Delek US Holdings Reports Third Quarter 2015 Results
-
$39 million of shares repurchased year to date through October
-
High splits on incentive distribution right payments reached at
Delek Logistics
-
Tyler refinery sales volume reaches record level of 80,200
barrels per day
Delek US Holdings, Inc. (NYSE: DK) (“Delek US”) today announced
financial results for its third quarter ended September 30, 2015. Delek
US reported a third quarter net income of $18.7 million, or $0.29 per
diluted share, versus net income of $72.5 million, or $1.22 per diluted
share, for the quarter ended September 30, 2014.
Third quarter 2015 results on a pre-tax basis were reduced by
approximately $32.4 million of inventory related expenses consisting of
an inventory charge due to the lower of cost or market valuation of
$27.3 million and $5.1 million for other inventory related charges due
to crude oil and product price movements during the quarter. Also, a
$1.6 million net hedging loss, including $5.8 million of unrealized
losses, lowered results in the third quarter of 2015. This compares to
approximately $12.2 million of inventory related charges and a net
hedging gain of $29.7 million, including $3.6 million of unrealized
gains, in the third quarter 2014.
On a year-over-year basis, results in the third quarter 2015 benefited
from increased throughput at the Tyler, Texas refinery, a higher WTI
Gulf Coast 5-3-2 crack spread and improved performance in the logistics
and retail segments. In addition, the approximately 48 percent ownership
in Alon USA increased pre-tax income by $12.3 million net of associated
interest expense. These benefits were more than offset by a $10.57 per
barrel change in the Midland WTI and Cushing WTI differential to a
premium as compared to a discount in the third quarter 2014, along with
the items mentioned above.
Uzi Yemin, Chairman, President and Chief Executive Officer of Delek US
stated, "During the quarter we improved throughput sequentially at the
Tyler refinery as we matched operating rates to increased commercial
demand. The Retail segment had a solid third quarter, and its trailing
twelve month contribution margin reached a record amount. Our Logistics
performance improved year-over-year, and our joint venture crude oil
pipeline projects are expected to be completed in the second half of
2016. Lastly, our cash flow generation has benefited from lower capital
expenditures following the completion of the expansion and turnaround at
Tyler in March 2015, and we repurchased $39.0 million of stock between
late August and the end of October."
Yemin concluded, "We expect our maintenance and regulatory capital
expenditure needs in 2016 to be approximately $100 to $110 million. Our
cash flow attributed to our ownership of Delek Logistics’ general
partner should increase as incentive distribution rights payments have
reached the level of high splits based on Delek Logistics’ recent
distribution increase. Also, the potential for increased free cash flow
from our operations should improve as capital expenditures decline from
our 2015 forecast of $227 million. As we enter the fourth quarter,
Midland has moved back to a discount and the futures market remains in
contango. Our financial position remains conservative, and we continue
to evaluate growth opportunities, including the acquisition of
additional shares of Alon USA, while also returning cash to shareholders."
Regular Quarterly Dividend and Share Repurchase
Delek US announced today that its Board of Directors had declared its
regular quarterly cash dividend of $0.15 per share. Shareholders of
record on November 24, 2015 will receive this cash dividend payable on
December 15, 2015.
During the third quarter 2015 approximately 960,000 shares were
repurchased for $29.0 million, or $30.22 per share, under the 2015 share
repurchase authorization of $125.0 million. On a year-to-date basis from
August 2015 through the end of October 2015 approximately 1,326,000
shares were repurchased for $39.0 million, or $29.41 per share, leaving
approximately $86.0 million available under this authorization.
Liquidity
As of September 30, 2015, Delek US had a cash balance of $366.3 million
and total debt of $953.7 million, resulting in net debt of $587.4
million. This compares to $593.5 million of net debt at June 30, 2015.
As of September 30, 2015, Delek US' subsidiary, Delek Logistics
Partners, LP (NYSE: DKL) ("Delek Logistics"), had $325.2 million of
debt, which is included in the consolidated amounts on Delek US' balance
sheet. Excluding Delek Logistics, Delek US had approximately $366.3
million in cash and $628.5 million of debt, or a $262.2 million net debt
position.
Refining Segment
|
|
|
|
Three Months Ended September 30,
|
Contribution Margin
|
|
|
|
2015
|
|
2014
|
($ in millions)
|
|
|
|
|
|
|
Refining Segment
|
|
|
|
$47.4
|
|
$151.3
|
Tyler Refinery
|
|
|
|
$17.1
|
|
$86.0
|
El Dorado Refinery
|
|
|
|
$32.9
|
|
$64.5
|
|
|
|
|
|
|
|
Refining contribution margin decreased to $47.4 million from $151.3
million in the third quarter 2014. This decline in year-over-year
performance can be attributed to several factors. First, the Midland
differential to WTI Cushing moved to a premium from a discount on a
year-over-year basis. Second, a net hedging loss of $1.5 million
occurred in the third quarter 2015 compared to a $27.9 million hedging
gain in the prior year period. Finally, during the third quarter 2015
there was $32.3 million of lower of cost or market valuation and other
inventory related charges due to price movements, compared to
approximately $12.2 million of inventory related charges in the prior
year period.
