Delek US (NYSE:DK) Issues Earnings Results

Delek US (NYSE:DK) released its quarterly earnings results on Wednesday. The oil and gas company reported $5.48 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.67 by $2.81, FiscalAI reports. The company had revenue of $4.09 billion during the quarter, compared to analysts’ expectations of $3.44 billion. Delek US had a return on equity of 108.48% and a net margin of 1.86%.The company’s revenue for the quarter was up 47.9% compared to the same quarter last year. During the same quarter in the prior year, the business posted ($0.56) earnings per share.

Here are the key takeaways from Delek US’s conference call:

• Strong second-quarter results: Delek reported adjusted net income of approximately $344 million, or $5.48 per share, and adjusted EBITDA of $639 million. Excluding the 50% RVO adjustment, adjusted EBITDA was about $490 million, driven by stronger refining margins, higher throughput, and improved supply and marketing results.
• Record logistics performance and growth: Delek Logistics delivered approximately $144 million in quarterly adjusted EBITDA, its best result in company history, with momentum across crude, gas, and water operations. Management said the nearly completed sour-gas gathering, compression, processing, and AGI solution should support a step-up in gas volumes and future Delaware Basin growth.
• The Enterprise Optimization Plan contributed approximately $60 million to second-quarter P&L, while management said it is pursuing another meaningful improvement in free cash flow. The company expressed increasing confidence in mid-cycle free cash flow of roughly $650 million to $700 million, including DKL distributions.
• Delek returned capital through approximately $16 million of dividends and $20 million of buybacks during the quarter, while reducing standalone net debt by $72 million through a term-loan refinancing and paydown. Management reiterated its strategy of maintaining dividends, balancing debt reduction with repurchases, and avoiding excess cash accumulation.
• Third-quarter refining margins may face pressure as the steep backwardation seen in the second quarter has largely flattened; management indicated that the change could reduce refining margin capture. The company also remains dependent on pending Small Refinery Exemption decisions for 2025 and beyond to mitigate elevated RVO costs, with the timing and value of potential relief still uncertain.

Delek US Price Performance

Shares of NYSE:DK traded down $0.07 during trading hours on Friday, hitting $58.62. 588,580 shares of the company’s stock traded hands, compared to its average volume of 1,388,590. The company’s fifty day simple moving average is $53.96 and its two-hundred day simple moving average is $44.66. The company has a market cap of $3.59 billion, a price-to-earnings ratio of 16.46, a price-to-earnings-growth ratio of 1.57 and a beta of 0.57. The company has a debt-to-equity ratio of 10.51, a quick ratio of 0.49 and a current ratio of 0.76. Delek US has a 52 week low of $20.06 and a 52 week high of $68.93.

Delek US Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, August 10th. Stockholders of record on Monday, August 3rd will be given a dividend of $0.255 per share. The ex-dividend date is Monday, August 3rd. This represents a $1.02 annualized dividend and a dividend yield of 1.7%. Delek US’s dividend payout ratio (DPR) is 28.65%.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on DK. Wall Street Zen downgraded shares of Delek US from a “strong-buy” rating to a “buy” rating in a report on Saturday, August 1st. Zacks Research upgraded shares of Delek US from a “hold” rating to a “strong-buy” rating in a research report on Friday, June 26th. Weiss Ratings lowered shares of Delek US from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Monday, May 11th. The Goldman Sachs Group boosted their target price on Delek US from $58.00 to $73.00 and gave the stock a “buy” rating in a report on Friday, July 17th. Finally, TD Cowen upped their target price on Delek US from $58.00 to $76.00 and gave the stock a “buy” rating in a research report on Tuesday, July 21st. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, six have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $51.92.

Insiders Place Their Bets

In related news, Director Vicky Sutil sold 1,871 shares of the firm’s stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $48.00, for a total transaction of $89,808.00. Following the completion of 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 sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, EVP Reuven Spiegel sold 10,000 shares of Delek US stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $44.36, for a total transaction of $443,600.00. Following the completion of the transaction, the executive vice president owned 48,372 shares in the company, valued at approximately $2,145,781.92. This trade represents a 17.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 39,270 shares of company stock worth $1,828,718. Company insiders own 3.56% of the company’s stock.

Institutional Investors Weigh In On Delek US

Large investors have recently modified their holdings of the stock. New York State Common Retirement Fund raised its stake in Delek US by 1.8% during the 4th quarter. New York State Common Retirement Fund now owns 22,048 shares of the oil and gas company’s stock valued at $654,000 after purchasing an additional 400 shares during the last quarter. Aster Capital Management DIFC Ltd increased its holdings in shares of Delek US by 23.2% during the 4th quarter. Aster Capital Management DIFC Ltd now owns 2,259 shares of the oil and gas company’s stock worth $67,000 after purchasing an additional 425 shares during the period. Caitong International Asset Management Co. Ltd raised 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 valued at $26,000 after buying an additional 432 shares during the last quarter. Orion Porfolio Solutions LLC lifted its stake in shares of Delek US by 2.2% in the second quarter. Orion Porfolio Solutions LLC now owns 23,244 shares of the oil and gas company’s stock valued at $492,000 after buying an additional 507 shares during the period. Finally, Alliancebernstein L.P. lifted its stake in shares of Delek US by 0.9% in the third quarter. Alliancebernstein L.P. now owns 66,005 shares of the oil and gas company’s stock valued at $2,130,000 after buying an additional 573 shares during the period. 97.01% of the stock is owned by institutional investors.

Delek US Company Profile

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.