EX-99.2 3 dk3q24earningsslidesfina.htm EX-99.2 dk3q24earningsslidesfina
Third Quarter 2024 Earnings Conference Call November 6, 2024 Exhibit 99.2


 
2 Disclaimers Forward Looking Statements: Delek US Holdings, Inc. (“Delek US”) and Delek Logistics Partners, LP (“Delek Logistics”; and collectively with Delek US, “we” or “our”) are traded on the New York Stock Exchange in the United States under the symbols “DK” and ”DKL”, respectively. These slides and any accompanying oral or written presentations contain forward-looking statements within the meaning of federal securities laws 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, opportunities, plans, actions and events 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. Words such as "may," "will," "should," "could," "would," "predicts," "potential," "continue," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "appears," "projects" and similar expressions, as well as statements in future tense, identify forward-looking statements. These forward-looking statements include, but are not limited to, the statements regarding the following: financial and operating guidance for future and uncompleted financial periods; financial strength and flexibility; potential for and projections of growth; return of cash to shareholders, stock repurchases and the payment of dividends, including the amount and timing thereof; cost reductions; crude oil throughput; crude oil market trends, including production, quality, pricing, demand, imports, exports and transportation costs; projected capital expenditures; the results of our refinery improvement plan; the performance of our joint venture investments, and the benefits, flexibility, returns and EBITDA therefrom; the potential for, and estimates of cost savings and other benefits from, acquisitions, divestitures, dropdowns and financing activities; projections of third party EBITDA for Delek Logistics; liquidity and EBITDA impacts from strategic and intercompany transactions; long-term value creation from capital allocation; targeted internal rates of return on capital expenditures; execution of strategic initiatives and the benefits therefrom, including cash flow stability from business model transition and approach to renewable diesel; and access to crude oil and the benefits therefrom. Investors are cautioned that the following important factors, among others, may affect these forward-looking statements: uncertainty related to timing and amount of value returned to shareholders; 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, including uncertainties regarding future decisions by OPEC regarding production and pricing disputes between OPEC members and Russia; risks and uncertainties related to the integration by Delek Logistics of the Delaware Gathering business following its acquisition; risks and uncertainties related to the integration by Delek Logistics of the H2O Midstream business following its acquisition; Delek US’ ability to realize cost reductions; risks related to Delek US’ exposure to Permian Basin crude oil, such as supply, gathering, pricing, production and transportation capacity; gains and losses from derivative instruments; management's ability to execute its strategy of growth through acquisitions and the transactional risks associated with acquisitions and dispositions, including risks and uncertainties with respect to the possible benefit of the retail and H20 Midstream transactions; acquired assets may suffer a diminishment in fair value as a result of which we may need to record a write-down or impairment in carrying value of the asset; changes in the scope, costs, and/or timing of capital and maintenance projects; the ability of the Red River joint venture to expand the Red River pipeline; the possibility of litigation challenging renewable fuel standard waivers; the ability to grow the Midland Gathering System; 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 affecting the geographic areas in which we operate; and other risks contained in Delek US’ and Delek Logistics’ 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. Neither Delek US nor Delek Logistics undertakes any obligation to update or revise any such forward-looking statements to reflect events or circumstances that occur, or which Delek US or Delek Logistics becomes aware of, after the date hereof, except as required by applicable law or regulation.


 
3 • Making significant progress on SOTP efforts ◦ Timely Retail sale to maintain B/S strength ◦ Intercompany transactions completed ◦ Making progress towards Midstream deconsolidation • Operations: Another Safe and Reliable Quarter ◦ Original cost reductions exceeding $100mm target ◦ Announced additional at least $100mm profitability improvement through Enterprise optimization plan (EOP) ◦ Big Spring successfully executing its operations improvement plan • Delek Logistics reports another record quarter ◦ Gas plant on track for first half 2025 completion ◦ Seeing further opportunities for growth, including plant expansion and sour gas treatment ◦ Recent DKL primary offering funds DKL's peer leading growth in the Delaware basin Overview Big Spring Refinery, Big Spring, TXEl Dorado Refinery, El Dorado AR


