Commodity price and crack spread volatility
Refining profitability depends on the spread between crude input costs and refined product prices.
- Scope
- Refining segment
- Materiality
- high
Delek US Holdings, Inc.
Delek US Holdings, Inc. is a U.S. downstream energy company that refines crude oil into transportation fuels and other petroleum products through four Gulf Coast-region refineries. It also owns a controlling interest in Delek Logistics, which provides the pipelines, terminals, tankage, and related services that move crude oil and refined products to and from those refineries.
6,5 %
5,7 %
−0,2 %
−9,5 %
0.82
0.53
| % | |
|---|---|
| Refining | 70% Converts crude oil into gasoline, diesel, jet fuel, LPGs, propylene and asphalt at Tyler, El Dorado, Big Spring and Krotz Springs. |
| Logistics | 20% Pipeline, terminal, tankage and throughput services that support crude supply and product distribution. |
| Wholesale Marketing and Trading | 7% Wholesale motor fuel distribution and related supply/intermediation activities. |
| Water Disposal and Recycling | 3% Produced-water disposal and recycling operations in the Permian Basin and the Bakken. |
Delek sells refined products primarily into wholesale fuel markets, where buyers include distributors, marketers,...
- Wholesale fuel distributors and marketersprimary
Buy gasoline, diesel and other refined products for resale into local and regional markets.
- Industrial, commercial and aviation customerssecondary
Buy jet fuel, LPGs and other refined products for operational use and supply reliability.
- Midstream shippers and counterpartiesprimary
Use Delek Logistics pipelines, terminals and tankage to move and store crude oil and refined products.
- Upstream oil and gas operatorsemerging
Buy water disposal and recycling services in producing basins such as the Permian and Bakken.
Delek's core operations are concentrated in the U.S. Gulf Coast and nearby inland markets, with refineries in Texas,...
- •Refineries in Tyler, El Dorado, Big Spring and Krotz Springs
- •Logistics assets across Arkansas, Louisiana, Oklahoma, Tennessee and Texas
- •Primary operating focus in the Gulf Coast Region (PADD III)
- •Water disposal and recycling operations in the Permian Basin and Bakken
- •Localized markets increase exposure to regional supply and demand shifts
Management is focused on operational excellence, financial strength and flexibility, and strategic initiatives that...
01
Operational excellenceshort-term
Higher reliability and efficiency support refinery utilization and logistics throughput.
02
Financial strength and flexibilityshort-term
A stronger balance sheet improves resilience through commodity cycles and funding capacity.
03
Portfolio optimization and value realizationmedium-term
Separating or monetizing parts of the integrated system could surface hidden asset value.
04
Growth and diversificationmedium-term
New logistics and water-handling assets reduce dependence on refining margins.
Delek is exposed to volatile crack spreads, crude prices, and regional supply-demand imbalances that can quickly...
Regional market concentration
Operations are concentrated in the Gulf Coast and nearby inland markets, making results sensitive to local outages and demand shifts.
- Scope
- Tyler, El Dorado, Big Spring and Krotz Springs refineries
- Materiality
- high
Dependence on Delek Logistics
Refineries rely on Delek Logistics for crude supply and product distribution, so logistics disruptions can affect throughput.
- Scope
- Pipeline, terminal and tankage agreements
- Materiality
- high
Environmental and regulatory compliance
Refining, pipelines and water-handling operations face permitting, emissions and operational compliance obligations.
- Scope
- Refineries and logistics assets
- Materiality
- high
Integration and acquisition execution
Recent acquisitions and asset transfers must be integrated successfully to realize expected synergies and returns.
- Scope
- Gravity water disposal and recycling acquisition; strategic transactions with Delek Logistics
- Materiality
- medium
Impairment of goodwill and long-lived assets
Weak market conditions or underperforming assets can trigger non-cash write-downs.
- Scope
- Acquired businesses and refinery assets
- Materiality
- high
Goodwill impairment
Non-cash charges can reduce earnings and equity
Long-lived asset impairment
Can materially affect operating income and asset values
Acquisition accounting and fair value estimates
Future amortization and impairment depend on initial valuation assumptions
Inventory valuation and commodity exposure
Can cause quarter-to-quarter volatility in gross profit
: 28.4.2026