Oil refining company Delek US Holdings (DK +5.30%) took a turn in the investor spotlight Tuesday. Its equity is soon to become a component of a noted small-cap stock index, and that increased visibility is already making the company more popular. It closed the day more than 5% higher.
1 of a special 600 As part of its regular quarterly rebalancing, S&P Dow Jones Indices -- the unit of S&P Global that manages the popular S&P series of stock market gauges -- announced a series of changes to several indexes.
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Among these is Delek's ascension to the S&P SmallCap 600 index, as part of a group of incoming stocks that includes titles as varied as Boston Beer, The Trade Desk, and Capri Holdings.
The new class displaces from the index such companies as Brinker International -- "graduating" to the S&P MidCap 400 index -- and Cogent Communications.
These changes will become effective prior to market open on Monday, Sept. 21.
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Consider buying, but not for the immediate reason Far more often than not, the price of a stock newly included in a well-known index sees a quick pop following the announcement. That's mainly because it instantly becomes a candidate for inclusion in the portfolios of index funds that constantly trawl instruments like the S&P SmallCap 600 index and its ilk. The increased visibility as an S&P index component doesn't hurt either.
We should bear firmly in mind that such inclusion changes little or nothing about a company's fundamentals. That being said, I feel Delek stock has upside potential, especially given the current state of its small refinery exemptions.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends S&P Global and The Trade Desk. The Motley Fool recommends Boston Beer and Delek US. The Motley Fool has a disclosure policy.
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.
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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.
Key Takeaways Delek US Holdings posted $343.9M in adjusted net income as refining EBITDA jumped to $566.2M.Delek US Holdings expects no refinery turnarounds in 2H26, supporting availability and margin capture.EOP targets at least $220M in annual FCF improvement, while DKL adds recurring distributions. Delek US Holdings (DK - Free Report) has entered the second half of 2026 with strong operating momentum. The company's second-quarter results showed a dramatic improvement in refining profitability, while management's outlook points to continued benefits from high distillate yields, advantaged crude access and improved refinery reliability.
The setup is particularly compelling for investors following the refining space. Peers like Marathon Petroleum (MPC - Free Report) and Valero Energy (VLO - Free Report) also operate large refining businesses, but DK combines refining exposure with a growing midstream platform and an Enterprise Optimization Plan that is designed to structurally improve cash generation.
Q2 Margin Expansion Strengthens the Investment CaseDK's second-quarter results provide a strong foundation for the bullish thesis. Adjusted net income reached $343.9 million, or $5.48 per share, against an adjusted loss of $33.1 million, or 56 cents, in the year-ago period. Adjusted EBITDA increased to $638.7 million from $177.9 million.
Refining was the primary contributor. Segment adjusted EBITDA jumped to $566.2 million from $114.8 million, supported by an average 136% year-over-year increase in benchmark crack spreads.
The company's earnings presentation further highlights the improvement. Net margin increased from $16.35 per barrel in the first quarter to $25.25 in the second quarter, while sequential adjusted EBITDA increased $360.7 million, or 278.7%, excluding the RVO adjustment.
3-Month Share Price Performance: DK, MPC and VLO
Image Source: Zacks Investment Research
Over the three-month period, Delek US Holding gained 59.5%, Marathon Petroleum increased 48.1% and Valero Energy rose 43.5%. The sustained improvement in DK's share price reflects growing investor confidence in its earnings recovery, refining margins and second-half operating outlook.
Favorable Second-Half 2026 Operating SetupThe second-half outlook is one of the strongest elements of DK's current investment story. The company completed the Big Spring refinery turnaround during the first quarter, and management said the facility performed well in the second quarter. Importantly, there are no planned turnarounds for the remainder of 2026.
This should allow DK to maximize refinery availability during a constructive margin environment. Management also highlighted the company's peer-leading distillate and jet-fuel yield and access to advantaged barrels, which support stronger market capture.
DK's third-quarter guidance calls for 284,000-304,000 barrels per day of crude throughput and 296,000-316,000 barrels per day of total throughput, providing a solid operating base for continued performance.
EOP Creates a Structural Cash-Flow CatalystDK's earnings potential is not dependent solely on refining margins. Its Enterprise Optimization Plan (“EOP”) is becoming an increasingly important part of the investment thesis.
The company expects EOP to generate at least $220 million of annual free-cash-flow improvement, with the majority of the benefit coming from margin enhancement across refining, logistics and wholesale operations.
Management said EOP contributed approximately $60 million to the P&L during the second quarter and emphasized that the program has already more than doubled from its initial roughly $100 million target.
This progress is important because it can strengthen DK's cash generation even as market conditions evolve.
DKL Adds Recurring Cash FlowAnother differentiating feature of DK is its ownership of Delek Logistics Partners (DKL). DKL reaffirmed its 2026 adjusted EBITDA guidance of $520-$560 million and is nearing completion of the integrated sour-gas processing, treating and handling solution at the Libby Gas Complex.
DK owns approximately 63% of DKL, while the midstream business is expected to provide roughly $150 million of annual distributions to the former. DKL has also delivered 54 consecutive quarterly distribution increases.
This creates a recurring cash-flow stream alongside DK's refining operations and supports its Sum-of-the-Parts strategy.
DK's Valuation and Estimate Momentum Stand OutDK's 10.46X forward P/E suggests a relatively balanced valuation compared with Marathon Petroleum's 9.61X and Valero Energy's 10.88X.
Image Source: Zacks Investment Research
Although MPC carries the lowest multiple among the three, DK's valuation remains competitive while its earnings outlook is improving rapidly.
The strongest signal comes from analyst estimate revisions. Over the past 60 days, the Zacks Consensus Estimate trend for DK's 2026 earnings increased 98.03%, while the 2027 estimate climbed 140%.
Image Source: Zacks Investment Research
Such substantial upward revisions indicate strengthening analyst confidence in DK's earnings trajectory.
Is DK Stock a Buy?DK's second-quarter results and second-half outlook present a compelling combination of improving profitability, strong refinery availability and growing structural cash-flow potential. The company generated $638.7 million of adjusted EBITDA in the second quarter, while its refining segment produced $566.2 million of adjusted EBITDA. At the same time, EOP is targeting at least $220 million in annual FCF improvement, DKL is generating recurring distributions and management continues to return capital to shareholders through dividends and buybacks. DK repurchased $20 million of stock and paid $15.6 million in dividends during the second quarter.
The comparison with MPC and VLO further highlights DK's competitive positioning. DK offers a differentiated combination of high distillate yield, advantaged crude access, improving refinery reliability and meaningful midstream exposure. With earnings estimates rising sharply and DK sporting a Zacks Rank #1 (Strong Buy), the stock has multiple catalysts working in its favor. DK looks well positioned to capitalize on strong refining conditions in the second half of 2026, making it an attractive Buy for investors seeking compelling earnings momentum and growing free-cash-flow potential. You can see the complete list of today’s Zacks #1 Rank stocks here.
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.
Key Takeaways Delek generated $262.9M in Q2 operating cash flow despite a $137.9M working-capital drag.DK targets at least $220M in annual free-cash-flow improvement from its Enterprise Optimization Plan.Delek ended June with $3.19B of long-term debt as renewable-fuel relief remains uncertain. Delek US Holdings, Inc. (DK - Free Report) is showing better cash generation as refining margins improve and its optimization program gains traction. Second-quarter results also benefited from higher throughput and improved reliability at Big Spring.
The investment case is not one-sided. DK still carries meaningful consolidated leverage, remains exposed to crack-spread volatility and faces uncertainty around renewable-fuel obligations. That mix makes valuation, execution and risk tolerance central to the buy-or-wait decision.
DK’s Cash Flow Story Is Getting StrongerCash provided by operating activities reached $262.9 million in the second quarter, even after $137.9 million of unfavorable working-capital changes. That performance suggests the underlying business converted a favorable operating environment into meaningful cash despite a sizable working-capital drag.
The Enterprise Optimization Plan gives investors another measurable cash-flow target. Management expects the program to deliver at least $220 million of annual free-cash-flow improvement, with most of the gains tied to margin enhancement across refining, logistics and wholesale operations.
Delek’s Valuation Still Looks Competitive
Image Source: Zacks Investment Research
DK trades at a forward price-to-earnings ratio of about 7.1 and a forward 12-month price-to-sales ratio of 0.36. The latter sits well below 1.61 for the Zacks sub-industry and 1.41 for the broader Zacks energy sector.
Those discounts strengthen the value argument, but they should not be read in isolation. Refiners can look inexpensive near periods of high profitability because earnings can fall quickly when crack spreads or crude differentials move against them.
DK’s Catalysts Depend on ExecutionBig Spring has performed better since its first-quarter turnaround, with management citing improved reliability, crude-slate flexibility, product yields, octane and blending capability. Delek also has no planned refinery turnarounds for the rest of 2026, which supports higher system availability.
Delek Logistics is another execution lever. The segment delivered record adjusted EBITDA of $143.5 million in the second quarter, and management reaffirmed 2026 EBITDA guidance of $520-$560 million as its integrated sour-gas solution moves closer to completion.
Delek Still Faces Refining and Regulatory RisksRefining remains the biggest source of variability. DK’s benchmark crack spreads rose 136% year over year in the second quarter as refining adjusted EBITDA climbed to $566.2 million from $114.8 million, underscoring how quickly earnings can change with market conditions.
Image Source: Delek US Holdings, Inc.
That industry sensitivity is visible elsewhere. Valero Energy Corporation (VLO - Free Report) reported second-quarter 2026 refining operating income of $4.5 billion amid stronger refining economics. Marathon Petroleum Corporation (MPC - Free Report) reported $6.7 billion of Refining & Marketing adjusted EBITDA and said higher crack spreads were the primary driver.
Balance-sheet and regulatory risks add another layer. Delek ended June with $3.19 billion of consolidated long-term debt and $2.56 billion of consolidated net debt. Second-quarter adjusted EBITDA also included a $148.6 million benefit from a 50% Renewable Volume Obligation adjustment, while the timing and outcome of additional small-refinery relief remain uncertain.
