Delek US Q2 Earnings Call Highlights

Strong Q2 results: Delek US reported approximately $170 million in net income and $639 million in adjusted EBITDA, driven by stronger refining margins, higher throughput and record logistics performance. Refining and logistics outlook remains favorable: The Big Spring turnaround improved reliability and product yields, while Delek Logistics posted record adjusted EBITDA of about $144 million and reaffirmed its 2026 guidance of $520 million to $560 million. Debt reduction and capital allocation continued: Delek reduced its term loan by $70 million and standalone net debt by $72 million during the quarter, while paying $16 million in dividends and repurchasing approximately $20 million of shares. Delek US NYSE: DK reported second-quarter 2026 net income of approximately $170 million, or $2.71 per share, as stronger refining margins, improved throughput and record logistics results supported performance. On an adjusted basis, the company posted net income of about $344 million, or $5.48 per share, and adjusted EBITDA of approximately $639 million. Excluding a 50% renewable volume obligation, or RVO, adjustment, adjusted EBITDA was about $490 million and adjusted earnings were $3.64 per share, according to Executive Vice President and CFO Robert Wright. President and CEO Avigal Soreq said the company navigated volatility in crude and product markets during the quarter while continuing to focus on reliability, cash-flow generation and disciplined capital allocation. Wright said quarter-over-quarter EBITDA improvement was led by stronger refining margins and higher throughput following the completion of the Big Spring refinery turnaround. Soreq said Big Spring has performed in line with expectations since the turnaround, with improved reliability, greater crude-slate flexibility, better product yields and increased octane and blending capability. Delek has no planned refinery turnarounds for the remainder of 2026, Soreq said, positioning its system to participate in favorable market conditions. Management pointed to steep backwardation, shifting crude differentials and tight transportation-fuel markets as important factors in the refining environment. Soreq said the company believes access to crude supplies, high distillate yields and the ability to respond quickly to market changes are important advantages. During the question-and-answer session, Soreq said global refined-product markets remain affected by capacity outages and that normalization could take several quarters after current market disruptions end. He also cited Delek’s access to Gulf Coast and Midcontinent markets, domestic crude availability and high distillate and jet fuel yields as favorable characteristics. On refining margin capture, Soreq said a decline in market backwardation should benefit realized crack spreads. He described the current forward curve as relatively flat compared with the significantly steeper backwardation seen during the second quarter. For the third quarter, Delek guided to total refining-system throughput of 296,000 to 316,000 barrels per day. By refinery, the company expects: Tyler throughput of 72,000 to 77,000 barrels per day; El Dorado throughput of 78,000 to 83,000 barrels per day; Big Spring throughput of 68,000 to 73,000 barrels per day; and Krotz Springs throughput of 78,000 to 83,000 barrels per day. The company also forecast third-quarter operating expenses of $220 million to $230 million, general and administrative expenses of $50 million to $55 million.