Delek US Holdings, Inc. (NYSE:DK) (“Delek US”) today announced
financial results for its fourth quarter ended December 31,
2016. Delek US reported fourth quarter net income of $44.2 million,
or $0.72 per diluted share, versus a net loss of $(31.5) million,
or $(0.51) per basic share, for the quarter ended December 31,
2015. On an adjusted basis, Delek US reported a net loss of
$(27.7) million, or $(0.44) per basic share for the quarter ended
December 31, 2016, compared to a net loss of $(4.3) million,
or $(0.07) per basic share on an adjusted basis in the prior year
period. The adjustments for fourth quarter 2016 include,
along with other items, an after-tax gain of $80.6 million, or
$1.30 per share, from the sale of the retail related assets that
closed in November 2016. Reconciliations of GAAP earnings to
adjusted earnings are included in the financial tables attached to
this release.
For the full year 2016, Delek US reported a net
loss of $(153.7) million, or $(2.49) per basic share, compared to
net income of $19.4 million, or $0.32 per diluted share in 2015. On
an adjusted basis, the net loss was $(97.5) million, or $(1.58) per
basic share in 2016, compared to net income of $60.4 million, or
$0.98 per diluted share in 2015. This change in the adjusted
results on a year-over-year basis was primarily due to a lower Gulf
Coast 5-3-2 crack spread that averaged $9.12 per barrel in 2016
compared to $14.68 per barrel in 2015, combined with higher costs
related to RINs and lower crude oil price differentials during
2016.
On November 14, 2016, Delek US closed the
previously announced transaction to sell its retail related assets
to a U.S. subsidiary of Compañía de Petróleos de Chile COPEC S.A.
(SNSE:COPEC). Net cash proceeds before taxes related to this
transaction were approximately $379 million and the estimated
income tax payment related to this transaction should occur in the
first half of 2017. This transaction improved Delek US' financial
flexibility, as the cash balance increased to $689 million at
December 31, 2016, compared to $315.3 million at September 30,
2016.
On a year-over-year basis during the fourth
quarter, lower results were primarily due to a decline in
performance in the refining segment. From a market standpoint, a
combination of a timing effect from an increasing crude oil price
environment in the fourth quarter 2016 that reduced margin
realization and continued pressure in the wholesale business on
netbacks across terminals, were factors in the year-over-year
change. General and administrative expenses increased on a
year-over-year basis primarily due to transaction-related expenses
of approximately $5.5 million in the fourth quarter 2016, compared
to the prior year period that was reduced by approximately $6.4
million related to a litigation settlement. Partially offsetting
these factors was a higher crack spread environment.
Uzi Yemin, Chairman, President and Chief Executive
Officer of Delek US stated, "We are moving forward with the next
stage of our growth to complete the acquisition of the remaining
outstanding common stock of Alon. This combination will create a
refining company with approximately 300,000 barrels per day of
crude throughput capacity and current logistical access to
approximately 200,000 barrels per day of Permian Basin sourced
crude. In addition, we should be able to unlock approximately $78
million of logistics EBITDA through future potential dropdowns and
use our logistics platform to support the larger Permian based
system created by this transaction. We believe that the closing of
this strategic combination will result in a larger, more diverse
company that is well positioned to take advantage of opportunities
in the market and better navigate the cyclical nature of our
business."
Yemin concluded, "We look forward to 2017, the
combination of increased drilling activity in the Permian Basin
that may improve crude oil differentials, contribution from our
joint venture crude oil pipelines in logistics and the potential to
create approximately $95 million of synergies from the combined
company should benefit our operations. We remain focused on
creating long-term shareholder value as we take the next step in
the growth of Delek US."
Alon Investment UpdateOn January
3, 2017, Delek US announced that it reached a definitive agreement,
subject to customary closing conditions, including regulatory and
shareholder approvals, under which Delek US will acquire all of the
outstanding shares of Alon USA Energy, Inc. (NYSE:ALJ) ("Alon")
common stock which Delek US does not already own in an all-stock
transaction. Delek US currently owns approximately 33.7 million
shares of common stock of Alon. Under terms of the agreement, the
owners of the remaining outstanding shares in Alon will receive a
fixed exchange ratio of 0.5040 Delek US shares for each share of
Alon. This transaction is subject to approval of both Delek
US' and Alon's shareholders.
This transaction was unanimously approved by the
Special Committee of Alon's Board of Directors and by the Board of
Directors of Delek US. Additionally, the Board of Directors of Alon
approved the transaction, excluding Delek employed directors who
abstained from voting on the transaction. The combination is
expected to create a company with a strong financial position and
significant access to the Permian Basin.
At December 31, 2016, Delek US owned approximately
47 percent of the outstanding stock of Alon, which was acquired in
May 2015. The loss from the equity investment in Alon was $(9.2)
million in the fourth quarter 2016 compared to $(21.8) million in
the fourth quarter 2015. In the fourth quarter 2015, the loss from
the equity investment in Alon included $18.7 million related to a
goodwill impairment at Alon and the effect of a scheduled
turnaround at Alon's Krotz Springs refinery.
Regular Quarterly DividendDelek US
announced today that its Board of Directors had declared its
regular quarterly cash dividend of $0.15 per share. Shareholders of
record on March 15, 2017 will receive this cash dividend
payable on March 29, 2017.
LiquidityAs of December 31,
2016, Delek US had a cash balance of $689.2 million and total
consolidated debt of $832.9 million, resulting in net debt of
$143.7 million. As of December 31, 2016, Delek US'
subsidiary, Delek Logistics Partners, LP (NYSE:DKL) ("Delek
Logistics"), had $392.6 million of debt, which is included in the
consolidated amounts on Delek US' balance sheet. Excluding Delek
Logistics, Delek US had approximately $689.1 million in cash and
$440.3 million of debt, or a $248.8 million net cash position.
Refining SegmentRefining segment
contribution margin was $(3.6) million in the fourth quarter 2016
compared to $11.3 million in the fourth quarter 2015. On a
year-over-year basis several factors affected performance at the
refineries. First, an increasing crude oil price environment
in the fourth quarter 2016 resulted in a timing effect that lowered
margins at both refineries. Second, the El Dorado margin was
further reduced by an adverse inventory market valuation effect and
asphalt performance. Third, RINs continued to affect the netbacks
across terminals in the wholesale system compared to the prior year
period reducing margin realizations. Finally, the fourth
quarter 2016 included a net hedging loss of $(17.0) million
compared to a $(2.0) million hedging loss in the prior year period
and there was a $12.2 million lower benefit in the quarter from the
bio-diesel tax credit on a year-over-year basis.
While the Tyler refinery contribution margin
improved on a year-over-year basis, the El Dorado refinery
contribution margin declined by approximately $21.8 million on a
year-over-year basis. This decline was primarily due to reduced
performance from asphalt, as sales prices lagged during a period of
increasing crude oil prices and an adverse inventory effect
associated with asphalt and El Dorado's supply and offtake
agreement, which on a combined basis accounted for approximately
$16.1 million of the year-over-year decline. Market changes in
January 2017 resulted in an inventory effect that was a benefit to
margins as compared to the fourth quarter 2016 results. With the
approaching construction season, asphalt demand should increase,
which may translate into an improved pricing environment during a
period of higher seasonal demand.
