Track market-moving stories before they get noisy

Key Takeaways MPC's second-quarter 2026 earnings surged as stronger crack spreads lifted refining and midstream performance.DK's EOP targets at least $220 million in annualized free-cash-flow improvement.DK trades at 6.83 times forward earnings versus MPC's 7.97 times, with stronger estimate revisions.
Marathon Petroleum Corporation (MPC - Free Report) and Delek US Holdings (DK - Free Report) are two U.S. refining companies benefiting from stronger refining margins and improving earnings expectations. Both reported better second-quarter 2026 results, supported by higher crack spreads and operational improvements.

MPC offers an integrated refining and midstream business with substantial capital returns. DK combines refining operations with logistics assets and an optimization plan aimed at increasing free cash flow. A closer look at their fundamentals, share-price performance, earnings estimate revisions and valuations helps determine which stock may suit different investment objectives.

The Case for Marathon Petroleum StockMarathon Petroleum reported second-quarter 2026 net income of $5.1 billion, or $17.73 per diluted share, compared with $1.2 billion, or $3.96, in the prior-year quarter. Adjusted EBITDA increased to $8.5 billion from $3.3 billion a year earlier.

The Refining & Marketing segment generated $6.7 billion in adjusted EBITDA, compared with $1.9 billion in the second quarter of 2025. Stronger crack spreads across regions supported the improvement. MPC processed 2.9 million barrels per day of crude, with refinery utilization at 94%.

The company is also investing in projects designed to improve product yields and increase operating flexibility. Its Robinson investment supports incremental jet fuel production, while the El Paso project enhances specialty gasoline production. These improvements can help MPC capture value from its refining network.

Midstream operations provide another source of earnings. MPC's majority-owned MPLX business is expanding its natural gas and natural gas liquids infrastructure to serve growing market demand. The company returned more than $2.8 billion to its shareholders during the second quarter, including $2.5 billion in share repurchases. Marathon Petroleum’s established operating scale, midstream contribution and capital-return program make it an attractive option for investors seeking an established integrated energy business.

The Case for Delek US Holdings StockDelek delivered stronger second-quarter results as improving refining margins and operational execution supported its performance. The company reported adjusted net income of $343.9 million, or $5.48 per share. DK posted adjusted EBITDA of $638.7 million, compared with $177.9 million in adjusted EBITDA in the prior-year quarter.

Its refining segment generated $566.2 million in adjusted EBITDA, up from $114.8 million a year earlier. Higher benchmark crack spreads contributed to the improvement. Delek's high distillate yield, access to advantaged crude and improved Big Spring refinery performance also support its ability to benefit from favorable refining conditions.

The company is working to strengthen cash generation through its Enterprise Optimization Plan, which targets at least $220 million in annualized free-cash-flow improvement. Management also reported improved refinery reliability following the Big Spring turnaround and indicated that no additional planned refinery turnarounds were scheduled for the remainder of 2026.

Delek Logistics Partners adds to this investment case. It reported second-quarter adjusted EBITDA of $143.5 million and reaffirmed its 2026 EBITDA guidance of $520 million to $560 million. These operations provide another source of earnings and support Delek's efforts to unlock value across its business.

One-Year Stock Performance: MPC vs. DKThe chart below shows MPC’s shares gaining 163.8% over the past year, compared with a 128.4% rise in DK. Both stocks recorded substantial appreciation, but MPC outperformed Delek over the period.

Image Source: Zacks Investment Research

60-Day Earnings Estimate Revisions: MPC vs. DK
Image Source: Zacks Investment Research

The 60-day estimate revision chart signals growing analyst optimism toward MPC's earnings outlook. Earnings estimates for the third and fourth quarters of 2026 have been revised upward by 27.89% and 74.52%, respectively. Full-year earnings estimates for fiscal 2026 and 2027 have also increased 31.10% and 69.64%, respectively, pointing to stronger earnings expectations.

DK's quarterly estimate revisions are 71.34% and 132.52%. Its fiscal 2026 and 2027 estimates have risen 57.92% and 117.87%, respectively. Delek therefore shows stronger estimate-revision momentum across the periods presented, supporting its earnings-growth investment case.

Forward P/E Ratio: MPC vs. DK
Image Source: Zacks Investment Research

MPC trades at 7.97 times forward earnings, compared with DK’s 6.83 times. Delek's lower multiple, combined with its stronger estimate revisions, may appeal to investors seeking valuation opportunities. MPC's higher multiple accompanies its larger earnings base and integrated operations.

MPC vs. DK: Which Stock Is the Better Buy Now?MPC is the better choice for investors, supported by its integrated business model, strong earnings generation and substantial capital returns. Although DK offers a lower valuation and stronger earnings estimate momentum, MPC's operating scale and established midstream business provide a more compelling overall investment case. Both stocks currently sport a Zacks Rank #1 (Strong Buy), but MPC stands out as the preferred pick. You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Takeaways Delek US' shares gained 48.3% in six months, outpacing its sub-industry and broader Oil-Energy sector.DK's 2026 and 2027 earnings estimates rose 80.87% and 118.56% over the past 60 days.DKL posted record results, while sour gas growth and third-party economics add midstream potential. Delek US Holdings, Inc. (DK - Free Report) has emerged as a notable outperformer in the energy space, with its shares gaining 48.3% over the past six months. The stock has outpaced both the Oil and Gas — Refining and Marketing sub-industry and the broader Oil-Energy sector. The strong stock performance has been accompanied by a sharp improvement in earnings expectations, giving investors more reasons to focus on DK’s underlying fundamentals.

Delek US operates a diversified downstream and midstream energy business spanning petroleum refining, logistics, pipelines and renewable fuels. Its refineries across Texas, Arkansas and Louisiana provide approximately 302,000 barrels per day of combined nameplate crude throughput capacity. The company’s controlling interest in Delek Logistics Partners, LP (DKL - Free Report) further broadens its exposure to the midstream segment.

DK Stock Outperforms Its Industry and Broader Sector
Image Source: Zacks Investment Research

Over the past six months, DK has significantly outperformed both the Oil and Gas — Refining and Marketing sub-industry and the broader Oil-Energy sector. The sub-industry advanced 42.7%, while the broader Oil-Energy sector declined 2.2%. The performance highlights the strength of DK’s shares relative to both its industry peers and the broader energy market.

Earnings Estimates Move Sharply Higher
Image Source: Zacks Investment Research

The improvement in DK stock’s performance is being supported by a significant upward revision in earnings expectations. The Zacks Consensus Estimate trend for DK’s 2026 and 2027 earnings has risen 80.87% and 118.56%, respectively, over the past 60 days. Such substantial upward revisions indicate that analysts have become increasingly optimistic about the company’s earnings prospects.

The improving outlook comes as stronger refining conditions, better operational execution and strategic initiatives support DK’s financial performance. With the company entering the second half of 2026 with its full refining system operational, investors are increasingly focused on the potential for stronger cash flows and further value creation.

What Is Driving Delek US Stock Higher?Small Refinery Exemptions Ease RVO Pressure: The Environmental Protection Agency granted Small Refinery Exemptionsfor the 2025 compliance year, which DK said should reduce the burden from renewable fuel obligations. The decision could improve refinery economics and allow the company to direct more capital toward maintenance, reliability and other refinery investments.

Strong Refining Margins: DK benefited from sharply stronger refining economics, with Gulf Coast crack spreads rising materially from the prior year. The second-quarter refining margin increased 196.9% year over year, supporting a major improvement in refining EBITDA and highlighting the earnings leverage available when product margins strengthen.

High Distillate and Jet Yield: DK has a high distillate and jet fuel yield across its refinery portfolio, which can support stronger margin capture when middle-distillate markets are tight. Management also highlighted access to domestic crude and flexible sourcing, allowing the system to respond to changing market conditions.

Big Spring Reliability Improved: The Big Spring refinery completed its turnaround safely, on schedule and on budget, and operated more reliably afterward. Management said the refinery is delivering better crude slate flexibility, product yields, octane and blending capabilities, while no additional planned turnarounds remain for the rest of 2026.

Strong Logistics Performance: DKL delivered its strongest quarterly result to date, with adjusted EBITDA of about $143.5 million. The business benefits from crude, gas and water exposure in the Permian Basin, while record crude gathering volumes and rising gas processing activity provide additional opportunities for volume and cash-flow growth.

Growing Third-Party Economics: Delek Logistics Partners is moving toward greater economic separation from Delek US, with third-party income expected to exceed 80% on a pro forma basis. A larger third-party contribution can make the midstream business more self-sustaining and may provide greater flexibility for future strategic value creation.

Sour Gas Growth Opportunity: DK is nearing completion of an integrated sour gas processing, treating and handling solution at the Libby Gas Complex. Management expects the capability to support customers as sour gas production rises in the Northern Delaware, potentially driving a step-up in gas volumes and strengthening the midstream growth platform.

High Refinery Utilization: DK operated its refining system at 100.2% of nameplate crude utilization during the second quarter, with total throughput of about 315,555 barrels per day. High utilization allows the company to process more barrels when margins are attractive and helps spread fixed operating costs across a larger production base.

Portfolio Flexibility: DK combines refining, logistics, crude gathering, gas processing and water services across complementary assets. Its access to domestic crude hubs, Permian infrastructure and multiple refinery locations gives the company several operating levers to capture market opportunities while managing supply and pricing risks.

Verdict for DK Stock   Delek US Holdings benefits from easing renewable fuel obligation pressure, stronger refining margins and high refinery utilization, which support improved refining economics. Its high distillate and jet fuel yield, improved Big Spring refinery reliability and flexible crude sourcing further strengthen its operating performance. Delek Logistics Partners adds growth through record volumes, rising third-party economics and expanding sour gas processing opportunities.

 The company’s diversified portfolio across refining, logistics and midstream operations provides flexibility to capture market opportunities and support cash-flow growth. This Zacks Rank #1 (Strong Buy) stock represents an attractive choice for investors seeking exposure to the oil and gas sector, given its strong competitive positioning, expanding international business and improving earnings outlook. Currently, DKL has a Zacks Rank #3 (Hold).

Other Key PicksInvestors interested in the energy sector might consider other top-ranked stocks, such as Magnolia Oil & Gas Corp (MGY - Free Report) and Marathon Petroleum (MPC - Free Report) ,sporting a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Magnolia Oil & Gas Corp. is valued at $5.71 billion. The company is an independent oil and gas producer focused primarily on developing its acreage in South Texas. Magnolia Oil & Gas’ operations are concentrated in the Eagle Ford and Austin Chalk formations, providing exposure to crude oil and natural gas production.

Marathon Petroleum is valued at $114.88 billion. The company operates one of the largest refining systems in the United States, processing crude oil into transportation fuels and other refined products. Marathon Petroleum’s integrated business also includes midstream operations through MPLX, supporting its refining activities with transportation, storage and logistics assets.

BRENTWOOD, Tenn.--(BUSINESS WIRE)--Delek US Holdings, Inc. (NYSE: DK) (the “Company”), today announced that it has priced its previously announced private offering (the “Offering”) of $400.0 million aggregate principal amount of 0.00% convertible senior notes due 2031 (the “Notes”). The Notes will be fully and unconditionally guaranteed, on a senior unsecured basis, by each subsidiary of the Company that guarantees its senior secured term loan facility (the “Term Loan Credit Facility”) or asset.

BRENTWOOD, Tenn.--(BUSINESS WIRE)--Delek US Holdings, Inc. (NYSE: DK) (the “Company”), today announced that it intends to offer $400.0 million aggregate principal amount of convertible senior notes due 2031 (the “Notes”) in a private offering (the “Offering”). The Notes will be fully and unconditionally guaranteed, on a senior unsecured basis, by each subsidiary of the Company that guarantees its senior secured term loan facility (the “Term Loan Credit Facility”) or asset-based revolving credit facility (the “Revolving Credit Facility”). The Company also intends to grant the initial purchasers of the Notes an option to purchase up to an additional $60.0 million aggregate principal amount of the Notes within a 13-day period beginning on, and including, the initial closing date of the Offering.

The Company intends to use a portion of the net proceeds from the Offering to fund the cost of entering into the capped call transactions with the option counterparties (as defined below) and the remainder of the net proceeds for general corporate purposes, which will include the partial repayment of amounts outstanding under the Term Loan Credit Facility, including accrued interest and related fees and expenses.

The Notes will be senior unsecured obligations of the Company. The Notes will mature on November 1, 2031, unless earlier converted, redeemed or repurchased. Prior to August 1, 2031, the Notes will be convertible only upon satisfaction of certain conditions and during certain periods, and thereafter, the Notes will be convertible at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. The Company will satisfy any conversion by paying cash and, if applicable, delivering shares of the Company’s Common Stock, par value $0.01 per share (“Common Stock”), at its election. The Company may not redeem the Notes prior to November 6, 2029, except in the event of a cleanup redemption (as defined below). The Notes will be redeemable, in whole or in part, at the Company’s option on or after November 6, 2029, upon the satisfaction of certain conditions and subject to certain limitations. In addition, the Notes will be redeemable at any time if the aggregate principal amount of the Notes that remains outstanding is less than 10% of the aggregate principal amount of the Notes initially issued in the Offering and certain other conditions are satisfied (a “cleanup redemption”).

