- Completed the acquisition of 48 percent ownership in Alon USA in
May 2015
- Tyler refinery total throughput reaches record level of 75,300
barrels per day
- El Dorado sales volume reaches record level of 87,600 barrels
per day
Company Website:
http://www.delekus.com
BRENTWOOD, Tenn. -- (Business Wire)
Delek US Holdings, Inc. (NYSE: DK) (“Delek US”) today announced
financial results for its second quarter ended June 30, 2015. Delek US
reported a second quarter net income of $48.3 million, or $0.79 per
diluted share, versus net income of $54.9 million, or $0.92 per diluted
share, for the quarter ended June 30, 2014. Operating income in the
second quarter 2014 included a one-time non-cash expense of
approximately $22.6 million before tax related to the financial
settlement under the restated supply and offtake agreement with J Aron.
Second quarter 2015 results included a $15.3 million net hedging loss,
of which $13.4 million was unrealized. There was approximately $22.8
million of costs that reduced performance in the period, which includes
the unrealized hedging loss, expenses related to the Alon USA
transaction, higher depreciation due to asset disposals and
unanticipated pipeline related expenses.
The effect of the Alon USA transaction for the period from May 14, 2015
to June 30, 2015 is included in results for the second quarter 2015.
Equity income related to the ownership in Alon USA was $9.2 million,
which was reduced by $1.7 million of depreciation expense for a net
pre-tax equity income of $7.5 million. As part of the financing of this
transaction, interest expense increased by $6.2 million in the second
quarter 2015, which included $3.9 million of one-time interest expense
related to financing costs.
Results in the second quarter 2015 benefited from increased throughput
at the Tyler, Texas refinery and a higher WTI Gulf Coast 5-3-2 crack
spread on a year-over-year basis. In the first quarter 2015, as part of
the inventory management strategy, crude oil and product inventory was
built during a period of lower prices. In the second quarter 2015 there
was a 1.2 million barrel inventory reduction that occurred, consisting
primarily of crude oil, during a period of rising prices. This change in
inventory during the second quarter 2015 was a portion of a $19.0
million net inventory benefit during the period. An offsetting factor
was a narrower discount between Midland WTI and Cushing WTI on a
year-over-year basis, which lowered the performance in the refining
segment.
Uzi Yemin, Chairman, President and Chief Executive Officer of Delek US
stated, "During the second quarter our Tyler refinery reached a total
throughput record following the completion of a 15,000 barrel per day
expansion in March 2015. In addition, our refining segment achieved an
operating cost of approximately $4.00 per barrel in the quarter. We took
additional steps to improve our crude sourcing flexibility at the El
Dorado refinery through a new agreement that will provide access to the
recently reversed Exxon North pipeline. This new access allowed Cushing
WTI to be delivered from Longview, Texas to Finney, Louisiana and then
to El Dorado beginning in July 2015. Lastly, same store fuel gallons and
merchandise sales increased year-over-year in our Retail segment and we
made progress on the joint venture crude oil pipeline projects in our
Logistics segment."
Yemin concluded, "Also in May we completed a strategic step in our
growth plan with the acquisition of 48 percent of the outstanding shares
of Alon USA, which added approximately $7.5 million of pre-tax income
during the quarter. We look forward to continuing to work with Alon's
board and management team, and are excited about the potential to create
additional value in the future. Our financial position remains strong,
and we expect to see declining capital expenditure needs in the second
half of the year, which should create the potential for increased free
cash flow from our operations. These factors should provide support for
our growth initiatives, while allowing us the flexibility to continue to
return cash to our shareholders."
Alon Transaction
On May 14, 2015, Delek US purchased from Alon Israel Oil Company Ltd.
(“Alon Israel”) approximately 33.7 million shares, or approximately 48
percent of the outstanding shares, of Alon USA Energy, Inc. (NYSE: ALJ)
(“Alon USA”) common stock. Consideration paid to Alon Israel included
6.0 million restricted shares of Delek US, a $145.0 million unsecured
promissory note and $200.0 million in cash. The cash payment was
financed through a $176.0 million increase in Lion Oil's term loan
facility and cash on hand.
In addition to the effects discussed above of this transaction on
interest and depreciation expense, the weighted average diluted shares
outstanding for Delek US increased by approximately 3.0 million in the
second quarter 2015 reflecting a higher share count for the 48 days that
followed the Alon USA transaction. The depreciation expense is estimated
to be approximately $3.4 million on a quarterly basis going forward, but
is subject to change based on the final determination of fair value as
of the acquisition date.
Regular Quarterly Dividend
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 August 25, 2015 will receive this cash dividend payable on
September 15, 2015.