These factors were partially offset by a Gulf Coast
5-3-2 crack spread that increased to $9.26 per barrel for the
fourth quarter 2016, compared to $8.78 per barrel for the same
period in 2015 and lower operating expenses during the fourth
quarter 2016. In addition, there was an inventory benefit of $6.3
million in the fourth quarter 2016 compared to a charge of $14.0
million in the prior year period. This benefit from inventory
was primarily at the Tyler refinery and was partially offset by an
adverse inventory effect associated with asphalt and the supply and
offtake agreement at El Dorado. The inventory breakdown by
refinery is included in the attached financial tables. Also, lower
RINs expense was a positive factor on a year-over-year basis due to
a true up charge for prior periods that occurred in the fourth
quarter 2015.
The Midland WTI crude differential to Cushing WTI
averaged a $0.24 per barrel discount in fourth quarter 2016
compared to an average premium of $0.02 per barrel in the fourth
quarter 2015. In addition, contango in the oil futures market
decreased to $0.89 per barrel in the fourth quarter 2016, compared
to contango of $0.92 per barrel in the fourth quarter 2015. The
combination of the Midland discount and contango reduced the
average crude oil price per barrel.
During the fourth quarter 2016, approximately $6.1
million of income was recognized in the refining segment from a $1
per gallon bio-diesel blenders federal tax credit that was
recognized each period during 2016. This compares to $18.3 million
of income that was recognized in the fourth quarter 2015 from a $1
per gallon bio-diesel blenders federal tax credit that was approved
in December 2015 on a retroactive basis for calendar 2015. This
difference played a role in the change in the adjusted refining
margin per barrel on a year-over-year basis, as the Tyler refinery
included $10.3 million and the El Dorado refinery included $8.1
million of benefit in the fourth quarter 2015. In the fourth
quarter 2016 the $6.1 million bio-diesel tax credit remained with
the renewables operations and was not included in the margin at
each refinery.
RINs expense related to blending obligations was
approximately $10.0 million in the fourth quarter 2016, compared to
$14.2 million in the prior year period. In the fourth quarter
2015, the RINs expense increased by approximately $6.3 million due
to a true up charge for 2014 and the first nine months of 2015
following the announcement of new blending standards by the
Environmental Protection Agency.
In the fourth quarter 2016, operating expenses in
the refining segment decreased to $52.8 million from $57.3 million
in the prior year period. The decrease at both refineries was
primarily due to lower outside services and variable costs.
See the table below for a summary of certain
information by refinery impacting our refining segment
operations:
|
Tyler, Texas |
|
El Dorado, Arkansas |
Refinery
Operating Highlights |
Three Months Ended December 31, |
|
Three Months Ended December 31, |
|
2016 |
2015 |
|
2016 |
2015 |
Contribution Margin, $
in millions |
$ |
16.5 |
|
$ |
6.8 |
|
|
$ |
(27.2 |
) |
$ |
(5.4 |
) |
|
|
|
|
|
|
Crude Throughput,
bpd |
66,885 |
|
63,930 |
|
|
72,686 |
|
73,578 |
|
Total Throughput,
bpd |
72,830 |
|
69,965 |
|
|
78,018 |
|
80,794 |
|
Total Sales Volume,
bpd |
72,104 |
|
70,867 |
|
|
75,818 |
|
80,881 |
|
|
|
|
|
|
|
Refining Margin, $/bbl
sold |
$ |
6.33 |
|
$ |
5.39 |
|
|
$ |
(0.23 |
) |
$ |
3.01 |
|
Adjusted Refining
Margin, $/bbl sold (1) |
$ |
5.15 |
|
$ |
7.42 |
|
|
$ |
2.43 |
|
$ |
4.59 |
|
|
|
|
|
|
|
Direct Operating
Expense, $ in millions |
$ |
25.5 |
|
$ |
28.3 |
|
|
$ |
25.6 |
|
$ |
27.7 |
|
Direct Operating
Expense, $/bbl sold |
$ |
3.85 |
|
$ |
4.34 |
|
|
$ |
3.67 |
|
$ |
3.73 |
|
(1) Reconciliations of refining margin and adjusted
refining margin are included in the attached tables.
Logistics Segment
Delek US and its affiliates beneficially own
approximately 63 percent (including the 2 percent general partner
interest) of all outstanding Delek Logistics units. The logistics
segment's results include 100 percent of the performance of Delek
Logistics and adjustments for the non-controlling interests are
made on a consolidated basis.
On a year-over-year basis, segment contribution
margin in the fourth quarter 2016 increased to $27.1 million
compared to $26.3 million in the fourth quarter 2015. This change
was primarily due to an increase in west Texas gross margin and
lower operating expenses, which was partially offset by lower
volume in the SALA gathering system and reduced performance from
the Paline Pipeline.
Fourth Quarter 2016 Results | Conference
Call InformationDelek US will hold a conference call to
discuss its fourth quarter 2016 results on Tuesday, February 28,
2017 at 8:00 a.m. Central Time. Investors will have the opportunity
to listen to the conference call live by going to
www.DelekUS.com and clicking on the Investor Relations tab.
Participants are encouraged to register at least 15 minutes early
to download and install any necessary software. For those who
cannot listen to the live broadcast, a telephonic replay will be
available through May 29, 2017 by dialing (855) 859-2056, passcode
49488005. An archived version of the replay will also be available
at www.DelekUS.com for 90 days.
Investors may also wish to listen to Delek
Logistics’ (NYSE:DKL) fourth quarter earnings conference call that
will be held on Tuesday, February 28, 2017 at 7:00 a.m. Central
Time and review Delek Logistics’ earnings press release. Market
trends and information disclosed by Delek Logistics may be relevant
to the logistics segment reported by Delek US. Both a replay of the
conference call and press release for Delek Logistics are available
online at www.deleklogistics.com.
About Delek US Holdings, Inc.Delek
US Holdings, Inc. is a diversified downstream energy company with
assets in petroleum refining and logistics. The refining
segment consists of refineries operated in Tyler, Texas and El
Dorado, Arkansas with a combined nameplate production capacity of
155,000 barrels per day. Delek US Holdings, Inc. and its
affiliates also own approximately 63 percent (including the 2
percent general partner interest) of Delek Logistics Partners,
LP. Delek Logistics Partners, LP (NYSE:DKL) is a
growth-oriented master limited partnership focused on owning and
operating midstream energy infrastructure assets. Delek US
Holdings, Inc. currently owns approximately 47 percent of the
outstanding common stock of Alon USA Energy, Inc. (NYSE:ALJ).
Safe Harbor Provisions Regarding
Forward-Looking StatementsThis press release contains
forward-looking statements that are based upon current expectations
and involve a number of risks and uncertainties. Statements
concerning current estimates, expectations and projections about
future results, performance, prospects and opportunities and other
statements, concerns, or matters that are not historical facts are
“forward-looking statements,” as that term is defined under the
federal securities laws.