The interest rate, initial conversion rate and other terms of the Notes will be determined at the time of pricing of the Offering.

In connection with the pricing of the Notes, the Company expects to enter into privately negotiated capped call transactions with one or more of the initial purchasers of the Notes or affiliates thereof and/or other financial institutions (the “option counterparties”). These transactions are expected to cover, subject to anti-dilution adjustments substantially similar to those applicable to the Notes, the same number of shares of Common Stock that will initially underlie the Notes, and are expected generally to reduce potential dilution to the Common Stock upon conversion, if any, of the Notes and/or offset any cash payments the Company is required to make in excess of the principal amount of converted Notes, as the case may be.

If the initial purchasers exercise their option to purchase additional Notes, the Company expects to use the net proceeds from the sale of such additional Notes to fund the cost of entering into additional capped call transactions with the option counterparties and the remainder for general corporate purposes, which will include the partial repayment of amounts outstanding under the Term Loan Credit Facility, including accrued interest and related fees and expenses.

The Company expects that, in connection with establishing their initial hedges of the capped call transactions, the option counterparties or their respective affiliates will enter into various derivative transactions with respect to the Company’s Common Stock and/or purchase shares of the Company’s Common Stock concurrently with or shortly after the pricing of the Notes. This activity could increase (or reduce the size of any decrease in) the market price of the Company’s Common Stock and/or the Notes at that time. The option counterparties or their respective affiliates may also modify their hedge positions by entering into or unwinding various derivatives with respect to the Company’s Common Stock and/or purchasing or selling the Company’s Common Stock or other securities of the Company in secondary market transactions following the pricing of the Notes and prior to the maturity of the Notes (and are likely to do so in connection with any conversion of the Notes, any redemption of Notes, any repurchase of the Notes upon a fundamental change or any other repurchase of Notes if the Company elects to terminate a corresponding portion of the capped call transactions). This activity could also cause or avoid an increase or a decrease in the market price of the Company’s Common Stock and/or the Notes, which could affect the ability of noteholders to convert the Notes and, to the extent the activity occurs during any observation period related to a conversion of the Notes, it could affect the number of shares and value of the consideration that noteholders will receive upon conversion of the Notes.

The Notes and related guarantees are being offered only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). This press release is for informational purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy the Notes or related guarantees. Any offers of the Notes and related guarantees are being made only by means of a private offering memorandum. The Notes, related guarantees, and any Common Stock issuable upon conversion of the Notes have not been registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States without registration or an applicable exemption from registration requirements.

About Delek US Holdings, Inc.

Delek US Holdings, Inc. is a diversified downstream energy company with assets in petroleum refining, logistics, pipelines, and renewable fuels. The refining assets consist primarily 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 include Delek Logistics Partners, LP (NYSE: DKL). Delek Logistics Partners, LP is a growth-oriented master limited partnership focused on owning and operating midstream energy infrastructure assets. Delek US Holdings, Inc. and its subsidiaries own approximately 58.0% (including the general partner interest) of Delek Logistics Partners, LP at August 14, 2026.

Information about Delek US Holdings, Inc. can be found on its website (www.delekus.com), investor relations webpage (ir.delekus.com), and news webpage (www.delekus.com/news).

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 estimates, expectations or projections about future dividends, results, performance, prospects, opportunities, plans, actions and events and other matters that are not historical facts are "forward-looking statements," within the meaning of federal securities laws. Forward-looking statements should not be read as a guarantee of future performance or results and may not be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time and/or management's good faith belief with respect to future events, and investors are cautioned that risks described in the Company's filings with the United States Securities and Exchange Commission, among others, could cause actual performance or results to differ materially from those expressed in the statements. There can be no assurance that actual results will not differ from those expected by management or described in forward-looking statements. The Company undertakes no obligation to update or revise any such forward-looking statements to reflect events or circumstances that occur or that the Company becomes aware of after the date hereof, except as required by applicable law or regulation.

These forward-looking statements include, among others, whether the Company will offer the Notes or consummate the Offering, the final terms of the Offering, prevailing market conditions, the anticipated principal amount of the Notes, which could differ based upon market conditions, the anticipated use of the net proceeds from the Offering, which could change as a result of market conditions or for other reasons, whether the capped call transactions described above will become effective, the effects of entering into these transactions, and the impact of general economic, industry or political conditions in the United States or internationally.

More News From Delek US Holdings, Inc.

Shares of Delek US Holdings, Inc. (NYSE:DK – Get Free Report) were up 4.7% during trading on Tuesday after Raymond James Financial raised their price target on the stock from $72.00 to $90.00. Raymond James Financial currently has an outperform rating on the stock. Delek US traded as high as $77.79 and last traded at $77.9410. 267,228 shares changed hands during trading, a decline of 81% from the average daily volume of 1,442,439 shares. The stock had previously closed at $74.47.

A number of other research firms have also weighed in on DK. Wall Street Zen upgraded shares of Delek US from a “buy” rating to a “strong-buy” rating in a report on Sunday, August 9th. JPMorgan Chase & Co. lifted their price target on Delek US from $57.00 to $62.00 and gave the company a “neutral” rating in a research note on Tuesday, July 14th. Citigroup reissued a “neutral” rating on shares of Delek US in a report on Thursday, August 6th. TD Cowen increased their price objective on Delek US from $76.00 to $90.00 and gave the stock a “buy” rating in a research note on Monday. Finally, The Goldman Sachs Group raised their target price on Delek US from $73.00 to $83.00 and gave the company a “buy” rating in a report on Tuesday, August 18th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat.com, Delek US currently has an average rating of “Moderate Buy” and a consensus price target of $65.45.

Read Our Latest Report on DK

Insider Buying and Selling In related news, Director Vicky Sutil sold 6,397 shares of the firm’s stock in a transaction dated Friday, September 4th. The shares were sold at an average price of $71.50, for a total transaction of $457,385.50. Following the transaction, the director directly owned 26,407 shares of the company’s stock, valued at $1,888,100.50. This trade represents a 19.50% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Amber Russell sold 5,392 shares of the business’s stock in a transaction dated Friday, September 11th. The stock was sold at an average price of $75.50, for a total transaction of $407,096.00. Following the transaction, the executive vice president owned 35,670 shares in the company, valued at approximately $2,693,085. This trade represents a 13.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 168,377 shares of company stock valued at $11,339,985 over the last 90 days. 3.56% of the stock is currently owned by company insiders. Hedge Funds Weigh In On Delek US Several institutional investors have recently modified their holdings of DK. Allworth Financial LP grew its position in Delek US by 30.7% during the 2nd quarter. Allworth Financial LP now owns 600 shares of the oil and gas company’s stock worth $30,000 after acquiring an additional 141 shares during the last quarter. Thoroughbred Financial Services LLC increased its stake in Delek US by 1.3% in the 4th quarter. Thoroughbred Financial Services LLC now owns 27,164 shares of the oil and gas company’s stock worth $805,000 after purchasing an additional 348 shares during the period. Aigen Investment Management LP lifted its position in Delek US by 3.2% in the fourth quarter. Aigen Investment Management LP now owns 17,821 shares of the oil and gas company’s stock valued at $529,000 after purchasing an additional 560 shares during the last quarter. EverSource Wealth Advisors LLC lifted its position in Delek US by 173.4% in the fourth quarter. EverSource Wealth Advisors LLC now owns 968 shares of the oil and gas company’s stock valued at $29,000 after purchasing an additional 614 shares during the last quarter. Finally, ProShare Advisors LLC lifted its position in Delek US by 6.9% in the fourth quarter. ProShare Advisors LLC now owns 10,916 shares of the oil and gas company’s stock valued at $324,000 after purchasing an additional 702 shares during the last quarter. 97.01% of the stock is owned by institutional investors.

Delek US Stock Performance The company has a debt-to-equity ratio of 7.53, a current ratio of 0.76 and a quick ratio of 0.47. The stock has a market cap of $4.78 billion, a PE ratio of 21.92, a price-to-earnings-growth ratio of 0.49 and a beta of 0.59. The business has a 50 day moving average price of $66.67 and a two-hundred day moving average price of $52.20.

Delek US (NYSE:DK – Get Free Report) last issued its earnings results on Wednesday, August 5th. The oil and gas company reported $5.48 EPS for the quarter, topping the consensus estimate of $2.67 by $2.81. Delek US had a net margin of 1.86% and a return on equity of 109.03%. The company had revenue of $4.09 billion for the quarter, compared to the consensus estimate of $3.44 billion. During the same period in the previous year, the firm earned ($0.56) earnings per share. The firm’s revenue for the quarter was up 47.9% on a year-over-year basis. As a group, equities research analysts forecast that Delek US Holdings, Inc. will post 11.93 EPS for the current fiscal year.

Delek US Announces Dividend The company also recently disclosed a quarterly dividend, which was paid on Monday, August 10th. Shareholders of record on Monday, August 3rd were given a $0.255 dividend. The ex-dividend date was Monday, August 3rd. This represents a $1.02 dividend on an annualized basis and a dividend yield of 1.3%. Delek US’s payout ratio is presently 28.65%.

Delek US Company Profile (Get Free Report)

Delek US Holdings, Inc (NYSE: DK) is a downstream energy company engaged primarily in petroleum refining, wholesale fuel marketing and logistics. The company produces transportation fuels and other refined petroleum products, including gasoline, diesel, jet fuel and asphalt.

Delek US operates refineries in the southern United States, including facilities in Texas, Arkansas and Louisiana. Its refining operations are supported by crude oil gathering, transportation, storage and other logistics activities conducted through Delek Logistics Partners, a publicly traded master limited partnership that is managed and partially owned by Delek US.

Founded in 2001 and headquartered in Brentwood, Tennessee, Delek US serves regional markets across the central and southeastern United States.

See Also Five stocks we like better than Delek US Running on Empty: 3 Energy Plays for Europe’s Deep Freeze 3 Healthcare Stocks for 3 Stages of Life Curaleaf Tries To Roll Up Aurora In a Hostile Cannabis Bid MarketBeat’s Most Downgraded Stocks in Q3: 2 Look Cheap, 1 Looks Risky Receive News & Ratings for Delek US Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Delek US and related companies with MarketBeat.com's FREE daily email newsletter.

4.3K Followers

Analyst’s Disclosure: I/we have a beneficial long position in the shares of DK either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

This text expresses the views of the author as of the date indicated, and such views are subject to change without notice. The author has no duty or obligation to update the information contained herein. Further, wherever there is the potential for profit, there is also the possibility of loss. Additionally, the present article is being made available for educational purposes only and should not be used for any other purpose. The information contained herein does not constitute and should not be construed as an offering of advisory services or an offer to sell or solicitation to buy any securities or related financial instruments in any jurisdiction. Some information and data contained herein concerning economic trends and performance are based on or derived from information provided by independent third-party sources. The author trusts that the sources from which such information has been obtained are reliable; however, it cannot guarantee the accuracy of such information and has not independently verified the accuracy or completeness of such information or the assumptions on which such information is based.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Reuven Spiegel, Executive Vice President (EVP), Special Projects at Delek U.S. Holdings, Inc. (DK -2.07%), sold 10,000 shares of common stock on Aug. 18, 2026, as disclosed in a recent SEC Form 4 filing.

Transaction summaryMetricValueShares sold10,000Transaction value$682,100Post-transaction shares (directly held)36,435Post-transaction value$2.49 millionTransaction value based on SEC Form 4 weighted average sale price ($68.21); post-transaction value based on Aug. 18, 2026, market close ($68.22).

Key questionsHow does this disposal impact the insider's long-term equity exposure?
After the sale of 10,000 shares at $68.21 per share, Reuven Spiegel maintains direct ownership of 36,435 shares, which represents an insider ownership stake of 0.0594%.What role did pre-arranged scheduling play in this execution?
The transaction was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c), meaning the sale was scheduled in advance to remove the insider's direct control over the timing of the trade.What is the recent performance context for the company's valuation?
Delek U.S. Holdings realized a 205% total return over the 12 months ending on the transaction date of Aug. 18, 2026, with the firm carrying a market capitalization of $4.2 billion as of the latest close.Company OverviewMetricValueShare Price (as of market close 2026-08-19)$66.33Market Capitalization$4.2 billionRevenue (TTM)$12.1 billionNet Income (TTM)$282.6 millionCompany SnapshotDelek U.S. Holdings operates an integrated downstream energy business with three core segments: Refining, Logistics, and Retail, generating revenue through the production and distribution of petroleum products, including gasoline, diesel, aviation fuel, and asphalt.The company's business model centers on crude oil processing and downstream value creation, with the Refining segment converting raw materials into finished petroleum products, which are distributed through company-owned and third-party facilities.Delek serves a diversified customer base, including fuel retailers, commercial enterprises, and end consumers across the United States, leveraging its integrated operational structure to capture margins across the refining and distribution value chain.

