- Completed the acquisition of 48
percent ownership in Alon USA in May 2015
- Tyler refinery total throughput
reaches record level of 75,300 barrels per day
- El Dorado sales volume reaches
record level of 87,600 barrels per day
Delek US Holdings, Inc. (NYSE: DK) (“Delek US”) today announced
financial results for its second quarter ended June 30, 2015.
Delek US reported a second quarter net income of $48.3 million, or
$0.79 per diluted share, versus net income of $54.9 million, or
$0.92 per diluted share, for the quarter ended June 30, 2014.
Operating income in the second quarter 2014 included a one-time
non-cash expense of approximately $22.6 million before tax related
to the financial settlement under the restated supply and offtake
agreement with J Aron.
Second quarter 2015 results included a $15.3 million net hedging
loss, of which $13.4 million was unrealized. There was
approximately $22.8 million of costs that reduced performance in
the period, which includes the unrealized hedging loss, expenses
related to the Alon USA transaction, higher depreciation due to
asset disposals and unanticipated pipeline related expenses.
The effect of the Alon USA transaction for the period from May
14, 2015 to June 30, 2015 is included in results for the second
quarter 2015. Equity income related to the ownership in Alon USA
was $9.2 million, which was reduced by $1.7 million of depreciation
expense for a net pre-tax equity income of $7.5 million. As part of
the financing of this transaction, interest expense increased by
$6.2 million in the second quarter 2015, which included $3.9
million of one-time interest expense related to financing
costs.
Results in the second quarter 2015 benefited from increased
throughput at the Tyler, Texas refinery and a higher WTI Gulf Coast
5-3-2 crack spread on a year-over-year basis. In the first quarter
2015, as part of the inventory management strategy, crude oil and
product inventory was built during a period of lower prices. In the
second quarter 2015 there was a 1.2 million barrel inventory
reduction that occurred, consisting primarily of crude oil, during
a period of rising prices. This change in inventory during the
second quarter 2015 was a portion of a $19.0 million net inventory
benefit during the period. An offsetting factor was a narrower
discount between Midland WTI and Cushing WTI on a year-over-year
basis, which lowered the performance in the refining segment.
Uzi Yemin, Chairman, President and Chief Executive Officer of
Delek US stated, "During the second quarter our Tyler refinery
reached a total throughput record following the completion of a
15,000 barrel per day expansion in March 2015. In addition, our
refining segment achieved an operating cost of approximately $4.00
per barrel in the quarter. We took additional steps to improve our
crude sourcing flexibility at the El Dorado refinery through a new
agreement that will provide access to the recently reversed Exxon
North pipeline. This new access allowed Cushing WTI to be delivered
from Longview, Texas to Finney, Louisiana and then to El Dorado
beginning in July 2015. Lastly, same store fuel gallons and
merchandise sales increased year-over-year in our Retail segment
and we made progress on the joint venture crude oil pipeline
projects in our Logistics segment."
Yemin concluded, "Also in May we completed a strategic step in
our growth plan with the acquisition of 48 percent of the
outstanding shares of Alon USA, which added approximately $7.5
million of pre-tax income during the quarter. We look forward to
continuing to work with Alon's board and management team, and are
excited about the potential to create additional value in the
future. Our financial position remains strong, and we expect to see
declining capital expenditure needs in the second half of the year,
which should create the potential for increased free cash flow from
our operations. These factors should provide support for our growth
initiatives, while allowing us the flexibility to continue to
return cash to our shareholders."
Alon Transaction
On May 14, 2015, Delek US purchased from Alon Israel Oil Company
Ltd. (“Alon Israel”) approximately 33.7 million shares, or
approximately 48 percent of the outstanding shares, of Alon USA
Energy, Inc. (NYSE: ALJ) (“Alon USA”) common stock. Consideration
paid to Alon Israel included 6.0 million restricted shares of Delek
US, a $145.0 million unsecured promissory note and $200.0 million
in cash. The cash payment was financed through a $176.0 million
increase in Lion Oil's term loan facility and cash on hand.
In addition to the effects discussed above of this transaction
on interest and depreciation expense, the weighted average diluted
shares outstanding for Delek US increased by approximately 3.0
million in the second quarter 2015 reflecting a higher share count
for the 48 days that followed the Alon USA transaction. The
depreciation expense is estimated to be approximately $3.4 million
on a quarterly basis going forward, but is subject to change based
on the final determination of fair value as of the acquisition
date.
