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

Delek US (NYSE:DK) released its quarterly earnings data on Wednesday. The oil and gas company reported $5.48 earnings per share for the quarter, topping 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%. Delek US’s revenue for the quarter was up 47.9% compared to the same quarter last year. During the same period in the previous year, the business 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

DK traded down $6.50 on Wednesday, reaching $59.70. The company had a trading volume of 1,993,461 shares, compared to its average volume of 1,226,687. The stock has a market cap of $3.66 billion, a P/E ratio of -65.60, a P/E/G ratio of 1.74 and a beta of 0.57. The company has a debt-to-equity ratio of 10.51, a quick ratio of 0.49 and a current ratio of 0.76. Delek US has a fifty-two week low of $19.81 and a fifty-two week high of $68.93. The company’s fifty day moving average is $53.67 and its 200 day moving average is $44.44.

Delek US Announces Dividend

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

Analyst Ratings Changes

DK has been the subject of a number of research analyst reports. Mizuho lifted their price target on Delek US from $54.00 to $60.00 and gave the stock an “outperform” rating in a report on Wednesday, May 27th. Weiss Ratings downgraded Delek US from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Monday, May 11th. UBS Group upped their price objective on Delek US from $42.00 to $48.00 and gave the company a “neutral” rating in a research note on Friday, April 10th. JPMorgan Chase & Co. raised their price objective on Delek US from $57.00 to $62.00 and gave the company a “neutral” rating in a research report on Tuesday, July 14th. Finally, Zacks Research upgraded Delek US from a “hold” rating to a “strong-buy” rating in a research note on Friday, June 26th. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, six have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $51.92.

Insider Activity

In other news, EVP Robert G. Wright sold 10,720 shares of the business’s stock in a transaction that occurred on Wednesday, May 13th. The stock was sold at an average price of $47.07, for a total transaction of $504,590.40. Following the completion of the sale, the executive vice president owned 48,148 shares in the company, valued at $2,266,326.36. The trade was a 18.21% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Laurie Z. Tolson sold 4,921 shares of the company’s stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $46.30, for a total value of $227,842.30. Following the completion of the transaction, the director directly owned 18,226 shares in the company, valued at $843,863.80. The trade was a 21.26% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 39,270 shares of company stock valued at $1,828,718. Company insiders own 3.56% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in DK. Royal Bank of Canada lifted its holdings in shares of Delek US by 18.4% during the first quarter. Royal Bank of Canada now owns 278,774 shares of the oil and gas company’s stock worth $4,201,000 after buying an additional 43,379 shares in the last quarter. AQR Capital Management LLC acquired a new position in shares of Delek US in the first quarter valued at about $390,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in shares of Delek US by 3.1% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 37,190 shares of the oil and gas company’s stock valued at $560,000 after acquiring an additional 1,102 shares in the last quarter. Jones Financial Companies Lllp increased its position in Delek US by 3,979.8% during the first quarter. Jones Financial Companies Lllp now owns 20,399 shares of the oil and gas company’s stock worth $307,000 after acquiring an additional 19,899 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in Delek US by 7.2% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 146,871 shares of the oil and gas company’s stock worth $2,213,000 after acquiring an additional 9,827 shares during the period. 97.01% of the stock is owned by institutional investors and hedge funds.

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.