BRENTWOOD, Tenn., Feb. 23, 2021 /PRNewswire/ -- Delek US
Holdings, Inc. (NYSE: DK) ("Delek US") today announced financial
results for its fourth quarter ended December 31, 2020. Delek US reported a fourth
quarter 2020 net loss of $(293.2)
million, or $(3.98) per share,
versus net income of $32.7 million,
or $0.44 per diluted share, for the
quarter ended December 31, 2019. On
an adjusted basis, which excludes the impact of a goodwill
impairment of $126 million (pre-tax),
Delek US reported an Adjusted net loss of $(204.0) million, or $(2.77) per share, for the fourth quarter 2020.
This compares to Adjusted net loss of $(8.6)
million, or $(0.11) per share,
in the prior-year. Adjusted earnings before interest, taxes,
depreciation and amortization ("Adjusted EBITDA") was $(137.6) million for the fourth quarter compared
to Adjusted EBITDA of $65.4 million
in the prior year. Reconciliations of net income (loss) reported
under U.S. GAAP to Adjusted net income (loss) and Adjusted EBITDA
are included in the financial tables attached to this release.
Adjusted quarterly results include approximately $(38.1) million (after-tax), or $(0.52) per share, of headwinds which is
comprised of the following: a net unfavorable impact of
$(9.1) million pre-tax from a
combination of negative "other inventory impact" partially offset
by profit on the sale of purchased products. These items are
outlined in the tables on page 14. There are additional inventory
hedging losses in the amount of $(21.0)
million pre-tax, outlined by segment in the table on page
10. Also included in results were approximately $(19.0) million pre-tax, or ($0.20) per share (after-tax) of accelerated
depreciation related to asset rationalization.
Uzi Yemin, Chairman, President
and Chief Executive Officer of Delek US, stated, "Delek remains
well positioned entering 2021, supported by cost and capital
reduction initiatives. COVID-19 vaccinations should lead to an
improving macro backdrop and Delek is positioned to benefit with no
planned turnaround activity in the second half of the year. Our 80%
ownership in DKL continues to perform well, with the company
forecasting another 5% distribution increase in 2021. In renewable
diesel, we established a 'capital light' approach by retaining a
low-cost option of $13 million to
acquire a one-third economic interest in GCE Holdings Acquisitions,
which indirectly owns and operates the Bakersfield, CA refinery. The retail segment
has offered stability but also provides strong growth potential
underpinned by attractive returns relative to other areas within
energy."
Mr. Yemin continued, "We are excited about the addition of
Laurie Tolson to our board, who
brings a strong technology background. We believe implementation of
advanced technologies can further enhance efficiencies and
reliability in our business over the medium to longer term, and
look forward to leveraging Ms. Tolson's experience as we continue
these efforts."
Liquidity
As of December 31,
2020, Delek US had a cash balance of $787.5 million and total consolidated long-term
debt of $2,348.4 million, resulting
in net debt of $1,560.9
million. As of December 31,
2020, Delek Logistics Partners, LP (NYSE: DKL) ("Delek
Logistics") had $992.3 million of
total debt and $4.2 million of cash,
which is included in the consolidated amounts on Delek US' balance
sheet. Excluding Delek Logistics, Delek US had approximately
$783.3 million in cash and
$1,356.1 million of debt, or a
$572.8 million net debt position. We
recorded a federal income tax receivable totaling $156 million as of December 31, 2020, related to the federal net
operating loss carryback, of which we expect to collect
approximately $136 million in the
first half of 2021.
1|
Refining Segment
Refining contribution margin
decreased to $(82.0) million in the
fourth quarter 2020 from $127.8
million in the fourth quarter 2019. Adjusted refining
contribution margin was $(126.9)
million in the fourth quarter 2020 compared to $88.8 million in the fourth quarter 2019. The
current period adjusted refining contribution margin reflects
$(13.6) million of unfavorable other
inventory impact, $4.5 million of
gains related to the sale of purchased product, and $(24.3) million additional inventory hedging
losses, coupled with a $(4.1) million
loss from fixed price crude cost transactions. Other inventory
impacts, aside from lower of cost or market/net realizable value
("LCM"), are outlined by refinery in the tables on page 16.
On a year-over-year basis, results were reduced primarily due to
lower crude oil differentials and crack spreads as a result of
decreased demand due to COVID-19. During the fourth quarter 2020,
Delek US's benchmark crack spreads were down an average of
approximately 48.5% from prior-year levels. Additionally, the
realized Midland-Cushing crude oil premium was $0.15 per barrel compared to a realized discount
of $0.37 per barrel in the prior-year
period. These factors were partially offset by the crude oil
futures market that was in contango of $0.35 per barrel in the fourth quarter 2020
compared to backwardation of $0.09
per barrel in the fourth quarter 2019.
Logistics Segment
The logistics segment contribution
margin in the fourth quarter 2020 was $62.2
million compared to $42.5
million in the fourth quarter 2019. Results improved on a
year-over-year basis primarily due to the drop down of the Big
Spring Gathering System and Trucking Assets, increased crude
gathering, and a reduction in operating expenses by $7.5 million due to a decrease in contract
services and a lack of environmental remediation costs that were
incurred in 2019. These items were partially offset by lower
revenue in the West Texas
wholesale business.
Retail Segment
For the fourth quarter 2020,
contribution margin was $12.7 million
compared to $12.1 million in the
prior-year period for the retail segment. Merchandise sales were
approximately $75.9 million with an
average retail margin of 30.1% in the fourth quarter 2020, compared
to merchandise sales of approximately $72.9
million with an average retail margin of 30.6% in the
prior-year period. Approximately 41.5 million retail fuel gallons
were sold at an average margin of $0.33 per gallon in the fourth quarter 2020
compared to 51.5 million retail fuel gallons sold at an average
margin of $0.29 per gallon in the
fourth quarter 2019. In the fourth quarter 2020, the average
merchandise store count was 253 compared to 258 in the prior-year
period. On a same store sales basis in the fourth quarter 2020,
merchandise sales increased 2.2% and fuel gallons sold decreased
22.7% compared to the prior-year period.
Corporate/Other
Contribution margin from
Corporate/Other was a loss of $25.4
million in the fourth quarter 2020 compared to a loss of
$11.0 million in the prior-year
period. Hedging gains (losses) related to the refining segment have
been reclassified from the Corporate/Other segment to the refining
segment beginning in the first quarter of 2020 and have been
retrospectively reclassified in 2019 for comparison purposes.
The Wink to Webster crude oil pipeline, in which Delek US
has an indirect investment stake through our 50% equity ownership
in a financing joint venture with MPLX, continues progressing, with
segments and assets expected to come on-line throughout 2021.The
Midland-to-Webster segment of the Wink to Webster Pipeline System was
commissioned in January 2021, and is
now operating. The 36-inch diameter pipeline, which is underpinned
by a significant volume of long-term commitments, will originate in
the Permian Basin and have destination points in the Houston market.
Fourth Quarter 2020 Results | Conference Call
Information
Delek US will hold a conference call to discuss
its fourth quarter 2020 results on Wednesday, February 24, 2021 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.
Investors may also wish to listen to Delek Logistics' (NYSE:
DKL) fourth quarter 2020 earnings conference call that will be held
on Wednesday, February 24, 2021 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.
2|
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 80% (including the 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 253
convenience stores in central and West
Texas and New Mexico.
Safe Harbor Provisions Regarding Forward-Looking
Statements
This 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; cost reductions; 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, including
uncertainties regarding future decisions by OPEC regarding
production and pricing disputes between OPEC members and
Russia; uncertainty relating to
the impact of the COVID-19 outbreak on the demand for crude oil,
refined products and transportation and storage services; Delek US'
ability to realize cost reductions; 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; 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.
3|
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:
- Adjusting items - certain identified infrequently occurring
items, non-cash items, and items that are not attributable to or
indicative of our on-going operations or that may obscure our
underlying results and trends;
- Adjusted net income (loss) - calculated as net income
attributable to Delek US adjusted for relevant Adjusting items
recorded during the period;
- 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
relevant 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;
- Adjusted segment contribution margin - calculated as Segment
contribution margin adjusted for the identified Adjusting Items in
Adjusted net income (loss) that impact Segment contribution
margin;
- 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 the relevant identified Adjusting items in Adjusted
net income (loss) that impact refining margin and that, where
applicable, can be identified and/or are measured and recognized at
the refinery level;
- 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
relevant comparability between periods, to peers or to market
metrics through the inclusion of retroactive regulatory or other
adjustments as if they had occurred in the prior periods they
relate to, or 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, and Adjusted Segment Contribution Margin 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.
4|
Delek US Holdings,
Inc.
|
Condensed
Consolidated Balance Sheets (Unaudited)
|
(In millions,
except share and per share data)
|
|
|
December 31,
2020
|
|
December 31,
2019
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
787.5
|
|
|
$
|
955.3
|
|
Accounts receivable,
net
|
|
527.9
|
|
|
792.6
|
|
Inventories, net of
inventory valuation reserves
|
|
727.7
|
|
|
946.7
|
|
Other current
assets
|
|
256.4
|
|
|
268.7
|
|
Total current
assets
|
|
2,299.5
|
|
|
2,963.3
|
|
Property, plant and
equipment:
|
|
|
|
|
Property, plant and
equipment
|
|
3,519.5
|
|
|
3,362.8
|
|
Less: accumulated
depreciation
|
|
(1,152.3)
|
|
|
(934.5)
|
|
Property, plant and
equipment, net
|
|
2,367.2
|
|
|
2,428.3
|
|
Operating lease
right-of-use assets
|
|
182.0
|
|
|
183.6
|
|
Goodwill
|
|
729.7
|
|
|
855.7
|
|
Other intangibles,
net
|
|
107.8
|
|
|
110.3
|
|
Equity method
investments
|
|
363.6
|
|
|
407.3
|
|
Other non-current
assets
|
|
84.3
|
|
|
67.8
|
|
Total
assets
|
|
$
|
6,134.1
|
|
|
$
|
7,016.3
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
|
1,144.0
|
|
|
$
|
1,599.7
|
|
Current portion of
long-term debt
|
|
33.4
|
|
|
36.4
|
|
Obligation under
Supply and Offtake Agreements
|
|
129.2
|
|
|
332.5
|
|
Current portion of
operating lease liabilities
|
|
50.2
|
|
|
40.5
|
|
Accrued expenses and
other current liabilities
|
|
546.4
|
|
|
346.8
|
|
Total current
liabilities
|
|
1,903.2
|
|
|
2,355.9
|
|
Non-current
liabilities:
|
|
|
|
|
Long-term debt, net of
current portion
|
|
2,315.0
|
|
|
2,030.7
|
|
Obligation under
Supply and Offtake Agreements
|
|
224.9
|
|
|
144.8
|
|
Environmental
liabilities, net of current portion
|
|
107.4
|
|
|
137.9
|
|
Asset retirement
obligations
|
|
37.5
|
|
|
68.6
|
|
Deferred tax
liabilities
|
|
255.5
|
|
|
267.9
|
|
Operating lease
liabilities, net of current portion
|
|
131.8
|
|
|
144.3
|
|
Other non-current
liabilities
|
|
33.7
|
|
|
30.9
|
|
Total non-current
liabilities
|
|
3,105.8
|
|
|
2,825.1
|
|
Stockholders'
equity:
|
|
|
|
|
Preferred stock, $0.01
par value, 10,000,000 shares authorized, no shares issued and
outstanding
|
|
—
|
|
|
—
|
|
Common stock, $0.01
par value, 110,000,000 shares authorized, 91,356,868 shares
and 90,987,025 shares issued at December 31, 2020 and 2019,
respectively
|
|
0.9
|
|
|
0.9
|
|
Additional paid-in
capital
|
|
1,185.1
|
|
|
1,151.9
|
|
Accumulated other
comprehensive (loss) income
|
|
(7.2)
|
|
|
0.1
|
|
Treasury stock,
17,575,527 shares and 17,516,814 shares, at cost, as of December
31, 2020 and 2019,
respectively
|
|
(694.1)
|
|
|
(692.2)
|
|
Retained
earnings
|
|
522.0
|
|
|
1,205.6
|
|
Non-controlling
interests in subsidiaries
|
|
118.4
|
|
|
169.0
|
|
Total stockholders'
equity
|
|
1,125.1
|
|
|
1,835.3
|
|
Total liabilities and
stockholders' equity
|
|
$
|
6,134.1
|
|
|
$
|
7,016.3
|
|
5|
Delek US Holdings,
Inc.
