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

Delek US (NYSE:DK) issued its earnings results on Wednesday. The oil and gas company reported $5.48 EPS for the quarter, beating analysts’ consensus estimates of $2.67 by $2.81, FiscalAI reports. The business had revenue of $4.09 billion during the quarter, compared to analyst estimates of $3.44 billion. Delek US had a positive return on equity of 22.90% and a negative net margin of 0.48%.Delek US’s revenue was up 47.9% on a year-over-year basis. During the same period in the prior year, the company posted ($0.56) earnings per share.

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 Price Performance

Shares of DK stock traded down $6.50 during trading hours on Wednesday, hitting $59.70. 1,993,461 shares of the company’s stock were exchanged, compared to its average volume of 1,226,687. The stock’s 50-day moving average is $53.67 and its 200-day moving average is $44.44. The company has a debt-to-equity ratio of 10.51, a current ratio of 0.76 and a quick ratio of 0.49. The stock has a market cap of $3.66 billion, a price-to-earnings ratio of -65.60, a price-to-earnings-growth ratio of 1.74 and a beta of 0.57. Delek US has a 52 week low of $19.81 and a 52 week high of $68.93.

Delek US Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, August 10th. Stockholders of record on Monday, August 3rd will be issued a dividend of $0.255 per share. This represents a $1.02 annualized dividend and a dividend yield of 1.7%. The ex-dividend date is Monday, August 3rd. Delek US’s dividend payout ratio is presently -112.09%.

Analysts Set New Price Targets

Several brokerages have issued reports on DK. UBS Group boosted their price target on shares of Delek US from $42.00 to $48.00 and gave the company a “neutral” rating in a report on Friday, April 10th. Zacks Research raised shares of Delek US from a “hold” rating to a “strong-buy” rating in a report on Friday, June 26th. JPMorgan Chase & Co. lifted their target price on shares of Delek US from $57.00 to $62.00 and gave the company a “neutral” rating in a research report on Tuesday, July 14th. Mizuho upped their target price on shares of Delek US from $54.00 to $60.00 and gave the company an “outperform” rating in a research note on Wednesday, May 27th. Finally, TD Cowen increased their price target on shares of Delek US from $58.00 to $76.00 and gave the stock a “buy” rating in a research report on Tuesday, July 21st. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, six have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, Delek US currently has a consensus rating of “Hold” and an average price target of $51.92.

Insider Buying and Selling

In other Delek US news, Director William J. Finnerty sold 5,000 shares of the stock in a transaction dated Monday, June 29th. The shares were sold at an average price of $51.50, for a total transaction of $257,500.00. Following the sale, the director owned 34,805 shares of the company’s stock, valued at $1,792,457.50. This represents a 12.56% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Robert G. Wright sold 10,720 shares of the stock in a transaction dated Wednesday, May 13th. The stock was sold at an average price of $47.07, for a total transaction of $504,590.40. Following the sale, the executive vice president directly owned 48,148 shares in the company, valued at approximately $2,266,326.36. This represents a 18.21% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 39,270 shares of company stock valued at $1,828,718 in the last 90 days. 3.56% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Delek US

Large investors have recently modified their holdings of the stock. Caitong International Asset Management Co. Ltd increased its holdings in shares of Delek US by 95.6% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 884 shares of the oil and gas company’s stock valued at $26,000 after purchasing an additional 432 shares in the last quarter. Brown Brothers Harriman & Co. acquired a new position in Delek US during the 3rd quarter worth $27,000. Focus Partners Wealth acquired a new position in Delek US during the 3rd quarter worth $44,000. Aster Capital Management DIFC Ltd lifted its holdings in Delek US by 23.2% during the 4th quarter. Aster Capital Management DIFC Ltd now owns 2,259 shares of the oil and gas company’s stock worth $67,000 after buying an additional 425 shares in the last quarter. Finally, Kestra Advisory Services LLC bought a new position in Delek US in the 4th quarter valued at $79,000. 97.01% of the stock is currently 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.