2 |
|
|
402.7 |
|
|
485.5 |
|
Income tax (benefit)
expense |
|
(12.1 |
) |
|
29.6 |
|
|
71.7 |
|
|
101.9 |
|
Income from continuing operations, net of tax |
|
32.0 |
|
|
127.6 |
|
|
331.0 |
|
|
383.6 |
|
Discontinued operations: |
|
|
|
|
|
|
|
|
Income (loss) from discontinued operations, including gain (loss)
on sale of discontinued operations |
|
7.6 |
|
|
(0.2 |
) |
|
6.6 |
|
|
(10.9 |
) |
Income tax expense (benefit) |
|
1.6 |
|
|
— |
|
|
1.4 |
|
|
(2.2 |
) |
Income (loss) from discontinued operations, net of tax |
|
6.0 |
|
|
(0.2 |
) |
|
5.2 |
|
|
(8.7 |
) |
Net income |
|
38.0 |
|
|
127.4 |
|
|
336.2 |
|
|
374.9 |
|
Net income attributed to
non-controlling interests |
|
5.3 |
|
|
5.8 |
|
|
25.6 |
|
|
34.8 |
|
Net income attributable to
Delek |
|
$ |
32.7 |
|
|
$ |
121.6 |
|
|
$ |
310.6 |
|
|
$ |
340.1 |
|
|
|
|
|
|
|
|
|
|
Basic income (loss) per share: |
|
|
|
|
|
|
|
|
Income from continuing operations |
|
$ |
0.36 |
|
|
$ |
1.50 |
|
|
$ |
4.03 |
|
|
$ |
4.31 |
|
Income (loss) from discontinued operations |
|
0.08 |
|
|
— |
|
|
$ |
0.07 |
|
|
$ |
(0.20 |
) |
Total basic income per
share |
|
$ |
0.44 |
|
|
$ |
1.50 |
|
|
$ |
4.10 |
|
|
$ |
4.11 |
|
|
|
|
|
|
|
|
|
|
Diluted income (loss) per share: |
|
|
|
|
|
|
|
|
Income from continuing operations |
|
$ |
0.36 |
|
|
$ |
1.48 |
|
|
$ |
3.99 |
|
|
$ |
4.14 |
|
Income (loss) from discontinued operations |
|
0.08 |
|
|
— |
|
|
$ |
0.07 |
|
|
$ |
(0.19 |
) |
Total diluted income per
share |
|
$ |
0.44 |
|
|
$ |
1.48 |
|
|
$ |
4.06 |
|
|
$ |
3.95 |
|
Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
74,042,343 |
|
|
81,321,240 |
|
|
75,853,187 |
|
|
82,797,110 |
|
Diluted |
|
74,700,926 |
|
|
82,528,339 |
|
|
76,574,091 |
|
|
86,768,401 |
|
Dividends declared per common
share outstanding |
|
$ |
0.30 |
|
|
$ |
0.26 |
|
|
$ |
1.14 |
|
|
$ |
0.96 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delek US
Holdings, Inc. |
Condensed
Cash Flow Data (Unaudited) |
(In
millions) |
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Cash flows from
operating activities: |
|
|
|
|
|
|
|
Cash provided by operating activities - continuing operations |
$ |
126.8 |
|
|
$ |
359.1 |
|
|
$ |
575.2 |
|
|
$ |
590.4 |
|
Cash used in operating activities - discontinued operations |
— |
|
|
— |
|
|
— |
|
|
(30.1 |
) |
Net cash provided by operating activities |
126.8 |
|
|
359.1 |
|
|
575.2 |
|
|
560.3 |
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
Cash (used in) provided by investing activities - continuing
operations |
(173.8 |
) |
|
(88.1 |
) |
|
(683.3 |
) |
|
(145.3 |
) |
Cash provided by investing activities - discontinued
operations |
— |
|
|
— |
|
|
— |
|
|
20.0 |
|
Net cash (used in) provided by investing activities |
(173.8 |
) |
|
(88.1 |
) |
|
(683.3 |
) |
|
(125.3 |
) |
Cash flows from
financing activities: |
|
|
|
|
|
|
|
Cash used in financing activities - continuing operations |
3.9 |
|
|
(300.8 |
) |
|
(7.9 |
) |
|
(297.6 |
) |
Net cash used in financing activities |
3.9 |
|
|
(300.8 |
) |
|
(7.9 |
) |
|
(297.6 |
) |
Net increase (decrease) in
cash and cash equivalents |
(43.1 |
) |
|
(29.8 |
) |
|
(116.0 |
) |
|
137.4 |
|
Cash and cash equivalents at
the beginning of the period |
1,006.4 |
|
|
1,109.1 |
|
|
1,079.3 |
|
|
941.9 |
|
Cash and cash equivalents at
the end of the period |
955.3 |
|
|
1,079.3 |
|
|
955.3 |
|
|
1,079.3 |
|
Less cash and cash equivalents
of discontinued operations at the end of the period |
— |
|
|
— |
|
|
— |
|
|
— |
|
Cash and cash equivalents of
continuing operations at the end of the period |
$ |
955.3 |
|
|
$ |
1,079.3 |
|
|
$ |
955.3 |
|
|
$ |
1,079.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delek US Holdings,
Inc. |
|
|
|
|
|
|
|
|
|
|
Segment Data
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
(In
millions) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2019 |
|
|
Refining |
|
Logistics |
|
Retail |
|
Corporate, Other and Eliminations |
|
Consolidated |
Net revenues (excluding inter-segment fees and revenues) |
|
$ |
1,999.1 |
|
|
$ |
68.7 |
|
|
$ |
197.8 |
|
|
$ |
18.1 |
|
|
$ |
2,283.7 |
|
Inter-segment fees and revenues |
|
162.8 |
|
|
69.9 |
|
|
— |
|
|
(232.7 |
) |
|
— |
|
Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
Cost of materials and other |
|
1,864.7 |
|
|
73.8 |
|
|
162.8 |
|
|
(175.3 |
) |
|
1,926.0 |
|
Operating expenses (excluding depreciation and amortization
presented below) |
|
135.7 |
|
|
22.3 |
|
|
22.9 |
|
|
5.4 |
|
|
186.3 |
|
Segment contribution margin |
|
$ |
161.5 |
|
|
$ |
42.5 |
|
|
$ |
12.1 |
|
|
$ |
(44.7 |
) |
|
171.4 |
|
Depreciation and amortization |
|
35.4 |
|
|
6.9 |
|
|
(0.3 |
) |
|
5.6 |
|
|
47.6 |
|
General and administrative expenses |
|
|
|
|
|
|
|
|
|
77.4 |
|
Other operating income, net |
|
|
|
|
|
|
|
|
|
(1.8 |
) |
Operating income |
|
|
|
|
|
|
|
|
|
$ |
48.2 |
|
Capital spending (excluding
business combinations) |
|
$ |
72.8 |
|
|
$ |
3.7 |
|
|
$ |
6.2 |
|
|
$ |
20.6 |
|
|
$ |
103.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2018 |