Liquidity
As of June 30, 2015, Delek US had a cash balance of $378.4 million and
total debt of $971.9 million, resulting in net debt of $593.5 million.
This compares to $297.8 million of net debt at March 31, 2015. As of
June 30, 2015, Delek US' subsidiary, Delek Logistics Partners, LP (NYSE:
DKL) ("Delek Logistics"), had $316.9 million of debt, which is included
in the consolidated amounts on Delek US' balance sheet. Excluding Delek
Logistics, Delek US had approximately $378.3 million in cash and $655.0
million of debt, or a $276.7 million net debt position. During the
second quarter 2015, the increase in debt was primarily associated with
the purchase of approximately 48 percent of the outstanding shares of
Alon USA.
Refining Segment
|
|
|
| |
| | | |
Three Months Ended June 30,
|
Contribution Margin
| | | |
2015
|
|
|
|
2014
|
($ in millions) | | | | |
|
|
| |
Refining Segment
| | | |
$112.0
| | | |
$122.9
|
Tyler Refinery
| | | |
$75.2
| | | |
$84.6
|
El Dorado Refinery
| | | |
$36.6
| | | |
$35.8
|
| | | | | | | |
|
Refining contribution margin decreased to $112.0 million from $122.9
million in the second quarter 2014. This decline in year-over-year
performance can be attributed to several factors. First, the Midland
discount to WTI Cushing narrowed on a year-over-year basis. Second, a
net hedging loss of $15.2 million occurred in the second quarter 2015
compared to an $8.5 million hedging gain in the prior year period. In
the prior year period, the contribution margin at El Dorado was reduced
by a before-tax $22.6 million one-time non-cash expense related to the
financial settlement of the restated supply and offtake agreement with J
Aron.
The WTI Midland crude discount to WTI Cushing declined on a
year-over-year basis, averaging $0.60 per barrel in second quarter 2015
compared to an average of $8.37 per barrel in the second quarter 2014.
This decline in the Midland differential was partially offset by a crude
oil futures market that was in contango of $1.77 per barrel in the
second quarter 2015 compared to backwardation of $0.92 per barrel in the
second quarter 2014. The Gulf Coast 5-3-2 crack spread averaged $18.60
per barrel during the second quarter 2015, an increase from $17.10 per
barrel during second quarter 2014.
Tyler, Texas Refinery
|
|
|
| |
Operating Highlights
| | | |
Three Months Ended June 30,
|
| | | |
2015
|
|
|
|
2014
|
Crude Throughput, bpd
| | | |
69,685
| |
|
|
|
58,021
|
Total Throughput, bpd
| | | |
75,304
| | | | |
65,808
|
Total Sales Volume, bpd
| | | |
71,588
| | | | |
65,969
|
| | | | | | | |
|
Refining Margin, $/bbl sold
| | | |
$15.36
| | | |
$18.61
|
| | | | | | | |
|
Direct Operating Expense, $ in millions
| | | |
$24.9
| | | |
$27.1
|
Direct Operating Expense, $/bbl sold
| | | |
$3.82
| | | |
$4.52
|
| | | | | | | |
|
During the second 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 decreased primarily due to lower utility, chemical/catalysts and
insurance expense on a year-over year-basis.
Following the completion of the turnaround and expansion project, total
depreciation increased for Delek US beginning in the second quarter
2015. Approximately $1.3 million of this amount in the second quarter
2015 was one-time accelerated depreciation expense related to disposal
of equipment associated with work during the Tyler turnaround.
El Dorado, Arkansas Refinery
|
|
|
| |
Operating Highlights
| | | |
Three Months Ended June 30,
|
| | | |
2015
|
|
|
|
2014
|
Crude Throughput, bpd
| | | |
74,450
| |
|
|
|
79,010
|
Total Throughput, bpd
| | | |
80,436
| | | | |
82,324
|
Total Sales Volume, bpd
| | | |
87,565
| | | | |
85,812
|
| | | | | | | |
|
Refining Margin, $/bbl sold
| | | |
$8.82
| | | |
$8.43
|
| | | | | | | |
|
Direct Operating Expense, $ in millions
| | | |
$33.7
| | | |
$30.0
|
Direct Operating Expense, $/bbl sold
| | | |
$4.23
| | | |
$3.85
|
| | | | | | | |
|
During the second quarter 2015, while crude throughput was lower on a
year-over-year basis, sales volume increased to a record level of
approximately 87,600 barrels per day. In the second quarter 2015,
refining margin was reduced by approximately $15.0 million due to higher
cost asphalt inventory that was sold during the period. In the prior
year period, the refining margin was reduced by $22.6 million, or $2.89
per barrel, as a result of the financial settlement of the supply and
offtake agreement. Direct operating expense increased year-over-year due
to maintenance, environmental remediation and employee related expenses
compared to the second quarter 2014. Included in the second quarter
2015, are approximately $4.2 million of unanticipated pipeline expenses
that are primarily related to environmental remediation costs in the
period.