Premium Feature

Moneyball Superscore

55/100

Today's Change

(

-2.07

%) $

-1.52

Current Price

$

71.82

Delek U.S. Holdings is a mid-sized integrated downstream energy corporation with approximately 1,902 employees and operations concentrated in the United States. The company generated $12.1 billion in revenue on a TTM basis, with net income of $282.6 million, reflecting its position as a significant crude oil processor and distributor of refined petroleum products.

With a market capitalization of $4.2 billion, Delek maintains competitive advantages through its vertically integrated operations spanning refining, logistics, and retail distribution.

What this transaction means for investorsThese sales shouldn't concern investors. It was completed under a pre-adopted plan designed to allow insiders to make transactions for personal reasons that don't reflect views on a company's fundamentals or valuation.

Moreover, the sale represented a small portion of the executive's stake in the company's stock. The insider still retains the vast majority of his stake.

Delek has seen its TTM revenue increase by over 11% year over year. Strong second-quarter results reflect the successful turnaround of the Big Spring refinery and solid execution amid market volatility.

Investors should expect a pullback at some point after such a strong run over the past year. The stock is trading at a higher multiple of earnings, while analysts are maintaining modest expectations for the company's revenue growth over the next two years, with estimates projecting a decline in profits.

BRENTWOOD, Tenn.--(BUSINESS WIRE)--Delek US Holdings, Inc. (NYSE: DK) welcomes President Trump and the U.S. Environmental Protection Agency's decision granting Small Refinery Exemptions ("SREs") for the 2025 compliance year. This decision helps protect American jobs and supports continued investment in the communities served by small refineries."We thank President Trump and Administrator Zeldin for recognizing the important role of SREs in supporting American workers and the communities we serve.

Delek US Holdings (NYSE:DK) closed at $71.47 on August 21, 2026, up 141.0% year to date and 215.7% over one year, brushing its 52-week high of $72.00.

Delek US Holdings, Inc. (DK - Free Report) reported second-quarter 2026 adjusted earnings of $5.48 per share, surpassing the Zacks Consensus Estimate of $2.21 by 148%. The bottom line also improved from the year-ago adjusted loss of 56 cents, supported by stronger year-over-year performance across both segments.

Brentwood, TN-based oil and gas refining and marketing company’s net revenues increased 47.8% year over year to $4.1 billion, beating the Zacks Consensus Estimate of $3 billion by 34.8%. This was due to better-than-expected performance from the refining and logistics segments, which exceeded our consensus marks by 37.24% and 29.57%, respectively.

Delek US Holdings, Inc. Price, Consensus and EPS Surprise

Delek US Holdings, Inc. price-consensus-eps-surprise-chart | Delek US Holdings, Inc. Quote

The strong quarterly performance was primarily supported by higher refining margins amid increased crack spreads. Total refining throughput averaged 315,555 barrels per day. Adjusted EBITDA increased to $638.7 million from $177.9 million a year earlier. Moreover, the reported figure beat our estimate of $72 million.

DK’s Refining Performance ImprovesRefining segment net revenues, excluding intercompany fees and revenues, increased to $3.9 billion from $2.6 billion in the prior-year quarter. The segment reported adjusted EBITDA of $566.2 million compared with $114.8 million a year ago. Moreover, the reported figure beat our estimate of $287.8 million.

The significant year-over-year improvement was driven by stronger refining margins, supported by higher crack spreads. Delek US’ benchmark crack spreads increased an average of 136% from the prior-year level. Total refining production margin rose to $569.6 million from $231.1 million.

Delek US’ Refining Metrics Remain StrongProduction margin per throughput barrel increased to $19.84 from $8.03 a year earlier. Adjusted refining margin totaled $569.1 million compared with $256.8 million in the year-ago quarter. Crude utilization was 100.2% compared with 100.9% a year ago.

Management highlighted improved performance at the Big Spring refinery following the first-quarter turnaround. The company also has no planned refinery turnarounds for the remainder of 2026, positioning its refining system to capture the current margin environment.

DK’s Logistics Unit Posts Record ResultsThis unit represents Delek US’ majority interest in Delek Logistics Partners (DKL - Free Report) , a publicly traded master limited partnership that owns, operates, develops and acquires pipelines and other midstream assets.

The logistics segment generated net revenues, excluding intercompany fees and revenues, of $179.9 million compared with $132.3 million in the prior-year period. Adjusted EBITDA increased 12.6% year over year to a record $143.5 million. However, the reported figure missed our estimate of $149.4 million.

This improvement reflected higher margins in the wholesale business and increased interest income related to sales-type leases. Delaware Gathering natural gas gathering and processing volumes rose to 80,715 Mcf per day from 60,940 Mcf, while crude gathering volumes increased to 157,156 barrels per day from 137,167 barrels.

Delek US’ Costs Increase in Q2Total operating costs and expenses increased 35.3% year over year to $3.8 billion. Operating expenses, excluding depreciation and amortization, were $220.1 million compared with $209.8 million a year earlier.

General and administrative expenses declined to $56.7 million from $76.6 million. Delek US recorded restructuring costs of $10.9 million during the quarter.

DK’s Cash Flow and Financial PositionCash provided by operating activities was $262.9 million in the second quarter compared with $51.4 million a year ago. The quarter included $137.9 million of unfavorable working-capital changes. Investing activities used $176.2 million, while financing activities resulted in an $82.2 million outflow.

As of June 30, 2026, the company had cash and cash equivalents of $628.6 million and consolidated long-term debt of $3.2 billion, with a debt-to-total capital of about 88.3%. Excluding Delek Logistics, Delek US had $614.9 million in cash and $817 million of long-term debt. During the quarter, DK repurchased $20 million of common stock and paid $15.6 million in dividends.

Delek US Provides Q3 GuidanceFor the third quarter of 2026, Delek US expects throughput of 72,000-77,000 barrels per day at Tyler, 78,000-83,000 barrels at El Dorado, 68,000-73,000 barrels at Big Spring and 78,000-83,000 barrels at Krotz Springs. The implied system throughput target is 296,000-316,000 barrels per day.

On the cost side, this Zacks Rank #2 (Buy) company expects operating expenses of $220-$230 million, general and administrative expenses of $50-$55 million, depreciation and amortization of $110-$120 million and net interest expense of $75-$85 million for the third quarter. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

DK’s Optimization Plan Supports Cash GenerationDelek US’ Enterprise Optimization Plan continues to focus on improving free cash flow. The company expects the program to generate at least $220 million of annual free cash flow improvement, with the majority coming from margin enhancement across refining, logistics and wholesale operations.

Management estimated that the program contributed approximately $60 million to second-quarter results. Delek Logistics also reaffirmed the 2026 adjusted EBITDA guidance of $520-$560 million as it continues advancing the midstream growth and economic separation initiatives.

Important Earnings at a GlanceWhile we have discussed DK’s second-quarter results in detail, let us take a look at two other key reports in this space.

Houston, TX-based oil and gas equipment and services provider Halliburton (HAL - Free Report) posted second-quarter 2026 adjusted net income per share of 55 cents, marginally beating the Zacks Consensus Estimate of 54 cents. The outperformance was backed by year-over-year revenue growth. However, the bottom line was flat compared with the prior-year level.

As of June 30, 2026, Halliburton had approximately $2 billion in cash and cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization of 39%.

Fort Worth, TX-based oil and gas exploration and production company Range Resources Corporation (RRC - Free Report) reported second-quarter 2026 adjusted earnings of 79 cents per share, up 19.7% from 66 cents a year ago. Range Resources’ bottom line topped the Zacks Consensus Estimate of 56 cents by 41.1%. Strong quarterly results are driven by higher production and improved price realization.

The company’s net debt was $880.8 million at June 30, 2026, down 28% from $1.22 billion at year-end 2025. Range Resources repurchased $78 million of shares and paid $24 million in dividends during the quarter.

Key Takeaways DK's second-quarter call spotlighted stronger cash flow, refinery reliability and market flexibility.DK targets at least $220 million in annual run-rate cash-flow gains from enterprise optimization.Delek Logistics reaffirmed 2026 EBITDA guidance of $520-$560 million as third-party business expands. Delek US Holdings, Inc. (DK - Free Report) used its second-quarter 2026 call to emphasize stronger cash generation, improved refinery reliability and a disciplined response to volatile crude and product markets.

Adjusted earnings of $5.48 per share topped the Zacks Consensus Estimate of $2.21, while revenue of $4.09 billion exceeded the $3.03 billion estimate. President and CEO Avigal Soreq emphasized repeatable execution, enterprise optimization and value separation at Delek Logistics.

DK Builds on Refining ReliabilityCEO Avigal Soreq said all four refineries operated well. Big Spring has met expectations after its turnaround, with better reliability, crude-slate flexibility, product yields, octane and blending capabilities.

CEO Avigal Soreq said crude access, high distillate output and quick responses to market shifts remain central advantages. With no planned turnarounds for the rest of 2026, the system is positioned to capture market strength.

EVP Robert Wright guided third-quarter system throughput to 296,000-316,000 barrels per day. Operating expenses are expected at $220-$230 million, G&A at $50-$55 million and depreciation and amortization at $110-$120 million.

Delek Expands Its Cash Flow PlaybookCEO Avigal Soreq said the enterprise optimization plan contributed about $60 million to second-quarter results. The program targets at least $220 million of annual run-rate cash-flow improvement.

EVP of Strategy, Business Development and Investor Relations Mohit Bhardwaj said confidence is increasing in mid-cycle free cash flow of $650-$700 million, including Delek Logistics distributions.

A Goldman Sachs analyst pressed for the next upside sources. CEO Avigal Soreq described optimization as an organization-wide discipline and cited further opportunities in gross margin, product mix, sales locations and other operating areas.

DK Looks to Logistics for SeparationDelek Logistics generated second-quarter adjusted EBITDA of $143.5 million and reaffirmed 2026 guidance of $520-$560 million. Gathering and processing adjusted EBITDA rose to $104.1 million from $78 million a year earlier.

CEO Avigal Soreq said third-party EBITDA should exceed 80% on a pro forma basis in 2026. He called that economic separation a cornerstone of the sum-of-the-parts and deconsolidation work.

CFO Mark Hobbs said both Libby plants are running well, the acid-gas injection well is complete and sour-gas gathering and compression are nearing completion. He expects a step change in gas volumes through year-end.

Delek Keeps SRE Upside in ViewA Wolfe Research analyst asked about exemption timing and the reversed Krotz Springs denial. EVP Mohit Bhardwaj said the decision reinforced confidence in Delek’s 2025 petitions.

Answering a TPH Research analyst, EVP Mohit Bhardwaj said Delek’s total 2025 renewable volume obligation was $468.4 million, based on a RIN price of $1 per gallon. EVP Robert Wright emphasized tax minimization as a key strategy.
EVP Mohit Bhardwaj framed awarded RINs as a return of credits already purchased for compliance, not a new cash grant. CEO Avigal Soreq said proceeds would follow the existing capital-allocation framework.

DK Maintains a Balanced Capital PlanCEO Avigal Soreq said Delek paid about $16 million in dividends and repurchased $20 million of shares during the quarter. He added that the company has bought back about 10% of its shares since the beginning of 2025.

Answering Goldman Sachs, CEO Avigal Soreq reaffirmed a through-cycle dividend and a balance between debt reduction and repurchases. He said Delek does not plan to retain excess cash without a defined purpose.

EVP Robert Wright said stand-alone net debt declined by $72 million after the term loan was refinanced and reduced from $920 million to $850 million. CEO Avigal Soreq said acquisitions must be strategic and accretive to leverage and coverage.

Delek Ends With an Execution-First StanceCEO Avigal Soreq’s tone was confident on refinery reliability, enterprise optimization and logistics growth, while measured on market volatility and the timing and value of regulatory relief.

The priorities leaving the call were consistent: safe operations, higher free cash flow, economic separation of Delek Logistics and disciplined capital returns.

Zacks Signals Favor Value and GrowthDK carries a Zacks Rank #1 (Strong Buy), indicating a favorable earnings-estimate revision profile under the Zacks framework. Its Value Score of A, Growth Score of A and VGM Score of A reinforce broad style strength, while the Momentum Score of C is less favorable.You can see the complete list of today’s Zacks #1 Rank stocks here.

The combination points to constructive near-term potential rather than a certain outcome. The Zacks Rank can change as analysts revise estimates following the just-reported results.

Delek US Holdings, Inc. (DK) Q2 2026 Earnings Call Transcript

BRENTWOOD, Tenn.--(BUSINESS WIRE)--Delek US Holdings, Inc. (NYSE: DK) (“Delek US”, "Company") today announced financial results for its second quarter ended June 30, 2026. “Our second quarter results demonstrate the tangible progress we are making in strengthening Delek's free cash flow profile” said Avigal Soreq, President and Chief Executive Officer of Delek US. “Following the successful completion of the Big Spring refinery turnaround in the first quarter, Big Spring ran well during the seco.

Posted by Defense World Staff on Jul 30th, 2026

Bank of New York Mellon Corp cut its holdings in shares of Delek US Holdings, Inc. (NYSE:DK – Free Report) by 6.4% during the 1st quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 382,620 shares of the oil and gas company’s stock after selling 25,975 shares during the quarter. Bank of New York Mellon Corp owned approximately 0.62% of Delek US worth $17,245,000 at the end of the most recent quarter.

