Delaware
|
001-38142
|
35-2581557
|
|
(State or other jurisdiction of incorporation)
|
(Commission File Number)
|
(IRS Employer Identification No.)
|
|
|
|
|
|
|
|
|
|
7102 Commerce Way
|
Brentwood
|
Tennessee
|
37027
|
(Address of Principal Executive)
|
|
|
(Zip Code)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock, $0.01 par value
|
DK
|
New York Stock Exchange
|
|
||
|
||
|
~
|
|
Certain confidential information contained in this exhibit has been omitted because it (i) is not material and (ii) would be competitively harmful if publicly disclosed.
|
Dated: August 5, 2019
|
DELEK US HOLDINGS, INC
|
|
|
|
/s/ Assaf Ginzburg
|
|
Name: Assaf Ginzburg
|
|
Title: Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)
|
1.1
|
Formation of the Company; Term
2
|
1.2
|
Name of the Company
2
|
1.3
|
Principal Place of Business
2
|
1.4
|
Registered Office and Registered Agent
2
|
1.5
|
Foreign Qualification
3
|
1.6
|
Purpose
3
|
1.7
|
No State Law Partnership
3
|
1.8
|
Title to Company Assets
3
|
1.9
|
Membership Interests; Admission of New Members
3
|
1.10
|
Resignation and Withdrawal
4
|
2.1
|
Representations and Warranties of the Members
4
|
2.2
|
Unregistered Securities
6
|
2.3
|
Confidentiality
6
|
2.4
|
Publicity
8
|
3.1
|
Development and Construction of the Facility
9
|
3.2
|
Expansion Projects and Expansions
10
|
3.3
|
Pre-Approved Connections
10
|
4.1
|
Management by Members Through the Board
10
|
4.2
|
Compensation
11
|
4.3
|
Board Composition; Initial Managers; Initial Alternate Managers
11
|
4.4
|
Removal; Resignation and Replacement of Managers
12
|
4.5
|
Meetings of the Board
12
|
4.6
|
Supermajority Consent Decisions
14
|
4.7
|
SuperSupermajority Consent Decisions
16
|
4.8
|
Super3majority Consent Decisions
16
|
4.9
|
Unanimous Consent Decisions
16
|
4.10
|
Affiliate Contracts; Matters Involving Affiliates
17
|
4.11
|
Certain Disagreements
19
|
4.12
|
Default; Loss of Voting Rights; Call Option
19
|
4.13
|
Subsidiary Boards
20
|
4.14
|
Officers
21
|
4.15
|
[_______] 21
|
4.16
|
Executive Committee Representative
21
|
6.1
|
Fiscal Year
22
|
6.2
|
Books and Records
22
|
6.3
|
Member Audit and Inspection Rights
22
|
6.4
|
Reports
24
|
6.5
|
Accounts
25
|
6.6
|
Accountants
25
|
7.1
|
Initial Capital Contributions
26
|
7.2
|
Required Capital Contributions
26
|
7.3
|
Additional Capital Contributions
27
|
7.4
|
Capital Call Notice
28
|
7.5
|
Withdrawal
28
|
7.6
|
Payment Default
28
|
7.7
|
[_______] 29
|
9.1
|
Capital Accounts
29
|
9.2
|
Allocations for Capital Account Purposes
30
|
9.3
|
Allocations for Tax Purposes
33
|
9.4
|
Distributions
33
|
10.1
|
Tax Status
34
|
10.2
|
Tax Elections
34
|
10.3
|
Partnership Representative
35
|
10.4
|
Tax Returns; Tax Statements and Information
36
|
10.5
|
Partnership Tax Audit Matters
36
|
10.6
|
Withholding and Other Tax Payments by the Company
37
|
10.7
|
Tax Sharing
38
|
10.8
|
Tax Indemnity
39
|
11.1
|
Dissolution
39
|
11.2
|
Winding-Up and Termination
40
|
11.3
|
No Deficit Restoration Obligation
41
|
12.1
|
Governing Law; Jurisdiction and Forum
41
|
12.2
|
Notices
41
|
12.3
|
Inuring Clause
44
|
12.4
|
Assignment
44
|
12.5
|
Waiver of Partition of Company Property
44
|
12.6
|
Amendments
44
|
12.7
|
Counterparts
44
|
12.8
|
Entire Agreement
44
|
12.9
|
Waivers and Consents
45
|
12.10
|
Severability
45
|
12.11
|
No Third Party Beneficiaries
45
|
12.12
|
Interpretation; Headings
45
|
12.13
|
Further Assurances
46
|
12.14
|
Laws and Regulations
46
|
12.15
|
Expenses
46
|
13.1
|
Definitions
46
|
Exhibit A
|
Definitions
|
Exhibit B
|
Map of Facility
|
Exhibit C-1
|
WTW Project Execution Plan
|
Exhibit C-2
|
BTW Project Execution Plan
|
Exhibit D
|
Ownership Information
|
Exhibit E-1
|
[_______]
|
Exhibit E-2
|
[_______]
|
Exhibit E-3
|
[_______]
|
Exhibit E-4
|
[_______]
|
Exhibit E-5
|
Form of Transportation Agreement
|
Exhibit F-1
|
Form of Delivery Point Connection Agreement
|
Exhibit F-2
|
Form of Receipt Point Connection Agreement
|
Exhibit G-1
|
[_______]
|
Exhibit G-2
|
[_______]
|
Exhibit H-1
|
Form of LLC Guaranty Agreements
|
Exhibit H-2
|
Form of JOA Guaranty Agreements
|
Exhibit I
|
Form of Monthly Report
|
Schedule 3.1(b)
|
Material Construction Contracts
|
Schedule 3.2
|
Webster to Texas City Expansion Project and Extraordinary Expansion Project
|
Schedule 3.3
|
Pre-Approved Connections
|
Schedule 4.3
|
Initial Managers, Initial Alternate Managers and Initial Construction Management Representatives
|
Schedule 4.14
|
Approved Officer Positions
|
Schedule 6.5
|
Company Bank Account
|
•
|
Reported second quarter net income of
$77.3 million
and adjusted EBITDA of
$204.9 million
|
•
|
Acquiring 15% Interest in Wink to Webster Pipeline LLC
|
•
|
Acquired 33% Interest in Red River pipeline joint venture in May 2019
|
•
|
Increasing regular quarterly dividend by $0.01 or 3.6 percent to $0.29 per share
|
•
|
Expect to repurchase $40 million of stock during the third quarter 2019
|
1
|
|
|
2
|
|
|
3
|
|
|
•
|
Adjusted net income (loss) - calculated as net income attributable to Delek US adjusted for certain identified infrequently occurring items, non-cash items and items that are not attributable to our on-going operations (collectively, "Adjusting Items") recorded during the period;
|
•
|
Adjusted unrealized hedging (gains) losses - calculated as GAAP unrealized (gains) losses on commodity derivatives that are economic hedges but not designated as hedging instruments adjusted to exclude unrealized (gains) losses where the instrument has matured but where it has not cash settled as of the balance sheet date. This adjustment more appropriately aligns matured commodity derivatives gains and losses with the recognition of the related cost of materials and other. There are no premiums paid or received at the inception of the derivative contracts, and upon settlement there is no cost recovery associated with these contracts;
|
•
|
Adjusted net income (loss) per share - calculated as adjusted net income (loss) divided by weighted average shares outstanding, assuming dilution, as adjusted for any anti-dilutive instruments that may not be permitted for consideration in GAAP earnings per share calculations but that nonetheless favorably impact dilution;
|
•
|
Earnings before interest, taxes, depreciation and amortization ("EBITDA") - calculated as net income attributable to Delek adjusted to add back interest expense, income tax expense, depreciation and amortization;
|
•
|
Adjusted EBITDA - calculated as EBITDA adjusted for the identified adjusting items in adjusted net income (loss) that do not relate to interest expense, income tax expense, depreciation or amortization, and adjusted to include income (loss) attributable to non-controlling interests;
|
•
|
Refining margin - calculated as the difference between total refining revenues and total cost of materials and other; and
|
•
|
Refining margin per sales barrel - calculated as refining margin divided by our average refining sales in barrels per day (excluding purchased barrels) multiplied by 1,000 and multiplied by the number of days in the period.
|
4
|
|
|
Delek US Holdings, Inc.