The WTI Midland crude differential to WTI Cushing declined on a
year-over-year basis, averaging a $0.72 per barrel premium in third
quarter 2015 compared to an average discount of $9.85 per barrel in the
third quarter 2014. This decline in the Midland differential was
partially offset by a crude oil futures market that was in contango of
$0.54 per barrel in the third quarter 2015 compared to backwardation of
$1.30 per barrel in the third quarter 2014. The Gulf Coast 5-3-2 crack
spread averaged $16.41 per barrel during the third quarter 2015, an
increase from $15.05 per barrel during third quarter 2014.
Tyler, Texas Refinery
Operating Highlights
|
|
Three Months Ended September 30,
|
|
|
2015
|
|
2014
|
Crude Throughput, bpd
|
|
71,540
|
|
59,981
|
Total Throughput, bpd
|
|
79,908
|
|
64,431
|
Total Sales Volume, bpd
|
|
80,177
|
|
63,107
|
|
|
|
|
|
Refining Margin, $/bbl sold
|
|
$6.12
|
|
$19.05
|
|
|
|
|
|
Direct Operating Expense, $ in millions
|
|
$28.1
|
|
$24.6
|
Direct Operating Expense, $/bbl sold
|
|
$3.81
|
|
$4.24
|
|
|
|
|
|
During the third quarter 2015, the Tyler refinery benefited from the
15,000 barrel per day expansion completed in March 2015. This was the
primary driver in higher throughputs and sales volume. Direct operating
expense increased primarily due to higher employee related expenses,
maintenance, and outside services, partially offset by lower chemical,
utility and insurance cost on a year-over year-basis.
In addition to the change on a year-over-year basis in the Midland WTI
to Cushing WTI differential, included in the refining margin in the
third quarter 2015 is approximately $2.0 million of hedging losses and
$27.2 million of lower of cost or market valuation and other inventory
related charges. Hedging and inventory combined for a $29.2 million, or
$3.95 per barrel sold, reduction in refining margin. In the third
quarter 2014, results included $15.8 million of hedging gains.
El Dorado, Arkansas Refinery
Operating Highlights
|
|
Three Months Ended September 30,
|
|
|
2015
|
|
2014
|
Crude Throughput, bpd
|
|
71,584
|
|
80,266
|
Total Throughput, bpd
|
|
76,399
|
|
86,690
|
Total Sales Volume, bpd
|
|
78,736
|
|
85,880
|
|
|
|
|
|
Refining Margin, $/bbl sold
|
|
$8.71
|
|
$11.51
|
|
|
|
|
|
Direct Operating Expense, $ in millions
|
|
$30.2
|
|
$26.4
|
Direct Operating Expense, $/bbl sold
|
|
$4.17
|
|
$3.35
|
|
|
|
|
|
During the third quarter 2015, sales volume was reduced primarily due to
lower total throughput compared to the prior year period. Direct
operating expense increased primarily due to higher utility and outside
services on a year-over-year basis.
In addition to the change on a year-over-year basis in the Midland WTI
to Cushing WTI differential, included in the refining margin in the
third quarter 2015 is approximately $0.5 million of hedging gains and
$5.1 million of lower of cost or market valuation and other inventory
related charges. Also, during the third quarter 2015, there was $4.2
million of losses related to product price volatility on the Colonial
pipeline that lowered the refining margin. In the third quarter 2014,
results included $12.1 million of hedging gains.
Logistics Segment
Delek US and its affiliates beneficially own approximately 62 percent
(including the 2 percent general partner interest) of all outstanding
Delek Logistics units. The logistics segment's results include 100
percent of the performance of Delek Logistics and adjustments for the
minority interests are made on a consolidated basis.
The logistics segment's contribution margin in the third quarter 2015
was $29.1 million compared to $23.5 million in the third quarter 2014.
On a year-over-year basis, results benefited from an increased
contribution from the Paline Pipeline and acquisitions by Delek
Logistics over the past year, including the El Dorado, Arkansas rail
offloading rack and the Tyler, Texas crude oil storage tank purchased on
March 31, 2015 from subsidiaries of Delek US. These factors were
partially offset by a lower gross margin per barrel in the west Texas
wholesale business.