A number of other institutional investors also recently made changes to their positions in DK. Caitong International Asset Management Co. Ltd grew its position in shares of Delek US by 95.6% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 884 shares of the oil and gas company’s stock worth $26,000 after buying an additional 432 shares in the last quarter. Brown Brothers Harriman & Co. acquired a new stake in Delek US in the third quarter valued at $27,000. EverSource Wealth Advisors LLC boosted its stake in Delek US by 173.4% during the 4th quarter. EverSource Wealth Advisors LLC now owns 968 shares of the oil and gas company’s stock valued at $29,000 after acquiring an additional 614 shares during the last quarter. Torren Management LLC bought a new position in Delek US during the 4th quarter valued at $40,000. Finally, Focus Partners Wealth acquired a new position in Delek US during the 3rd quarter worth $44,000. 97.01% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Delek US Here are the key news stories impacting Delek US this week:

Positive Sentiment: Refining margins and fuel supply are supporting the sector. Wider crack spreads, tight refining capacity and constrained fuel supplies are benefiting refiners, including Delek US, ahead of its upcoming second-quarter earnings report. DK is identified as one of three refiners posting strong year-to-date gains. 3 Refiners Benefiting From Oil Volatility and Tight Fuel Supply Positive Sentiment: Zacks Research raised most of its forward earnings projections and reiterated a “Strong-Buy” rating. Estimates were increased for second- and third-quarter 2026 EPS to $0.68 and $1.28, respectively, while full-year 2026 EPS rose to $2.22 from $2.12. Forecasts for the first, second, third and fourth quarters of 2027 also increased, lifting FY2027 EPS to $2.21 from $2.09. The Q4 2026 estimate was raised to $0.19 from $0.17, and Q4 2027 to $0.86 from $0.83. Positive Sentiment: Industry-level analyst sentiment is favorable. Zacks recommended buying DK along with PBF Energy and Valero, citing continued strength in the refining and marketing industry. 3 Top Refining & Marketing Stocks Riding Industry Strength Analyst Ratings Changes Several equities analysts have recently commented on DK shares. Weiss Ratings cut shares of Delek US from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Monday, May 11th. The Goldman Sachs Group upped their price objective on Delek US from $58.00 to $73.00 and gave the company a “buy” rating in a research note on Friday, July 17th. JPMorgan Chase & Co. lifted their target price on Delek US from $57.00 to $62.00 and gave the stock a “neutral” rating in a research report on Tuesday, July 14th. Wall Street Zen raised Delek US from a “buy” rating to a “strong-buy” rating in a research report on Monday, May 18th. Finally, Raymond James Financial raised their price objective on Delek US from $60.00 to $70.00 and gave the stock an “outperform” rating in a research note on Monday, July 13th. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, six have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, Delek US presently has a consensus rating of “Hold” and a consensus price target of $51.92.

Check Out Our Latest Stock Report on DK

Delek US Stock Up 3.3% NYSE:DK opened at $64.90 on Thursday. The company has a current ratio of 0.76, a quick ratio of 0.49 and a debt-to-equity ratio of 10.51. The stock has a 50 day moving average of $51.44 and a 200-day moving average of $43.18. The firm has a market capitalization of $3.98 billion, a PE ratio of -71.32, a price-to-earnings-growth ratio of 1.65 and a beta of 0.58. Delek US Holdings, Inc. has a 52 week low of $19.81 and a 52 week high of $68.93.

Delek US (NYSE:DK – Get Free Report) last announced its quarterly earnings results on Wednesday, April 29th. The oil and gas company reported $0.08 earnings per share (EPS) for the quarter, topping the consensus estimate of ($1.42) by $1.50. Delek US had a positive return on equity of 22.90% and a negative net margin of 0.48%.The business had revenue of $2.65 billion for the quarter, compared to the consensus estimate of $2.33 billion. During the same quarter last year, the business posted ($2.32) EPS. The business’s revenue was up .4% on a year-over-year basis. Analysts predict that Delek US Holdings, Inc. will post 8.32 EPS for the current year.

Delek US Dividend Announcement The business also recently announced a quarterly dividend, which will be paid on Monday, August 10th. Shareholders of record on Monday, August 3rd will be given a $0.255 dividend. The ex-dividend date of this dividend is Monday, August 3rd. This represents a $1.02 annualized dividend and a yield of 1.6%. Delek US’s dividend payout ratio (DPR) is currently -112.09%.

Insider Buying and Selling In other Delek US news, Director Vicky Sutil sold 1,871 shares of the firm’s stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $48.00, for a total value of $89,808.00. Following the sale, the director directly owned 29,368 shares in the company, valued at approximately $1,409,664. This trade represents a 5.99% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, EVP Robert G. Wright sold 10,720 shares of the stock in a transaction dated Wednesday, May 13th. The stock was sold at an average price of $47.07, for a total transaction of $504,590.40. Following the completion of the sale, the executive vice president directly owned 48,148 shares in the company, valued at approximately $2,266,326.36. This trade represents a 18.21% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 39,270 shares of company stock valued at $1,828,718 in the last three months. 3.56% of the stock is owned by corporate insiders.

Delek US Company Profile (Free Report)

Delek US Holdings, Inc (NYSE: DK) is an independent downstream energy company engaged in the refining, logistics, and marketing of petroleum products. Headquartered in Brentwood, Tennessee, the company operates a network of inland refineries, storage terminals and pipelines, and convenience store locations. Delek US focuses on converting crude oil into a variety of finished products, including gasoline, diesel, jet fuel, asphalt and renewable fuels, serving wholesale and retail customers across the United States.

In its refining segment, Delek US owns and operates four inland refineries located in Texas and Arkansas.

Further Reading Five stocks we like better than Delek US Why SK hynix Could Be the Best AI Chip Stock to Buy Now Seagate Technology Stock Surges as Earnings Beat Silences AI Doubters Alphabet Is Down 18% From Its High After a Stellar Quarter—Overdone, or More Downside Ahead? Why Bloom Energy May Be the Most Important AI Infrastructure Stock Want to see what other hedge funds are holding DK? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Delek US Holdings, Inc. (NYSE:DK – Free Report).

Receive News & Ratings for Delek US Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Delek US and related companies with MarketBeat.com's FREE daily email newsletter.

« PREVIOUS HEADLINEInterlink Electronics (LINK) Projected to Post Earnings on Thursday

NEXT HEADLINE »Bank of New York Mellon Corp Has $17.23 Million Stock Position in Sphere Entertainment Co. $SPHR

Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, July 24:

Delek US Holdings, Inc. (DK - Free Report) : This integrated downstream energy company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 29.1% over the last 60 days.

Delek's shares gained 64.2% over the last three months compared with the S&P 500’s decline of 4.9%. The company possesses a Momentum Score of A.

PBF Energy Inc. (PBF - Free Report) : This petroleum refining company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 56.5% over the last 60 days.

PBF Energy’s shares gained 53.1% over the last three months compared with the S&P 500’s decline of 4.9%. The company possesses a Momentum Score of A.

American Airlines Group Inc. (AAL - Free Report) : This airline company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 303.6% over the last 60 days.

American Airlines’ shares gained 12.1% over the last three months compared with the S&P 500’s decline of 4.9%. The company possesses a Momentum Score of A.

See the full list of top ranked stocks here

Learn more about the Momentum score and how it is calculated here.

BRENTWOOD, Tenn.--(BUSINESS WIRE)--Delek US Holdings, Inc. (NYSE:DK) (“Delek”) today announced that its Board of Directors has approved a quarterly dividend of $0.255 per share, to be paid on August 10, 2026, to shareholders of record on August 3, 2026.About Delek US Holdings, Inc.Delek US Holdings, Inc. is a diversified downstream energy company with assets in petroleum refining, logistics, and pipelines. The refining assets consist primarily of refineries operated in Tyler and Big Spring, Texa.

Key Takeaways Delek's premium valuation is supported by stronger operations, execution and rising earnings expectations.DK raised its Enterprise Optimization Plan cash-flow improvement target to about $220 million annually.DK boosted refinery and logistics performance as analysts increased 2026 and 2027 earnings estimates. Delek US Holdings (DK - Free Report) has outperformed many of its refining peers over the past year. The stock currently trades at a trailing 12-month price-to-earnings (P/E) ratio of 14.77X, noticeably above Marathon Petroleum's (MPC - Free Report) 9.94X and Valero Energy's (VLO - Free Report) 11.36X. At first glance, that premium valuation might make some investors hesitant, especially since refining is traditionally viewed as a cyclical business.

How the Market Values Each Company
Image Source: Zacks Investment Research

But valuation should never be looked at in isolation. The more important question is whether this Brentwood, TN-based oil and gas refining and marketing company has done enough to deserve trading at a higher multiple than Marathon Petroleum and Valero Energy. Based on the company's improving operations, rising earnings expectations and strategic initiatives, there is a strong case that the premium is supported by better fundamentals rather than market enthusiasm alone.

Investors Have Rewarded Delek's ExecutionThe market has clearly recognized Delek's improving business profile. Over the past 12 months, the stock has rallied 155.4%, comfortably outperforming Marathon Petroleum and Valero Energy's 78.7% and 111.6% return, respectively.

One-Year Stock Performance: DK vs. VLO and MPC
Image Source: Zacks Investment Research

Such a wide gap suggests investors are looking beyond the broader recovery in refining margins. Instead, they are rewarding Delek for executing well on initiatives that are improving profitability and strengthening its long-term earnings potential. While Marathon Petroleum and Valero Energy have benefited from favorable refining fundamentals, Delek has added several company-specific growth drivers that have strengthened investor confidence.

Enterprise Optimization Plan Is Delivering ResultsA major reason behind Delek's improving outlook is its Enterprise Optimization Plan (“EOP”). Rather than relying solely on stronger commodity markets, management has focused on making the business more efficient by reducing costs, improving asset utilization and streamlining operations across both its refining and logistics segments.

The strategy is already producing measurable results. Management recently increased its expected annual run-rate cash-flow improvement target to approximately $220 million, up from the previous goal of $200 million. Raising the target signals confidence that additional efficiencies remain achievable and that the program still has room to create value.

These operational improvements are particularly important because they can support earnings even if industry conditions become less favorable. That gives Delek an advantage that extends beyond normal refining cycles and helps distinguish it from peers such as Marathon Petroleum and Valero Energy.

Refinery Performance Is Heading in the Right DirectionOperational execution has quietly become one of Delek's biggest strengths.

The company successfully completed the Big Spring refinery turnaround safely, on schedule and within budget. With maintenance completed before the peak driving season, the refinery has returned to full operations, allowing Delek to benefit from stronger throughput and favorable refining economics.

Those improvements were reflected in first-quarter results. The refining segment generated adjusted EBITDA of $155.3 million, supported by stronger benchmark crack spreads and improved operating performance.

Although Marathon Petroleum and Valero Energy also continue to benefit from healthy refining markets, Delek's improved operational reliability provides another catalyst for earnings growth. With fewer planned maintenance disruptions, the company appears well positioned to maximize profitability if refining margins remain supportive.

Logistics Business Adds StabilityRefining may remain Delek's largest business, but this is no longer its only growth engine.

Its logistics business, operated through Delek Logistics Partners, continues to provide stable, fee-based cash flows that complement the more cyclical refining segment.

During the first quarter, the logistics segment generated adjusted EBITDA of $132.4 million, benefiting from stronger wholesale margins and higher third-party business. At the same time, Delek continues expanding its natural gas processing infrastructure in the Delaware Basin, creating additional opportunities for long-term earnings growth.

Like Marathon Petroleum and Valero Energy, Delek owns valuable midstream assets. However, the logistics platform is becoming an increasingly meaningful contributor to earnings, making the company's cash flows more diversified and improving its financial resilience over time.

Analysts Are Becoming More OptimisticAnother encouraging development is the improving sentiment among analysts covering the oil and gas sector.

Image Source: Zacks Investment Research

Over the past 60 days, the Zacks Consensus Estimate for 2026 earnings has increased 39.65%, while the estimate for 2027 has climbed 14.1%. Rising earnings estimates often indicate that analysts are becoming more confident in a company's ability to execute its strategy and deliver stronger financial performance.

Positive estimate revisions have historically been an important indicator of future stock performance. In Delek's case, the upward revisions suggest growing analyst confidence that its operational improvements and strategic initiatives will support stronger earnings.

Should Investors Buy DK Stock?Delek's premium valuation may initially appear expensive compared with MPC and VLO, but its improving fundamentals help explain why investors are willing to pay a higher multiple.

Management continues to execute well on its EOP, refinery performance has improved following the successful Big Spring turnaround, and the logistics business is generating a growing stream of stable cash flows. At the same time, analysts continue raising earnings estimates, reflecting increasing confidence in the company's future profitability.