|
||||||||
Condensed Consolidated Balance Sheets (Unaudited)
|
||||||||
(In millions, except share and per share data)
|
||||||||
|
|
June 30,
2019 |
|
December 31,
2018 |
||||
ASSETS
|
|
|
|
|
||||
Current assets:
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
951.4
|
|
|
$
|
1,079.3
|
|
Accounts receivable, net
|
|
847.4
|
|
|
514.4
|
|
||
Accounts receivable from related parties
|
|
4.2
|
|
|
—
|
|
||
Inventories, net of inventory valuation reserves
|
|
891.6
|
|
|
690.9
|
|
||
Other current assets
|
|
92.7
|
|
|
135.7
|
|
||
Total current assets
|
|
2,787.3
|
|
|
2,420.3
|
|
||
Property, plant and equipment:
|
|
|
|
|
|
|
||
Property, plant and equipment
|
|
3,201.1
|
|
|
2,999.6
|
|
||
Less: accumulated depreciation
|
|
(896.1
|
)
|
|
(804.7
|
)
|
||
Property, plant and equipment, net
|
|
2,305.0
|
|
|
2,194.9
|
|
||
Operating lease right-of-use assets
|
|
199.2
|
|
|
—
|
|
||
Goodwill
|
|
856.6
|
|
|
857.8
|
|
||
Other intangibles, net
|
|
93.5
|
|
|
104.4
|
|
||
Equity method investments
|
|
273.6
|
|
|
130.3
|
|
||
Other non-current assets
|
|
58.0
|
|
|
52.9
|
|
||
Total assets
|
|
$
|
6,573.2
|
|
|
$
|
5,760.6
|
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
||
Current liabilities:
|
|
|
|
|
|
|
||
Accounts payable
|
|
$
|
1,336.6
|
|
|
$
|
1,009.7
|
|
Accounts payable to related parties
|
|
3.5
|
|
|
1.5
|
|
||
Current portion of long-term debt
|
|
64.4
|
|
|
32.0
|
|
||
Obligation under Supply and Offtake Agreements
|
|
257.7
|
|
|
312.6
|
|
||
Current portion of operating lease liabilities
|
|
45.7
|
|
|
—
|
|
||
Accrued expenses and other current liabilities
|
|
350.8
|
|
|
307.7
|
|
||
Total current liabilities
|
|
2,058.7
|
|
|
1,663.5
|
|
||
Non-current liabilities:
|
|
|
|
|
|
|
||
Long-term debt, net of current portion
|
|
1,852.3
|
|
|
1,751.3
|
|
||
Obligation under Supply and Offtake Agreements
|
|
122.8
|
|
|
49.6
|
|
||
Environmental liabilities, net of current portion
|
|
138.6
|
|
|
139.5
|
|
||
Asset retirement obligations
|
|
72.6
|
|
|
75.5
|
|
||
Deferred tax liabilities
|
|
229.2
|
|
|
210.2
|
|
||
Operating lease liabilities, net of current portion
|
|
155.6
|
|
|
—
|
|
||
Other non-current liabilities
|
|
57.2
|
|
|
62.9
|
|
||
Total non-current liabilities
|
|
2,628.3
|
|
|
2,289.0
|
|
||
Stockholders’ equity:
|
|
|
|
|
|
|
||
Common stock, $0.01 par value, 110,000,000 shares authorized, 90,861,698 shares and 90,478,075 shares issued at June 30, 2019 and December 31, 2018, respectively
|
|
0.9
|
|
|
0.9
|
|
||
Additional paid-in capital
|
|
1,140.3
|
|
|
1,135.4
|
|
||
Accumulated other comprehensive income
|
|
26.3
|
|
|
28.6
|
|
||
Treasury stock, 15,416,502 shares and 12,477,780 shares, at cost, as of June 30, 2019 and December 31, 2018, respectively
|
|
(618.9
|
)
|
|
(514.1
|
)
|
||
Retained earnings
|
|
1,165.9
|
|
|
981.8
|
|
||
Non-controlling interests in subsidiaries
|
|
171.7
|
|
|
175.5
|
|
||
Total stockholders’ equity
|
|
1,886.2
|
|
|
1,808.1
|
|
||
Total liabilities and stockholders’ equity
|
|
$
|
6,573.2
|
|
|
$
|
5,760.6
|
|
5
|
|
|
Delek US Holdings, Inc.
|
||||||||||||||||
Condensed Consolidated Statements of Income (Unaudited)
(1)
|
||||||||||||||||
(In millions, except share and per share data)
|
||||||||||||||||
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
(1) (2)
|
|
2019
|
|
2018
(1),(2),(3)
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Net revenues
|
|
$
|
2,480.3
|
|
|
$
|
2,636.9
|
|
|
$
|
4,680.2
|
|
|
$
|
4,990.1
|
|
Cost of sales:
|
|
|
|
|
|
|
|
|
||||||||
Cost of materials and other
|
|
2,067.7
|
|
|
2,250.2
|
|
|
3,767.1
|
|
|
4,293.0
|
|
||||
Operating expenses (excluding depreciation and amortization presented below)
|
|
135.8
|
|
|
131.4
|
|
|
276.7
|
|
|
264.3
|
|
||||
Depreciation and amortization
|
|
42.6
|
|
|
40.4
|
|
|
81.9
|
|
|
78.2
|
|
||||
Total cost of sales
|
|
2,246.1
|
|
|
2,422.0
|
|
|
4,125.7
|
|
|
4,635.5
|
|
||||
Operating expenses related to retail and wholesale business (excluding depreciation and amortization presented below)
|
|
26.5
|
|
|
26.1
|
|
|
52.3
|
|
|
51.3
|
|
||||
General and administrative expenses
|
|
69.5
|
|
|
52.9
|
|
|
131.7
|
|
|
118.1
|
|
||||
Depreciation and amortization
|
|
7.5
|
|
|
8.8
|
|
|
15.0
|
|
|
19.0
|
|
||||
Other operating income, net
|
|
(3.6
|
)
|
|
(8.0
|
)
|
|
(1.2
|
)
|
|
(7.7
|
)
|
||||
Total operating costs and expenses
|
|
2,346.0
|
|
|
2,501.8
|
|
|
4,323.5
|
|
|
4,816.2
|
|
||||
Operating income
|
|
134.3
|
|
|
135.1
|
|
|
356.7
|
|
|
173.9
|
|
||||
Interest expense
|
|
32.8
|
|
|
31.5
|
|
|
61.5
|
|
|
64.0
|
|
||||
Interest income
|
|
(3.3
|
)
|
|
(0.9
|
)
|
|
(5.8
|
)
|
|
(1.6
|
)
|
||||
Income from equity method investments
|
|
(9.3
|
)
|
|
(2.9
|
)
|
|
(11.9
|
)
|
|
(2.9
|
)
|
||||
Gain on sale of business
|
|
—
|
|
|
(13.2
|
)
|
|
—
|
|
|
(13.2
|
)
|
||||
Impairment loss on assets held for sale
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27.5
|
|
||||
Loss on extinguishment of debt
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9.0
|
|
||||
Other expense (income), net
|
|
4.9
|
|
|
0.3
|
|
|
3.5
|
|
|
(0.4
|
)
|
||||
Total non-operating expenses, net
|
|
25.1
|
|
|
14.8
|
|
|
47.3
|
|
|
82.4
|
|
||||
Income from continuing operations before income tax expense
|
|
109.2
|
|
|
120.3
|
|
|
309.4
|
|
|
91.5
|
|
||||
Income tax expense
|
|
24.6
|
|
|
32.8
|
|
|
70.4
|
|
|
21.3
|
|
||||
Income from continuing operations, net of tax
|
|
84.6
|
|
|
87.5
|
|
|
239.0
|
|
|
70.2
|
|
||||
Discontinued operations:
|
|
|
|
|
|
|
|
|
||||||||
Loss from discontinued operations, including loss on sale of discontinued operations
|
|
(1.0
|
)
|
|
(1.0
|
)
|
|
(1.0
|
)
|
|
(11.5
|
)
|
||||
Income tax benefit
|
|
(0.2
|
)
|
|
(0.2
|
)
|
|
(0.2
|
)
|
|
(2.5
|
)
|
||||
Loss from discontinued operations, net of tax
|
|
(0.8
|
)
|
|
(0.8
|
)
|
|
(0.8
|
)
|
|
(9.0
|
)
|
||||
Net income
|
|
83.8
|
|
|
86.7
|
|
|
238.2
|
|
|
61.2
|
|
||||
Net income attributed to non-controlling interests
|
|
6.5
|
|
|
7.6
|
|
|
11.6
|
|
|
22.5
|
|
||||
Net income attributable to Delek
|
|
$
|
77.3
|
|
|
$
|
79.1
|
|
|
$
|
226.6
|
|
|
$
|
38.7
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic income (loss) per share:
|
|
|
|
|
|
|
|
|
||||||||
Income from continuing operations
|
|
$
|
1.02
|
|
|
$
|
0.95
|
|
|
$
|
2.95
|
|
|
$
|
0.67
|
|
Loss from discontinued operations
|
|
(0.01
|
)
|
|
(0.01
|
)
|
|
$
|
(0.01
|
)
|
|
$
|
(0.21
|
)
|
||
Total basic income per share
|
|
$
|
1.01
|
|
|
$
|
0.94
|
|
|
$
|
2.94
|
|
|
$
|
0.46
|
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted income (loss) per share:
|
|
|
|
|
|
|
|
|
||||||||
Income from continuing operations
|
|
$
|
1.01
|
|
|
$
|
0.90
|
|
|
$
|
2.92
|
|
|
$
|
0.65
|
|
Loss from discontinued operations
|
|
(0.01
|
)
|
|
(0.01
|
)
|
|
$
|
(0.01
|
)
|
|
$
|
(0.20
|
)
|
||
Total diluted income per share
|
|
$
|
1.00
|
|
|
$
|
0.89
|
|
|
$
|
2.91
|
|
|
$
|
0.45
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
76,598,846
|
|
|
84,041,358
|
|
|
77,192,763
|
|
|
83,151,823
|
|
||||
Diluted
|
|
77,280,692
|
|
|
90,244,357
|
|
|
77,883,285
|
|
|
85,773,587
|
|
||||
Dividends declared per common share outstanding
|
|
$
|
0.28
|
|
|
$
|
0.25
|
|
|
$
|
0.55
|
|
|
$
|
0.45
|
|
6
|
|
|
(3)
|
Income tax benefit for the six months ended June 30, 2018 reflects a correction made in our 2018 Annual Report on Form 10-K (filed on March 1, 2019) to record additional deferred tax expense totaling
$5.5 million
related to the recognition of a valuation allowance on deferred tax assets recognized in connection with the Big Spring Logistic Assets Acquisition (see
Note 5
) not previously reported in our June 30, 2018 Quarterly Report on Form 10-Q filed on August 09, 2018. Such amount is not considered material to the financial statements or the trend of earnings for that period. See Note 23 to our annual audited consolidated financial statements included in Part II, Item 8 of our 2018 Annual Report on Form 10-K filed on March 1, 2019 for further discussion.
