Delek US Holdings, Inc. (NYSE: DK) (“Delek US”, "Company") today announced financial results for its fourth quarter ended December 31, 2024.
“Despite challenging market conditions, 2024 was a transformation year during which we have made significant progress in achieving our Sum of the Parts goals and improving the overall profitability of the company,” said Avigal Soreq, President and Chief Executive Officer of Delek US. “After announcing the EOP plan in September we have already made significant progress towards our goals of increasing the profitability of the company by $100 million and now expect to be at the high end of original target run-rate in 2H'2025. Delek Logistics is also a completely different company versus where it started the year. On a pro-forma basis ~70% of its cash flows will be coming from third-party sources."
"Looking ahead, we will continue to execute on our priorities of running safe and reliable operations, and making further progress on midstream deconsolidation, our EOP efforts, and delivering shareholder value while maintaining our financial strength and flexibility," Soreq concluded.
Refining Segment
The refining segment Adjusted EBITDA was $(69.6) million in the fourth quarter 2024 compared with $(4.4) million in the same quarter last year, which reflects other inventory impacts of $43.9 million and $48.6 million for fourth quarter 2024 and 2023, respectively. The decrease over 2023 is primarily due to lower refining crack spreads and turnaround activities at the Krotz Springs refinery. During the fourth quarter 2024, Delek US's benchmark crack spreads were down an average of 13.1% from prior-year levels.
Logistics Segment
The logistics segment Adjusted EBITDA in the fourth quarter 2024 was $107.2 million compared with $99.4 million in the prior-year quarter. The increase over last year's fourth quarter was driven by strong contributions from Delaware Gathering systems, annual rate increases, the impact of the W2W dropdown and incremental contribution due to the H2O Acquisition on September 11, 2024, partially offset by lower wholesale margins.
Corporate and Other Activity
Adjusted EBITDA from Corporate, Other and Eliminations was a loss of $(60.3) million in the fourth quarter 2024 compared with a loss of $(43.8) million in the prior-year period. The increased losses were driven primarily by the impact of the W2W dropdown and higher Corporate expenses.
Shareholder Distributions
On February 18, 2025, the Board of Directors approved the regular quarterly dividend of $0.2550 per share that will be paid on March 10, 2025 to shareholders of record on March 3, 2025.
Liquidity
As of December 31, 2024, Delek US had a cash balance of $735.6 million and total consolidated long-term debt of $2,765.2 million, resulting in net debt of $2,029.6 million. As of December 31, 2024, Delek Logistics Partners, LP (NYSE: DKL) ("Delek Logistics") had $5.4 million of cash and $1,875.4 million of total long-term debt, which are included in the consolidated amounts on Delek US' balance sheet. Excluding Delek Logistics, Delek US had $730.2 million in cash and $889.8 million of long-term debt, or a $159.6 million net debt position.