Investors are cautioned that the following
important factors, among others, may affect these forward-looking
statements. These factors include but are not limited to: risks and
uncertainties related to the expected timing and likelihood of
completion of the proposed merger, including the timing, receipt
and terms and conditions of any required governmental and
regulatory approvals of the proposed merger that could reduce
anticipated benefits or cause the parties to abandon the
transaction, the ability to successfully integrate the businesses,
the occurrence of any event, change or other circumstances that
could give rise to the termination of the merger agreement, the
possibility that stockholders of Delek US may not approve the
issuance of new shares of common stock in the merger or that
stockholders of Alon may not approve the merger agreement, the risk
that the parties may not be able to satisfy the conditions to the
proposed transaction in a timely manner or at all, risks related to
disruption of management time from ongoing business operations due
to the proposed transaction, the risk that any announcements
relating to the proposed transaction could have adverse effects on
the market price of Delek US' common stock or Alon's common stock,
the risk that the proposed transaction and its announcement could
have an adverse effect on the ability of Delek US and Alon to
retain customers and retain and hire key personnel and maintain
relationships with their suppliers and customers and on their
operating results and businesses generally, the risk that problems
may arise in successfully integrating the businesses of the
companies, which may result in the combined company not operating
as effectively and efficiently as expected, the risk that the
combined company may be unable to achieve cost-cutting synergies or
it may take longer than expected to achieve those synergies,
uncertainty related to timing and amount of future share
repurchases and dividend payments, risks and uncertainties with
respect to the quantities and costs of crude oil we are able to
obtain and the price of the refined petroleum products we
ultimately sell; gains and losses from derivative instruments;
management's ability to execute its strategy of growth through
acquisitions and the transactional risks associated with
acquisitions and dispositions; acquired assets may suffer a
diminishment in fair value as a result of which we may need to
record a write-down or impairment in carrying value of the asset;
changes in the scope, costs, and/or timing of capital and
maintenance projects; operating hazards inherent in transporting,
storing and processing crude oil and intermediate and finished
petroleum products; our competitive position and the effects of
competition; the projected growth of the industries in which we
operate; general economic and business conditions affecting the
southern United States; and other risks contained in Delek US’,
Delek Logistics’ and Alon's filings with the United States
Securities and Exchange Commission.
Forward-looking statements should not be read as a
guarantee of future performance or results and will not be accurate
indications of the times at or by which such performance or results
will be achieved. Forward-looking information is based on
information available at the time and/or management's good faith
belief with respect to future events, and is subject to risks and
uncertainties that could cause actual performance or results to
differ materially from those expressed in the statements.
Delek US undertakes no obligation to update or revise any such
forward-looking statements.
No Offer or SolicitationThis
communication contains discussion related to a proposed business
combination between Delek US and Alon. This announcement is for
informational purposes only and is neither an offer to purchase,
nor a solicitation of an offer to sell, any securities or the
solicitation of any vote in any jurisdiction pursuant to the
proposed transactions or otherwise, nor shall there be any sale,
issuance or transfer or securities in any jurisdiction in
contravention of applicable law. No offer of securities shall be
made except by means of a prospectus meeting the requirements of
Section 10 of the Securities Act of 1933, as amended.
Additional Information and Where to Find
ItThis communication may be deemed to be solicitation
material in respect of the proposed transaction between Delek US
and Alon. In connection with the proposed transaction, Delek US
and/or Alon may file one or more proxy statements, registration
statements, proxy statement/prospectuses or other documents with
the SEC. This communication is not a substitute for the proxy
statement, registration statement, proxy statement/prospectus or
any other documents that Delek US or Alon may file with the SEC or
send to stockholders in connection with the proposed transaction.
STOCKHOLDERS OF DELEK US AND ALON ARE URGED TO READ ALL RELEVANT
DOCUMENTS FILED WITH THE SEC, INCLUDING THE PROXY STATEMENT(S),
REGISTRATION STATEMENT(S) AND/OR PROXY STATEMENT/PROSPECTUS,
BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED
TRANSACTION. Any definitive proxy statement(s) (if and when
available) will be mailed to stockholders of Delek US and/or Alon,
as applicable. Investors and security holders will be able to
obtain copies of these documents, including the proxy
statement/prospectus, and other documents filed with the SEC (when
available) free of charge at the SEC's website, http://www.sec.gov.
Copies of documents filed with the SEC by Delek US will be made
available free of charge on Delek US’ website at
http://www.delekus.com or by contacting Delek US’ Investor
Relations Department by phone at 615-435-1366. Copies of documents
filed with the SEC by Alon will be made available free of charge on
Alon's website at http://www.alonusa.com or by contacting
Alon's Investor Relations Department by phone at 972-367-3808.
Non-GAAP Disclosures:
This earnings release includes references to
financial measures that are not defined under U.S. generally
accepted accounting principles ("GAAP"). These non-GAAP measures
include adjusted net income or loss and adjusted net income or loss
per share. Delek US believes that the presentation of these
non-GAAP measures reflects operating results that are more
indicative of Delek US' ongoing operating performance while
improving comparability to prior periods, and, as such, may provide
investors with an enhanced understanding of the Company's past
financial performance and prospects for the future. Adjusted
income or loss and adjusted net income or loss per share should not
be considered in isolation or as alternatives to net income or
loss, net income or loss per share, or any other measure of
financial performance presented in accordance with U.S. GAAP.
Additionally, because adjusted net income or loss and adjusted net
income or loss per share may be defined differently by other
companies in its industry, Delek US' definition may not be
comparable to similarly titled measures of other companies. See the
accompanying tables in this earnings release for a reconciliation
of these non-GAAP measures to the most directly comparable GAAP
measures.
