(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | |||||||||
(Address of Principal Executive) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. |
Dated: November 7, 2023 | DELEK US HOLDINGS, INC | ||||
/s/ Reuven Spiegel | |||||
Name: Reuven Spiegel | |||||
Title: Executive Vice President and Chief Financial Officer (Principal Financial Officer) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
($ in millions, except per share data) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Net income attributable to Delek | $ | 128.7 | $ | 7.4 | $ | 184.7 | $ | 375.8 | ||||||||||||||||||
Diluted income per share | $ | 1.97 | $ | 0.10 | $ | 2.78 | $ | 5.21 | ||||||||||||||||||
Adjusted net income | $ | 131.9 | $ | 214.8 | $ | 289.8 | $ | 461.4 | ||||||||||||||||||
Adjusted net income per share | $ | 2.02 | $ | 3.02 | $ | 4.37 | $ | 6.38 | ||||||||||||||||||
Adjusted EBITDA | $ | 345.1 | $ | 414.0 | $ | 889.1 | $ | 960.0 |
1 | |
2 | |
3 | |
4 | |
Delek US Holdings, Inc. | ||||||||||||||
Condensed Consolidated Balance Sheets (Unaudited) | ||||||||||||||
($ in millions, except share and per share data) | ||||||||||||||
September 30, 2023 | December 31, 2022 | |||||||||||||
ASSETS | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 901.7 | $ | 841.3 | ||||||||||
Accounts receivable, net | 1,166.9 | 1,234.4 | ||||||||||||
Inventories, net of inventory valuation reserves | 1,179.2 | 1,518.5 | ||||||||||||
Other current assets | 85.6 | 122.7 | ||||||||||||
Total current assets | 3,333.4 | 3,716.9 | ||||||||||||
Property, plant and equipment: | ||||||||||||||
Property, plant and equipment | 4,603.1 | 4,349.0 | ||||||||||||
Less: accumulated depreciation | (1,768.3) | (1,572.6) | ||||||||||||
Property, plant and equipment, net | 2,834.8 | 2,776.4 | ||||||||||||
Operating lease right-of-use assets | 160.3 | 179.5 | ||||||||||||
Goodwill | 744.3 | 744.3 | ||||||||||||
Other intangibles, net | 300.4 | 315.6 | ||||||||||||
Equity method investments | 371.2 | 359.7 | ||||||||||||
Other non-current assets | 124.6 | 100.4 | ||||||||||||
Total assets | $ | 7,869.0 | $ | 8,192.8 | ||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable | $ | 2,006.8 | $ | 1,745.6 | ||||||||||
Current portion of long-term debt | 29.5 | 74.5 | ||||||||||||
Current portion of obligation under Inventory Intermediation Agreement | — | 49.9 | ||||||||||||
Current portion of operating lease liabilities | 49.9 | 49.6 | ||||||||||||
Accrued expenses and other current liabilities | 916.5 | 1,166.8 | ||||||||||||
Total current liabilities | 3,002.7 | 3,086.4 | ||||||||||||
Non-current liabilities: | ||||||||||||||
Long-term debt, net of current portion | 2,608.5 | 2,979.2 | ||||||||||||
Obligation under Inventory Intermediation Agreement | 502.2 | 491.8 | ||||||||||||
Environmental liabilities, net of current portion | 111.6 | 111.5 | ||||||||||||
Asset retirement obligations | 42.9 | 41.8 | ||||||||||||
Deferred tax liabilities | 304.2 | 266.5 | ||||||||||||
Operating lease liabilities, net of current portion | 106.8 | 122.4 | ||||||||||||
Other non-current liabilities | 33.1 | 23.7 | ||||||||||||
Total non-current liabilities | 3,709.3 | 4,036.9 | ||||||||||||
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, 82,241,519 shares and 84,509,517 shares issued at September 30, 2023 and December 31, 2022, respectively | 0.8 | 0.9 | ||||||||||||
Additional paid-in capital | 1,116.4 | 1,134.1 | ||||||||||||
Accumulated other comprehensive loss | (5.3) | (5.2) | ||||||||||||
Treasury stock, 17,575,527 shares, at cost, at September 30, 2023 and December 31, 2022, respectively | (694.1) | (694.1) | ||||||||||||
Retained earnings | 619.9 | 507.9 | ||||||||||||
Non-controlling interests in subsidiaries | 119.3 | 125.9 | ||||||||||||
Total stockholders’ equity | 1,157.0 | 1,069.5 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 7,869.0 | $ | 8,192.8 |
5 | |
Delek US Holdings, Inc. | ||||||||||||||||||||||||||
Condensed Consolidated Statements of Income (Unaudited) | ||||||||||||||||||||||||||
($ in millions, except share and per share data) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||
2023 | 2022 (1) | 2023 | 2022 (1) | |||||||||||||||||||||||
Net revenues | $ | 4,748.4 | $ | 5,324.9 | $ | 12,868.3 | $ | 15,766.6 | ||||||||||||||||||
Cost of sales: | ||||||||||||||||||||||||||
Cost of materials and other | 4,122.1 | 4,916.0 | 11,328.3 | 14,151.1 | ||||||||||||||||||||||
