Delek US Holdings — Third Quarter 2026 Earnings Summary

Financial Performance

• Reported net income attributable to Delek US of $1,133.8 million ($18.22 per diluted share) for the three months ended September 30, 2026, compared to $178.0 million ($2.93 per diluted share) in the prior-year quarter.
• Reported net income attributable to Delek US of $1,102.0 million ($17.65 per diluted share) for the nine months ended September 30, 2026, compared to a net loss of $101.1 million ($1.66 per diluted share) in the prior-year period.
• Adjusted net income was $843.0 million ($13.55 per share) for the quarter and $1,191.6 million ($19.08 per share) for the nine months, compared to $434.2 million ($7.13 per share) and $256.7 million ($4.21 per share) respectively in the prior-year periods.
• Adjusted EBITDA was $1,280.4 million for the quarter and $2,130.8 million for the nine months, compared to $766.7 million and $978.2 million respectively in the prior-year periods.
• Adjusted EBITDA excluding Small Refinery Exemptions (SREs) was $1,038.1 million for the quarter and $1,657.6 million for the nine months.
• Net revenues were $4,392.1 million for the quarter and $11,132.2 million for the nine months, compared to $2,887.0 million and $8,293.5 million respectively in the prior-year periods.
• Cash provided by operating activities was $567.4 million for the quarter and $1,291.6 million for the nine months, compared to $44.3 million and $34.4 million respectively in the prior-year periods.
• Cash and cash equivalents totaled $1,335.1 million as of September 30, 2026, compared to $625.8 million as of December 31, 2025.
• Total long-term debt was $3,389.8 million as of September 30, 2026, resulting in net debt of $2,054.7 million; excluding Delek Logistics, the company held a net cash position of $21.9 million.

Guidance and Future Outlook

• Increased annual adjusted EBITDA guidance for Delek Logistics (DKL) to $530-560 million.
• Increased the Enterprise Optimization Plan (EOP) annual run-rate cash flow improvements guidance to at least $250 million, up from $220 million.
• Expects to repay the outstanding $850 million Term Loan during the fourth quarter of 2026.
• Plans to repurchase up to $100 million of common stock in the fourth quarter of 2026.
• Management indicated being well-positioned to add an additional $60 million of the $75 million EBITDA growth guidance for 2027.
• Anticipates capturing benefits of a constructive margin environment for the remainder of the year with the full system online.

Business Segments and Product Lines

• Refining Segment: Adjusted EBITDA was $1,242.1 million for the quarter, up from $697.4 million in the prior-year quarter, driven by a 191.2% increase in benchmark crack spreads. Adjusted EBITDA was impacted by inventory adjustments of $86.3 million.
• Logistics Segment: Adjusted EBITDA was $142.9 million for the quarter, up from $138.1 million in the prior-year quarter, reflecting higher wholesale margins and increased interest income from sales-type leases.
• Refining Operations: Total refining production margin per barrel of total throughput, excluding SREs, was $38.56 for the quarter compared to $9.59 in the prior-year quarter. Crude utilization was 100.2% of nameplate capacity.
• Logistics Operations: Midland Gathering Assets throughput averaged 205,606 bpd for the quarter. Delaware Gathering Assets included 150,814 bpd of crude oil gathering and 93,777 Mcfd of natural gas gathering.
• New Transactions: Issued $460 million of 0.00% Convertible Senior Notes due 2031 on September 29, 2026. Delek Logistics completed an equity offering of 4,600,000 common units on August 14, 2026, raising net proceeds used to repay revolving facility borrowings.
• Regulatory: Received full Small Refinery Exemptions (SREs) for the 2024 compliance year (Krotz Springs) and 2025 compliance year (all refineries), resulting in a $334.7 million reduction in Cost of materials and other.

Market and Competitive Landscape

• Benchmark crack spreads were up an average of 191.2% from prior-year levels during the third quarter of 2026.
• WTI Cushing crude oil averaged $85.79 per barrel for the quarter, compared to $65.06 in the prior-year quarter.
• U.S. Gulf Coast 5-3-2 crack spread averaged $63.52 per barrel for the quarter, compared to $22.57 in the prior-year quarter.
• The company noted a constructive margin environment continuing for the remainder of the year.

Risks and Challenges

• Forward-looking statements involve risks including political or regulatory developments, tariffs, taxes, and changes in governmental policies relating to crude oil, natural gas, or renewables.
• Risks include uncertainty regarding crude oil quantities and costs, refined product pricing, and actions by OPEC and non-OPEC countries.
• Risks associated with the integration of Delek Logistics' acquired businesses (Delaware Gathering, Permian Gathering, H2O Midstream, Gravity Water Midstream).
• Potential for asset write-downs or impairments if acquired assets suffer a diminishment in fair value.
• Risks related to renewable fuel standard waivers and potential litigation or legislation changes.
• Operating hazards inherent in transporting, storing, and processing crude oil and petroleum products.

Management Commentary and Tone

• CEO Avigal Soreq described the results as a "testament to the strong progress" in making Delek a strong free cash flow generator through the cycle.
• Management attributed strong results to smooth operations, access to advantaged barrels, and industry-leading distillate and jet yield.
• Management expressed confidence in the balance sheet improvement and the ability to pay down the term loan in the fourth quarter.
• Management highlighted a "balanced approach to capital allocation" and the strategic separation of DK and DKL to unlock standalone value.
• The tone was optimistic regarding the setup for the remainder of 2026 and beyond, focusing on safe operations, higher margins, and capital discipline.

Analyst Questions and Answers

• No specific analyst questions and answers were included in the provided press release text.

Other Key Points

• Purchased $50.0 million in Delek US common stock during the quarter.
• Paid $15.6 million in dividends and increased the regular quarterly dividend by approximately 18% to $0.30 per share.
• Recorded restructuring costs of $5.5 million ($4.3 million after-tax) associated with a business transformation focused on cost structure efficiency.
• The Board of Directors approved the regular quarterly dividend of $0.300 per share to be paid on November 18, 2026, to shareholders of record on November 10, 2026.
• Delek US Holdings owns approximately 58.0% of Delek Logistics Partners, LP as of September 30, 2026.
• The company operates refineries in Tyler and Big Spring, Texas; El Dorado, Arkansas; and Krotz Springs, Louisiana, with a combined nameplate crude throughput capacity of 302,000 barrels per day.