|
7
|
|
|
Delek US Holdings, Inc.
|
|||||||||||||||
Condensed Cash Flow Data (Unaudited)
|
|||||||||||||||
(In millions)
|
|||||||||||||||
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Cash flows from operating activities:
|
|
|
|
|
|
||||||||||
Cash provided by (used in) operating activities - continuing operations
|
$
|
102.0
|
|
|
$
|
54.3
|
|
|
$
|
235.4
|
|
|
$
|
(120.8
|
)
|
Cash used in operating activities - discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
(15.6
|
)
|
||||
Net cash provided by (used in) operating activities
|
102.0
|
|
|
54.3
|
|
|
235.4
|
|
|
(136.4
|
)
|
||||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
||||||||
Cash (used in) provided by investing activities - continuing operations
|
(202.4
|
)
|
|
40.4
|
|
|
(329.4
|
)
|
|
8.3
|
|
||||
Cash provided by investing activities - discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
5.5
|
|
||||
Net cash (used in) provided by investing activities
|
(202.4
|
)
|
|
40.4
|
|
|
(329.4
|
)
|
|
13.8
|
|
||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
||||||||
Cash (used in) provided by financing activities - continuing operations
|
62.1
|
|
|
20.1
|
|
|
(33.9
|
)
|
|
313.5
|
|
||||
Cash provided by (used in) financing activities - discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net cash (used in) provided by financing activities
|
62.1
|
|
|
20.1
|
|
|
(33.9
|
)
|
|
313.5
|
|
||||
Net (decrease) increase in cash and cash equivalents
|
(38.3
|
)
|
|
114.8
|
|
|
(127.9
|
)
|
|
190.9
|
|
||||
Cash and cash equivalents at the beginning of the period
|
989.7
|
|
|
1,018.0
|
|
|
1,079.3
|
|
|
941.9
|
|
||||
Cash and cash equivalents at the end of the period
|
951.4
|
|
|
1,132.8
|
|
|
951.4
|
|
|
1,132.8
|
|
||||
Less cash and cash equivalents of discontinued operations at the end of the period
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Cash and cash equivalents of continuing operations at the end of the period
|
$
|
951.4
|
|
|
$
|
1,132.8
|
|
|
$
|
951.4
|
|
|
$
|
1,132.8
|
|
8
|
|
|
Delek US Holdings, Inc.
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Segment Data (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(In millions)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended June 30, 2019
|
||||||||||||||||||
|
|
Refining
|
|
Logistics
|
|
Retail
|
|
Corporate,
Other and Eliminations |
|
Consolidated
|
||||||||||
Net revenues (excluding intercompany fees and sales)
|
|
$
|
2,152.5
|
|
|
$
|
93.1
|
|
|
$
|
224.5
|
|
|
$
|
10.2
|
|
|
$
|
2,480.3
|
|
Intercompany fees and sales
|
|
215.3
|
|
|
62.2
|
|
|
—
|
|
|
(277.5
|
)
|
|
—
|
|
|||||
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of materials and other
|
|
2,074.5
|
|
|
93.8
|
|
|
182.1
|
|
|
(282.7
|
)
|
|
2,067.7
|
|
|||||
Operating expenses (excluding depreciation and amortization presented below)
|
|
115.0
|
|
|
17.3
|
|
|
24.8
|
|
|
5.2
|
|
|
162.3
|
|
|||||
Segment contribution margin
|
|
$
|
178.3
|
|
|
$
|
44.2
|
|
|
$
|
17.6
|
|
|
$
|
10.2
|
|
|
$
|
250.3
|
|
Depreciation and amortization
|
|
33.2
|
|
|
6.7
|
|
|
4.2
|
|
|
6.0
|
|
|
50.1
|
|
|||||
General and administrative expenses
|
|
|
|
|
|
|
|
|
|
69.5
|
|
|||||||||
Other operating income, net
|
|
|
|
|
|
|
|
|
|
(3.6
|
)
|
|||||||||
Operating income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
134.3
|
|
||||
Total assets
|
|
$
|
6,749.6
|
|
|
$
|
769.3
|
|
|
$
|
351.2
|
|
|
$
|
(1,296.9
|
)
|
|
$
|
6,573.2
|
|
Capital spending (excluding business combinations)
|
|
$
|
48.9
|
|
|
$
|
1.3
|
|
|
$
|
5.4
|
|
|
$
|
30.4
|
|
|
$
|
86.0
|
|
|
|
Three Months Ended June 30, 2018
|
||||||||||||||||||
|
|
Refining
(2)
|
|
Logistics
|
|
Retail
|
|
Corporate,
Other and Eliminations |
|
Consolidated
(2)
|
||||||||||
Net revenues (excluding intercompany fees and sales)
|
|
$
|
2,317.1
|
|
|
$
|
113.3
|
|
|
$
|
244.8
|
|
|
$
|
(38.3
|
)
|
|
$
|
2,636.9
|
|
Intercompany fees and sales
|
|
226.1
|
|
|
53.0
|
|
|
—
|
|
|
(279.1
|
)
|
|
—
|
|
|||||
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of materials and other
|
|
2,253.0
|
|
|
106.0
|
|
|
200.9
|
|
|
(309.7
|
)
|
|
2,250.2
|
|
|||||
Operating expenses (excluding depreciation and amortization presented below)
|
|
113.2
|
|
|
14.9
|
|
|
25.3
|
|
|
4.1
|
|
|
157.5
|
|
|||||
Segment contribution margin
|
|
$
|
177.0
|
|
|
$
|
45.4
|
|
|
$
|
18.6
|
|
|
$
|
(11.8
|
)
|
|
229.2
|
|
|
Depreciation and amortization
|
|
33.1
|
|
|
7.0
|
|
|
4.6
|
|
|
4.5
|
|
|
49.2
|
|
|||||
General and administrative expenses
|
|
|
|
|
|
|
|
|
|
52.9
|
|
|||||||||
Other operating income, net
|
|
|
|
|
|
|
|
|
|
(8.0
|
)
|
|||||||||
Operating income
|
|
|
|
|
|
|
|
|
|
$
|
135.1
|
|
||||||||
Total assets
(1)
|
|
$
|
5,101.7
|
|
|
$
|
650.3
|
|
|
$
|
332.8
|
|
|
$
|
127.0
|
|
|
$
|
6,211.8
|
|
Capital spending (excluding business combinations)
(2)
|
|
$
|
33.7
|
|
|
$
|
2.3
|
|
|
$
|
2.1
|
|
|
$
|
16.6
|
|
|
$
|
54.7
|
|
9
|
|
|
Delek US Holdings, Inc.