Regular Quarterly
Dividend
Delek US announced today that its Board of Directors had
declared its regular quarterly cash dividend of $0.15 per share.
Shareholders of record on August 25, 2015 will receive this cash
dividend payable on September 15, 2015.
Liquidity
As of June 30, 2015, Delek US had a cash balance of $378.4
million and total debt of $971.9 million, resulting in net debt of
$593.5 million. This compares to $297.8 million of net debt at
March 31, 2015. As of June 30, 2015, Delek US' subsidiary,
Delek Logistics Partners, LP (NYSE: DKL) ("Delek Logistics"), had
$316.9 million of debt, which is included in the consolidated
amounts on Delek US' balance sheet. Excluding Delek Logistics,
Delek US had approximately $378.3 million in cash and $655.0
million of debt, or a $276.7 million net debt position. During the
second quarter 2015, the increase in debt was primarily associated
with the purchase of approximately 48 percent of the outstanding
shares of Alon USA.
Refining Segment
Three Months EndedJune 30, Contribution Margin
2015 2014 ($ in millions)
Refining Segment $112.0 $122.9 Tyler Refinery $75.2 $84.6 El Dorado
Refinery $36.6 $35.8
Refining contribution margin decreased to $112.0 million from
$122.9 million in the second quarter 2014. This decline in
year-over-year performance can be attributed to several factors.
First, the Midland discount to WTI Cushing narrowed on a
year-over-year basis. Second, a net hedging loss of $15.2 million
occurred in the second quarter 2015 compared to an $8.5 million
hedging gain in the prior year period. In the prior year period,
the contribution margin at El Dorado was reduced by a before-tax
$22.6 million one-time non-cash expense related to the financial
settlement of the restated supply and offtake agreement with J
Aron.
The WTI Midland crude discount to WTI Cushing declined on a
year-over-year basis, averaging $0.60 per barrel in second quarter
2015 compared to an average of $8.37 per barrel in the second
quarter 2014. This decline in the Midland differential was
partially offset by a crude oil futures market that was in contango
of $1.77 per barrel in the second quarter 2015 compared to
backwardation of $0.92 per barrel in the second quarter 2014. The
Gulf Coast 5-3-2 crack spread averaged $18.60 per barrel during the
second quarter 2015, an increase from $17.10 per barrel during
second quarter 2014.
Tyler, Texas Refinery
Operating Highlights Three Months EndedJune
30, 2015 2014 Crude Throughput, bpd 69,685
58,021 Total Throughput, bpd 75,304 65,808
Total Sales Volume, bpd 71,588 65,969 Refining Margin, $/bbl
sold $15.36 $18.61 Direct Operating Expense, $ in millions
$24.9 $27.1 Direct Operating Expense, $/bbl sold $3.82 $4.52
During the second quarter 2015, the Tyler refinery benefited
from the 15,000 barrel per day expansion completed in March 2015.
This was the primary driver in higher throughputs and sales volume.
Direct operating expense decreased primarily due to lower utility,
chemical/catalysts and insurance expense on a year-over
year-basis.
Following the completion of the turnaround and expansion
project, total depreciation increased for Delek US beginning in the
second quarter 2015. Approximately $1.3 million of this amount in
the second quarter 2015 was one-time accelerated depreciation
expense related to disposal of equipment associated with work
during the Tyler turnaround.
El Dorado, Arkansas Refinery
Operating Highlights Three Months EndedJune
30, 2015 2014 Crude Throughput, bpd 74,450
79,010 Total Throughput, bpd 80,436 82,324
Total Sales Volume, bpd 87,565 85,812 Refining Margin, $/bbl
sold $8.82 $8.43 Direct Operating Expense, $ in millions
$33.7 $30.0 Direct Operating Expense, $/bbl sold $4.23 $3.85
During the second quarter 2015, while crude throughput was lower
on a year-over-year basis, sales volume increased to a record level
of approximately 87,600 barrels per day. In the second quarter
2015, refining margin was reduced by approximately $15.0 million
due to higher cost asphalt inventory that was sold during the
period. In the prior year period, the refining margin was reduced
by $22.6 million, or $2.89 per barrel, as a result of the financial
settlement of the supply and offtake agreement. Direct operating
expense increased year-over-year due to maintenance, environmental
remediation and employee related expenses compared to the second
quarter 2014. Included in the second quarter 2015, are
approximately $4.2 million of unanticipated pipeline expenses that
are primarily related to environmental remediation costs in the
period.