No premium valuation is guaranteed to last, and Delek will need to maintain its operational momentum to justify trading above MPC and VLO. However, given the company's stronger earnings trajectory, disciplined execution and multiple company-specific growth catalysts, the valuation appears increasingly reasonable. With a Zacks Rank #2 (Buy), Delek remains an attractive option for investors seeking exposure to the refining sub-industry while benefiting from a business that is becoming stronger and more diversified. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Delek completed the Big Spring refinery turnaround safely, on schedule and within budget.DK expects no more major turnarounds this year, supporting full-capacity summer operations.Delek says refinery upgrades improve crude flexibility, product yields and blending capabilities. Delek US Holdings, Inc. (DK - Free Report) entered the third quarter with a key operational milestone behind it. The company completed the planned turnaround at its Big Spring refinery, executing the project safely, on schedule and within budget. While refinery turnarounds typically weigh on near-term earnings because of downtime and maintenance costs, the completion of this project positions Delek to benefit from improved operating performance during a period of healthy refining fundamentals.

Image Source: Delek US Holdings, Inc.

Management emphasized that the turnaround was designed to improve refinery reliability, crude slate optimization, product yields and higher-octane blending capabilities rather than simply restore operations. These improvements should enable Big Spring to process a broader range of crude oils more efficiently while producing a more profitable product mix. With no additional major turnarounds planned for the remainder of the year, Delek expects the upcoming two quarters to represent its highest maintenance spending period, allowing the refinery system to operate at full capacity during the peak summer driving season.

The timing also appears favorable. Management noted that geopolitical disruptions have created tighter global refining markets, supporting stronger crack spreads and widening crude differentials. Delek believes its access to multiple domestic crude grades, combined with higher distillate and jet fuel yields, provides greater flexibility to capitalize on changing market conditions. This operational flexibility, coupled with a more reliable Big Spring refinery, could help the company capture stronger refining margins over the coming quarters.

How Does Delek Compare With Peers?Several U.S. refiners continue investing to improve refinery reliability and operating efficiency, although each follows a different strategy.

Marathon Petroleum (MPC - Free Report) has consistently prioritized refinery modernization and turnaround projects to improve utilization rates, reduce unplanned downtime and maximize margin capture across its refining network. By enhancing crude processing flexibility and operational efficiency, Marathon Petroleum has strengthened its ability to benefit from favorable crack spreads.

Delek's Big Spring turnaround reflects a similar objective, although the impact could be more pronounced given the refinery's importance to its overall operations. As Marathon Petroleum demonstrates, sustained investments in refinery reliability can translate into stronger long-term refining performance.

Likewise, Valero Energy (VLO - Free Report) has built a reputation for industry-leading refinery reliability through disciplined maintenance programs and continuous operational improvements. Valero Energy regularly invests in refinery turnarounds that enhance product yields, increase operational flexibility and support high utilization rates across its refining system. While Valero Energy operates a much larger refining portfolio than Delek, both companies share the goal of maximizing margin capture through reliable operations and efficient crude processing.

The successful completion of Big Spring's turnaround suggests Delek is adopting an approach similar to VLO, focusing on reliability and optimization to improve refining profitability under favorable market conditions.

DK’s Share Price, ROE and Earnings ExpectationsOver the past year, Delek stock rose 121.8%, beating the Oil Refining & Marketing sub-industry’s growth of 38.1%.

Image Source: Zacks Investment Research

Delek stock delivered a higher return on equity (“ROE”) of 22.9%, outperforming its sub-industry average of 15.64%.

Image Source: Zacks Investment Research

Analysts have become more optimistic about DK’s earnings outlook over the past 60 days, with 2026 EPS estimates revised sharply higher by 39.85%, while 2027 estimates saw a more modest increase of 5.91%, signaling stronger near-term earnings expectations.

Image Source: Zacks Investment Research

DK currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways NBIX, MYRG, XYZ, DK and DY screened well on relative price strength and estimate revisions.NBIX earnings estimates rose 18.8% in 60 days, while MYRG shares surged 176.9% in a year.DK shares jumped 133.8% in a year, while DY gained 107% and saw estimates rise 19.7%. The U.S. stock market enters the second half of 2026 on a solid footing, supported by resilient economic growth, healthy corporate earnings and easing geopolitical tensions. While the Federal Reserve has adopted a more hawkish stance and investors are weighing the possibility of another interest-rate hike, cooling oil prices and steady consumer spending remain reasons for optimism.

Market leadership has also started to broaden beyond the artificial intelligence-driven rally, with defensive sectors such as healthcare and consumer staples attracting fresh interest. This rotation reflects a healthier market rather than a weakening one, as investors look for companies with stable earnings and strong fundamentals. In this environment, focusing on stocks showing strong relative price strength can be an effective strategy, as they often continue to outperform even when market leadership shifts.

At this stage, investors would be wise to consider companies, such as Neurocrine Biosciences (NBIX - Free Report) , MYR Group (MYRG - Free Report) , Block (XYZ - Free Report) , Delek US Holdings (DK - Free Report) and Dycom Industries (DY - Free Report) .

Relative Price Strength StrategyEarnings growth and valuation multiples are indeed important for investors to determine a stock's ability to offer considerable returns. However, these are also essential for determining whether a stock’s price performance is better than its peers or the industry average.

If a stock’s performance is lacking that of the broader groups, despite impressive earnings growth or valuation multiples, then something must be wrong.

It’s always advisable to stay away from these stocks and bet on those that are outperforming their respective industry or benchmark. This is because betting on a winner always proves to be lucrative.

Then again, it is imperative that you determine whether or not an investment has relevant upside potential when considering stocks with significant relative price strength. Stocks delivering better than the S&P 500 for 1 to 3 months, at least, and having solid fundamentals, indicate room for growth and the best way to go about this strategy.

Finally, it is crucial to find out whether analysts are optimistic about the upcoming earnings of these companies. In order to do this, we have added positive estimate revisions for the current quarter’s (Q1) earnings to our screen. When a stock undergoes an upward revision, it leads to additional price gains.

Screening ParametersRelative % Price change – 12 weeks greater than 0

Relative % Price change – 4 weeks greater than 0

Relative % Price change – 1 week greater than 0

(We have considered those stocks that have been outperforming the S&P 500 over the last 12 weeks, four weeks and one week.)

% Change (Q1) Est. over 4 Weeks greater than 0: Positive current-quarter estimate revisions over the last four weeks.

Zacks Rank equal to 1: Only Zacks Rank #1 (Strong Buy) stocks — that have returned more than 26% annually over the last 26 years and surpassed the S&P 500 in 23 of the last 26 years — can get through. You can see the complete list of today’s Zacks #1 Rank stocks here.

Current Price greater than or equal to $5 and Average 20-day Volume greater than or equal to 50,000: A minimum price of $5 is a good standard to screen low-priced stocks, while a high trading volume would imply adequate liquidity.

VGM Score less than or equal to B: Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2 (Buy), offer the best upside potential.

Here are five of the 10 stocks that made it through the screen:

Neurocrine Biosciences: Neurocrine Biosciences develops therapies for neurological, psychiatric, endocrine and immune disorders. Its marketed drugs, INGREZZA and CRENESSITY, drive growth, while a broad pipeline supports future treatment options.Over the past 60 days, the Zacks Consensus Estimate for the company’s 2026 earnings has moved up 18.8%. NBIX has a VGM Score of A.

Neurocrine Biosciences beat the Zacks Consensus Estimate for earnings in three of the last four quarters and missed in the other. It has a trailing four-quarter earnings surprise of roughly 6.9%, on average. NBIX shares have gained 31.7% in a year.

MYR Group: MYR Group is a leading electrical construction company serving the United States and Canada. Through its Transmission & Distribution and Commercial & Industrial segments, it delivers power infrastructure, data center, transportation, healthcare and clean energy projects. The Zacks Consensus Estimate for MYR Group’s 2026 earnings indicates 51.8% growth. MYRG has a VGM Score of B.

The firm has a market capitalization of around $7.8 billion. Over the past 60 days, the Zacks Consensus Estimate for MYR Group’s 2026 earnings has gone up 15.2%. MYRG’s shares have surged 176.9% in a year.

Block: Block offers financial and marketing services through a commerce ecosystem that helps sellers start, run and grow their businesses. The company’s expected EPS growth rate for three to five years is currently 31.8%, which compares favorably with the industry's growth rate of 22.8%. XYZ has a VGM Score of A.

Over the past 60 days, the Zacks Consensus Estimate for Block’s 2026 earnings has moved up 13.8%. The Zacks Consensus Estimate for 2026 earnings of the company indicates 5% growth. XYZ shares have gained 11.3% in a year.

Delek US Holdings: Brentwood, TN-based Delek US Holdings is an independent refiner, transporter and marketer of petroleum products. DK’s expected EPS growth rate for three to five years is currently 29.4%, which compares favorably with the industry's growth rate of 25.5%. The company has a VGM Score of A.

DK has a trailing four-quarter earnings surprise of roughly 215.8%, on average. Over the past 60 days, the Zacks Consensus Estimate for the downstream operator’s 2026 earnings has moved up from $3.66 per share to $5.27. Delek’s shares have gone up 133.8% in a year.

Dycom Industries: Dycom is a specialty contracting firm operating in the telecom industry. It provides diverse services such as engineering, construction, maintenance and installation services for the cable and telephone companies. The Zacks Consensus Estimate for fiscal 2027 earnings of Dycom indicates 28.8% growth. DY has a VGM Score of B.

Over the past 60 days, the Zacks Consensus Estimate for Dycom’s fiscal 2027 earnings has moved up 19.7%. The company has a market capitalization of $15.2 billion. DY shares have gone up 107% in a year.

Generally speaking, the U.S. stock market was frothy as the trading week kicked off. As ever, though, some titles were frothier than others; this certainly applied to Delek US Holdings (DK +7.86%), which saw its equity zoom almost 8% higher on a very bullish analyst change.

An exceptional exemption The prognosticator behind the move was TD Cowen's Jason Gabelman, who upgraded his recommendation on Delek to buy from hold. He also raised his price target to $58 per share from $50.

Image source: Getty Images.

According to reports, Gabelman believes that investors have fully priced in Delek's refining operations. However, they are overlooking the company's small refinery exemptions, which exempt it from producing a certain percentage of renewable fuels (or from purchasing compliance credits in lieu of this requirement).

Additionally, the analyst waxed bullish about Delek's refining dynamics and its shrinking interest expenses. The latter in particular should positively affect the company's bottom line.

Today's Change

(

7.86

%) $

3.76

Current Price

$

51.58

The war premium I'd agree with Gabelman's assessment of Delek's under-the-radar advantage with the small refinery exemptions. I would also be bullish on the oil company's rather advantageous position as the Iran war drags on (although the latest news about potentially settling it is a development to be guarded about). I feel that this change in the recommendation is justified.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Delek Us. The Motley Fool has a disclosure policy.

5.52K Followers

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

BRENTWOOD, Tenn.--(BUSINESS WIRE)--Delek US Holdings, Inc. (NYSE: DK) (“Delek US”, "Company") today announced financial results for its first quarter ended March 31, 2026.

“2026 is off to a strong start as we continue to build on the momentum established last year, further enhancing our cash flow profile through disciplined execution of our Enterprise Optimization Plan and advancing several other value creation initiatives,” said Avigal Soreq, President and Chief Executive Officer of Delek US. “A key highlight of the quarter was the successful completion of our Big Spring refinery turnaround, which was executed safely, on time, and on budget. With the full system now back online, we are well positioned to capture improved margins and meet demand during the upcoming driving season.”

“Delek Logistics Partners continues to demonstrate the strength and resilience of its integrated 3 stream service business model, supported by increasing third-party cash flows and optimization of its existing asset base. The steady ramp-up of our Delaware Basin Libby 2 Plant and our comprehensive sour gas capabilities reinforce DKL’s competitive position and support its attractive 2026 outlook. The economic separation between DK and DKL continues to increase, enhancing DKL’s financial flexibility and increasing valuation visibility at DK and DKL on a standalone basis.”

“Looking ahead, we are excited about the remainder of the year as we operate our full system and leverage our enhanced reliability to drive performance. We remain focused on safe and efficient operations, disciplined capital allocation, and adding incremental value creating initiatives to achieve our Sum of the Parts goals,” Soreq concluded.

Delek US Results

Three Months Ended March 31,

($ in millions, except per share data)

2026

2025

Net income (loss) attributable to Delek

$

(201.3

)

$

(172.7

)

Total diluted income (loss) per share

$

(3.34

)

$

(2.78

)

Adjusted net income (loss)

$

4.7

$

(144.4

)

Adjusted net income (loss) per share

$

0.08

$

(2.32

)

Adjusted EBITDA

$

211.7

$

33.6

Refining Segment

The refining segment Adjusted EBITDA was $155.3 million in the first quarter 2026 compared with $(27.0) million in the same quarter last year, which reflects an increase in refining margin driven by increased crack spreads. During the first quarter 2026, Delek US's benchmark crack spreads were up an average of 63.8% from prior-year levels. Adjusted EBITDA was also impacted by inventory adjustments of $(17.6) million and $26.2 million for first quarter 2026 and 2025, respectively.

