Delek US Holdings — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported net income of $1,133.8 million ($18.22 per share) for the three months ended September 30, 2026, compared to $178.0 million ($2.93 per share) in the prior-year quarter.
• Adjusted net income was $843.0 million ($13.55 per share) for the quarter, compared to $434.2 million ($7.13 per share) in the prior-year quarter.
• Adjusted EBITDA was $1,280.4 million for the quarter, compared to $766.7 million in the prior-year quarter.
• Excluding the impacts of the RVO adjustment and Small Refinery Exemptions (SREs), adjusted EPS was $10.53 per share and adjusted EBITDA was $1,038.1 million.
• For the nine months ended September 30, 2026, net income was $1,102.0 million ($17.65 per share), compared to a net loss of $101.1 million ($1.66 per share) in the prior-year period.
• Total diluted income per share for the nine months was $17.65, compared to $(1.66) in the prior-year period.
• Net cash provided by operating activities was $567.4 million for the quarter, compared to $44.0 million in the prior-year quarter.
• Net cash provided by operating activities was $1,291.4 million for the nine months, compared to $33.0 million in the prior-year period.
• As of September 30, 2026, cash balance was $1,335.1 million; total consolidated long-term debt was $3,389.8 million, resulting in net debt of $2,054.7 million.
• Excluding Delek Logistics, Delek US held $1,286.1 million in cash and $1,264.2 million in long-term debt, resulting in a $21.9 million net cash position.

Guidance and Future Outlook:

• Increased annual adjusted EBITDA guidance for Delek Logistics to $530-560 million.
• Increased the Enterprise Optimization Plan (EOP) annual run-rate cash flow improvements guidance to at least $250 million.
• Expects to repay the outstanding $850 million Term Loan during the fourth quarter.
• Plans to buy back up to $100 million of stock in Q4 2026.
• Management indicated being well positioned to add additional $60 million of the $75 million EBITDA growth guidance for 2027.
• Expects to capture benefits of a constructive margin environment for the remainder of the year.

Business Segments and Product Lines:

• Refining Segment: Adjusted EBITDA was $1,242.1 million for the quarter, compared to $697.4 million in the prior-year quarter. Benchmark crack spreads were up an average of 191.2% from prior-year levels.
• Logistics Segment: Adjusted EBITDA was $1,42.9 million for the quarter, compared to $138.1 million in the prior-year quarter. Performance was driven by higher margins in the wholesale business and increased interest income related to sales-type leases.
• Delek US owns approximately 58.0% of Delek Logistics Partners, LP as of September 30, 2026.
• Refining assets have a combined nameplate crude throughput capacity of 302,000 barrels per day.

Market and Competitive Landscape:

• Refining margins were driven by increased crack spreads.
• Management cited "industry leading distillate and jet yield" and "smooth operations" as key drivers.
• The company noted a constructive margin environment expected to continue for the remainder of the year.

Risks and Challenges:

• Small Refinery Exemptions (SREs): The EPA granted full exemptions for the Krotz Springs refinery's 2024 obligations and for all Delek refineries for the 2025 compliance year, resulting in a $334.7 million reduction in Cost of materials and other.
• RVO Adjustments: Significant adjustments related to Renewable Volume Obligations and SREs impacted reported results; excluding these, adjusted metrics were lower.
• Restructuring Costs: Recorded $5.5 million in restructuring costs associated with business transformation ($4.3 million after-tax).
• Inventory Impacts: Adjusted EBITDA was impacted by inventory adjustments of $86.3 million in the current quarter versus $67.5 million in the prior-year quarter.
• Lease Accounting Changes: Amendments to intercompany lease agreements resulted in reclassification of certain agreements as sales-type leases for Delek Logistics and finance leases for the Refining segment.
• Forward-Looking Risks: The press release lists numerous risks including regulatory developments, crude oil price volatility, OPEC actions, integration risks for Delek Logistics acquisitions, and potential asset impairments.

Management Commentary and Tone:

• Avigal Soreq, President and CEO, described the results as a "testament to the strong progress" in making Delek a "strong free cash flow generator through the cycle."
• Management emphasized the success of the Enterprise Optimization Plan and the ability to capture benefits from a constructive margin environment.
• The tone was confident regarding balance sheet improvement, citing the plan to repay the $850 million Term Loan.
• Management stated that the economic separation between Delek US and Delek Logistics is increasing, positioning both companies to unlock respective standalone value.

Other Key Points:

• Dividends: Paid $15.6 million in dividends and increased the regular quarterly dividend by approximately 18% to $0.30 per share.
• Share Repurchases: Purchased $50.0 million in Delek US common stock during the quarter.
• Debt Issuance: Issued $460 million of 0.00% Convertible Senior Notes due 2031 on September 29, 2026.
• Delek Logistics Offering: Completed an underwritten offering of 4,600,000 common units by Delek Logistics on August 14, 2026, at $50 per unit, with proceeds used to repay borrowings under the Delek Logistics Revolving Facility.
• Capped Call Transactions: Entered into privately negotiated capped call transactions in connection with the 2031 Convertible Notes to reduce potential dilution.
• Conference Calls: Scheduled conference calls for Delek US (November 6, 2026, 10:00 a.m. CT) and Delek Logistics (November 6, 2026, 11:30 a.m. CT).