Logistics Segment
Delek US and its affiliates beneficially own approximately 62
percent (including the 2 percent general partner interest) of all
outstanding Delek Logistics units. The logistics segment's results
include 100 percent of the performance of Delek Logistics and
adjustments for the minority interests are made on a consolidated
basis.
The logistics segment's contribution margin in the second
quarter 2015 was $28.8 million compared to $30.1 million in the
second quarter 2014. On a year-over-year basis, results benefited
from Delek Logistics’ acquisitions over the past year, including
the El Dorado, Arkansas rail offloading rack and the Tyler, Texas
crude oil storage tank purchased on March 31, 2015 from
subsidiaries of Delek US. Additionally, new agreements put in place
on January 1, 2015 increased contribution from the Paline Pipeline,
and higher throughputs on assets supporting the Tyler, Texas
refinery benefited results. These factors were more than offset by
a lower gross margin per barrel in the west Texas wholesale
business.
Retail Segment
Three Months EndedJune 30, Retail Operating
Highlights 2015 2014 Contribution margin, $ in
millions $14.3 $16.7 Operating expenses, $ in
millions $35.6 $34.8 Merchandise margin 28.7 % 28.4 % Fuel
margin, per gallon $0.153 $0.193 Store count (end of period)
360 362
Retail segment contribution margin decreased year-over-year
primarily due to lower fuel margins and higher operating expenses.
Operating expense increased primarily due to workers compensation
and general liability claim settlements, which was partially offset
by lower credit card expense on a year-over-year basis. Fuel
gallons sold increased to 116.2 million from 109.4 million in the
prior-year period and merchandise sales increased to $109.2 million
compared to $103.7 million. On a same store sales basis, fuel
gallons sold increased 2.6% and merchandise sales increased 3.6%
from second quarter 2014. The increase in same store fuel gallons
was primarily driven by improved performance from the large-format
store category on a year-over-year basis. At the end of the second
quarter 2015, there were a total of 64 large-format stores in the
portfolio.
Second Quarter 2015 Results |
Conference Call Information
Delek US will hold a conference call to discuss its second
quarter 2015 results on Tuesday, August 4, 2015 at 11:30 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. For those who cannot listen to the live broadcast, a
telephonic replay will be available through November 4, 2015 by
dialing (855) 859-2056, passcode 69603058. An archived version of
the replay will also be available at www.DelekUS.com for 90
days.
Investors may also wish to listen to Delek Logistics’ (NYSE:
DKL) second quarter earnings conference call that will be held on
August 4, 2015 at 7:00 a.m. Central Time and review Delek
Logistics’ earnings press release. Market trends and information
disclosed by Delek Logistics may be relevant to the logistics
segment reported by Delek US. Both a replay of the conference call
and press release for Delek Logistics are available online at
www.deleklogistics.com.
About Delek US Holdings,
Inc.
Delek US Holdings, Inc. is a diversified downstream energy
company with assets in petroleum refining, logistics and
convenience store retailing. The refining segment consists of
refineries operated in Tyler, Texas and El Dorado, Arkansas with a
combined nameplate production capacity of 155,000 barrels per day.
Delek US Holdings, Inc. and its affiliates also own approximately
62 percent (including the 2 percent general partner interest) of
Delek Logistics Partners, LP. Delek Logistics Partners, LP (NYSE:
DKL) is a growth-oriented master limited partnership focused on
owning and operating midstream energy infrastructure assets. The
retail segment markets motor fuel and convenience merchandise
through a network of approximately 360 company-operated convenience
store locations operated under the MAPCO Express®, MAPCO Mart®,
East Coast®, Fast Food and Fuel™, Favorite Markets®, Delta Express®
and Discount Food Mart™ brand names. Delek US Holdings, Inc. also
owns approximately 48 percent of the outstanding common stock of
Alon USA Energy, Inc. (NYSE: ALJ).