Logistics Segment

The logistics segment Adjusted EBITDA in the first quarter 2026 was $132.4 million compared with $123.2 million in the prior-year quarter. The increase over last year's first quarter reflects higher margins in the wholesale business and increased interest income related to sales-type leases.

Shareholder Distributions

On April 20, 2026, the Board of Directors approved the regular quarterly dividend of $0.255 per share that will be paid on May 8, 2026 to shareholders of record on May 1, 2026.

Liquidity

As of March 31, 2026, Delek US had a cash balance of $624.1 million and total consolidated long-term debt of $3,183.1 million, resulting in net debt of $2,559.0 million. As of March 31, 2026, Delek Logistics Partners, LP (NYSE: DKL) ("Delek Logistics") had $9.9 million of cash and $2,294.6 million of total long-term debt, which are included in the consolidated amounts on Delek US' balance sheet. Excluding Delek Logistics, Delek US had $614.2 million in cash and $888.5 million of long-term debt, or a $274.3 million net debt position.

First Quarter 2026 Results | Conference Call Information

Delek US will hold a conference call to discuss its first quarter 2026 results on Wednesday, April 29, 2026 at 9:00 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 ten 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) first quarter 2026 earnings conference call that will be held on Wednesday, April 29, 2026 at 11:30 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 will be 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, pipelines, and renewable fuels. The refining assets consist primarily 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 include Delek Logistics Partners, LP (NYSE: DKL). Delek Logistics Partners, LP is a growth-oriented master limited partnership focused on owning and operating midstream energy infrastructure assets. Delek US Holdings, Inc. and its subsidiaries owned approximately 63.3% (including the general partner interest) of Delek Logistics Partners, LP at March 31, 2026.

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 anticipated performance and financial position; cost reductions; throughput at the Company’s refineries; crude oil prices, discounts and quality and our ability to benefit therefrom; growth; scheduled turnaround activity; projected capital expenditures and investments into our business; liquidity and EBITDA impacts from strategic and intercompany transactions; the performance of our midstream growth initiatives, and the flexibility, benefits and expected returns therefrom; and projected benefits of Delek Logistics' acquisition of the Delaware Gathering, Permian Gathering, H2O Midstream and Gravity Water Midstream businesses.

Investors are cautioned that the following important factors, among others, may affect these forward-looking statements: political or regulatory developments, including tariffs, taxes and changes in governmental policies relating to crude oil, natural gas, refined products or renewables; 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, uncertainties regarding actions by OPEC and non-OPEC oil producing countries impacting crude oil production and pricing; risks and uncertainties related to the integration by Delek Logistics of the Delaware Gathering, Permian Gathering, H2O Midstream or Gravity businesses following their acquisition; Delek US' ability to realize cost reductions; risks related to 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; risks and uncertainties with respect to the possible benefits of the H2O Midstream and Gravity transactions; 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 and/or legislation changing renewable fuel standard waivers; changes in the scope, costs, and/or timing of capital and maintenance projects; the ability to grow the Midland Gathering System; the ability of the Red River joint venture to complete the expansion project to increase the Red River pipeline capacity; operating hazards inherent in transporting, storing and processing crude oil and intermediate and finished petroleum products; our competitive position and the effects of competition; the projected growth of the industries in which we operate; general economic and business conditions affecting the geographic areas in which we operate; and other risks described in Delek US’ filings with the United States Securities and Exchange Commission (the “SEC”), including risks disclosed in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other filings and reports with the SEC.

Forward-looking statements should not be read as a guarantee of future performance or results and will not be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking information is based on information available at the time and/or management's good faith belief with respect to future events, and is subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statements. Delek US undertakes no obligation to update or revise any such forward-looking statements to reflect events or circumstances that occur, or which Delek US becomes aware of, after the date hereof, except as required by applicable law or regulation.

Non-GAAP Disclosures:

Our management uses certain “non-GAAP” operational measures to evaluate our operating segment performance and non-GAAP financial measures to evaluate past performance and prospects for the future to supplement our financial information presented in accordance with United States ("U.S.") Generally Accepted Accounting Principles ("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 (loss) 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 (loss) attributable to Delek adjusted to add back interest expense, income tax expense, depreciation, amortization and proportional interest, taxes, depreciation and amortization of equity method investments; 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; Refining margin - calculated as gross margin (which we define as sales minus cost of sales) adjusted for operating expenses and depreciation and amortization included in cost of sales; Adjusted refining margin - calculated as refining margin adjusted for other inventory impacts, net inventory LCM valuation loss (benefit), unrealized hedging (gain) loss and intercompany lease impacts; Refining production margin - calculated based on the regional market sales price of refined products produced, less allocated transportation, Renewable Fuel Standard volume obligation and associated feedstock costs. This measure reflects the economics of each refinery exclusive of the financial impact of inventory price risk mitigation programs and marketing uplift strategies; Refining production margin per throughput barrel - calculated as refining production margin divided by our average refining throughput in barrels per day (excluding purchased barrels) multiplied by 1,000 and multiplied by the number of days in the period; and Net debt - calculated as long-term debt including both current and non-current portions (the most comparable GAAP measure) less cash and cash equivalents as of a specific balance sheet date. 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. “Net debt,” also a non-GAAP financial measure, is an important measure to monitor leverage and evaluate the balance sheet.

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, Adjusted Refining Margin and Refining Production 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.

Delek US Holdings, Inc.

Condensed Consolidated Balance Sheets (Unaudited)

($ in millions, except share and per share data)

March 31, 2026

December 31, 2025

ASSETS

Current assets:

Cash and cash equivalents

$

624.1

$

625.8

Accounts receivable, net

942.7

648.7

Inventories, net of inventory valuation reserves

931.0

726.0

Other current assets

149.9

67.5

Total current assets

2,647.7

2,068.0

Property, plant and equipment:

Property, plant and equipment

5,811.3

5,586.9

Less: accumulated depreciation

(2,399.9

)

(2,314.4

)

Property, plant and equipment, net

3,411.4

3,272.5

Operating lease right-of-use assets

69.9

71.4

Goodwill

475.3

475.3

Other intangibles, net

404.2

405.7

Equity method investments

424.4

427.7

Other non-current assets

137.0

127.1

Total assets

$

7,569.9

$

6,847.7

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$

2,309.7

$

1,633.8

Current portion of long-term debt

9.5

9.5

Current portion of operating lease liabilities

26.3

27.2

Accrued expenses and other current liabilities

1,149.1

858.9

Total current liabilities

3,494.6

2,529.4

Non-current liabilities:

Long-term debt, net of current portion

3,173.6

3,223.6

Obligation under Inventory Intermediation Agreement

230.5

119.5

Environmental liabilities, net of current portion

30.9

31.1

Asset retirement obligations

35.1

34.0

Deferred tax liabilities

159.5

217.9

Operating lease liabilities, net of current portion

42.9

46.1

Other non-current liabilities

100.8

98.8

Total non-current liabilities

3,773.3

3,771.0

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, 78,793,863 shares and 77,357,447 shares issued at March 31, 2026, and December 31, 2025, respectively

0.8

0.8

Additional paid-in capital

1,274.4

1,290.9

Accumulated other comprehensive loss

—

—

Treasury stock, 17,575,527 shares, at cost, at March 31, 2026, and December 31, 2025, respectively

(694.1

)

(694.1

)

Retained earnings (deficit)

(528.6

)

(311.1

)

Non-controlling interests in subsidiaries

249.5

260.8

Total stockholders’ equity

302.0

547.3

Total liabilities and stockholders’ equity

$

7,569.9

$

6,847.7

  Delek US Holdings, Inc.

Condensed Consolidated Statements of Income (Loss) (Unaudited)

($ in millions, except share and per share data)

Three Months Ended March 31,

2026

2025

Net revenues

$

2,653.1

$

2,641.9

Cost of sales:

Cost of materials and other

2,465.8

2,399.5

Operating expenses (excluding depreciation and amortization presented below)

219.9

211.1

Depreciation and amortization

97.6

95.0

Total cost of sales

2,783.3

2,705.6

Operating expenses related to wholesale business (excluding depreciation and amortization presented below)

1.6

1.3

General and administrative expenses

44.0

61.5

Depreciation and amortization

5.7

6.3

Asset impairment

—

—

Other operating expense (income), net

(2.2

)

(7.0

)

Total operating costs and expenses

2,832.4

2,767.7

Operating income (loss)

(179.3

)

(125.8

)

Interest expense, net

84.5

84.1

Income from equity method investments

(14.6

)

(13.3

)

Other expense (income), net

(0.3

)

(1.6

)

Total non-operating expense, net

69.6

69.2

Income (loss) from continuing operations before income tax expense (benefit)

(248.9

)

(195.0

)

Income tax expense (benefit)

(58.2

)

(36.8

)

Income (loss) from continuing operations, net of tax

(190.7

)

(158.2

)

Discontinued operations:

Income (loss) from discontinued operations

(0.3

)

(0.4

)

Income tax expense (benefit)

(0.1

)

(0.1

)

Income (loss) from discontinued operations, net of tax

(0.2

)

(0.3

)

Net income (loss)

(190.9

)

(158.5

)

Net income attributed to non-controlling interests

10.4

14.2

Net income (loss) attributable to Delek

$

(201.3

)

$

(172.7

)

Basic income (loss) per share:

Income (loss) from continuing operations

$

(3.34

)

$

(2.78

)

Income (loss) from discontinued operations

$

—

$

—

Total basic income (loss) per share

$

(3.34

)

$

(2.78

)

Diluted income (loss) per share:

Income (loss) from continuing operations

$

(3.34

)

$

(2.78

)

Income (loss) from discontinued operations

$

—

$

—

Total diluted income (loss) per share

$

(3.34

)

$

(2.78

)

Weighted average common shares outstanding:

Basic

60,255,377

62,115,776

Diluted

60,255,377

62,115,776

  Delek US Holdings, Inc.

Condensed Consolidated Cash Flow Data (Unaudited)

($ in millions)

Three Months Ended March 31,

2026

2025

Cash flows from operating activities:

Cash provided by (used in) operating activities - continuing operations

$

461.3

$

(62.1

)

Cash provided by (used in) operating activities - discontinued operations

(0.2

)

(0.3

)

Net cash provided by (used in) operating activities

461.1

(62.4

)

Cash flows from investing activities:

Net cash used in investing activities

(190.3

)

(314.6

)

Cash flows from financing activities:

Net cash provided by (used in) financing activities

(272.5

)

265.2

Net decrease in cash and cash equivalents

(1.7

)

(111.8

)

Cash and cash equivalents at the beginning of the period

625.8

735.6

Cash and cash equivalents at the end of the period

624.1

623.8

Working Capital Impacts Included in Cash Flows from Operating Activities from Continuing Operations

($ in millions)

Three Months Ended March 31,

2026

2025

Favorable (unfavorable) cash flow working capital changes (1)

$

600.9

$

25.6

(1) Includes obligations under the inventory intermediation agreement.

Significant Transactions During the Quarter Impacting Results:

Restructuring Costs

In 2022, we announced that we are progressing a business transformation focused on enterprise-wide opportunities to improve the efficiency of our cost structure. For the first quarter 2026, we recorded restructuring costs totaling $2.7 million ($2.1 million after-tax) associated with our business transformation. Restructuring costs of $1.7 million are recorded in general and administrative expenses and $1.0 million are included in operating expenses in our condensed consolidated statements of income.

General and Administrative Expenses

Excluding transaction costs and restructuring costs, general and administrative expenses were $40.2 million for the three months ended March 31, 2026.

Transactions with Delek Logistics

In January 2026, we entered into asset purchase agreements with Delek Logistics, pursuant to which we agreed to acquire a Tyler refinery tank for total consideration of $19.0 million and El Dorado tank and terminal assets for total consideration of $66.0 million. The Tyler Tank Purchase closed on April 1, 2026 with consideration paid through transfer of Delek Logistics common units, based on a 30-day volume weighted average unit price. The El Dorado Terminal Purchase is expected to close on October 1, 2027, subject to the satisfaction of customary closing conditions.

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 purchase cost per barrel directly related to our refineries and per barrel cost of materials and other for the period recognized on a first-in, first-out basis directly related to our refineries. It assumes no beginning or ending inventory, so that the current period average purchase cost per barrel is a reasonable estimate of our market purchase cost for the current period, without giving effect to any build or draw on beginning inventory. These amounts are based on management estimates using a methodology including these assumptions. However, this analysis provides management with a means to compare hypothetical refining margins to current period average crack spreads, as well as provides a means to better compare our results to peers.

Intercompany Leases

As a result of amendments to intercompany lease agreements in August 2024, we had to reassess lease classification for the agreements that contain leases under Accounting Standards Codification 842. As a result of these lease assessments, certain of these agreements met the criteria to be accounted for as sales-type leases for Delek Logistics and finance leases for the Refining segment. Therefore, portions of the minimum volume commitments under these agreements subject to sales-type lease accounting are recorded as interest income with the remaining amounts recorded as a reduction in net investment in leases. Prior to the amendments, these agreements were accounted for as operating leases and these minimum volume commitments were recorded as revenues in the Logistics segment. Similarly, these minimum volume commitments were previously recorded as costs of sales for the Refining segment, as the underlying lease was reclassified from an operating lease to a finance lease, and these payments are now recorded as interest expense and reductions in the lease liability. These accounting changes have no impact to the Delek US consolidated results as these amounts eliminate in consolidation.

