Delek US (DK) Q3 2024 earnings summary

Executive summary

• Reported a Q3 2024 net loss of $76.8 million ($1.20 per share) and adjusted net loss of $93 million ($1.45 per share), with adjusted EBITDA of $70.6–$71 million.

• Completed the sale of 249 retail stores for $390–$390.2 million, entered a 10-year fuel supply agreement, and classified retail as discontinued operations.

• Acquired H2O Midstream for $229.5–$230 million, expanding water disposal and recycling in the Midland Basin.

• Launched an Enterprise Optimization Plan targeting at least $100 million in annual profitability improvements by the second half of 2025.

• Logistics segment delivered record adjusted EBITDA of $106–$106.1 million, driven by Delaware Gathering, rate increases, and W2W dropdown.

Financial highlights

• Q3 2024 net revenues were $3,042.4 million, down from $4,628.8 million in Q3 2023; nine-month revenues were $9,478.5 million.

• Adjusted EBITDA for Q3 2024 was $70.6–$71 million, down from $345.1 million in Q3 2023 and $107.5 million in Q2 2024.

• Cash balance at September 30, 2024, was $1,037.6 million; total long-term debt was $2,789.4 million.

• Net cash provided by operating activities for Q3 2024 was $432.6 million; cash used in investing activities was $298.4 million.

• Q3 2024 logistics EBITDA was $68.6 million, down 28.9% year-over-year; nine-month logistics EBITDA was $268.9 million.

Outlook and guidance

• Q4 2024 throughput guidance: system total 265,000–276,000 bpd; operating expenses expected between $177–$188 million; G&A $53–$58 million.

• 2024 capital plan on track at $330 million, excluding gas plant construction; 2025 capex expected to be $80–$100 million lower.

• Focus remains on operational excellence, cost structure optimization, and strategic initiatives to unlock value.