Q1 2026 Delek US Holdings Inc Earnings Call Transcript
Key Points
- Delek US Holdings Inc (DK) successfully completed the Big Spring turnaround on time and within budget, improving reliability and cost structure.
- The company raised its Enterprise Optimization Plan (EOP) target to at least $220 million annually, contributing approximately $60 million to Q1 2026 P&L.
- Delek Logistics Partners LP reaffirmed its 2026 EBITDA guidance of $520 million to $560 million, with significant tailwinds in the business.
- The company has a strong balance sheet, allowing for continued dividends and buybacks, supporting a disciplined capital allocation strategy.
- Delek US Holdings Inc (DK) benefits from direct access to multiple grades of domestic crude and high distillate and jet yields, positioning it well in the current market environment.
- Delek US Holdings Inc (DK) reported a net loss of $201 million or $3.34 per share for Q1 2026.
- The Refining segment experienced a decline in adjusted EBITDA due to the Big Spring turnaround and timing impacts in the Supply and Marketing segment.
- Supply and Marketing reported a loss of approximately $61 million in the quarter, with wholesale marketing and asphalt contributing to the losses.
- The company faces challenges from elevated crude and product prices, dislocation between physical and paper grades, and wide crude differentials.
- There is uncertainty regarding the granting of Small Refinery Exemptions (SREs) by the EPA, which could impact compliance costs and fuel prices.
Hello, everyone. Thank you for joining us, and welcome to the Delek US first-quarter 2026 earnings call. (Operator Instructions) I will now hand the conference over to Robert Wright, EVP. Robert, please go ahead.
Good morning, and welcome to the Delek US first-quarter earnings conference call. Participants joining me on today's call will include Avigal Soreq, President and CEO; Mark Hobbs; EVP, Chief Financial Officer; as well as other members of our management team. Today's presentation material can be found on the Investor Relations section of the Delek US website.
Slide 2 contains our Safe Harbor statement regarding forward-looking information. As a reminder, this conference call will contain forward-looking information as defined under the Federal Securities laws, including statements regarding guidance and future business outlook.
Any forward-looking statements made
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