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 second quarter 2015
was $28.8 million compared to $30.1 million in the second quarter 2014.
On a year-over-year basis, results benefited from Delek Logistics’
acquisitions 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. Additionally, new
agreements put in place on January 1, 2015 increased contribution from
the Paline Pipeline, and higher throughputs on assets supporting the
Tyler, Texas refinery benefited results. These factors were more than
offset by a lower gross margin per barrel in the west Texas wholesale
business.
Retail Segment
|
|
|
| |
| | | |
Three Months Ended June 30,
|
Retail Operating Highlights
| | | |
2015
|
|
|
|
2014
|
Contribution margin, $ in millions
| | | |
$14.3
|
|
|
|
$16.7
|
Operating expenses, $ in millions
| | | |
$35.6
| | | |
$34.8
|
| | | | | | | |
|
Merchandise margin
| | | |
28.7
|
%
| | | |
28.4
|
%
|
Fuel margin, per gallon
| | | |
$0.153
| | | |
$0.193
|
| | | | | | | |
|
Store count (end of period)
| | | |
360
| | | | |
362
| |
| | | | | | | | | |
|
Retail segment contribution margin decreased year-over-year primarily
due to lower fuel margins and higher operating expenses. Operating
expense increased primarily due to workers compensation and general
liability claim settlements, which was partially offset by lower credit
card expense on a year-over-year basis. Fuel gallons sold increased to
116.2 million from 109.4 million in the prior-year period and
merchandise sales increased to $109.2 million compared to $103.7
million. On a same store sales basis, fuel gallons sold increased 2.6%
and merchandise sales increased 3.6% from second quarter 2014. The
increase in same store fuel gallons was primarily driven by improved
performance from the large-format store category on a year-over-year
basis. At the end of the second quarter 2015, there were a total of 64
large-format stores in the portfolio.
Second Quarter 2015 Results | Conference Call
Information
Delek US will hold a conference call to discuss its second quarter 2015
results on Tuesday, August 4, 2015 at 11:30 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 November 4, 2015 by dialing
(855) 859-2056, passcode 69603058. 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) second
quarter earnings conference call that will be held on August 4, 2015 at
7:00 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 360 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) |
| | | | | |
|
| | | June 30, 2015 | | | December 31, 2014 |
| | | (In millions, except share and per share data) |
ASSETS | | | | | | |
Current assets:
| | | | | | |
Cash and cash equivalents
| | |
$
|
378.4
| | | |
$
|
444.1
| |
Accounts receivable
| | |
284.0
| | | |
197.0
| |
Inventory
| | |
473.5
| | | |
469.6
| |
Other current assets
| | |
117.6
|
| | |
136.7
|
|
Total current assets
| | |
1,253.5
|
| | |
1,247.4
|
|
Property, plant and equipment:
| | | | | | |
Property, plant and equipment
| | |
2,033.8
| | | |
1,952.9
| |
Less: accumulated depreciation
| | |
(519.4
|
)
| | |
(509.6
|
)
|
Property, plant and equipment, net
| | |
1,514.4
|
| | |
1,443.3
|
|
Goodwill
| | |
73.9
| | | |
73.9
| |
Other intangibles, net
| | |
27.8
| | | |
21.4
| |
Equity method investments
| | |
598.6
| | | |
—
| |
Other non-current assets
| | |
113.8
|
| | |
105.1
|
|
Total assets
| | |
$
|
3,582.0
|
| | |
$
|
2,891.1
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | |
Current liabilities:
| | | | | | |
Accounts payable
| | |
$
|
503.9
| | | |