DK’s Strong Buy Signal Supports the Bull CaseDK’s improving cash generation, low valuation and better refinery reliability support a constructive investment case, but the stock remains best suited to investors comfortable with refining-cycle swings and regulatory uncertainty.
The stock currently sports a Zacks Rank #1 (Strong Buy), along with a Value Score of A, Growth Score of A and VGM Score of A. Those readings align with favorable value and growth characteristics and are strongest when paired with a top Zacks Rank.
The Momentum Score of C is less supportive, signaling that the stock’s momentum profile is not as favorable as its value and growth profiles. Even so, the combination of a top Zacks Rank and A-rated Value, Growth and VGM Scores keeps the bull case intact without eliminating the need for discipline around cycle risk. You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Takeaways Delek US benefited from a 196.9% year-over-year jump in second-quarter refining margin.Delek US has no planned refinery turnarounds for the rest of 2026, supporting market capture.Delek Logistics delivered its best quarterly result in company history, with adjusted EBITDA near $144M. Delek US Holdings, Inc. (DK - Free Report) is a diversified downstream energy company with operations across petroleum refining, logistics, pipelines and renewable fuels. Its refining portfolio includes facilities in Texas, Arkansas and Louisiana, with combined nameplate crude throughput capacity of 302,000 barrels per day. The company also owns a controlling interest in Delek Logistics Partners, LP (DKL - Free Report) , giving investors exposure to both refining and midstream operations.
Delek US’ shares have surged 189.2% over the past year, significantly outperforming the 87.7% gain for the Oil and Gas-Refining and Marketing sub-industry and the 38.1% advance for the broader Oil-Energy sector. This strong outperformance highlights the company's robust share price momentum relative to its industry and broader sector.
DK Stock Outpaces Its Sub-Industry and Sector
Image Source: Zacks Investment Research
The consensus estimates for DK’s 2026 and 2027 earnings have risen 92.02% and 95.29%, respectively, over the past 60 days. These upward revisions reflect increasing analyst confidence in the company’s earnings growth potential.
Image Source: Zacks Investment Research
DK stock has become a standout performer in the energy space as stronger refining conditions, improved operating execution and strategic initiatives have translated into significant earnings growth. With the company entering the second half of 2026 with its full refining system online, investors are increasingly focusing on the potential for further cash-flow improvement and value creation.
Why Delek US Stock Looks AttractiveStrong Improvement in Profitability: Delek US delivered a sharp improvement in second-quarter profitability, with adjusted net income of $343.9 million, or $5.48 per share, versus an adjusted loss in the prior-year period. Adjusted EBITDA reached $638.7 million, showing the stronger earnings power generated by improved operating conditions.
Stronger Refining Margins: DK benefited from a much stronger refining margin environment. Second-quarter refining margin increased $469.2 million, or 196.9%, year over year, while benchmark crack spreads rose materially across the system. This improvement provided a substantial lift to refining profitability and supported stronger overall financial performance.
High Distillate Yield and Advantaged Crude: DK has an attractive refining configuration because of its high distillate yield and access to advantaged crude. Management said these capabilities are important for maintaining operational flexibility and capturing market opportunities, while the presentation highlighted peer-leading distillate yield and advantaged barrels as drivers of superior market capture.
Improved Big Spring Performance: DK can benefit from the improved performance of the Big Spring refinery after completing its turnaround safely, on schedule and on budget. Management reported better reliability, greater crude slate flexibility, improved product yields and higher octane and blending capabilities, supporting stronger throughput and market capture from the asset.
Limited Refinery Maintenance: DK enters the second half of 2026 with no planned refinery turnarounds for the remainder of the year. Management said the full refining system is therefore well positioned to capture strength in the market. The presentation also noted limited maintenance activity, giving the company more operating availability during the current margin environment.
Enterprise Optimization Plan Benefits: DK has a meaningful opportunity to improve free cash flow through its Enterprise Optimization Plan. The company targets at least $220 million of annualized cash flow improvement, while management estimated about $60 million of contribution to the income statement during the second quarter and said additional enhancements are being developed.
Record Logistics Performance: Delek US is supported by a strong logistics contribution, with the Logistics segment delivering its best quarterly result in company history. Adjusted EBITDA was approximately $143.5 million, or about $144 million on the earnings call, as momentum continued across crude, gas and water offerings in the Permian Basin.
Growing Logistics Value: Delek US could benefit from the continued strengthening and economic separation of its logistics business. Delek Logistics reaffirmed 2026 adjusted EBITDA guidance of $520 million to $560 million, while management expects third-party EBITDA to exceed 80% on a pro forma basis, supporting the Sum of the Parts strategy and progress toward deconsolidation.
Healthy Throughput Outlook: Delek US has a visible near-term throughput framework for its refining system. Management expects third-quarter total throughput of 296,000-316,000 barrels per day, with guidance provided for each of its four refineries. This outlook, combined with limited maintenance, supports the company's ability to operate its full system during the current market environment.
Improving Financial Flexibility: Delek US is strengthening its financial position through debt management. During the second quarter, the company refinanced the term loan and reduced it from $920 million to $850 million. On a stand-alone basis excluding Delek Logistics, Delek US net debt declined by $72 million, reflecting the term-loan paydown and supporting greater financial flexibility.
Verdict for DK Stock DK delivered a significant improvement in profitability, supported by stronger refining margins, a high distillate yield, access to advantaged crude and improved performance at its Big Spring refinery. With no planned refinery turnarounds for the remainder of 2026, healthy throughput expectations and limited maintenance should allow the company to capitalize on favorable market conditions, while its Enterprise Optimization Plan targets at least $220 million in annualized cash flow improvements.
Delek US’ Logistics segment, which includes the majority-owned Delek Logistics, also delivered record results, with growing third-party EBITDA and continued momentum supporting its Sum of the Parts strategy, while debt reduction is improving financial flexibility. 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.
Key PicksInvestors interested in the energy sector might consider some better-ranked stocks, such as Par Pacific (PARR - Free Report) sporting a Zacks Rank #1 (Strong Buy), and Oceaneering International (OII - Free Report) , carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Par Pacific is valued at $4.03 billion. It is a diversified energy company that owns and operates petroleum refineries, logistics assets and retail fuel businesses across the United States. Par Pacific focuses on refining, transporting and marketing fuel products while serving regional markets with reliable energy solutions.
Oceaneering International is valued at $5.29 billion. It is a global technology and engineering company. Oceaneering International provides subsea robotics, offshore services, engineered products and advanced solutions to the energy, defense, aerospace and other industries.
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.
Can DICK'S Turn Foot Locker Into a Winner?Delek US NYSE: DK reported second-quarter 2026 net income of approximately $170 million, or $2.71 per share, as stronger refining margins, improved throughput and record logistics results supported performance.
On an adjusted basis, the company posted net income of about $344 million, or $5.48 per share, and adjusted EBITDA of approximately $639 million. Excluding a 50% renewable volume obligation, or RVO, adjustment, adjusted EBITDA was about $490 million and adjusted earnings were $3.64 per share, according to Executive Vice President and CFO Robert Wright.
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3 Refiners Benefiting From Oil Volatility and Tight Fuel SupplyPresident and CEO Avigal Soreq said the company navigated volatility in crude and product markets during the quarter while continuing to focus on reliability, cash-flow generation and disciplined capital allocation.
Refining performance and market outlook Wright said quarter-over-quarter EBITDA improvement was led by stronger refining margins and higher throughput following the completion of the Big Spring refinery turnaround. Soreq said Big Spring has performed in line with expectations since the turnaround, with improved reliability, greater crude-slate flexibility, better product yields and increased octane and blending capability.
Dick’s Sporting Goods Isn’t Done Winning YetDelek has no planned refinery turnarounds for the remainder of 2026, Soreq said, positioning its system to participate in favorable market conditions.
Management pointed to steep backwardation, shifting crude differentials and tight transportation-fuel markets as important factors in the refining environment. Soreq said the company believes access to crude supplies, high distillate yields and the ability to respond quickly to market changes are important advantages.
During the question-and-answer session, Soreq said global refined-product markets remain affected by capacity outages and that normalization could take several quarters after current market disruptions end. He also cited Delek’s access to Gulf Coast and Midcontinent markets, domestic crude availability and high distillate and jet fuel yields as favorable characteristics.
On refining margin capture, Soreq said a decline in market backwardation should benefit realized crack spreads. He described the current forward curve as relatively flat compared with the significantly steeper backwardation seen during the second quarter.
For the third quarter, Delek guided to total refining-system throughput of 296,000 to 316,000 barrels per day. By refinery, the company expects:
Tyler throughput of 72,000 to 77,000 barrels per day; El Dorado throughput of 78,000 to 83,000 barrels per day; Big Spring throughput of 68,000 to 73,000 barrels per day; and Krotz Springs throughput of 78,000 to 83,000 barrels per day. The company also forecast third-quarter operating expenses of $220 million to $230 million, general and administrative expenses of $50 million to $55 million, and depreciation and amortization expense of $110 million to $120 million.
Optimization efforts and logistics growth Soreq said Delek’s Enterprise Optimization Plan, or EOP, contributed an estimated $60 million to second-quarter profit and loss. The program is intended to increase annual cash flow by at least $220 million on a run-rate basis.
Management said it is pursuing another phase of optimization initiatives, though it did not provide details. Soreq described EOP as an ongoing effort across the organization rather than a one-time project. Mohit Bhardwaj, Delek’s executive vice president of New Energy, Strategy and Investor Relations, said the company’s confidence in its mid-cycle free-cash-flow profile has increased.
Delek Logistics Partners delivered approximately $144 million in adjusted EBITDA, its best quarterly result in company history, Wright said. Performance was supported by momentum across its Permian Basin crude, natural gas and water businesses.
Delek Logistics reaffirmed its 2026 EBITDA guidance of $520 million to $560 million. Soreq said the partnership expects third-party EBITDA to exceed 80% on a pro forma basis during 2026, a metric that management views as central to its strategy to further separate the logistics business economically from Delek US.
Mark Hobbs, executive vice president of Delek Logistics Partners, said the Libby I and Libby II gas plants are operating well and that the company is nearing completion of a sour-gas gathering and compression system. The facilities and associated acid-gas injection well are intended to provide a sour-gas solution in the Northern Delaware Basin and support increased gas volumes through the remainder of the year.