|
|
Refining |
|
Logistics |
|
Retail |
|
Corporate, Other and Eliminations |
|
Consolidated |
Net revenues (excluding intercompany fees and sales) |
|
$ |
2,093.2 |
|
|
$ |
97.2 |
|
|
$ |
214.6 |
|
|
$ |
69.1 |
|
|
$ |
2,474.1 |
|
Intercompany fees and sales |
|
198.8 |
|
|
62.1 |
|
|
— |
|
|
(260.9 |
) |
|
— |
|
Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
Cost of materials and other |
|
1,938.0 |
|
|
98.5 |
|
|
177.3 |
|
|
(190.5 |
) |
|
2,023.3 |
|
Operating expenses (excluding depreciation and amortization
presented below) |
|
118.7 |
|
|
15.8 |
|
|
24.2 |
|
|
6.7 |
|
|
165.4 |
|
Segment contribution margin |
|
$ |
235.3 |
|
|
$ |
45.0 |
|
|
$ |
13.1 |
|
|
$ |
(8.0 |
) |
|
285.4 |
|
Depreciation and amortization |
|
34.6 |
|
|
6.3 |
|
|
7.8 |
|
|
4.3 |
|
|
53.0 |
|
General and administrative expenses |
|
|
|
|
|
|
|
|
|
71.5 |
|
Other operating income, net |
|
|
|
|
|
|
|
|
|
(21.9 |
) |
Operating income |
|
|
|
|
|
|
|
|
|
$ |
182.8 |
|
Capital spending (excluding
business combinations) |
|
$ |
67.6 |
|
|
$ |
4.2 |
|
|
$ |
4.0 |
|
|
$ |
30.5 |
|
|
$ |
106.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delek US Holdings,
Inc. |
|
|
|
|
|
|
|
|
|
|
Segment Data
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
(In
millions) |
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2019 |
|
|
Refining |
|
Logistics |
|
Retail |
|
Corporate, Other and Eliminations |
|
Consolidated |
Net revenues (excluding intercompany fees and sales) |
|
$ |
8,095.9 |
|
|
$ |
323.0 |
|
|
$ |
838.0 |
|
|
$ |
41.3 |
|
|
$ |
9,298.2 |
|
Intercompany fees and sales |
|
702.6 |
|
|
261.0 |
|
|
— |
|
|
(963.6 |
) |
|
— |
|
Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
Cost of materials and other |
|
7,544.5 |
|
|
336.5 |
|
|
684.7 |
|
|
(908.5 |
) |
|
7,657.2 |
|
Operating expenses (excluding depreciation and amortization
presented below) |
|
492.4 |
|
|
74.1 |
|
|
94.8 |
|
|
20.9 |
|
|
682.2 |
|
Segment contribution margin |
|
$ |
761.6 |
|
|
$ |
173.4 |
|
|
$ |
58.5 |
|
|
$ |
(34.7 |
) |
|
958.8 |
|
Depreciation and amortization |
|
134.3 |
|
|
26.7 |
|
|
11.2 |
|
|
22.1 |
|
|
194.3 |
|
General and administrative expenses |
|
|
|
|
|
|
|
|
|
274.7 |
|
Other operating income, net |
|
|
|
|
|
|
|
|
|
(2.5 |
) |
Operating income |
|
|
|
|
|
|
|
|
|
$ |
492.3 |
|
Capital spending (excluding
business combinations) |
|
$ |
266.6 |
|
|
$ |
9.9 |
|
|
$ |
20.5 |
|
|
$ |
131.1 |
|
|
$ |
428.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2018 |
|
|
Refining |
|
Logistics |
|
Retail |
|
Corporate, Other and Eliminations |
|
Consolidated |
Net revenues (excluding intercompany fees and sales) |
|
$ |
8,771.4 |
|
|
$ |
416.8 |
|
|
$ |
915.4 |
|
|
$ |
129.5 |
|
|
$ |
10,233.1 |
|
Intercompany fees and sales |
|
839.0 |
|
|
240.8 |
|
|
— |
|
|
(1,079.8 |
) |
|
— |
|
Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
Cost of materials and other |
|
8,279.9 |
|
|
429.1 |
|
|
755.8 |
|
|
(904.3 |
) |
|
8,560.5 |
|
Operating expenses (excluding depreciation and amortization
presented below) |
|
465.4 |
|
|
58.7 |
|
|
100.7 |
|
|
20.2 |
|
|
645.0 |
|
Segment contribution margin |
|
$ |
865.1 |
|
|
$ |
169.8 |
|
|
$ |
58.9 |
|
|
$ |
(66.2 |
) |
|
1,027.6 |
|
Depreciation and amortization |
|
133.7 |
|
|
26.0 |
|
|
24.6 |
|
|
15.1 |
|
|
199.4 |
|
General and administrative expenses |
|
|
|
|
|
|
|
|
|
247.6 |
|
Other operating income, net |
|
|
|
|
|
|
|
|
|
(31.3 |
) |
Operating Income |
|
|
|
|
|
|
|
|
|
$ |
611.9 |
|
Capital spending (excluding
business combinations) |
|
$ |
203.9 |
|
|
$ |
11.6 |
|
|
$ |
10.0 |
|
|
$ |
91.7 |
|
|
$ |
317.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Refining
Segment |
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Tyler, TX
Refinery |
|
(Unaudited) |
|
(Unaudited) |
Days in period |
|
92 |
|
|
92 |
|
|
365 |
|
|
365 |
|
Total sales volume - refined
product (average barrels per day)(1) |
|
75,931 |
|
|
79,137 |
|
|
76,178 |
|
|
78,658 |
|
Products manufactured (average
barrels per day): |
|
|
|
|
|
|
|
|
Gasoline |
|
42,347 |
|
|
44,280 |
|
|
40,801 |
|
|
42,138 |
|
Diesel/Jet |
|
30,635 |
|
|
27,936 |
|
|
30,673 |
|
|
30,035 |
|
Petrochemicals, LPG, NGLs |
|
1,816 |
|
|
2,094 |
|
|
2,798 |
|
|
2,564 |
|
Other |
|
1,537 |
|
|
1,508 |
|
|
1,554 |
|
|
1,665 |
|
Total production |
|
76,335 |
|
|
75,818 |
|
|
75,826 |
|
|
76,402 |
|
Throughput (average barrels
per day): |
|
|
|
|
|
|
|
|
Crude oil |
|
70,284 |
|
|
66,719 |
|
|
70,516 |
|
|
70,041 |
|
Other feedstocks |
|
6,355 |
|
|
9,448 |
|
|
5,873 |
|
|
6,770 |
|
Total throughput |
|
76,639 |
|
|
76,167 |
|
|
76,389 |
|
|
76,811 |
|
Per barrel of refined product
sales: |
|
|
|
|
|
|
|
|
Tyler refining margin |
|
$ |
11.09 |
|
|
$ |
7.19 |
|
|
$ |
14.09 |
|
|
$ |
11.88 |
|
Tyler adjusted refining margin |
|
$ |
9.68 |
|
|
$ |
12.52 |
|
|
$ |
12.42 |
|
|
$ |
12.66 |
|
Operating expenses |
|
$ |
4.33 |
|
|
$ |
4.21 |
|
|
$ |
3.91 |
|
|
$ |
3.64 |
|
Crude Slate: (% based on
amount received in period) |
|
|
|
|
|
|
|
|
