Delek US Announces Repurchase of 2.0 million Shares from Affiliates of Alon Israel
January 23 2018 - 5:00PM
Delek US Holdings, Inc. (NYSE:DK) (“Delek”) announced today that it
closed a transaction to repurchase 2.0 million shares of Delek
common stock from Alon Israel Oil Company, Ltd. (“Alon Israel”) in
connection with Delek’s rights pursuant to a Stock Purchase
Agreement dated April 14, 2015 (the “SPA”), by and between Delek
and Alon Israel. Alon Israel delivered a ROFO Notice (as defined in
the SPA) to Delek on January 16, 2018 informing Delek of Alon
Israel’s intention to sell the 2.0 million shares, and Delek
accepted such offer on January 17, 2018. The total purchase price
was approximately $75.3 million, or $37.64 per share. Following
this repurchase, there is approximately $43.0 million remaining
under Delek US’ $150.0 million share repurchase authorization.
Uzi Yemin, Chairman, President and Chief
Executive Officer of Delek said, “We are committed to using our
financial flexibility to return cash to our shareholders and began
repurchasing shares during the fourth quarter 2017. Including this
transaction, approximately 3.0 million shares have been repurchased
for approximately $107.0 million. Going forward, we expect to
continue to return cash to shareholders as part of our capital
allocation program based on our financial flexibility and operating
performance.”
About Delek US Holdings,
Inc.Delek is a diversified downstream energy company with
assets in petroleum refining, logistics, asphalt, 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. As of July 1,
2017, Delek, through its subsidiaries, owns 100 percent of the
general partner and 81.6 percent of the limited partner interest in
Alon USA Partners, LP (NYSE:ALDW), which owns the crude oil
refinery in Big Spring, Texas, with a crude oil throughput capacity
of 73,000 barrels per day and an integrated wholesale marketing
business.
The logistics operations primarily consist of
Delek Logistics Partners, LP (NYSE:DKL). Delek and its affiliates
also own approximately 63 percent (including the 2 percent 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 asphalt operations consist of owned or
operated asphalt terminals serving markets from Tennessee to the
West Coast through a combination of non-blended asphalt purchased
from third parties and production at the Big Spring, Texas and El
Dorado, Arkansas refineries. The renewables operations consist of
plants in Texas and Arkansas that produce biodiesel fuel.
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 the repurchase by Delek of 2.0 million shares
and the terms and timing thereof, repurchase of Delek shares up to
$150.0 million or at all, our ability to return cash to
shareholders, future operating performance, financial flexibility
and our usage thereof, our ability to repurchase shares during 2018
or at all, and other factors.
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 undertakes no obligation to update or revise any such
forward-looking statements, except as required by applicable law or
regulation.
Contact:U.S. Investor / Media
Relations Contact:Keith JohnsonDelek US Holdings, Inc.Vice
President of Investor Relations615-435-1366
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