Cash flow, debt reduction and shareholder returns Cash flow from operations totaled $263 million in the second quarter, including a $138 million net working-capital outflow. Investing activities used $176 million, including $61 million of capital purchases at Delek Logistics, primarily for growth projects, and $55 million of refining capital purchases.
Financing activities represented an $82 million outflow. Delek reduced its term loan from $920 million to $850 million through a refinancing and paydown, while standalone net debt, excluding Delek Logistics, declined by $72 million during the quarter, Wright said.
The company paid approximately $16 million in dividends and repurchased about $20 million of shares during the quarter. Soreq said Delek intends to maintain its dividend through the cycle and balance additional cash deployment between debt reduction and share repurchases.
Small refinery exemptions Management also discussed small refinery exemptions under the Renewable Fuel Standard. Soreq said elevated RVO costs have created a burden for qualifying small refineries and that the company expects the Environmental Protection Agency to continue providing relief for 2025 and beyond.
Bhardwaj said Delek’s recently granted Krotz Springs exemption reflected findings by the EPA and Department of Energy that the refinery faced disproportionate economic harm from Renewable Fuel Standard obligations. He said the company is encouraged by the strength of its 2025 petitions but did not provide timing or financial guidance for potential awards.
Management emphasized that any RIN-related proceeds would represent the return of costs previously incurred to remain in compliance, rather than new cash provided by another party. Delek said it would continue its existing capital-allocation approach and does not intend to hold excess cash solely for the purpose of maintaining a larger balance-sheet cash position.
About Delek US (NYSE:DK)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.
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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.
On August 05, 2026, Delek US Holdings Inc DK shares fell 9.7% to $59.75, significantly impacted by a broader market trend and company-specific challenges. The stock has seen a 52-week range of $19.81 to $68.93, indicating notable volatility over the past year.
GF Value™ verdict: Current price is $59.75 vs GF Value of $20.51, indicating a 191.3% overvaluation.GF Score™: 47/100, suggesting average performance relative to the market.Most notable signal: Insiders sold $1.8M in the last 3 months without any buying activity.Is DK Overvalued or Undervalued?Given the current price of $59.75 and the GF Value™ estimate of $20.51, it is evident that Delek US Holdings Inc is significantly overvalued, with a margin of safety of 191.3%. The GF Value™ represents GuruFocus' intrinsic value assessment based on historical trading multiples, past growth trajectories, and future performance forecasts. This extreme reading serves as a directional warning for potential investors, particularly in the context of DK's unprofitability and negative cash flow, which make traditional earnings-based valuations like P/E less applicable.
The GF Valuation label classifies DK as "Significantly Overvalued." This classification underscores the risks associated with current valuations, suggesting that the stock price may not be sustainable given the company's financial performance and market environment.
How Does DK's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)6.8x6.7xComparing DK's current forward P/E of 6.8x to its 5-year median P/E of 6.7x shows that the stock is trading slightly above its historical average. This P/E analysis aligns with the GF Value™ verdict of overvaluation, reinforcing concerns about the sustainability of DK's current market price.
What Does DK's GF Score™ Tell Us?The GF Score™ evaluates a stock's performance based on various factors, including financial strength, profitability, growth potential, valuation, and momentum. DK's score of 47/100 reflects an average standing, with its strongest sub-rank in profitability and its weakest in growth and valuation.
MetricRatingGF Score™47Financial Strength4/10Profitability6/10Growth1/10Valuation1/10Momentum3/10Overall, DK's score indicates that while the company maintains a moderate level of profitability, its financial strength is below average, and it faces significant challenges in growth and valuation metrics. This disparity suggests that DK may struggle to sustain its current price levels amidst ongoing operational difficulties.
What Are Gurus and Insiders Doing with DK?Currently, 7 gurus hold positions in DK, with 2 increasing their stakes and 5 trimming their holdings in recent quarters. This mixed activity reflects a cautious sentiment among institutional investors regarding DK's future prospects.
Furthermore, insider activity shows a concerning trend, with insiders selling $1.8M worth of shares in the last three months and no buying activity reported. This lack of confidence from those closest to the company could signify deeper issues and suggests that even those with intimate knowledge of Delek US Holdings Inc are wary of its current valuation and operational outlook.
What This Means for InvestorsIn summary, Delek US Holdings Inc appears to be significantly overvalued according to GF Value™, which suggests that the current price of $59.75 is not justified given the company's financial performance and market conditions. With a concerning insider selling trend and a low GF Score™, potential investors should approach this stock with caution. For further details on the stock’s performance, visit the Delek US Holdings Inc DK stock page, and consider exploring the GF Value™ page for more insights.
Frequently Asked QuestionsWhat is DK's GF Score™?
DK has a GF Score™ of 47/100, indicating average performance relative to other stocks in the market.
Is DK overvalued or undervalued?
DK is considered significantly overvalued, with a GF Value™ of $20.51 compared to the current price of $59.75.
What is DK's P/E ratio?
DK's forward P/E ratio is 6.8x, which is slightly above its 5-year median P/E of 6.7x, indicating it is trading at a higher valuation than historical averages.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Delek US Holdings (DK - Free Report) reported $4.09 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 47.8%. EPS of $5.48 for the same period compares to -$0.56 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $3.03 billion, representing a surprise of +34.83%. The company delivered an EPS surprise of +147.96%, with the consensus EPS estimate being $2.21.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Delek US Holdings performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Total throughput (average bpd) - Total Refining: 315,555.00 BBL/D compared to the 305,149.50 BBL/D average estimate based on four analysts.Total Throughput Capacity Per Day - Tyler, TX Refinery: 77,887.00 BBL/D compared to the 75,199.22 BBL/D average estimate based on four analysts.Tyler, TX Refinery - Per barrel of throughput - Tyler refining production margin: $23.3 million versus the four-analyst average estimate of $19.13 million.Total refining production margin per bbl total throughput: $19.84 versus $15.86 estimated by four analysts on average.Total Throughput Capacity Per Day - Big Spring, TX Refinery: 70,137.00 BBL/D versus 67,771.98 BBL/D estimated by four analysts on average.Total Throughput Capacity Per Day - Krotz Springs, LA Refinery: 83,025.00 BBL/D compared to the 81,088.97 BBL/D average estimate based on four analysts.El Dorado, AR Refinery - Per barrel of throughput - El Dorado refining production margin: $16.4 million versus $14.07 million estimated by four analysts on average.Big Spring, TX Refinery - Per barrel of throughput - Big Spring refining production margin: $20.47 million versus the four-analyst average estimate of $15.68 million.Total Throughput Capacity Per Day - El Dorado, AR Refinery: 84,506.00 BBL/D versus the four-analyst average estimate of 81,089.31 BBL/D.Total Revenues- Logistics: $384.7 million versus $296.9 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +56.1% change.Total Revenues- Corporate, Other and Eliminations: $-353.7 million compared to the $-240.47 million average estimate based on three analysts. The reported number represents a change of +78.1% year over year.Total Revenues- Refining: $4.06 billion versus $2.96 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +49.3% change.View all Key Company Metrics for Delek US Holdings here>>>
Shares of Delek US Holdings have returned +26.5% over the past month versus the Zacks S&P 500 composite's +3.5% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term.
Published in earnings earnings-estimates-revisions earnings-surprise
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.
Delek US (NYSE:DK – Get Free Report) is expected to post its Q2 2026 results before the market opens on Wednesday, August 5th. Analysts expect the company to post earnings of $2.67 per share and revenue of $3.4409 billion for the quarter. Interested persons are encouraged to explore the company’s upcoming Q2 2026 earning summary page for the latest details on the call scheduled for Wednesday, August 5, 2026 at 11:00 AM ET.
Delek US Stock Down 2.9% DK opened at $65.92 on Tuesday. The company has a debt-to-equity ratio of 10.51, a quick ratio of 0.49 and a current ratio of 0.76. The company has a market cap of $4.04 billion, a price-to-earnings ratio of -72.44, a PEG ratio of 1.79 and a beta of 0.58. Delek US has a one year low of $19.81 and a one year high of $68.93. The business’s fifty day moving average is $52.88 and its two-hundred day moving average is $43.97.
Delek US Announces Dividend The company also recently declared a quarterly dividend, which will be paid on Monday, August 10th. Stockholders of record on Monday, August 3rd will be paid a dividend of $0.255 per share. This represents a $1.02 annualized dividend and a dividend yield of 1.5%. The ex-dividend date of this dividend is Monday, August 3rd. Delek US’s payout ratio is -112.09%.
Insider Buying and Selling at Delek US In other news, Director Laurie Z. Tolson sold 4,921 shares of Delek US stock in a transaction on Monday, May 18th. The stock was sold at an average price of $46.30, for a total value of $227,842.30. Following the completion of the sale, the director owned 18,226 shares of the company’s stock, valued at $843,863.80. The trade was a 21.26% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Reuven Spiegel sold 10,000 shares of Delek US stock in a transaction on Monday, May 18th. The shares were sold at an average price of $44.36, for a total value of $443,600.00. Following the completion of the sale, the executive vice president directly owned 48,372 shares of the company’s stock, valued at approximately $2,145,781.92. This represents a 17.13% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 39,270 shares of company stock valued at $1,828,718. 3.56% of the stock is owned by corporate insiders.
Institutional Trading of Delek US Hedge funds have recently added to or reduced their stakes in the business. Cibc World Market Inc. acquired a new stake in Delek US during the 4th quarter worth approximately $234,000. Northwestern Mutual Wealth Management Co. lifted its position in Delek US by 17,347.8% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 8,026 shares of the oil and gas company’s stock valued at $238,000 after buying an additional 7,980 shares in the last quarter. CIBC Bancorp USA Inc. purchased a new stake in Delek US during the third quarter worth approximately $205,000. Mackenzie Financial Corp purchased a new stake in Delek US during the third quarter worth approximately $239,000. Finally, Victory Capital Management Inc. acquired a new stake in shares of Delek US in the third quarter worth $216,000. 97.01% of the stock is owned by institutional investors and hedge funds.
