Delek US Holdings (NYSE:DK) operates four mid-sized refineries in Texas, Oklahoma, and Louisiana. Its plants are well-located to benefit from wider crude differentials. Earlier in 2017, Delek acquired competitor Alon USA and as a larger, better capitalized combined company, it has opportunities to reduce costs and fund additional capital improvements to generate higher levels of income. During the quarter, Delek also benefitted from greater profitability due to declining crude and product inventories plus some price divergences created by the disruption from Hurricane Harvey.
From the Keeley All Cap Value Fund fourth quarter 2017 shareholder letter.