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Segment Data (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(In millions)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Six Months Ended June 30, 2019
|
||||||||||||||||||
|
|
Refining
|
|
Logistics
|
|
Retail
|
|
Corporate,
Other and Eliminations |
|
Consolidated
|
||||||||||
Net revenues (excluding intercompany fees and sales)
|
|
$
|
4,059.9
|
|
|
$
|
182.9
|
|
|
$
|
421.7
|
|
|
$
|
15.7
|
|
|
$
|
4,680.2
|
|
Intercompany fees and sales
|
|
399.9
|
|
|
124.9
|
|
|
—
|
|
|
(524.8
|
)
|
|
—
|
|
|||||
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of materials and other
|
|
3,751.2
|
|
|
190.1
|
|
|
345.5
|
|
|
(519.7
|
)
|
|
3,767.1
|
|
|||||
Operating expenses (excluding depreciation and amortization presented below)
|
|
236.0
|
|
|
33.4
|
|
|
48.4
|
|
|
11.2
|
|
|
329.0
|
|
|||||
Segment contribution margin
|
|
$
|
472.6
|
|
|
$
|
84.3
|
|
|
$
|
27.8
|
|
|
$
|
(0.6
|
)
|
|
$
|
584.1
|
|
Depreciation and amortization
|
|
64.3
|
|
|
13.2
|
|
|
8.5
|
|
|
10.9
|
|
|
96.9
|
|
|||||
General and administrative expenses
|
|
|
|
|
|
|
|
|
|
131.7
|
|
|||||||||
Other operating income, net
|
|
|
|
|
|
|
|
|
|
(1.2
|
)
|
|||||||||
Operating income
|
|
|
|
|
|
|
|
|
|
$
|
356.7
|
|
||||||||
Capital spending (excluding business combinations)
|
|
$
|
130.5
|
|
|
$
|
2.2
|
|
|
$
|
10.5
|
|
|
$
|
71.1
|
|
|
$
|
214.3
|
|
|
|
Six Months Ended June 30, 2018
|
||||||||||||||||||
|
|
Refining
(2)
(3)
|
|
Logistics
|
|
Retail
|
|
Corporate,
Other and Eliminations (3) |
|
Consolidated
(2)
|
||||||||||
Net revenues (excluding intercompany fees and sales)
|
|
$
|
4,257.8
|
|
|
$
|
219.5
|
|
|
$
|
454.4
|
|
|
$
|
58.4
|
|
|
$
|
4,990.1
|
|
Intercompany fees and sales
|
|
411.3
|
|
|
114.7
|
|
|
—
|
|
|
(526.0
|
)
|
|
—
|
|
|||||
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of materials and other
|
|
4,130.9
|
|
|
225.0
|
|
|
374.1
|
|
|
(437.0
|
)
|
|
4,293.0
|
|
|||||
Operating expenses (excluding depreciation and amortization presented below)
|
|
227.9
|
|
|
27.5
|
|
|
49.8
|
|
|
10.4
|
|
|
315.6
|
|
|||||
Segment contribution margin
|
|
$
|
310.3
|
|
|
$
|
81.7
|
|
|
$
|
30.5
|
|
|
$
|
(41.0
|
)
|
|
$
|
381.5
|
|
Depreciation and amortization
|
|
65.3
|
|
|
13.0
|
|
|
11.5
|
|
|
7.4
|
|
|
97.2
|
|
|||||
General and administrative expenses
|
|
|
|
|
|
|
|
|
|
118.1
|
|
|||||||||
Other operating income, net
|
|
|
|
|
|
|
|
|
|
(7.7
|
)
|
|||||||||
Operating Income
|
|
|
|
|
|
|
|
|
|
$
|
173.9
|
|
||||||||
Capital spending (excluding business combinations)
(3)
|
|
$
|
85.2
|
|
|
$
|
4.5
|
|
|
$
|
4.1
|
|
|
$
|
31.0
|
|
|
$
|
124.8
|
|
(1)
|
Refining segment and consolidated net revenues and cost of materials and other for the quarter and
six months ended
June 30, 2018
reflect a correction of an intercompany elimination which resulted in an increase in those accounts of
$73.4 million
not previously reflected on the unaudited consolidated financial statements in our June 30, 2018 Quarterly Report on Form 10-Q filed on August 9, 2018. Such amounts are not considered material to the financial statements and had no impact to operating income or segment contribution margin for those periods. See Note 23 to our annual audited consolidated financial statements included in Part II, Item 8 of our 2018 Annual Report on Form 10-K, as amended and filed on June 27, 2019, for further discussion.
|
(2)
|
Capital spending excludes transaction costs capitalized in the amount of
$0.4 million
during the
six months ended
June 30, 2018
, that relate to the Big Spring Logistic Assets Acquisition (as defined in
Note 5
).
|
(3)
|
The corporate, other and eliminations segment results of operations for the
six months ended
June 30, 2018
includes Canada trading activity which was previously included and reported in the refining segment for the three months ended March 31, 2018.
|
10
|
|
|
Refining Segment
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Tyler, TX Refinery
|
|
(Unaudited)
|
|
(Unaudited)
|
||||||||||||
Days in period
|
|
91
|
|
|
91
|
|
|
181
|
|
|
181
|
|
||||
Total sales volume - refined product (average barrels per day)
(1)
|
|
77,657
|
|
|
81,088
|
|
|
73,863
|
|
|
77,555
|
|
||||
Products manufactured (average barrels per day):
|
|
|
|
|
|
|
|
|
||||||||
Gasoline
|
|
39,997
|
|
|
42,918
|
|
|
39,671
|
|
|
41,800
|
|
||||
Diesel/Jet
|
|
31,505
|
|
|
32,899
|
|
|
29,455
|
|
|
30,275
|
|
||||
Petrochemicals, LPG, NGLs
|
|
3,318
|
|
|
2,877
|
|
|
2,690
|
|
|
2,479
|
|
||||
Other
|
|
1,654
|
|
|
1,742
|
|
|
1,411
|
|
|
1,756
|
|
||||
Total production
|
|
76,474
|
|
|
80,436
|
|
|
73,227
|
|
|
76,310
|
|
||||
Throughput (average barrels per day):
|
|
|
|
|
|
|
|
|
||||||||
Crude oil
|
|
71,918
|
|
|
75,272
|
|
|
68,219
|
|
|
70,305
|
|
||||
Other feedstocks
|
|
5,106
|
|
|
5,902
|
|
|
5,785
|
|
|
6,537
|
|
||||
Total throughput
|
|
77,024
|
|
|
81,174
|
|
|
74,004
|
|
|
76,842
|
|
||||
Per barrel of refined product sales:
|
|
|
|
|
|
|
|
|
||||||||
Tyler refining margin
|
|
$
|
12.15
|
|
|
$
|
11.90
|
|
|
$
|
16.84
|
|
|
$
|
10.21
|
|
Tyler adjusted refining margin
|
|
$
|
12.12
|
|
|
$
|
11.83
|
|
|
$
|
13.98
|
|
|
$
|
9.04
|
|
Direct operating expenses
|
|
$
|
3.65
|
|
|
$
|
3.38
|
|
|
$
|
4.15
|
|
|
$
|
3.40
|
|
Crude Slate: (% based on amount received in period)
|
|
|
|
|
|
|
|
|
||||||||
WTI crude oil
|
|
87.7
|
%
|
|
77.5
|
%
|
|
89.3
|
%
|
|
79.2
|
%
|
||||
East Texas crude oil
|
|
12.3
|
%
|
|
21.0
|
%
|
|
10.7
|
%
|
|
18.8
|
%
|
||||
Other
|
|
—
|
%
|
|
1.5
|
%
|
|
—
|
%
|
|
2.0
|
%
|
||||
|
|
|
|
|
|
|
|
|
||||||||
El Dorado, AR Refinery
|
|
|
|
|
|
|
|
|
||||||||
Days in period
|
|
91
|
|
|
91
|
|
|
181
|
|
|
181
|
|
||||
Total sales volume - refined product (average barrels per day)
(2)
|
|
51,002
|
|
|
76,353
|
|
|
51,717
|
|
|
73,488
|
|
||||
Products manufactured (average barrels per day):
|
|
|
|
|
|
|
|
|
||||||||
Gasoline
|
|
21,821
|
|
|
36,285
|
|
|
21,159
|
|
|
35,689
|
|
||||
Diesel
|
|
17,802
|
|
|
25,256
|
|
|
16,633
|
|
|
25,773
|
|
||||
Petrochemicals, LPG, NGLs
|
|
551
|
|
|
1,236
|
|
|
678
|
|
|
1,350
|
|
||||
Asphalt
|
|
6,961
|
|
|
4,662
|
|
|
5,899
|
|
|
4,895
|
|
||||
Other
|
|
683
|
|
|
785
|
|
|
661
|
|
|
812
|
|
||||
Total production
|
|
47,818
|
|
|
68,224
|
|
|
45,030
|
|
|
68,519
|
|
||||
Throughput (average barrels per day):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Crude oil
|
|
47,935
|
|
|
68,685
|
|
|
44,542
|
|
|
68,559
|
|
||||
Other feedstocks
|
|
359
|
|
|
1,175
|
|
|
1,270
|
|
|
1,475