Delek US Holdings, Inc. |
Consolidated Balance Sheets
(Unaudited) |
|
|
December 31, 2016 |
|
December 31, 2015 |
|
|
(In millions, except share and per share
data) |
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and
cash equivalents |
|
$ |
689.2 |
|
|
$ |
287.2 |
|
Accounts
receivable |
|
265.9 |
|
|
217.4 |
|
Accounts
receivable from related party |
|
0.1 |
|
|
0.5 |
|
Inventories, net of lower of cost or market valuation |
|
392.4 |
|
|
271.0 |
|
Assets of
discontinued operations held for sale |
|
— |
|
|
478.8 |
|
Other
current assets |
|
54.6 |
|
|
142.6 |
|
Total
current assets |
|
1,402.2 |
|
|
1,397.5 |
|
Property, plant and
equipment: |
|
|
|
|
Property,
plant and equipment |
|
1,587.6 |
|
|
1,546.9 |
|
Less:
accumulated depreciation |
|
(484.3 |
) |
|
(369.5 |
) |
Property,
plant and equipment, net |
|
1,103.3 |
|
|
1,177.4 |
|
Goodwill |
|
12.2 |
|
|
12.2 |
|
Other intangibles,
net |
|
26.7 |
|
|
27.3 |
|
Equity method
investments |
|
360.0 |
|
|
605.2 |
|
Other non-current
assets |
|
80.7 |
|
|
105.3 |
|
Total
assets |
|
$ |
2,985.1 |
|
|
$ |
3,324.9 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts
payable |
|
$ |
494.6 |
|
|
$ |
364.7 |
|
Accounts
payable to related party |
|
1.8 |
|
|
— |
|
Current
portion of long-term debt |
|
84.4 |
|
|
93.9 |
|
Obligation under Supply and Offtake Agreement |
|
124.6 |
|
|
132.0 |
|
Liabilities of discontinued operations held for sale |
|
— |
|
|
302.8 |
|
Accrued
expenses and other current liabilities |
|
235.1 |
|
|
110.7 |
|
Total
current liabilities |
|
940.5 |
|
|
1,004.1 |
|
Non-current
liabilities: |
|
|
|
|
Long-term
debt, net of current portion |
|
748.5 |
|
|
711.3 |
|
Environmental liabilities, net of current portion |
|
6.2 |
|
|
7.9 |
|
Asset
retirement obligations |
|
5.2 |
|
|
5.3 |
|
Deferred
tax liabilities |
|
76.2 |
|
|
188.6 |
|
Other
non-current liabilities |
|
26.0 |
|
|
53.8 |
|
Total
non-current liabilities |
|
862.1 |
|
|
966.9 |
|
Stockholders’
equity: |
|
|
|
|
Preferred
stock, $0.01 par value, 10,000,000 shares authorized, no shares
issued and outstanding |
|
— |
|
|
— |
|
Common
stock, $0.01 par value, 110,000,000 shares authorized, 67,150,352
shares and 66,946,721 shares issued at December 31, 2016 and
December 31, 2015, respectively |
|
0.7 |
|
|
0.7 |
|
Additional paid-in capital |
|
650.5 |
|
|
639.2 |
|
Accumulated other comprehensive loss |
|
(20.8 |
) |
|
(45.3 |
) |
Treasury
stock, 5,195,791 shares and 4,809,701 shares, at cost, as of
December 31, 2016 and December 31, 2015, respectively |
|
(160.8 |
) |
|
(154.8 |
) |
Retained
earnings |
|
522.3 |
|
|
713.5 |
|
Non-controlling interest in subsidiaries |
|
190.6 |
|
|
200.6 |
|
Total
stockholders’ equity |
|
1,182.5 |
|
|
1,353.9 |
|
Total
liabilities and stockholders’ equity |
|
$ |
2,985.1 |
|
|
$ |
3,324.9 |
|
Delek US Holdings, Inc. |
Consolidated Statements of Income
(Unaudited) |
|
|
|
Three Months Ended December
31, |
|
Year Ended December
31, |
|
|
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
|
(In millions, except share and per share
data) |
Net sales |
|
$ |
1,084.6 |
|
|
$ |
1,123.0 |
|
|
$ |
4,197.9 |
|
|
$ |
4,782.0 |
|
Operating costs and
expenses: |
|
|
|
|
|
|
|
|
Cost of
goods sold |
|
1,006.2 |
|
|
1,023.2 |
|
|
3,812.9 |
|
|
4,236.9 |
|
Operating
expenses |
|
61.5 |
|
|
69.0 |
|
|
249.3 |
|
|
270.3 |
|
Insurance
proceeds — business interruption |
|
— |
|
|
— |
|
|
(42.4 |
) |
|
— |
|
General
and administrative expenses |
|
28.6 |
|
|
18.7 |
|
|
106.1 |
|
|
100.6 |
|
Depreciation and amortization |
|
29.8 |
|
|
29.5 |
|
|
116.4 |
|
|
106.0 |
|
Other
operating expense (income), net |
|
2.6 |
|
|
(0.7 |
) |
|
4.8 |
|
|
(0.5 |
) |
Total
operating costs and expenses |
|
1,128.7 |
|
|
1,139.7 |
|
|
4,247.1 |
|
|
4,713.3 |
|
Operating
(loss) income |
|
(44.1 |
) |
|
(16.7 |
) |
|
(49.2 |
) |
|
68.7 |
|
Interest expense |
|
13.7 |
|
|
13.6 |
|
|
54.4 |
|
|
52.1 |
|
Interest income |
|
(0.6 |
) |
|
(0.2 |
) |
|
(1.5 |
) |
|
(1.1 |
) |
Loss (income) from
equity method investments |
|
9.7 |
|
|
21.9 |
|
|
43.4 |
|
|
(2.0 |
) |
Loss on impairment of
equity method investment |
|
— |
|
|
— |
|
|
245.3 |
|
|
— |
|
Other (income) expense,
net |
|
(0.2 |
) |
|
(0.6 |
) |
|
0.4 |
|
|
(1.6 |
) |
Total
non-operating expenses, net |
|
22.6 |
|
|
34.7 |
|
|
342.0 |
|
|
47.4 |
|
(Loss) income from
continuing operations before income tax (benefit) expense |
|
(66.7 |
) |
|
(51.4 |
) |
|
(391.2 |
) |
|
21.3 |
|
Income tax (benefit)
expense |
|
(34.7 |
) |
|
(24.9 |
) |
|
(171.5 |
) |
|
(15.8 |
) |
(Loss) income from
continuing operations |
|
(32.0 |
) |
|
(26.5 |
) |
|
(219.7 |
) |
|
37.1 |
|
Discontinued
operations |
|
|
|
|
|
|
|
|
Income
from discontinued operations |
|
136.2 |
|
|
0.1 |
|
|
144.2 |
|
|
5.7 |
|
Income
tax expense (benefit) |
|
55.4 |
|
|
(0.3 |
) |
|
57.9 |
|
|
(0.9 |
) |
Income from
discontinued operations, net of tax |
|
80.8 |
|
|
0.4 |
|
|
86.3 |
|
|
6.6 |
|
Net income (loss) |
|
48.8 |
|
|
(26.1 |
) |
|
(133.4 |
) |
|
43.7 |
|
Net income attributed
to non-controlling interest |
|
4.6 |
|
|
5.4 |
|
|
20.3 |
|
|
24.3 |
|
Net income (loss)
attributable to Delek |
|
$ |
44.2 |
|
|
$ |
(31.5 |
) |
|
$ |
(153.7 |
) |
|
$ |
19.4 |
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share: |
|
|
|
|
|
|
|
|
(Loss) income from
continuing operations |
|
$ |
(0.59 |
) |
|
$ |
(0.52 |
) |
|
$ |
(3.88 |
) |
|
$ |
0.21 |
|
Income from
discontinued operations |
|
$ |
1.31 |
|
|
$ |
0.01 |
|
|
$ |
1.39 |
|
|
$ |
0.11 |
|
Total basic earnings
(loss) per share |
|
$ |
0.72 |
|
|
$ |
(0.51 |
) |
|
$ |
(2.49 |
) |
|
$ |
0.32 |
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss)
per share: |
|
|
|
|
|
|
|
|
(Loss) income from
continuing operations |
|
$ |
(0.59 |
) |
|
$ |
(0.52 |
) |
|
$ |
(3.88 |
) |
|
$ |
0.21 |
|
Income from
discontinued operations |
|
$ |
1.31 |
|
|
$ |
0.01 |
|
|
$ |
1.39 |
|
|
$ |
0.11 |
|
Total diluted earnings
(loss) per share |
|
$ |
0.72 |
|
|
$ |
(0.51 |
) |
|
$ |