Operating expenses (excluding depreciation and amortization presented below) | 217.7 | 201.3 | 577.2 | 536.4 | ||||||||||||||||||||||
Depreciation and amortization | 83.7 | 66.5 | 243.1 | 192.0 | ||||||||||||||||||||||
Total cost of sales | 4,423.5 | 5,183.8 | 12,148.6 | 14,879.5 | ||||||||||||||||||||||
Operating expenses related to retail and wholesale business (excluding depreciation and amortization presented below) | 22.7 | 28.2 | 80.8 | 89.6 | ||||||||||||||||||||||
General and administrative expenses | 72.0 | 59.3 | 219.3 | 231.8 | ||||||||||||||||||||||
Depreciation and amortization | 7.6 | 6.4 | 21.0 | 17.2 | ||||||||||||||||||||||
Other operating income, net | (2.1) | (5.8) | (19.0) | (44.5) | ||||||||||||||||||||||
Total operating costs and expenses | 4,523.7 | 5,271.9 | 12,450.7 | 15,173.6 | ||||||||||||||||||||||
Operating income | 224.7 | 53.0 | 417.6 | 593.0 | ||||||||||||||||||||||
Interest expense, net | 82.3 | 50.7 | 239.2 | 132.7 | ||||||||||||||||||||||
Income from equity method investments | (27.0) | (17.8) | (67.1) | (44.4) | ||||||||||||||||||||||
Other expense (income), net | 1.8 | (0.7) | (4.8) | (3.0) | ||||||||||||||||||||||
Total non-operating expense, net | 57.1 | 32.2 | 167.3 | 85.3 | ||||||||||||||||||||||
Income before income tax expense | 167.6 | 20.8 | 250.3 | 507.7 | ||||||||||||||||||||||
Income tax expense | 31.5 | 4.0 | 43.5 | 107.5 | ||||||||||||||||||||||
Net income | 136.1 | 16.8 | 206.8 | 400.2 | ||||||||||||||||||||||
Net income attributed to non-controlling interests | 7.4 | 9.4 | 22.1 | 24.4 | ||||||||||||||||||||||
Net income attributable to Delek | $ | 128.7 | $ | 7.4 | $ | 184.7 | $ | 375.8 | ||||||||||||||||||
Basic income per share | $ | 1.98 | $ | 0.11 | $ | 2.80 | $ | 5.26 | ||||||||||||||||||
Diluted income per share | $ | 1.97 | $ | 0.10 | $ | 2.78 | $ | 5.21 | ||||||||||||||||||
Weighted average common shares outstanding: | ||||||||||||||||||||||||||
Basic | 64,889,504 | 70,471,645 | 65,864,141 | 71,494,332 | ||||||||||||||||||||||
Diluted | 65,464,970 | 71,109,364 | 66,372,335 | 72,148,638 | ||||||||||||||||||||||
Condensed Cash Flow Data (Unaudited) | ||||||||||||||||||||||||||
($ in millions) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||||
Net cash provided by operating activities | $ | 432.6 | $ | 130.2 | $ | 922.8 | $ | 716.1 | ||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||
Net cash used in investing activities | (58.7) | (99.0) | (338.6) | (819.9) | ||||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||
Net cash (used in) provided by financing activities | (293.8) | (122.0) | (523.8) | 401.1 | ||||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 80.1 | (90.8) | 60.4 | 297.3 | ||||||||||||||||||||||
Cash and cash equivalents at the beginning of the period | 821.6 | 1,244.6 | 841.3 | 856.5 | ||||||||||||||||||||||
Cash and cash equivalents at the end of the period | $ | 901.7 | $ | 1,153.8 | $ | 901.7 | $ | 1,153.8 | ||||||||||||||||||
6 | |
7 | |
Reconciliation of Net Income (Loss) Attributable to Delek to Adjusted Net Income (Loss) | ||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
$ in millions (unaudited) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Reported net income (loss) attributable to Delek | $ | 128.7 | $ | 7.4 | $ | 184.7 | $ | 375.8 | ||||||||||||||||||
Adjusting items (1) | ||||||||||||||||||||||||||
Inventory LCM valuation (benefit) loss | 3.4 | 20.3 | (6.2) | 19.1 | ||||||||||||||||||||||
Tax effect | (0.8) | (4.7) | 1.4 | (4.4) | ||||||||||||||||||||||
Inventory LCM valuation (benefit) loss, net | 2.6 | 15.6 | (4.8) | 14.7 | ||||||||||||||||||||||
Other inventory impact | (28.2) | 279.5 | 145.4 | 137.5 | ||||||||||||||||||||||
Tax effect | 6.4 | (64.7) | (32.7) | (31.1) | ||||||||||||||||||||||
Other inventory impact, net (2) (3) | (21.8) | 214.8 | 112.7 | 106.4 | ||||||||||||||||||||||
Business interruption insurance recoveries | (0.2) | (7.3) | (10.0) | (25.9) | ||||||||||||||||||||||
Tax effect | 0.1 | 1.6 | 2.3 | 5.8 | ||||||||||||||||||||||
Business interruption insurance recoveries, net | (0.1) | (5.7) | (7.7) | (20.1) | ||||||||||||||||||||||
Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements (4) | 17.4 | (27.1) | (8.1) | (30.9) | ||||||||||||||||||||||
Tax effect | (3.9) | 6.6 | 1.8 | 7.5 | ||||||||||||||||||||||
Unrealized hedging (gain) loss where the hedged item is not yet recognized in the financial statements, net | 13.5 | (20.5) | (6.3) | (23.4) | ||||||||||||||||||||||