Revolving Credit Facilities

On March 26, 2026, Delek Logistics Partners, LP entered into a new credit agreement that provides for revolving commitments up to $1,300.0 million in the aggregate with a sublimit up to $150.0 million for letters of credit and up to $50.0 million for swing line loans.

On April 9, 2026, the Company entered into Amendment No. 4 to Third Amended and Restated Credit Agreement. Amendment No. 4, among other modifications, (i) increases the revolving loan commitments from $1,100.0 million to $1,250.0 million, (ii) extends the maturity date of the Delek Revolving Credit Facility from October 26, 2027 to April 9, 2031, (iii) reduces the interest rate margins applicable to the Delek Revolving Credit Facility by 0.25% and (iv) amends certain thresholds for obligations under the Existing ABL Credit Agreement.

Reconciliation of Net Income (Loss) Attributable to Delek US to Adjusted Net Income (Loss)

Three Months Ended March 31,

$ in millions (unaudited)

2026

2025

Reported net income (loss) attributable to Delek US

$

(201.3

)

$

(172.7

)

Adjusting items (1)

Inventory and other LCM valuation (benefit) loss

(8.7

)

0.2

Tax effect

2.0

—

Inventory and other LCM valuation (benefit) loss, net

(6.7

)

0.2

Other inventory impact

(17.6

)

26.2

Tax effect

4.0

(5.9

)

Other inventory impact, net (2)

(13.6

)

20.3

Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements

23.9

(1.6

)

Tax effect

(5.4

)

0.4

Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements, net

18.5

(1.2

)

Transaction related expenses

2.1

3.5

Tax effect

(0.5

)

(0.8

)

Transaction related expenses, net

1.6

2.7

Unrealized changes in fair value of the net RINs obligation due to price of underlying RINs and related hedging on forward RIN contracts

180.8

(0.2

)

Tax effect

(40.7

)

—

Unrealized changes in fair value of the net RINs obligation due to price of underlying RINs and related hedging on forward RIN contracts, net

140.1

(0.2

)

Restructuring costs

2.7

8.4

Tax effect

(0.6

)

(1.9

)

Restructuring costs, net (2)

2.1

6.5

Renewable volume obligation short related to small refinery exemptions(4)

82.3

—

Tax effect

(18.5

)

—

Renewable volume obligation short related to small refinery exemptions, net

63.8

—

DPG inventory adjustment

0.3

—

Tax effect

(0.1

)

—

DPG inventory adjustment, net (3)

0.2

—

Total Adjusting items (1)

206.0

28.3

Adjusted net income (loss)

$

4.7

$

(144.4

)

Reconciliation of U.S. GAAP Income (Loss) per share to Adjusted Net Income (Loss) per share

Three Months Ended March 31,

$ per share (unaudited)

2026

2025

Reported diluted net income (loss) per share

$

(3.34

)

$

(2.78

)

Adjusting items, after tax (per share) (1) (2)

Net inventory and other LCM valuation (benefit) loss

(0.11

)

—

Other inventory impact (3)

(0.23

)

0.33

Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements

0.31

(0.02

)

Unrealized changes in fair value of the net RINs obligation due to price of underlying RINs and related hedging on forward RIN contracts

2.33

—

Transaction related expenses

0.03

0.04

Restructuring costs (3)

0.03

0.11

Renewable volume obligation short related to small refinery exemptions (5)

1.06

—

DPG inventory adjustment, net (4)

—

—

Total Adjusting items (1)

3.42

0.46

Adjusted net income (loss) per share

$

0.08

$

(2.32

)

(1)

The adjustments have been tax effected using the estimated marginal tax rate, as applicable.

(2) For periods of Adjusted net loss, Adjustments (Adjusting items) and Adjusted net loss per share are presented using basic weighted average shares outstanding.

(3) See further discussion in the "Significant Transactions During the Quarter Impacting Results" section.

(4) Starting with the quarter ended June 30, 2025, we updated our non-GAAP financial measures to include the impact of the DPG inventory for price and volume inventory impacts. The impact to historical non-GAAP financial measures is immaterial.

(5) Starting with the quarter ended September 30, 2025, we have updated our non-GAAP financial measures to include the benefit related to small refinery exemptions expected to be received specific to the current year obligation based on current laws and regulations. Consistent with our historical accounting practice, we have recorded the full amount of our Consolidated Net RINs Obligation assuming no future exemptions are granted. However, based on our history of being granted the exemptions and expected future activity, we have adjusted the non-GAAP measure to include the benefit of receiving exemptions equal to approximately 50% of our recorded current-period obligation.

Reconciliation of Net Income (Loss) attributable to Delek US to Adjusted EBITDA

Three Months Ended March 31,

$ in millions (unaudited)

2026

2025

Reported net income (loss) attributable to Delek US

$

(201.3

)

$

(172.7

)

Add:

Interest expense, net

84.5

84.1

Income tax expense (benefit)

(58.3

)

(36.9

)

Depreciation and amortization

103.3

101.3

Proportional interest, taxes, depreciation and amortization from equity-method investments

7.3

7.1

EBITDA attributable to Delek US

(64.5

)

(17.1

)

Adjusting items

Net inventory and other LCM valuation (benefit) loss

(8.7

)

0.2

Other inventory impact (1)

(17.6

)

26.2

Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements

23.9

(1.6

)

Unrealized changes in fair value of the net RINs obligation due to price of underlying RINs and related hedging on forward RIN contracts

180.8

(0.2

)

Transaction related expenses

2.1

3.5

Restructuring costs (1)

2.7

8.4

Renewable volume obligation short related to small refinery exemptions(3)

82.3

—

DPG inventory adjustment (2)

0.3

—

Net income attributable to non-controlling interest

10.4

14.2

Total Adjusting items

276.2

50.7

Adjusted EBITDA

$

211.7

$

33.6

Reconciliation of Segment EBITDA Attributable to Delek US to Adjusted Segment EBITDA

Three Months Ended March 31, 2026

$ in millions (unaudited)

Refining

Logistics

Segment Total

Corporate, Other and Eliminations

Consolidated

Segment EBITDA Attributable to Delek US

$

79.2

$

94.9

$

174.1

$

(238.6

)

$

(64.5

)

Adjusting items

Net inventory and other LCM valuation (benefit) loss

(8.7

)

—

(8.7

)

—

(8.7

)

Other inventory impact (1)

(17.6

)

—

(17.6

)

—

(17.6

)

Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements

23.3

0.6

23.9

—

23.9

Unrealized changes in fair value of the net RINs obligation due to price of underlying RINs and related hedging on forward RIN contracts

22.3

—

22.3

158.5

180.8

Restructuring costs (1)

—

—

—

2.7

2.7

Transaction related expenses

—

1.2

1.2

0.9

2.1

Renewable volume obligation short related to small refinery exemptions (3)

82.3

—

82.3

—

82.3

DPG inventory adjustment (2)

—

0.3

0.3

—

0.3

Intercompany lease impacts (1)

(25.5

)

35.4

9.9

(9.9

)

—

Net income attributable to non-controlling interest

—

—

—

10.4

10.4

Total Adjusting items

76.1

37.5

113.6

162.6

276.2

Adjusted Segment EBITDA

$

155.3

$

132.4

$

287.7

$

(76.0

)

$

211.7

Three Months Ended March 31, 2025

$ in millions (unaudited)

Refining

Logistics

Segment Total

Corporate, Other and Eliminations

Consolidated

Segment EBITDA Attributable to Delek US

$

(15.8

)

$

92.2

$

76.4

$

(93.5

)

$

(17.1

)

Adjusting items

Net inventory and other LCM valuation (benefit) loss

0.2

—

0.2

—

0.2

Other inventory impact (1)

26.2

—

26.2

—

26.2

Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements

(1.6

)

—

(1.6

)

—

(1.6

)

Unrealized changes in fair value of the net RINs obligation due to price of underlying RINs and related hedging on forward RIN contracts

(5.5

)

—

(5.5

)

5.3

(0.2

)

Restructuring costs

0.3

—

0.3

8.1

8.4

Transaction related expenses

—

3.3

3.3

0.2

3.5

Intercompany lease impacts (1)

(30.8

)

27.7

(3.1

)

3.1

—

Net income attributable to non-controlling interest

—

—

—

14.2

14.2

Total Adjusting items

(11.2

)

31.0

19.8

30.9

50.7

Adjusted Segment EBITDA

$

(27.0

)

$

123.2

$

96.2

$

(62.6

)

$

33.6

Refining Segment Selected Financial Information

Three Months Ended March 31,

2026

2025

Total Refining Segment

(Unaudited)

Days in period

90

90

Total sales volume - refined product (average barrels per day ("bpd")) (1)

274,376

294,892

Total production (average bpd)

257,659

285,570

Crude oil

238,338

272,183

Other feedstocks

21,692

17,020

Total throughput (average bpd)

260,030

289,203

Total refining production margin per bbl total throughput

$

12.13

$

5.75

Total refining operating expenses per bbl total throughput

$

6.16

$

6.00

Total refining production margin ($ in millions)

$

283.8

$

149.6

Supply, marketing and other ($ millions) (2)

(61.3

)

(23.7

)

Total adjusted refining margin ($ in millions)

$

222.5

$

125.9

Total crude slate details

Total crude slate: (% based on amount received in period)

WTI crude oil

80.4

%

66.2

%

Gulf Coast Sweet crude

4.6

%

8.7

%

Local Arkansas crude oil

3.7

%

3.8

%

Other

11.3

%

21.3

%

Crude utilization (% based on nameplate capacity) (4)

78.9

%

90.1

%

Tyler, TX Refinery

Days in period

90

90

Products manufactured (average bpd):

Gasoline

37,956

34,214

Diesel/Jet

30,236

30,415

Petrochemicals, LPG, NGLs

1,816

1,861

Other

22

1,405

Total production

70,030

67,895

Throughput (average bpd):

Crude oil

68,035

68,460

Other feedstocks

3,616

770

Total throughput

71,651

69,230

Tyler refining production margin ($ in millions)

$

104.9

$

48.7

Per barrel of throughput:

Tyler refining production margin

$

16.27

$

7.82

Operating expenses

$

5.64

$

5.69

Crude Slate: (% based on amount received in period)

WTI crude oil

79.5

%

73.7

%

East Texas crude oil

18.8

%

25.2

%

Other

1.7

%

1.1

%

Capture rate (3)

60.9

%

46.1

%

El Dorado, AR Refinery

Days in period

90

90

Products manufactured (average bpd):

Gasoline

37,534

37,350

Diesel/Jet

26,054

27,941

Petrochemicals, LPG, NGLs

1,304

941

Asphalt

5,362

6,843

Other

1,521

1,569

Total production

71,775

74,644

Throughput (average bpd):

Crude oil

69,909

71,921

Other feedstocks

2,933

3,840

Total throughput

72,842

75,761

Refining Segment Selected Financial Information (continued)

Three Months Ended March 31,

2026

2025

El Dorado refining production margin ($ in millions)

$

61.9

$

26.1

Per barrel of throughput:

El Dorado refining production margin

$

9.44

$

3.83

Operating expenses

$

5.68

$

5.16

Crude Slate: (% based on amount received in period)

WTI crude oil

85.5

%

68.5

%

Local Arkansas crude oil

12.9

%

14.4

%

Other

1.6

%

17.1

%

Capture rate (3)

35.3

%

22.6

%

Big Spring, TX Refinery

Days in period

90

90

Products manufactured (average bpd):

Gasoline

15,714

29,399

Diesel/Jet

10,463

19,023

Petrochemicals, LPG, NGLs

1,150

3,142

Asphalt

1,224

2,543

Other

1,802

3,878

Total production

30,353

57,985

Throughput (average bpd):

Crude oil

28,718

53,321

Other feedstocks

1,816

6,094

Total throughput

30,534

59,415

Big Spring refining production margin ($ in millions)

$

21.6

$

26.0

Per barrel of throughput:

Big Spring refining production margin

$

7.85

$

4.86

Operating expenses

$

10.21

$

8.36

Crude Slate: (% based on amount received in period)

WTI crude oil

72.3

%

62.7

%

WTS crude oil

27.7

%

37.3

%

Capture rate (3)

31.5

%

30.2

%

Krotz Springs, LA Refinery

Days in period

90

90

Products manufactured (average bpd):

Gasoline

46,713

43,163

Diesel/Jet

30,954

32,321

Heavy oils

1,567

3,231

Petrochemicals, LPG, NGLs

6,267

6,331

Other

—

—

Total production

85,501

85,046

Throughput (average bpd):

Crude oil

71,676

78,481

Other feedstocks

13,327

6,316

Total throughput

85,003

84,797

Krotz Springs refining production margin ($ in millions)

$

95.4

$

48.8

Per barrel of throughput:

Krotz Springs refining production margin

$

12.48

$

6.40

Operating expenses

$

5.57

$

5.36

Crude Slate: (% based on amount received in period)

WTI Crude

79.4

%

59.9

%

Gulf Coast Sweet Crude

16.0

%

30.3

%

Other

4.6

%

9.8

%

Capture rate (3)

55.3

%

52.5

%

Logistics Segment Selected Information

Three Months Ended March 31,

2026

2025

(Unaudited)

Gathering & Processing: (average bpd)

Lion Pipeline System:

Crude pipelines (non-gathered)

62,758

61,888

Refined products pipelines

44,658

56,010

SALA Gathering System

9,220

10,321

East Texas Crude Logistics System

27,284

26,918

Midland Gathering Assets

218,203

246,090

Plains Connection System

212,359

179,240

Delaware Gathering Assets:

Natural gas gathering and processing (Mcfd) (1)

63,903

59,809

Crude oil gathering (average bpd)

129,451

122,226

Water disposal and recycling (average bpd)

111,173

128,499

Midland Water Gathering System: (2)

Water disposal and recycling (average bpd) (2)(3)

565,411

632,972

Wholesale Marketing & Terminalling:

East Texas - Tyler Refinery sales volumes (average bpd) (4)

—

67,876

West Texas wholesale marketing throughputs (average bpd)

11,771

10,826

West Texas wholesale marketing margin per barrel

$

4.42

$

1.64

Terminalling throughputs (average bpd) (5)

135,744

135,404

(1)

Mcfd - average thousand cubic feet per day.