Retail Segment
|
|
Three Months Ended September 30,
|
Retail Operating Highlights
|
|
2015
|
|
2014
|
Contribution margin, $ in millions
|
|
$21.9
|
|
$16.4
|
Operating expenses, $ in millions
|
|
$35.5
|
|
$36.4
|
|
|
|
|
|
Merchandise margin
|
|
28.0%
|
|
27.7%
|
Fuel margin, per gallon
|
|
$0.217
|
|
$0.194
|
|
|
|
|
|
Store count (end of period)
|
|
355
|
|
366
|
|
|
|
|
|
Retail segment contribution margin increased year-over-year primarily
due to higher fuel margins and gallons sold, combined with increased
merchandise sales. Operating expense decreased primarily due to lower
credit expenses on a year-over-year basis. Fuel gallons sold increased
to 117.9 million from 116.1 million in the prior-year period and
merchandise sales increased year over year to $111.3 million compared to
$107.0 million. On a same store sales basis, fuel gallons sold increased
0.4% and merchandise sales increased 3.8% from third quarter 2014. At
the end of the third quarter 2015, there were a total of 64 large-format
stores in the portfolio.
Third Quarter 2015 Results | Conference Call
Information
Delek US will hold a conference call to discuss its third quarter 2015
results on Wednesday, November 4, 2015 at 8:30 a.m. Central Time.
Investors will have the opportunity to listen to the conference call
live by going to www.DelekUS.com
and clicking on the Investor Relations tab. Participants are encouraged
to register at least 15 minutes early to download and install any
necessary software. For those who cannot listen to the live broadcast, a
telephonic replay will be available through February 4, 2016 by dialing
(855) 859-2056, passcode 55522141. An archived version of the replay
will also be available at www.DelekUS.com
for 90 days.
Investors may also wish to listen to Delek Logistics’ (NYSE: DKL) third
quarter earnings conference call that will be held on November 4, 2015
at 7:30 a.m. Central Time and review Delek Logistics’ earnings press
release. Market trends and information disclosed by Delek Logistics may
be relevant to the logistics segment reported by Delek US. Both a replay
of the conference call and press release for Delek Logistics are
available online at www.deleklogistics.com.
About Delek US Holdings, Inc.
Delek US Holdings, Inc. is a diversified downstream energy company with
assets in petroleum refining, logistics and convenience store retailing.
The refining segment consists of refineries operated in Tyler, Texas and
El Dorado, Arkansas with a combined nameplate production capacity of
155,000 barrels per day. Delek US Holdings, Inc. and its affiliates also
own approximately 62 percent (including the 2 percent general partner
interest) of Delek Logistics Partners, LP. Delek Logistics Partners, LP
(NYSE: DKL) is a growth-oriented master limited partnership focused on
owning and operating midstream energy infrastructure assets. The retail
segment markets motor fuel and convenience merchandise through a network
of approximately 355 company-operated convenience store locations
operated under the MAPCO Express®, MAPCO Mart®, East Coast®, Fast Food
and Fuel™, Favorite Markets®, Delta Express® and Discount Food Mart™
brand names. Delek US Holdings, Inc. also owns approximately 48 percent
of the outstanding common stock of Alon USA Energy, Inc. (NYSE: ALJ).
Safe Harbor Provisions Regarding
Forward-Looking Statements
This press release contains forward-looking statements that are based
upon current expectations and involve a number of risks and
uncertainties. Statements concerning current estimates, expectations and
projections about future results, performance, prospects and
opportunities and other statements, concerns, or matters that are not
historical facts are “forward-looking statements,” as that term is
defined under the federal securities laws.
Investors are cautioned that the following important factors, among
others, may affect these forward-looking statements. These factors
include but are not limited to: risks and uncertainties with respect to
the quantities and costs of crude oil we are able to obtain and the
price of the refined petroleum products we ultimately sell; gains and
losses from derivative instruments; changes in the scope, costs, and/or
timing of capital and maintenance projects; management's ability to
execute its strategy of growth through acquisitions and the
transactional risks associated with acquisitions; the effect on our
financial results by the financial results of Alon USA Energy, Inc., in
which we hold a significant equity investment; operating hazards
inherent in transporting, storing and processing crude oil and
intermediate and finished petroleum products; our competitive position
and the effects of competition; the projected growth of the industries
in which we operate; general economic and business conditions,
particularly levels of spending relating to travel and tourism or
conditions affecting the southeastern United States; and other risks
contained in our filings with the United States Securities and Exchange
Commission.
Forward-looking statements should not be read as a guarantee of future
performance or results and will not be accurate indications of the times
at or by which such performance or results will be achieved.
Forward-looking information is based on information available at the
time and/or management's good faith belief with respect to future
events, and is subject to risks and uncertainties that could cause
actual performance or results to differ materially from those expressed
in the statements. Delek US undertakes no obligation to update or revise
any such forward-looking statements.
|
|
|
|
|
Delek US Holdings, Inc.
