Delek US (NYSE:DK) Posts Quarterly Earnings Results, Beats Expectations By $2.81 EPS

Delek US (NYSE:DK) issued its earnings results on Wednesday. The oil and gas company reported $5.48 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.67 by $2.81, FiscalAI reports. The company had revenue of $4.09 billion for the quarter, compared to analyst estimates of $3.44 billion. Delek US had a negative net margin of 0.48% and a positive return on equity of 22.90%. The company’s revenue for the quarter was up 47.9% on a year-over-year basis. During the same quarter last year, the firm earned ($0.56) EPS.

Here are the key takeaways from Delek US’s conference call:

• Strong second-quarter results: Delek reported adjusted net income of approximately $344 million, or $5.48 per share, and adjusted EBITDA of $639 million. Excluding the 50% RVO adjustment, adjusted EBITDA was about $490 million, driven by stronger refining margins, higher throughput, and improved supply and marketing results.
• Record logistics performance and growth: Delek Logistics delivered approximately $144 million in quarterly adjusted EBITDA, its best result in company history, with momentum across crude, gas, and water operations. Management said the nearly completed sour-gas gathering, compression, processing, and AGI solution should support a step-up in gas volumes and future Delaware Basin growth.
• The Enterprise Optimization Plan contributed approximately $60 million to second-quarter P&L, while management said it is pursuing another meaningful improvement in free cash flow. The company expressed increasing confidence in mid-cycle free cash flow of roughly $650 million to $700 million, including DKL distributions.
• Delek returned capital through approximately $16 million of dividends and $20 million of buybacks during the quarter, while reducing standalone net debt by $72 million through a term-loan refinancing and paydown. Management reiterated its strategy of maintaining dividends, balancing debt reduction with repurchases, and avoiding excess cash accumulation.
• Third-quarter refining margins may face pressure as the steep backwardation seen in the second quarter has largely flattened; management indicated that the change could reduce refining margin capture. The company also remains dependent on pending Small Refinery Exemption decisions for 2025 and beyond to mitigate elevated RVO costs, with the timing and value of potential relief still uncertain.

Delek US Stock Performance

NYSE:DK opened at $60.56 on Thursday. The stock’s 50-day simple moving average is $53.67 and its 200 day simple moving average is $44.44. The firm has a market capitalization of $3.71 billion, a PE ratio of -66.55, a price-to-earnings-growth ratio of 1.74 and a beta of 0.57. The company has a quick ratio of 0.49, a current ratio of 0.76 and a debt-to-equity ratio of 10.51. Delek US has a twelve month low of $20.06 and a twelve month high of $68.93.

Delek US Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, August 10th. Investors of record on Monday, August 3rd will be given a dividend of $0.255 per share. This represents a $1.02 annualized dividend and a dividend yield of 1.7%. The ex-dividend date is Monday, August 3rd. Delek US’s dividend payout ratio is currently -112.09%.

Analysts Set New Price Targets

A number of research firms recently issued reports on DK. Morgan Stanley increased their price objective on Delek US from $41.00 to $45.00 and gave the stock an “equal weight” rating in a report on Friday, June 12th. The Goldman Sachs Group raised their price target on shares of Delek US from $58.00 to $73.00 and gave the stock a “buy” rating in a research note on Friday, July 17th. Wall Street Zen cut shares of Delek US from a “strong-buy” rating to a “buy” rating in a research note on Saturday, August 1st. Weiss Ratings lowered shares of Delek US from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Monday, May 11th. Finally, Citigroup reissued a “neutral” rating on shares of Delek US in a research report on Thursday. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, six have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $51.92.

Insider Activity

In related news, EVP Reuven Spiegel sold 10,000 shares of Delek US stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $44.36, for a total transaction of $443,600.00. Following the sale, the executive vice president directly owned 48,372 shares in the company, valued at $2,145,781.92. This trade represents a 17.13% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Vicky Sutil sold 3,061 shares of the business’s stock in a transaction on Monday, June 1st. The stock was sold at an average price of $46.00, for a total transaction of $140,806.00. Following the completion of the sale, the director directly owned 31,239 shares in the company, valued at approximately $1,436,994. This represents a 8.92% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 39,270 shares of company stock valued at $1,828,718. Corporate insiders own 3.56% of the company’s stock.

Institutional Investors Weigh In On Delek US

Large investors have recently added to or reduced their stakes in the business. ION Fund Management Ltd bought a new stake in shares of Delek US during the fourth quarter valued at approximately $52,427,000. Arrowstreet Capital Limited Partnership grew its position in Delek US by 6,300.8% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 1,306,269 shares of the oil and gas company’s stock valued at $42,153,000 after purchasing an additional 1,285,861 shares during the period. Price T Rowe Associates Inc. MD grew its position in Delek US by 1,516.7% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 996,059 shares of the oil and gas company’s stock valued at $29,544,000 after purchasing an additional 934,448 shares during the period. Voloridge Investment Management LLC bought a new stake in Delek US during the 3rd quarter valued at $23,308,000. Finally, Squarepoint Ops LLC bought a new stake in Delek US during the 4th quarter valued at $21,371,000. Institutional investors and hedge funds own 97.01% of the company’s stock.

Delek US Company Profile

Delek US Holdings, Inc (NYSE: DK) is an independent downstream energy company engaged in the refining, logistics, and marketing of petroleum products. Headquartered in Brentwood, Tennessee, the company operates a network of inland refineries, storage terminals and pipelines, and convenience store locations. Delek US focuses on converting crude oil into a variety of finished products, including gasoline, diesel, jet fuel, asphalt and renewable fuels, serving wholesale and retail customers across the United States.

In its refining segment, Delek US owns and operates four inland refineries located in Texas and Arkansas.