$
|
476.7
| |
Current portion of long-term debt and capital lease obligations
| | |
103.7
| | | |
56.4
| |
Obligation under Supply and Offtake Agreement
| | |
189.1
| | | |
200.9
| |
Accrued expenses and other current liabilities
| | |
142.4
|
| | |
122.9
|
|
Total current liabilities
| | |
939.1
|
| | |
856.9
|
|
Non-current liabilities:
| | | | | | |
Long-term debt and capital lease obligations, net of current portion
| | |
868.2
| | | |
533.3
| |
Environmental liabilities, net of current portion
| | |
8.3
| | | |
8.5
| |
Asset retirement obligations
| | |
9.3
| | | |
9.2
| |
Deferred tax liabilities
| | |
273.0
| | | |
266.3
| |
Other non-current liabilities
| | |
32.2
|
| | |
18.5
|
|
Total non-current liabilities
| | |
1,191.0
|
| | |
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,
66,836,208 shares and 60,637,525 shares issued at June 30, 2015 and
December 31, 2014, respectively
| | |
0.7
| | | |
0.6
| |
Additional paid-in capital
| | |
632.6
| | | |
395.1
| |
Accumulated other comprehensive loss
| | |
(13.4
|
)
| | |
(12.6
|
)
|
Treasury stock, 3,365,561 shares, at cost, as of both June 30, 2015
and December 31, 2014
| | |
(112.6
|
)
| | |
(112.6
|
)
|
Retained earnings
| | |
745.4
| | | |
731.2
| |
Non-controlling interest in subsidiaries
| | |
199.2
|
| | |
196.7
|
|
Total stockholders’ equity
| | |
1,451.9
|
| | |
1,198.4
|
|
Total liabilities and stockholders’ equity
| | |
$
|
3,582.0
|
| | |
$
|
2,891.1
|
|
| | | | | | | | | |
|
|
|
| |
|
| |
Delek US Holdings, Inc. Consolidated Statements of Income |
| | | | | |
|
| | | Three Months Ended June 30, | | | Six Months Ended June 30, |
| | | | |
| | | 2015 |
|
| 2014 | | | 2015 |
|
| 2014 |
| | | (Unaudited) | | | (Unaudited) |
| | | (In millions, except share and per share data) |
Net sales
| | |
$
|
1,693.1
| | | |
$
|
2,374.7
| | | |
$
|
2,843.7
| | | |
$
|
4,240.4
| |
Operating costs and expenses:
| | | | | | | | | | | | |
Cost of goods sold
| | |
1,438.2
| | | |
2,108.3
| | | |
2,444.3
| | | |
3,751.6
| |
Operating expenses
| | |
106.0
| | | |
102.2
| | | |
197.4
| | | |
200.7
| |
General and administrative expenses
| | |
34.3
| | | |
30.0
| | | |
67.0
| | | |
61.6
| |
Depreciation and amortization
| | |
34.9
| | | |
28.2
| | | |
63.2
| | | |
52.8
| |
Other operating income, net
| | |
(0.1
|
)
| | |
—
|
| | |
(0.1
|
)
| | |
—
|
|
Total operating costs and expenses
| | |
1,613.3
|
| | |
2,268.7
|
| | |
2,771.8
|
| | |
4,066.7
|
|
Operating income
| | |
79.8
| | | |
106.0
| | | |
71.9
| | | |
173.7
| |
Interest expense
| | |
17.3
| | | |
10.1
| | | |
27.4
| | | |
19.7
| |
Interest income
| | |
(0.2
|
)
| | |
—
| | | |
(0.6
|
)
| | |
(0.4
|
)
|
Income from equity method investments
| | |
(7.4
|
)
| | |
—
| | | |
(7.4
|
)
| | |
—
| |
Other (income) loss, net
| | |
(0.1
|
)
| | |
0.1
|
| | |
(1.0
|
)
| | |
—
|
|
Total non-operating expenses, net
| | |
9.6
|
| | |
10.2
|
| | |
18.4
|
| | |
19.3
|
|
Income before income tax expense
| | |
70.2
| | | |
95.8
| | | |
53.5
| | | |
154.4
| |
Income tax expense
| | |
15.1
|
| | |
32.6
|
| | |
9.1
|
| | |
51.9
|
|
Net income
| | |
55.1
| | | |
63.2
| | | |
44.4
| | | |
102.5
| |
Net income attributed to non-controlling interest
| | |
6.8
|
| | |
8.3
|
| | |
12.2
|
| | |
13.9
|
|
Net income attributable to Delek
| | |
$
|
48.3
|
| | |
$
|
54.9
|
| | |
$
|
32.2
|
| | |
$
|
88.6
|
|
Basic earnings per share:
| | | | | | | | | | | | |
Basic earnings per share
| | |
$
|
0.80
|
| | |
$
|
0.93
|
| | |
$
|
0.55
|
| | |
$
|
1.49
|
|
Diluted earnings per share