 
SOTP Update 4 ***Placeholder image*** *Ownership % represents a change from 12/31/2023


 
SOTP: Midstream Value Creation 5


 
SOTP: Midstream Value Creation 6 1Q24: Equity Offering: Raised $132mm 3Q24: W2W Drop-Down Amend and Extend 3Q24: Acquired H2O Midstream 4Q24: Equity Offering: Raised $165mm Assumes DKL EBITDA is all 3rd party


 
7 Focus on Free Cash Flow: Enterprise Optimization Plan Efficient (Costs) Stronger (Margins) • Accretive Refining Projects (Minimal Capex) • Commercial Improvements (Market optionality, product slate and optimization) • Refining / Commercial: $50-80mm • Lower G&A (Sustainable restructuring) • Lower Opex • Lower Interest Expense (Balanced approach for cash proceeds) • Cost Efficiencies: $30-40mm EOP Action Items EOP initiatives are focused on improving DK’s financial health & ability to generate free cash flow Expect to be at the run-rate of at least $100mm through EOP in 2H25 EO P: 3 5% EO P: 6 5%


 
8 DK Illustrative Valuation (based on mid-cycle EBITDA & FCF)


 
9 Focus on Free Cash Flow: Lowered 2025 Capex Reduction in capex, along with EOP efforts should enhance cash flow generation


 
Lower Costs & Improved Reliability Guidance Mid-Point 10 7.1% 5.8% 4.0% 3.5% 3.2% 3.3% 3.3% Inflation Rate 3.0% (1) 4Q22 - 3Q24 include discontinued operations expenses related to Retail (1)


 
11 Big Spring Operational Improvements 2Q 2023 - 3Q 2024 *4Q24 throughput value is the midpoint of guidance


 
12 Total Refining Throughput 3Q 2024 vs 2Q 2024 3Q24 Production Margin per bbl. Tyler El Dorado Big Spring Krotz Springs $7.48 $0.66 $6.82 $4.80 316.0 -0.7 -6.7 -1.4 0.4 307.6 2Q24 Tyler El Dorado Big Spring Krotz Springs 3Q24 MBPD *Throughputs are rounded


 
13 Financial Summary 3rd Quarter 2024 Financial Highlights $ in millions (except per share) Net Loss $(76.8) Net Loss Per Share $(1.20) Adjusted Net Loss $(93.0) Adjusted Net Loss per share $(1.45) EBITDA $89.7 Adjusted EBITDA $70.6 Cash from operations $(21.6)


 
14 Adjusted EBITDA 3Q 2024 vs 2Q 2024 ($MM) 3Q24 Adjusted EBITDA Results Refining Logistics Corporate Discontinued Operations (Retail) $10.2 $106.1 $(53.9) $8.2 $107.5 $(31.9) $5.5 $(6.3) $(4.2) $70.6 2Q24 Refining Logistics Corporate Discontinued Operations (Retail) 3Q24 *$MM's are rounded


 
15 Consolidated Cash Flow 3Q 2024 vs 2Q 2024 ($MM) *includes cash and cash equivalents Note: Includes discontinued operations $657.9 $(21.6) $78.4 $322.9 $1,037.6 6/30/2024 Cash Balance* Operating Activities Investing Activities Financing Activities 9/30/2024 Cash Balance*


 
16 Capital Program 2024 YTD Actual & 2024 Forecast $'s in Millions 2024 YTD (1) (2) 2024 Forecast (2) ($ millions) Total Total Refining $ 126 $ 220 Logistics (Delek Logistics Partners) 37 70 Discontinued Operations (Retail) 14 15 Corporate & Other 18 25 Capital expenditures $ 195 $ 330 2024 Actual 78% 22% Regulatory & Sustaining Growth 2024 Forecast 80% 20% Regulatory & Sustaining Growth (1) Excludes a $10.0 million land purchase in connection with a settlement that was in litigation related to a property that we historically operated as an asphalt and marine fuel terminal. See further discussion in the Q2 2024 "Significant Transactions During the Quarter Impacting Results" section in the Earnings Release. (2) Excludes an estimated $90 million to $100 million of capital spending in 2024 related to the new Delek Logistics gas processing plant.