|
Consolidated Balance Sheets (Unaudited)
|
|
|
|
|
|
|
|
September 30, 2015
|
|
December 31, 2014
|
|
|
(In millions, except share and per share data)
|
ASSETS
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
366.3
|
|
|
$
|
444.1
|
|
Accounts receivable
|
|
227.5
|
|
|
197.0
|
|
Accounts receivable from related parties
|
|
2.1
|
|
|
—
|
|
Inventory
|
|
384.1
|
|
|
469.6
|
|
Other current assets
|
|
108.5
|
|
|
136.7
|
|
Total current assets
|
|
1,088.5
|
|
|
1,247.4
|
|
Property, plant and equipment:
|
|
|
|
|
Property, plant and equipment
|
|
2,065.8
|
|
|
1,952.9
|
|
Less: accumulated depreciation
|
|
(550.8
|
)
|
|
(509.6
|
)
|
Property, plant and equipment, net
|
|
1,515.0
|
|
|
1,443.3
|
|
Goodwill
|
|
73.9
|
|
|
73.9
|
|
Other intangibles, net
|
|
27.5
|
|
|
21.4
|
|
Equity method investments
|
|
618.8
|
|
|
—
|
|
Other non-current assets
|
|
109.8
|
|
|
105.1
|
|
Total assets
|
|
$
|
3,433.5
|
|
|
$
|
2,891.1
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable
|
|
$
|
443.1
|
|
|
$
|
476.7
|
|
Current portion of long-term debt and capital lease obligations
|
|
103.7
|
|
|
56.4
|
|
Obligation under Supply and Offtake Agreement
|
|
160.8
|
|
|
200.9
|
|
Accrued expenses and other current liabilities
|
|
124.5
|
|
|
122.9
|
|
Total current liabilities
|
|
832.1
|
|
|
856.9
|
|
Non-current liabilities:
|
|
|
|
|
Long-term debt and capital lease obligations, net of current portion
|
|
850.0
|
|
|
533.3
|
|
Environmental liabilities, net of current portion
|
|
8.1
|
|
|
8.5
|
|
Asset retirement obligations
|
|
9.5
|
|
|
9.2
|
|
Deferred tax liabilities
|
|
261.6
|
|
|
266.3
|
|
Other non-current liabilities
|
|
52.5
|
|
|
18.5
|
|
Total non-current liabilities
|
|
1,181.7
|
|
|
835.8
|
|
Stockholders’ equity:
|
|
|
|
|
Preferred stock, $0.01 par value, 10,000,000 shares authorized, no
shares issued and outstanding
|
|
—
|
|
|
—
|
|
Common stock, $0.01 par value, 110,000,000 shares authorized,
66,892,775 shares and 60,637,525 shares issued at September 30, 2015
and December 31, 2014, respectively
|
|
0.7
|
|
|
0.6
|
|
Additional paid-in capital
|
|
636.2
|
|
|
395.1
|
|
Accumulated other comprehensive loss
|
|
(30.8
|
)
|
|
(12.6
|
)
|
Treasury stock, 4,325,314 shares and 3,365,561 shares, at cost, as
of September 30, 2015 and December 31, 2014, respectively
|
|
(141.6
|
)
|
|
(112.6
|
)
|
Retained earnings
|
|
754.5
|
|
|
731.2
|
|
Non-controlling interest in subsidiaries
|
|
200.7
|
|
|
196.7
|
|
Total stockholders’ equity
|
|
1,419.7
|
|
|
1,198.4
|
|
Total liabilities and stockholders’ equity
|
|
$
|
3,433.5
|
|
|
$
|
2,891.1
|
|
|
|
|
|
|
|
|
|
|
|
Delek US Holdings, Inc.
|
Consolidated Statements of Income
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
(In millions, except share and per share data)
|
Net sales
|
|
$
|
1,554.2
|
|
|
$
|
2,322.2
|
|
|
$
|
4,397.9
|
|
|
$
|
6,562.6
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
1,355.6
|
|
|
2,035.2
|
|
|
3,799.9
|
|
|
5,786.8
|
|
Operating expenses
|
|
106.6
|
|
|
100.9
|
|
|
304.0
|
|
|
301.6
|
|
General and administrative expenses
|
|
34.1
|
|
|
36.0
|
|
|
101.1
|
|
|
97.6
|
|
Depreciation and amortization
|
|
34.2
|
|
|
29.2
|
|
|
97.4
|
|
|
82.0
|
|
Other operating income, net
|
|
(0.1
|
)
|
|
—
|
|
|
(0.2
|
)
|
|
—
|
|
Total operating costs and expenses
|
|
1,530.4
|
|
|
2,201.3
|
|
|
4,302.2
|
|
|
6,268.0
|
|
Operating income
|
|
23.8
|
|
|
120.9
|
|
|
95.7
|
|
|
294.6
|
|
Interest expense
|
|
15.7
|
|
|
10.0
|
|
|
43.1
|
|
|
29.7
|
|
Interest income
|
|
(0.3
|
)
|
|
—
|
|
|
(0.9
|
)
|
|
(0.4
|
)
|
Income from equity method investments
|
|
(16.5
|
)
|
|
—
|
|
|
(23.9
|
)
|
|
—
|
|
Other income, net
|
|
—
|
|
|
(0.1
|
)
|
|
(1.0
|
)
|
|
(0.1
|
)
|
Total non-operating (income) expenses, net
|
|
(1.1
|
)
|
|
9.9
|
|
|
17.3
|
|
|
29.2
|
|