|
Condensed
Consolidated Statements of Income (Unaudited)
|
(In millions,
except share and per share data)
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
$
|
1,882.2
|
|
|
$
|
2,283.7
|
|
|
$
|
7,301.8
|
|
|
$
|
9,298.2
|
|
Cost of
sales:
|
|
|
|
|
|
|
|
|
Cost of materials and
other
|
|
1,776.9
|
|
|
1,926.0
|
|
|
6,841.2
|
|
|
7,657.2
|
|
Operating expenses
(excluding depreciation and amortization presented
below)
|
|
113.7
|
|
|
161.8
|
|
|
462.0
|
|
|
580.2
|
|
Depreciation and
amortization
|
|
81.6
|
|
|
45.0
|
|
|
241.6
|
|
|
170.7
|
|
Total cost of
sales
|
|
1,972.2
|
|
|
2,132.8
|
|
|
7,544.8
|
|
|
8,408.1
|
|
Operating expenses
related to retail and wholesale business
(excluding depreciation and amortization presented
below)
|
|
24.1
|
|
|
24.5
|
|
|
97.8
|
|
|
102.0
|
|
General and
administrative expenses
|
|
63.9
|
|
|
77.4
|
|
|
248.3
|
|
|
274.7
|
|
Depreciation and
amortization
|
|
8.6
|
|
|
2.6
|
|
|
26.0
|
|
|
23.6
|
|
Impairment of
goodwill
|
|
126.0
|
|
|
—
|
|
|
126.0
|
|
|
—
|
|
Other operating
expense (income), net
|
|
1.5
|
|
|
(1.8)
|
|
|
(13.1)
|
|
|
(2.5)
|
|
Total operating costs
and expenses
|
|
2,196.3
|
|
|
2,235.5
|
|
|
8,029.8
|
|
|
8,805.9
|
|
Operating (loss)
income
|
|
(314.1)
|
|
|
48.2
|
|
|
(728.0)
|
|
|
492.3
|
|
Interest
expense
|
|
31.0
|
|
|
35.7
|
|
|
129.0
|
|
|
131.1
|
|
Interest
income
|
|
(0.2)
|
|
|
(2.3)
|
|
|
(3.3)
|
|
|
(11.3)
|
|
Income from equity
method investments
|
|
(1.7)
|
|
|
(5.9)
|
|
|
(30.3)
|
|
|
(34.3)
|
|
Gain on sale on
non-operating refinery
|
|
—
|
|
|
—
|
|
|
(56.8)
|
|
|
—
|
|
Other (income)
expense, net
|
|
(0.1)
|
|
|
0.8
|
|
|
(3.5)
|
|
|
4.1
|
|
Total non-operating
expense, net
|
|
29.0
|
|
|
28.3
|
|
|
35.1
|
|
|
89.6
|
|
(Loss) income before
income tax (benefit) expense
|
|
(343.1)
|
|
|
19.9
|
|
|
(763.1)
|
|
|
402.7
|
|
Income tax (benefit)
expense
|
|
(58.1)
|
|
|
(12.1)
|
|
|
(192.7)
|
|
|
71.7
|
|
(Loss) income from
continuing operations, net of tax
|
|
(285.0)
|
|
|
32.0
|
|
|
(570.4)
|
|
|
331.0
|
|
Discontinued
operations:
|
|
|
|
|
|
|
|
|
Income from
discontinued operations, including loss on sale of
discontinued operations
|
|
—
|
|
|
7.6
|
|
|
—
|
|
|
6.6
|
|
Income tax
expense
|
|
—
|
|
|
1.6
|
|
|
—
|
|
|
1.4
|
|
Income from
discontinued operations, net of tax
|
|
—
|
|
|
6.0
|
|
|
—
|
|
|
5.2
|
|
Net (loss)
income
|
|
(285.0)
|
|
|
38.0
|
|
|
(570.4)
|
|
|
336.2
|
|
Net income attributed
to non-controlling interests
|
|
8.2
|
|
|
5.3
|
|
|
37.6
|
|
|
25.6
|
|
Net (loss) income
attributable to Delek
|
|
$
|
(293.2)
|
|
|
$
|
32.7
|
|
|
$
|
(608.0)
|
|
|
$
|
310.6
|
|
|
|
|
|
|
|
|
|
|
Basic (loss) income
per share:
|
|
|
|
|
|
|
|
|
(Loss) income from
continuing operations
|
|
$
|
(3.98)
|
|
|
$
|
0.36
|
|
|
$
|
(8.26)
|
|
|
$
|
4.03
|
|
Income from
discontinued operations
|
|
—
|
|
|
0.08
|
|
|
$
|
—
|
|
|
$
|
0.07
|
|
Basic (loss) income
per share
|
|
$
|
(3.98)
|
|
|
$
|
0.44
|
|
|
$
|
(8.26)
|
|
|
$
|
4.10
|
|
|
|
|
|
|
|
|
|
|
Diluted (loss) income
per share:
|
|
|
|
|
|
|
|
|
(Loss) income from
continuing operations
|
|
$
|
(3.98)
|
|
|
$
|
0.36
|
|
|
$
|
(8.26)
|
|
|
$
|
3.99
|
|
Income from
discontinued operations
|
|
—
|
|
|
0.08
|
|
|
$
|
—
|
|
|
$
|
0.07
|
|
Diluted (loss) income
per share
|
|
$
|
(3.98)
|
|
|
$
|
0.44
|
|
|
$
|
(8.26)
|
|
|
$
|
4.06
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
73,736,637
|
|
|
74,042,343
|
|
|
73,598,389
|
|
|
75,853,187
|
|
Diluted
|
|
73,736,637
|
|
|
74,700,926
|
|
|
73,598,389
|
|
|
76,574,091
|
|
Dividends declared
per common share outstanding
|
|
$
|
—
|
|
|
$
|
0.30
|
|
|
$
|
0.93
|
|
|
$
|
1.14
|
|
6|
Delek US Holdings,
Inc.
|
Condensed Cash
Flow Data (Unaudited)
|
(In
millions)
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities
|
$
|
116.9
|
|
|
$
|
126.8
|
|
|
$
|
(282.9)
|
|
|
$
|
575.2
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
Net cash used in
investing activities
|
(28.3)
|
|
|
(181.8)
|
|
|
(191.3)
|
|
|
(691.3)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
Net cash (used in)
provided by financing activities
|
(109.0)
|
|
|
3.9
|
|
|
306.4
|
|
|
(7.9)
|
|
Net decrease in cash
and cash equivalents
|
(20.4)
|
|
|
(51.1)
|
|
|
(167.8)
|
|
|
(124.0)
|
|
Cash and cash
equivalents at the beginning of the period
|
807.9
|
|
|
1,006.4
|
|
|
955.3
|
|
|
1,079.3
|
|
Cash and cash
equivalents at the end of the period
|
$
|
787.5
|
|
|
$
|
955.3
|
|
|
$
|
787.5
|
|
|
$
|
955.3
|
|
|
|
|
|
|
|
|
|
COVID-19 Tax Legislative Changes
On March 27, 2020, the Coronavirus
Aid, Relief, and Economic Security Act (the "CARES Act") was
enacted into law. The Act includes several significant
provisions for corporations, including the usage of net operating
losses, interest deductions and payroll benefits. Pursuant to
the provisions of the CARES Act, we recognized $16.8 million of current federal income tax
benefit for the year ended December 31,
2020 (none of which was recognized in the fourth quarter)
attributable to anticipated tax refunds from net operating loss
carrybacks to prior 35% tax rate years. Additionally, we recorded a
federal income tax receivable totaling $156.2 million as of December 31, 2020 related to the net operating
loss carryback, which we expect to collect $135.6 million in the first half of 2021 and the
remaining balance within eighteen months.
7|
Delek US Holdings,
Inc.
|
|
|
|
|
|
|
|
|
|
|
Segment Data
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2020
|
|
|
Refining
|
|
Logistics
|
|
Retail
|
|
Corporate,
Other and
Eliminations
|
|
Consolidated
|
Net revenues
(excluding inter-segment fees and revenues)
|
|
$
|
1,341.4
|
|
|
$
|
50.0
|
|
|
$
|
160.0
|
|
|
$
|
330.8
|
|
|
$
|
1,882.2
|
|
Inter-segment fees and
revenues
|
|
107.9
|
|
|
90.1
|
|
|
—
|
|
|
(198.0)
|
|
|
—
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
Cost of materials and
other
|
|
1,431.1
|
|
|
63.2
|
|
|
123.6
|
|
|
159.0
|
|
|
1,776.9
|
|
Operating expenses
(excluding depreciation and
amortization presented below)
|
|
100.2
|
|
|
14.7
|
|
|
23.7
|
|
|
(0.8)
|
|
|
137.8
|
|
Segment contribution
margin
|
|
$
|
(82.0)
|
|
|
$
|
62.2
|
|
|
$
|
12.7
|
|
|
$
|
(25.4)
|
|
|
$
|
(32.5)
|
|
Depreciation and
amortization
|
|
$
|
66.0
|
|
|
$
|
11.3
|
|
|
$
|
4.1
|
|
|
$
|
8.8
|
|
|
90.2
|
|
Impairment of
goodwill
|
|
$
|
126.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
126.0
|
|
General and
administrative expenses
|
|
|
|
|
|
|
|
|
|
63.9
|
|
Other operating loss,
net
|
|
|
|
|
|
|
|
|
|
1.5
|
|
Operating
loss
|
|
|
|
|
|
|
|
|
|
$
|
(314.1)
|
|
Capital spending
(excluding business combinations)
|
|
$
|
20.1
|
|
|
$
|
8.5
|
|
|
$
|
0.9
|
|
|
$
|
2.1
|
|
|
$
|
31.6
|
|
|
|
Three Months Ended
December 31, 2019
|
|
|
Refining
(1)
|
|
Logistics
|
|
Retail
|
|
Corporate,
Other and
Eliminations (1)
|
|
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
|
|
1,898.4
|
|
|
73.8
|
|
|
162.8
|
|
|
(209.0)
|
|
|
1,926.0
|
|
Operating expenses
(excluding depreciation and
amortization presented below)
|
|
135.7
|
|
|
22.3
|
|
|
22.9
|
|
|
5.4
|
|
|
186.3
|
|
Segment contribution
margin
|
|
$
|
127.8
|
|
|
$
|
42.5
|
|
|
$
|
12.1
|
|
|
$
|
(11.0)
|
|
|
$
|
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
|
|
8|
Delek US Holdings,
Inc.