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 and opportunities and other statements, concerns, or
matters that are not historical facts are “forward-looking
statements,” as that term is defined under the federal securities
laws.
Investors are cautioned that the following important factors,
among others, may affect these forward-looking statements. These
factors include but are not limited to: risks and uncertainties
with respect to the quantities and costs of crude oil we are able
to obtain and the price of the refined petroleum products we
ultimately sell; gains and losses from derivative instruments;
changes in the scope, costs, and/or timing of capital and
maintenance projects; management's ability to execute its strategy
of growth through acquisitions and the transactional risks
associated with acquisitions; the effect on our financial results
by the financial results of Alon USA Energy, Inc., in which we hold
a significant equity investment; operating hazards inherent in
transporting, storing and processing crude oil and intermediate and
finished petroleum products; our competitive position and the
effects of competition; the projected growth of the industries in
which we operate; general economic and business conditions,
particularly levels of spending relating to travel and tourism or
conditions affecting the southeastern United States; and other
risks contained in our filings with the United States Securities
and Exchange Commission.
Forward-looking statements should not be read as a guarantee of
future performance or results and will not be accurate indications
of the times at, or by which such performance or results will be
achieved. Forward-looking information is based on information
available at the time and/or management's good faith belief with
respect to future events, and is subject to risks and uncertainties
that could cause actual performance or results to differ materially
from those expressed in the statements. Delek US undertakes no
obligation to update or revise any such forward-looking
statements.
Delek US Holdings, Inc.
Consolidated Balance Sheets
(Unaudited)
June 30, 2015
December 31, 2014
(In millions, except share and
pershare data)
ASSETS Current assets: Cash and cash equivalents $ 378.4 $
444.1 Accounts receivable 284.0 197.0 Inventory 473.5 469.6 Other
current assets 117.6 136.7 Total current assets
1,253.5 1,247.4 Property, plant and equipment:
Property, plant and equipment 2,033.8 1,952.9 Less: accumulated
depreciation (519.4 ) (509.6 ) Property, plant and equipment, net
1,514.4 1,443.3 Goodwill 73.9 73.9 Other intangibles,
net 27.8 21.4 Equity method investments 598.6 — Other non-current
assets 113.8 105.1 Total assets $ 3,582.0 $
2,891.1
LIABILITIES AND STOCKHOLDERS’ EQUITY Current
liabilities: Accounts payable $ 503.9 $ 476.7 Current portion of
long-term debt and capital lease obligations 103.7 56.4 Obligation
under Supply and Offtake Agreement 189.1 200.9 Accrued expenses and
other current liabilities 142.4 122.9 Total current
liabilities 939.1 856.9 Non-current liabilities:
Long-term debt and capital lease obligations, net of current
portion 868.2 533.3 Environmental liabilities, net of current
portion 8.3 8.5 Asset retirement obligations 9.3 9.2 Deferred tax
liabilities 273.0 266.3 Other non-current liabilities 32.2
18.5 Total non-current liabilities 1,191.0 835.8
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,
66,836,208 shares and 60,637,525 shares issued at June 30, 2015 and
December 31, 2014, respectively 0.7 0.6 Additional paid-in capital
632.6 395.1 Accumulated other comprehensive loss (13.4 ) (12.6 )
Treasury stock, 3,365,561 shares, at cost, as of both June 30, 2015
and December 31, 2014 (112.6 ) (112.6 ) Retained earnings 745.4
731.2 Non-controlling interest in subsidiaries 199.2 196.7
Total stockholders’ equity 1,451.9 1,198.4
Total liabilities and stockholders’ equity $ 3,582.0 $
2,891.1
Delek US Holdings, Inc.