(2.49 |
) |
|
$ |
0.32 |
|
Weighted average common
shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
61,894,229 |
|
|
62,164,706 |
|
|
61,921,787 |
|
|
60,819,771 |
|
Diluted |
|
61,894,229 |
|
|
62,164,706 |
|
|
61,921,787 |
|
|
61,320,570 |
|
Dividends declared per
common share outstanding |
|
$ |
0.15 |
|
|
$ |
0.15 |
|
|
$ |
0.60 |
|
|
$ |
0.60 |
|
Delek US Holdings, Inc. |
|
Consolidated Statements of Cash Flows |
|
(In millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
|
|
|
|
2016 |
|
2015 |
|
Cash Flow Data |
|
(Unaudited) |
|
Operating
activities |
|
$ |
268.2 |
|
|
$ |
180.0 |
|
|
Investing
activities |
|
180.5 |
|
|
(460.4 |
) |
|
Financing
activities |
|
(61.7 |
) |
|
138.5 |
|
|
|
Net
increase (decrease) |
|
$ |
387.0 |
|
|
$ |
(141.9 |
) |
|
Delek US Holdings, Inc. |
Segment Data (Unaudited) |
(In millions) |
|
|
Three Months Ended December 31,
2016 |
|
|
Refining |
|
Logistics |
|
Corporate, Other and Eliminations |
|
Consolidated |
Net sales
(excluding intercompany fees and sales) |
|
$ |
953.5 |
|
|
$ |
86.9 |
|
|
$ |
(1.1 |
) |
|
$ |
1,039.3 |
|
Intercompany fees and sales (1) |
|
51.5 |
|
|
37.8 |
|
|
(44.0 |
) |
|
45.3 |
|
Operating
costs and expenses: |
|
|
|
|
|
|
|
|
Cost of
goods sold |
|
955.8 |
|
|
88.8 |
|
|
(38.4 |
) |
|
1,006.2 |
|
Operating
expenses |
|
52.8 |
|
|
8.8 |
|
|
(0.1 |
) |
|
61.5 |
|
Segment
contribution margin |
|
$ |
(3.6 |
) |
|
$ |
27.1 |
|
|
$ |
(6.6 |
) |
|
16.9 |
|
General
and administrative expenses |
|
|
|
|
|
|
|
28.6 |
|
Depreciation and amortization |
|
|
|
|
|
|
|
29.8 |
|
Other
operating expense |
|
|
|
|
|
|
|
2.6 |
|
Operating
(loss) |
|
|
|
|
|
|
|
$ |
(44.1 |
) |
Total assets |
|
$ |
1,947.9 |
|
|
$ |
415.5 |
|
|
$ |
621.7 |
|
|
$ |
2,985.1 |
|
Capital spending
(excluding business combinations) (3) |
|
$ |
13.5 |
|
|
$ |
6.7 |
|
|
$ |
1.9 |
|
|
$ |
22.1 |
|
|
|
Three Months Ended December 31,
2015 |
|
|
Refining |
|
Logistics |
|
Corporate, Other and Eliminations
(4) |
|
Consolidated |
Net sales
(excluding intercompany fees and sales) |
|
$ |
944.9 |
|
|
$ |
73.2 |
|
|
$ |
1.1 |
|
|
$ |
1,019.2 |
|
Intercompany fees and sales (1) |
|
123.5 |
|
|
35.8 |
|
|
(55.5 |
) |
|
103.8 |
|
Operating
costs and expenses: |
|
|
|
|
|
|
|
|
Cost of
goods sold |
|
999.8 |
|
|
71.0 |
|
|
(47.6 |
) |
|
1,023.2 |
|
Operating
expenses |
|
57.3 |
|
|
11.7 |
|
|
— |
|
|
69.0 |
|
Segment
contribution margin |
|
$ |
11.3 |
|
|
$ |
26.3 |
|
|
$ |
(6.8 |
) |
|
30.8 |
|
General
and administrative expenses |
|
|
|
|
|
|
|
18.7 |
|
Depreciation and amortization |
|
|
|
|
|
|
|
29.5 |
|
Other
operating (income) |
|
|
|
|
|
|
|
(0.7 |
) |
Operating
(loss) |
|
|
|
|
|
|
|
$ |
(16.7 |
) |
Total assets (2) |
|
$ |
1,895.7 |
|
|
$ |
375.3 |
|
|
$ |
1,053.9 |
|
|
$ |
3,324.9 |
|
Capital spending
(excluding business combinations) (3) |
|
$ |
17.7 |
|
|
$ |
10.0 |
|
|
$ |
12.6 |
|
|
$ |
40.3 |
|
Delek US Holdings, Inc. |
Segment Data (Unaudited) |
(In millions) |
|
|
Year Ended December 31, 2016 |
|
|
Refining |
|
Logistics |
|
Corporate, Other and Eliminations |
|
Consolidated |
Net sales
(excluding intercompany fees and sales) |
|
$ |
3,605.1 |
|
|
$ |
301.3 |
|
|
$ |
(0.6 |
) |
|
$ |
3,905.8 |
|
Intercompany fees and sales (1) |
|
318.1 |
|
|
146.8 |
|
|
(172.8 |
) |
|
292.1 |
|
Operating
costs and expenses: |
|
|
|
|
|
|
|
|
Cost of
goods sold |
|
3,658.8 |
|
|
302.2 |
|
|
(148.1 |
) |
|
3,812.9 |
|
Operating
expenses |
|
212.4 |
|
|
37.2 |
|
|
(0.3 |
) |
|
249.3 |
|
Insurance
proceeds - business interruption |
|
(42.4 |
) |
|
— |
|
|
— |
|
|
(42.4 |
) |
Segment
contribution margin |
|
$ |
94.4 |
|
|
$ |
108.7 |
|
|
$ |
(25.0 |
) |
|
178.1 |
|
General
and administrative expenses |
|
|
|
|
|
|
|
106.1 |
|
Depreciation and amortization |
|
|
|
|
|
|
|
116.4 |
|
Other
operating expense |
|
|
|
|
|
|
|
4.8 |
|
Operating
loss |
|
|
|
|
|
|
|
$ |
(49.2 |
) |
Capital spending
(excluding business combinations) (3) |
|
$ |
27.9 |
|
|
$ |
11.8 |
|
|
$ |
6.6 |
|
|
$ |
46.3 |
|
|
|
Year Ended December 31, 2015 |
|
|
Refining |
|
Logistics |
|
Corporate, Other and Eliminations
(4) |
|
Consolidated |
Net sales
(excluding intercompany fees and sales) |
|
$ |
3,820.8 |
|
|
$ |
447.0 |
|
|
$ |
2.7 |
|
|
$ |
4,270.5 |
|
Intercompany fees and sales (1) |
|
619.4 |
|
|
142.7 |
|
|
(250.6 |
) |
|
511.5 |
|
Operating
costs and expenses: |
|
|
|
|
|
|
|
|
Cost of
goods sold |
|
4,022.2 |
|
|
436.3 |
|
|
(221.6 |
) |
|
4,236.9 |
|
Operating
expenses |
|
225.4 |
|
|
44.9 |
|
|
— |
|
|
270.3 |
|
Segment
contribution margin |
|
$ |
192.6 |
|
|
$ |
108.5 |
|
|
$ |
(26.3 |
) |
|
274.8 |
|
General
and administrative expenses |
|
|
|
|
|
|
|
100.6 |
|
Depreciation and amortization |
|
|
|
|
|
|
|
106.0 |
|
Other
operating (income) |
|
|
|
|
|
|
|
(0.5 |
) |
Operating
income |
|
|
|
|
|
|
|
$ |
68.7 |
|
Capital spending
(excluding business combinations) (3) |
|
$ |
164.5 |
|
|
$ |
18.6 |
|
|
$ |
7.9 |
|
|
$ |
191.0 |
|
(1) Intercompany fees and sales for the refining segment include
revenues of $45.3 million and $292.1 million during the three
months and year ended December 31, 2016, respectively, and
$103.8 million and $511.5 million during the three months and year
ended December 31, 2015, respectively, from entities which are
reported in discontinued operations.(2) Assets held for sale, which
are reported in discontinued operations, of $478.8 million are
included in the corporate, other and eliminations segment as of
December 31, 2015, respectively.(3) Capital spending excludes
capital spending associated with the discontinued operations of
$2.2 million and $14.4 million during the three months and year
ended December 31, 2016, respectively, and $4.7 million and
$27.6 million during the three months and year ended
December 31, 2015, respectively.(4) The corporate, other and
eliminations segment operating results for the three months and
year ended December 31, 2015 have been restated to reflect the
reclassification of discontinued operations.