Wall Street Analyst Weigh In Several equities research analysts recently commented on the stock. JPMorgan Chase & Co. boosted their price objective on shares of Delek US from $57.00 to $62.00 and gave the stock a “neutral” rating in a research report on Tuesday, July 14th. Citigroup upped their price target on shares of Delek US from $33.00 to $44.00 and gave the company a “neutral” rating in a report on Monday, April 13th. UBS Group increased their price target on shares of Delek US from $42.00 to $48.00 and gave the company a “neutral” rating in a research report on Friday, April 10th. Mizuho raised their price objective on shares of Delek US from $54.00 to $60.00 and gave the stock an “outperform” rating in a research note on Wednesday, May 27th. Finally, Zacks Research upgraded Delek US from a “hold” rating to a “strong-buy” rating in a research report on Friday, June 26th. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, six have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $51.92.
Check Out Our Latest Stock Report on DK
Delek US Company Profile (Get 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.
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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).
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The Zacks Oil and Gas - Refining & Marketing industryis benefiting from tight fuel supplies, steady transportation demand and improving earnings expectations. Refiners with flexible operations, diverse crude access and strong logistics networks are well positioned to capture favorable margins as global trade flows shift. Investments in renewable diesel, sustainable aviation fuel and efficiency projects also provide additional growth avenues. Regulatory costs, maintenance spending and commodity-price volatility remain risks, but the overall outlook is encouraging. The industry ranks in the top 8% of Zacks industries and trades at an attractive valuation. Against this favorable backdrop, Delek US Holdings (DK - Free Report) , PBF Energy (PBF - Free Report) and Valero Energy (VLO - Free Report) appear well positioned to capitalize on the industry's supportive trends.
Industry Overview The Zacks Oil and Gas - Refining & Marketing industry consists of companies involved in selling refined petroleum products (including heating oil, gasoline, jet fuel, residual oil, etc.) and a plethora of non-energy materials (like asphalt, road salt, clay and gypsum). Some companies operate refined product terminals, storage facilities and transportation services. The primary activity of these firms involves buying crude/other feedstocks and processing them into a wide variety of refined products. Refining margins are extremely volatile and generally reflect the state of petroleum product inventories, demand for refined products, imports, regional differences and capacity utilization in the industry. Other major determinants of refining and marketing profitability are the light/heavy and sweet/sour spreads. Oil and gas refiners are also prone to unplanned outages.
3 Trends Defining the Oil and Gas - Refining & Marketing Industry's Future Tight Fuel Supply: Global refining capacity has remained tight, while fuel inventories in several markets are below normal levels. At the same time, demand for transportation fuels has stayed resilient despite market volatility. When supply struggles to keep pace with consumption, refiners often benefit from stronger margins on gasoline, diesel and jet fuel. Export demand can also rise as regions with limited refining capacity depend on imported products. If these conditions continue, refining and marketing companies should enjoy a supportive pricing environment and improved cash generation.
Flexible Refineries: Oil markets are becoming more unpredictable due to geopolitical events and changing trade flows. This increases the value of refineries that can process different grades of crude oil and quickly adjust their product mix based on market demand. Facilities with strong logistics networks and access to multiple crude sources are generally better equipped to manage supply disruptions and capture higher-value opportunities. As global energy markets remain dynamic, operational flexibility is becoming a more important competitive advantage for the refining and marketing industry.
Cleaner Fuels Create New Growth Opportunities: The refining industry is evolving beyond traditional fuels. Demand for renewable diesel, sustainable aviation fuel and other lower-carbon products is encouraging refiners to upgrade existing facilities instead of building entirely new ones. Many companies are also investing in projects that improve efficiency, reduce emissions and expand access to emerging fuel markets. This gradual shift allows refiners to serve both conventional and cleaner energy demand, creating additional revenue opportunities while helping the industry stay relevant as environmental regulations become stricter.
Rising Costs and Policy Risks: The refining business remains highly exposed to factors outside its control. Higher compliance costs, stricter environmental rules, inflation, expensive maintenance work and sudden regulatory changes can all squeeze margins. In addition, unexpected refinery outages or sharp swings in crude oil and fuel prices may disrupt operations and reduce profitability. If these challenges occur alongside weaker fuel demand or slower economic growth, refining and marketing companies could face pressure on earnings despite maintaining stable production levels.
Zacks Industry Rank Indicates Positive Outlook The Zacks Oil and Gas - Refining & Marketing is a 16-stock group within the broader Zacks Oil - Energy sector. The industry currently carries a Zacks Industry Rank #19, which places it in the top 8% of 247 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates fairly strong near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
The industry’s position in the top 50% of the Zacks-ranked industries is a result of improving earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are becoming optimistic about this group’s earnings growth potential. As a matter of fact, the industry’s earnings estimates for 2026 have gone up 102.8% in the past year.
Considering the encouraging dynamics of the industry, we will present a few stocks that you may want to consider for your portfolio. But it’s worth taking a look at the industry’s shareholder returns and current valuation first.
Industry Outperforms Sector & S&P 500 The Zacks Oil and Gas - Refining & Marketing industry has fared better than the broader Zacks Oil - Energy Sector as well as the Zacks S&P 500 composite over the past year.
The industry has gone up 60.9% over this period compared with the broader sector’s increase of 26.9%. Meanwhile, the S&P 500 has gained 18.7%.
One-Year Price Performance
Industry's Current Valuation Since oil and gas companies are debt-laden, it makes sense to value them based on the EV/EBITDA (Enterprise Value/ Earnings before Interest, Tax, Depreciation and Amortization) ratio. This is because the valuation metric takes into account not just equity but also the level of debt. For capital-intensive companies, EV/EBITDA is a better valuation metric because it is not influenced by changing capital structures and ignores the effect of noncash expenses.
On the basis of the trailing 12-month enterprise value-to EBITDA (EV/EBITDA), the industry is currently trading at 6.25X, significantly lower than the S&P 500’s 18.24X. It is also below the sector’s trailing 12-month EV/EBITDA of 6.74X.
Over the past five years, the industry has traded as high as 6.42X and as low as 1.77X, with a median of 3.63X, as the chart below shows.
Trailing 12-Month Enterprise Value-to-EBITDA (EV/EBITDA) Ratio (Past Five Years)
3 Stocks to Buy Delek US Holdings: Delek US Holdings is a diversified downstream energy company with refining, logistics and marketing operations across the United States. Through its refining assets and Delek Logistics partnership, the Zacks Rank #1 (Strong Buy) company serves fuel markets while expanding third-party midstream services. Its strategy combines operational improvements, disciplined capital allocation and logistics integration to strengthen cash generation.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The company continues advancing its Enterprise Optimization Plan to improve margins, reduce costs and enhance free cash flow. It is also increasing the contribution from its midstream business while investing in refinery reliability, crude flexibility and higher-value product yields. Management remains focused on balanced capital allocation, operational execution and creating sustainable long-term shareholder value.
The Zacks Consensus Estimate for 2026 earnings of DK indicates 25.9% growth. It beat the Zacks Consensus Estimate for earnings in each of the last four quarters, with the average being 215.8%. The company’s shares have increased 174.3% in a year.
Price and Consensus: DK
PBF Energy: PBF Energy is an independent petroleum refiner with operations spanning the East Coast, Mid-Continent, Gulf Coast and West Coast. Its refining network supplies transportation fuels to major regional markets, while investments in logistics and renewable fuels broaden its operating platform. The company also focuses on maintaining safe, reliable operations and improving the efficiency of its refining assets.
PBF continues to strengthen its portfolio through disciplined capital spending, refinery upgrades and operational improvement programs. Management remains focused on restoring full refining capabilities, enhancing asset reliability and maintaining a resilient balance sheet. The Zacks #1 Ranked company also expects renewable fuels, refining optimization and prudent capital allocation to support long-term value creation across different commodity price environments.
PBF Energy’s expected EPS growth rate for three to five years is currently 56%, which compares favorably with the industry's growth rate of 30.7%. The company beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed in the other, the average being 113.3%. Shares of the company have gained 147.6% in a year.
Price and Consensus: PBF
Valero Energy: Valero Energy is one of the world's largest independent refiners, producing transportation fuels while also expanding its renewable diesel and ethanol businesses. Its integrated refining, wholesale and logistics network gives the company flexibility to optimize feedstocks, serve export markets and adapt to changing fuel demand. The Zacks Rank #2 (Buy) company also continues to invest in projects that improve efficiency, expand margins and lower carbon intensity.
Valero operates a high-complexity refining system supported by disciplined capital allocation and a strong balance sheet. Its focus remains on operational excellence, system-wide optimization and shareholder returns. Alongside traditional refining, Valero is growing its low-carbon fuels platform through renewable diesel, sustainable aviation fuel and ethanol projects, helping diversify earnings while strengthening its long-term competitive position.
Valero Energy has a market capitalization of more than $90 billion. VLO beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 28%. The Zacks Consensus Estimate for Valero’s 2026 earnings per share indicates 243.6% year-over-year growth. Shares of VLO have gained 114.4% in a year.
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.
Here are three stocks with buy rank and strong value characteristics for investors to consider today, July 24:
Delek US Holdings, Inc. (DK - Free Report) : This integrated downstream energy company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing by 29.1% over the last 60 days.
Delek US Holdings has a price-to-earnings ratio (P/E) of 10.35 compared with 22.85 for the S&P. The company possesses a Value Scoreof A.
PBF Energy Inc. (PBF - Free Report) : This petroleum refining company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing by 56.5% over the last 60 days.
PBF Energy has a price-to-earnings ratio (P/E) of 5.88 compared with 22.85 for the S&P. The company possesses a Value Score of B.
Hudson Pacific Properties, Inc. (HPP - Free Report) : This real estate investment trust carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its next year earnings increasing 3.9% over the last 60 days.
Hudson has a price-to-earnings ratio (P/E) of 13.46 compared with 14.20 for the industry. The company possesses a Value Score of A.
See the full list of top ranked stocks here.
Learn more about the Value 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.
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.
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.