|
|
|
|
|
|
|
|
|
|
|
Segment Data
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, 2020
|
|
|
Refining
|
|
Logistics
|
|
Retail
|
|
Corporate,
Other and
Eliminations
|
|
Consolidated
|
Net revenues
(excluding inter-segment fees and revenues)
|
|
$
|
5,363.1
|
|
|
$
|
183.6
|
|
|
$
|
681.7
|
|
|
$
|
1,073.4
|
|
|
$
|
7,301.8
|
|
Inter-segment fees and
revenues
|
|
454.6
|
|
|
379.8
|
|
|
—
|
|
|
(834.4)
|
|
|
—
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
Cost of materials and
other
|
|
5,745.5
|
|
|
269.1
|
|
|
523.6
|
|
|
303.0
|
|
|
6,841.2
|
|
Operating expenses
(excluding depreciation
and amortization presented below)
|
|
402.7
|
|
|
56.2
|
|
|
90.5
|
|
|
10.4
|
|
|
559.8
|
|
Segment contribution
margin
|
|
$
|
(330.5)
|
|
|
$
|
238.1
|
|
|
$
|
67.6
|
|
|
$
|
(74.4)
|
|
|
$
|
(99.2)
|
|
Depreciation and
amortization
|
|
$
|
198.3
|
|
|
$
|
35.7
|
|
|
$
|
13.2
|
|
|
$
|
20.4
|
|
|
267.6
|
|
Impairment of
goodwill
|
|
$
|
126.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
126.0
|
|
General and
administrative expenses
|
|
|
|
|
|
|
|
|
|
248.3
|
|
Other operating
income, net
|
|
|
|
|
|
|
|
|
|
(13.1)
|
|
Operating
loss
|
|
|
|
|
|
|
|
|
|
$
|
(728.0)
|
|
Capital spending
(excluding business combinations)
|
|
$
|
201.0
|
|
|
$
|
15.8
|
|
|
$
|
9.1
|
|
|
$
|
13.7
|
|
|
$
|
239.6
|
|
|
|
Year Ended
December 31, 2019
|
|
|
Refining
(1)
|
|
Logistics
|
|
Retail
|
|
Corporate,
Other and
Eliminations (1)
|
|
Consolidated
|
Net revenues
(excluding inter-segment fees and revenues)
|
|
$
|
8,095.9
|
|
|
$
|
323.0
|
|
|
$
|
838.0
|
|
|
$
|
41.3
|
|
|
$
|
9,298.2
|
|
Inter-segment fees and
revenues
|
|
702.6
|
|
|
261.0
|
|
|
—
|
|
|
(963.6)
|
|
|
—
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
Cost of materials and
other
|
|
7,528.2
|
|
|
336.5
|
|
|
684.7
|
|
|
(892.2)
|
|
|
7,657.2
|
|
Operating expenses
(excluding depreciation and amortization presented below)
|
|
492.4
|
|
|
74.1
|
|
|
94.8
|
|
|
20.9
|
|
|
682.2
|
|
Segment contribution
margin
|
|
$
|
777.9
|
|
|
$
|
173.4
|
|
|
$
|
58.5
|
|
|
$
|
(51.0)
|
|
|
$
|
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
|
|
|
|
(1)
|
The refining segment
results of operations for the three months and year ended December
31, 2019, includes hedging (losses) gains, a component of cost of
materials and other, of $(33.7) million and $16.3 million,
respectively, which was previously included and reported in
corporate, other and eliminations.
|
9|
Delek US Holdings,
Inc.
|
|
|
|
|
|
|
|
|
|
|
Schedule of
Inventory/Commodity Hedging Gains (Losses)
|
|
|
|
|
|
|
$ in
millions
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2020
|
Inventory/Commodity Hedging Gains (Losses)
Included in Segment Contribution Margin
|
|
Refining
|
|
Logistics
|
|
Retail
|
|
Corporate,
Other and
Eliminations
|
|
Consolidated
|
Inventory/Commodity
unrealized hedging gain (loss)
|
|
|
|
|
|
|
|
|
|
|
Unrealized
inventory/commodity hedging gain (loss)
where the hedged item is currently recognized in
the financial statements
|
|
$
|
(4.8)
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(4.8)
|
|
Unrealized
inventory/commodity hedging gain (loss)
where the hedged item is not yet recognized in the
financial statements (1)
|
|
19.6
|
|
|
(0.4)
|
|
|
—
|
|
|
(0.5)
|
|
|
18.7
|
|
Total
inventory/commodity unrealized hedging gain (loss)
|
|
14.8
|
|
|
(0.4)
|
|
|
—
|
|
|
(0.5)
|
|
|
13.9
|
|
Total
inventory/commodity realized hedging gain (loss)
|
|
(19.5)
|
|
|
—
|
|
|
—
|
|
|
3.3
|
|
|
(16.2)
|
|
Total
inventory/commodity hedging gain (loss)
|
|
$
|
(4.7)
|
|
|
$
|
(0.4)
|
|
|
$
|
—
|
|
|
$
|
2.8
|
|
|
$
|
(2.3)
|
|
Delek US Holdings,
Inc.
|
|
|
|
|
|
|
|
|
|
|
Schedule of
Inventory/Commodity Hedging Gains (Losses)
|
|
|
|
|
|
|
$ in
millions
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2019
|
Inventory/Commodity Hedging Gains (Losses)
Included in Segment Contribution Margin
|
|
Refining
|
|
Logistics
|
|
Retail
|
|
Corporate,
Other and
Eliminations
|
|
Consolidated
|
Inventory/Commodity
unrealized hedging gain (loss)
|
|
|
|
|
|
|
|
|
|
|
Unrealized
inventory/commodity hedging gain (loss)
where the hedged item is currently recognized in the
financial statements
|
|
$
|
5.7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5.7
|
|
Unrealized
inventory/commodity hedging gain (loss)
where the hedged item is not yet recognized in the
financial statements (1)
|
|
(17.8)
|
|
|
(0.1)
|
|
|
—
|
|
|
1.4
|
|
|
(16.5)
|
|
Total
inventory/commodity unrealized hedging gain (loss)
|
|
(12.1)
|
|
|
(0.1)
|
|
|
—
|
|
|
1.4
|
|
|
(10.8)
|
|
Total
inventory/commodity realized hedging gain (loss)
|
|
(19.5)
|
|
|
(0.2)
|
|
|
—
|
|
|
(6.6)
|
|
|
(26.3)
|
|
Total
inventory/commodity hedging gain (loss)
|
|
$
|
(31.6)
|
|
|
$
|
(0.3)
|
|
|
$
|
—
|
|
|
$
|
(5.2)
|
|
|
$
|
(37.1)
|
|
10|
Delek US Holdings,
Inc.
|
|
|
|
|
|
|
|
|
|
|
Schedule of
Inventory/Commodity Hedging Gains (Losses)
|
|
|
|
|
|
|
$ in
millions
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, 2020
|
Inventory/Commodity Hedging Gains (Losses)
Included in Segment Contribution Margin
|
|
Refining
|
|
Logistics
|
|
Retail
|
|
Corporate,
Other and
Eliminations
|
|
Consolidated
|
Inventory/Commodity
unrealized hedging gain (loss)
|
|
|
|
|
|
|
|
|
|
|
Unrealized
inventory/commodity hedging gain (loss)
where the hedged item is currently recognized in the
financial statements
|
|
$
|
2.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2.2
|
|
Unrealized
inventory/commodity hedging gain (loss)
where the hedged item is not yet recognized in the
financial statements (1)
|
|
18.7
|
|
|
(0.1)
|
|
|
—
|
|
|
1.9
|
|
|
20.5
|
|
Total
inventory/commodity unrealized hedging gain (loss)
|
|
20.9
|
|
|
(0.1)
|
|
|
—
|
|
|
1.9
|
|
|
22.7
|
|
Total
inventory/commodity realized hedging gain (loss)
|
|
(89.0)
|
|
|
1.8
|
|
|
—
|
|
|
(23.0)
|
|
|
(110.2)
|
|
Total
inventory/commodity hedging gain (loss)
|
|
$
|
(68.1)
|
|
|
$
|
1.7
|
|
|
$
|
—
|
|
|
$
|
(21.1)
|
|
|
$
|
(87.5)
|
|
Delek US Holdings,
Inc.
|
|
|
|
|
|
|
|
|
|
|
Schedule of
Inventory/Commodity Hedging Gains (Losses)
|
|
|
|
|
|
|
$ in
millions
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, 2019
|
Inventory/Commodity Hedging Gains (Losses)
Included in Segment Contribution Margin
|
|
Refining
|
|
Logistics
|
|
Retail
|
|
Corporate,
Other and
Eliminations
|
|
Consolidated
|
Unrealized
inventory/commodity hedging gain (loss)
where the hedged item is currently recognized in the
financial statements
|
|
$
|
(9.2)
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(9.2)
|
|
Unrealized
inventory/commodity hedging gain (loss)
where the hedged item is not yet recognized in the
financial statements (1)
|
|
(18.7)
|
|
|
(0.4)
|
|
|
—
|
|
|
(3.5)
|
|
|
(22.6)
|
|
Total
inventory/commodity unrealized hedging gain (loss)
|
|
(27.9)
|
|
|
(0.4)
|
|
|
—
|
|
|
(3.5)
|
|
|
(31.8)
|
|
Total
inventory/commodity realized hedging gain (loss)
|
|
60.6
|
|
|
(0.4)
|
|
|
—
|
|
|
(8.9)
|
|
|
51.3
|
|
Total
inventory/commodity hedging gain (loss)
|
|
$
|
32.7
|
|
|
$
|
(0.8)
|
|
|
$
|
—
|
|
|
$
|
(12.4)
|
|
|
$
|
19.5
|
|
|
|
(1)
|
Represents an
Adjusted item in certain of our non-GAAP measures.
