Delek US Holdings Inc. (DK, Financial) filed Quarterly Report for the period ended 2010-03-31.
Delek Us Holdings Inc. has a market cap of $363.6 million; its shares were traded at around $6.69 with and P/S ratio of 0.1. The dividend yield of Delek Us Holdings Inc. stocks is 2.2%.DK is in the portfolios of Paul Tudor Jones of The Tudor Group, Chuck Royce of Royce& Associates.
Our average throughput for the first quarter of 2010 was approximately 54,400 barrels per day, of which approximately 49,000 barrels per day was crude oil, delivering capacity utilization at the Tyler refinery of 81.7%. The refinery produced approximately 94% light products in the first quarter of 2010 and recognized an operating margin, excluding intercompany fees paid to the marketing segment of $2.6 million, of $6.24 per barrel sold. This margin represented 94.2% of the average Gulf Coast crack spread in the first quarter of 2010. The refinery was not operational during the first quarter of 2009 due to the explosion and fire that occurred on November 20, 2008.
Our marketing segment generated net sales for the 2010 first quarter of $120.5 million on sales of approximately 14,300 barrels per day of refined products compared to $71.6 million on sales of approximately 13,300 barrels per day in the first quarter of 2009. Net sales for the marketing segment included intercompany revenues of $2.6 million relating to marketing services fees and $2.3 million in crude transportation and storage fees paid by our refining segment in the first quarter of 2010. In the first quarter of 2009, sales included $3.1 million in marketing service fees. The refining segment began paying crude transportation and storage fees in April 2009.
Retail fuel margins increased 15.2% in the first quarter 2010, to $0.129 per gallon, compared to $0.112 per gallon in the 2009 first quarter. This increase was partially offset by a decline in same-store fuel gallons of 0.3% in the first quarter of 2010, compared to a decline of 2.2% in the first quarter of 2009. Same-store merchandise sales increased 1.2% in the first quarter of 2010, versus a 4.4% decline in the prior year period. Increased gains within our fresh grab n go food business, combined with higher sales of snacks, candy and cigarettes, contributed to sales growth in the period, particularly at our re-imaged store locations. These increases were partially offset by a decline in merchandise margin, from 32.0% in the first quarter of 2009 to 30.8% in the same period of 2010.
We continually experience volatility in the energy markets. Concerns about the U.S. economy and continued uncertainty in several oil-producing regions of the world resulted in volatility in the price of crude oil and product prices in the first quarters of 2010 and 2009. The average price of crude oil in the first quarters of 2010 and 2009 was $78.61 and $43.24 per barrel, respectively. The U.S. Gulf Coast 5-3-2 crack spread ranged from a high of $8.27 per barrel to a low of $4.58 per barrel and averaged $6.62 per barrel during the first quarter of 2010 compared to an average of $9.14 in the first quarter of 2009. This reduction in the metric reflects the lost margin experienced in the industry.
We also continue to experience high volatility in the wholesale cost of fuel. The U.S. Gulf Coast price for unleaded gasoline ranged from a low of $1.85 per gallon to a high of $2.20 per gallon during the first quarter of 2010 and averaged $2.04 per gallon in the 2010 first quarter, which compares to an average of $1.22 per gallon in the first quarter of 2009. If this volatility continues and we are unable to fully pass our cost increases on to our customers, our retail fuel margins will decline. Additionally, increases in the retail price of fuel could result in lower demand for fuel and reduced customer traffic inside our convenience stores in our retail segment. This may place downward pressure on in-store merchandise sales and margins. Finally, the higher cost of fuel has resulted in higher credit card fees as a percentage of sales and gross profit. As fuel prices increase, we see increased usage of credit cards by our customers and pay higher interchange costs since credit card fees are paid as a percentage of sales.
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Delek Us Holdings Inc. has a market cap of $363.6 million; its shares were traded at around $6.69 with and P/S ratio of 0.1. The dividend yield of Delek Us Holdings Inc. stocks is 2.2%.DK is in the portfolios of Paul Tudor Jones of The Tudor Group, Chuck Royce of Royce& Associates.