BRENTWOOD, Tenn.--(BUSINESS WIRE)--Delek US Holdings, Inc. (NYSE: DK) (“Delek US”) today announced that the Company intends to issue a press release summarizing second quarter 2026 results before the U.S. stock market opens on Wednesday, August 5, 2026. A conference call to discuss these results is scheduled to begin at 10:00 a.m. CT (11:00 a.m. ET) on Wednesday, August 5, 2026.
The live broadcast of this conference call will be available online by going to www.DelekUS.com and clicking on the investor relations section of the website. A presentation containing supplemental financial information will also be available online at ir.delekus.com prior to the conference call and webcast. The Company does not intend to furnish this presentation on a Current Report on Form 8-K. Investors are encouraged to review the presentation in conjunction with the Company’s earnings press release and webcast. The online replay will be available on the website for 90 days.
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 as of June 30, 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).
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.
Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, July 1:
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 44% over the last 60 days.
Delek US Holdings' shares gained 13.5% over the last three months compared with the S&P 500’s decline of 13.2%. The company possesses a Momentum Score of A.
Citizens Financial Services, Inc. (CZFS - Free Report) : This bank holding company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.4% over the last 60 days.
Citizens Financial Services’ shares gained 15.0% over the last three months compared with the S&P 500’s decline of 13.1%. The company possesses a Momentum Score of B.
Alliance Laundry Holdings Inc. (ALH - Free Report) : This commercial laundry systems company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 10.3% over the last 60 days.
Alliance Laundry Holdings ’ shares gained 24.2% over the last three months compared with the S&P 500’s decline of 13.2%. The company possesses a Momentum Score of B.
See the full list of top ranked stocks here
Learn more about the Momentum score and how it is calculated 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.
(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.
Here are three stocks with buy rank and strong value characteristics for investors to consider today, July 1:
Industrial Logistics Properties Trust (ILPT - Free Report) : This real estate investment trust carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing by 6.4% over the last 60 days.
Industrial Logistics Properties has a price-to-earnings ratio (P/E) of 6.99 compared with 13.90 for the industry. The company possesses a Value Scoreof A.
Cenovus Energy Inc. (CVE - Free Report) : This integrated energy company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing by 38.2% over the last 60 days.
Cenovus Energy has a price-to-earnings ratio (P/E) of 7.92 compared with 8.60 for the industry. The company possesses a Value Score of A.
Delek US Holdings, Inc. (DK - Free Report) : This integrated downstream energy company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its next year earnings increasing 44% over the last 60 days.
Delek US Holdings has a price-to-earnings ratio (P/E) of 9.79 compared with 12.60 for the industry. The company possesses a Value Score of A.
See the full list of top ranked stocks here.
Learn more about the Value score and how it is calculated here.
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
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Current Price
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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.
Key Takeaways DK and MPC are both refining players, but they offer a different blend of scale and operational strategy.Marathon Petroleum is expanding jet fuel, LPG and MPLX projects to support long-term growth.DK's improving operational performance create opportunities, but regulatory and market risks remain. Delek US Holdings, Inc. (DK - Free Report) and Marathon Petroleum Corporation (MPC - Free Report) represent two distinct investment opportunities within the Oil and Gas - Refining and Marketing industry, each offering a different blend of scale, growth potential and operational strategy. While both companies are involved in refining, transportation and marketing of petroleum products, the similarities largely end there. Marathon Petroleum is the largest independent refiner in the United States, backed by an expansive refining footprint and substantial midstream assets that provide scale and stability. Delek, on the other hand, operates on a much smaller scale but has attracted attention through targeted efficiency initiatives and operational improvements aimed at enhancing profitability.
For investors evaluating exposure to the downstream energy space, understanding how Delek and Marathon Petroleum compare in terms of business strength, growth prospects, financial performance and shareholder returns is essential. Let’s examine the strengths, challenges and investment appeal of both companies to determine which stock may be better suited for investors today.
The Case for Delek StockDelek entered 2026 with improving operational performance and growing cash flow potential. Its strengths in refining and logistics create opportunities, though regulatory and market risks remain key challenges.
Delek’s strong operational momentum was highlighted by the successful completion of the Big Spring refinery turnaround, which was executed on time and within budget and is expected to enhance reliability, boost product yields and increase margin capture. Another key differentiator is the company’s Enterprise Optimization Plan (EOP), whose annual run-rate target was raised for the sixth consecutive time to at least $220 million. The initiative has already generated meaningful earnings improvements through stronger margins, lower costs and enhanced logistics performance. In addition, Delek has one of the highest diesel and jet fuel yields among its peers and enjoys direct access to multiple domestic crude sources through its integrated logistics network, providing a competitive advantage in volatile market conditions. The company’s midstream segment, Delek Logistics (DKL), also helps to diversify earnings and support shareholder returns.
In the near past, the global supply disruptions and elevated product prices also supported Delek’s refining margins as it has strong crude access and distillate yields. With no major turnarounds planned for the remainder of 2026, the company is positioned to maximize free cash flow generation and capitalize on stronger seasonal demand. Growth projects in the Permian Basin, including sour gas gathering and acid gas injection infrastructure, provide additional long-term expansion opportunities. Furthermore, Delek’s ongoing deconsolidation and value-unlocking initiatives could help narrow the gap between intrinsic asset value and market valuation.
Despite these positives, Delek remains exposed to refining margin volatility, fluctuating crude and product prices, and broader macroeconomic conditions. Regulatory uncertainty surrounding Renewable Fuel Standard (RFS) compliance and Small Refinery Exemptions (SREs) could significantly impact profitability. Delek also faces operational risks from weather disruptions, maintenance activities and changes in fuel demand, making continued execution of its optimization strategy critical to sustaining performance.
The Case for Marathon Petroleum StockMarathon Petroleum’s strengths are rooted in its integrated business model, strong cash generation, operational excellence and strategic investments that support long-term growth and shareholder value creation.
In the first quarter, Marathon Petroleum generated $1.7 billion in operating cash flow excluding working capital and delivered strong results despite completing 40% of its planned annual turnaround activity. Its refining system operated at 89% utilization, reflecting strong operational execution, commercial optimization and effective management of market volatility. These capabilities enabled MPC to capitalize on favorable refining margins and maintain profitability across key operating regions.
A key differentiator of the company is the stability provided by its midstream subsidiary, MPLX. The business continues to generate substantial and predictable cash flows, reducing earnings volatility and strengthening MPC’s through-cycle performance. Management expects MPLX distributions to cover MPC’s standalone capital spending and dividend requirements, creating additional flexibility for shareholder returns. The company reinforced this commitment by returning more than $1 billion to shareholders during the quarter and authorizing an additional $5 billion share repurchase program. This disciplined capital-return strategy highlights management’s confidence in the durability of future cash flows and the resilience of the business model.
MPC has several promising growth opportunities driven by strategic investments across its refining and midstream businesses. The company is expanding jet fuel production capacity through projects at Garyville, El Paso and Robinson, positioning itself to benefit from rising demand for jet fuel and specialty products while improving profitability. MPC is also growing its international LPG trading presence and securing long-term demand commitments linked to future MPLX fractionation projects. Additionally, MPLX’s $2.4 billion growth program — focused on natural gas, NGL processing, fractionation and export infrastructure — is expected to capitalize on increasing LNG exports, power generation needs and industrial demand. These investments should enhance cash flow stability, support distribution growth and strengthen MPC’s long-term value creation potential.
Price PerformanceIn the past three months, shares of MPC and DK have gained 7.4% and 3.9%, respectively.
Image Source: Zacks Investment Research
Valuation ComparisonFrom a valuation perspective — in terms of forward price-to-sales ratio — Delek is trading at a discount of 0.26X compared with Marathon Petroleum’s 0.53X.
Image Source: Zacks Investment Research
EPS RevisionsThe Zacks Consensus Estimate for Delek’s 2026 earnings has been revised about 15.9% upward over the past 30 days.
Image Source: Zacks Investment Research
However, the Zacks Consensus Estimate for Marathon Petroleum’s 2026 earnings has been revised about 8.4% upward during the same time period.
Image Source: Zacks Investment Research
ConclusionWhile both companies present compelling investment cases, Marathon Petroleum emerges as the better-positioned investment due to its superior scale, stronger cash-generation capabilities and more diversified business model.
While Delek has made meaningful progress through operational optimization, refinery improvements and value-unlocking initiatives, its performance remains more exposed to refining margin volatility and regulatory uncertainty, justifying its Zacks Rank #3 (Hold).
In contrast, Marathon Petroleum benefits from a large, integrated refining network and the stable cash flows generated by MPLX, which provide resilience across market cycles, supporting its Zacks Rank #1 (Strong Buy). Its ability to consistently return capital through dividends and share repurchases, combined with strategic investments in jet fuel, LPG trading and midstream infrastructure, supports long-term growth and cash flow stability.
Combined with superior stock price performance, Marathon Petroleum stands out as a more compelling choice for investors seeking sustainable value creation and lower risk exposure.
You can see the complete list of today’s Zacks #1 Rank stocks here.
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.
Key Takeaways DK to post Q1 results on April 29, with estimates pointing to a loss of $1.52 per share on $2.1B in revenues.Refining revenues are expected to drop sharply due to Big Spring's turnaround and reduced throughput levels.Cost pressures from higher expenses and interest may hurt margins, though optimization efforts offer support. Delek US Holdings, Inc. (DK - Free Report) is set to release first-quarter 2026 results on April 29. The Zacks Consensus Estimate for the to-be-reported quarter is pegged at a loss of $1.52 per share on revenues of $2.1 billion.
Let us delve into the factors that might have influenced DK’s performance in the to-be-reported quarter. Before that, it is worth taking a look at the company’s performance in the last reported quarter.
Highlights of Q4 Earnings & Surprise HistoryIn the last reported quarter, the Brentwood, TN-based oil and gas refining and marketing company’s adjusted earnings beat the consensus mark. DK reported adjusted earnings of 44 cents per share, which was a cent higher than the Zacks Consensus Estimate, supported by stronger year-over-year performance across both segments and a 12.2% reduction in total costs. Net revenues of $2.4 billion beat the Zacks Consensus Estimate by 6.3%.
DK’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the remaining one, delivering an average surprise of 189%.