|
11|
Refining
Segment
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Tyler, TX
Refinery
|
|
(Unaudited)
|
|
(Unaudited)
|
Days in
period
|
|
92
|
|
|
92
|
|
|
366
|
|
|
365
|
|
Total sales volume -
refined product (average barrels per day)(1)
|
|
74,152
|
|
|
75,931
|
|
|
74,075
|
|
|
76,178
|
|
Products manufactured
(average barrels per day):
|
|
|
|
|
|
|
|
|
Gasoline
|
|
42,444
|
|
|
42,347
|
|
|
40,031
|
|
|
40,801
|
|
Diesel/Jet
|
|
29,935
|
|
|
30,635
|
|
|
29,220
|
|
|
30,673
|
|
Petrochemicals, LPG,
NGLs
|
|
2,114
|
|
|
1,816
|
|
|
2,794
|
|
|
2,798
|
|
Other
|
|
1,516
|
|
|
1,537
|
|
|
1,461
|
|
|
1,554
|
|
Total
production
|
|
76,009
|
|
|
76,335
|
|
|
73,506
|
|
|
75,826
|
|
Throughput (average
barrels per day):
|
|
|
|
|
|
|
|
|
Crude
oil
|
|
68,388
|
|
|
70,284
|
|
|
51,854
|
|
|
70,516
|
|
Other
feedstocks
|
|
7,876
|
|
|
6,355
|
|
|
22,126
|
|
|
5,873
|
|
Total
throughput
|
|
76,264
|
|
|
76,639
|
|
|
73,980
|
|
|
76,389
|
|
Total refining
revenue ( $ in millions)
|
|
$
|
377.3
|
|
|
$
|
552.8
|
|
|
$
|
1,432.2
|
|
|
$
|
2,209.2
|
|
Cost of materials and
other ($ in millions)
|
|
328.9
|
|
|
475.3
|
|
|
1,331.7
|
|
|
1,817.5
|
|
Total refining margin
($ in millions) (2)
|
|
$
|
48.4
|
|
|
$
|
77.5
|
|
|
$
|
100.5
|
|
|
$
|
391.7
|
|
Per barrel of refined
product sales:
|
|
|
|
|
|
|
|
|
Tyler refining margin
(2)
|
|
$
|
7.08
|
|
|
$
|
11.09
|
|
|
$
|
3.71
|
|
|
$
|
14.09
|
|
Tyler adjusted
refining margin (2)
|
|
$
|
1.99
|
|
|
$
|
9.68
|
|
|
$
|
4.78
|
|
|
$
|
12.42
|
|
Operating
expenses
|
|
$
|
3.75
|
|
|
$
|
4.33
|
|
|
$
|
3.45
|
|
|
$
|
3.91
|
|
Crude Slate: (% based
on amount received in period)
|
|
|
|
|
|
|
|
|
WTI crude
oil
|
|
92.0
|
%
|
|
90.3
|
%
|
|
92.0
|
%
|
|
89.0
|
%
|
East Texas crude
oil
|
|
8.0
|
%
|
|
9.7
|
%
|
|
8.0
|
%
|
|
11.0
|
%
|
|
|
|
|
|
|
|
|
|
El Dorado, AR
Refinery
|
|
|
|
|
|
|
|
|
Days in
period
|
|
92
|
|
|
92
|
|
|
366
|
|
|
365
|
|
Total sales volume -
refined product (average barrels per day)(1)
|
|
70,781
|
|
|
74,617
|
|
|
75,992
|
|
|
62,420
|
|
Products manufactured
(average barrels per day):
|
|
|
|
|
|
|
|
|
Gasoline
|
|
34,364
|
|
|
37,551
|
|
|
35,480
|
|
|
27,712
|
|
Diesel
|
|
25,320
|
|
|
27,263
|
|
|
28,429
|
|
|
20,753
|
|
Petrochemicals, LPG,
NGLs
|
|
1,291
|
|
|
1,290
|
|
|
1,772
|
|
|
872
|
|
Asphalt
|
|
6,781
|
|
|
4,461
|
|
|
6,687
|
|
|
5,533
|
|
Other
|
|
753
|
|
|
903
|
|
|
789
|
|
|
735
|
|
Total
production
|
|
68,509
|
|
|
71,468
|
|
|
73,157
|
|
|
55,605
|
|
Throughput (average
barrels per day):
|
|
|
|
|
|
|
|
|
Crude oil
|
|
64,301
|
|
|
69,913
|
|
|
70,385
|
|
|
54,420
|
|
Other
feedstocks
|
|
4,078
|
|
|
2,007
|
|
|
2,979
|
|
|
1,576
|
|
Total
throughput
|
|
68,379
|
|
|
71,920
|
|
|
73,364
|
|
|
55,996
|
|
Total refining
revenue ( $ in millions)
|
|
$
|
381.1
|
|
|
$
|
911.6
|
|
|
$
|
1,788.8
|
|
|
$
|
3,291.1
|
|
Cost of materials and
other ($ in millions)
|
|
410.2
|
|
|
876.2
|
|
|
$
|
1,809.3
|
|
|
3,123.0
|
|
Total refining margin
($ in millions) (2)
|
|
$
|
(29.1)
|
|
|
$
|
35.4
|
|
|
$
|
(20.5)
|
|
|
$
|
168.1
|
|
Per barrel of refined
product sales:
|
|
|
|
|
|
|
|
|
El Dorado refining
margin (2)
|
|
$
|
(4.47)
|
|
|
$
|
5.15
|
|
|
$
|
(0.74)
|
|
|
$
|
7.38
|
|
El Dorado adjusted
refining margin (2)
|
|
$
|
(4.63)
|
|
|
$
|
4.24
|
|
|
$
|
(0.74)
|
|
|
$
|
6.89
|
|
Operating
expenses
|
|
$
|
4.09
|
|
|
$
|
5.37
|
|
|
$
|
3.81
|
|
|
$
|
5.73
|
|
Crude Slate: (% based
on amount received in period)
|
|
|
|
|
|
|
|
|
WTI crude
oil
|
|
63.2
|
%
|
|
41.4
|
%
|
|
52.3
|
%
|
|
39.3
|
%
|
Local Arkansas crude
oil
|
|
19.4
|
%
|
|
17.7
|
%
|
|
17.8
|
%
|
|
23.1
|
%
|
Other
|
|
17.4
|
%
|
|
40.9
|
%
|
|
29.9
|
%
|
|
37.6
|
%
|
12|
Refining Segment
(continued)
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Big Spring, TX
Refinery
|
|
(Unaudited)
|
(Unaudited)
|
Days in period -
based on date acquired
|
|
92
|
|
|
92
|
|
|
366
|
|
|
365
|
|
Total sales volume -
refined product (average barrels per day) (1)
|
|
78,387
|
|
|
72,559
|
|
|
65,508
|
|
|
76,413
|
|
Products manufactured
(average barrels per day):
|
|
|
|
|
|
|
|
|
Gasoline
|
|
40,702
|
|
|
36,578
|
|
|
32,340
|
|
|
36,352
|
|
Diesel/Jet
|
|
26,539
|
|
|
27,025
|
|
|
23,283
|
|
|
27,602
|
|
Petrochemicals, LPG,
NGLs
|
|
3,849
|
|
|
3,705
|
|
|
3,183
|
|
|
3,746
|
|
Asphalt
|
|
1,594
|
|
|
2,036
|
|
|
1,685
|
|
|
1,870
|
|
Other
|
|
1,383
|
|
|
1,292
|
|
|
1,119
|
|
|
1,327
|
|
Total
production
|
|
74,067
|
|
|
70,636
|
|
|
61,610
|
|
|
70,897
|
|
Throughput (average
barrels per day):
|
|
|
|
|
|
|
|
|
Crude oil
|
|
72,454
|
|
|
72,338
|
|
|
61,428
|
|
|
72,039
|
|
Other
feedstocks
|
|
2,067
|
|
|
(1,790)
|
|
|
1,078
|
|
|
(453)
|
|
Total
throughput
|
|
74,521
|
|
|
70,548
|
|
|
62,506
|
|
|
71,586
|
|
Total refining
revenue ( $ in millions)
|
|
$
|
427.3
|
|
|
$
|
555.3
|
|
|
$
|
1,531.7
|
|
|
$
|
2,366.5
|
|
Cost of materials and
other ($ in millions)
|
|
427.8
|
|
|
487.0
|
|
|
1,497.2
|
|
|
1,984.6
|
|
Total refining margin
($ in millions) (2)
|
|
$
|
(0.5)
|
|
|
$
|
68.3
|
|
|
$
|
34.5
|
|
|
$
|
381.9
|
|
Per barrel of refined
product sales:
|
|
|
|
|
|
|
|
|
Big Spring refining
margin (2)
|
|
$
|
(0.07)
|
|
|
$
|
10.23
|
|
|
$
|
1.44
|
|
|
$
|
13.69
|
|
Big Spring adjusted
refining margin (2)
|
|
$
|
(0.08)
|
|
|
$
|
10.06
|
|
|
$
|
1.47
|
|
|
$
|
13.56
|
|
Operating
expenses
|
|
$
|
3.95
|
|
|
$
|
5.54
|
|
|
$
|
4.33
|
|
|
$
|
4.35
|
|
Crude Slate: (% based
on amount received in period)
|
|
|
|
|
|
|
|
|
WTI crude
oil
|
|
58.9
|
%
|
|
74.0
|
%
|
|
67.0
|
%
|
|
75.5
|
%
|
WTS crude
oil
|
|
41.1
|
%
|
|
26.0
|
%
|
|
33.0
|
%
|
|
24.5
|
%
|
|
|
|
|
|
|
|
|
|
Krotz Springs, LA
Refinery
|
|
|
|
|
|
|
|
|
Days in period -
based on date acquired
|
|
92
|
|
|
92
|
|
|
366
|
|
|
365
|
|
Total sales volume -
refined product (average barrels per day) (1)
|
|
36,219
|
|
|
56,576
|
|
|
61,302
|
|
|
70,511
|
|
Products manufactured
(average barrels per day):
|
|
|
|
|
|
|
|
|
Gasoline
|
|
1,980
|
|
|
32,848
|
|
|
20,615
|
|
|
35,026
|
|
Diesel/Jet
|
|
5,455
|
|
|
24,823
|
|
|
20,422
|
|
|
28,049
|
|
Heavy oils
|
|
—
|
|
|
1,198
|
|
|
418
|
|
|
1,131
|
|
Petrochemicals, LPG,
NGLs
|
|
1,647
|
|
|
3,296
|
|
|
2,223
|
|
|
4,647
|
|
Other
|
|
20,645
|
|
|
—
|
|
|
13,512
|
|
|
26
|
|
Total
production
|
|
29,727
|
|
|
62,165
|
|
|
57,190
|
|
|
68,879
|
|
Throughput (average
barrels per day):
|
|
|
|
|
|
|
|
|
Crude oil
|
|
23,665
|
|
|
59,594
|
|
|
53,875
|
|
|
67,943
|
|
Other
feedstocks
|
|
9,222
|
|
|
317
|
|
|
4,126
|
|
|
(366)
|
|
Total
throughput
|
|
32,887
|
|
|
59,911
|
|
|
58,001
|
|
|
67,577
|
|
Total refining
revenue ( $ in millions)
|
|
$
|
267.5
|
|
|
$
|
458.0
|
|
|
$
|
1,266.6
|
|
|
$
|
2,175.7
|
|
Cost of materials and
other ($ in millions)
|
|
279.5
|
|
|
412.6
|
|
|
1,296.3
|
|
|
1,914.2
|
|
Total refining margin
($ in millions)
|
|
$
|
(12.0)
|
|
|
$
|
45.4
|
|
|
$
|
(29.7)
|
|
|
$
|
261.5
|
|
Per barrel of refined
product sales:
|
|
|
|
|
|
|
|
|
Krotz Springs refining
margin (2)
|
|
$
|
(3.61)
|
|
|
$
|
8.72
|
|
|
$
|
(1.32)
|
|
|
$
|
10.16
|
|
Krotz Springs adjusted
refining margin (2)
|
|
$
|
(3.80)
|
|
|
$
|
7.98
|
|
|
$
|
(1.32)
|
|
|
$
|
9.70
|
|
Operating
expenses
|
|
$
|
5.30
|
|
|
$
|
5.55
|
|
|
$
|
3.97
|
|
|
$
|
4.46
|
|
Crude Slate: (% based
on amount received in period)
|
|
|
|
|
|
|
|
|
WTI Crude
|
|
77.0
|
%
|
|
65.4
|
%
|
|
70.1
|
%
|
|
72.0
|
%
|
Gulf Coast Sweet
Crude
|
|
23.0
|
%
|
|
34.6
|
%
|
|
29.1
|
%
|
|
28.0
|
%
|
Other
|
|
—
|
%
|
|
—
|
%
|
|
0.8
|
%
|
|
—
|
%
|
|
|
(1)
|
Includes
inter-refinery sales and sales to other segments which are
eliminated in consolidation.