|
|
||||
Total throughput
|
|
48,294
|
|
|
69,860
|
|
|
45,812
|
|
|
70,034
|
|
||||
Per barrel of refined product sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
El Dorado refining margin
|
|
$
|
8.93
|
|
|
$
|
4.74
|
|
|
$
|
11.21
|
|
|
$
|
8.73
|
|
El Dorado adjusted refining margin
|
|
$
|
9.07
|
|
|
7.22
|
|
|
$
|
11.67
|
|
|
$
|
5.41
|
|
|
Direct operating expenses
|
|
$
|
5.93
|
|
|
$
|
4.84
|
|
|
$
|
6.31
|
|
|
$
|
4.99
|
|
Crude Slate: (% based on amount received in period)
|
|
|
|
|
|
|
|
|
||||||||
WTI crude oil
|
|
43.9
|
%
|
|
68.0
|
%
|
|
42.6
|
%
|
|
65.1
|
%
|
||||
Local Arkansas crude oil
|
|
29.0
|
%
|
|
21.0
|
%
|
|
28.3
|
%
|
|
20.7
|
%
|
||||
Other
|
|
27.1
|
%
|
|
11.0
|
%
|
|
29.1
|
%
|
|
14.2
|
%
|
11
|
|
|
Refining Segment
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Big Spring, TX Refinery
|
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||
Days in period - based on date acquired
|
|
91
|
|
|
91
|
|
|
181
|
|
|
181
|
|
||||
Total sales volume - refined product (average barrels per day)
(3)
|
|
78,158
|
|
|
77,005
|
|
|
79,993
|
|
|
69,928
|
|
||||
Products manufactured (average barrels per day):
|
|
|
|
|
|
|
|
|
||||||||
Gasoline
|
|
36,428
|
|
|
36,009
|
|
|
37,657
|
|
|
33,581
|
|
||||
Diesel/Jet
|
|
26,638
|
|
|
29,266
|
|
|
27,494
|
|
|
24,180
|
|
||||
Petrochemicals, LPG, NGLs
|
|
3,679
|
|
|
3,834
|
|
|
3,763
|
|
|
3,431
|
|
||||
Asphalt
|
|
1,900
|
|
|
1,856
|
|
|
1,707
|
|
|
1,856
|
|
||||
Other
|
|
1,354
|
|
|
1,476
|
|
|
1,296
|
|
|
1,295
|
|
||||
Total production
|
|
69,999
|
|
|
72,441
|
|
|
71,917
|
|
|
64,343
|
|
||||
Throughput (average barrels per day):
|
|
|
|
|
|
|
|
|
||||||||
Crude oil
|
|
72,965
|
|
|
72,013
|
|
|
72,649
|
|
|
62,936
|
|
||||
Other feedstocks
|
|
(581
|
)
|
|
171
|
|
|
648
|
|
|
1,007
|
|
||||
Total throughput
|
|
72,384
|
|
|
72,184
|
|
|
73,297
|
|
|
63,943
|
|
||||
Per barrel of refined product sales:
|
|
|
|
|
|
|
|
|
||||||||
Big Spring refining margin
|
|
$
|
13.77
|
|
|
$
|
16.88
|
|
|
$
|
16.00
|
|
|
$
|
13.62
|
|
Big Spring adjusted refining margin
|
|
$
|
13.87
|
|
|
$
|
16.99
|
|
|
$
|
16.28
|
|
|
$
|
13.66
|
|
Direct operating expenses
|
|
$
|
3.69
|
|
|
$
|
3.57
|
|
|
$
|
3.75
|
|
|
$
|
4.31
|
|
Crude Slate: (% based on amount received in period)
|
|
|
|
|
|
|
|
|
||||||||
WTI crude oil
|
|
73.3
|
%
|
|
72.0
|
%
|
|
76.3
|
%
|
|
71.2
|
%
|
||||
WTS crude oil
|
|
26.7
|
%
|
|
28.0
|
%
|
|
23.7
|
%
|
|
28.8
|
%
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Krotz Springs, LA Refinery
|
|
|
|
|
|
|
|
|
||||||||
Days in period - based on date acquired
|
|
91
|
|
|
91
|
|
|
181
|
|
|
181
|
|
||||
Total sales volume - refined product (average barrels per day)
(4)
|
|
75,283
|
|
|
76,789
|
|
|
76,749
|
|
|
78,335
|
|
||||
Products manufactured (average barrels per day):
|
|
|
|
|
|
|
|
|
||||||||
Gasoline
|
|
34,498
|
|
|
35,976
|
|
|
36,270
|
|
|
37,515
|
|
||||
Diesel/Jet
|
|
29,776
|
|
|
32,008
|
|
|
30,082
|
|
|
31,534
|
|
||||
Heavy oils
|
|
1,110
|
|
|
1,362
|
|
|
1,100
|
|
|
1,350
|
|
||||
Petrochemicals, LPG, NGLs
|
|
4,264
|
|
|
7,295
|
|
|
5,758
|
|
|
7,522
|
|
||||
Other
|
|
—
|
|
|
—
|
|
|
52
|
|
|
—
|
|
||||
Total production
|
|
69,648
|
|
|
76,641
|
|
|
73,262
|
|
|
77,921
|
|
||||
Throughput (average barrels per day):
|
|
|
|
|
|
|
|
|
|
|
||||||
Crude oil
|
|
70,162
|
|
|
74,625
|
|
|
71,240
|
|
|
74,256
|
|
||||
Other feedstocks
|
|
(1,327
|
)
|
|
997
|
|
|
908
|
|
|
2,406
|
|
||||
Total throughput
|
|
68,835
|
|
|
75,622
|
|
|
72,148
|
|
|
76,662
|
|
||||
Per barrel of refined product sales:
|
|
|
|
|
|
|
|
|
|
|
||||||
Krotz Springs refining margin
|
|
$
|
9.69
|
|
|
$
|
8.82
|
|
|
$
|
10.84
|
|
|
$
|
7.86
|
|
Krotz Springs adjusted refining margin
|
|
$
|
9.77
|
|
|
$
|
9.48
|
|
|
$
|
11.38
|
|
|
$
|
6.06
|
|
Direct operating expenses
|
|
$
|
4.39
|
|
|
$
|
3.87
|
|
|
$
|
4.14
|
|
|
$
|
3.72
|
|
Crude Slate: (% based on amount received in period)
|
|
|
|
|
|
|
|
|
||||||||
WTI Crude
|
|
61.0
|
%
|
|
54.9
|
%
|
|
62.0
|
%
|
|
57.2
|
%
|
||||
Gulf Coast Sweet Crude
|
|
39.0
|
%
|
|
45.1
|
%
|
|
38.0
|
%
|
|
42.8
|
%
|
12
|
|
|
Pricing statistics
|
|
|
|
|
||||||||||||
(average for the period presented)
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(Unaudited)
|
|
(Unaudited)
|
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
WTI — Cushing crude oil (per barrel)
|
|
$
|
59.80
|
|
|
$
|
68.03
|
|
|
$
|
57.36
|
|
|
$
|
65.52
|
|
WTI — Midland crude oil (per barrel)
|
|
$
|
57.56
|
|
|
$
|
59.93
|
|
|
$
|
55.65
|
|
|
$
|
61.19
|
|
WTS -- Midland crude oil (per barrel)
(5)
|
|
$
|
57.93
|
|
|
$
|
59.53
|
|
|
$
|
55.95
|
|
|
$
|
60.47
|
|
LLS crude oil (per barrel)
(5)
|
|
$
|
67.06
|
|
|
$
|
73.02
|
|
|
$
|
64.73
|
|
|
$
|
69.51
|
|
Brent crude oil (per barrel)
|
|
$
|
68.44
|
|
|
$
|
74.96
|
|
|
$
|
66.14
|
|
|
$
|
71.18
|
|
|
|
|
|
|
|
|
|
|
||||||||
US Gulf Coast 5-3-2 crack spread (per barrel)
(5)
|
|
$
|
15.51
|
|
|
$
|
14.37
|
|
|
$
|
14.28
|
|
|
$
|
12.99
|
|
US Gulf Coast 3-2-1 crack spread (per barrel)
(5)
|
|
$
|
19.24
|
|
|
$
|
18.26
|
|
|
$
|
17.23
|
|
|
$
|
16.82
|
|
US Gulf Coast 2-1-1 crack spread (per barrel)
(5)
|
|
$
|
9.75
|
|
|
$
|
10.83
|
|
|
$
|
8.55
|
|
|
$
|
10.29
|
|
|
|
|
|
|
|
|
|
|
||||||||
US Gulf Coast Unleaded Gasoline (per gallon)
|
|
$
|
1.79
|
|
|
$
|
1.96
|
|
|
$
|
1.66
|
|
|
$
|
1.87
|
|
Gulf Coast Ultra low sulfur diesel (per gallon)
|
|
$
|
1.94
|
|
|
$
|
2.11
|
|
|
$
|
1.91
|
|
|
$
|
2.02
|
|
US Gulf Coast high sulfur diesel (per gallon)
|
|
$
|
1.80
|
|
|
$
|
1.96
|
|
|
$
|
1.78
|
|
|
$
|
1.87
|
|
Natural gas (per MMBTU)
|
|
$
|
2.51
|
|
|
$
|
2.83
|
|
|
$
|
2.69
|
|
|
$
|
2.84
|
|
(1)
|
Total sales volume includes
628
bpd and
366
bpd sold to the El Dorado refinery,
104
bpd and
100
bpd sold to the Big Spring refinery,
182
bpd and
91
bpd sold to the Krotz Springs refinery and
24
bpd and
281
bpd sold to the logistics segment during the
three and six
months ended
June 30, 2019
, respectively. Total sales volume includes
109
bpd and
120
bpd sold to the El Dorado refinery,
428
bpd and
459
bpd sold to the Big Spring refinery,
no
bpd and
118
bpd sold to the Krotz Springs refinery and
267
bpd and
917
bpd sold to the logistics segment during the
three and six
months ended
June 30, 2018
, respectively. Total sales volume excludes wholesale activity of
4,939
bpd and
4,760
bpd of during the
three and six
months ended
June 30, 2019
, respectively, and
4,729
bpd and
4,603
bpd during the
three and six
months ended
June 30, 2018
, respectively.