 
17 Net Debt 2024 vs 2023 $'s in Millions Sept 30, 2024 Dec 31, 2023 Consolidated long-term debt - current portion $ 9.5 $ 44.5 Consolidated long-term debt - non-current portion 2,779.9 2,555.3 Consolidated total long-term debt $ 2,789.4 $ 2,599.8 Less: Cash and cash equivalents 1,037.6 821.8 Consolidated net debt $ 1,751.8 $ 1,778.0 Less: Delek Logistics net debt 1,887.0 1,700.0 Delek US, excluding DKL net (cash) debt $ (135.2) $ 78.0


 
18 Guidance 4th Quarter 2024 $'s in Millions Low High Operating Expenses $177 $188 General and Administrative Expenses $53 $58 Depreciation and Amortization $95 $105 Net Interest Expense $75 $80 Barrels per day (bpd) Low High Total Crude Throughput 255,000 269,000 Total Throughput 265,000 276,000 Total Throughput by Refinery: Tyler, TX 67,000 69,000 El Dorado, AR 77,000 80,000 Big Spring, TX 71,000 74,000 Krotz Spring, LA 50,000 53,000


 
19 Supplemental Slides


 
20 Lease Adjustments Impact to Adjusted EBITDA Segment ProForma Δ Margin As Reported Refining Segment $42.3 $(32.1) $10.2 Logistics and All Other Segments $20.1 $32.1 52.2 DK Consolidated $62.4 $— 62.4 Adjustments above reflect lease classification accounting impacts as a result of renegotiated intercompany leases in Q3 2024. Can expect to see an adjustment prospectively for the balance of the contractual terms that were renegotiated. No change to consolidated Adjusted EBITDA. Lease Adjustment: Proforma (No Lease Adjustments) Lease Adjustments Adjusted EBITDA As Reported


 
21 Total Refining Throughput 3Q 2024 vs 3Q 2023 3Q24 Production Margin per bbl. Tyler El Dorado Big Spring Krotz Springs $7.48 $0.66 $6.82 $4.80 305.9 -1.0 -6.3 7.7 1.3 307.6 3Q23 Tyler El Dorado Big Spring Krotz Springs 3Q24 MBPD *Throughputs are rounded


 
22 Adjusted EBITDA 3Q 2024 vs 3Q 2023 ($MM) 3Q24 Adjusted EBITDA Results Refining Logistics Corporate Discontinued Operations (Retail) $10.2 $106.1 $(53.9) $8.2 $345.1 $(285.9) $9.6 $10.0 $(8.2) $70.6 3Q23 Refining Logistics Corporate Discontinued Operations (Retail) 3Q24 *$MM's are rounded


 
23 Adjusted EBITDA YTD 2024 vs 2023 ($MM) YTD 2024 Adjusted EBITDA Results Refining Logistics Corporate Discontinued Operations (Retail) $162.4 $306.4 $(159.9) $27.9 $889.1 $(579.7) $27.6 $10.0 $(10.2) $336.8 2023 Refining Logistics Corporate Discontinued Operations (Retail) 2024


 
24 YTD Consolidated Cash Flow ($MM) *includes cash and cash equivalents Note: Includes discontinued operations $822.2 $96.7 $(25.7) $144.4 $1,037.6 12/31/2023 Cash Balance* Operating Activities Investing Activities Financing Activities 9/30/2024 Cash Balance*