Transaction related expenses | — | 4.2 | — | 10.6 | ||||||||||||||||||||||
Tax effect | — | (1.0) | — | (2.6) | ||||||||||||||||||||||
Transaction related expenses, net | — | 3.2 | — | 8.0 | ||||||||||||||||||||||
Restructuring costs | 3.5 | — | 6.4 | — | ||||||||||||||||||||||
Tax effect | (0.7) | — | (1.4) | — | ||||||||||||||||||||||
Restructuring costs, net (2) | 2.8 | — | 5.0 | — | ||||||||||||||||||||||
El Dorado refinery fire losses | 8.0 | — | 8.0 | — | ||||||||||||||||||||||
Tax effect | (1.8) | — | (1.8) | — | ||||||||||||||||||||||
El Dorado refinery fire losses, net (2) | 6.2 | — | 6.2 | — | ||||||||||||||||||||||
Total adjusting items (1) | 3.2 | 207.4 | 105.1 | 85.6 | ||||||||||||||||||||||
Adjusted net income | $ | 131.9 | $ | 214.8 | $ | 289.8 | $ | 461.4 |
8 | |
Reconciliation of U.S. GAAP Income (Loss) per share to Adjusted Net Income (Loss) per share | ||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
$ per share (unaudited) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Reported diluted income per share | $ | 1.97 | $ | 0.10 | $ | 2.78 | $ | 5.21 | ||||||||||||||||||
Adjusting items, after tax (per share) (1) (2) | ||||||||||||||||||||||||||
Net inventory LCM valuation (benefit) loss | 0.04 | 0.22 | (0.07) | 0.20 | ||||||||||||||||||||||
Other inventory impact (3) (4) | (0.33) | 3.02 | 1.70 | 1.47 | ||||||||||||||||||||||
Business interruption insurance recoveries | — | (0.08) | (0.12) | (0.28) | ||||||||||||||||||||||
Total unrealized hedging (gain) loss where the hedged item is not yet recognized in the financial statements (5) | 0.21 | (0.29) | (0.09) | (0.32) | ||||||||||||||||||||||
Transaction related expenses | — | 0.05 | — | 0.11 | ||||||||||||||||||||||
Restructuring costs (3) | 0.04 | — | 0.08 | — | ||||||||||||||||||||||
El Dorado refinery fire losses (3) | 0.09 | — | 0.09 | — | ||||||||||||||||||||||
Total adjusting items (1) | 0.05 | 2.92 | 1.59 | 1.18 | ||||||||||||||||||||||
Adjusted net income per share | $ | 2.02 | $ | 3.02 | $ | 4.37 | $ | 6.39 | ||||||||||||||||||
9 | |
Reconciliation of Net Income (Loss) attributable to Delek to Adjusted EBITDA | ||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
$ in millions (unaudited) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Reported net (loss) income attributable to Delek | $ | 128.7 | $ | 7.4 | $ | 184.7 | $ | 375.8 | ||||||||||||||||||
Add: | ||||||||||||||||||||||||||
Interest expense, net | 82.3 | 50.7 | 239.2 | 132.7 | ||||||||||||||||||||||
Income tax expense (benefit) | 31.5 | 4.0 | 43.5 | 107.5 | ||||||||||||||||||||||
Depreciation and amortization | 91.3 | 72.9 | 264.1 | 209.2 | ||||||||||||||||||||||
EBITDA attributable to Delek | 333.8 | 135.0 | 731.5 | 825.2 | ||||||||||||||||||||||
Adjusting items | ||||||||||||||||||||||||||
Net inventory LCM valuation (benefit) loss | 3.4 | 20.3 | (6.2) | 19.1 | ||||||||||||||||||||||
Other inventory impact (1) (2) | (28.2) | 279.5 | 145.4 | 137.5 | ||||||||||||||||||||||
Business interruption insurance recoveries | (0.2) | (7.3) | (10.0) | (25.9) | ||||||||||||||||||||||
Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements (3) | 17.4 | (27.1) | (8.1) | (30.9) | ||||||||||||||||||||||
Transaction related expenses | — | 4.2 | — | 10.6 | ||||||||||||||||||||||
Restructuring costs (1) | 3.5 | — | 6.4 | — | ||||||||||||||||||||||
El Dorado refinery fire losses (1) | 8.0 | — | 8.0 | — | ||||||||||||||||||||||
Net income attributable to non-controlling interest | 7.4 | 9.4 | 22.1 | 24.4 | ||||||||||||||||||||||
Total Adjusting items | 11.3 | 279.0 | 157.6 | 134.8 | ||||||||||||||||||||||
Adjusted EBITDA | $ | 345.1 | $ | 414.0 | $ | 889.1 | $ | 960.0 |
10 | |
Reconciliation of Segment EBITDA Attributable to Delek to Adjusted Segment EBITDA | ||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2023 | ||||||||||||||||||||||||||||||||
$ in millions (unaudited) | Refining | Logistics | Retail | Corporate, Other and Eliminations | Consolidated | |||||||||||||||||||||||||||
Segment EBITDA Attributable to Delek | $ | 285.1 | $ | 96.5 | $ | 16.2 | $ | (64.0) | $ | 333.8 | ||||||||||||||||||||||
Adjusting items | ||||||||||||||||||||||||||||||||
Net inventory LCM valuation (benefit) loss | 3.4 | — | — | — | 3.4 | |||||||||||||||||||||||||||
Other inventory impact (1) (2) | (28.2) | — | — | — | (28.2) | |||||||||||||||||||||||||||
Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements (3) | 17.4 | — | — | — | 17.4 | |||||||||||||||||||||||||||
Restructuring costs (1) | — | — | — | 3.5 | 3.5 | |||||||||||||||||||||||||||
Business Interruption insurance recoveries | (0.2) | — | — | — | (0.2) | |||||||||||||||||||||||||||
El Dorado refinery fire losses (1) | 8.0 | — | — | — | 8.0 | |||||||||||||||||||||||||||
Net income attributable to non-controlling interest | — | — | — | 7.4 | 7.4 | |||||||||||||||||||||||||||
Total Adjusting items | 0.4 | — | — | 10.9 | 11.3 | |||||||||||||||||||||||||||
Adjusted Segment EBITDA | $ | 285.5 | $ | 96.5 | $ | 16.2 | $ | (53.1) | $ | 345.1 |
Three Months Ended September 30, 2022 | ||||||||||||||||||||||||||||||||
$ in millions (unaudited) | Refining | Logistics | Retail | Corporate, Other and Eliminations | Consolidated | |||||||||||||||||||||||||||
Segment EBITDA Attributable to Delek | $ | 90.3 | $ | 87.3 | $ | 13.5 | $ | (56.1) | $ | 135.0 | ||||||||||||||||||||||
Adjusting items | ||||||||||||||||||||||||||||||||
Net inventory LCM valuation (benefit) loss | 20.3 | — | — | — | 20.3 | |||||||||||||||||||||||||||
Other inventory impact (1) (2) | 279.5 | — | — | — | 279.5 | |||||||||||||||||||||||||||
Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements (3) | (27.1) | — | — | — | (27.1) | |||||||||||||||||||||||||||
Transaction related expenses | — | 4.2 | — | — | 4.2 | |||||||||||||||||||||||||||
Business Interruption insurance recoveries | (7.3) | — | — | — | (7.3) | |||||||||||||||||||||||||||
Net income attributable to non-controlling interest | — | — | — | 9.4 | 9.4 | |||||||||||||||||||||||||||
Total Adjusting items | 265.4 | 4.2 | — | 9.4 | 279.0 | |||||||||||||||||||||||||||
Adjusted Segment EBITDA | $ | 355.7 | $ | 91.5 | $ | 13.5 | $ | (46.7) | $ | 414.0 |
11 | |
Reconciliation of Segment EBITDA Attributable to Delek to Adjusted Segment EBITDA | ||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2023 | ||||||||||||||||||||||||||||||||
$ in millions (unaudited) | Refining | Logistics | Retail | Corporate, Other and Eliminations | Consolidated | |||||||||||||||||||||||||||
Segment EBITDA Attributable to Delek | $ | 587.7 | $ | 278.8 | $ | 37.6 | $ | (172.6) | $ | 731.5 | ||||||||||||||||||||||
Adjusting items | ||||||||||||||||||||||||||||||||
Net inventory LCM valuation (benefit) loss | (6.2) | — | — | — | (6.2) | |||||||||||||||||||||||||||
Other inventory impact (1) (2) | 145.4 | — | — | — | 145.4 | |||||||||||||||||||||||||||
Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements (3) | (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 | |||||||||||||||||||||||||||
Net income attributable to non-controlling interest | — | — | — | 22.1 | 22.1 | |||||||||||||||||||||||||||
Total Adjusting items | 129.1 | — | — | 28.5 | 157.6 | |||||||||||||||||||||||||||
Adjusted Segment EBITDA | $ | 716.8 | $ | 278.8 | $ | 37.6 | $ | (144.1) | $ | 889.1 |
Nine Months Ended September 30, 2022 | ||||||||||||||||||||||||||||||||
$ in millions (unaudited) | Refining | Logistics | Retail | Corporate, Other and Eliminations | Consolidated | |||||||||||||||||||||||||||
Segment EBITDA Attributable to Delek | $ | 758.2 | $ | 214.1 | $ | 36.3 | $ | (183.4) | $ | 825.2 | ||||||||||||||||||||||
Adjusting items | ||||||||||||||||||||||||||||||||
Net inventory LCM valuation (benefit) loss | 19.1 | — | — | — | 19.1 | |||||||||||||||||||||||||||
Other inventory impact (1) (2) | 137.5 | — | — | — | 137.5 | |||||||||||||||||||||||||||
Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements (3) | (30.9) | — | — | — | (30.9) | |||||||||||||||||||||||||||
Transaction related expenses | — | 10.6 | — | — | 10.6 | |||||||||||||||||||||||||||
Business Interruption insurance recoveries | (25.9) | — | — | — | (25.9) | |||||||||||||||||||||||||||
Net income attributable to non-controlling interest | — | — | — | 24.4 | 24.4 | |||||||||||||||||||||||||||
Total Adjusting items | 99.8 | 10.6 | — | 24.4 | 134.8 | |||||||||||||||||||||||||||
Adjusted Segment EBITDA | $ | 858.0 | $ | 224.7 | $ | 36.3 | $ | (159.0) | $ | 960.0 |
12 | |
Refining Segment Selected Financial Information | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Total Refining Segment | (Unaudited) | (Unaudited) | ||||||||||||||||||||||||
Days in period | 92 | 92 | 273 | 273 | ||||||||||||||||||||||
Total sales volume - refined product (average barrels per day ("bpd")) (1) | 307,626 | 312,877 | 295,141 | 307,380 | ||||||||||||||||||||||