WTI crude oil |
|
100.0 |
% |
|
90.8 |
% |
|
92.7 |
% |
|
83.0 |
% |
East Texas crude oil |
|
— |
% |
|
8.9 |
% |
|
6.4 |
% |
|
16.3 |
% |
Other |
|
— |
% |
|
0.3 |
% |
|
0.8 |
% |
|
0.7 |
% |
|
|
|
|
|
|
|
|
|
El Dorado, AR
Refinery |
|
|
|
|
|
|
|
|
Days in period |
|
92 |
|
|
92 |
|
|
365 |
|
|
365 |
|
Total sales volume - refined
product (average barrels per day)(1) |
|
74,617 |
|
|
62,422 |
|
|
62,420 |
|
|
71,381 |
|
Products manufactured (average
barrels per day): |
|
|
|
|
|
|
|
|
Gasoline |
|
37,551 |
|
|
33,036 |
|
|
27,712 |
|
|
33,718 |
|
Diesel |
|
27,263 |
|
|
22,194 |
|
|
20,753 |
|
|
24,609 |
|
Petrochemicals, LPG, NGLs |
|
1,290 |
|
|
1,202 |
|
|
872 |
|
|
1,228 |
|
Asphalt |
|
4,461 |
|
|
5,601 |
|
|
5,533 |
|
|
5,179 |
|
Other |
|
903 |
|
|
806 |
|
|
735 |
|
|
732 |
|
Total production |
|
71,468 |
|
|
62,839 |
|
|
55,605 |
|
|
65,466 |
|
Throughput (average barrels
per day): |
|
|
|
|
|
|
|
|
Crude oil |
|
69,913 |
|
|
59,462 |
|
|
54,420 |
|
|
65,615 |
|
Other feedstocks |
|
2,007 |
|
|
4,508 |
|
|
1,576 |
|
|
1,313 |
|
Total throughput |
|
71,920 |
|
|
63,970 |
|
|
55,996 |
|
|
66,928 |
|
Per barrel of refined product
sales: |
|
|
|
|
|
|
|
|
El Dorado refining margin |
|
$ |
5.15 |
|
|
$ |
7.74 |
|
|
$ |
7.38 |
|
|
$ |
8.64 |
|
El Dorado adjusted refining margin |
|
$ |
4.24 |
|
|
8.41 |
|
|
$ |
6.89 |
|
|
$ |
6.28 |
|
Operating expenses |
|
$ |
5.37 |
|
|
$ |
6.26 |
|
|
$ |
5.73 |
|
|
$ |
5.22 |
|
Crude Slate: (% based on
amount received in period) |
|
|
|
|
|
|
|
|
WTI crude oil |
|
41.0 |
% |
|
29.2 |
% |
|
49.9 |
% |
|
58.6 |
% |
Local Arkansas crude oil |
|
17.9 |
% |
|
23.7 |
% |
|
23.1 |
% |
|
21.2 |
% |
Other |
|
41.2 |
% |
|
47.1 |
% |
|
27.0 |
% |
|
20.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Refining
Segment |
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Big Spring, TX
Refinery |
|
(Unaudited) |
(Unaudited) |
Days in period - based on date
acquired |
|
92 |
|
|
92 |
|
|
365 |
|
|
365 |
|
Total sales volume - refined
product (average barrels per day) (1) |
|
72,559 |
|
|
80,809 |
|
|
76,413 |
|
|
74,721 |
|
Products manufactured (average
barrels per day): |
|
|
|
|
|
|
|
|
Gasoline |
|
36,578 |
|
|
41,534 |
|
|
36,352 |
|
|
36,596 |
|
Diesel/Jet |
|
27,025 |
|
|
29,023 |
|
|
27,602 |
|
|
26,660 |
|
Petrochemicals, LPG, NGLs |
|
3,705 |
|
|
3,824 |
|
|
3,746 |
|
|
3,646 |
|
Asphalt |
|
2,036 |
|
|
1,997 |
|
|
1,870 |
|
|
1,855 |
|
Other |
|
1,292 |
|
|
1,263 |
|
|
1,327 |
|
|
1,339 |
|
Total production |
|
70,636 |
|
|
77,641 |
|
|
70,897 |
|
|
70,096 |
|
Throughput (average barrels
per day): |
|
|
|
|
|
|
|
|
Crude oil |
|
72,338 |
|
|
73,185 |
|
|
72,039 |
|
|
67,978 |
|
Other feedstocks |
|
(1,790 |
) |
|
3,273 |
|
|
(453 |
) |
|
1,533 |
|
Total throughput |
|
70,548 |
|
|
76,458 |
|
|
71,586 |
|
|
69,511 |
|
Per barrel of refined product
sales: |
|
|
|
|
|
|
|
|
Big Spring refining margin |
|
$ |
10.23 |
|
|
$ |
23.03 |
|
|
$ |
13.69 |
|
|
$ |
18.44 |
|
Big Spring adjusted refining margin |
|
$ |
10.06 |
|
|
$ |
23.51 |
|
|
$ |
13.56 |
|
|
$ |
18.55 |
|
Operating expenses |
|
$ |
5.54 |
|
|
$ |
4.44 |
|
|
$ |
4.35 |
|
|
$ |
4.20 |
|
Crude Slate: (% based on
amount received in period) |
|
|
|
|
|
|
|
|
WTI crude oil |
|
74.0 |
% |
|
76.8 |
% |
|
75.5 |
% |
|
73.8 |
% |
WTS crude oil |
|
26.0 |
% |
|
23.2 |
% |
|
24.5 |
% |
|
26.2 |
% |
|
|
|
|
|
|
|
|
|
Krotz Springs, LA
Refinery |
|
|
|
|
|
|
|
|
Days in period - based on date
acquired |
|
92 |
|
|
92 |
|
|
365 |
|
|
365 |
|
Total sales volume - refined
product (average barrels per day) (1) |
|
56,576 |
|
|
82,566 |
|
|
70,511 |
|
|
78,902 |
|
Products manufactured (average
barrels per day): |
|
|
|
|
|
|
|
|
Gasoline |
|
32,848 |
|
|
38,810 |
|
|
35,026 |
|
|
36,729 |
|
Diesel/Jet |
|
24,823 |
|
|
32,344 |
|
|
28,049 |
|
|
31,459 |
|
Heavy oils |
|
1,198 |
|
|
1,136 |
|
|
1,131 |
|
|
1,216 |
|
Petrochemicals, LPG, NGLs |
|
3,296 |
|
|
7,328 |
|
|
4,647 |
|
|
7,224 |
|
Other |
|
— |
|
|
— |
|
|
26 |
|
|
— |
|
Total production |
|
62,165 |
|
|
79,618 |
|
|
68,879 |
|
|
76,628 |
|
Throughput (average barrels
per day): |
|
|
|
|
|
|
|
|
Crude oil |
|
59,594 |
|
|
72,461 |
|
|
67,943 |
|
|
73,171 |
|
Other feedstocks |
|
317 |
|
|
5,590 |
|
|
(366 |
) |
|
2,211 |
|
Total throughput |
|
59,911 |
|
|
78,051 |
|
|
67,577 |
|
|
75,382 |
|
Per barrel of refined product
sales: |
|
|
|
|
|
|
|
|
Krotz Springs refining margin |
|
$ |
8.72 |
|
|
$ |
11.64 |
|
|
$ |
10.16 |
|
|
$ |
9.48 |
|
Krotz Springs adjusted refining margin |
|
$ |
7.98 |
|
|
$ |
12.56 |
|
|
$ |
9.70 |
|
|
$ |
8.61 |
|
Operating expenses |
|
$ |
5.55 |
|
|
$ |
3.94 |
|
|
$ |
4.46 |
|
|
$ |
3.84 |
|
Crude Slate: (% based on
amount received in period) |
|
|
|
|
|
|
|
|
WTI Crude |
|
65.4 |
% |
|
59.1 |
% |
|
72.0 |
% |
|
61.3 |
% |
Gulf Coast Sweet Crude |
|
34.6 |
% |
|
40.9 |
% |
|
28.0 |
% |
|
38.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes inter-refinery sales and sales to other segments
which are eliminated in consolidation. See tables below.