Income before income tax (benefit) expense
|
|
24.9
|
|
|
111.0
|
|
|
78.4
|
|
|
265.4
|
|
Income tax (benefit) expense
|
|
(0.5
|
)
|
|
32.8
|
|
|
8.6
|
|
|
84.7
|
|
Net income
|
|
25.4
|
|
|
78.2
|
|
|
69.8
|
|
|
180.7
|
|
Net income attributed to non-controlling interest
|
|
6.7
|
|
|
5.7
|
|
|
18.9
|
|
|
19.6
|
|
Net income attributable to Delek
|
|
$
|
18.7
|
|
|
$
|
72.5
|
|
|
$
|
50.9
|
|
|
$
|
161.1
|
|
Basic earnings per share:
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
|
$
|
0.30
|
|
|
$
|
1.23
|
|
|
$
|
0.84
|
|
|
$
|
2.73
|
|
Diluted earnings per share
|
|
$
|
0.29
|
|
|
$
|
1.22
|
|
|
$
|
0.84
|
|
|
$
|
2.70
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
63,189,399
|
|
|
58,744,099
|
|
|
60,366,532
|
|
|
59,090,291
|
|
Diluted
|
|
63,658,386
|
|
|
59,302,788
|
|
|
60,894,206
|
|
|
59,673,599
|
|
Dividends declared per common share outstanding
|
|
$
|
0.15
|
|
|
$
|
0.25
|
|
|
$
|
0.45
|
|
|
$
|
0.75
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delek US Holdings, Inc.
|
Consolidated Statements of Cash Flows
|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
|
2015
|
|
2014
|
Cash Flow Data
|
|
(Unaudited)
|
Net cash provided by operating activities
|
|
$
|
191.7
|
|
|
$
|
241.7
|
|
Net cash used in investing activities
|
|
(411.9
|
)
|
|
(222.0
|
)
|
Net cash provided by financing activities
|
|
142.4
|
|
|
78.0
|
|
Net (decrease) increase in cash and cash equivalents
|
|
$
|
(77.8
|
)
|
|
$
|
97.7
|
|
|
|
|
|
|
|
|
|
|
|
Delek US Holdings, Inc.
|
Segment Data (Unaudited)
|
(In millions)
|
|
|
|
Three Months Ended September 30, 2015
|
|
|
Refining
|
|
Logistics
|
|
Retail
|
|
Corporate, Other and Eliminations
|
|
Consolidated
|
Net sales (excluding intercompany fees and sales)
|
|
$
|
1,027.3
|
|
|
$
|
128.5
|
|
|
$
|
396.9
|
|
|
$
|
1.5
|
|
|
$
|
1,554.2
|
|
Intercompany fees and sales
|
|
180.7
|
|
|
36.6
|
|
|
—
|
|
|
(217.3
|
)
|
|
—
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
1,100.7
|
|
|
124.4
|
|
|
339.5
|
|
|
(209.0
|
)
|
|
1,355.6
|
|
Operating expenses
|
|
59.9
|
|
|
11.6
|
|
|
35.5
|
|
|
(0.4
|
)
|
|
106.6
|
|
Segment contribution margin
|
|
$
|
47.4
|
|
|
$
|
29.1
|
|
|
$
|
21.9
|
|
|
$
|
(6.4
|
)
|
|
92.0
|
|
General and administrative expenses
|
|
|
|
|
|
|
|
|
|
34.1
|
|
Depreciation and amortization
|
|
|
|
|
|
|
|
|
|
34.2
|
|
Other operating income
|
|
|
|
|
|
|
|
|
|
(0.1
|
)
|
Operating income
|
|
|
|
|
|
|
|
|
|
$
|
23.8
|
|
Total assets
|
|
$
|
1,965.2
|
|
|
$
|
361.8
|
|
|
$
|
440.5
|
|
|
$
|
666.0
|
|
|
$
|
3,433.5
|
|
Capital spending (excluding business combinations)
|
|
$
|
23.6
|
|
|
$
|
4.1
|
|
|
$
|
4.8
|
|
|
$
|
2.7
|
|
|
$
|
35.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2014
|
|
|
Refining
|
|
Logistics
|
|
Retail
|
|
Corporate, Other and Eliminations
|
|
Consolidated
|
Net sales (excluding intercompany fees and sales)
|
|
$
|
1,618.4
|
|
|
$
|
198.2
|
|
|
$
|
505.1
|
|
|
$
|
0.5
|
|
|
$
|
2,322.2
|
|
Intercompany fees and sales
|
|
183.8
|
|
|
29.8
|
|
|
—
|
|
|
(213.6
|
)
|
|
—
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
1,598.5
|
|
|
194.1
|
|
|
452.3
|
|
|
(209.7
|
)
|
|
2,035.2
|
|
Operating expenses
|
|
52.4
|
|
|
10.4
|
|
|
36.4
|
|
|
1.7
|
|
|
100.9
|
|
Segment contribution margin
|
|
$
|
151.3
|
|
|
$
|
23.5
|
|
|
$
|
16.4
|
|
|
$
|
(5.1
|
)
|
|
186.1
|
|
General and administrative expenses
|
|
|
|
|
|
|
|
|
|
36.0
|
|
Depreciation and amortization
|
|
|
|
|
|
|
|
|
|
29.2
|
|
Operating income
|
|
|
|
|
|
|
|
|
|
$
|
120.9
|
|
Total assets
|
|
$
|
2,065.5
|
|
|
$
|
316.2
|
|
|
$
|
462.2
|
|
|
$
|
213.7
|
|
|
$
|
3,057.6
|
|
Capital spending (excluding business combinations)
|
|
$
|
30.1
|
|
|
$
|
0.7
|
|
|
$
|
6.9
|
|
|
$
|
2.2
|
|
|
$
|
39.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delek US Holdings, Inc.