|
(2)
|
Total sales volume includes
333
bpd and
no
bpd sold to the Tyler refinery,
33,659
bpd and
no
bpd sold to the Krotz Springs refinery,
377
bpd and
no
bpd sold to the Big Spring refinery,
15
bpd and
no
bpd sold to logistics segment and
43
bpd and
no
bpd sold to Alon Asphalt Company during the
three and six
months ended
June 30, 2019
, respectively. Total sales volume includes
985
bpd and
515
bpd sold to the Tyler refinery,
21,648
bpd and
11,407
bpd sold to the Krotz Springs refinery,
302
bpd and
566
bpd sold to the Big Spring refinery,
no
bpd and
no
bpd sold to logistics segment and
220
bpd and
123
bpd sold to Alon Asphalt Company during the
three and six
months ended
June 30, 2018
, respectively. Total sales volume excludes wholesale activity of
67,741
bpd and
66,237
bpd during the
three and six
months ended
June 30, 2019
, respectively, and
48,287
bpd and
50,709
bpd during the
three and six
months ended
June 30, 2018
, respectively.
|
(3)
|
Total sales volume includes
653
bpd and
no
bpd sold to the Tyler refinery,
no
bpd and
no
bpd sold to the El Dorado refinery,
13,914
bpd and
no
bpd sold to the retail segment,
9,401
bpd and
no
bpd sold to the logistics segment and
1,900
bpd and
no
bpd sold to Alon Asphalt Company during the
three and six
months ended
June 30, 2019
, respectively. Total sales volume includes
600
bpd and
410
bpd sold to the Tyler refinery,
no
bpd and
no
bpd sold to the El Dorado refinery,
13,838
bpd and
14,026
bpd sold to the retail segment,
3,158
bpd and
4,237
bpd sold to the logistics segment and
1,895
bpd and
1,522
bpd sold to Alon Asphalt Company during the
three and six
months ended
June 30, 2018
, respectively. Total sales volume excludes wholesale activity of
8,183
bpd and
7,833
bpd during the
three and six
months ended
June 30, 2019
, respectively, and
5,927
bpd and
8,103
bpd during the
three and six
months ended
June 30, 2018
, respectively.
|
(4)
|
Total sales volume includes
10,185
bpd and
no
bpd sold to the El Dorado refinery and
26
bpd and
no
bpd sold to the Tyler refinery during the
three and six
months ended
June 30, 2019
, respectively. Total sales volume includes
39,398
bpd and
29,130
bpd sold to the El Dorado refinery and
no
bpd and
110
bpd sold to the Tyler refinery during the
three and six
months ended
June 30, 2018
, respectively. Total sales volume excludes wholesale activity of
13,977
bpd and
15,196
bpd during the
three and six
months ended
June 30, 2019
, respectively, and
10,222
bpd and
7,247
bpd during the
three and six
months ended
June 30, 2018
, respectively.
|
(5)
|
For our Tyler and El Dorado refineries, we compare our per barrel refining product margin to the Gulf Coast 5-3-2 crack spread consisting of WTI Cushing crude, U.S. Gulf Coast CBOB and U.S, Gulf Coast Pipeline No. 2 heating oil (high sulfur diesel). For our Big Spring refinery, we compare our per barrel refined product margin to the Gulf Coast 3-2-1 crack spread consisting of WTI Cushing crude, Gulf Coast 87 Conventional gasoline and Gulf Coast ultra low sulfur diesel, and for our Krotz Springs refinery, we compare our per barrel refined product margin to the Gulf Coast 2-1-1 crack spread consisting of LLS crude oil, Gulf Coast 87 Conventional gasoline and U.S, Gulf Coast Pipeline No. 2 heating oil (high sulfur diesel). The Tyler refinery's crude oil input is primarily WTI Midland and east Texas, while the El Dorado refinery's crude input is primarily a combination of WTI Midland, local Arkansas and other domestic inland crude oil. The Big Spring refinery’s crude oil input is primarily comprised of WTS and WTI Midland. The Krotz Springs refinery’s crude oil input is primarily comprised of LLS and WTI Midland.
|
13
|
|
|
Delek US Holdings, Inc.
|
||||||||||||||||
Reconciliation of Refining Margin per barrel to Adjusted Refining Margin per barrel
(1)
|
||||||||||||||||
$ in millions, except per share data
|
||||||||||||||||
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(Unaudited)
|
|
(Unaudited)
|
||||||||||||
Tyler
(2)
|
|
|
|
|
|
|
|
|
||||||||
Reported refining margin, $ per barrel
|
|
$
|
12.15
|
|
|
$
|
11.90
|
|
|
$
|
16.84
|
|
|
$
|
10.21
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
||||||||
Net inventory valuation (benefit)
|
|
(0.03
|
)
|
|
(0.07
|
)
|
|
(2.86
|
)
|
|
(0.07
|
)
|
||||
Renewable biofuels credit allocated to refinery
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.10
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Adjusted refining margin $/bbl
|
|
$
|
12.12
|
|
|
$
|
11.83
|
|
|
$
|
13.98
|
|
|
$
|
9.04
|
|
|
||||||||||||||||
El Dorado
(3)
|
|
|
|
|
|
|
|
|
||||||||
Reported refining margin, $ per barrel
|
|
$
|
8.93
|
|
|
$
|
4.74
|
|
|
$
|
11.21
|
|
|
$
|
8.73
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
||||||||
Net inventory valuation loss
|
|
0.14
|
|
|
0.01
|
|
|
0.46
|
|
|
0.01
|
|
||||
RIN waiver
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.46
|
)
|
||||
Renewable biofuels credit allocated to refinery
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.45
|
)
|
||||
Non-cash RINs inventory mark-to-market
|
|
—
|
|
|
2.47
|
|
|
—
|
|
|
1.58
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Adjusted refining margin $/bbl
|
|
$
|
9.07
|
|
|
$
|
7.22
|
|
|
$
|
11.67
|
|
|
$
|
5.41
|
|
|
|
|
|
|
|
|
|
|
||||||||
Big Spring
(4)
|
|
|
|
|
|
|
|
|
||||||||
Reported refining margin, $ per barrel
|
|
$
|
13.77
|
|
|
$
|
16.88
|
|
|
$
|
16.00
|
|
|
$
|
13.62
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
||||||||
Net inventory valuation loss
|
|
0.10
|
|
|
0.11
|
|
|
0.28
|
|
|
0.04
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Adjusted refining margin $/bbl
|
|
$
|
13.87
|
|
|
$
|
16.99
|
|
|
$
|
16.28
|
|
|
$
|
13.66
|
|
|
|
|
|
|
|
|
|
|
||||||||
Krotz Springs
(5)
|
|
|
|
|
|
|
|
|
||||||||
Reported refining margin, $ per barrel
|
|
$
|
9.69
|
|
|
$
|
8.82
|
|
|
$
|
10.84
|
|
|
$
|
7.86
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
||||||||
Net inventory valuation loss
|
|
0.08
|
|
|
0.01
|
|
|
0.54
|
|
|
0.01
|
|
||||
RIN waiver
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.23
|
)
|
||||
Non-cash RINs inventory mark-to-market
|
|
—
|
|
|
0.65
|
|
|
—
|
|
|
0.42
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Adjusted refining margin $/bbl
|
|
$
|
9.77
|
|
|
$
|
9.48
|
|
|
$
|
11.38
|
|
|
$
|
6.06
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Adjusted refining margin per barrel is presented to provide a measure to evaluate performance excluding inventory valuation adjustments 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.