Consolidated Statements of
Income
Three Months Ended June 30, Six Months
Ended June 30, 2015 2014
2015 2014 (Unaudited)
(Unaudited) (In millions, except share and per share
data) Net sales $ 1,693.1 $ 2,374.7 $ 2,843.7 $ 4,240.4
Operating costs and expenses: Cost of goods sold 1,438.2 2,108.3
2,444.3 3,751.6 Operating expenses 106.0 102.2 197.4 200.7 General
and administrative expenses 34.3 30.0 67.0 61.6 Depreciation and
amortization 34.9 28.2 63.2 52.8 Other operating income, net (0.1 )
— (0.1 ) — Total operating costs and expenses 1,613.3
2,268.7 2,771.8 4,066.7 Operating
income 79.8 106.0 71.9 173.7 Interest expense 17.3 10.1 27.4 19.7
Interest income (0.2 ) — (0.6 ) (0.4 ) Income from equity method
investments (7.4 ) — (7.4 ) — Other (income) loss, net (0.1 ) 0.1
(1.0 ) — Total non-operating expenses, net 9.6
10.2 18.4 19.3 Income before income tax
expense 70.2 95.8 53.5 154.4 Income tax expense 15.1 32.6
9.1 51.9 Net income 55.1 63.2 44.4 102.5 Net
income attributed to non-controlling interest 6.8 8.3
12.2 13.9 Net income attributable to Delek $ 48.3
$ 54.9 $ 32.2 $ 88.6 Basic earnings per
share: Basic earnings per share $ 0.80 $ 0.93 $ 0.55
$ 1.49 Diluted earnings per share $ 0.79 $
0.92 $ 0.54 $ 1.48 Weighted average common
shares outstanding: Basic 60,555,444 59,283,465
58,931,705 59,266,256 Diluted 61,114,471
59,875,261 59,470,929 59,869,979 Dividends
declared per common share outstanding $ 0.15 $ 0.25 $
0.30 $ 0.50
Delek US Holdings,
Inc. Consolidated Statements of Cash Flows (In millions)
Six Months Ended June 30, 2015
2014 Cash Flow Data (Unaudited) Net cash
provided by operating activities $ 92.4 $ 172.0 Net cash used in
investing activities (362.9 ) (164.3 ) Net cash provided by
financing activities 204.8 152.4 Net (decrease)
increase in cash and cash equivalents $ (65.7 ) $ 160.1
Delek US Holdings, Inc. Segment Data
(Unaudited) (In millions)
Three Months
Ended June 30, 2015 Refining
Retail Logistics
Corporate,Other
andEliminations
Consolidated Net sales (excluding intercompany
fees and sales) $ 1,147.9 $ 409.9 $ 134.1 $ 1.2 $ 1,693.1
Intercompany fees and sales 188.9 — 38.0 (226.9 ) — Operating costs
and expenses: Cost of goods sold 1,164.8 360.0 132.5 (219.1 )
1,438.2 Operating expenses 60.0 35.6 10.8 (0.4
) 106.0 Segment contribution margin $ 112.0 $ 14.3
$ 28.8 $ (6.2 ) 148.9 General and administrative
expenses 34.3 Depreciation and amortization 34.9 Other operating
income (0.1 ) Operating income $ 79.8 Total assets $ 2,060.9
$ 452.3 $ 352.0 $ 716.8 $ 3,582.0
Capital spending (excluding business combinations) $ 38.2
$ 2.2 $ 6.0 $ 1.3 $ 47.7
Three Months Ended June 30, 2014
Refining Retail
Logistics
Corporate,Other
andEliminations
Consolidated Net sales (excluding intercompany
fees and sales) $ 1,659.2 $ 508.6 $ 207.4 $ (0.5 ) $ 2,374.7
Intercompany fees and sales 187.4 — 29.0 (216.4 ) — Operating costs
and expenses: Cost of goods sold 1,665.2 457.1 196.6 (210.6 )
2,108.3 Operating expenses 58.5 34.8 9.7 (0.8
) 102.2 Segment contribution margin $ 122.9 $ 16.7 $
30.1 $ (5.5 ) 164.2 General and administrative expenses 30.0
Depreciation and amortization 28.2 Operating income $ 106.0 Total
assets $ 2,084.3 $ 466.3 $ 334.6 $ 274.4
$ 3,159.6 Capital spending (excluding business combinations)
$ 23.1 $ 6.5 $ 2.0 $ 7.5 $ 39.1
Delek US Holdings, Inc. Segment Data (Unaudited) (In
millions)
Six Months Ended June 30,
2015 Refining Retail
Logistics
Corporate,Other
andEliminations
Consolidated Net sales (excluding intercompany
fees and sales) $ 1,848.6 $ 747.9 $ 245.3 $ 1.9 $ 2,843.7