This is depicted in the graph below:
DK Stock’s Trend in Estimate RevisionThe Zacks Consensus Estimate for first-quarter 2026 earnings has been revised downward by 22.6% in the past seven days. The estimated figure indicates 34.5% year-over-year growth. However, the Zacks Consensus Estimate for revenues indicates a decline of about 21.2% from the year-ago period’s actual.
Factors to Consider Ahead of DK’s Q1 ReleaseDK's total revenues are expected to have suffered in the quarter to be reported. The company is an independent refiner, transporter and marketer of petroleum products, with its operations organized into two reportable segments: Refining and Logistics.
The Zacks Consensus Estimate predicts first-quarter revenues to decrease from the year-ago quarter’s $2.6 billion. Our model predicts that revenues from the Refining segment will generate revenues of $1,817.6 million, down from $2,608.3 million in the year-ago period. Moreover, the company predicts that a planned turnaround at the Big Spring refinery is expected to significantly reduce throughput, weighing on refining margins and overall system utilization. Operating expenses are projected to rise due to preparations for winter storm disruptions, while interest costs remain elevated, further squeezing profitability.
On the bullish side, Delek could outperform expectations driven by the strong execution of its enterprise optimization plan, which is delivering meaningful cost savings and margin improvements across segments. Continued strength in logistics and wholesale marketing, along with improved margin capture and product optimization, may offset refinery downtime.
What Does Our Model Say About DK Stock?Our proven model does not conclusively predict an earnings beat for Delek this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But this is not the case here.
DK’s Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is -2.30%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
DK’s Zacks Rank: DK currently carries a Zacks Rank #3.
Stocks With the Favorable Combination
Here are some firms from the energy space that you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle.
ConocoPhillips (COP - Free Report) has an Earnings ESP of +8.05% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
COP is scheduled to release earnings on April 30. Notably, the Zacks Consensus Estimate for 2026 earnings indicates 18.5% year-over-year growth. Valued at around $148.4 billion, COP’s shares have gained 31% in a year.
Valero Energy Corporation (VLO - Free Report) has an Earnings ESP of +3.23% and a Zacks Rank #1 at present. It is scheduled to release earnings on April 30.
The Zacks Consensus Estimate for VLO’s 2026 earnings indicates 79.4% year-over-year growth. Valued at around $70.5 billion, VLO’s shares have surged 105.5% in a year.
Diamondback Energy, Inc. (FANG - Free Report) has an Earnings ESP of +0.64% and a Zacks Rank #2 at present. It is slated to release earnings on May 04.
The Zacks Consensus Estimate for FANG’s 2026 earnings indicates 24.5% year-over-year growth. Valued at around $54.8 billion, FANG’s shares have soared 105.5% in a year.
BRENTWOOD, Tenn.--(BUSINESS WIRE)--Delek US Holdings, Inc. (NYSE: DK) (“Delek US”, "Company") today announced financial results for its first quarter ended March 31, 2026.
“2026 is off to a strong start as we continue to build on the momentum established last year, further enhancing our cash flow profile through disciplined execution of our Enterprise Optimization Plan and advancing several other value creation initiatives,” said Avigal Soreq, President and Chief Executive Officer of Delek US. “A key highlight of the quarter was the successful completion of our Big Spring refinery turnaround, which was executed safely, on time, and on budget. With the full system now back online, we are well positioned to capture improved margins and meet demand during the upcoming driving season.”
“Delek Logistics Partners continues to demonstrate the strength and resilience of its integrated 3 stream service business model, supported by increasing third-party cash flows and optimization of its existing asset base. The steady ramp-up of our Delaware Basin Libby 2 Plant and our comprehensive sour gas capabilities reinforce DKL’s competitive position and support its attractive 2026 outlook. The economic separation between DK and DKL continues to increase, enhancing DKL’s financial flexibility and increasing valuation visibility at DK and DKL on a standalone basis.”
“Looking ahead, we are excited about the remainder of the year as we operate our full system and leverage our enhanced reliability to drive performance. We remain focused on safe and efficient operations, disciplined capital allocation, and adding incremental value creating initiatives to achieve our Sum of the Parts goals,” Soreq concluded.
Delek US Results
Three Months Ended March 31,
($ 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.
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.
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.
On April 29, 2026, Delek US Holdings Inc (DK) shares rose 13.7% to a current price of $46.67. The stock has shown remarkable volatility, with a 52-week range be
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.
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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.
Key Takeaways DK reported Q1 adjusted EPS of 8 cents, beating the loss estimate and improving from the prior-year loss.DK saw EBITDA jump 530% to $211.7M, driven by stronger crack spreads and SRE benefits.DK refining profit surged on higher margins, while logistics EBITDA rose on improved wholesale margins. Delek US Holdings, Inc. (DK - Free Report) reported first-quarter 2026 adjusted earnings of 8 cents per share, in contrast to the Zacks Consensus Estimate of a loss of $1.56. The bottom line also improved 103.4% from the year-ago adjusted loss of $2.32, supported by stronger year-over-year performance across both segments.
Net revenues increased 0.4% year over year to $2.7 billion. The top line also beat the Zacks Consensus Estimate by 27.5%. This was due to better-than-expected performance from the refining segment, which exceeded our consensus mark by $93 million.
The integrated downstream energy company reported adjusted EBITDA of $211.7 million, up 530.1% from $33.6 million a year earlier, aided by stronger crack spreads and the quarter’s impact from small refinery exemptions (“SRE”).
On April 20, 2026, DK’s board of directors approved the regular quarterly dividend of 25.5 cents per share. The dividend will be paid on May 8, 2026, to its shareholders of record as of May 1.
DK’s Segmental PerformancesRefining: The refining segment reported an adjusted EBITDA profit of $155.3 million, a notable increase from the adjusted EBITDA loss of $27 million recorded in the prior-year quarter. However, the reported figure missed our estimate of $185.5 million.
The strong year-over-year profit growth was mainly fueled by higher refining margins, supported by an expansion in crack spreads. Delek US’ benchmark crack spreads rose an average of 63.8% year over year during the first quarter of 2026.
Logistics: This 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.
In the first quarter, the segment registered an adjusted EBITDA of $132.4 million compared with $123.2 million in the year-ago quarter. The year-over-year growth was driven by improved margins in the wholesale segment, along with higher interest income from sales-type leases. However, the figure missed our estimate of $141.2 million.
DK’s FinancialsTotal operating costs and expenses increased 2.3% year over year to $2.8 billion. Moreover, the figure was higher than our estimate of $2 billion. Operating expenses (excluding depreciation and amortization) were $219.9 million compared with $211.1 million a year ago, while general and administrative expenses declined to $44 million from $61.5 million. Delek US spent $209 million on capital programs in the same time frame.
As of March 31, 2026, the company had cash and cash equivalents worth $624.1 million and long-term debt of $3.2 billion, with a debt-to-total capital of about 91.3%.
Cash provided by operating activities was $461.1 million in the quarter, versus cash used in operating activities of $62.4 million a year ago. The company reported $600.9 million of favorable working-capital changes within operating cash flow for the period.
DK’s Q2 and 2026 GuidanceFor the second quarter of 2026, DK expects throughput of 72,000-77,000 bpd at Tyler, 78,000-83,000 bpd at El Dorado, 65,000-70,000 bpd at Big Spring and 78,000-83,000 bpd at Krotz Springs. The company’s implied system throughput target is 293,000-313,000 bpd and the Crude throughput target is 283,000-303,000 bpd.
On the cost side, DK expects operating expenses of $215-$225 million, general and administrative expenses of $47-$52 million, depreciation and amortization of $105-$115 million and net interest expense of $80-$90 million for the second quarter.
For 2026, management continues to emphasize free cash flow improvement initiatives and midstream strength. The company raised its Enterprise Optimization Plan target for a sixth consecutive time to at least $220 million on an annual run-rate basis, with most of the improvement expected to come from margin enhancement across refining, logistics and wholesale operations. DK currently sports a Zacks Rank #1 (Strong Buy), while DKL has a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Important Earnings at a GlanceWhile we have discussed DK’s first-quarter results in detail, let us take a look at three other key reports in this space.
Halliburton Company (HAL - Free Report) , a Houston, TX-based oil and gas equipment and services provider, posted first-quarter 2026 adjusted net income per share of 55 cents, beating the Zacks Consensus Estimate of 49 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line fell from the year-ago adjusted profit of 60 cents.
Halliburton reported first-quarter capital expenditure of $192 million. As of March 31, 2026, this Houston, TX-based oil and gas equipment and services company had approximately $2 billion in cash/cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization ratio of 39.6.
Kinder Morgan Inc. (KMI - Free Report) , a Houston, TX-based oil and gas storage and transportation company,posted first-quarter 2026 adjusted earnings per share of 48 cents, which beat the Zacks Consensus Estimate of 38 cents. The bottom line increased year over year from 34 cents. The strong quarterly results can be primarily attributed to contributions from the Natural Gas Pipelines business segment.
As of March 31, 2026, KMI reported $72 million in cash and cash equivalents. At the quarter's end, its long-term debt amounted to $29.72 billion. KMI’s project backlog was reported at $10.1 billion by the end of the first quarter. The midstream energy major added that natural gas projects comprise approximately 92% of its project backlog, with nearly 60% dedicated to supporting local distribution companies and power generation.
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.
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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.
What happenedAccording to a SEC filing dated May 12, 2026, Provident Co of the Employees of the Hebrew University reported a new position in Delek US Holdings (DK +2.00%), buying 72,679 shares during the first quarter. The estimated transaction value was $2.60 million, based on average unadjusted closing prices from January through March 2026. The stake’s quarter-end value was $3.28 million, reflecting both share additions and market price movement.