Included in the refinery statistics above are the following
inter-refinery and sales to other segments:
Inter-refinery
Sales |
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
(in
barrels per day) |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
Tyler refined product sales to other Delek refineries |
|
908 |
|
|
924 |
|
|
894 |
|
|
824 |
|
El Dorado refined product
sales to other Delek refineries |
|
37,743 |
|
|
41,066 |
|
|
38,394 |
|
|
28,737 |
|
Big Spring refined product
sales to other Delek refineries |
|
398 |
|
|
728 |
|
|
990 |
|
|
554 |
|
Krotz Springs refined product
sales to other Delek refineries |
|
12,552 |
|
|
1,200 |
|
|
9,734 |
|
|
19,644 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Refinery Sales to
Other Segments |
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
(in
barrels per day) |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
Tyler refined product sales to other Delek segments |
|
429 |
|
|
2,106 |
|
|
252 |
|
|
986 |
|
El Dorado refined product
sales to other Delek segments |
|
11 |
|
|
631 |
|
|
83 |
|
|
562 |
|
Big Spring refined product
sales to other Delek segments |
|
24,075 |
|
|
24,743 |
|
|
25,223 |
|
|
25,661 |
|
Krotz Springs refined product
sales to other Delek segments |
|
1,030 |
|
|
— |
|
|
462 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pricing
statistics |
|
|
|
|
(average for the
period presented) |
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
WTI — Cushing crude oil (per barrel) |
|
$ |
56.88 |
|
|
$ |
59.97 |
|
|
$ |
56.99 |
|
|
$ |
65.20 |
|
WTI — Midland crude oil (per
barrel) |
|
$ |
57.80 |
|
|
$ |
53.64 |
|
|
$ |
56.31 |
|
|
$ |
57.84 |
|
WTS -- Midland crude oil (per
barrel) (1) |
|
$ |
57.21 |
|
|
$ |
53.34 |
|
|
$ |
56.27 |
|
|
$ |
57.43 |
|
LLS crude oil (per barrel)
(1) |
|
$ |
60.68 |
|
|
$ |
67.48 |
|
|
$ |
62.65 |
|
|
$ |
70.19 |
|
Brent crude oil (per
barrel) |
|
$ |
62.39 |
|
|
$ |
68.69 |
|
|
$ |
64.14 |
|
|
$ |
71.69 |
|
|
|
|
|
|
|
|
|
|
US Gulf Coast 5-3-2 crack
spread (per barrel) (1) |
|
$ |
12.40 |
|
|
$ |
12.50 |
|
|
$ |
13.78 |
|
|
$ |
13.21 |
|
US Gulf Coast 3-2-1 crack
spread (per barrel) (1) |
|
$ |
14.86 |
|
|
$ |
15.42 |
|
|
$ |
16.71 |
|
|
$ |
16.63 |
|
US Gulf Coast 2-1-1 crack
spread (per barrel) (1) |
|
$ |
10.40 |
|
|
$ |
6.47 |
|
|
$ |
9.90 |
|
|
$ |
9.58 |
|
|
|
|
|
|
|
|
|
|
US Gulf Coast Unleaded
Gasoline (per gallon) |
|
$ |
1.58 |
|
|
$ |
1.59 |
|
|
$ |
1.63 |
|
|
$ |
1.83 |
|
Gulf Coast Ultra low sulfur
diesel (per gallon) |
|
$ |
1.87 |
|
|
$ |
2.01 |
|
|
$ |
1.88 |
|
|
$ |
2.05 |
|
US Gulf Coast high sulfur
diesel (per gallon) |
|
$ |
1.76 |
|
|
$ |
1.92 |
|
|
$ |
1.76 |
|
|
$ |
1.92 |
|
Natural gas (per MMBTU) |
|
$ |
2.41 |
|
|
$ |
3.72 |
|
|
$ |
2.53 |
|
|
$ |
3.07 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) For our Tyler and El Dorado refineries,
we compare our per barrel refining product margin to the Gulf Coast
5-3-2 crack spread consisting of WTI Cushing crude, U.S. Gulf Coast
CBOB and U.S, Gulf Coast Pipeline No. 2 heating oil (high sulfur
diesel). For our Big Spring refinery, we compare our per
barrel refined product margin to the Gulf Coast 3-2-1 crack spread
consisting of WTI Cushing crude, Gulf Coast 87 Conventional
gasoline and Gulf Coast ultra-low sulfur diesel, and for our Krotz
Springs refinery, we compare our per barrel refined product margin
to the Gulf Coast 2-1-1 crack spread consisting of LLS crude oil,
Gulf Coast 87 Conventional gasoline and U.S, Gulf Coast Pipeline
No. 2 heating oil (high sulfur diesel). The Tyler refinery's
crude oil input is primarily WTI Midland and east Texas, while the
El Dorado refinery's crude input is primarily a combination of WTI
Midland, local Arkansas and other domestic inland crude oil. The
Big Spring refinery’s crude oil input is primarily comprised of WTS
and WTI Midland. The Krotz Springs refinery’s crude oil input is
primarily comprised of LLS and WTI Midland.