| | |
$
|
0.79
|
| | |
$
|
0.92
|
| | |
$
|
0.54
|
| | |
$
|
1.48
|
|
Weighted average common shares outstanding:
| | | | | | | | | | | | |
Basic
| | |
60,555,444
|
| | |
59,283,465
|
| | |
58,931,705
|
| | |
59,266,256
|
|
Diluted
| | |
61,114,471
|
| | |
59,875,261
|
| | |
59,470,929
|
| | |
59,869,979
|
|
Dividends declared per common share outstanding
| | |
$
|
0.15
|
| | |
$
|
0.25
|
| | |
$
|
0.30
|
| | |
$
|
0.50
|
|
| | | | | | | | | | | | | | | | | | | |
|
|
Delek US Holdings, Inc. |
Consolidated Statements of Cash Flows
|
(In millions)
|
|
|
|
| |
|
| |
|
|
|
| |
| | | | | | | Six Months Ended June 30, |
| | | | | | | 2015 | | | |
| 2014 |
Cash Flow Data | | | (Unaudited) |
Net cash provided by operating activities
| | |
$
|
92.4
| | | | | |
$
|
172.0
| |
Net cash used in investing activities
| | |
(362.9
|
)
| | | | |
(164.3
|
)
|
Net cash provided by financing activities
| | |
204.8
|
| | | | |
152.4
|
|
|
Net (decrease) increase in cash and cash equivalents
| | |
$
|
(65.7
|
)
| | | | |
$
|
160.1
|
|
| | | | | | | | | | | | |
|
|
Delek US Holdings, Inc. |
Segment Data (Unaudited)
|
(In millions)
|
|
|
|
| Three Months Ended June 30, 2015 |
| | | Refining |
|
| Retail |
|
| Logistics |
|
| Corporate, Other and Eliminations |
|
| Consolidated |
Net sales (excluding intercompany fees and sales)
| | |
$
|
1,147.9
| | | |
$
|
409.9
| | | |
$
|
134.1
| | | |
$
|
1.2
| | | |
$
|
1,693.1
| |
Intercompany fees and sales
| | |
188.9
| | | |
—
| | | |
38.0
| | | |
(226.9
|
)
| | |
—
| |
Operating costs and expenses:
| | | | | | | | | | | | | | | |
Cost of goods sold
| | |
1,164.8
| | | |
360.0
| | | |
132.5
| | | |
(219.1
|
)
| | |
1,438.2
| |
Operating expenses
| | |
60.0
|
| | |
35.6
|
| | |
10.8
|
| | |
(0.4
|
)
| | |
106.0
|
|
Segment contribution margin
| | |
$
|
112.0
|
| | |
$
|
14.3
|
| | |
$
|
28.8
|
| | |
$
|
(6.2
|
)
| | |
148.9
| |
General and administrative expenses
| | | | | | | | | | | | | | |
34.3
| |
Depreciation and amortization
| | | | | | | | | | | | | | |
34.9
| |
Other operating income
| | | | | | | | | | | | | | |
(0.1
|
)
|
Operating income
| | | | | | | | | | | | | | |
$
|
79.8
|
|
Total assets
| | |
$
|
2,060.9
|
| | |
$
|
452.3
|
| | |
$
|
352.0
|
| | |
$
|
716.8
|
| | |
$
|
3,582.0
|
|
Capital spending (excluding business combinations)
| | |
$
|
38.2
|
| | |
$
|
2.2
|
| | |
$
|
6.0
|
| | |
$
|
1.3
|
| | |
$
|
47.7
|
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
|
|
| |
| | | Three Months Ended June 30, 2014 |
| | | Refining |
|
| Retail |
|
| Logistics |
|
| Corporate, Other and Eliminations |
|
| Consolidated |
Net sales (excluding intercompany fees and sales)
| | |
$
|
1,659.2
| | | |
$
|
508.6
| | | |
$
|
207.4
| | | |
$
|
(0.5
|
)
| | |
$
|
2,374.7
|
Intercompany fees and sales
| | |
187.4
| | | |
—
| | | |
29.0
| | | |
(216.4
|
)
| | |
—
|
Operating costs and expenses:
| | | | | | | | | | | | | | | |
Cost of goods sold
| | |
1,665.2
| | | |
457.1
| | | |
196.6
| | | |
(210.6
|
)
| | |
2,108.3
|
Operating expenses
| | |
58.5
|
| | |
34.8
|
| | |
9.7
|
| | |
(0.8
|
)
| | |
102.2
|
Segment contribution margin
| | |
$
|
122.9
|
| | |
$
|
16.7
|
| | |
$
|
30.1
|
| | |
$
|
(5.5
|
)
| | |
164.2
|
General and administrative expenses
| | | | | | | | | | | | | | |
30.0
|
Depreciation and amortization
| | | | | | | | | | | | | | |
28.2
|
Operating income
| | | | | | | | | | | | | | |
$
|
106.0
|
Total assets
| | |
$
|
2,084.3
|
| | |
$
|
466.3
|
| | |
$
|
334.6
|
| | |
$
|
274.4
|
| | |
$
|
3,159.6
|