What else to knowThis new position in DK represents 5.17% of the fund’s 13F reportable assets under management as of March 31, 2026.Top five holdings after the filing:NYSEMKT:EPI: $6.34 million (10.0% of AUM)NYSEMKT:XLI: $5.93 million (9.4% of AUM)NYSEMKT:PAVE: $5.28 million (8.3% of AUM)NASDAQ:AMZN: $4.83 million (7.6% of AUM)NASDAQ:SMH: $3.94 million (6.2% of AUM)As of May 13, 2026, DK shares were priced at $53.88, up 153.2% over the past year, outperforming the S&P 500 by 126.74 percentage points.Company overviewMetricValueRevenue (TTM)$10.73 billionNet income (TTM)($51.40 million)Dividend yield2.18%Price (as of market close May 13, 2026)$43.88Company snapshotProduces and markets refined petroleum products, including gasoline, diesel, jet fuel, and asphalt, and operates convenience retail stores primarily in the southern United States.Operates an integrated downstream model with refining, logistics, and retail segments, generating revenue from fuel production, wholesale distribution, and convenience store operations.Serves oil companies, independent refiners, marketers, jobbers, distributors, utilities, transportation companies, the U.S. government, and independent retail fuel operators.Delek US Holdings, Inc. is a diversified energy company with a significant presence in refining, logistics, and retail fuel distribution across the southern United States. The company leverages its integrated business model to optimize margins and operational efficiency, supported by strategically located refineries and a robust pipeline and terminal network.
With a focus on both wholesale and retail markets, Delek US Holdings aims to capture value across the downstream energy chain, maintaining a competitive position through scale, logistics infrastructure, and a broad customer base.
What this transaction means for investorsProvident, an employee pension fund connected to Hebrew University in Jerusalem, typically takes a long-term, diversified approach to investing. This recent purchase shows a continued interest in growth-oriented stocks and a willingness to tolerate some short-term volatility when a company’s business fundamentals seem sound.
Like many energy companies, Delek has experienced volatility due to geopolitics, shifting energy demand, and regulatory uncertainty. Still, the company beat analysts’ estimates for the first quarter of 2026, and its stock has performed well over the past year. Though it reported a trailing-12-month net income of negative 51.40 million, the company has continued expanding its refinery and midstream infrastructure. It is also pursuing an EPA renewable-fuel exemption for small refineries that would improve its profitability.
Investors who want exposure to the energy sector, particularly petroleum refining and midstream operations, may find Delek an interesting option. But for those with a lower risk tolerance or shorter investment horizon, a diversified energy ETF such as Energy Select Sector SPDR Fund (XLE +1.76%) might be a better fit.
Pamela Kock has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool recommends Delek Us. The Motley Fool has a disclosure policy.
Here are three stocks with buy rank and strong value characteristics for investors to consider today, May 18:
Kohl's Corporation (KSS - Free Report) : This retail company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing by 6.1% over the last 60 days.
Kohl's has a price-to-earnings ratio (P/E) of 14.38 compared with 21.50 for the industry. The company possesses a Value Scoreof A.
Delek US Holdings, Inc. (DK - Free Report) : This downstream energy company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing by 1521% over the last 60 days.
Delek US Holdings has a price-to-earnings ratio (P/E) of 9.88 compared with 12.40 for the industry. The company possesses a Value Score of A.
Versant Media Group, Inc. (VSNT - Free Report) : This entertainment company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its next year earnings increasing 14.3% over the last 60 days.
Versant has a price-to-earnings ratio (P/E) of 10.17 compared with 178.40 for the industry. The company possesses a Value Score of A.
See the full list of top ranked stocks here.
Learn more about the Value score and how it is calculated here.
Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, May 18:
SiTime Corporation (SITM - Free Report) : This timing semiconductor company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 95.2% over the last 60 days.
SiTime's shares gained 203% over the last three months compared with the S&P 500’s decline of 8.4%. The company possesses a Momentum Score of A.
Delek US Holdings, Inc. (DK - Free Report) : This downstream energy company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 1521% over the last 60 days.
Delek’s shares gained 32.4% over the last three months compared with the S&P 500’s decline of 8.3%. The company possesses a Momentum Score of A.
Okeanis Eco Tankers Corp. (ECO - Free Report) : This shipping company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 119.1% over the last 60 days.
Okeanis Eco Tankers’ shares gained 119% over the last three months compared with the S&P 500’s decline of 8.3%. The company possesses a Momentum Score of B.
See the full list of top ranked stocks here
Learn more about the Momentum score and how it is calculated here.
Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, May 20:
Valero Energy Corporation (VLO - Free Report) : This energy company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 111.2% over the last 60 days.
Valero has a PEG ratio of 0.36 compared with 0.49 for the industry. The company possesses a Growth Score of B.
Delek US Holdings, Inc. (DK - Free Report) : This integrated downstream energy company carriesa Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 1521.4% over the last 60 days.
Delek US Holdings has a PEG ratio of 0.34 compared with 0.49 for the industry. The company possesses a Growth Score of A.
Pitney Bowes Inc. (PBI - Free Report) : This digital shipping and mailing solutions company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 11% over the last 60 days.
Pitney Bowes has a PEG ratio of 0.74 compared with 0.75 for the industry. The company possesses a Growth Score of A.
See the full list of top-ranked stocks here.
Learn more about the Growth score and how it is calculated here.
On May 21, 2026, Delek US Holdings Inc (DK) shares fell 5.6% to a current price of $42.10. The stock has seen significant volatility, trading within a 52-week r
Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, May 22:
Valero Energy Corporation (VLO - Free Report) : This energy company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 100.1% over the last 60 days.
Valero has a PEG ratio of 0.37 compared with 0.49 for the industry. The company possesses a Growth Score of B.
Delek US Holdings, Inc. (DK - Free Report) : This integrated downstream energy company carriesa Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 1161.1% over the last 60 days.
Delek US Holdings has a PEG ratio of 0.33 compared with 0.49 for the industry. The company possesses a Growth Score of A.
Pitney Bowes Inc. (PBI - Free Report) : This digital shipping and mailing solutions company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 11% over the last 60 days.
Pitney Bowes has a PEG ratio of 0.69 compared with 0.74 for the industry. The company possesses a Growth Score of A.
See the full list of top-ranked stocks here.
Learn more about the Growth score and how it is calculated here.
Sometimes, stocks catch lightning in a bottle. Delek US Holdings (DK +2.00%) is a good example. Over the past 12 months, shares of the integrated energy refiner have jumped 122%.
It sure helps when energy stocks and small-cap equities, of which Delek is both, are simultaneously displaying leadership traits. With the stock up 47% year to date but about 12% below its 52-week high, it's in correction territory, raising concerns that the shares are overvalued. Some market observers may argue that the stock is significantly overvalued.
This energy stock may be more undervalued than meets the eye. Image source: Getty Images
Stoking those valuation worries is the point that there's been some recent insider selling at the Tennessee-based energy company. At any company, directors and high-ranking executives sell shares for various reasons. Sometimes it's as simple as diversifying their personal portfolios, but at other times those transactions signal valuation concerns.
However, that's not necessarily the case with Delek. Actually, some signs point to the stock being undervalued. Here's why.
Trapping value, but not a value trap In the eyes of some investors, Delek's value case centers on its 63.3% interest in Delek Logistics Partners (DKL 4.01%), a midstream crude oil gatherer, processor, and transporter of refined energy products. The logistics business has a market capitalization of $2.8 billion, meaning Delek's stake is worth nearly $1.8 billion, implying the refiner could unlock significant value for shareholders by spinning off or selling or a portion of that interest.
By some estimates, Delek's stake in the logistics business could be worth more than its entire market capitalization, and by taking action on that position, the company could unlock $600 million to $700 million of "trapped" shareholder value.
Inquiring investors will want to know whether it makes sense for Delek to pursue value creation by trimming or parting ways with its economic position in Delek Logistics. The answer is a resounding "yes" because the business has long been undervalued but is growing. Delek Logistics posted a 5.8% increase in first-quarter revenue, and it's generating more earnings and sales from third-party entities, meaning its dependence on Delek is declining.
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Investors often covet unencumbered midstream businesses for their predictable, toll-road-like business models. Likewise, refiners freeing themselves of midstream obligations can command capital injections to bolster infrastructure and improve existing operations. There's also plenty of precedent for refiners or integrated oil companies to spin off midstream assets, with a slew of such transactions taking place in the early 2010s.
The point is that the market may not be critical of Delek dumping its logistics investment. Investors may applaud the move.
Delek has other attractive traits With a market capitalization of $2.6 billion, Delek is just above the strict definition of a small-cap stock, which is capped at $2 billion. Many small caps aren't cheap on valuation because that's the price of admission investors pay for accessing, hopefully, attractive growth prospects.
And there are some things to "nitpick" with Delek. It lacks the scale of Marathon Petroleum and Valero Energy, and its debt-to-equity ratio is higher than theirs. On the bright side, Delek is reducing debt, and it has $624 million in cash.
Bargain hunters can take heart in knowing that, based on price/operating cash flow and enterprise value/revenue, Delek is one of the most discounted names in the energy refining sector.
Key Takeaways DK gained 149.3% in a year, outperforming peers and broader energy benchmarks.DK raised its Enterprise Optimization Plan target to at least $220 million annually.DK faces 2026 earnings pressure, higher RIN costs and a $2.56 billion net debt load. Shares of Delek US Holdings, Inc. (DK - Free Report) gained momentum over the last year, following a staggering rise of 149.3%. During the same time period, the company’s shares outperformed the sub-industry and the broader oil and energy sector’s rally of 59% and 37.8%, respectively.
Peer comparison further highlights the strength, as Delek conveniently outperformed its peers, CVR Energy, Inc. (CVI - Free Report) and Phillips 66 (PSX - Free Report) , which gained 52.3% and 62.7%, respectively, in the past year.
Image Source: Zacks Investment Research
Delek operates in a refining industry that continues to benefit from supportive market fundamentals, including tight fuel inventories, resilient demand and favorable access to domestic crude supplies. The company has also gained from regulatory relief and stronger refining margins driven by recent geopolitical disruptions. However, refining remains a highly cyclical business, with profitability closely linked to volatile crude prices, crack spreads and changing market conditions. While current industry trends provide meaningful upside support, the inherent uncertainty surrounding refining economics and commodity markets warrants closer scrutiny.