Delek US
Holdings, Inc. |
Reconciliation of Refining Margin per barrel to Adjusted
Refining Margin per barrel (1) |
$ in
millions, except per share data |
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
(Unaudited) |
|
(Unaudited) |
Tyler
(2) |
|
|
|
|
|
|
|
|
Reported refining margin, $ per barrel |
|
$ |
11.09 |
|
|
$ |
7.19 |
|
|
$ |
14.09 |
|
|
$ |
11.88 |
|
Adjustments: |
|
|
|
|
|
|
|
|
LCM net inventory valuation
(benefit) loss |
|
(1.41 |
) |
|
5.33 |
|
|
(1.37 |
) |
|
1.32 |
|
RIN waiver |
|
— |
|
|
— |
|
|
(0.30 |
) |
|
— |
|
Biodiesel tax credit allocated
to refinery |
|
— |
|
|
— |
|
|
— |
|
|
(0.54 |
) |
|
|
|
|
|
|
|
|
|
Adjusted refining margin
$/bbl |
|
$ |
9.68 |
|
|
$ |
12.52 |
|
|
$ |
12.42 |
|
|
$ |
12.66 |
|
|
|
|
|
|
|
|
|
|
El Dorado
(3) |
|
|
|
|
|
|
|
|
Reported refining margin, $
per barrel |
|
$ |
5.15 |
|
|
$ |
7.74 |
|
|
$ |
7.38 |
|
|
$ |
8.64 |
|
Adjustments: |
|
|
|
|
|
|
|
|
LCM net inventory valuation
(benefit) loss |
|
(0.91 |
) |
|
0.67 |
|
|
(0.17 |
) |
|
0.15 |
|
RIN waiver |
|
— |
|
|
— |
|
|
(0.32 |
) |
|
(2.28 |
) |
Biodiesel tax credit allocated
to refinery |
|
— |
|
|
— |
|
|
— |
|
|
(0.23 |
) |
|
|
|
|
|
|
|
|
|
Adjusted refining margin
$/bbl |
|
$ |
4.24 |
|
|
$ |
8.41 |
|
|
$ |
6.89 |
|
|
$ |
6.28 |
|
|
|
|
|
|
|
|
|
|
Big Spring
(4) |
|
|
|
|
|
|
|
|
Reported refining margin, $
per barrel |
|
$ |
10.23 |
|
|
$ |
23.03 |
|
|
$ |
13.69 |
|
|
$ |
18.44 |
|
Adjustments: |
|
|
|
|
|
|
|
|
LCM net inventory valuation
(benefit) loss |
|
(0.17 |
) |
|
0.48 |
|
|
(0.13 |
) |
|
0.11 |
|
|
|
|
|
|
|
|
|
|
Adjusted refining margin
$/bbl |
|
$ |
10.06 |
|
|
$ |
23.51 |
|
|
$ |
13.56 |
|
|
$ |
18.55 |
|
|
|
|
|
|
|
|
|
|
Krotz Springs
(5) |
|
|
|
|
|
|
|
|
Reported refining margin, $
per barrel |
|
$ |
8.72 |
|
|
$ |
11.64 |
|
|
$ |
10.16 |
|
|
$ |
9.48 |
|
Adjustments: |
|
|
|
|
|
|
|
|
LCM net inventory valuation
(benefit) loss |
|
(0.74 |
) |
|
0.92 |
|
|
(0.27 |
) |
|
0.23 |
|
RIN waiver |
|
— |
|
|
— |
|
|
(0.19 |
) |
|
(1.10 |
) |
|
|
|
|
|
|
|
|
|
Adjusted refining margin
$/bbl |
|
$ |
7.98 |
|
|
$ |
12.56 |
|
|
$ |
9.70 |
|
|
$ |
8.61 |
|
|
|
|
|
|
|
|
|
|
(1) Adjusted refining margin per barrel is
presented to provide a measure to evaluate performance excluding
inventory valuation adjustments and other items at the individual
refinery level. Delek US believes that the presentation of adjusted
measures provides useful information to investors in assessing its
results of operations at each refinery. Because adjusted refining
margin per barrel may be defined differently by other companies in
its industry, Delek US' definition may not be comparable to
similarly titled measures of other companies.
(2) Tyler adjusted refining margins exclude the following
items.
Net inventory valuation
benefit/loss - There was approximately $9.9 million of
valuation benefit and $38.8 million of valuation loss in the fourth
quarter 2019 and 2018, respectively. There was approximately $38.2
million of valuation benefit and $37.9 million of valuation loss
for the year ended December 31, 2019 and 2018,
respectively. These amounts resulted from lower of cost or market
adjustments on LIFO inventory in the respective periods.
Biodiesel tax credit allocation
- There was approximately $15.4 million related to the 2017
retroactive biodiesel tax credit that was allocated to Tyler in the
first quarter of 2018 that is included in the renewables portion of
the refining segment for the year ended December 31, 2018.
RIN waiver - In August 2019,
the Tyler, Texas refinery received approval from the Environmental
Protection Agency for a small refinery exemption from the
requirements of the renewable fuel standard for the 2018 calendar
year. This waiver equated to a benefit of approximately $8.5
million recognized in the third quarter 2019.
(3) El Dorado adjusted refining margins exclude the
following items.
Net inventory valuation loss -
There was approximately $6.3 million of valuation benefit and $3.9
million of valuation loss in the fourth quarter 2019 and 2018,
respectively. There was approximately $3.8 million of valuation
benefit and $3.8 million of valuation loss for the year ended
December 31, 2019 and 2018, respectively. These amounts
resulted from lower of cost or market adjustments on FIFO inventory
in the respective periods.
RIN waiver - In August 2019,
the El Dorado, Arkansas refinery received approval from the
Environmental Protection Agency for a small refinery exemption from
the requirements of the renewable fuel standard for the 2018
calendar year. This waiver equated to a benefit of approximately
$7.4 million recognized in the third quarter 2019. In March
2018, the El Dorado refinery received approval from the
Environmental Protection Agency for a small refinery exemption from
the requirements of the renewable fuel standard for the 2017
calendar year. This waiver equated to a benefit of approximately
$59.3 million recognized in the first quarter 2018.
Biodiesel tax credit allocation
- There was approximately $6.0 million related to the 2017
retroactive biodiesel tax credit that was allocated to El Dorado in
the first quarter of 2018 that is included in the renewables
portion of the refining segment for the year ended
December 31, 2018.
(4) Big Spring adjusted refining margins exclude the
following items.
Net inventory valuation loss -
There was approximately $1.1 million of valuation benefit and $3.5
million of valuation loss in the fourth quarter 2019 and 2018,
respectively. There was approximately $3.5 million of
valuation benefit and $3.2 million of valuation loss for the year
ended December 31, 2019 and 2018, respectively. These amounts
resulted from lower of cost or market adjustments on FIFO inventory
in the respective periods.
(5) Krotz Springs adjusted refining margins exclude the
following items.
Net inventory valuation loss -
There was approximately $3.9 million of valuation benefit and $7.0
million of valuation loss in the fourth quarter 2019 and 2018,
respectively. There was approximately $7.0 million of valuation
benefit and $7.0 million of valuation loss for the year ended
December 31, 2019 and 2018, respectively. These amounts
resulted from lower of cost or market adjustments on FIFO inventory
in the respective periods.
RIN waiver - In August 2019,
the Krotz Springs, Louisiana refinery received approval from the
Environmental Protection Agency for a small refinery exemption from
the requirements of the renewable fuel standard for the 2018
calendar year. This waiver equated to a benefit of approximately
$4.9 million recognized in the third quarter 2019. In March 2018,
the Krotz Springs refinery received approval from the Environmental
Protection Agency for a small refinery exemption from the
requirements of the renewable fuel standard for the 2017 calendar
year. This waiver equated to a benefit of approximately $31.6
million recognized in the first quarter 2018.