|
(2)
|
Tyler adjusted refining margins exclude the following items.
|
14
|
|
|
(3)
|
El Dorado adjusted refining margins exclude the following items.
|
(4)
|
Big Spring adjusted refining margins exclude the following items.
|
(5)
|
Krotz Springs adjusted refining margins exclude the following items.
|
Logistics Segment
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(Unaudited)
|
|
(Unaudited)
|
||||||||||||
Pipelines & Transportation: (average bpd)
|
|
|
|
|
|
|
|
|
||||||||
Lion Pipeline System:
|
|
|
|
|
|
|
|
|
||||||||
Crude pipelines (non-gathered)
|
|
37,625
|
|
|
56,088
|
|
|
33,179
|
|
|
55,412
|
|
||||
Refined products pipelines
|
|
29,893
|
|
|
48,013
|
|
|
26,511
|
|
|
48,879
|
|
||||
SALA Gathering System
|
|
17,777
|
|
|
16,738
|
|
|
17,390
|
|
|
16,705
|
|
||||
East Texas Crude Logistics System
|
|
19,550
|
|
|
16,902
|
|
|
18,835
|
|
|
17,478
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Wholesale Marketing & Terminalling:
|
|
|
|
|
|
|
|
|
||||||||
East Texas - Tyler Refinery sales volumes (average bpd)
(1)
|
|
71,123
|
|
|
79,330
|
|
|
69,857
|
|
|
76,304
|
|
||||
West Texas marketing throughputs (average bpd)
|
|
11,404
|
|
|
12,261
|
|
|
12,418
|
|
|
14,091
|
|
||||
West Texas gross margin per barrel
|
|
$
|
6.25
|
|
|
$
|
8.06
|
|
|
$
|
4.84
|
|
|
$
|
6.43
|
|
Big Spring Marketing - Refinery sales volume (average bpd) (for period owned)
(2)
|
|
82,964
|
|
|
80,536
|
|
|
85,339
|
|
|
79,165
|
|
||||
Terminalling throughputs (average bpd)
(3)
|
|
156,922
|
|
|
162,383
|
|
|
154,643
|
|
|
154,917
|
|
15
|
|
|
Retail Segment
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(Unaudited)
|
|
(Unaudited)
|
||||||||||||
Number of stores (end of period)
|
|
263
|
|
|
297
|
|
|
263
|
|
|
297
|
|
||||
Average number of stores
|
|
277
|
|
|
297
|
|
|
279
|
|
|
298
|
|
||||
Retail fuel sales (thousands of gallons)
|
|
53,743
|
|
|
54,114
|
|
|
107,633
|
|
|
107,813
|
|
||||
Average retail gallons per average number of stores (in thousands)
|
|
201
|
|
|
188
|
|
|
399
|
|
|
373
|
|
||||
Retail fuel margin ($ per gallon)
(1)
|
|
$
|
0.29
|
|
|
$
|
0.24
|
|
|
$
|
0.25
|
|
|
$
|
0.21
|
|
Merchandise sales (in millions)
|
|
$
|
83.3
|
|
|
$
|
90.2
|
|
|
$
|
158.6
|
|
|
$
|
168.3
|
|
Merchandise sales per average number of stores (in millions)
|
|
$
|
0.3
|
|
|
$
|
0.3
|
|
|
$
|
0.6
|
|
|
$
|
0.6
|
|
Merchandise margin %
|
|
31.2
|
%
|
|
31.7
|
%
|
|
31.1
|
%
|
|
31.0
|
%
|
||||
Change in same-store fuel gallons sold
(2)
|
|
1.7 %
|
|
|
—
|
%
|
|
3.1 %
|
|
|
—
|
%
|
||||
Change in same-store merchandise sales
(2)
|
|
(2.5
|
)%
|
|
—
|
%
|
|
(0.5
|
)%
|
|
—
|
%
|
(1)
|
Retail fuel margin represents gross margin on fuel sales in the retail segment, and is calculated as retail fuel sales revenue less retail fuel cost of sales. The retail fuel margin per gallon calculation is derived by dividing retail fuel margin by the total retail fuel gallons sold for the period.
|
(2)
|
Same-store comparisons include period-over-period increases or decreases in specified metrics for stores that were in service at both the beginning of the earliest period and the end of the most recent period used in the comparison.
|
16
|
|
|
Delek US Holdings, Inc.
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation of Amounts Reported Under U.S. GAAP
|
|
|
|
|
|
|
|
|
||||||||
$ in millions
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
||||||||||||
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
Reconciliation of Net Income (Loss) attributable to Delek to Adjusted Net Income
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(Unaudited)
|
|
(Unaudited)
|
||||||||||||
Reported net income attributable to Delek
|
|
$
|
77.3
|
|
|
$
|
79.1
|
|
|
$
|
226.6
|
|
|
$
|
38.7
|
|
|
|
|
|
|
|
|
|
|
||||||||
Adjustments
|
|
|
|
|
|
|
|
|
||||||||
Net inventory valuation loss (benefit)
|
|
0.6
|
|
|
(1.0
|
)
|
|
(51.5
|
)
|
|
(1.9
|
)
|
||||
Tax effect of inventory valuation
|
|
(0.1
|
)
|
|
0.2
|
|
|
11.2
|
|
|
0.4
|
|
||||
Net after tax inventory valuation loss (benefit)
|
|
0.5
|
|
|
(0.8
|
)
|
|
(40.3
|
)
|
|
(1.5
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Adjusted unrealized hedging loss (gain)
|
|
8.5
|
|
|
(2.4
|
)
|
|
21.8
|
|
|
5.4
|
|
||||
Tax effect of adjusted unrealized hedging
|
|
(1.9
|
)
|
|
0.5
|
|
|
(4.9
|
)
|
|
(1.2
|
)
|
||||
Net after tax adjusted unrealized hedging loss (gain)
|
|
6.6
|
|
|
(1.9
|
)
|
|
16.9
|
|
|
4.2
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Transaction related expenses
|
|
0.3
|
|
|
2.6
|
|
|
3.3
|
|
|
13.2
|
|
||||
Tax effect of transaction related expenses
|
|
(0.1
|
)
|
|
(0.6
|
)
|
|
(0.7
|
)
|
|
(2.8
|
)
|
||||
Net after tax transaction related expenses
|
|
0.2
|
|
|
2.0
|
|
|
2.6
|
|
|
10.4
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Tax Cuts and Jobs Act adjustment
|
|
—
|
|
|
10.0
|
|
|
—
|
|
|
2.6
|
|
||||
Net after tax Tax Cuts and Jobs Act adjustment
|
|
—
|
|
|
10.0
|
|
|
—
|
|
|
2.6
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Loss on extinguishment of debt
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9.0
|
|
||||
Tax effect of loss on extinguishment of debt
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.1
|
)
|
||||
Net after tax loss on extinguishment of debt
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6.9
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Impairment loss on assets held for sale
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27.5
|
|
||||
Tax effect of impairment loss on assets held for sale
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
||||
Net after tax impairment loss on assets held for sale
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27.0
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Gain on sale of the asphalt business
|
|
—
|
|
|
(13.2
|
)
|
|
—
|
|
|
(13.2
|
)
|
||||
Tax effect of gain on sale of the asphalt business
|
|
—
|
|
|
2.9
|
|
|
—
|
|
|
2.9
|
|
||||
Net after tax gain on sale of the asphalt business
|
|
—
|
|
|
(10.3
|
)
|
|
—
|
|
|
(10.3
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Non-operating, pre-acquisition litigation contingent losses and related legal expenses
|
|
6.7
|
|
|
—
|
|
|
6.7
|
|
|
—
|
|
||||
Tax effect of non-operating pre-acquisition litigation contingent losses and related legal expenses
|
|
(1.5
|
)
|
|
—
|
|
|
(1.5
|
)
|
|
—
|
|
||||
Net after tax non-operating pre-acquisition litigation contingent losses and related legal expenses
|
|
5.2
|
|
|
—
|
|
|
5.2
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Discontinued operations loss
|
|
1.0
|
|
|
1.0
|
|
|
1.0
|
|
|
11.5
|
|
||||
Tax effect of discontinued operations
|
|
(0.2
|
)
|
|
(0.2
|
)
|
|
(0.2
|
)
|
|
(2.5
|
)
|
||||
Net after tax discontinued operations loss
|
|
0.8
|
|
|
0.8
|
|
|
0.8
|
|
|
9.0
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Income attributable to non-controlling interest of discontinued operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10.5
|
|
||||
Tax effect of income attributable to non-controlling interest of discontinued operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.4
|
)
|
||||
Net after tax income attributable to non-controlling interest of discontinued operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8.1
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Tax adjustment related to unrealizable deferred taxes created in Big Spring Asset Acquisition
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5.5
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Total after tax adjustments
|
|
13.3
|
|
|
(0.2
|
)
|
|
(14.8
|
)
|
|
61.9
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Adjusted net income
|
|
$
|
90.6
|
|
|
$
|
78.9
|
|
|
$
|
211.8
|
|
|
$
|
100.6
|
|
|
|
|
|
|
|
|
|
|
17
|
|
|
Delek US Holdings, Inc.