Factors Favoring Delek StockEnterprise Optimization Plan (EOP) Is Driving Structural Free Cash Flow Growth: Delek's Enterprise Optimization Plan continues to exceed expectations, with management raising the annual run-rate target for the sixth consecutive time to at least $220 million from the prior $200 million target. The program is no longer focused solely on cost reduction but also on margin enhancement, logistics optimization, higher product yields and improved commercial execution. Management estimated roughly $60 million of EOP contribution in the first quarter alone and believes additional opportunities remain. The initiative has already improved profitability at key assets such as El Dorado and is helping lower refining breakevens. As these benefits become fully embedded, Delek could generate substantially higher free cash flow even in a mid-cycle refining environment.
Image Source: Delek US Holdings
Big Spring Turnaround Creates a Strong Earnings Setup for the Rest of 2026: The company successfully completed the major Big Spring refinery turnaround safely, on time, and on budget. More importantly, the turnaround was designed to improve reliability, crude slate flexibility, product yields and higher-octane blending capabilities. Since the project represented the largest planned maintenance event of the year, management indicated that the highest spending quarter is now behind them, with no significant turnarounds planned for the remainder of 2026. This positions Delek to fully capitalize on stronger summer fuel demand and favorable refining margins while simultaneously benefiting from lower maintenance-related disruptions and capital spending.
Advantaged Refining Position in the Current Market Environment: Management repeatedly emphasized that Delek's refining system is particularly well positioned due to its direct access to domestic crude supplies, extensive logistics network, and one of the industry's highest distillate and jet fuel yields. Ongoing geopolitical disruptions have tightened global fuel markets and increased the value of refiners with reliable crude access and strong middle-distillate production. Delek's connectivity to multiple domestic crude sources and exposure to both Gulf Coast and Mid-Continent markets provide flexibility that many competitors lack. If current market conditions persist, the company could achieve superior margin capture relative to peers.
Challenges That Pressure DK Stock2026 Earnings Estimates: The Zacks Consensus Estimate implies a 24.9% year-over-year decline in DK’s 2026 earnings per share, signaling a shift to negative earnings growth. This anticipated decline contrasts with the optimism embedded in the stock’s current price. In other words, investors are paying up for Delek at a point when fundamentals are expected to cool rather than accelerate. Unlike DK, the Zacks Consensus Estimate for 2026 earnings per share of peer companies — CVR Energy and Phillips 66 — implies a positive year-over-year earnings growth of 185.3% and 174%, respectively.
Image Source: Zacks Investment Research
Large Renewable Fuel (RIN) Obligations Create Significant Risk: The Renewable Fuel Standard remains one of the company's biggest financial challenges. Management disclosed that at a $1.50 blended RIN price, Delek's 2026 compliance obligation could reach approximately $750 million. Furthermore, the company noted that expected 2026 compliance costs are running roughly 41% higher than 2025 levels. Rising RIN prices could substantially pressure profitability, especially if expected exemptions are not granted. This creates a major external risk that management cannot fully control and could significantly affect shareholder returns.
Elevated Debt and Interest Burden Could Limit Flexibility: Although Delek's standalone balance sheet has improved, the consolidated enterprise still carries substantial debt. At the end of the first quarter of 2026, consolidated net debt stood at approximately $2.56 billion, while management expects quarterly net interest expense of $80-$90 million. Such leverage increases sensitivity to downturns in refining margins and can limit financial flexibility during weaker industry cycles. While the midstream segment helps support cash flows, investors must weigh the benefits of shareholder returns against the ongoing burden of servicing a sizeable debt load in a cyclical business.
Final Verdict on DK StockThis Zacks Rank #3 (Hold) company is benefiting from strong execution of its Enterprise Optimization Plan, which continues to drive structural free cash flow improvements, a completed Big Spring refinery turnaround that enhances operational efficiency, a favorable refining position supported by reliable domestic crude access, strong distillate yields, along with continued strong stock price performance — outpacing peers like CVR Energy and Phillips 66.
However, these strengths are countered by significant concerns, including an expected decline in 2026 earnings, substantial RIN compliance costs and a sizable debt burden that could restrict flexibility during weaker refining cycles.
In this context, investors should consider adopting a hold strategy for now to monitor Delek’s ongoing strengths while waiting for clearer earnings visibility and avoiding a premature exit before its initiatives potentially translate into shareholder value.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways DK raised EOP's annual run-rate target to at least $220M, the sixth increase since launch.DK's EOP added about $60M to Q1 2026 profit through efficiency gains.Delek targets stronger cash flow via margin gains, logistics upgrades and lower costs. Delek US Holdings, Inc.’s (DK - Free Report) Enterprise Optimization Plan (EOP) has become a key driver of the company’s financial transformation. Designed to improve operational efficiency, reduce costs and enhance asset performance, the initiative is steadily strengthening Delek’s cash flow generation. As refining margins remain volatile, EOP is helping the company build a more resilient business model, positioning it to deliver stronger free cash flow and greater shareholder value. Since its launch, the program has exceeded expectations, prompting management to raise its annual run-rate target for the sixth consecutive time, most recently to at least $220 million from the previous $200 million target. During the first quarter of 2026, EOP contributed approximately $60 million to Delek’s profit.
Unlike a traditional cost-cutting program, Delek’s EOP focuses on optimizing the entire value chain. The initiative combines margin enhancement, logistics improvements, supply-chain optimization, higher product yields, reduced general and administrative expenses and lower financial costs. Management estimates that roughly $150 million of the targeted benefits will come from stronger margins, while another $70 million will be generated through efficient cost structures.
The plan has already delivered tangible operational benefits. At the El Dorado refinery, EOP initiatives have improved gross margins through enhanced logistics and lower operating costs. Across the refining network, EOP-driven projects have helped increase distillate and jet fuel yields, supporting stronger profitability.
Most importantly, EOP is helping Delek generate more cash without relying on major capital investments. Combined with limited turnaround activity and improved operational reliability, the program is positioning the company to produce substantially higher free cash flow, strengthen shareholder returns and create long-term value across market cycles.
Other Refining Companies’ Strategy to Boost Cash FlowPhillips 66 (PSX - Free Report) has been focused on strengthening cash flow through operational excellence, disciplined capital allocation and working capital management. Despite a first-quarter cash outflow driven by inventory builds and margin collateral requirements, PSX generated $700 million in operating cash flow excluding working capital. Management expects significant working capital recovery over the remainder of 2026 as market conditions stabilize, providing a cash flow tailwind. Phillips 66 is also leveraging its global trading, logistics and refining network to capture higher margins. Strong expected operating cash flow, coupled with cost-reduction initiatives, is expected to support debt reduction while continuing shareholder returns.
Marathon Petroleum Corporation (MPC - Free Report) improves its cash flow through a combination of operational excellence, disciplined capital allocation and growth investments. In the first quarter, the company generated $1.7 billion in operating cash flow excluding working capital, 99% capture rates and high refinery utilization. MPC continues to invest in high-return projects such as jet fuel capacity expansions at Garyville and Robinson to enhance profitability and future cash generation. Additionally, its midstream subsidiary MPLX is expanding natural gas and NGL infrastructure, creating durable cash flows. Strong commercial execution and strategic investments enable Marathon Petroleum to generate substantial cash while supporting shareholder returns.
The Zacks Rundown for DelekShares of Delek have soared 154.6% in the past year, outperforming the Oil/Energy sector’s rise of 35%.
Image Source: Zacks Investment Research
From a valuation perspective — in terms of the forward price-to-sales ratio — Delek is trading at a discount compared with the industry average.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Delek’s 2026 earnings has been revised about 24.3% upward over the past 30 days.
Image Source: Zacks Investment Research
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Combining the listings on the Nasdaq stock exchange, the New York Stock Exchange (NYSE), and the over-the-counter (OTC) markets, over 12,000 stocks are trading in the U.S. That number is certainly large enough to ensure plenty of promising names go overlooked or underappreciated.
Arguably, that's the plight of refiner Delek US Holdings (DK +2.00%). At a time when the energy sector and smaller stocks are soaring, Delek, with a market capitalization of just under $3 billion, should be attracting more attention.
The reality is the stock leads an arguably anonymous existence, which is really odd given its 64% year-to-date gain.
This energy stock flies under the radar, but that may not last long. Image source: Getty Images.
However, it's not completely ignored. Up more than 13% since May 26, Delek is covered by 13 sell-side analysts, confirming that Wall Street is aware of this stock. That may be a sign Delek's overlooked status could change in a heartbeat, indicating that astute investors may want to examine the name here and now.
Delek is unique among refiners Investors experienced with oil stocks know this is an industry where scale matters. That sentiment extends to the downstream space, where companies such as Marathon Petroleum and Valero process millions of barrels per day, well above the 302,000 barrels Delek handles. Said another way, many investors tend to "go big" with refining stocks.
However, there are benefits in Delek's approach, which some experts describe as "surgical." The company can make small changes that wouldn't move the needle at Marathon or a Valero, but are meaningful to a company that's barely out of small-cap territory. Unveiled in 2022, Delek's enterprise optimization program "trims fat" by cutting overhead and reducing waste. It doesn't sound "sexy," but that effort may be a contributing factor in the stock more than doubling over the past three years.
Delek's surgical approach bears fruit in other ways. Its first-quarter results confirm as much. Revenue of $2.52 billion was basically in line with what it posted a year earlier, but Delek drummed up a fivefold increase in earnings before interest, taxes, depreciation, and amortization (EBITDA). Translation: Delek's tactical operating methods fostered significantly higher earnings without needing similarly increasing revenue.
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This favorable story hasn't been entirely lost on Wall Street. In April, Goldman Sachs lifted its price target on the stock to $55 (it closed at $48.48 on June 8), citing cost-cutting efforts, enhanced marketing and wholesale strategies, and improving earnings, among other factors.
Delek has the capacity for shareholder rewards Delek's stock currently yields 2.1%, so it merits consideration in the oil dividend stock conversation. In the first three months of 2026, the company spent $15.6 million on dividends and ended the period with $624.1 million in cash, indicating it has the ability to sustain, if not grow, the payout.
The refiner has also shown a willingness to repurchase its shares and trimmed $53 million in debt in the first quarter, indicating it's committed to shoring up its balance sheet.
Delek isn't perfect. Its debt ratio is high compared to those of its larger competitors, and refining margins are notoriously volatile. Still, as the company's good-news story takes shape, the stock shouldn't remain overlooked for long.