 
25 Reconciliation of U.S. GAAP Net Income (Loss) to Adjusted Net Income (Loss) (1) The adjustments have been tax effected using the estimated marginal tax rate, as applicable. (2) See further discussion in the "Significant Transactions During the Quarter Impacting Results" section in the Earnings Release. (3) Starting with the quarter ended March 31, 2024, we updated our non-GAAP financial measures to include the impact of unrealized gains and losses related to RINs where the hedged item is not yet recognized in the financial statements. The impact to historical non-GAAP financial measures is immaterial. Three Months Ended September 30, Nine Months Ended September 30, $ in millions (unaudited) 2024 2023 2024 2023 Reported net (loss) income attributable to Delek US $ (76.8) $ 128.7 $ (146.6) $ 184.7 Adjusting items (1) Inventory LCM valuation (benefit) loss 0.2 3.4 (10.5) (6.2) Tax effect — (0.8) 2.4 1.4 Inventory LCM valuation (benefit) loss, net 0.2 2.6 (8.1) (4.8) Other inventory impact 25.8 (28.2) 39.0 145.4 Tax effect (5.8) 6.4 (8.8) (32.7) Other inventory impact, net (2) 20.0 (21.8) 30.2 112.7 Business interruption insurance and settlement recoveries — (0.2) (10.6) (10.0) Tax effect — 0.1 2.4 2.3 Business interruption insurance and settlement recoveries, net — (0.1) (8.2) (7.7) Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements (8.0) 17.4 1.1 (8.1) Tax effect 1.8 (3.9) (0.2) 1.8 Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements, net (6.2) 13.5 0.9 (6.3) Unrealized RINs hedging (gain) loss where the hedged item is not yet recognized in the financial statements (2.6) — 3.7 — Tax effect 0.6 — (0.8) — Unrealized RINs hedging (gain) loss where the hedged item is not yet recognized in the financial statements, net (3) (2.0) — 2.9 — Transaction related expenses 20.9 — 20.9 — Tax effect (4.7) — (4.7) — Transaction related expenses, net (2) 16.2 — 16.2 — Restructuring costs 33.7 3.5 59.5 6.4 Tax effect (7.6) (0.7) (13.4) (1.4) Restructuring costs, net (2) 26.1 2.8 46.1 5.0 El Dorado refinery fire losses — 8.0 — 8.0 Tax effect — (1.8) — (1.8) El Dorado refinery fire losses, net — 6.2 — 6.2 Property settlement — — (53.4) — Tax effect — — 12.0 — Property settlement, net — — (41.4) — Gain on sale of Retail Stores (98.4) — (98.4) — Tax effect 27.9 — 27.9 — Gain on sale of Retail Stores, net (2) (70.5) — (70.5) — Total adjusting items (1) (16.2) 3.2 (31.9) 105.1 Adjusted net (loss) income $ (93.0) $ 131.9 $ (178.5) $ 289.8


 
26 Reconciliation of U.S. GAAP Net Income (Loss) per share to Adjusted Net Income (Loss) Per Share Three Months Ended September 30, Nine Months Ended September 30, $ per share (unaudited) 2024 2023 2024 2023 Reported diluted (loss) income per share $ (1.20) $ 1.97 $ (2.29) $ 2.78 Adjusting items, after tax (per share) (1) (2) Net inventory LCM valuation (benefit) loss — 0.04 (0.13) (0.07) Other inventory impact (3) 0.31 (0.33) 0.47 1.70 Business interruption insurance and settlement recoveries — — (0.13) (0.12) Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements (0.10) 0.21 0.01 (0.09) Unrealized RINs hedging (gain) loss where the hedged item is not yet recognized in the financial statements (4) (0.03) — 0.05 — Gain on sale of Retail Stores (3) (1.09) — (1.09) — Transaction related expenses (3) 0.25 — 0.25 — Restructuring costs (3) 0.41 0.04 0.73 0.08 El Dorado refinery fire losses — 0.09 — 0.09 Property settlement — — (0.65) — Total adjusting items (1) (0.25) 0.05 (0.49) 1.59 Adjusted net (loss) income per share $ (1.45) $ 2.02 $ (2.78) $ 4.37 (1) The adjustments have been tax effected using the estimated marginal tax rate, as applicable. (2) For periods of Adjusted net loss, Adjustments (Adjusting Items) and Adjusted net loss per share are presented using basic weighted average shares outstanding. (3) See further discussion in the "Significant Transactions During the Quarter Impacting Results" section in the Earnings Release. (4) Starting with the quarter ended March 31, 2024, we updated our non-GAAP financial measures to include the impact of unrealized gains and losses related to RINs where the hedged item is not yet recognized in the financial statements. The impact to historical non-GAAP financial measures is immaterial.