Refining
Segment |
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Tyler
Refinery |
|
(Unaudited) |
|
(Unaudited) |
Days in period |
|
92 |
|
|
92 |
|
|
366 |
|
|
365 |
|
Total sales volume
(average barrels per day)(1) |
|
72,104 |
|
|
70,867 |
|
|
72,816 |
|
|
61,640 |
|
Products manufactured
(average barrels per day): |
|
|
|
|
|
|
|
|
Gasoline |
|
40,094 |
|
|
38,981 |
|
|
38,670 |
|
|
32,637 |
|
Diesel/Jet |
|
28,495 |
|
|
27,131 |
|
|
28,001 |
|
|
24,307 |
|
Petrochemicals, LPG, NGLs |
|
1,941 |
|
|
1,865 |
|
|
2,554 |
|
|
2,402 |
|
Other |
|
1,509 |
|
|
1,575 |
|
|
1,548 |
|
|
1,358 |
|
Total
production |
|
72,039 |
|
|
69,552 |
|
|
70,773 |
|
|
60,704 |
|
Throughput (average
barrels per day): |
|
|
|
|
|
|
|
|
Crude
oil |
|
66,885 |
|
|
63,930 |
|
|
67,317 |
|
|
56,099 |
|
Other
feedstocks |
|
5,945 |
|
|
6,035 |
|
|
4,281 |
|
|
5,393 |
|
Total
throughput |
|
72,830 |
|
|
69,965 |
|
|
71,598 |
|
|
61,492 |
|
Per barrel of
sales: |
|
|
|
|
|
|
|
|
Tyler
refining margin |
|
$ |
6.33 |
|
|
$ |
5.39 |
|
|
$ |
6.76 |
|
|
$ |
8.79 |
|
Direct
operating expenses |
|
$ |
3.85 |
|
|
$ |
4.34 |
|
|
$ |
3.73 |
|
|
$ |
4.52 |
|
|
|
|
|
|
|
|
|
|
El Dorado
Refinery |
|
|
|
|
|
|
|
|
Days in period |
|
92 |
|
|
92 |
|
|
366 |
|
|
365 |
|
Total sales volume
(average barrels per day)(2) |
|
75,818 |
|
|
80,881 |
|
|
78,100 |
|
|
81,577 |
|
Products manufactured
(average barrels per day): |
|
|
|
|
|
|
|
|
Gasoline |
|
41,365 |
|
|
44,263 |
|
|
40,751 |
|
|
40,578 |
|
Diesel |
|
27,199 |
|
|
28,288 |
|
|
27,085 |
|
|
28,213 |
|
Petrochemicals, LPG, NGLs |
|
991 |
|
|
565 |
|
|
965 |
|
|
640 |
|
Asphalt |
|
6,570 |
|
|
4,524 |
|
|
5,203 |
|
|
6,516 |
|
Other |
|
977 |
|
|
1,197 |
|
|
1,023 |
|
|
1,859 |
|
Total
production |
|
77,102 |
|
|
78,837 |
|
|
75,027 |
|
|
77,806 |
|
Throughput (average
barrels per day): |
|
|
|
|
|
|
|
|
Crude
oil |
|
72,686 |
|
|
73,578 |
|
|
72,660 |
|
|
74,062 |
|
Other
feedstocks |
|
5,332 |
|
|
7,216 |
|
|
3,781 |
|
|
5,358 |
|
Total
throughput |
|
78,018 |
|
|
80,794 |
|
|
76,441 |
|
|
79,420 |
|
Per barrel of
sales: |
|
|
|
|
|
|
|
|
El Dorado
refining margin |
|
$ |
(0.23 |
) |
|
$ |
3.01 |
|
|
$ |
2.28 |
|
|
$ |
7.10 |
|
Direct
operating expenses |
|
$ |
3.67 |
|
|
$ |
3.73 |
|
|
$ |
3.73 |
|
|
$ |
3.97 |
|
|
|
|
|
|
|
|
|
|
Pricing
statistics (average for the period presented): |
|
|
|
|
|
|
|
|
WTI — Cushing crude oil
(per barrel) |
|
$ |
49.24 |
|
|
$ |
42.15 |
|
|
$ |
43.41 |
|
|
$ |
48.84 |
|
WTI — Midland crude oil
(per barrel) |
|
$ |
49.49 |
|
|
$ |
41.74 |
|
|
$ |
43.27 |
|
|
$ |
48.54 |
|
US Gulf Coast 5-3-2
crack spread (per barrel) |
|
$ |
9.26 |
|
|
$ |
8.78 |
|
|
$ |
9.12 |
|
|
$ |
14.68 |
|
US Gulf Coast Unleaded
Gasoline (per gallon) |
|
$ |
1.41 |
|
|
$ |
1.23 |
|
|
$ |
1.30 |
|
|
$ |
1.55 |
|
Ultra low sulfur diesel
(per gallon) |
|
$ |
1.52 |
|
|
$ |
1.29 |
|
|
$ |
1.32 |
|
|
$ |
1.58 |
|
Natural gas (per
MMBTU) |
|
$ |
3.02 |
|
|
$ |
2.11 |
|
|
$ |
2.49 |
|
|
$ |
2.61 |
|
(1) Sales volume includes 430 bpd and 622 bpd sold to the
logistics segment during the three months and year ended
December 31, 2016, respectively, and 3,139 bpd and 3,693 bpd
during the three months and year ended December 31, 2015,
respectively. Sales volume also includes sales of 65 bpd and
510 bpd of intermediate and finished products to the El Dorado
refinery during the three months and year ended December 31,
2016, respectively, and 0 bpd and 1,800 bpd during the three months
and year ended December 31, 2015, respectively. Sales
volume excludes 1,497 bpd and 1,008 bpd of wholesale activity
during the three months and year ended December 31, 2016,
respectively, and 2 bpd and 1,635 bpd of wholesale activity during
the three months and year ended December 31, 2015,
respectively.(2) Sales volume includes 46 bpd and 102 bpd of
produced finished product sold to the Tyler refinery during the
three months and year ended December 31, 2016, respectively,
and 358 bpd and 1,744 bpd during the three months and year ended
December 31, 2015, respectively. Sales volume excludes
17,066 bpd and 20,465 bpd of wholesale activity during the three
months and year ended December 31, 2016, respectively, and
34,454 bpd and 28,057 bpd during the three months and year ended
December 31, 2015, respectively.