Total production (average bpd) | 303,399 | 300,235 | 287,375 | 293,970 | ||||||||||||||||||||||
Crude oil | 294,726 | 299,973 | 275,310 | 289,046 | ||||||||||||||||||||||
Other feedstocks | 11,222 | 2,276 | 14,815 | 6,537 | ||||||||||||||||||||||
Total throughput (average bpd) | 305,948 | 302,249 | 290,125 | 295,583 | ||||||||||||||||||||||
Total refining production margin per bbl total throughput | $ | 16.01 | $ | 17.07 | $ | 13.86 | $ | 19.03 | ||||||||||||||||||
Total refining operating expenses per bbl total throughput | $ | 5.47 | $ | 6.22 | $ | 5.50 | $ | 5.71 | ||||||||||||||||||
Total refining production margin ($ in millions) | $ | 450.5 | $ | 474.7 | $ | 1,097.7 | $ | 1,535.5 | ||||||||||||||||||
Supply, marketing and other ($ millions) (2) | (1.2) | 51.7 | 95.0 | (175.6) | ||||||||||||||||||||||
Total adjusted refining margin ($ in millions) | $ | 449.3 | $ | 526.4 | $ | 1,192.7 | $ | 1,359.9 | ||||||||||||||||||
Total crude slate details | ||||||||||||||||||||||||||
Total crude slate: (% based on amount received in period) | ||||||||||||||||||||||||||
WTI crude oil | 73.4 | % | 75.2 | % | 73.3 | % | 67.1 | % | ||||||||||||||||||
Gulf Coast Sweet crude | 3.3 | % | 5.3 | % | 4.0 | % | 8.4 | % | ||||||||||||||||||
Local Arkansas crude oil | 4.0 | % | 3.5 | % | 4.1 | % | 4.1 | % | ||||||||||||||||||
Other | 19.3 | % | 16.0 | % | 18.6 | % | 20.4 | % | ||||||||||||||||||
Crude utilization (% based on nameplate capacity) (5) | 97.6 | % | 99.3 | % | 91.2 | % | 95.7 | % | ||||||||||||||||||
Tyler, TX Refinery | ||||||||||||||||||||||||||
Days in period | 92 | 92 | 273 | 273 | ||||||||||||||||||||||
Products manufactured (average bpd): | ||||||||||||||||||||||||||
Gasoline | 35,615 | 35,210 | 30,750 | 35,021 | ||||||||||||||||||||||
Diesel/Jet | 34,620 | 33,844 | 26,976 | 31,060 | ||||||||||||||||||||||
Petrochemicals, LPG, NGLs | 3,429 | 2,246 | 2,409 | 2,160 | ||||||||||||||||||||||
Other | 1,959 | 2,032 | 1,856 | 1,844 | ||||||||||||||||||||||
Total production | 75,623 | 73,332 | 61,991 | 70,085 | ||||||||||||||||||||||
Throughput (average bpd): | ||||||||||||||||||||||||||
Crude oil | 74,877 | 74,796 | 59,379 | 69,335 | ||||||||||||||||||||||
Other feedstocks | 1,118 | (1,123) | 3,243 | 1,032 | ||||||||||||||||||||||
Total throughput | 75,995 | 73,673 | 62,622 | 70,367 | ||||||||||||||||||||||
Tyler refining production margin ($ in millions) | $ | 165.4 | $ | 151.5 | $ | 329.7 | $ | 441.8 | ||||||||||||||||||
Per barrel of throughput: | ||||||||||||||||||||||||||
Tyler refining production margin | $ | 23.66 | $ | 22.35 | $ | 19.29 | $ | 23.00 | ||||||||||||||||||
Operating expenses (3) | $ | 4.74 | $ | 7.06 | $ | 5.06 | $ | 5.99 | ||||||||||||||||||
Crude Slate: (% based on amount received in period) | ||||||||||||||||||||||||||
WTI crude oil | 76.8 | % | 86.4 | % | 78.1 | % | 85.9 | % | ||||||||||||||||||
East Texas crude oil | 23.2 | % | 13.6 | % | 21.9 | % | 14.1 | % | ||||||||||||||||||
Capture rate (4) | 73.0 | % | 66.4 | % | 64.0 | % | 68.2 | % | ||||||||||||||||||
El Dorado, AR Refinery | ||||||||||||||||||||||||||
Days in period | 92 | 92 | 273 | 273 | ||||||||||||||||||||||
Products manufactured (average bpd): | ||||||||||||||||||||||||||
Gasoline | 39,361 | 40,577 | 37,213 | 38,946 | ||||||||||||||||||||||
Diesel | 31,927 | 31,372 | 29,211 | 31,143 | ||||||||||||||||||||||
Petrochemicals, LPG, NGLs | 1,875 | 1,347 | 1,564 | 1,306 | ||||||||||||||||||||||
Asphalt | 7,893 | 8,503 | 7,418 | 7,941 | ||||||||||||||||||||||
Other | 1,168 | 848 | 1,034 | 813 | ||||||||||||||||||||||
Total production | 82,224 | 82,647 | 76,440 | 80,149 | ||||||||||||||||||||||
Throughput (average bpd): | ||||||||||||||||||||||||||
Crude oil | 81,671 | 80,711 | 75,286 | 78,136 | ||||||||||||||||||||||
Other feedstocks | 2,611 | 3,301 | 3,053 | 3,154 | ||||||||||||||||||||||
Total throughput | 84,282 | 84,012 | 78,339 | 81,290 |
13 | |
Refining Segment Selected Financial Information (continued) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
El Dorado refining production margin ($ in millions) | $ | 97.5 | $ | 106.0 | $ | 231.0 | $ | 350.8 | ||||||||||||||||||
Per barrel of throughput: | ||||||||||||||||||||||||||
El Dorado refining production margin | $ | 12.57 | $ | 13.72 | $ | 10.80 | $ | 15.81 | ||||||||||||||||||
Operating expenses (3) | $ | 4.36 | $ | 4.83 | $ | 4.60 | $ | 4.70 | ||||||||||||||||||