Logistics
Segment |
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
(Unaudited) |
|
(Unaudited) |
Pipelines &
Transportation: (average bpd) |
|
|
|
|
|
|
|
|
Lion Pipeline System: |
|
|
|
|
|
|
|
|
Crude pipelines (non-gathered) |
|
55,521 |
|
|
45,416 |
|
|
42,918 |
|
|
51,992 |
|
Refined products pipelines |
|
53,960 |
|
|
41,496 |
|
|
37,716 |
|
|
45,728 |
|
SALA Gathering System |
|
30,917 |
|
|
15,536 |
|
|
21,869 |
|
|
16,571 |
|
East Texas Crude Logistics System |
|
16,612 |
|
|
13,602 |
|
|
19,927 |
|
|
15,696 |
|
|
|
|
|
|
|
|
|
|
Wholesale Marketing
& Terminalling: |
|
|
|
|
|
|
|
|
East Texas - Tyler Refinery sales volumes (average bpd) (1) |
|
73,016 |
|
|
77,896 |
|
|
74,206 |
|
|
77,487 |
|
West Texas marketing throughputs (average bpd) |
|
9,972 |
|
|
12,938 |
|
|
11,075 |
|
|
13,323 |
|
West Texas gross margin per barrel |
|
$ |
3.12 |
|
|
$ |
4.60 |
|
|
$ |
4.44 |
|
|
$ |
5.57 |
|
Big Spring Marketing - Refinery sales volume (average bpd) (for
period owned) (2) |
|
79,985 |
|
|
84,135 |
|
|
82,695 |
|
|
81,117 |
|
Terminalling throughputs (average bpd) (3) |
|
160,298 |
|
|
164,028 |
|
|
160,075 |
|
|
161,284 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Excludes jet fuel and petroleum coke.
(2) Throughputs for the year ended
December 31, 2018 are for the 306 days we marketed certain
finished products produced at or sold from the Big Spring Refinery
following the execution of the Big Spring Marketing Agreement,
effective March 1, 2018.
(3) Consists of terminalling throughputs at our
Tyler, Big Spring, Big Sandy and Mount Pleasant, Texas, our El
Dorado and North Little Rock, Arkansas and our Memphis and
Nashville, Tennessee terminals. Throughputs for the Big Spring
terminal are for the 306 days we operated the terminal following
its acquisition effective March 1, 2018. Barrels per day are
calculated for only the days we operated each terminal. Total
throughput for the year ended December 31, 2018 was 56.6
million barrels, which averaged 155,193 barrels per day for the
period.
Retail
Segment |
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
(Unaudited) |
|
(Unaudited) |
Number of stores (end of
period) |
|
252 |
|
|
279 |
|
|
252 |
|
|
279 |
|
Average number of stores |
|
258 |
|
|
295 |
|
|
266 |
|
|
295 |
|
Retail fuel sales (thousands
of gallons) |
|
51,518 |
|
|
53,309 |
|
|
214,094 |
|
|
217,118 |
|
Average retail gallons per
average number of stores (in thousands) |
|
205 |
|
|
197 |
|
|
827 |
|
|
801 |
|
Retail fuel margin ($ per gallon) (1) |
|
$ |
0.29 |
|
|
$ |
0.30 |
|
|
$ |
0.28 |
|
|
$ |
0.24 |
|
Merchandise sales (in
millions) |
|
$ |
72.9 |
|
|
$ |
81.0 |
|
|
$ |
313.1 |
|
|
$ |
339.0 |
|
Merchandise sales per average
number of stores (in millions) |
|
$ |
0.3 |
|
|
$ |
0.3 |
|
|
$ |
1.2 |
|
|
$ |
1.1 |
|
Merchandise margin % |
|
30.6 |
% |
|
30.2 |
% |
|
30.8 |
% |
|
30.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Same-Store Comparison |
|
Three Months Ended December 31, 2019 |
|
Three Months Ended December 31, 2018 |
|
Year Ended December 31, 2019 |
Change in same-store fuel gallons sold (2) |
|
2.4 |
% |
|
0.1 |
% |
|
2.9 |
% |
Change in same-store
merchandise sales(2) |
|
0.5 |
% |
|
(0.7 |
)% |
|
(1.0 |
)% |
|
|
|
|
|
|
|
|
|
|
(1) Retail fuel margin represents gross
margin on fuel sales in the retail segment, and is calculated as
retail fuel sales revenue less retail fuel cost of sales. The
retail fuel margin per gallon calculation is derived by dividing
retail fuel margin by the total retail fuel gallons sold for the
period.
(2) Same-store comparisons include
period-over-period increases or decreases in specified metrics for
stores that were in service at both the beginning of the earliest
period and the end of the most recent period used in the
comparison.
Delek US Holdings,
Inc. |
|
|
|
|
|
|
|
|
Reconciliation of
Amounts Reported Under U.S. GAAP |
|
|
|
|
|
|
|
|
$ in
millions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
Reconciliation of Net Income (Loss) attributable to Delek
to Adjusted Net Income |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
(Unaudited) |
|
(Unaudited) |
Reported net income attributable to Delek |
|
$ |
32.7 |
|
|
$ |
121.6 |
|
|
$ |
310.6 |
|
|
$ |
340.1 |
|
|
|
|
|
|
|
|
|
|
Adjustments |
|
|
|
|
|
|
|
|
Net inventory valuation
(benefit) loss |
|
(20.8 |
) |
|
53.4 |
|
|
(52.3 |
) |
|
51.3 |
|
Tax effect of inventory
valuation |
|
4.5 |
|
|
(11.6 |
) |
|
11.4 |
|
|
(11.1 |
) |
Net after tax inventory
valuation loss (benefit) |
|
(16.3 |
) |
|
41.8 |
|
|
(40.9 |
) |
|
40.2 |
|
|
|
|
|
|
|
|
|
|
Environmental indemnification
proceeds |
|
— |
|
|
(20.0 |
) |
|
— |
|
|
(20.0 |
) |
Tax effect of environmental
indemnification proceeds |
|
— |
|
|
4.5 |
|
|
— |
|
|
4.5 |
|
Net after tax environmental
indemnification proceeds |
|
— |
|
|
(15.5 |
) |
|
— |
|
|
(15.5 |
) |
|
|
|
|
|
|
|
|
|
Contract
termination/modification charges |
|
— |
|
|
6.2 |
|
|
— |
|
|
6.2 |
|
Tax effect of contract
termination/modification charges |
|
— |
|
|
(1.4 |
) |
|
— |
|
|
(1.4 |
) |
Net after tax contract
termination/modification charges |
|
— |
|
|
4.8 |
|
|
— |
|
|
4.8 |
|
|
|
|
|
|
|
|
|
|
Adjusted unrealized hedging
loss (gain) |
|
17.1 |
|
|
(27.1 |
) |
|
26.1 |
|
|
(28.6 |
) |
Tax effect of adjusted
unrealized hedging |
|
(3.8 |
) |
|
6.1 |
|
|
(5.9 |
) |
|
6.4 |
|
Net after tax adjusted
unrealized hedging loss (gain) |
|
13.3 |
|
|
(21.0 |
) |
|
20.2 |
|
|
(22.2 |
) |
|
|
|
|
|
|
|
|
|
Transaction related
expenses |
|
— |
|
|
0.9 |
|
|
— |
|
|
16.0 |
|
Tax effect of transaction
related expenses |
|
— |
|
|
(0.2 |
) |
|
— |
|
|
(3.4 |
) |
Net after tax transaction
