Delek US Holdings Inc. (DK, Financial) filed Quarterly Report for the period ended 2009-03-31.
DELEK US HOLDINGS INC. is a diversified energy business focused on petroleum refining marketing and supply of refined products and retail marketing of fuel and general merchandise. Delek US Holdings Inc. has a market cap of $551.31 million; its shares were traded at around $10.27 with a P/E ratio of 12.52 and P/S ratio of 0.12. The dividend yield of Delek US Holdings Inc. stocks is 1.46%.
Our marketing segment generated net sales for the 2009 first quarter of $68.5 million on sales of approximately 13,300 barrels per day of refined products compared to $184.3 million on sales of approximately 17,300 barrels per day in the first quarter of 2008. Constraints in the mid-continent market related to lower demand put pricing pressure on our West Texas market. This resulted in both lower gallons sold and lower margins.
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 2009 and 2008. The average price of crude oil in 2009 and 2008 was $43.24 and $97.74 per barrel, respectively. The U.S. Gulf Coast 5-3-2 crack spread ranged from a high of $18.97 per barrel to a low of $2.56 per barrel and averaged $9.14 per barrel during the first quarter of 2009 compared to an average of $8.84 in the first quarter of 2008.
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 $1.04 per gallon to a high of $1.49 per gallon during the first quarter of 2009 and averaged $1.22 per gallon in the 2009 first quarter, which compares to averages of $2.49 per gallon in the first quarter of 2008. 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.
The cost of natural gas used for fuel in our Tyler refinery has also shown historic volatility. Our average cost of natural gas decreased to $4.58 per million British Thermal Units (MMBTU) in the first quarter of 2009 from $8.85 per million MMBTU in the first quarter of 2008.
Read the The complete Report
DELEK US HOLDINGS INC. is a diversified energy business focused on petroleum refining marketing and supply of refined products and retail marketing of fuel and general merchandise. Delek US Holdings Inc. has a market cap of $551.31 million; its shares were traded at around $10.27 with a P/E ratio of 12.52 and P/S ratio of 0.12. The dividend yield of Delek US Holdings Inc. stocks is 1.46%.
Highlight of Business Operations:
We carry insurance coverage with $1.0 billion in combined limits to insure property damage and business interruption, which is likely to cover the bulk of the reconstruction and business interruption expense during the transitional recovery period. It is currently anticipated that the combined costs of reconstruction and business interruption will be substantially below $1.0 billion. The actual amount of such insurance claims may vary significantly from current expectations because of a number of factors including, without limitation, the interpretation of insurance policy provisions, the length of the insurance claim, insurance deductible amounts and periods, market conditions that affect projected revenues and firm profits, actual operating and rebuild costs and expenses, additional or revised information, audit adjustments and other verifications of the insurance claim and subsequent events.Our marketing segment generated net sales for the 2009 first quarter of $68.5 million on sales of approximately 13,300 barrels per day of refined products compared to $184.3 million on sales of approximately 17,300 barrels per day in the first quarter of 2008. Constraints in the mid-continent market related to lower demand put pricing pressure on our West Texas market. This resulted in both lower gallons sold and lower margins.
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 2009 and 2008. The average price of crude oil in 2009 and 2008 was $43.24 and $97.74 per barrel, respectively. The U.S. Gulf Coast 5-3-2 crack spread ranged from a high of $18.97 per barrel to a low of $2.56 per barrel and averaged $9.14 per barrel during the first quarter of 2009 compared to an average of $8.84 in the first quarter of 2008.
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 $1.04 per gallon to a high of $1.49 per gallon during the first quarter of 2009 and averaged $1.22 per gallon in the 2009 first quarter, which compares to averages of $2.49 per gallon in the first quarter of 2008. 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.
The cost of natural gas used for fuel in our Tyler refinery has also shown historic volatility. Our average cost of natural gas decreased to $4.58 per million British Thermal Units (MMBTU) in the first quarter of 2009 from $8.85 per million MMBTU in the first quarter of 2008.
Read the The complete Report