|
(2)
|
See Other Items
Impacting Refining Margin discussed below.
|
13|
Other Items Impacting Refining Margin:
In addition to
the items that were reflected as adjustments for deriving our
Adjusted refining margin, which then was used to calculate Adjusted
refining margin per barrel, there were other items that were
recognized during the periods that impacted our Refining margins at
the refineries. The primary items are as follows:
Other Inventory Impact: "Other inventory impact" is primarily
calculated by multiplying the number of barrels sold during the
period by the difference between current period weighted average
NYMEX WTI purchase cost and per barrel cost of materials and other
for the period recognized on a FIFO basis. It assumes no beginning
or ending inventory, so that the current period average market
price reflects the weighted average NYMEX WTI purchase cost for the
current period only, without giving effect to any build or draw on
beginning inventory. These amounts are based on management
estimates using a methodology including these assumptions, and are
not intended to be a true representation of results under LIFO.
However, this analysis provides management with a means to compare
hypothetical refining margins to current crack spreads, as well as
provides a means to better compare our results to peers, the
majority of which value inventory on a LIFO basis.
Purchased Product Margins: We buy and sell purchased product to
optimize margins and to meet contractual demands, as needed. To the
extent that we purchase product to meet contractual demands, such
as during turnarounds or unit outages, we are subject to margin
risk that is often out of our control. Such margins may have a
favorable or unfavorable impact on our refining margins. Such
margins are estimated based on accounting information available to
management, and are used for management review purposes.
Summary of Other
Favorable (Unfavorable) Items
Impacting Refining Margin:
|
|
|
|
|
$ in
millions
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Tyler
|
|
|
|
|
|
|
|
|
Gross Estimated $
Impact
|
|
|
|
|
|
|
|
|
Purchased product
margins
|
|
$
|
2.3
|
|
|
$
|
0.3
|
|
|
$
|
1.7
|
|
|
$
|
—
|
|
Significant impact of
fixed price crude transactions (1)
|
|
(4.1)
|
|
|
—
|
|
|
95.5
|
|
|
—
|
|
|
|
$
|
(1.8)
|
|
|
$
|
0.3
|
|
|
$
|
97.2
|
|
|
$
|
—
|
|
El
Dorado
|
|
|
|
|
|
|
|
|
Gross Estimated $
Impact
|
|
|
|
|
|
|
|
|
Other inventory
impact
|
|
$
|
(13.5)
|
|
|
$
|
—
|
|
|
$
|
(65.4)
|
|
|
$
|
—
|
|
Purchased product
margins
|
|
2.9
|
|
|
(3.2)
|
|
|
6.8
|
|
|
10.8
|
|
|
|
$
|
(10.6)
|
|
|
$
|
(3.2)
|
|
|
$
|
(58.6)
|
|
|
$
|
10.8
|
|
Big
Spring
|
|
|
|
|
|
|
|
|
Gross Estimated $
Impact
|
|
|
|
|
|
|
|
|
Other inventory
impact
|
|
$
|
3.1
|
|
|
$
|
—
|
|
|
$
|
(40.7)
|
|
|
$
|
—
|
|
Purchased product
margins
|
|
(0.6)
|
|
|
(0.6)
|
|
|
(7.4)
|
|
|
1.8
|
|
|
|
$
|
2.5
|
|
|
$
|
(0.6)
|
|
|
$
|
(48.1)
|
|
|
$
|
1.8
|
|
Krotz
Springs
|
|
|
|
|
|
|
|
|
Gross Estimated $
Impact
|
|
|
|
|
|
|
|
|
Other inventory
impact
|
|
$
|
(3.2)
|
|
|
$
|
—
|
|
|
$
|
(27.7)
|
|
|
$
|
—
|
|
Purchased product
margins
|
|
(0.1)
|
|
|
1.1
|
|
|
(33.6)
|
|
|
5.5
|
|
|
|
$
|
(3.3)
|
|
|
$
|
1.1
|
|
|
$
|
(61.3)
|
|
|
$
|
5.5
|
|
|
|
(1)
|
We enter into a
significant number of physical forward contracts for crude in order
to optimize our crude cost across refineries, and which are
reflected as changes in our cost of materials and other when
realized, under the normal purchase normal sale provisions of GAAP.
During the optimization process, the majority of these crude
physical contracts are transacted at Tyler. Such physical crude,
once fully optimized and physically delivered and available for
production, is transferred to the appropriate refinery's inventory
at realized cost. Additionally, we routinely hedge our inventory
positions based on segment-wide strategies, which are included in
our refining segment contribution margin but are not necessarily
specifically designated to specific refineries or identifiable
trades. As a result, the refineries recognize actual realized
inventory cost based on the physical contracts, whereas offsetting
hedges are reflected only in the overall refining segment refining
and contribution margins. Typically, such offsetting hedges are not
material to any particular refinery, because of the segment-wide
strategies employed. However, because of the historic volatility in
the crude market during 2020 and the fact that we transact the
majority of our optimization transactions at Tyler, the Tyler
margins were impacted by relatively large fixed price crude
transaction losses during 2020. Such losses were hedged in the
refining segment but outside the Tyler refining margins, resulting
in a corresponding realized hedging gain of $4.1 million pre-tax
for the quarter ended December 31, 2020. On a year-to-date basis,
the impact of these fixed price crude transactions on the Tyler
refining margin was a benefit of $95.5 million, where the
offsetting net hedging loss was recognized separately.
|
14|
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)
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Tyler refined product
sales to other Delek refineries
|
|
2,598
|
|
|
908
|
|
|
2,010
|
|
|
894
|
|
El Dorado refined
product sales to other Delek refineries
|
|
477
|
|
|
4,894
|
|
|
924
|
|
|
5,039
|
|
Big Spring refined
product sales to other Delek refineries
|
|
830
|
|
|
398
|
|
|
1,356
|
|
|
990
|
|
Krotz Springs refined
product sales to other Delek refineries
|
|
259
|
|
|
12,552
|
|
|
190
|
|
|
9,734
|
|
Refinery Sales to
Other Segments
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
(in barrels per
day)
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Tyler refined product
sales to other Delek segments
|
|
639
|
|
|
429
|
|
|
1,623
|
|
|
252
|
|
El Dorado refined
product sales to other Delek segments
|
|
10
|
|
|
11
|
|
|
94
|
|
|
83
|
|
Big Spring refined
product sales to other Delek segments
|
|
21,891
|
|
|
24,075
|
|
|
22,601
|
|
|
25,223
|
|
Krotz Springs refined
product sales to other Delek segments
|
|
439
|
|
|
1,030
|
|
|
362
|
|
|
462
|
|
Pricing
statistics
|
|
|
|
|
(average for the
period presented)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
WTI — Cushing crude
oil (per barrel)
|
|
$
|
42.63
|
|
|
$
|
56.88
|
|
|
$
|
39.89
|
|
|
$
|
56.99
|
|
WTI — Midland crude
oil (per barrel)
|
|
$
|
43.07
|
|
|
$
|
57.80
|
|
|
$
|
40.02
|
|
|
$
|
56.31
|
|
WTS -- Midland crude
oil (per barrel) (1)
|
|
$
|
43.16
|
|
|
$
|
57.21
|
|
|
$
|
39.96
|
|
|
$
|
56.27
|
|
LLS (per barrel)
(1)
|
|
$
|
44.14
|
|
|
$
|
60.68
|
|
|
$
|
41.56
|
|
|
$
|
62.65
|
|
Brent crude oil (per
barrel)
|
|
$
|
45.26
|
|
|
$
|
62.39
|
|
|
$
|
43.24
|
|
|
$
|
64.14
|
|
|
|
|
|
|
|
|
|
|
U.S. Gulf Coast 5-3-2
crack spread (per barrel) (1)
|
|
$
|
7.83
|
|
|
$
|
14.27
|
|
|
$
|
8.18
|
|
|
$
|
15.77
|
|
U.S. Gulf Coast 3-2-1
crack spread (per barrel) (1)
|
|
$
|
8.08
|
|
|
$
|
14.86
|
|
|
$
|
8.70
|
|
|
$
|
16.71
|
|
U.S. Gulf Coast 2-1-1
crack spread (per barrel) (1)
|
|
$
|
4.46
|
|
|
$
|
10.40
|
|
|
$
|
4.65
|
|
|
$
|
9.90
|
|
|
|
|
|
|
|
|
|
|
U.S. Gulf Coast
Unleaded Gasoline (per gallon)
|
|
$
|
1.17
|
|
|
$
|
1.58
|
|
|
$
|
1.09
|
|
|
$
|
1.63
|
|
Gulf Coast Ultra low
sulfur diesel (per gallon)
|
|
$
|
1.24
|
|
|
$
|
1.87
|
|
|
$
|
1.19
|
|
|
$
|
1.88
|
|
U.S. Gulf Coast high
sulfur diesel (per gallon)
|
|
$
|
1.13
|
|
|
$
|
1.76
|
|
|
$
|
1.06
|
|
|
$
|
1.76
|
|
Natural gas (per
MMBTU)
|
|
$
|
2.76
|
|
|
$
|
2.41
|
|
|
$
|
2.13
|
|
|
$
|
2.53
|
|
(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 (ultra low 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.
