• Adjusted EBITDA: Approximately $71 million for the third quarter.

• Net Loss: $77 million or negative $1.20 per share.

• Adjusted Net Loss: $93 million or negative $1.45 per share.

• Refining Margin: $5 to $6 below mid-cycle.

• Dividends Paid: $16 million during the quarter.

• Share Buybacks: $20 million worth of shares repurchased.

• Cash from Operations: Use of $22 million.

• Capital Expenditures: $78 million for the third quarter.

• Logistics Segment EBITDA: $106 million in adjusted EBITDA.

• Operating Expenses: Estimated between $177 million and $188 million for Q4 2024.

• General and Administrative Expenses: Estimated between $53 million and $58 million for Q4 2024.

• Depreciation and Amortization: Expected between $95 million and $105 million for Q4 2024.

• Net Interest Expense: Expected between $75 million and $80 million for Q4 2024.

• Warning! GuruFocus has detected 4 Warning Signs with VTOL.

Release Date: November 06, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Delek US Holdings Inc (NYSE:DK) reported an adjusted EBITDA of approximately $71 million for the third quarter.

• The company has successfully closed a series of transactions, including the sale of retail assets to FEMSA, strengthening its balance sheet.

• Delek US Holdings Inc (NYSE:DK) is implementing a new cost reduction and margin improvement plan, targeting at least $100 million in incremental annual savings by the second half of 2025.

• The company is actively working on increasing economic separation between DK and DKL, which is expected to bring additional cash flow benefits.

• Delek US Holdings Inc (NYSE:DK) is committed to shareholder returns, having paid $16 million in dividends and repurchased $20 million of shares during the quarter.

Negative Points

• The company reported a net loss of $77 million or negative $1.20 per share for the quarter.

• Refining margins remain below mid-cycle, impacting overall financial performance.

• El Dorado refinery experienced lower-than-expected margins due to outages in key units, affecting production margins.

• Cash from operations was a use of $22 million, reflecting challenges in generating positive cash flow.

• The company faces a low margin environment, which could impact future profitability and cash flow generation.

Q & A Highlights

Q: Can you provide more details on the El Dorado refinery's performance and future improvements? A: Avigal Soreq, President and CEO, explained that El Dorado is a complex refinery with significant flexibility. Joseph Israel, EVP Operations, added that they are addressing market access gaps and implementing new processes and logistics to improve profitability. By mid-next year, they expect to achieve an additional $2 per barrel in net margins.