Delek US Holdings, Inc. |
Reconciliation of Refining Margin per barrel
to Adjusted Refining Margin per barrel (3) |
$ in millions, except per share data |
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
|
(Unaudited) |
|
(Unaudited) |
Tyler (4) |
|
|
|
|
|
|
|
|
Reported refining
margin, $ per barrel |
|
$ |
6.33 |
|
|
$ |
5.39 |
|
|
$ |
6.76 |
|
|
$ |
8.79 |
|
Adjustments: |
|
|
|
|
|
|
|
|
Lower of cost or market
(benefit) charge |
|
(1.19 |
) |
|
0.76 |
|
|
(1.27 |
) |
|
(0.24 |
) |
Hedging loss
(gain) |
|
1.12 |
|
|
(0.16 |
) |
|
0.75 |
|
|
0.22 |
|
Other inventory (gain)
loss |
|
(1.11 |
) |
|
0.76 |
|
|
(0.09 |
) |
|
1.08 |
|
Renewable bio credit
allocated to refinery |
|
— |
|
|
0.67 |
|
|
— |
|
|
0.19 |
|
|
|
|
|
|
|
|
|
|
Adjusted refining
margin $/bbl |
|
$ |
5.15 |
|
|
$ |
7.42 |
|
|
$ |
6.15 |
|
|
$ |
10.04 |
|
|
|
|
|
|
|
|
|
|
El Dorado (5) |
|
|
|
|
|
|
|
|
Reported refining
margin, $ per barrel |
|
$ |
(0.23 |
) |
|
$ |
3.01 |
|
|
$ |
2.28 |
|
|
$ |
7.10 |
|
Adjustments: |
|
|
|
|
|
|
|
|
Lower of cost or market
charge |
|
0.01 |
|
|
0.10 |
|
|
— |
|
|
0.03 |
|
Hedging loss |
|
1.37 |
|
|
0.41 |
|
|
0.82 |
|
|
0.19 |
|
Other inventory
loss |
|
1.28 |
|
|
0.40 |
|
|
0.90 |
|
|
0.89 |
|
Renewable bio credit
allocated to refinery |
|
— |
|
|
0.67 |
|
|
— |
|
|
0.17 |
|
|
|
|
|
|
|
|
|
|
Adjusted refining
margin $/bbl |
|
$ |
2.43 |
|
|
$ |
4.59 |
|
|
$ |
4.00 |
|
|
$ |
8.38 |
|
(3) Adjusted refining margin per barrel is presented to provide
a measure to evaluate performance excluding inventory valuation
adjustments, hedging (realized and unrealized) gains and losses,
and other items at the individual refinery level. Delek US believes
that the presentation of adjusted measures provides useful
information to investors in assessing its results of operations at
each refinery. Because adjusted refining margin per barrel may be
defined differently by other companies in its industry, Delek US'
definition may not be comparable to similarly titled measures of
other companies.(4) Tyler adjusted refining margins exclude the
following items.
Lower of cost or market ("LCM") valuation -
There was approximately $7.9 million LCM valuation benefit and
$(5.0) million of LCM valuation charge in the fourth quarter 2016
and 2015, respectively. There was approximately $33.9 million
and $5.5 million of LCM valuation benefit in the year ended
December 31, 2016 and 2015, respectively. Hedging
affect - Total hedging loss of $(7.4) million and a $1.0
million hedging gain occurred in the fourth quarter 2016 and 2015,
respectively. Total hedging loss of $(20.0) million and $(5.0)
million occurred in the year ended December 31, 2016 and 2015,
respectively. Other inventory - A benefit of $7.4
million and a charge of $(5.0) million in the fourth quarter 2016
and 2015, respectively. A benefit of $2.5 million and a
charge of $(24.3) million in the year ended December 31, 2016
and 2015, respectively. These amounts consist of last-in-first-out
inventory price valuation effect in the respective
period.Bio-diesel tax credit allocation - In the
fourth quarter and year ended December 31, 2015, approximately $4.3
million related to the annual amount for $1 per gallon bio-diesel
tax credit that is included in the renewable portion of the
refining segment was allocated to Tyler. The bio-diesel
blenders federal tax credit was approved in December 2015 on a
retroactive basis for calendar 2015. In 2016 the credit was
recognized during each quarterly period of the year in the
renewables operation and was not included at the refinery
level.
(5) El Dorado adjusted refining margins exclude the following
items.
Lower of cost or market ("LCM") valuation -
There was a nominal amount and $(0.8) million of LCM valuation
charge in the fourth quarter 2016 and 2015, respectively. There was
a nominal amount and $(0.8) million of LCM valuation charge in the
year ended December 31, 2016 and 2015, respectively.
Hedging affect - The total hedging loss was $(9.6)
million and $(3.0) million in the fourth quarter 2016 and 2015,
respectively. Total hedging loss of $(23.5) million and $(5.7)
million occurred in the year ended December 31, 2016 and 2015,
respectively. Other inventory - Charges of $(8.9)
million and $(3.0) million in the fourth quarter 2016 and 2015,
respectively. Charges of $(25.7) million and $(26.5) million
in the year ended December 31, 2016 and 2015, respectively.
These amounts consist of first-in-first-out inventory price
valuation effect in the respective period.Bio-diesel tax
credit allocation - In the fourth quarter and year ended
December 31, 2015, approximately $5.0 million related to the annual
amount for $1 per gallon bio-diesel tax credit that is included in
the renewable portion of the refining segment was allocated to El
Dorado. The bio-diesel blenders federal tax credit that was
approved in December 2015 on a retroactive basis for calendar 2015.
In 2016 the credit was recognized during each quarterly period of
the year in the renewables operation and was not included at the
refinery level.
Logistics
Segment |
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
|
(Unaudited) |
|
(Unaudited) |
Pipelines &
Transportation: (average bpd) |
|
|
|
|
|
|
|
|
Lion
Pipeline System: |
|
|
|
|
|
|
|
|
Crude
pipelines (non-gathered) |
|
58,353 |
|
|
54,342 |
|
|
56,555 |
|
|
54,960 |
|
Refined
products pipelines to Enterprise Systems |
|
52,895 |
|
|
60,549 |
|
|
52,071 |
|
|
57,366 |
|
SALA
Gathering System |
|
16,518 |
|
|
19,741 |
|
|
17,756 |
|
|
20,673 |
|
East
Texas Crude Logistics System |
|
11,624 |
|
|
8,613 |
|
|
12,735 |
|
|
18,828 |
|
El Dorado
Rail Offloading Rack |
|
— |
|
|
— |
|
|
— |
|
|
981 |
|
|
|
|
|
|
|
|
|
|
Wholesale
Marketing & Terminalling: |
|
|
|
|
|
|
|
|
East
Texas - Tyler Refinery sales volumes (average bpd)(6) |
|
68,114 |
|
|
66,950 |
|
|
68,131 |
|
|
59,174 |
|
West
Texas marketing throughputs (average bpd) |
|
13,906 |
|
|
12,488 |
|
|
13,257 |
|
|
16,357 |
|
West
Texas marketing margin per barrel |
|
$ |
1.96 |
|
|
$ |
1.05 |
|
|
$ |
1.43 |
|
|
$ |
1.35 |
|
Terminalling throughputs (average bpd)(7) |
|
119,934 |
|
|
114,136 |
|
|
122,350 |
|
|
106,514 |
|
(6) Excludes jet fuel and petroleum coke
(7) Consists of terminalling throughputs at our Tyler, Big Sandy
and Mount Pleasant, Texas, North Little Rock and El Dorado,
Arkansas, and Memphis and Nashville, Tennessee terminals.