|
15|
Delek US Holdings,
Inc.
|
Reconciliation of
Refining margin per barrel to Adjusted Refining margin per barrel
(1)
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Combined
Refineries
|
|
|
|
|
|
|
|
|
Reported refining
margin, $ per barrel
|
|
$
|
0.24
|
|
|
$
|
7.62
|
|
|
$
|
0.74
|
|
|
$
|
10.12
|
|
Adjusting
items:
|
|
|
|
|
|
|
|
|
Net inventory LCM
valuation loss (benefit)
|
|
(1.32)
|
|
|
(0.71)
|
|
|
0.26
|
|
|
(0.44)
|
|
RIN waiver
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.10)
|
|
Adjusted refining
margin $/bbl
|
|
$
|
(1.08)
|
|
|
$
|
6.91
|
|
|
$
|
1.00
|
|
|
$
|
9.58
|
|
|
|
|
|
|
|
|
|
|
Tyler
(2)
|
|
|
|
|
|
|
|
|
Reported refining
margin, $ per barrel
|
|
$
|
7.08
|
|
|
$
|
11.09
|
|
|
$
|
3.71
|
|
|
$
|
14.09
|
|
Adjusting
items:
|
|
|
|
|
|
|
|
|
Net inventory LCM
valuation loss (benefit)
|
|
(5.09)
|
|
|
(1.41)
|
|
|
1.07
|
|
|
(1.37)
|
|
RIN waiver
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.30)
|
|
Adjusted refining
margin $/bbl
|
|
$
|
1.99
|
|
|
$
|
9.68
|
|
|
$
|
4.78
|
|
|
$
|
12.42
|
|
|
|
|
|
|
|
|
|
|
El Dorado
(3)
|
|
|
|
|
|
|
|
|
Reported refining
margin, $ per barrel
|
|
$
|
(4.47)
|
|
|
$
|
5.15
|
|
|
$
|
(0.74)
|
|
|
$
|
7.38
|
|
Adjusting
items:
|
|
|
|
|
|
|
|
|
Net inventory LCM
valuation loss (benefit)
|
|
(0.16)
|
|
|
(0.91)
|
|
|
—
|
|
|
(0.17)
|
|
RIN waiver
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.32)
|
|
Adjusted refining
margin $/bbl
|
|
$
|
(4.63)
|
|
|
$
|
4.24
|
|
|
$
|
(0.74)
|
|
|
$
|
6.89
|
|
|
|
|
|
|
|
|
|
|
Big Spring
(4)
|
|
|
|
|
|
|
|
|
Reported refining
margin, $ per barrel
|
|
$
|
(0.07)
|
|
|
$
|
10.23
|
|
|
$
|
1.44
|
|
|
$
|
13.69
|
|
Adjusting
items:
|
|
|
|
|
|
|
|
|
Net inventory LCM
valuation loss (benefit)
|
|
(0.01)
|
|
|
(0.17)
|
|
|
0.03
|
|
|
(0.13)
|
|
Adjusted refining
margin $/bbl
|
|
$
|
(0.08)
|
|
|
$
|
10.06
|
|
|
$
|
1.47
|
|
|
$
|
13.56
|
|
|
|
|
|
|
|
|
|
|
Krotz Springs
(5)
|
|
|
|
|
|
|
|
|
Reported refining
margin, $ per barrel
|
|
$
|
(3.61)
|
|
|
$
|
8.72
|
|
|
$
|
(1.32)
|
|
|
$
|
10.16
|
|
Adjusting
items:
|
|
|
|
|
|
|
|
|
Net inventory LCM
valuation loss (benefit)
|
|
(0.19)
|
|
|
(0.74)
|
|
|
—
|
|
|
(0.27)
|
|
RIN waiver
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.19)
|
|
Adjusted refining
margin $/bbl
|
|
$
|
(3.80)
|
|
|
$
|
7.98
|
|
|
$
|
(1.32)
|
|
|
$
|
9.70
|
|
|
|
|
|
|
|
|
|
|
(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. Additionally, management evaluates other impacts
to refining margin by refinery which may not represent adjustments,
but which provide information useful for evaluating the results
compared to current crack spreads and peers. See the 'Other Items
Impacting Refining Margin' for further discussion.
|
|
|
(2)
|
Tyler adjusted
refining margins exclude the following items:
|
|
Net
inventory LCM valuation loss/benefit - There was a net
valuation benefit of approximately $34.7 million and $9.9 million
in the fourth quarter 2020 and 2019, respectively. There was
approximately $29.1 million of net valuation loss and $38.2 million
of net valuation benefit for the year ended December 31, 2020 and
2019, respectively.
|
|
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.
|
|
Note also that
Tyler's Refining margin per barrel and the Adjusted refining margin
per barrel for the three months ended December 31, 2020 both
reflect the $(4.1) million margin impact of unfavorable fixed price
crude cost transactions during the quarter, but exclude the
offsetting realized hedging gains of approximately $4.1 million,
and the Refining margin per barrel and the Adjusted refining margin
per barrel for the year ended December 31, 2020 both reflect the
$95.5 million margin benefit of favorable fixed price crude cost
transactions during the quarter, but exclude the offsetting
realized hedging losses of approximately $(95.5) million
Giving effect to the related hedging gains (losses), both the
Refining margin per barrel and the Adjusted refining margin per
barrel would have increased by $0.57 for the three months ended
December 31, 2020, and would have decreased by $(3.34) for the year
ended December 31, 2020. See further discussion in the section
'Other Items Impacting Refining Margin' previously
presented.
|
16|
|
|
|
|
(3)
|
El Dorado Adjusted
refining margins exclude the following items:
|
|
Net
inventory LCM valuation loss/benefit - There was
approximately $1.0 million and $6.3 million of net valuation
benefit in the fourth quarter 2020 and 2019, respectively. There
was approximately $0.1 million and $3.8 million of net valuation
benefit for the year ended December 31, 2020 and 2019,
respectively.
|
|
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.
|
|
|
(4)
|
Big Spring Adjusted
refining margins exclude the following items:
|
|
Net
inventory LCM valuation loss/benefit - There was
approximately $0.1 million and $1.1 million of net valuation
benefit in the fourth quarter 2020 and 2019, respectively. There
was approximately $0.7 of net valuation loss and approximately $3.5
million of net valuation benefit for the year ended December 31,
2020 and 2019, respectively.
|
|
|
(5)
|
Krotz Springs
Adjusted refining margins exclude the following items:
|
|
Net
inventory LCM valuation loss/benefit - There was
approximately $0.6 million and $3.9 million of net valuation
benefit in the fourth quarter 2020 and 2019, respectively. There
was nominal net valuation benefit and approximately $7.0 million
for the year ended December 31, 2020 and 2019,
respectively.
|
|
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.
|
Logistics
Segment
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Pipelines &
Transportation: (average bpd)
|
|
|
|
|
|
|
|
|
Lion Pipeline
System:
|
|
|
|
|
|
|
|
|
Crude pipelines
(non-gathered)
|
|
66,521
|
|
|
69,910
|
|
|
74,179
|
|
|
49,485
|
|
Refined products
pipelines
|
|
48,900
|
|
|
53,960
|
|
|
53,702
|
|
|
37,716
|
|
SALA Gathering
System
|
|
13,308
|
|
|
15,919
|
|
|
13,466
|
|
|
15,325
|
|
East Texas Crude
Logistics System
|
|
16,719
|
|
|
16,612
|
|
|
15,960
|
|
|
19,927
|
|
Big Spring Gathering
System (3)
|
|
76,795
|
|
|
—
|
|
|
82,817
|
|
|
—
|
|
Plains Connection
System (3)
|
|
120,304
|
|
|
—
|
|
|
104,770
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Wholesale
Marketing & Terminalling:
|
|
|
|
|
|
|
|
|
East Texas - Tyler
Refinery sales volumes (average bpd) (1)
|
|
73,584
|
|
|
73,016
|
|
|
71,182
|
|
|
74,206
|
|
West Texas wholesale
marketing throughputs (average bpd)
|
|
9,915
|
|
|
9,972
|
|
|
11,264
|
|
|
11,075
|
|
West Texas wholesale
marketing margin per barrel
|
|
$
|
2.36
|
|
|
$
|
3.12
|
|
|
$
|
2.37
|
|
|
$
|
4.44
|
|
Big Spring wholesale
marketing throughputs (average bpd)
|
|
84,219
|
|
|
79,985
|
|
|
76,345
|
|
|
82,695
|
|
Terminalling
throughputs (average bpd) (2)
|
|
153,243
|
|
|
160,298
|
|
|
147,251
|
|
|
160,075
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Excludes jet fuel and
petroleum coke.
|
(2)
|
Consists of
terminalling throughputs at our Tyler, Big Spring, Big Sandy and
Mount Pleasant, Texas, El Dorado and North Little Rock, Arkansas
and Memphis and Nashville, Tennessee terminals.
|
(3)
|
Throughputs for the
Big Spring Gathering System and the Plains Connection System are
for the approximately 275 days we owned the assets following the
Big Spring Gathering Assets Acquisition effective March 31,
2020.
|
17|
Retail
Segment
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Number of stores (end
of period)
|
|
253
|
|
|
252
|
|
|
253
|
|
|
252
|
|
Average number of
stores
|
|
253
|
|
|
258
|
|
|
253
|
|
|
266
|
|
Average number of
fuel stores
|
|
248
|
|
|
251
|
|
|
248
|
|
|
259
|
|
Retail fuel sales
(thousands of gallons)
|
|
41,453
|
|
|
51,518
|
|
|
176,924
|
|
|
214,094
|
|
Average retail
gallons sold per average number of fuel stores (in
thousands)
|
|
167
|
|
|
205
|
|
|
715
|
|
|
827
|
|
Average retail sales
price per gallon sold
|
|
$
|
2.03
|
|
|
$
|
2.42
|
|
|
$
|
2.02
|
|
|
$
|
2.45
|
|
Retail fuel margin ($
per gallon) (1)
|
|
$
|
0.33
|
|
|
$
|
0.29
|
|
|
$
|
0.35
|
|
|
$
|
0.28
|
|
Merchandise sales (in
millions)
|
|
$
|
75.9
|
|
|
$
|
72.9
|
|
|
$
|
323.8
|
|
|
$
|
313.1
|
|
Merchandise sales per
average number of stores (in millions)
|
|
$
|
0.3
|
|
|
$
|
0.3
|
|
|
$
|
1.3
|
|
|
$
|
1.2
|
|
Merchandise margin
%
|
|
30.1
|
%
|
|
30.6
|
%
|
|
31.0
|
%
|
|
30.8
|
%
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Same-Store Comparison
(2)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Change in same-store
fuel gallons sold
|
|
(22.7)
|
%
|
|
2.4 %
|
|
(17.3)
|
%
|
|
2.9
|
%
|
Change in same-store
merchandise sales
|
|
2.2
|
%
|
|
0.5
|
%
|
|
6.2
|
%
|
|
(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 changes 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.
