Delek US Holdings Inc (DK) Q3 2024 Earnings Call Highlights: Navigating Challenges with ...

GuruFocus.com11-07

Adjusted EBITDA: Approximately $71 million for the third quarter. Net Loss: $77 million or negative $1.20 per share. Adjusted Net Loss: $93 million or negative $1.45 per share. Refining Margin: $5 to ...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nDelek US Holdings Inc (DK) Q3 2024 Earnings Call Highlights: Navigating Challenges with ...\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-07 15:16 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/delek-us-holdings-inc-dk-071611177.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Adjusted EBITDA: Approximately $71 million for the third quarter.\nNet Loss: $77 million or negative $1.20 per share.\nAdjusted Net Loss: $93 million or negative $1.45 per share.\nRefining Margin: $5 to ...</p>\n\n<a href=\"https://finance.yahoo.com/news/delek-us-holdings-inc-dk-071611177.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"DKL","symbol_name":"Delek Logistics Partners","start_time":0,"source_url":"https://finance.yahoo.com/news/delek-us-holdings-inc-dk-071611177.html","article_id":"2481940586","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/U2rzjXWLQ8ShvpuIzOjtYg--~B/aD0yNTA7dz0yNTA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/90951d5541bc1003cbdd2cf144c019bf"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2481940586","pubTimestamp":1730963771,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Adjusted EBITDA: Approximately $71 million for the third quarter.Net Loss: $77 million or negative $1.20 per share.Adjusted Net Loss: $93 million or negative $1.45 per share.Share Buybacks: $20 million worth of shares repurchased.Capital Expenditures: $78 million for the third quarter.Logistics Segment EBITDA: $106 million in adjusted EBITDA.Operating Expenses: Estimated between $177 million and $188 million for Q4 2024.General and Administrative Expenses: Estimated between $53 million and $58 million for Q4 2024.Depreciation and Amortization: Expected between $95 million and $105 million for Q4 2024.Net Interest Expense: Expected between $75 million and $80 million for Q4 2024.GuruFocus has detected 4 Warning Signs with VTOL.For the complete transcript of the earnings call, please refer to the full earnings call transcript.Delek US Holdings Inc  reported an adjusted EBITDA of approximately $71 million for the third quarter.","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"DKL":"Delek Logistics Partners","DK":"Delek US Holdings"},"translate_title":"Delek US Holdings Inc(DK)2024年第三季度收益看涨期权亮点：应对挑战...","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"DK":1,"DKL":0.9},"content_text":"Adjusted EBITDA: Approximately $71 million for the third quarter.\nNet Loss: $77 million or negative $1.20 per share.\nAdjusted Net Loss: $93 million or negative $1.45 per share.\nRefining Margin: $5 to $6 below mid-cycle.\nDividends Paid: $16 million during the quarter.\nShare Buybacks: $20 million worth of shares repurchased.\nCash from Operations: Use of $22 million.\nCapital Expenditures: $78 million for the third quarter.\nLogistics Segment EBITDA: $106 million in adjusted EBITDA.\nOperating Expenses: Estimated between $177 million and $188 million for Q4 2024.\nGeneral and Administrative Expenses: Estimated between $53 million and $58 million for Q4 2024.\nDepreciation and Amortization: Expected between $95 million and $105 million for Q4 2024.\nNet Interest Expense: Expected between $75 million and $80 million for Q4 2024.\n\n\nWarning! GuruFocus has detected 4 Warning Signs with VTOL.\n\nRelease Date: November 06, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nDelek US Holdings Inc (NYSE:DK) reported an adjusted EBITDA of approximately $71 million for the third quarter.\nThe company has successfully closed a series of transactions, including the sale of retail assets to FEMSA, strengthening its balance sheet.\nDelek US Holdings Inc (NYSE:DK) is implementing a new cost reduction and margin improvement plan, targeting at least $100 million in incremental annual savings by the second half of 2025.\nThe company is actively working on increasing economic separation between DK and DKL, which is expected to bring additional cash flow benefits.\nDelek US Holdings Inc (NYSE:DK) is committed to shareholder returns, having paid $16 million in dividends and repurchased $20 million of shares during the quarter.\n\n Negative Points \n\nThe company reported a net loss of $77 million or negative $1.20 per share for the quarter.\nRefining margins remain below mid-cycle, impacting overall financial performance.\nEl Dorado refinery experienced lower-than-expected margins due to outages in key units, affecting production margins.\nCash from operations was a use of $22 million, reflecting challenges in generating positive cash flow.\nThe company faces a low margin environment, which could impact future profitability and cash flow generation.\n\n Q & A Highlights \nQ: Can you provide more details on the El Dorado refinery's performance and future improvements? A: Avigal Soreq, President and CEO, explained that El Dorado is a complex refinery with significant flexibility. Joseph Israel, EVP Operations, added that they are addressing market access gaps and implementing new processes and logistics to improve profitability. By mid-next year, they expect to achieve an additional $2 per barrel in net margins.\nQ: How do you plan to approach the share repurchase program given the current market valuation? A: Avigal Soreq stated that Delek US Holdings is committed to maintaining a strong dividend and a balanced approach between buybacks and improving the balance sheet. They see significant value in their equity and have been actively buying back shares in Q3 and Q4.\nQ: What is the outlook for Delek Logistics Partners (DKL) and its growth projects? A: Avigal Soreq mentioned that while they haven't provided specific guidance for 2025, they are optimistic about DKL's growth. Mohit Bhardwaj, SVP of Strategy and Growth, noted a net addition of $70 million in midstream EBITDA from ongoing investments.\nQ: Can you elaborate on the $100 million cost reduction and margin improvement plan? A: Avigal Soreq explained that the Enterprise Optimization Plan (EOP) is designed to be market agnostic, focusing on G&A efficiencies, operational improvements, and margin enhancements. The plan aims to generate at least $100 million in free cash flow annually, independent of market conditions.\nQ: What are the strategic options for unlocking value from Delek Logistics Partners (DKL)? A: Mark Hobbs, EVP Corporate Development, stated that deconsolidation remains a top priority. They are evaluating all options to maximize value, supported by recent favorable market transactions in the midstream sector.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2481940586"}