Q2 2024 Delek US Holdings Inc Earnings Call Transcript
Key Points
- Delek US Holdings Inc (DK) achieved its highest throughput ever this quarter, demonstrating operational efficiency.
- The company announced the sale of its retail business for $385 million, unlocking significant value for shareholders.
- Delek US Holdings Inc (DK) completed its cost reduction efforts ahead of schedule, exceeding the initial target of $100 million.
- The company paid $16 million in dividends and increased its quarterly dividend to $0.25 per share, reflecting a commitment to shareholder returns.
- Delek US Holdings Inc (DK) announced a series of strategic transactions, including the acquisition of H2O Midstream, which is expected to be immediately accretive to EBITDA and free cash flow.
- Delek US Holdings Inc (DK) reported a net loss of $37 million for the second quarter, with an adjusted net loss of $59 million.
- The company faced a challenging market environment, leading to a $64 million decrease in refining margins.
- Cash flow from operations was negative $48 million, impacted by working capital movements and the Inventory Intermediation Agreement.
- The company experienced a $34 million loss in Supply and Marketing, with significant contributions from wholesale marketing and asphalt.
- El Dorado refinery faced operational challenges, including low margins and increased backwardation, impacting overall performance.
Ladies and gentlemen, thank you for standing by. My name is Desiree, and I will be your conference operator today. At this time, I would like to welcome everyone to the Delek Second Quarter Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. (Operator Instructions)
I would now like to turn the conference over to Robert Wright, Deputy CFO. Please go ahead.
Good morning. And welcome to the Delek US second quarter earnings conference call. Participants joining me on today's call will include Avigal Soreq, President and CEO; Joseph Israel, EVP Operations; Reuven Spiegel, EVP and Chief Financial Officer; and Mark Hobbs, EVP Corporate Development. Today's presentation material can be found on the Investor Relations section of the Delek US website.
Slide 2 contains our safe harbor statement regarding forward-looking statements. Any forward-looking statements
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