|
Segment Data (Unaudited)
|
(In millions)
|
|
|
|
Nine Months Ended September 30, 2015
|
|
|
Refining
|
|
Logistics
|
|
Retail
|
|
Corporate, Other and Eliminations
|
|
Consolidated
|
Net sales (excluding intercompany fees and sales)
|
|
$
|
2,875.9
|
|
|
$
|
373.8
|
|
|
$
|
1,144.8
|
|
|
$
|
3.4
|
|
|
$
|
4,397.9
|
|
Intercompany fees and sales
|
|
495.9
|
|
|
106.9
|
|
|
—
|
|
|
(602.8
|
)
|
|
—
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
3,022.4
|
|
|
365.3
|
|
|
992.7
|
|
|
(580.5
|
)
|
|
3,799.9
|
|
Operating expenses
|
|
168.1
|
|
|
33.2
|
|
|
103.6
|
|
|
(0.9
|
)
|
|
304.0
|
|
Segment contribution margin
|
|
$
|
181.3
|
|
|
$
|
82.2
|
|
|
$
|
48.5
|
|
|
$
|
(18.0
|
)
|
|
$
|
294.0
|
|
General and administrative expenses
|
|
|
|
|
|
|
|
|
|
101.1
|
|
Depreciation and amortization
|
|
|
|
|
|
|
|
|
|
97.4
|
|
Other operating income
|
|
|
|
|
|
|
|
|
|
(0.2
|
)
|
Operating income
|
|
|
|
|
|
|
|
|
|
$
|
95.7
|
|
Capital spending (excluding business combinations)
|
|
$
|
146.8
|
|
|
$
|
13.9
|
|
|
$
|
8.3
|
|
|
$
|
4.6
|
|
|
$
|
173.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2014
|
|
|
Refining
|
|
Logistics
|
|
Retail
|
|
Corporate, Other and Eliminations
|
|
Consolidated
|
Net sales (excluding intercompany fees and sales)
|
|
$
|
4,533.2
|
|
|
$
|
583.9
|
|
|
$
|
1,445.3
|
|
|
$
|
0.2
|
|
|
$
|
6,562.6
|
|
Intercompany fees and sales
|
|
478.4
|
|
|
84.0
|
|
|
—
|
|
|
(562.4
|
)
|
|
—
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
4,468.2
|
|
|
562.9
|
|
|
1,302.9
|
|
|
(547.2
|
)
|
|
5,786.8
|
|
Operating expenses
|
|
168.7
|
|
|
29.6
|
|
|
103.4
|
|
|
(0.1
|
)
|
|
301.6
|
|
Segment contribution margin
|
|
$
|
374.7
|
|
|
$
|
75.4
|
|
|
$
|
39.0
|
|
|
$
|
(14.9
|
)
|
|
$
|
474.2
|
|
General and administrative expenses
|
|
|
|
|
|
|
|
|
|
97.6
|
|
Depreciation and amortization
|
|
|
|
|
|
|
|
|
|
82.0
|
|
Other operating income
|
|
|
|
|
|
|
|
|
|
—
|
|
Operating income
|
|
|
|
|
|
|
|
|
|
$
|
294.6
|
|
Capital spending (excluding business combinations)
|
|
$
|
155.1
|
|
|
$
|
5.0
|
|
|
$
|
20.0
|
|
|
$
|
13.2
|
|
|
$
|
193.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Refining Segment
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Tyler Refinery
|
|
(Unaudited)
|
|
(Unaudited)
|
Days operated in period
|
|
92
|
|
|
92
|
|
|
273
|
|
|
273
|
Total sales volume (average barrels per day)(1)
|
|
80,177
|
|
|
63,107
|
|
|
58,531
|
|
|
65,026
|
Products manufactured (average barrels per day):
|
|
|
|
|
|
|
|
|
Gasoline
|
|
41,412
|
|
|
33,846
|
|
|
30,499
|
|
|
34,971
|
Diesel/Jet
|
|
32,034
|
|
|
24,922
|
|
|
23,356
|
|
|
25,473
|
Petrochemicals, LPG, NGLs
|
|
3,606
|
|
|
2,714
|
|
|
2,583
|
|
|
2,473
|
Other
|
|
1,706
|
|
|
1,636
|
|
|
1,285
|
|
|
1,706
|
Total production
|
|
78,758
|
|
|
63,118
|
|
|
57,723
|
|
|
64,623
|
Throughput (average barrels per day):
|
|
|
|
|
|
|
|
|
Crude oil
|
|
71,540
|
|
|
59,981
|
|
|
53,460
|
|
|
58,766
|
Other feedstocks
|
|
8,368
|
|
|
4,450
|
|
|
5,177
|
|
|
6,888
|
Total throughput
|
|
79,908
|
|
|
64,431
|
|
|
58,637
|
|
|
65,654
|
Per barrel of sales:
|
|
|
|
|
|
|
|
|
Tyler refining margin
|
|
$
|
6.12
|
|
|
$
|
19.05
|
|
|
$
|
10.17
|
|
|
$
|
18.37
|
Direct operating expenses
|
|
$
|
3.81
|
|
|
$
|
4.24
|
|
|
$
|
4.59
|