 
27 Reconciliation of Net (Loss) Income attributable to Delek US to Adjusted EBITDA Three Months Ended September 30, Nine Months Ended September 30, Three Months Ended June 30, $ in millions (unaudited) 2024 2023 2024 2023 2024 Reported net (loss) income attributable to Delek US $ (76.8) $ 128.7 $ (146.6) $ 184.7 $ (37.2) Add: Interest expense, net 78.8 82.3 244.2 239.2 77.7 Income tax expense (benefit) (12.2) 31.5 (27.1) 43.5 (7.7) Depreciation and amortization 99.9 91.3 287.2 264.1 92.1 EBITDA attributable to Delek US 89.7 333.8 357.7 731.5 124.9 Adjusting items Net inventory LCM valuation (benefit) loss 0.2 3.4 (10.5) (6.2) (1.9) Other inventory impact (1) 25.8 (28.2) 39.0 145.4 14.6 Business interruption insurance and settlement recoveries — (0.2) (10.6) (10.0) (10.6) Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements (8.0) 17.4 1.1 (8.1) 0.1 Unrealized RINs hedging (gain) loss where the hedged item is not yet recognized in the financial statements (2) (2.6) — 3.7 — 0.1 Transaction related expenses (1) 20.9 — 20.9 — — Restructuring costs (1) 33.7 3.5 59.5 6.4 22.6 Property settlement — — (53.4) — (53.4) El Dorado refinery fire losses — 8.0 — 8.0 — Gain on sale of Retail Stores (1) (98.4) — (98.4) — — Net income attributable to non-controlling interest 9.3 7.4 27.8 22.1 11.1 Total Adjusting items (19.1) 11.3 (20.9) 157.6 (17.4) Adjusted EBITDA $ 70.6 $ 345.1 $ 336.8 $ 889.1 $ 107.5 (1) See further discussion in the "Significant Transactions During the Quarter Impacting Results" section in the Earnings Release. (2) Starting with the quarter ended March 31, 2024, we updated our non-GAAP financial measures to include the impact of unrealized gains and losses related to RINs where the hedged item is not yet recognized in the financial statements. The impact to historical non- GAAP financial measures is immaterial.


 
28 Reconciliation of Segment EBITDA Attributable to Delek US to Adjusted Segment EBITDA Three Months Ended September 30, 2024 $ in millions (unaudited) Refining Logistics Corporate, Other and Eliminations Consolidated Segment EBITDA Attributable to Delek US $ 12.8 $ 68.6 $ (79.6) $ 1.8 Adjusting items Net inventory LCM valuation (benefit) loss 0.2 — — 0.2 Other inventory impact (1) 25.8 — — 25.8 Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements (8.0) — — (8.0) Unrealized RINs hedging (gain) loss where the hedged item is not yet recognized in the financial statements (2) (2.6) — — (2.6) Transaction related expenses (1) — 8.6 2.9 11.5 Restructuring costs (1) 14.1 — 19.6 33.7 Intercompany lease impacts (1) (32.1) 28.9 3.2 — Total Adjusting items (2.6) 37.5 25.7 60.6 Adjusted Segment EBITDA $ 10.2 $ 106.1 $ (53.9) $ 62.4 (1) See further discussion in the "Significant Transactions During the Quarter Impacting Results" section in the Earnings Release. (2) Starting with the quarter ended March 31, 2024, we updated our non-GAAP financial measures to include the impact of unrealized gains and losses related to RINs where the hedged item is not yet recognized in the financial statements. The impact to historical non-GAAP financial measures is immaterial. (3) During the second quarter 2024, we realigned our reportable segments for financial reporting purposes to reflect changes in the manner in which our chief operating decision maker, or CODM, assesses financial information for decision-making purposes. The change represents reporting the operating results of our 50% interest in a joint venture that owns asphalt terminals located in the southwestern region of the U.S. within the refining segment. Prior to this change, these operating results were reported as part of corporate, other and eliminations. While this reporting change did not change our consolidated results, segment data for previous years has been restated and is consistent with the current year presentation. Three Months Ended September 30, 2023 $ in millions (unaudited) Refining (3) Logistics Corporate, Other and Eliminations (3) Consolidated Segment EBITDA Attributable to Delek US $ 295.7 $ 96.5 $ (67.4) $ 324.8 Net inventory LCM valuation (benefit) loss 3.4 — — 3.4 Other inventory impact (1) (28.2) — — (28.2) Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements 17.4 — — 17.4 Restructuring costs — — 3.5 3.5 El Dorado refinery fire losses 8.0 — — 8.0 Business interruption insurance recoveries (0.2) — — (0.2) Total Adjusting items 0.4 — 3.5 3.9 Adjusted Segment EBITDA $ 296.1 $ 96.5 $ (63.9) $ 328.7


