Morgan Stanley has adjusted its price target for Delek US (DK, Financial), raising it from $15 to $19. Despite this increase, the investment firm maintains an Underweight rating on the company's shares.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 11 analysts, the average target price for Delek US Holdings Inc (DK, Financial) is $18.27 with a high estimate of $27.00 and a low estimate of $10.00. The average target implies an downside of 30.15% from the current price of $26.16. More detailed estimate data can be found on the Delek US Holdings Inc (DK) Forecast page.
Based on the consensus recommendation from 14 brokerage firms, Delek US Holdings Inc's (DK, Financial) average brokerage recommendation is currently 3.1, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Delek US Holdings Inc (DK, Financial) in one year is $17.10, suggesting a downside of 34.63% from the current price of $26.16. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Delek US Holdings Inc (DK) Summary page.
DK Key Business Developments
Release Date: May 07, 2025
- Net Loss: $173 million or negative $2.78 per share.
- Adjusted Net Loss: $144 million or negative $2.32 per share.
- Adjusted EBITDA: $26.5 million.
- Refining Segment EBITDA Increase: $42.2 million due to higher margin environment and higher throughputs.
- Logistics Segment EBITDA: $117 million, a $9 million increase over previous record.
- Cash Flow from Operations: Use of $62 million.
- Investing Activities: $315 million, including $180 million for Gravity acquisition and $136 million for PP&E additions.
- Financing Activities: $265 million, including $32 million in share repurchases and $16 million in dividend payments.
- First Quarter Capital Expenditures: $133 million, with $72 million in logistics segment.
- Total Throughput: Tyler: 69,000 barrels/day; El Dorado: 76,000 barrels/day; Big Spring: 59,000 barrels/day; Across Springs: 85,000 barrels/day.
- Production Margin: Tyler: $7.82 per barrel; El Dorado: $3.83 per barrel; Big Spring: $4.86 per barrel; Across Springs: $6.40 per barrel.
- Operating Expenses per Barrel: Tyler: $5.69; El Dorado: $5.16; Big Spring: $8.36; Across Springs: $5.36.
- Supply and Marketing Loss: $23.7 million, including $8.7 million from wholesale marketing and $8.5 million from asphalt.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Delek US Holdings Inc (DK, Financial) made significant progress in improving operational performance, including successful planned outages at Tyler and Big Spring refineries.
- The company advanced its midstream deconsolidation goal, increasing third-party cash flow at DKL to around 80% and improving financial liquidity by approximately $250 million.
- DKL's water acquisitions and new gas processing plant are performing well, supporting cash flow and distribution growth.
- The enterprise optimization plan (EOP) is on track to achieve at least $120 million in annual cash flow improvement.
- Delek US Holdings Inc (DK) maintained a strong balance sheet, allowing for countercyclical share buybacks and dividend payments.
Negative Points
- Delek US Holdings Inc (DK) reported a net loss of $173 million for the first quarter, with an adjusted net loss of $144 million.
- The refining margin environment remained challenging, approximately $4 below mid-cycle levels.
- Supply and marketing operations contributed a loss of $23.7 million in the first quarter, driven by seasonal low demand trends.
- Operating expenses were relatively high, with Big Spring's operating expenses at $8.36 per barrel due to maintenance activities.
- The company faces uncertainties regarding small refinery exemptions (SREs) and their potential impact on financial performance.