|
|
$
|
4.47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
El Dorado Refinery
|
|
(Unaudited)
|
|
(Unaudited)
|
Days in period
|
|
92
|
|
|
92
|
|
|
273
|
|
|
273
|
Total sales volume (average barrels per day)(2)
|
|
78,736
|
|
|
85,880
|
|
|
81,812
|
|
|
76,955
|
Products manufactured (average barrels per day):
|
|
|
|
|
|
|
|
|
Gasoline
|
|
38,068
|
|
|
41,134
|
|
|
39,336
|
|
|
34,510
|
Diesel
|
|
27,206
|
|
|
34,205
|
|
|
28,188
|
|
|
27,569
|
Petrochemicals, LPG, NGLs
|
|
561
|
|
|
711
|
|
|
666
|
|
|
803
|
Asphalt
|
|
6,137
|
|
|
7,567
|
|
|
7,188
|
|
|
5,817
|
Other
|
|
2,717
|
|
|
930
|
|
|
2,083
|
|
|
865
|
Total production
|
|
74,689
|
|
|
84,547
|
|
|
77,461
|
|
|
69,564
|
Throughput (average barrels per day):
|
|
|
|
|
|
|
|
|
Crude oil
|
|
71,584
|
|
|
80,266
|
|
|
74,225
|
|
|
65,735
|
Other feedstocks
|
|
4,815
|
|
|
6,424
|
|
|
4,732
|
|
|
5,703
|
Total throughput
|
|
76,399
|
|
|
86,690
|
|
|
78,957
|
|
|
71,438
|
Per barrel of sales:
|
|
|
|
|
|
|
|
|
El Dorado refining margin
|
|
$
|
8.71
|
|
|
$
|
11.51
|
|
|
$
|
8.46
|
|
|
$
|
9.88
|
Direct operating expenses
|
|
$
|
4.17
|
|
|
$
|
3.35
|
|
|
$
|
4.05
|
|
|
$
|
4.06
|
|
|
|
|
|
|
|
|
|
Pricing statistics (average for the
period presented):
|
|
|
|
|
|
|
|
|
WTI — Cushing crude oil (per barrel)
|
|
$
|
46.70
|
|
|
$
|
97.31
|
|
|
$
|
51.10
|
|
|
$
|
99.65
|
WTI — Midland crude oil (per barrel)
|
|
$
|
47.75
|
|
|
$
|
87.04
|
|
|
$
|
50.81
|
|
|
$
|
91.66
|
US Gulf Coast 5-3-2 crack spread (per barrel)
|
|
$
|
16.41
|
|
|
$
|
15.05
|
|
|
$
|
16.67
|
|
|
$
|
15.72
|
US Gulf Coast Unleaded Gasoline (per gallon)
|
|
$
|
1.58
|
|
|
$
|
2.67
|
|
|
$
|
1.66
|
|
|
$
|
2.72
|
Ultra low sulfur diesel (per gallon)
|
|
$
|
1.51
|
|
|
$
|
2.80
|
|
|
$
|
1.68
|
|
|
$
|
2.88
|
Natural gas (per MMBTU)
|
|
$
|
2.75
|
|
|
$
|
3.97
|
|
|
$
|
2.78
|
|
|
$
|
4.57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Logistics Segment
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Pipelines & Transportation: (average bpd)
|
|
|
|
|
|
|
|
|
Lion Pipeline System:
|
|
|
|
|
|
|
|
|
Crude pipelines (non-gathered)
|
|
54,973
|
|
|
57,254
|
|
|
55,168
|
|
|
47,098
|
Refined products pipelines to Enterprise Systems
|
|
54,397
|
|
|
65,439
|
|
|
56,294
|
|
|
52,490
|
SALA Gathering System
|
|
20,264
|
|
|
22,258
|
|
|
21,031
|
|
|
22,221
|
East Texas Crude Logistics System
|
|
19,078
|
|
|
4,361
|
|
|
22,270
|
|
|
6,181
|
El Dorado Rail Offloading Rack
|
|
—
|
|
|
—
|
|
|
1,474
|
|
|
—
|
|
|
|
|
|
|
|
|
|
Wholesale Marketing & Terminalling:
|
|
|
|
|
|
|
|
|
East Texas - Tyler Refinery sales volumes (average bpd)(3)
|
|
75,313
|
|
|
59,659
|
|
|
56,553
|
|
|
61,097
|
West Texas marketing throughputs (average bpd)
|
|
18,824
|
|
|
17,923
|
|
|
17,661
|
|
|
17,132
|
West Texas marketing margin per barrel
|
|
$
|
1.50
|
|
|
$
|
2.20
|
|
|
$
|
1.41
|
|
|
$
|
4.09
|
Terminalling throughputs (average bpd)(4)
|
|
126,051
|
|
|
95,024
|
|
|
102,534
|
|
|
94,656
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Segment
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Number of stores (end of period)
|
|
355
|
|
|
366
|
|
|
355
|
|
|
366
|
|
Average number of stores
|
|
358
|
|
|
364
|
|
|
360
|
|
|
362
|
|
Retail fuel sales (thousands of gallons)
|
|
