Delek US Reports Sharp Decline in 2023 Net Income

By Bobby Samwell • Saturday, March 16 06:02 • Permanent Link

Delek US Holdings, Inc. (DK) and Delek Logistics Partners, LP (DKL) have recently released their Investor Presentation for March 2024, providing a comprehensive overview of their financial and operational performance. The presentation also includes guidance for the first quarter of 2024, with operating expenses estimated to be between $215 million and $225 million, and general and administrative expenses estimated to be between $60 million and $65 million.

Financial Strength and Flexibility: Delek US Holdings (DK) reported $822.2 million of cash, $2,599.8 million long-term debt, and $1.78 billion of net debt as of December 31, 2023. Delek Logistics (DKL) had $3.8 million cash and $1,703.8 million long-term debt as of December 31, 2023. DKL closed an underwritten public offering of approximately 3.6 million common units for net proceeds of $132.5 million on March 12, 2024. DK owned 72.7% of DKL, with an equity value of approximately $1.24 billion based on ~$39.00 per DKL unit as of March 12, 2024.

Financial Summary: Net income decreased from $257.1 million in 2022 to $19.8 million in 2023. Adjusted net income also decreased from $513.5 million in 2022 to $196.6 million in 2023. Adjusted EBITDA decreased from $1,169.8 million in 2022 to $949.7 million in 2023. Cash from operations increased from $425.3 million in 2022 to $1,013.6 million in 2023.

Segment Performance: * In 2023, refining segment's adjusted EBITDA decreased to $706.4 million, logistics segment's adjusted EBITDA decreased to $378.2 million, and retail segment's adjusted EBITDA increased to $46.9 million, while corporate's adjusted EBITDA decreased to $(181.8) million compared to the previous year.

Cash Flow and Capital Expenditure: Consolidated cash flow from operating activities increased to $1,013.6 million in 2023 from $841.3 million in 2022. The capital program for 2023 was $372.1 million, and the forecast for 2024 is $330 million.

Debt and Refineries: Consolidated net debt for Delek US, excluding DKL, decreased from $558.8 million as of December 31, 2022, to $77.6 million as of December 31, 2023. The company's refining system has a total crude throughput capacity of 302,000 barrels per day from four PADD 3 refineries with access to advantaged domestic, inland crudes, and Gulf Coast product pricing.

Operational Excellence and Strategic Initiatives: * The company aims to run safely, reliably, and in an environmentally responsible manner while executing a prudent and disciplined capital allocation approach.

Check out the company's full 8-K submission here.

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