Delek US Announces $100 million Share Repurchase Plan for Third Quarter 2018
September 06 2018 - 5:16PM
Delek US Holdings, Inc. (NYSE: DK) (“Delek US”) today announced it
expects to complete a $100.0 million 10b5-1 repurchase plan of
Delek US shares in the third quarter 2018 subject to 10b5-1 volume
limitations. During the third quarter, approximately $30.0 million
of shares were repurchased through the end of August 2018.
Uzi Yemin, Chairman, President and Chief
Executive Officer of Delek said, “We believe that Delek US is well
positioned to benefit from the trends in the market with the
current Midland to Brent crude oil differential and has the ability
to generate significant cash flow that builds on our strong
financial position. We believe this further supports our commitment
to utilizing our financial flexibility through our disciplined
approach to capital allocation to return cash to our shareholders
while investing in our business. Taking into consideration the
total share repurchases including this announcement, we expect to
have repurchased approximately $215 million of Delek US stock, or
approximately 5.0% of current market capitalization on a
year-to-date basis by the end of September.”
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. Delek US Holdings, Inc. and its affiliates own
approximately 63% (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. The convenience store retail business is the
largest 7-Eleven licensee in the United States and operates
approximately 300 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
forward-looking statements include, but are not limited to,
statements regarding share repurchases; 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: risks
and uncertainties related to the ability to successfully integrate
the businesses of Delek US and Alon USA Energy, Inc.; risks related
to disruption of management time from ongoing business operations
due to the integration implementation; the risk that the combined
company may be unable to fully achieve anticipated cost-cutting
synergies or it may take longer than expected to achieve those
synergies; 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; the ability to close the pipeline joint
venture, obtain commitments and construct the pipeline, 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; 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
affecting the southern United States; 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, except as required by applicable law or
regulation.
Investor Relations
Contact:Keith JohnsonVice President of Investor
RelationsDelek US Holdings, Inc.615-435-1366
Media/Public Affairs
Contact:Michael P. RalskyVice President - Government
Affairs, Public Affairs & CommunicationsDelek US Holdings,
Inc.615-435-1407
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