117,942
|
|
|
116,108
|
|
|
342,756
|
|
|
323,333
|
|
Average retail gallons per average number of stores (in thousands)
|
|
329
|
|
|
319
|
|
|
952
|
|
|
893
|
|
Retail fuel margin ($ per gallon)
|
|
$
|
0.217
|
|
|
$
|
0.194
|
|
|
$
|
0.178
|
|
|
$
|
0.173
|
|
Merchandise sales (in thousands)
|
|
$
|
111,330
|
|
|
$
|
107,042
|
|
|
$
|
315,086
|
|
|
$
|
300,136
|
|
Merchandise margin %
|
|
28.0
|
%
|
|
27.7
|
%
|
|
28.3
|
%
|
|
28.1
|
%
|
Change in same-store fuel gallons sold
|
|
0.4
|
%
|
|
5.1
|
%
|
|
2.7
|
%
|
|
(0.3
|
)%
|
Change in same-store merchandise sales
|
|
3.8
|
%
|
|
2.5
|
%
|
|
3.6
|
%
|
|
3.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Sales volume includes 6,541 bpd and 3,880 bpd sold to the logistics
segment during the three and nine months ended September 30, 2015
and 1,810 bpd and 1,117 bpd in the three and nine months ended
September 30, 2014, respectively. Sales volume also includes sales
of 1,477 bpd and 2,407 bpd of intermediate and finished products to
the El Dorado refinery during the three and nine months ended
September 30, 2015 and 2,518 bpd and 3,746 bpd of intermediate and
finished products to the El Dorado refinery in the three months and
nine months ended September 30, 2014, respectively. Sales volume
excludes 61 bpd and 2,185 bpd of wholesale activity during the three
and nine months ended September 30, 2015, respectively. There was no
wholesale activity during the three and nine months ended September
30, 2014.
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Sales volume includes 3,112 bpd and 3,686 bpd of produced finished
product sold to the retail segment during the three and nine months
ended September 30, 2015, respectively, and 2,792 bpd and 3,559 bpd
during the three and nine months ended September 30, 2014,
respectively. Sales volume also includes 2,027 and 2,244 bpd of
produced finished product sold to the Tyler refinery during the
three and nine months ended September 30, 2015, respectively, and
945 and 1,420 bpd during the three and nine months ended September
30, 2014, respectively. Sales volume excludes 27,325 bpd and 25,902
bpd of wholesale activity during the three and nine months ended
September 30, 2015, respectively, and 14,597 bpd and 13,319 bpd of
wholesale activity during the three and nine months ended September
30, 2014, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Excludes jet fuel and petroleum coke
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
Consists of terminalling throughputs at our Tyler, Big Sandy and
Mount Pleasant, Texas, North Little Rock and El Dorado, Arkansas,
and Memphis and Nashville, Tennessee terminals. Throughputs at the
El Dorado, Arkansas terminal are for the period from February 10,
2014 through September 30, 2015. Prior to February 10, 2014, the
logistics segment did not record revenue for throughput at the El
Dorado, Arkansas terminal. Throughputs for the Mount Pleasant
Terminal are following its acquisition on October 1, 2014. Barrels
per day are calculated for only the days we operated each terminal.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20151103006946/en/ Copyright Business Wire 2015
Source: Business Wire
(November 3, 2015 - 4:55 PM EST)
News by QuoteMedia
www.quotemedia.com
|