Intercompany fees and sales 315.2 — 70.3 (385.5 ) — Operating costs
and expenses: Cost of goods sold 1,921.7 653.2 240.9 (371.5 )
2,444.3 Operating expenses 108.2 68.1 21.6
(0.5 ) 197.4 Segment contribution margin $ 133.9 $
26.6 $ 53.1 $ (11.6 ) $ 202.0 General and
administrative expenses 67.0 Depreciation and amortization 63.2
Other operating income (0.1 ) Operating income $ 71.9
Capital spending (excluding business combinations) $ 123.2 $
3.5 $ 9.8 $ 1.9 $ 138.4
Six Months Ended June 30, 2014 Refining
Retail Logistics
Corporate,Other
andEliminations
Consolidated Net sales (excluding intercompany
fees and sales) $ 2,914.8 $ 940.2 $ 385.7 $ (0.3 ) $ 4,240.4
Intercompany fees and sales 294.6 — 54.2 (348.8 ) — Operating costs
and expenses: Cost of goods sold 2,869.7 850.6 368.8 (337.5 )
3,751.6 Operating expenses 116.3 67.0 19.2
(1.8 ) 200.7 Segment contribution margin $ 223.4 $ 22.6
$ 51.9 $ (9.8 ) $ 288.1 General and administrative
expenses 61.6 Depreciation and amortization 52.8 Other operating
income — Operating income $ 173.7 Capital spending (excluding
business combinations) $ 125.0 $ 13.1 $ 4.3 $
11.0 $ 153.4
Refining
Segment
Three Months Ended June 30, Six Months Ended
June 30, 2015 2014 2015
2014
Tyler
Refinery
(Unaudited) (Unaudited) Days operated in period 91 91 181 181 Total
sales volume (average barrels per day)(1) 71,588 65,969 47,528
66,001 Products manufactured (average barrels per day): Gasoline
38,242 34,073 24,952 35,543 Diesel/Jet 30,403 26,392 18,945 25,753
Petrochemicals, LPG, NGLs 3,697 2,749 2,063 2,350 Other 1,788
1,712 1,071 1,741 Total production 74,130
64,926 47,031 65,387 Throughput (average
barrels per day): Crude oil 69,685 58,021 44,271 58,148 Other
feedstocks 5,619 7,787 3,555 8,127 Total
throughput 75,304 65,808 47,826 66,275 Per
barrel of sales: Tyler refining margin $ 15.36 $ 18.61 $ 13.65 $
18.04 Direct operating expenses $ 3.82 $ 4.52 $ 5.26 $ 4.59
Three Months Ended June
30, Six Months Ended June 30, 2015
2014 2015 2014
El Dorado
Refinery
(Unaudited) (Unaudited) Days in period 91 91 181 181 Total sales
volume (average barrels per day)(2) 87,565 85,812 83,376 72,418
Products manufactured (average barrels per day): Gasoline 39,956
39,619 39,981 31,143 Diesel 28,933 31,614 28,688 24,197
Petrochemicals, LPG, NGLs 772 1,095 719 850 Asphalt 7,365 6,804
7,722 4,927 Other 1,763 1,131 1,760 832 Total
production 78,789 80,263 78,870 61,949
Throughput (average barrels per day): Crude oil 74,450 79,010
75,566 58,349 Other feedstocks 5,986 3,314 4,690
5,337 Total throughput 80,436 82,324 80,256
63,686 Per barrel of sales: El Dorado refining margin $ 8.82
$ 8.43 $ 8.35 $ 8.90 Direct operating expenses $ 4.23 $ 3.85 $ 3.99
$ 4.50
Pricing
statistics (average for the period presented):
WTI — Cushing crude oil (per barrel) $ 57.80 $ 103.07 $ 53.33 $
100.85 WTI — Midland crude oil (per barrel) $ 57.41 $ 95.43 $ 52.40
$ 94.05 US Gulf Coast 5-3-2 crack spread (per barrel) $ 18.60 $
17.10 $ 16.81 $ 16.06 US Gulf Coast Unleaded Gasoline (per gallon)
$ 1.91 $ 2.88 $ 1.70 $ 2.75 Ultra low sulfur diesel (per gallon) $
1.83 $ 2.92 $ 1.76 $ 2.93 Natural gas (per MMBTU) $ 2.73 $ 4.59 $
2.80 $ 4.88
Logistics
Segment
Three Months Ended June 30, Six Months Ended
June 30, 2015 2014 2015
2014 (Unaudited) (Unaudited)
Pipelines
& Transportation: (average bpd) Lion Pipeline System: Crude
pipelines (non-gathered) 53,863 59,038 55,267 41,936 Refined
products pipelines to Enterprise Systems 58,572 59,888 57,258
45,908 SALA Gathering System 21,305 21,300 21,421 22,201 East Texas