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation of Amounts Reported Under U.S. GAAP
|
|
|
|
|
|
|
|
|
||||||||
per share data
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
Reconciliation of U.S. GAAP Income (Loss) per share to Adjusted Net Income per share
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(Unaudited)
|
|
(Unaudited)
|
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
Reported diluted income per share
|
|
$
|
1.00
|
|
|
$
|
0.89
|
|
|
$
|
2.91
|
|
|
$
|
0.45
|
|
|
|
|
|
|
|
|
|
|
||||||||
Adjustments, after tax (per share)
(1)
|
|
|
|
|
|
|
|
|
||||||||
Net inventory valuation loss (gain)
|
|
0.01
|
|
|
(0.01
|
)
|
|
(0.52
|
)
|
|
(0.02
|
)
|
||||
Adjusted unrealized hedging loss (gain)
|
|
0.08
|
|
|
(0.02
|
)
|
|
0.22
|
|
|
0.05
|
|
||||
Transaction related expenses
|
|
—
|
|
|
0.02
|
|
|
0.03
|
|
|
0.12
|
|
||||
Tax Cuts and Jobs Act adjustment
|
|
—
|
|
|
0.11
|
|
|
—
|
|
|
0.03
|
|
||||
Impairment loss on assets held for sale
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.31
|
|
||||
Gain on sale of the asphalt business
|
|
—
|
|
|
(0.11
|
)
|
|
—
|
|
|
(0.12
|
)
|
||||
Loss on extinguishment of debt
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.08
|
|
||||
Non-operating, pre-acquisition litigation contingent losses and related legal expenses
|
|
0.07
|
|
|
—
|
|
|
0.07
|
|
|
—
|
|
||||
Discontinued operations loss
|
|
0.01
|
|
|
0.01
|
|
|
0.01
|
|
|
0.10
|
|
||||
Net income attributable to non-controlling interest of discontinued operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.09
|
|
||||
Tax adjustment related to unrealizable deferred taxes created in Big Spring Asset Acquisition
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.06
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Total adjustments
|
|
0.17
|
|
|
—
|
|
|
(0.19
|
)
|
|
0.72
|
|
||||
Adjustment for economic benefit of note hedge related to Senior Convertible Notes
|
|
—
|
|
|
0.03
|
|
|
—
|
|
|
—
|
|
||||
Adjusted net income per share
|
|
$
|
1.17
|
|
|
$
|
0.92
|
|
|
$
|
2.72
|
|
|
$
|
1.17
|
|
18
|
|
|
Delek US Holdings, Inc.
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation of Amounts Reported Under U.S. GAAP
|
|
|
|
|
|
|
|
|
||||||||
$ in millions
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
||||||||||||
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
Reconciliation of Net Income attributable to Delek to Adjusted EBITDA
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(Unaudited)
|
|
(Unaudited)
|
||||||||||||
Reported net income attributable to Delek
|
|
$
|
77.3
|
|
|
$
|
79.1
|
|
|
$
|
226.6
|
|
|
$
|
38.7
|
|
|
|
|
|
|
|
|
|
|
||||||||
Add:
|
|
|
|
|
|
|
|
|
||||||||
Interest expense, net
|
|
29.5
|
|
|
30.6
|
|
|
55.7
|
|
|
62.4
|
|
||||
Loss on extinguishment of debt
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9.0
|
|
||||
Income tax expense - continuing operations
|
|
24.6
|
|
|
32.8
|
|
|
70.4
|
|
|
21.3
|
|
||||
Depreciation and amortization
|
|
50.1
|
|
|
49.2
|
|
|
96.9
|
|
|
97.2
|
|
||||
EBITDA
|
|
181.5
|
|
|
191.7
|
|
|
449.6
|
|
|
228.6
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Adjustments
|
|
|
|
|
|
|
|
|
||||||||
Net inventory valuation loss (gain)
|
|
0.6
|
|
|
(1.0
|
)
|
|
(51.5
|
)
|
|
(1.9
|
)
|
||||
Adjusted unrealized hedging loss (gain)
|
|
8.5
|
|
|
(2.4
|
)
|
|
21.8
|
|
|
5.4
|
|
||||
Transaction related expenses
|
|
0.3
|
|
|
2.6
|
|
|
3.3
|
|
|
13.2
|
|
||||
Impairment loss on assets held for sale
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27.5
|
|
||||
Gain on sale of the asphalt business
|
|
—
|
|
|
(13.2
|
)
|
|
—
|
|
|
(13.2
|
)
|
||||
Non-operating, pre-acquisition litigation contingent losses and related legal expenses
|
|
6.7
|
|
|
—
|
|
|
6.7
|
|
|
—
|
|
||||
Discontinued operations loss, net of tax
|
|
0.8
|
|
|
0.8
|
|
|
0.8
|
|
|
9.0
|
|
||||
Net income attributable to non-controlling interest
|
|
6.5
|
|
|
7.6
|
|
|
11.6
|
|
|
22.5
|
|
||||
Total adjustments
|
|
23.4
|
|
|
(5.6
|
)
|
|
(7.3
|
)
|
|
62.5
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA
|
|
$
|
204.9
|
|
|
$
|
186.1
|
|
|
$
|
442.3
|
|
|
$
|
291.1
|
|
|
|
|
|
|
|
|
|
|
19
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
Reconciliation of Refining Segment Gross Margin to Refining Margin
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(Unaudited)
|
(Unaudited)
|
||||||||||||||
Net revenues
|
|
$
|
2,367.8
|
|
|
$
|
2,543.2
|
|
|
$
|
4,459.8
|
|
|
$
|
4,669.1
|
|
Cost of sales
|
|
2,222.7
|
|
|
2,399.3
|
|
|
4,051.5
|
|
|
4,424.1
|
|
||||
Gross margin
|
|
145.1
|
|
|
143.9
|
|
|
408.3
|
|
|
245.0
|
|
||||
Add back (items included in cost of sales):
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses (excluding depreciation and amortization)
|
|
115.0
|
|
|
113.2
|
|
|
236.0
|
|
|
227.9
|
|
||||
Depreciation and amortization
|
|
33.2
|
|
|
33.1
|
|
|
64.3
|
|
|
65.3
|
|
||||
Refining margin
|
|
$
|
293.3
|
|
|
$
|
290.2
|
|
|
$
|
708.6
|
|
|
$
|
538.2
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
Reconciliation of Unrealized (Gains) Losses on Economic Hedge Commodity Derivatives Not Designated as Hedges to Adjusted Unrealized Hedging (Gains) Losses
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||
Unrealized loss on economic hedge commodity derivatives not designated as hedges
|
|
$
|
3.6
|
|
|
$
|
9.9
|
|
|
$
|
30.7
|
|
|
$
|
24.7
|
|
Reversal of prior period unrealized gain where the instrument has matured but has not cash settled as of period end
|
|
5.6
|
|
|
2.4
|
|
|
(8.1
|
)
|
|
(4.6
|
)
|
||||
Removal of portion of unrealized loss where the instrument has matured but has not cash settled as of period end
|
|
(0.8
|
)
|
|
(14.7
|
)
|
|
(0.8
|
)
|
|
(14.7
|
)
|
||||
Adjusted unrealized hedging losses (gains)
|
|
$
|
8.4
|
|
|
$
|
(2.4
|
)
|
|
$
|
21.8
|
|
|
$
|
5.4
|
|
20
|
|
|