related expenses |
|
— |
|
|
0.7 |
|
|
— |
|
|
12.6 |
|
|
|
|
|
|
|
|
|
|
Tax Cuts and Jobs Act
adjustment |
|
— |
|
|
(2.7 |
) |
|
— |
|
|
(0.6 |
) |
Tax effect of Tax Cuts and
Jobs Act adjustment |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Net after tax Tax Cuts and
Jobs Act adjustment |
|
— |
|
|
(2.7 |
) |
|
— |
|
|
(0.6 |
) |
|
|
|
|
|
|
|
|
|
Loss on extinguishment of
debt |
|
— |
|
|
— |
|
|
— |
|
|
9.1 |
|
Tax effect of loss on
extinguishment of debt |
|
— |
|
|
— |
|
|
— |
|
|
(2.1 |
) |
Net after tax loss on
extinguishment of debt |
|
— |
|
|
— |
|
|
— |
|
|
7.0 |
|
|
|
|
|
|
|
|
|
|
Impairment loss on assets held
for sale |
|
— |
|
|
— |
|
|
— |
|
|
27.5 |
|
Tax effect of impairment loss
on assets held for sale |
|
— |
|
|
— |
|
|
— |
|
|
(0.5 |
) |
Net after tax impairment loss
on assets held for sale |
|
— |
|
|
— |
|
|
— |
|
|
27.0 |
|
|
|
|
|
|
|
|
|
|
Gain on sale of the asphalt
business |
|
— |
|
|
(0.1 |
) |
|
— |
|
|
(13.3 |
) |
Tax effect of gain on sale of
the asphalt business |
|
— |
|
|
— |
|
|
— |
|
|
2.9 |
|
Net after tax gain on sale of
the asphalt business |
|
— |
|
|
(0.1 |
) |
|
— |
|
|
(10.4 |
) |
|
|
|
|
|
|
|
|
|
Retroactive biodiesel tax
credit (1) |
|
(36.0 |
) |
|
36.0 |
|
|
(36.0 |
) |
|
11.4 |
|
Tax effect of retroactive
biodiesel tax credit |
|
0.1 |
|
|
(0.1 |
) |
|
0.1 |
|
|
(0.1 |
) |
Net after tax retroactive
biodiesel tax credit |
|
(35.9 |
) |
|
35.9 |
|
|
(35.9 |
) |
|
11.3 |
|
|
|
|
|
|
|
|
|
|
Non-operating write-off of
pre-acquisition asset |
|
4.8 |
|
|
— |
|
|
4.8 |
|
|
— |
|
Tax effect of non-operating
write-off of pre-acquisition asset |
|
(1.1 |
) |
|
— |
|
|
(1.1 |
) |
|
— |
|
Net after tax of non-operating
write-off of pre-acquisition asset |
|
3.7 |
|
|
— |
|
|
3.7 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
Discontinued operations
(income) loss |
|
(7.6 |
) |
|
0.2 |
|
|
(6.6 |
) |
|
10.9 |
|
Tax effect of discontinued
operations |
|
1.6 |
|
|
— |
|
|
1.4 |
|
|
(2.2 |
) |
Net after tax discontinued
operations (income) loss |
|
(6.0 |
) |
|
0.2 |
|
|
(5.2 |
) |
|
8.7 |
|
|
|
|
|
|
|
|
|
|
Income attributable to
non-controlling interest of discontinued operations |
|
— |
|
|
— |
|
|
— |
|
|
10.5 |
|
Tax effect of income
attributable to non-controlling interest of discontinued
operations |
|
— |
|
|
— |
|
|
— |
|
|
(2.4 |
) |
Net after tax income
attributable to non-controlling interest of discontinued
operations |
|
— |
|
|
— |
|
|
— |
|
|
8.1 |
|
|
|
|
|
|
|
|
|
|
Tax adjustment related to
unrealizable deferred taxes created in Big Spring Asset
Acquisition |
|
— |
|
|
— |
|
|
— |
|
|
5.5 |
|
|
|
|
|
|
|
|
|
|
Total after tax
adjustments |
|
(41.2 |
) |
|
44.1 |
|
|
(58.1 |
) |
|
76.5 |
|
|
|
|
|
|
|
|
|
|
Adjusted net
(loss) income |
|
$ |
(8.5 |
) |
|
$ |
165.7 |
|
|
$ |
252.5 |
|
|
$ |
416.6 |
|
|
|
|
|
|
|
|
|
|
(1) The portion of the retroactive biodiesel tax
credit that was attributable to 2018 has been adjusted out of both
the three months and year ended December 31, 2019, and has been
added to the three months and year ended December 31, 2018 for
comparability. Additionally, the retroactive 2017 biodiesel tax
credit that was enacted during the first quarter of 2018 has been
adjusted out of the adjusted net income for the year ended December
31, 2018, also for comparability.
Delek US Holdings,
Inc. |
|
|
|
|
|
|
|
|
Reconciliation of
Amounts Reported Under U.S. GAAP |
|
|
|
|
|
|
|
|
per share
data |
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
Reconciliation of U.S. GAAP Income (Loss) per share to
Adjusted Net Income per share |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
Reported diluted income per share |
|
$ |
0.44 |
|
|
$ |
1.48 |
|
|
$ |
4.06 |
|
|
$ |
3.95 |
|
|
|
|
|
|
|
|
|
|
Adjustments, after tax
(per share) (1) |
|
|
|
|
|
|
|
|
Net inventory valuation
(benefit) loss |
|
(0.22 |
) |
|
0.51 |
|
|
(0.53 |
) |
|
0.46 |
|
Environmental indemnification
proceeds |
|
— |
|
|
(0.19 |
) |
|
— |
|
|
(0.18 |
) |
Contract
termination/modification charges |
|
— |
|
|
0.06 |
|
|
— |
|
|
0.06 |
|
Adjusted unrealized hedging
loss (gain) |
|
0.18 |
|
|
(0.25 |
) |
|
0.26 |
|
|
(0.26 |
) |
Transaction related
expenses |
|
— |
|
|
0.01 |
|
|
— |
|
|
0.15 |
|
Tax Cuts and Jobs Act
adjustment |
|
— |
|
|
(0.03 |
) |
|
— |
|
|
(0.01 |
) |
Impairment loss on assets held
for sale |
|
— |
|
|
— |
|
|
— |
|
|
0.31 |
|
Gain on sale of the asphalt
business |
|
— |
|
|
— |
|
|
— |
|
|
(0.12 |
) |
Loss on extinguishment of
debt |
|
— |
|
|
— |
|
|
— |
|
|
0.08 |
|
Retroactive biodiesel tax
credit |
|
(0.48 |
) |
|
0.44 |
|
|
(0.47 |
) |
|
0.13 |
|
Non-operating write-off of
pre-acquisition asset |
|
0.05 |
|
|
— |
|
|
0.05 |
|
|
— |
|
Discontinued operations
(income) loss |
|
(0.08 |
) |
|
— |
|
|
(0.07 |
) |
|
0.10 |
|
Net income attributable to
non-controlling interest of discontinued operations |
|
— |
|
|
— |
|
|
— |
|
|
0.09 |
|
Tax adjustment related to
unrealizable deferred taxes created in Big Spring Asset
Acquisition |
|
— |
|
|
— |
|
|
— |
|
|
0.07 |
|
|
|
|
|
|
|
|
|
|
Total adjustments |
|
(0.55 |
) |
|
0.55 |
|
|
(0.76 |
) |
|
0.88 |
|
Adjustment for economic
benefit of note hedge related to Senior Convertible Notes (2) |
|
— |
|
|
— |
|
|
— |
|
|
0.09 |
|
Adjusted net (loss) income per share |
|
$ |
(0.11 |
) |
|
$ |
2.03 |
|
|
$ |
3.30 |
|
|
$ |
4.92 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The tax calculation is based on the
appropriate marginal income tax rate related to each adjustment and
for each respective time period, which is applied to the adjusted
items in the calculation of adjusted net income in all periods.