|
18|
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 (Loss)
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Reported net
income (loss) attributable to Delek
|
|
$
|
(293.2)
|
|
|
$
|
32.7
|
|
|
$
|
(608.0)
|
|
|
$
|
310.6
|
|
Adjusting
items
|
|
|
|
|
|
|
|
|
Net inventory LCM
valuation (benefit) loss
|
|
(36.4)
|
|
|
(20.8)
|
|
|
29.2
|
|
|
(52.3)
|
|
Tax effect
|
|
8.5
|
|
|
4.9
|
|
|
(6.8)
|
|
|
12.3
|
|
Net after-tax
inventory LCM valuation (benefit) loss
|
|
(27.9)
|
|
|
(15.9)
|
|
|
22.4
|
|
|
(40.0)
|
|
|
|
|
|
|
|
|
|
|
Unrealized
inventory/commodity hedging (gain) loss where the hedged
item is not yet recognized in the financial statements
|
|
(18.7)
|
|
|
16.5
|
|
|
(20.5)
|
|
|
22.6
|
|
Unrealized RINs and
other hedging (gain) loss where the hedged item
is not yet recognized in the financial statements
|
|
1.4
|
|
|
—
|
|
|
1.4
|
|
|
—
|
|
Total
unrealized hedging (gain) loss where the hedged item is not
yet
recognized in the financial statements
|
|
(17.3)
|
|
|
16.5
|
|
|
(19.1)
|
|
|
22.6
|
|
Tax effect
|
|
4.1
|
|
|
(3.7)
|
|
|
4.5
|
|
|
(5.1)
|
|
Net after-tax
unrealized hedging (gain) loss where the hedged item is
not
yet recognized in the financial statements
|
|
(13.2)
|
|
|
12.8
|
|
|
(14.6)
|
|
|
17.5
|
|
|
|
|
|
|
|
|
|
|
Non-cash change in
fair value of Supply and Offtake ("S&O") Obligation
associated with hedging activities (1)
|
|
8.3
|
|
|
—
|
|
|
6.9
|
|
|
—
|
|
Tax effect
|
|
(1.8)
|
|
|
—
|
|
|
(1.5)
|
|
|
—
|
|
Net after-tax
non-cash change in fair value of S&O Obligation associated
with hedging activities
|
|
6.5
|
|
|
—
|
|
|
5.4
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Goodwill impairment
expense
|
|
126.0
|
|
|
—
|
|
|
126.0
|
|
|
—
|
|
Tax effect
|
|
(5.2)
|
|
|
—
|
|
|
(5.2)
|
|
|
—
|
|
Net after-tax
goodwill impairment expense
|
|
120.8
|
|
|
—
|
|
|
120.8
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Gain from sale of
Bakersfield non-operating refinery
|
|
—
|
|
|
—
|
|
|
(56.8)
|
|
|
—
|
|
Tax effect
|
|
—
|
|
|
—
|
|
|
13.5
|
|
|
—
|
|
Net gain from sale of
Bakersfield non-operating refinery
|
|
—
|
|
|
—
|
|
|
(43.3)
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
COVID-related
severance costs
|
|
3.9
|
|
|
—
|
|
|
8.5
|
|
|
—
|
|
Tax effect
|
|
(0.9)
|
|
|
—
|
|
|
(2.0)
|
|
|
—
|
|
Net after-tax
COVID-related severance costs
|
|
3.0
|
|
|
—
|
|
|
6.5
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Non-operating,
pre-acquisition litigation contingent losses and related
legal
expenses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6.7
|
|
Tax effect
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.5)
|
|
Net after-tax
non-operating pre-acquisition litigation contingent losses and
related legal expenses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5.2
|
|
|
|
|
|
|
|
|
|
|
Retroactive biodiesel
tax credit (2)
|
|
—
|
|
|
(36.0)
|
|
|
—
|
|
|
(36.0)
|
|
Tax effect
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
Net after-tax
retroactive biodiesel tax credit
|
|
—
|
|
|
(35.9)
|
|
|
—
|
|
|
(35.9)
|
|
|
|
|
|
|
|
|
|
|
Non-operating
write-off of pre-acquisition asset
|
|
—
|
|
|
4.8
|
|
|
—
|
|
|
4.8
|
|
Tax effect
|
|
—
|
|
|
(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)
|
|
|
—
|
|
|
(6.6)
|
|
Tax effect
|
|
—
|
|
|
1.6
|
|
|
—
|
|
|
1.4
|
|
Net after-tax
discontinued operations (income) loss
|
|
—
|
|
|
(6.0)
|
|
|
—
|
|
|
(5.2)
|
|
Tax benefit from loss
carryback provided by CARES Act (3)
|
|
—
|
|
|
—
|
|
|
(16.8)
|
|
|
—
|
|
Tax adjustment to
reduce deferred tax asset valuation allowance resulting
from Big Springs Gathering Assets Acquisition
|
|
—
|
|
|
—
|
|
|
(22.3)
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Total after tax
adjusting items
|
|
89.2
|
|
|
(41.3)
|
|
|
58.1
|
|
|
(54.7)
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
income (loss)
|
|
$
|
(204.0)
|
|
|
$
|
(8.6)
|
|
|
$
|
(549.9)
|
|
|
$
|
255.9
|
|
|
|
|
|
|
|
|
|
|
19|
(1)
|
Represents an
adjustment to exclude the effect of non-cash changes in fair value
related to economic hedges that were entered into as discrete
amendments to the S&O Obligation (i.e., not contemplated in the
April 2020 Amendment and Restatement to the S&O Obligation), as
such fair value changes are hedges where the hedged item (a future
fee) is not yet recognized in the financial statements.
|
(2)
|
An adjustment for the
portion of the retroactive biodiesel tax credit reenacted in
December 2019 but that was attributable to 2018 has been adjusted
out of both the three months and year ended December 31, 2019 for
comparability.
|
(3)
|
As a result of the
reinstatement of the tax-loss carryback provisions under the
Coronavirus Aid, Relief, and Economic Security Act (the "CARES"
Act), we recognized an additional tax benefit during the year ended
December 31, 2020 from applying the carryback to periods with a 35%
tax rate.
|
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 (Loss) per share
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Reported diluted
income (loss) per share
|
|
$
|
(3.98)
|
|
|
$
|
0.44
|
|
|
$
|
(8.26)
|
|
|
$
|
4.06
|
|
|
|
|
|
|
|
|
|
|
Adjusting items,
after tax (per share) (1) (2)
|
|
|
|
|
|
|
|
|
Net inventory LCM
valuation loss (benefit)
|
|
(0.38)
|
|
|
(0.21)
|
|
|
0.30
|
|
|
(0.52)
|
|
Total
unrealized hedging (gain) loss where the hedged item is
not yet recognized in the financial statements
|
|
(0.18)
|
|
|
0.17
|
|
|
(0.20)
|
|
|
0.23
|
|
Non-cash change in
fair value of S&O Obligation associated
with hedging activities
|
|
0.09
|
|
|
—
|
|
|
0.07
|
|
|
—
|
|
Goodwill impairment
expense
|
|
1.64
|
|
|
—
|
|
|
1.64
|
|
|
—
|
|
Gain from sale of
Bakersfield non-operating refinery
|
|
—
|
|
|
—
|
|
|
(0.59)
|
|
|
—
|
|
COVID-related
severance costs
|
|
0.04
|
|
|
—
|
|
|
0.09
|
|
|
—
|
|
Non-operating,
pre-acquisition litigation contingent losses and
related legal expenses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.07
|
|
Retroactive biodiesel
tax credit
|
|
—
|
|
|
(0.48)
|
|
|
—
|
|
|
(0.47)
|
|
Non-operating
write-off of pre-acquisition asset
|
|
—
|
|
|
0.05
|
|
|
—
|
|
|
0.05
|
|
Discontinued
operations (income) loss
|
|
—
|
|
|
(0.08)
|
|
|
—
|
|
|
(0.07)
|
|
Tax benefit from loss
carryback provided by CARES Act
|
|
—
|
|
|
—
|
|
|
(0.23)
|
|
|
—
|
|
Tax adjustment to
reduce deferred tax asset valuation
allowance resulting from Big Springs Gathering Assets
Acquisition
|
|
—
|
|
|
—
|
|
|
(0.30)
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Total adjusting
items
|
|
1.21
|
|
|
(0.55)
|
|
|
0.78
|
|
|
(0.71)
|
|
Adjusted net
income (loss) per share
|
|
$
|
(2.77)
|
|
|
$
|
(0.11)
|
|
|
$
|
(7.48)
|
|
|
$
|
3.35
|
|
|
|
(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)
|
For periods of
Adjusted net loss, Adjustments (Adjusting Items) and Adjusted net
loss per share are presented using basic weighted average shares
outstanding.
|
20|
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 EBITDA
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Reported net
income (loss) attributable to Delek
|
|
$
|
(293.2)
|
|
|
$
|
32.7
|
|
|
$
|
(608.0)
|
|
|
$
|
310.6
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
30.8
|
|
|
33.4
|
|
|
125.7
|
|
|
119.8
|
|
Income tax (benefit)
expense - continuing operations
|
|
(58.1)
|
|
|
(12.1)
|
|
|
(192.7)
|
|
|
71.7
|
|
Depreciation and
amortization
|
|
90.2
|
|
|
47.6
|
|
|
267.6
|
|
|
194.3
|
|
EBITDA
|
|
(230.3)
|
|
|
101.6
|
|
|
(407.4)
|
|
|
696.4
|
|
|
|
|
|
|
|
|
|
|
Adjusting
items
|
|
|
|
|
|
|
|
|
Net inventory LCM
valuation (benefit) loss
|
|
(36.4)
|
|
|
(20.8)
|
|
|
29.2
|
|
|
(52.3)
|
|
Unrealized
inventory/commodity hedging (gain) loss where the
hedged item is not yet recognized in the financial
statements
|
|
(18.7)
|
|
|
16.5
|
|
|
(20.5)
|
|
|
22.6
|
|
Unrealized RINs and
other hedging (gain) loss where the
hedged item is not yet recognized in the financial
statements
|
|
1.4
|
|
|
—
|
|
|
1.4
|
|
|
—
|
|
Total
unrealized hedging gain (loss) where the hedged item is
not yet recognized in the financial statements
|
|
(17.3)
|
|
|
16.5
|
|
|
(19.1)
|
|
|
22.6
|
|
Non-cash change in
fair value of S&O Obligation associated with
hedging activities (1)
|
|
8.3
|
|
|
—
|
|
|
6.9
|
|
|
—
|
|
Goodwill impairment
expense
|
|
126.0
|
|
|
—
|
|
|
126.0
|
|
|
—
|
|
Gain from sale of
Bakersfield non-operating refinery
|
|
—
|
|
|
—
|
|
|
(56.8)
|
|
|
—
|
|
COVID-related
severance costs
|
|
3.9
|
|
|
—
|
|
|
8.5
|
|
|
—
|
|
Non-operating,
pre-acquisition litigation contingent losses and related legal
expenses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6.7
|
|
Retroactive biodiesel
tax credit (2)
|
|
—
|
|
|
(36.0)
|
|
|
—
|
|
|
(36.0)
|
|
Non-operating
write-off of pre-acquisition asset
|
|
—
|
|
|
4.8
|
|
|
—
|
|
|
4.8
|
|
Discontinued
operations (income) loss, net of tax
|
|
—
|
|
|
(6.0)
|
|
|
—
|
|
|
(5.2)
|
|
Net income
attributable to non-controlling interest
|
|
8.2
|
|
|
5.3
|
|
|
37.6
|
|
|
25.6
|
|
Total Adjusting
items
|
|
92.7
|
|
|
(36.2)
|
|
|
132.3
|
|
|
(33.8)
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
|
(137.6)
|
|
|
$
|
65.4
|
|
|
$
|
(275.1)
|
|
|
$
|
662.6
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Represents an
adjustment to exclude the effect of non-cash changes in fair value
related to economic hedges that were entered into as discrete
amendments to the S&O Obligation (i.e., not contemplated in the
April 2020 Amendment and Restatement to the S&O Obligation), as
such fair value changes are hedges where the hedged item (a future
fee) is not yet recognized in the financial statements.