Delek US Holdings, Inc. |
Reconciliation of Amounts Reported Under U.S.
GAAP |
$ in millions |
|
Three Months Ended December 31, |
|
Year Ended December 31, |
Reconciliation of Net (Loss) Income to Adjusted Net (Loss)
Income |
2016 |
|
2015 |
|
2016 |
|
2015 |
|
(Unaudited) |
|
(Unaudited) |
Reported net
income (loss) attributable to Delek |
$ |
44.2 |
|
|
$ |
(31.5 |
) |
|
$ |
(153.7 |
) |
|
$ |
19.4 |
|
|
|
|
|
|
|
|
|
Adjustments(8) |
|
|
|
|
|
|
|
Lower of cost or market
inventory valuation (benefit) charge |
(7.8 |
) |
|
6.1 |
|
|
(33.8 |
) |
|
(4.3 |
) |
Tax effect of lower of
cost or market |
2.8 |
|
|
(2.2 |
) |
|
11.9 |
|
|
1.5 |
|
Net after tax lower of
cost or market valuation (benefit) charge |
(5.1 |
) |
|
3.9 |
|
|
(21.9 |
) |
|
(2.8 |
) |
|
|
|
|
|
|
|
|
Alon goodwill
impairment |
— |
|
|
18.7 |
|
|
— |
|
|
18.7 |
|
Tax effect of Alon
goodwill impairment |
— |
|
|
(6.5 |
) |
|
— |
|
|
(6.5 |
) |
Net after tax Alon
goodwill impairment |
— |
|
|
12.2 |
|
|
— |
|
|
12.2 |
|
|
|
|
|
|
|
|
|
Asset write offs |
2.7 |
|
|
2.2 |
|
|
4.9 |
|
|
2.2 |
|
Tax effect of asset
write offs |
(0.9 |
) |
|
(0.8 |
) |
|
(1.8 |
) |
|
(0.8 |
) |
Net after tax asset
write offs |
1.7 |
|
|
1.4 |
|
|
3.1 |
|
|
1.4 |
|
|
|
|
|
|
|
|
|
Business interruption
proceeds |
— |
|
|
— |
|
|
(42.4 |
) |
|
— |
|
Tax effect of business
interruption proceeds |
— |
|
|
— |
|
|
14.9 |
|
|
— |
|
Net after tax business
interruption proceeds effect |
— |
|
|
— |
|
|
(27.5 |
) |
|
— |
|
|
|
|
|
|
|
|
|
Unrealized hedging
loss |
12.5 |
|
|
15.0 |
|
|
34.2 |
|
|
46.6 |
|
Tax effect of
unrealized hedging |
(4.4 |
) |
|
(5.2 |
) |
|
(12.0 |
) |
|
(16.4 |
) |
Net after tax
unrealized hedging loss |
8.1 |
|
|
9.7 |
|
|
22.2 |
|
|
30.2 |
|
|
|
|
|
|
|
|
|
Loss on impairment of
equity method investment in Alon |
— |
|
|
— |
|
|
245.3 |
|
|
— |
|
Tax effect of loss on
equity method investment in Alon |
— |
|
|
— |
|
|
(90.3 |
) |
|
— |
|
Net after tax loss on
impairment of equity method investment in Alon |
— |
|
|
— |
|
|
155.0 |
|
|
— |
|
|
|
|
|
|
|
|
|
Gain on sale of Retail
Entities |
(134.1 |
) |
|
— |
|
|
(134.1 |
) |
|
— |
|
Tax effect of gain on
sale of Retail Entities |
53.5 |
|
|
— |
|
|
53.5 |
|
|
— |
|
Net after tax gain on
sale of Retail Entities |
(80.6 |
) |
|
— |
|
|
(80.6 |
) |
|
— |
|
|
|
|
|
|
|
|
|
Transaction related
expenses |
6.0 |
|
|
— |
|
|
8.9 |
|
|
$ |
— |
|
Tax effect of
transaction related expenses |
(2.1 |
) |
|
— |
|
|
(3.1 |
) |
|
$ |
— |
|
Net after tax
transaction related expenses |
3.9 |
|
|
— |
|
|
5.8 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
Total after tax
adjustments |
(71.9 |
) |
|
27.2 |
|
|
56.2 |
|
|
$ |
41.0 |
|
|
|
|
|
|
|
|
|
Adjusted
net (loss) income |
$ |
(27.7 |
) |
|
$ |
(4.3 |
) |
|
$ |
(97.5 |
) |
|
$ |
60.4 |
|
|
|
|
|
|
|
|
|
(8) The tax calculation is based on the appropriate marginal
income tax rate related to each adjustment and for each respective
time period, which is applied to the adjusted items in the
calculation of adjusted net income (loss) in all periods.
Delek US Holdings, Inc. |
Reconciliation of Amounts Reported Under U.S.
GAAP |
per share data |
|
Three Months Ended December 31, |
|
Year Ended December 31, |
Reconciliation of Net (Loss) Income to Adjusted Net (Loss)
Income |
2016 |
|
2015 |
|
2016 |
|
2015 |
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
Reported net
income (loss) per share attributable to Delek |
$ |
0.72 |
|
|
$ |
(0.51 |
) |
|
$ |
(2.49 |
) |
|
$ |
0.32 |
|
|
|
|
|
|
|
|
|
Adjustments,
after tax (per share)(8) |
|
|
|
|
|
|
|
Lower of cost or market
inventory valuation (benefit) charge |
(0.08 |
) |
|
0.06 |
|
|
(0.35 |
) |
|
(0.05 |
) |
Alon goodwill
impairment |
— |
|
|
0.20 |
|
|
— |
|
|
0.20 |
|
Asset write offs |
0.03 |
|
|
0.02 |
|
|
0.05 |
|
|
0.02 |
|
Business interruption
proceeds |
— |
|
|
— |
|
|
(0.44 |
) |
|
— |
|
Unrealized hedging
loss |
0.13 |
|
|
0.16 |
|
|
0.36 |
|
|
0.49 |
|
Loss on impairment of
equity method investment |
— |
|
|
— |
|
|
2.50 |
|
|
— |
|
Gain on sale of Retail
Entities |
(1.30 |
) |
|
— |
|
|
(1.30 |
) |
|
— |
|
Transaction related
expenses |
0.06 |
|
|
— |
|
|
0.09 |
|
|
— |
|
|
|
|
|
|
|
|
|
Total adjustments |
(1.16 |
) |
|
0.44 |
|
|
0.91 |
|
|
0.66 |
|
|
|
|
|
|
|
|
|
Adjusted
net (loss) income per share |
$ |
(0.44 |
) |
|
$ |
(0.07 |
) |
|
$ |
(1.58 |
) |
|
$ |
0.98 |
|
U.S. Investor / Media Relations Contact:
Keith Johnson
Delek US Holdings, Inc.
Vice President of Investor Relations
615-435-1366
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