Crude Slate: (% based on amount received in period) | ||||||||||||||||||||||||||
WTI crude oil | 71.9 | % | 68.4 | % | 67.6 | % | 52.1 | % | ||||||||||||||||||
Local Arkansas crude oil | 13.4 | % | 14.0 | % | 14.8 | % | 15.5 | % | ||||||||||||||||||
Other | 14.7 | % | 17.6 | % | 17.6 | % | 32.4 | % | ||||||||||||||||||
Capture rate (4) | 38.8 | % | 40.8 | % | 35.8 | % | 46.9 | % | ||||||||||||||||||
Big Spring, TX Refinery | ||||||||||||||||||||||||||
Days in period | 92 | 92 | 273 | 273 | ||||||||||||||||||||||
Products manufactured (average bpd): | ||||||||||||||||||||||||||
Gasoline | 29,274 | 34,431 | 33,755 | 34,087 | ||||||||||||||||||||||
Diesel/Jet | 23,607 | 26,020 | 23,333 | 25,262 | ||||||||||||||||||||||
Petrochemicals, LPG, NGLs | 3,723 | 3,524 | 3,299 | 3,466 | ||||||||||||||||||||||
Asphalt | 2,220 | 1,701 | 1,833 | 1,662 | ||||||||||||||||||||||
Other | 5,272 | 1,342 | 3,283 | 1,344 | ||||||||||||||||||||||
Total production | 64,096 | 67,018 | 65,503 | 65,821 | ||||||||||||||||||||||
Throughput (average bpd): | ||||||||||||||||||||||||||
Crude oil | 61,046 | 70,955 | 62,733 | 67,455 | ||||||||||||||||||||||
Other feedstocks | 3,865 | (3,189) | 3,834 | (866) | ||||||||||||||||||||||
Total throughput | 64,911 | 67,766 | 66,567 | 66,589 | ||||||||||||||||||||||
Big Spring refining production margin ($ in millions) | $ | 95.1 | $ | 116.8 | $ | 280.3 | $ | 370.4 | ||||||||||||||||||
Per barrel of throughput: | ||||||||||||||||||||||||||
Big Spring refining production margin | $ | 15.92 | $ | 18.74 | $ | 15.43 | $ | 20.37 | ||||||||||||||||||
Operating expenses (3) | $ | 8.37 | $ | 7.32 | $ | 7.61 | $ | 7.02 | ||||||||||||||||||
Crude Slate: (% based on amount received in period) | ||||||||||||||||||||||||||
WTI crude oil | 64.3 | % | 72.7 | % | 68.8 | % | 69.3 | % | ||||||||||||||||||
WTS crude oil | 35.7 | % | 27.3 | % | 31.2 | % | 30.7 | % | ||||||||||||||||||
Capture rate (4) | 50.9 | % | 59.9 | % | 52.6 | % | 63.4 | % | ||||||||||||||||||
Krotz Springs, LA Refinery | ||||||||||||||||||||||||||
Days in period | 92 | 92 | 273 | 273 | ||||||||||||||||||||||
Products manufactured (average bpd): | ||||||||||||||||||||||||||
Gasoline | 38,361 | 32,371 | 40,454 | 32,111 | ||||||||||||||||||||||
Diesel/Jet | 30,653 | 31,195 | 31,794 | 31,537 | ||||||||||||||||||||||
Heavy oils | 5,461 | 944 | 4,239 | 1,439 | ||||||||||||||||||||||
Petrochemicals, LPG, NGLs | 6,079 | 6,768 | 6,510 | 6,948 | ||||||||||||||||||||||
Other | 902 | 5,960 | 446 | 5,881 | ||||||||||||||||||||||
Total production | 81,456 | 77,238 | 83,443 | 77,916 | ||||||||||||||||||||||
Throughput (average bpd): | ||||||||||||||||||||||||||
Crude oil | 77,132 | 73,510 | 77,912 | 74,120 | ||||||||||||||||||||||
Other feedstocks | 3,628 | 3,287 | 4,686 | 3,216 | ||||||||||||||||||||||
Total throughput | 80,760 | 76,797 | 82,598 | 77,336 | ||||||||||||||||||||||
Krotz Springs refining production margin ($ in millions) | $ | 92.5 | $ | 100.4 | $ | 256.6 | $ | 372.5 | ||||||||||||||||||
Per barrel of throughput: | ||||||||||||||||||||||||||
Krotz Springs refining production margin | $ | 12.45 | $ | 14.21 | $ | 11.38 | $ | 17.64 | ||||||||||||||||||
Operating expenses (3) | $ | 5.00 | $ | 5.97 | $ | 5.00 | $ | 5.41 | ||||||||||||||||||
Crude Slate: (% based on amount received in period) | ||||||||||||||||||||||||||
WTI Crude | 79.8 | % | 70.1 | % | 79.0 | % | 61.0 | % | ||||||||||||||||||
Gulf Coast Sweet Crude | 11.2 | % | 23.2 | % | 13.5 | % | 33.3 | % | ||||||||||||||||||
Other | 9.0 | % | 6.7 | % | 7.5 | % | 5.7 | % | ||||||||||||||||||
Capture rate (4) | 63.9 | % | 55.4 | % | 68.4 | % | 67.0 | % |
14 | |
Logistics Segment Selected Information | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||||||||||||
Gathering & Processing: (average bpd) | ||||||||||||||||||||||||||
Lion Pipeline System: | ||||||||||||||||||||||||||
Crude pipelines (non-gathered) | 70,153 | 87,653 | 64,835 | 81,795 | ||||||||||||||||||||||
Refined products pipelines | 63,991 | 65,761 | 54,686 | 63,391 | ||||||||||||||||||||||
SALA Gathering System | 14,774 | 14,354 | 13,935 | 16,150 | ||||||||||||||||||||||
East Texas Crude Logistics System | 36,298 | 23,960 | 29,928 | 20,015 | ||||||||||||||||||||||
Midland Gathering Assets (1) | 248,443 | 121,304 | 230,907 | 107,699 | ||||||||||||||||||||||
Plains Connection System | 250,550 | 184,254 | 248,763 | 166,864 | ||||||||||||||||||||||
Delaware Gathering Assets: (2) | ||||||||||||||||||||||||||