|
(2)
|
An adjustment for the
portion of the retroactive biodiesel tax credit reenacted in
December 2019 but that was attributable to 2018 has been adjusted
out of both the three months and year ended December 31, 2019 for
comparability.
|
21|
Delek US Holdings,
Inc.
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Amounts Reported Under U.S. GAAP
|
|
|
|
|
|
|
$ in
millions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2020
|
Reconciliation of
U.S. GAAP Segment Contribution
Margin to Adjusted Segment Contribution Margin
|
|
Refining
|
|
Logistics
|
|
Retail
|
|
Corporate,
Other and
Eliminations
|
|
Consolidated
|
Reported segment
contribution margin
|
|
$
|
(82.0)
|
|
|
$
|
62.2
|
|
|
$
|
12.7
|
|
|
$
|
(25.4)
|
|
|
$
|
(32.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusting
items
|
|
|
|
|
|
|
|
|
|
|
Net inventory LCM
valuation (benefit) loss
|
|
(36.4)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(36.4)
|
|
Unrealized
inventory/commodity hedging (gain) loss
where the hedged item is not yet recognized in the
financial statements
|
|
(19.6)
|
|
|
0.4
|
|
|
—
|
|
|
0.5
|
|
|
(18.7)
|
|
Unrealized RINs and
other hedging (gain) loss where
the hedged item is not yet recognized in the financial
statements
|
|
1.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.4
|
|
Total
unrealized hedging (gain) loss where the hedged
item is not yet recognized in the financial statements
|
|
(18.2)
|
|
|
0.4
|
|
|
—
|
|
|
0.5
|
|
|
(17.3)
|
|
COVID-related
severance costs
|
|
1.4
|
|
|
0.3
|
|
|
0.3
|
|
|
0.2
|
|
|
2.2
|
|
Non-cash change in
fair value of S&O Obligation
associated with hedging activities (1)
|
|
8.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8.3
|
|
Total Adjusting
items
|
|
(44.9)
|
|
|
0.7
|
|
|
0.3
|
|
|
0.7
|
|
|
(43.2)
|
|
Adjusted segment
contribution margin
|
|
$
|
(126.9)
|
|
|
$
|
62.9
|
|
|
$
|
13.0
|
|
|
$
|
(24.7)
|
|
|
$
|
(75.7)
|
|
Delek US Holdings,
Inc.
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Amounts Reported Under U.S. GAAP
|
|
|
|
|
|
|
$ in
millions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2019
|
Reconciliation of
U.S. GAAP Segment Contribution
Margin to Adjusted Segment Contribution Margin
|
|
Refining
|
|
Logistics
|
|
Retail
|
|
Corporate,
Other and
Eliminations
|
|
Consolidated
|
Reported segment
contribution margin
|
|
$
|
127.8
|
|
|
$
|
42.5
|
|
|
$
|
12.1
|
|
|
$
|
(11.0)
|
|
|
$
|
171.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusting
items
|
|
|
|
|
|
|
|
|
|
|
Net inventory LCM
valuation (benefit) loss
|
|
(20.8)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(20.8)
|
|
Unrealized
inventory/commodity hedging (gain) loss
where the hedged item is not yet recognized in the
financial statements
|
|
17.8
|
|
|
0.1
|
|
|
—
|
|
|
(1.4)
|
|
|
16.5
|
|
Retroactive biodiesel
tax credit (2)
|
|
(36.0)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(36.0)
|
|
Total Adjusting
items
|
|
(39.0)
|
|
|
0.1
|
|
|
—
|
|
|
(1.4)
|
|
|
(40.3)
|
|
Adjusted segment
contribution margin
|
|
$
|
88.8
|
|
|
$
|
42.6
|
|
|
$
|
12.1
|
|
|
$
|
(12.4)
|
|
|
$
|
131.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
22|
Delek US Holdings,
Inc.
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Amounts Reported Under U.S. GAAP
|
|
|
|
|
|
|
$ in
millions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, 2020
|
Reconciliation of
U.S. GAAP Segment Contribution
Margin to Adjusted Segment Contribution Margin
|
|
Refining
|
|
Logistics
|
|
Retail
|
|
Corporate,
Other and
Eliminations
|
|
Consolidated
|
Reported segment
contribution margin
|
|
$
|
(330.5)
|
|
|
$
|
238.1
|
|
|
$
|
67.6
|
|
|
$
|
(74.4)
|
|
|
$
|
(99.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusting
items
|
|
|
|
|
|
|
|
|
|
|
Net inventory LCM
valuation (benefit) loss
|
|
29.4
|
|
|
(0.1)
|
|
|
—
|
|
|
(0.1)
|
|
|
29.2
|
|
Unrealized
inventory/commodity hedging (gain) loss
where the hedged item is not yet recognized in the
financial statements
|
|
(18.7)
|
|
|
0.1
|
|
|
—
|
|
|
(1.9)
|
|
|
(20.5)
|
|
Unrealized RINs and
other hedging (gain) loss where
the hedged item is not yet recognized in the financial
statements
|
|
1.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.4
|
|
Total
unrealized hedging (gain) loss where the hedged
item is not yet recognized in the financial statements
|
|
(17.3)
|
|
|
0.1
|
|
|
—
|
|
|
(1.9)
|
|
|
(19.1)
|
|
COVID-related
severance costs
|
|
3.7
|
|
|
0.5
|
|
|
0.7
|
|
|
0.4
|
|
|
5.3
|
|
Non-cash change in
fair value of S&O Obligation
associated with hedging activities (1)
|
|
6.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6.9
|
|
Total Adjusting
items
|
|
22.7
|
|
|
0.5
|
|
|
0.7
|
|
|
(1.6)
|
|
|
22.3
|
|
Adjusted segment
contribution margin
|
|
$
|
(307.8)
|
|
|
$
|
238.6
|
|
|
$
|
68.3
|
|
|
$
|
(76.0)
|
|
|
$
|
(76.9)
|
|
Delek US Holdings,
Inc.
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Amounts Reported Under U.S. GAAP
|
|
|
|
|
|
|
$ in
millions
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, 2019
|
Reconciliation of
U.S. GAAP Segment Contribution
Margin to Adjusted Segment Contribution Margin
|
|
Refining
|
|
Logistics
|
|
Retail
|
|
Corporate,
Other and
Eliminations
|
|
Consolidated
|
Reported segment
contribution margin
|
|
$
|
777.9
|
|
|
$
|
173.4
|
|
|
$
|
58.5
|
|
|
$
|
(51.0)
|
|
|
$
|
958.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusting
items
|
|
|
|
|
|
|
|
|
|
|
Net inventory LCM
valuation (benefit) loss
|
|
(52.2)
|
|
|
(0.1)
|
|
|
—
|
|
|
—
|
|
|
(52.3)
|
|
Unrealized
inventory/commodity hedging (gain) loss
where the hedged item is not yet recognized in the
financial statements
|
|
18.7
|
|
|
0.4
|
|
|
—
|
|
|
3.5
|
|
|
22.6
|
|
Retroactive biodiesel
tax credit (2)
|
|
(36.0)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(36.0)
|
|
Total Adjusting
items
|
|
(69.5)
|
|
|
0.3
|
|
|
—
|
|
|
3.5
|
|
|
(65.7)
|
|
Adjusted segment
contribution margin
|
|
$
|
708.4
|
|
|
$
|
173.7
|
|
|
$
|
58.5
|
|
|
$
|
(47.5)
|
|
|
$
|
893.1
|
|
|
|
(1)
|
Represents an
adjustment to exclude the effect of non-cash changes in fair value
related to economic hedges that were entered into as discrete
amendments to the S&O Obligation (i.e., not contemplated in the
April 2020 Amendment and Restatement to the S&O Obligation), as
such fair value changes are hedges where the hedged item (a future
fee) is not yet recognized in the financial statements.
|
(2)
|
An adjustment for the
portion of the retroactive biodiesel tax credit reenacted in
December 2019 but that was attributable to 2018 has been adjusted
out of both the three months and year ended December 31, 2019 for
comparability.
|
23|
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
Refining Segment Gross Margin (Loss) to
Refining Margin
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(Unaudited)
|
(Unaudited)
|
Net
revenues
|
|
$
|
1,449.3
|
|
|
$
|
2,161.9
|
|
|
$
|
5,817.7
|
|
|
$
|
8,798.5
|
|
Cost of
sales
|
|
1,597.3
|
|
|
2,069.5
|
|
|
6,346.5
|
|
|
8,154.9
|
|
Gross margin
(loss)
|
|
(148.0)
|
|
|
92.4
|
|
|
(528.8)
|
|
|
643.6
|
|
Add back (items
included in cost of sales):
|
|
|
|
|
|
|
|
|
Operating expenses
(excluding depreciation and amortization)
|
|
100.2
|
|
|
135.7
|
|
|
402.7
|
|
|
492.4
|
|
Depreciation and
amortization
|
|
66.0
|
|
|
35.4
|
|
|
198.3
|
|
|
134.3
|
|
Refining
margin
|
|
$
|
18.2
|
|
|
$
|
263.5
|
|
|
$
|
72.2
|
|
|
$
|
1,270.3
|
|
Information about Delek US Holdings, Inc. can be found on its
website (www.delekus.com), investor relations webpage
(ir.delekus.com), news webpage (www.delekus.com/news) and its
Twitter account (@DelekUSHoldings).
24|
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SOURCE Delek US Holdings, Inc.