Capital spending (excluding business combinations)
| | |
$
|
23.1
|
| | |
$
|
6.5
|
| | |
$
|
2.0
|
| | |
$
|
7.5
|
| | |
$
|
39.1
|
| | | | | | | | | | | | | | | | | | | | | | | |
|
|
Delek US Holdings, Inc. |
Segment Data (Unaudited)
|
(In millions)
|
|
|
|
| Six Months Ended June 30, 2015 |
| | | Refining |
|
| Retail |
|
| Logistics |
|
| Corporate, Other and Eliminations |
|
| Consolidated |
Net sales (excluding intercompany fees and sales)
| | |
$
|
1,848.6
| | | |
$
|
747.9
| | | |
$
|
245.3
| | | |
$
|
1.9
| | | |
$
|
2,843.7
| |
Intercompany fees and sales
| | |
315.2
| | | |
—
| | | |
70.3
| | | |
(385.5
|
)
| | |
—
| |
Operating costs and expenses:
| | | | | | | | | | | | | | | |
Cost of goods sold
| | |
1,921.7
| | | |
653.2
| | | |
240.9
| | | |
(371.5
|
)
| | |
2,444.3
| |
Operating expenses
| | |
108.2
|
| | |
68.1
|
| | |
21.6
|
| | |
(0.5
|
)
| | |
197.4
|
|
Segment contribution margin
| | |
$
|
133.9
|
| | |
$
|
26.6
|
| | |
$
|
53.1
|
| | |
$
|
(11.6
|
)
| | |
$
|
202.0
| |
General and administrative expenses
| | | | | | | | | | | | | | |
67.0
| |
Depreciation and amortization
| | | | | | | | | | | | | | |
63.2
| |
Other operating income
| | | | | | | | | | | | | | |
(0.1
|
)
|
Operating income
| | | | | | | | | | | | | | |
$
|
71.9
|
|
| | | | | | | | | | | | | | |
|
Capital spending (excluding business combinations)
| | |
$
|
123.2
|
| | |
$
|
3.5
|
| | |
$
|
9.8
|
| | |
$
|
1.9
|
| | |
$
|
138.4
|
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
|
|
| |
| | | Six Months Ended June 30, 2014 |
| | | Refining |
|
| Retail |
|
| Logistics |
|
| Corporate, Other and Eliminations |
|
| Consolidated |
Net sales (excluding intercompany fees and sales)
| | |
$
|
2,914.8
| | | |
$
|
940.2
| | | |
$
|
385.7
| | | |
$
|
(0.3
|
)
| | |
$
|
4,240.4
|
Intercompany fees and sales
| | |
294.6
| | | |
—
| | | |
54.2
| | | |
(348.8
|
)
| | |
—
|
Operating costs and expenses:
| | | | | | | | | | | | | | | |
Cost of goods sold
| | |
2,869.7
| | | |
850.6
| | | |
368.8
| | | |
(337.5
|
)
| | |
3,751.6
|
Operating expenses
| | |
116.3
|
| | |
67.0
|
| | |
19.2
|
| | |
(1.8
|
)
| | |
200.7
|
Segment contribution margin
| | |
$
|
223.4
|
| | |
$
|
22.6
|
| | |
$
|
51.9
|
| | |
$
|
(9.8
|
)
| | |
$
|
288.1
|
General and administrative expenses
| | | | | | | | | | | | | | |
61.6
|
Depreciation and amortization
| | | | | | | | | | | | | | |
52.8
|
Other operating income
| | | | | | | | | | | | | | |
—
|
Operating income
| | | | | | | | | | | | | | |
$
|
173.7
|
Capital spending (excluding business combinations)
| | |
$
|
125.0
|
| | |
$
|
13.1
|
| | |
$
|
4.3
|
| | |
$
|
11.0
|
| | |
$
|
153.4
|
| | | | | | | | | | | | | | | | | | | | | | | |
|
|
|
| |
|
| |
Refining Segment | | | Three Months Ended June 30, | | | Six Months Ended June 30, |
| | | 2015 |
|
| 2014 | | | 2015 |
|
| 2014 |
Tyler Refinery | | |
(Unaudited)
| | |
(Unaudited)
|
Days operated in period
| | |
91
| | | |
91
| | | |
181
| | | |
181
|
Total sales volume (average barrels per day)(1) | | |
71,588
| | | |
65,969
| | | |
47,528
| | | |
66,001
|
Products manufactured (average barrels per day):
| | | | | | | | | | | | |
Gasoline
| | |
38,242
| | | |
34,073
| | | |
24,952
| | | |
35,543
|
Diesel/Jet
| | |
30,403
| | | |
26,392
| | | |
18,945
| | | |
25,753
|
Petrochemicals, LPG, NGLs
| | |
3,697
| | | |
2,749
| | | |
2,063
| | | |
2,350
|
Other
| | |
1,788
|
| | |
1,712
|
| | |
1,071
|
| | |
1,741
|
Total production
| | |
74,130
|
| | |
64,926
|
| | |
47,031
|
| | |
65,387
|
Throughput (average barrels per day):