 
29 Reconciliation of Segment EBITDA Attributable to Delek US to Adjusted Segment EBITDA (1) See further discussion in the "Significant Transactions During the Quarter Impacting Results" section in the Earnings Release. (2) Starting with the quarter ended March 31, 2024, we updated our non-GAAP financial measures to include the impact of unrealized gains and losses related to RINs where the hedged item is not yet recognized in the financial statements. The impact to historical non-GAAP financial measures is immaterial. (3) During the second quarter 2024, we realigned our reportable segments for financial reporting purposes to reflect changes in the manner in which our chief operating decision maker, or CODM, assesses financial information for decision-making purposes. The change represents reporting the operating results of our 50% interest in a joint venture that owns asphalt terminals located in the southwestern region of the U.S. within the refining segment. Prior to this change, these operating results were reported as part of corporate, other and eliminations. While this reporting change did not change our consolidated results, segment data for previous years has been restated and is consistent with the current year presentation. Nine Months Ended September 30, 2024 $ in millions (unaudited) Refining (3) Logistics Corporate, Other and Eliminations (3) Consolidated Segment EBITDA Attributable to Delek US $ 135.2 $ 268.9 $ (135.5) $ 268.6 Adjusting items Net inventory LCM valuation (benefit) loss (10.5) — — (10.5) Other inventory impact (1) 39.0 — — 39.0 Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements 1.1 — — 1.1 Unrealized RINs hedging (gain) loss where the hedged item is not yet recognized in the financial statements (2) 3.7 — — 3.7 Restructuring costs (1) 36.6 — 22.9 59.5 Transaction related expenses (1) — 8.6 2.9 11.5 Business interruption insurance recoveries (10.6) — — (10.6) Property settlement — — (53.4) (53.4) Intercompany lease impacts (1) (32.1) 28.9 3.2 — Total Adjusting items 27.2 37.5 (24.4) 40.3 Adjusted Segment EBITDA $ 162.4 $ 306.4 $ (159.9) $ 308.9 Nine Months Ended September 30, 2023 $ in millions (unaudited) Refining (3) Logistics Corporate, Other and Eliminations (3) Consolidated Segment EBITDA Attributable to Delek US $ 613.0 $ 278.8 $ (176.3) $ 715.5 Adjusting items Net inventory LCM valuation (benefit) loss (6.2) — — (6.2) Other inventory impact (1) 145.4 — — 145.4 Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements (8.1) — — (8.1) Restructuring costs — — 6.4 6.4 Business interruption insurance recoveries (10.0) — — (10.0) El Dorado refinery fire losses 8.0 — — 8.0 Total Adjusting items 129.1 — 6.4 135.5 Adjusted Segment EBITDA $ 742.1 $ 278.8 $ (169.9) $ 851.0