Crude Logistics System 28,677 3,223 23,892 7,105 El Dorado Rail
Offloading Rack 2,964 — 2,964 —
Wholesale Marketing &
Terminalling: East Texas - Tyler Refinery sales volumes
(average bpd)(3) 66,860 61,231 47,018 61,828 West Texas marketing
throughputs (average bpd) 17,490 17,451 17,070 16,729 West Texas
marketing margin per barrel $ 1.31 $ 6.52 $ 1.35 $ 5.06
Terminalling throughputs (average bpd)(4) 113,578 98,962 90,581
94,468
Retail
Segment
Three Months Ended June 30, Six Months Ended
June 30, 2015 2014 2015
2014 (Unaudited) (Unaudited) Number of stores
(end of period) 360 362 360 362 Average number of stores 360 361
361 361 Retail fuel sales (thousands of gallons) 116,157 109,418
224,814 207,225 Retail fuel margin ($ per gallon) $ 0.153 $ 0.193 $
0.158 $ 0.161 Merchandise sales (in thousands) $ 109,209 $ 103,695
$ 203,756 $ 193,094 Merchandise margin % 28.7 % 28.4 % 28.5 % 28.4
% Change in same-store fuel gallons sold 2.6 % (1.2 )% 4.0 % (0.6
)% Change in same-store merchandise sales 3.6 % 3.8 % 3.5 % 5.1 %
(1) Sales volume includes 4,553 bpd and 2,527 bpd sold to
the logistics segment during the three and six months ended June
30, 2015 and 794 bpd and 765 bpd in the three months and six months
ended June 30, 2014, respectively. Sales volume also includes sales
of 4,875 bpd and 2,880 bpd of intermediate and finished products to
the El Dorado refinery during the three months and six months ended
June 30, 2015 and 1,744 bpd and 4,370 bpd of intermediate and
finished products to the El Dorado refinery in the three months and
six months ended June 30, 2014, respectively. Sales volume excludes
469 bpd and 3,265 bpd of wholesale activity during the three and
six months ended June 30, 2015, respectively. There was no
wholesale activity during the three and six months ended June 30,
2014. (2) Sales volume includes 3,488 bpd and 3,977 bpd of
produced finished product sold to the retail segment during the
three and six months ended June 30, 2015, respectively, and 4,002
bpd and 3,949 bpd during the three and six months ended June 30,
2014, respectively. Sales volume also includes 783 and 2,314 bpd of
produced finished product sold to the Tyler refinery during the
three and six months ended June 30, 2015, respectively, and 1,142
and 1,661 bpd during the three and six months ended June 30, 2014,
respectively. Sales volume excludes 26,843 bpd and 25,178 bpd of
wholesale activity during the three and six months ended June 30,
2015, respectively, and 13,805 bpd and 12,669 bpd of wholesale
activity during the three and six months ended June 30, 2014,
respectively. (3) Excludes jet fuel and petroleum coke
(4) Consists of terminalling throughputs at our Tyler, Big
Sandy and Mount Pleasant, Texas North Little Rock and El Dorado,
Arkansas, and Memphis and Nashville, Tennessee terminals.
Throughputs at the El Dorado, Arkansas terminal are for the period
from February 10, 2014 through June 30, 2015. Prior to February 10,
2014, the logistics segment did not record revenue for throughput
at the El Dorado, Arkansas terminal. Throughputs for the Mount
Pleasant Terminal are following its acquisition on October 1, 2014.
Barrels per day are calculated for only the days we operated each
terminal.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150803006425/en/
Delek US Holdings, Inc.Keith Johnson, 615-435-1366Vice President
of Investor RelationsorAlpha IR GroupChris Hodges,
312-445-2870Founder & CEO
Delek US (NYSE:DK)
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