| | | | | | | | | | | | |
Crude oil
| | |
69,685
| | | |
58,021
| | | |
44,271
| | | |
58,148
|
Other feedstocks
| | |
5,619
|
| | |
7,787
|
| | |
3,555
|
| | |
8,127
|
Total throughput
| | |
75,304
|
| | |
65,808
|
| | |
47,826
|
| | |
66,275
|
Per barrel of sales:
| | | | | | | | | | | | |
Tyler refining margin
| | |
$
|
15.36
| | | |
$
|
18.61
| | | |
$
|
13.65
| | | |
$
|
18.04
|
Direct operating expenses
| | |
$
|
3.82
| | | |
$
|
4.52
| | | |
$
|
5.26
| | | |
$
|
4.59
|
| | | | | | | | | | | | | | | | | | |
|
|
|
| |
|
| |
| | | Three Months Ended June 30, | | | Six Months Ended June 30, |
| | | 2015 |
|
| 2014 | | | 2015 |
|
| 2014 |
El Dorado Refinery | | |
(Unaudited)
| | |
(Unaudited)
|
Days in period
| | |
91
| | | |
91
| | | |
181
| | | |
181
|
Total sales volume (average barrels per day)(2) | | |
87,565
| | | |
85,812
| | | |
83,376
| | | |
72,418
|
Products manufactured (average barrels per day):
| | | | | | | | | | | | |
Gasoline
| | |
39,956
| | | |
39,619
| | | |
39,981
| | | |
31,143
|
Diesel
| | |
28,933
| | | |
31,614
| | | |
28,688
| | | |
24,197
|
Petrochemicals, LPG, NGLs
| | |
772
| | | |
1,095
| | | |
719
| | | |
850
|
Asphalt
| | |
7,365
| | | |
6,804
| | | |
7,722
| | | |
4,927
|
Other
| | |
1,763
|
| | |
1,131
|
| | |
1,760
|
| | |
832
|
Total production
| | |
78,789
|
| | |
80,263
|
| | |
78,870
|
| | |
61,949
|
Throughput (average barrels per day):
| | | | | | | | | | | | |
Crude oil
| | |
74,450
| | | |
79,010
| | | |
75,566
| | | |
58,349
|
Other feedstocks
| | |
5,986
|
| | |
3,314
|
| | |
4,690
|
| | |
5,337
|
Total throughput
| | |
80,436
|
| | |
82,324
|
| | |
80,256
|
| | |
63,686
|
Per barrel of sales:
| | | | | | | | | | | | |
El Dorado refining margin
| | |
$
|
8.82
| | | |
$
|
8.43
| | | |
$
|
8.35
| | | |
$
|
8.90
|
Direct operating expenses
| | |
$
|
4.23
| | | |
$
|
3.85
| | | |
$
|
3.99
| | | |
$
|
4.50
|
| | | | | | | | | | | |
|
Pricing statistics (average for the
period presented): | | | | | | | | | | | | |
WTI — Cushing crude oil (per barrel)
| | |
$
|
57.80
| | | |
$
|
103.07
| | | |
$
|
53.33
| | | |
$
|
100.85
|
WTI — Midland crude oil (per barrel)
| | |
$
|
57.41
| | | |
$
|
95.43
| | | |
$
|
52.40
| | | |
$
|
94.05
|
US Gulf Coast 5-3-2 crack spread (per barrel)
| | |
$
|
18.60
| | | |
$
|
17.10
| | | |
$
|
16.81
| | | |
$
|
16.06
|
US Gulf Coast Unleaded Gasoline (per gallon)
| | |
$
|
1.91
| | | |
$
|
2.88
| | | |
$
|
1.70
| | | |
$
|
2.75
|
Ultra low sulfur diesel (per gallon)
| | |
$
|
1.83
| | | |
$
|
2.92
| | | |
$
|
1.76
| | | |
$
|
2.93
|
Natural gas (per MMBTU)
| | |
$
|
2.73
| | | |
$
|
4.59
| | | |
$
|
2.80
| | | |
$
|
4.88
|
| | | | | | | | | | | | | | | | | | |
|
|
|
| |
|
| |
Logistics Segment | | | Three Months Ended June 30, | | | Six Months Ended June 30, |
| | | 2015 |
|
| 2014 | | | 2015 |
|
| 2014 |
| | |
(Unaudited)
| | |
(Unaudited)
|
Pipelines & Transportation: (average bpd) | | | | | | | | | | | | |
Lion Pipeline System:
| | | | | | | | | | | | |
Crude pipelines (non-gathered)
| | |
53,863
| | | |
59,038
| | | |
55,267
| | | |
41,936
|
Refined products pipelines to Enterprise Systems
| | |
58,572
| | | |
59,888
| | | |
57,258
| | | |
45,908
|
SALA Gathering System
| | |
21,305
| | | |
21,300
| | | |
21,421
| | | |
22,201
|
East Texas Crude Logistics System
| | |
28,677
| | | |
3,223
| | | |
23,892
| | | |
7,105
|
El Dorado Rail Offloading Rack
| | |
2,964
| | | |
—
| | | |
2,964
| | | |
—
|
| | | | | | | | | | | |
|
Wholesale Marketing & Terminalling: | | | | | | | | | | | | |