Natural gas gathering and processing (Mcfd) (3) | 69,737 | 64,429 | 72,569 | 61,198 | ||||||||||||||||||||||
Crude oil gathering (average bpd) | 111,973 | 86,483 | 110,935 | 84,497 | ||||||||||||||||||||||
Water disposal and recycling (average bpd) | 99,158 | 69,411 | 104,920 | 66,043 | ||||||||||||||||||||||
Wholesale Marketing & Terminalling: | ||||||||||||||||||||||||||
East Texas - Tyler Refinery sales volumes (average bpd) (4) | 69,178 | 65,396 | 57,894 | 66,473 | ||||||||||||||||||||||
Big Spring wholesale marketing throughputs (average bpd) | 81,617 | 74,238 | 78,399 | 76,135 | ||||||||||||||||||||||
West Texas wholesale marketing throughputs (average bpd) | 10,692 | 10,082 | 9,871 | 10,023 | ||||||||||||||||||||||
West Texas wholesale marketing margin per barrel | $ | 4.56 | $ | 4.23 | $ | 5.43 | $ | 3.84 | ||||||||||||||||||
Terminalling throughputs (average bpd) (5) | 121,430 | 142,003 | 116,455 | 138,558 |
Retail Segment Selected Information | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||||||||||||
Number of stores (end of period) | 250 | 248 | 250 | 248 | ||||||||||||||||||||||
Average number of stores | 250 | 248 | 250 | 248 | ||||||||||||||||||||||
Average number of fuel stores | 245 | 243 | 245 | 243 | ||||||||||||||||||||||
Retail fuel sales (thousands of gallons) | 43,170 | 44,729 | 128,821 | 129,145 | ||||||||||||||||||||||
Average retail gallons sold per average number of fuel stores (in thousands) | 176 | 184 | 526 | 533 | ||||||||||||||||||||||
Average retail sales price per gallon sold | $ | 3.54 | $ | 3.78 | $ | 3.36 | $ | 3.89 | ||||||||||||||||||
Retail fuel margin ($ per gallon) (1) | $ | 0.42 | $ | 0.35 | $ | 0.34 | $ | 0.33 | ||||||||||||||||||
Merchandise sales (in millions) | $ | 83.5 | $ | 84.2 | $ | 241.7 | $ | 237.3 | ||||||||||||||||||
Merchandise sales per average number of stores (in millions) | $ | 0.3 | $ | 0.3 | $ | 1.0 | $ | 1.0 | ||||||||||||||||||
Merchandise margin % | 34.4 | % | 32.6 | % | 33.8 | % | 33.7 | % | ||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Same-Store Comparison (2) | (Unaudited) | (Unaudited) | ||||||||||||||||||||||||
Change in same-store fuel gallons sold | (6.8) | % | 7.4 | % | (3.3) | % | 4.7 | % | ||||||||||||||||||
Change in same-store merchandise sales | (1.9) | % | 3.9 | % | 1.1 | % | (0.3) | % |
15 | |
Supplemental Information | ||||||||||||||||||||
Schedule of Selected Segment Financial Data, Pricing Statistics Impacting our Refining Segment, and Other Reconciliations of Amounts Reported Under U.S. GAAP | ||||||||||||||||||||
Selected Segment Financial Data | Three Months Ended September 30, 2023 | |||||||||||||||||||||||||||||||
$ in millions (unaudited) | Refining | Logistics | Retail | Corporate, Other and Eliminations | Consolidated | |||||||||||||||||||||||||||
Net revenues (excluding intercompany fees and revenues) | $ | 4,392.4 | $ | 119.5 | $ | 236.5 | $ | — | $ | 4,748.4 | ||||||||||||||||||||||
Inter-segment fees and revenues | 232.1 | 156.4 | — | (388.5) | — | |||||||||||||||||||||||||||
Total revenues | $ | 4,624.5 | $ | 275.9 | $ | 236.5 | $ | (388.5) | $ | 4,748.4 | ||||||||||||||||||||||
Cost of sales | 4,394.4 | 206.5 | 189.6 | (367.0) | 4,423.5 | |||||||||||||||||||||||||||
Gross margin | $ | 230.1 | $ | 69.4 | $ | 46.9 | $ | (21.5) | $ | 324.9 | ||||||||||||||||||||||
Three Months Ended September 30, 2022 | ||||||||||||||||||||||||||||||||
$ in millions (unaudited) | Refining | Logistics | Retail | Corporate, Other and Eliminations | Consolidated | |||||||||||||||||||||||||||
Net revenues (excluding intercompany fees and revenues) | $ | 4,904.5 | $ | 166.9 | $ | 253.1 | $ | 0.4 | $ | 5,324.9 | ||||||||||||||||||||||
Inter-segment fees and revenues | 262.9 | 127.2 | — | (390.1) | — | |||||||||||||||||||||||||||
Total revenues | $ | 5,167.4 | $ | 294.1 | $ | 253.1 | $ | (389.7) | $ | 5,324.9 | ||||||||||||||||||||||
Cost of sales | 5,138.0 | 220.4 | 210.3 | (384.9) | 5,183.8 | |||||||||||||||||||||||||||
Gross margin | $ | 29.4 | $ | 73.7 | $ | 42.8 | $ | (4.8) | $ | 141.1 | ||||||||||||||||||||||
Nine Months Ended September 30, 2023 | ||||||||||||||||||||||||||||||||
$ in millions (unaudited) | Refining | Logistics | Retail | Corporate, Other and Eliminations | Consolidated | |||||||||||||||||||||||||||
Net revenues (excluding intercompany fees and revenues) | $ | 11,842.2 | $ | 351.9 | $ | 674.2 | $ | — | $ | 12,868.3 | ||||||||||||||||||||||