 
30 Reconciliation of Segment EBITDA Attributable to Delek US to Adjusted Segment EBITDA Three Months Ended June 30, 2024 $ in millions (unaudited) Refining Logistics Corporate, Other and Eliminations Discontinued Operations (Retail) Consolidated Segment EBITDA Attributable to Delek US $ 17.3 $ 100.6 $ (5.4) $ 12.4 $ 124.9 Adjusting items Net inventory LCM valuation (benefit) loss (1.9) — — — (1.9) Other inventory impact (1) 14.6 — — — 14.6 Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements 0.1 — — — 0.1 Unrealized RINs hedging (gain) loss where the hedged item is not yet recognized in the financial statements (2) 0.1 — — — 0.1 Restructuring costs (1) 22.5 — 0.1 — 22.6 Business Interruption insurance recoveries (10.6) — — — (10.6) Property settlement (1) — — (53.4) — (53.4) Net income attributable to non-controlling interest — — 11.1 — 11.1 Total Adjusting items 24.8 — 11.2 — (17.4) Adjusted Segment EBITDA $ 42.1 $ 100.6 $ 5.8 $ 12.4 $ 107.5 (1) See further discussion in the "Significant Transactions During the Quarter Impacting Results" section in 2Q24 the Earnings Release. (2) Starting with the quarter ended March 31, 2024, we updated our non-GAAP financial measures to include the impact of unrealized gains and losses related to RINs where the hedged item is not yet recognized in the financial statements. The impact to historical non-GAAP financial measures is immaterial.


 
31 Reconciliation of (Loss) Income From Continuing Operations, Net of Tax to Adjusted EBITDA from Continuing Operations (1) See further discussion in the "Significant Transactions During the Quarter Impacting Results" section in the Earnings Release. Reconciliation of (Loss) Income From Continuing Operations, Net of Tax to Adjusted EBITDA from Continuing Operations Three Months Ended September 30, Nine Months Ended September 30, $ in millions (unaudited) 2024 2023 2024 2023 Reported loss (income) from continuing operations, net of tax $ (134.8) $ 125.6 $ (197.0) $ 182.9 Add: Interest expense, net 78.8 82.4 244.1 239.1 Income tax expense (benefit) (40.3) 29.1 (56.7) 38.3 Depreciation and amortization 98.1 87.7 278.2 255.2 EBITDA attributable to Delek US 1.8 324.8 268.6 715.5 Adjusting items Net inventory LCM valuation (benefit) loss 0.2 3.4 (10.5) (6.2) Other inventory impact (1) 25.8 (28.2) 39.0 145.4 Business interruption insurance and settlement recoveries — (0.2) (10.6) (10.0) Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements (8.0) 17.4 1.1 (8.1) Unrealized RINs hedging (gain) loss where the hedged item is not yet recognized in the financial statements (2) (2.6) — 3.7 — Transaction related expenses (1) 11.5 — 11.5 — Restructuring costs (1) 33.7 3.5 59.5 6.4 El Dorado refinery fire losses — 8.0 — 8.0 Property settlement — — (53.4) — Total Adjusting items 60.6 3.9 40.3 135.5 Adjusted EBITDA from continuing operations $ 62.4 $ 328.7 $ 308.9 $ 851.0


 
32 Reconciliation of (Loss) Income From Discontinued Operations, Net of Tax to Adjusted EBITDA from Discontinued Operations (1) See further discussion in the "Significant Transactions During the Quarter Impacting Results" section in the Earnings Release. Reconciliation of Income From Discontinued Operations, Net of Tax to Adjusted EBITDA from Discontinued Operations Three Months Ended September 30, Nine Months Ended September 30, $ in millions (unaudited) 2024 2023 2024 2023 Reported income form discontinued operations, net of tax $ 67.3 $ 10.5 $ 78.2 $ 23.9 Add: Interest expense (income), net — (0.1) 0.1 0.1 Income tax expense 28.1 2.4 29.6 5.2 Depreciation and amortization 1.8 3.6 9.0 8.9 EBITDA attributable to discontinued operations 97.2 16.4 116.9 38.1 Adjusting items Transaction costs (1) 9.4 — 9.4 — Gain on sale of Retail Stores (1) (98.4) — (98.4) — Total Adjusting items (89.0) — (89.0) — Adjusted EBITDA from discontinued operations $ 8.2 $ 16.4 $ 27.9 $ 38.1