(2) Delek US had a convertible note hedge
transaction in effect to offset the economic dilution of the
additional shares from the Convertible Notes that matured on
September 17, 2018.
Delek US Holdings,
Inc. |
|
|
|
|
|
|
|
|
Reconciliation of
Amounts Reported Under U.S. GAAP |
|
|
|
|
|
|
|
|
$ in
millions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
Reconciliation of Net
Income attributable to Delek to Adjusted EBITDA |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
(Unaudited) |
|
(Unaudited) |
Reported net income attributable to Delek |
|
$ |
32.7 |
|
|
$ |
121.6 |
|
|
$ |
310.6 |
|
|
$ |
340.1 |
|
|
|
|
|
|
|
|
|
|
Add: |
|
|
|
|
|
|
|
|
Interest expense, net |
|
33.4 |
|
|
27.9 |
|
|
119.8 |
|
|
120.1 |
|
Loss on extinguishment of
debt |
|
— |
|
|
— |
|
|
— |
|
|
9.1 |
|
Income tax expense -
continuing operations |
|
(12.1 |
) |
|
29.6 |
|
|
71.7 |
|
|
101.9 |
|
Depreciation and
amortization |
|
47.6 |
|
|
53.0 |
|
|
194.3 |
|
|
199.4 |
|
EBITDA |
|
101.6 |
|
|
232.1 |
|
|
696.4 |
|
|
770.6 |
|
|
|
|
|
|
|
|
|
|
Adjustments |
|
|
|
|
|
|
|
|
Net inventory valuation
(benefit) loss |
|
(20.8 |
) |
|
53.4 |
|
|
(52.3 |
) |
|
51.3 |
|
Environmental indemnification
proceeds |
|
— |
|
|
(20.0 |
) |
|
— |
|
|
(20.0 |
) |
Contract termination
charges |
|
— |
|
|
6.2 |
|
|
— |
|
|
6.2 |
|
Adjusted unrealized hedging
loss (gain) |
|
17.1 |
|
|
(27.1 |
) |
|
26.1 |
|
|
(28.6 |
) |
Transaction related
expenses |
|
— |
|
|
0.9 |
|
|
— |
|
|
16.0 |
|
Impairment loss on assets held
for sale |
|
— |
|
|
— |
|
|
— |
|
|
27.5 |
|
Gain on sale of the asphalt
business |
|
— |
|
|
(0.1 |
) |
|
— |
|
|
(13.3 |
) |
Retroactive biodiesel tax
credit (1) |
|
(36.0 |
) |
|
36.0 |
|
|
(36.0 |
) |
|
11.4 |
|
Non-operating write-off of
pre-acquisition asset |
|
4.8 |
|
|
— |
|
|
4.8 |
|
|
— |
|
Discontinued operations
(income) loss, net of tax |
|
(6.0 |
) |
|
0.2 |
|
|
(5.2 |
) |
|
8.7 |
|
Net income attributable to
non-controlling interest |
|
5.3 |
|
|
5.8 |
|
|
25.6 |
|
|
34.8 |
|
Total adjustments |
|
(35.6 |
) |
|
55.3 |
|
|
(37.0 |
) |
|
94.0 |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ |
66.0 |
|
|
$ |
287.4 |
|
|
$ |
659.4 |
|
|
$ |
864.6 |
|
|
|
|
|
|
|
|
|
|
(1) The portion of the retroactive biodiesel tax
credit that was attributable to 2018 has been adjusted out of both
the three months and year ended December 31, 2019, and has been
added to the three months and year ended December 31, 2018 for
comparability. Additionally, the retroactive 2017 biodiesel tax
credit that was enacted during the first quarter of 2018 has been
adjusted out of the adjusted net income for the year ended December
31, 2018, also for comparability.
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
Reconciliation of Refining Segment Gross Margin to Refining
Margin |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
(Unaudited) |
(Unaudited) |
Net revenues |
|
$ |
2,161.9 |
|
|
$ |
2,292.0 |
|
|
$ |
8,798.5 |
|
|
$ |
9,610.4 |
|
Cost of sales |
|
2,035.8 |
|
|
2,091.3 |
|
|
8,171.2 |
|
|
8,879.0 |
|
Gross margin |
|
126.1 |
|
|
200.7 |
|
|
627.3 |
|
|
731.4 |
|
Add back (items included in
cost of sales): |
|
|
|
|
|
|
|
|
Operating expenses (excluding
depreciation and amortization) |
|
135.7 |
|
|
118.7 |
|
|
492.4 |
|
|
465.4 |
|
Depreciation and
amortization |
|
35.4 |
|
|
34.6 |
|
|
134.3 |
|
|
133.7 |
|
Refining margin |
|
$ |
297.2 |
|
|
$ |
354.0 |
|
|
$ |
1,254.0 |
|
|
$ |
1,330.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
Reconciliation of Unrealized (Gains) Losses on Economic
Hedge Commodity Derivatives Not Designated as Hedges to Adjusted
Unrealized Hedging (Gains) Losses |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
(Unaudited) |
(Unaudited) |
Unrealized loss (gain) on economic hedge commodity derivatives not
designated as hedges |
|
$ |
10.9 |
|
|
$ |
(29.3 |
) |
|
$ |
41.0 |
|
|
$ |
(32.1 |
) |
Less: Net effect of settlement
timing differences |
|
|
|
|
|
|
|
|
Portion of current period unrealized loss (gain) where the
instrument has matured but has not cash settled as of period
end |
|
6.8 |
|
|
(8.1 |
) |
|
6.8 |
|
|
(8.1 |
) |
Less: Prior period unrealized loss (gain) where the instrument had
matured but had not cash settled as of prior period end |
|
13.0 |
|
|
(5.9 |
) |
|
(8.1 |
) |
|
(4.6 |
) |
Total net effect of settlement
timing differences |
|
(6.2 |
) |
|
(2.2 |
) |
|
14.9 |
|
|
(3.5 |
) |
Adjusted unrealized hedging
losses (gains) |
|
$ |
17.1 |
|
|
$ |
(27.1 |
) |
|
$ |
26.1 |
|
|
$ |
(28.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor/Media Relations Contacts:Blake
Fernandez, Senior Vice President of Investor Relations and Market
Intelligence, 615-224-1312Jeb Bachmann, Manager of Investor
Relations and Market Intelligence, 615-224-1118Lenny Raymond,
Manager of Investor Relations and Market Intelligence,
615-224-0828
Keith Johnson, Vice President of Investor Relations,
615-435-1366
Media/Public Affairs Contact:Michael P. Ralsky,
Vice President - Government Affairs, Public Affairs &
Communications, 615-435-1407
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