(2) Consists of volumes of H2O Midstream and Gravity.

(3) Gravity volumes in 2025 are from January 2, 2025 through March 31, 2025.

(4) Excludes jet fuel and petroleum coke.

(5) Consists of terminalling throughputs at our Tyler, Big Spring, Big Sandy and Mount Pleasant, Texas terminals, El Dorado and North Little Rock, Arkansas terminals and Memphis and Nashville, Tennessee terminals.

Supplemental Information

Schedule of Selected Segment Financial Data, Pricing Statistics Impacting our Refining Segment, and Other Reconciliations of Amounts Reported Under U.S. GAAP

Three Months Ended March 31, 2026

$ in millions (unaudited)

Refining

Logistics

Segment
Total

Corporate,

Other and Eliminations

Consolidated

Net revenues (excluding intercompany fees and revenues)

$

2,522.3

$

130.8

$

2,653.1

$

—

$

2,653.1

Inter-segment fees and revenues

108.2

166.7

274.9

(274.9

)

—

Total revenues

$

2,630.5

$

297.5

$

2,928.0

$

(274.9

)

$

2,653.1

Cost of sales

2,617.3

253.6

2,870.9

(87.6

)

2,783.3

Gross margin

$

13.2

$

43.9

$

57.1

$

(187.3

)

$

(130.2

)

Three Months Ended March 31, 2025

$ in millions (unaudited)

Refining

Logistics

Segment
Total

Corporate,

Other and Eliminations

Consolidated

Net revenues (excluding intercompany fees and revenues)

$

2,518.3

$

123.6

$

2,641.9

$

—

$

2,641.9

Inter-segment fees and revenues

90.0

126.3

216.3

(216.3

)

—

Total revenues

$

2,608.3

$

249.9

$

2,858.2

$

(216.3

)

$

2,641.9

Cost of sales

2,700.9

199.3

2,900.2

(194.6

)

2,705.6

Gross margin

$

(92.6

)

$

50.6

$

(42.0

)

$

(21.7

)

$

(63.7

)

Pricing Statistics

Three Months Ended March 31,

(average for the period presented)

2026

2025

WTI — Cushing crude oil (per barrel)

$

72.67

$

71.47

WTI — Midland crude oil (per barrel)

$

72.57

$

72.52

WTS — Midland crude oil (per barrel)

$

69.91

$

71.95

LLS (per barrel)

$

73.68

$

74.35

Brent (per barrel)

$

77.90

$

74.98

U.S. Gulf Coast 5-3-2 crack spread (per barrel) (1)

$

26.71

$

16.97

U.S. Gulf Coast 3-2-1 crack spread (per barrel) (1)

$

24.90

$

16.11

U.S. Gulf Coast 2-1-1 crack spread (per barrel) (1)

$

22.56

$

12.20

U.S. Gulf Coast Unleaded Gasoline (per gallon)

$

2.09

$

1.98

Gulf Coast Ultra-low sulfur diesel (per gallon)

$

2.74

$

2.29

U.S. Gulf Coast high sulfur diesel (per gallon)

$

2.49

$

2.12

Natural gas (per MMBTU)

$

3.48

$

3.87

Other Reconciliations of Amounts Reported Under U.S. GAAP

$ in millions (unaudited)

Three Months Ended March 31,

Reconciliation of gross margin to Refining margin to Adjusted refining margin

2026

2025

Gross margin

$

13.2

$

(92.6

)

Add back (items included in cost of sales):

Operating expenses (excluding depreciation and amortization)

150.2

158.1

Depreciation and amortization

65.3

71.9

Refining margin

$

228.7

$

137.4

Adjusting items

Net inventory and other LCM valuation loss (benefit)

(8.7

)

0.2

Other inventory impact (1)

(17.6

)

26.2

Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements

23.3

(1.6

)

Unrealized RINs hedging (gain) loss where the hedged item is not yet recognized in the financial statements

22.3

(5.5

)

Intercompany lease impacts (1)

(25.5

)

(30.8

)

Total Adjusting items

(6.2

)

(11.5

)

Adjusted refining margin

$

222.5

$

125.9

(1) See further discussion in the "Significant Transactions During the Quarter Impacting Results" section.

Calculation of Net Debt

March 31, 2026

December 31, 2025

Long-term debt - current portion

$

9.5

$

9.5

Long-term debt - non-current portion

3,173.6

3,223.6

Total long-term debt

3,183.1

3,233.1

Less: Cash and cash equivalents

624.1

625.8

Net debt - consolidated

2,559.0

2,607.3

Less: DKL net debt

2,284.7

2,333.5

Net debt, excluding DKL

$

274.3

$

273.8

More News From Delek US Holdings, Inc.

Shares of Delek U.S. Holdings (DK +2.00%) rallied 15.1% on Wednesday as of 1:14 p.m. EDT.

The small refinery and oil and gas logistics company rallied on the back of better-than-expected earnings today, along with a relatively strong day for oil and gas names amid higher oil prices.

Delek is benefiting from very jet fuel high refining margins amid the current macroeconomic environment. Moreover, the company is also undergoing some "self-help" with a large cost-cutting program, as well as the ongoing separation of its refining and logistics segments.

Today's Change

(

2.00

%) $

0.94

Current Price

$

48.01

Delek delivers fuel for profits In the first quarter, Delek grew revenue by 0.4% to $2.65 billion, with an adjusted (non-GAAP) loss per share of ($0.98).

While those numbers don't seem especially good, they were ahead of expectations. Notably, Delek's Big Spring refinery was down for maintenance in the quarter, which affected revenue and earnings in the short-term but positions the company for higher efficiency and margins going forward.

Not only is the Big Spring turnaround maintenance now complete, but Delek is also underway with a significant cost-cutting program. On the release, management announced it had increased its annualized cash flow savings from the program from $200 million to $220 million.

Delek also has a particularly advantageous position, with a higher proportion of its refining capacity dedicated to jet fuel yield than other refiners. Those margins are particularly high right now. The refining segment's adjusted EBITDA increased to $155.3 million, up massively from a $27 million loss in the year-ago quarter.

Image source: Getty Images.

Delek's management believes in more upside In a slide on the presentation, Delek believes its "mid-cycle" adjusted EBITDA is around $545 million. Attributing a 4.5 times multiple to its refining operations, Delek believes its enterprise value should be about $2.45 billion -- a little below where it is now.

However, Delek also has other assets. Notably, Delek owns a 63% stake in Delek Logistics Partners (DKL 4.01%), which is worth another $1.71 billion at the current valuation.

Finally, Delek qualifies for small-refinery exemption payments (SREs) from the government, which help small refiners cover their high compliance costs. Those could increase adjusted EBITDA by $375 million to $750 million, depending on the number of SREs granted.

All in all, Delek's management believes the sum of these parts adds up to a stock price that's roughly double where Delek trades today, even after today's surge.

Powering past the 1.4% rise that the S&P 500 has logged from the end of trading last Friday through yesterday's market close, shares of downstream energy specialist Delek U.S. Holdings (DK +2.00%) are ripping higher thanks to the company's recent reporting of strong first-quarter 2026 financial results.

According to data provided by S&P Global Market Intelligence, Delek U.S. Holdings is up 17.5% from the close of last Friday's trading session through the end of yesterdays' trading.

Image source: Getty Images.

The company's optimization plan continues to produce results Beating analysts' expectations that it would report revenue of $2.42 billion, Delek U.S. Holdings reported Q1 2026 sales of $2.65 billion on Wednesday. The bottom of the income statement also surprised investors as the company reported adjusted earnings per share of negative $0.98 -- a narrower loss than the negative $1.62 that analysts had anticipated.

Today's Change

(

2.00

%) $

0.94

Current Price

$

48.01

Management largely credited the strong financial results to the success of the company's Enterprise Optimization Plan (EOP), which, among other things, has helped the company achieve higher distillate and jet fuel yields. It's not merely the recent quarter that has illustrated the success of the EOP. Management announced -- for the sixth time -- higher expectations for how the EOP will improve cash flow, projecting an annual run rate improvement of $220 million.

This refining specialist's stock still has room to run While Delek U.S. Holdings' stock has raced higher this week, investors shouldn't expect a pullback anytime soon. If the EOP continues to deliver benefits and the company's financials keep improving, investors will likely keep bidding the energy stock higher.

Scott Levine has no position in any of the stocks mentioned. The Motley Fool recommends Delek Us. The Motley Fool has a disclosure policy.

Uzi Yemin, Director of Delek US Holdings, Inc. (DK +2.00%), reported an open-market sale of 34,026 shares for a total of ~$1.61 million on May 4, 2026, according to an SEC Form 4 filing.

Transaction summaryMetricValueShares sold (indirect)34,026Transaction value$1.6 millionPost-transaction shares (direct)210,281Post-transaction shares (indirect)447,795Post-transaction value (direct ownership)$10.1 millionTransaction value based on SEC Form 4 reported price ($47.29); post-transaction value based on May 4, 2026, market close ($48.04).

Key questionsWhat is the proportional impact of this sale on Yemin's overall and indirect holdings?
The transaction left Yemin with 447,795 shares held indirectly and 210,281 shares held directly.How was the transaction executed in terms of ownership structure?
All 34,026 shares disposed were held through By Yemin Investments, LP, with no direct shares sold or transferred in this event.Does the trade size reflect a change in selling behavior or capacity?
While the absolute trade size is lower than several prior sales, this is explained by a diminished share base, as Yemin's recent transactions have reduced available inventory.How does the sale align with broader company and market context?
Delek U.S. Holdings, Inc. shares had appreciated 248.4% over the trailing year as of May 4, 2026, providing a favorable environment for scheduled liquidity events under pre-arranged 10b5-1 plans.Company overviewMetricValueRevenue (TTM)$10.73 billionNet income (TTM)($48.5 million)Dividend yield2.22%1-year price change248.4%* 1-year price change calculated using May 4, 2026, as the reference date.

Company snapshotProduces and markets refined petroleum products including gasoline, diesel, aviation fuel, asphalt, and operates convenience retail stores and biodiesel facilities.Operates an integrated downstream energy model with revenue generated from refining, logistics (transportation and storage), and retail fuel sales.Serves oil companies, independent refiners and marketers, distributors, utility and transportation companies, the U.S. government, and independent retail fuel operators.Delek US Holdings, Inc. is a diversified downstream energy company with significant operations in refining, logistics, and retail. The company leverages its network of refineries, pipelines, and convenience stores to deliver a broad range of petroleum-based products across the southern United States.

Its integrated business model enables Delek to capture value at multiple stages of the supply chain, supporting resilience in a cyclical industry and providing flexibility to serve a wide range of wholesale and retail customers.

Today's Change

(

2.00

%) $

0.94

Current Price

$

48.01

What this transaction means for investorsYemin’s $1.6 million share sale involved indirect ownership via By Yemin Investments and was pursuant to a 10b5-1 plan, which is a written contract that allows corporate insiders to buy or sell company stock at predetermined times or amounts, providing a defense against allegations of insider trading. That said, with the stock up nearly 250% over the last year, the move certainly came at a lucrative time for Yemin, who serves as chairman of Delek’s board of directors.

On April 29, the company released its results for the first quarter of 2026, and the stock rose substantially following the report. Delek reported a net loss of $201.3 million or $3.34 per share, adjusted net income of $4.7 million or $0.08 per share, and adjusted EBITDA of $211.7 million, beating analyst estimates.

The company’s “Enterprise Optimization Plan (EOP)” appears to be working, as the company increased its annual run rate cash flow to $220 million from $200 million. The diversified downstream energy company also announced a quarterly dividend of $0.255 per share, which may appeal to income investors.