East Texas - Tyler Refinery sales volumes (average bpd)(3) | | |
66,860
| | | |
61,231
| | | |
47,018
| | | |
61,828
|
West Texas marketing throughputs (average bpd)
| | |
17,490
| | | |
17,451
| | | |
17,070
| | | |
16,729
|
West Texas marketing margin per barrel
| | |
$
|
1.31
| | | |
$
|
6.52
| | | |
$
|
1.35
| | | |
$
|
5.06
|
Terminalling throughputs (average bpd)(4) | | |
113,578
| | | |
98,962
| | | |
90,581
| | | |
94,468
|
| | | | | | | | | | | | | | |
|
|
|
| |
|
| |
Retail Segment | | | Three Months Ended June 30, | | | Six Months Ended June 30, |
| | | 2015 |
|
| 2014 | | | 2015 |
|
| 2014 |
| | |
(Unaudited)
| | |
(Unaudited)
|
Number of stores (end of period)
| | |
360
| | | |
362
| | | |
360
| | | |
362
| |
Average number of stores
| | |
360
| | | |
361
| | | |
361
| | | |
361
| |
Retail fuel sales (thousands of gallons)
| | |
116,157
| | | |
109,418
| | | |
224,814
| | | |
207,225
| |
Retail fuel margin ($ per gallon)
| | |
$
|
0.153
| | | |
$
|
0.193
| | | |
$
|
0.158
| | | |
$
|
0.161
| |
Merchandise sales (in thousands)
| | |
$
|
109,209
| | | |
$
|
103,695
| | | |
$
|
203,756
| | | |
$
|
193,094
| |
Merchandise margin %
| | |
28.7
|
%
| | |
28.4
|
%
| | |
28.5
|
%
| | |
28.4
|
%
|
Change in same-store fuel gallons sold
| | |
2.6
|
%
| | |
(1.2
|
)%
| | |
4.0
|
%
| | |
(0.6
|
)%
|
Change in same-store merchandise sales
| | |
3.6
|
%
| | |
3.8
|
%
| | |
3.5
|
%
| | |
5.1
|
%
|
| | | | | | | | | | | | | | | |
|
(1) |
Sales volume includes 4,553 bpd and 2,527 bpd sold to the logistics
segment during the three and six months ended June 30, 2015 and 794
bpd and 765 bpd in the three months and six months ended June 30,
2014, respectively. Sales volume also includes sales of 4,875 bpd
and 2,880 bpd of intermediate and finished products to the El Dorado
refinery during the three months and six months ended June 30, 2015
and 1,744 bpd and 4,370 bpd of intermediate and finished products to
the El Dorado refinery in the three months and six months ended June
30, 2014, respectively. Sales volume excludes 469 bpd and 3,265 bpd
of wholesale activity during the three and six months ended June 30,
2015, respectively. There was no wholesale activity during the three
and six months ended June 30, 2014.
|
|
(2) |
Sales volume includes 3,488 bpd and 3,977 bpd of produced finished
product sold to the retail segment during the three and six months
ended June 30, 2015, respectively, and 4,002 bpd and 3,949 bpd
during the three and six months ended June 30, 2014, respectively.
Sales volume also includes 783 and 2,314 bpd of produced finished
product sold to the Tyler refinery during the three and six months
ended June 30, 2015, respectively, and 1,142 and 1,661 bpd during
the three and six months ended June 30, 2014, respectively. Sales
volume excludes 26,843 bpd and 25,178 bpd of wholesale activity
during the three and six months ended June 30, 2015, respectively,
and 13,805 bpd and 12,669 bpd of wholesale activity during the three
and six months ended June 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 June 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.
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View source version on businesswire.com: http://www.businesswire.com/news/home/20150803006425/en/
Contacts:
Delek US Holdings, Inc.
Keith Johnson, 615-435-1366
Vice
President of Investor Relations
or
Alpha IR Group
Chris
Hodges, 312-445-2870
Founder & CEO
Source: Delek US Holdings, Inc.
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