Inter-segment fees and revenues | 629.3 | 414.4 | — | (1,043.7) | — | |||||||||||||||||||||||||||
Total revenues | $ | 12,471.5 | $ | 766.3 | $ | 674.2 | $ | (1,043.7) | $ | 12,868.3 | ||||||||||||||||||||||
Cost of sales | 12,045.8 | 555.6 | 548.1 | (1,000.9) | 12,148.6 | |||||||||||||||||||||||||||
Gross margin | $ | 425.7 | $ | 210.7 | $ | 126.1 | $ | (42.8) | $ | 719.7 | ||||||||||||||||||||||
Nine Months Ended September 30, 2022 | ||||||||||||||||||||||||||||||||
$ in millions (unaudited) | Refining | Logistics | Retail | Corporate, Other and Eliminations | Consolidated | |||||||||||||||||||||||||||
Net revenues (excluding intercompany fees and revenues) | $ | 14,633.6 | $ | 392.1 | $ | 739.7 | $ | 1.2 | $ | 15,766.6 | ||||||||||||||||||||||
Inter-segment fees and revenues | 801.0 | 375.3 | — | (1,176.3) | — | |||||||||||||||||||||||||||
Total revenues | $ | 15,434.6 | $ | 767.4 | $ | 739.7 | $ | (1,175.1) | $ | 15,766.6 | ||||||||||||||||||||||
Cost of sales | 14,819.5 | 583.6 | 617.1 | (1,140.7) | 14,879.5 | |||||||||||||||||||||||||||
Gross margin | $ | 615.1 | $ | 183.8 | $ | 122.6 | $ | (34.4) | $ | 887.1 | ||||||||||||||||||||||
16 | |
Pricing Statistics | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||
(average for the period presented) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
WTI — Cushing crude oil (per barrel) | $ | 82.51 | $ | 91.63 | $ | 77.37 | $ | 98.50 | ||||||||||||||||||
WTI — Midland crude oil (per barrel) | $ | 83.85 | $ | 93.41 | $ | 78.63 | $ | 99.87 | ||||||||||||||||||
WTS — Midland crude oil (per barrel) | $ | 83.01 | $ | 92.17 | $ | 77.34 | $ | 98.58 | ||||||||||||||||||
LLS (per barrel) | $ | 84.88 | $ | 94.07 | $ | 79.82 | $ | 100.58 | ||||||||||||||||||
Brent (per barrel) | $ | 85.92 | $ | 97.69 | $ | 81.96 | $ | 102.48 | ||||||||||||||||||
U.S. Gulf Coast 5-3-2 crack spread (per barrel) (1) | $ | 32.39 | $ | 33.65 | $ | 30.15 | $ | 33.73 | ||||||||||||||||||
U.S. Gulf Coast 3-2-1 crack spread (per barrel) (1) | $ | 31.30 | $ | 31.28 | $ | 29.30 | $ | 32.12 | ||||||||||||||||||
U.S. Gulf Coast 2-1-1 crack spread (per barrel) (1) | $ | 19.48 | $ | 25.63 | $ | 16.64 | $ | 26.33 | ||||||||||||||||||
U.S. Gulf Coast Unleaded Gasoline (per gallon) | $ | 2.58 | $ | 2.64 | $ | 2.44 | $ | 2.92 | ||||||||||||||||||
Gulf Coast Ultra low sulfur diesel (per gallon) | $ | 2.97 | $ | 3.49 | $ | 2.74 | $ | 3.49 | ||||||||||||||||||
U.S. Gulf Coast high sulfur diesel (per gallon) | $ | 2.04 | $ | 2.86 | $ | 1.80 | $ | 2.98 | ||||||||||||||||||
Natural gas (per MMBTU) | $ | 2.66 | $ | 7.97 | $ | 2.57 | $ | 6.69 |
17 | |
Other Reconciliations of Amounts Reported Under U.S. GAAP | ||||||||||||||||||||||||||
$ in millions (unaudited) | ||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
Reconciliation of gross margin to Refining margin to Adjusted refining margin | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Gross margin | $ | 230.1 | $ | 29.4 | $ | 425.7 | $ | 615.1 | ||||||||||||||||||
Add back (items included in cost of sales): | ||||||||||||||||||||||||||
Operating expenses (excluding depreciation and amortization) | 166.5 | 175.4 | 459.4 | 467.5 | ||||||||||||||||||||||
Depreciation and amortization | 60.1 | 48.9 | 176.5 | 151.6 | ||||||||||||||||||||||
Refining margin | $ | 456.7 | $ | 253.7 | $ | 1,061.6 | $ | 1,234.2 | ||||||||||||||||||
Adjusting items | ||||||||||||||||||||||||||
Net inventory LCM valuation loss (benefit) | 3.4 | 20.3 | (6.2) | 19.1 | ||||||||||||||||||||||
Other inventory impact (1) (2) | (28.2) | 279.5 | 145.4 | 137.5 | ||||||||||||||||||||||
Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements (3) | 17.4 | (27.1) | (8.1) | (30.9) | ||||||||||||||||||||||
Total adjusting items | (7.4) | 272.7 | 131.1 | 125.7 | ||||||||||||||||||||||
Adjusted refining margin | $ | 449.3 | $ | 526.4 | $ | 1,192.7 | $ | 1,359.9 |
Calculation of (Net Cash)/Net Debt | September 30, 2023 | December 31, 2022 | ||||||||||||
Long-term debt - current portion | $ | 29.5 | $ | 74.5 | ||||||||||
Long-term debt - non-current portion | 2,608.5 | 2,979.2 | ||||||||||||
Total long-term debt | 2,638.0 | 3,053.7 | ||||||||||||
Less: Cash and cash equivalents | 901.7 | 841.3 | ||||||||||||
Net debt - consolidated | 1,736.3 | 2,212.4 | ||||||||||||
Less: DKL net debt | 1,737.2 | 1,653.6 | ||||||||||||
(Net Cash)/Net debt, excluding DKL | $ | (0.9) | $ | 558.8 |
18 | |
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