Highlight of Business Operations:
Currently we carry, and at the time of the incident we carried, insurance coverage of $1.0 billion in combined limits to insure against property damage and business interruption. Under these policies, we are subject to a $5.0 million deductible for property damage insurance and a 45 calendar day waiting period for business interruption insurance. We recorded property damage expenses of $0.2 million during the three months ended March 31, 2010. During the three months ended March 31, 2009, we recognized income from insurance proceeds of $30.6 million, of which, $21.1 million is included as business interruption proceeds and $9.5 million is included as property damage. We also recorded expenses of $7.9 million, resulting in a net gain of $1.6 million related to property damage proceeds. Although we have submitted all of our contemplated insurance claims, we have not fully and finally resolved all of our outstanding claims with our insurance companies for a number of reasons, including, without limitation, the interpretation of insurance policy provisions, insurance deductible amounts and periods, market conditions that affect projected revenues and firm profits, additional or revised information, audit adjustments and other verifications of the insurance claim and subsequent events.Our average throughput for the first quarter of 2010 was approximately 54,400 barrels per day, of which approximately 49,000 barrels per day was crude oil, delivering capacity utilization at the Tyler refinery of 81.7%. The refinery produced approximately 94% light products in the first quarter of 2010 and recognized an operating margin, excluding intercompany fees paid to the marketing segment of $2.6 million, of $6.24 per barrel sold. This margin represented 94.2% of the average Gulf Coast crack spread in the first quarter of 2010. The refinery was not operational during the first quarter of 2009 due to the explosion and fire that occurred on November 20, 2008.
Our marketing segment generated net sales for the 2010 first quarter of $120.5 million on sales of approximately 14,300 barrels per day of refined products compared to $71.6 million on sales of approximately 13,300 barrels per day in the first quarter of 2009. Net sales for the marketing segment included intercompany revenues of $2.6 million relating to marketing services fees and $2.3 million in crude transportation and storage fees paid by our refining segment in the first quarter of 2010. In the first quarter of 2009, sales included $3.1 million in marketing service fees. The refining segment began paying crude transportation and storage fees in April 2009.
Retail fuel margins increased 15.2% in the first quarter 2010, to $0.129 per gallon, compared to $0.112 per gallon in the 2009 first quarter. This increase was partially offset by a decline in same-store fuel gallons of 0.3% in the first quarter of 2010, compared to a decline of 2.2% in the first quarter of 2009. Same-store merchandise sales increased 1.2% in the first quarter of 2010, versus a 4.4% decline in the prior year period. Increased gains within our fresh grab n go food business, combined with higher sales of snacks, candy and cigarettes, contributed to sales growth in the period, particularly at our re-imaged store locations. These increases were partially offset by a decline in merchandise margin, from 32.0% in the first quarter of 2009 to 30.8% in the same period of 2010.
We continually experience volatility in the energy markets. Concerns about the U.S. economy and continued uncertainty in several oil-producing regions of the world resulted in volatility in the price of crude oil and product prices in the first quarters of 2010 and 2009. The average price of crude oil in the first quarters of 2010 and 2009 was $78.61 and $43.24 per barrel, respectively. The U.S. Gulf Coast 5-3-2 crack spread ranged from a high of $8.27 per barrel to a low of $4.58 per barrel and averaged $6.62 per barrel during the first quarter of 2010 compared to an average of $9.14 in the first quarter of 2009. This reduction in the metric reflects the lost margin experienced in the industry.
We also continue to experience high volatility in the wholesale cost of fuel. The U.S. Gulf Coast price for unleaded gasoline ranged from a low of $1.85 per gallon to a high of $2.20 per gallon during the first quarter of 2010 and averaged $2.04 per gallon in the 2010 first quarter, which compares to an average of $1.22 per gallon in the first quarter of 2009. If this volatility continues and we are unable to fully pass our cost increases on to our customers, our retail fuel margins will decline. Additionally, increases in the retail price of fuel could result in lower demand for fuel and reduced customer traffic inside our convenience stores in our retail segment. This may place downward pressure on in-store merchandise sales and margins. Finally, the higher cost of fuel has resulted in higher credit card fees as a percentage of sales and gross profit. As fuel prices increase, we see increased usage of credit cards by our customers and pay higher interchange costs since credit card fees are paid as a percentage of sales.
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