On a year-over-year basis, results in the fourth quarter 2015 benefited from a higher
For the full year 2015,
Yemin concluded, “With declining capital expenditure needs in our operations following the completion of a large investment program in refining and no scheduled turnarounds until 2019 and 2020, our free cash flow potential from operations should improve. Our capital expenditures are expected to decline by 59 percent from
In the first quarter 2016,
Regular Quarterly Dividend and Share Repurchase
During the fourth quarter 2015, approximately 484,000 shares were repurchased for
Our Board of Directors has approved a new share repurchase authorization for
Liquidity
As of December 31, 2015,
Refining Segment
| Tyler, Texas Refinery |
El Dorado, Arkansas |
||||||||||||||||
| Operating Highlights |
Three Months Ended |
Three Months Ended |
|||||||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||||||
| Contribution Margin, $ in millions | $ | 6.8 | $ | 46.2 | $ | (5.4 | ) | $ | 36.4 | ||||||||
| Crude Throughput, bpd | 63,930 | 58,728 | 73,578 | 69,654 | |||||||||||||
| Total Throughput, bpd | 69,965 | 69,277 | 80,794 | 77,441 | |||||||||||||
| Total Sales Volume, bpd | 70,867 | 65,967 | 80,881 | 78,599 | |||||||||||||
| Refining Margin, $/bbl sold | $ | 5.39 | $ | 11.85 | $ | 3.01 | $ | 8.56 | |||||||||
| Adjusted Refining Margin, $/bbl sold (1) | $ | 7.42 | $ | 14.50 | $ | 4.59 | $ | 7.41 | |||||||||
| Direct Operating Expense, $ in millions | $ | 28.3 | $ | 25.8 | $ | 27.7 | $ | 25.4 | |||||||||
| Direct Operating Expense, $/bbl sold | $ | 4.34 | $ | 4.25 | $ | 3.73 | $ | 3.52 | |||||||||
(1) Reconciliations of refining margin and adjusted refining margin are included in the attached tables.
Refining segment contribution margin decreased to
The Midland WTI crude differential to Cushing WTI declined on a year-over-year basis, averaging a
The fourth quarter 2015 included a net hedging loss of
During the fourth quarter 2015, approximately
A partial offset to the bio-diesel blenders tax credit was increased RINs expense in the fourth quarter 2015. In the fourth quarter 2015, the
In the fourth quarter operating expenses increased at both refineries on a year-over-year basis. The increase at
Logistics Segment
The logistics segment’s contribution margin in the fourth quarter 2015 was
Retail Segment
| Three Months Ended December 31, |
||||||||||
| Retail Operating Highlights | 2015 | 2014 | ||||||||
| Contribution margin, $ in millions | $ | 15.2 | $ | 22.0 | ||||||
| Operating expenses, $ in millions | $ | 34.0 | $ | 33.4 | ||||||
| Merchandise margin | 27.6 | % | 27.5 | % | ||||||
| Fuel margin, per gallon | $ | 0.172 | $ | 0.238 | ||||||
| Store count (end of period) | 358 | 365 | ||||||||
Retail segment contribution margin decreased year-over-year primarily due to lower fuel margins, partially offset by higher fuel gallons sold and merchandise sales. Fuel gallons sold increased to 114.7 million from 113.6 million in the prior-year period and merchandise sales increased year-over-year to
Fourth Quarter 2015 Results | Conference Call Information
Investors may also wish to listen to
About
Safe Harbor Provisions Regarding Forward-Looking Statements
This 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 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; changes in the scope, costs, and/or timing of capital and maintenance projects; management’s ability to execute its strategy of growth through acquisitions and the transactional risks associated with acquisitions; the effect on our financial results by the financial results of
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.
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 Holdings, Inc. Consolidated Balance Sheets (Unaudited) |
||||||||||
| December 31, 2015 |
December 31, 2014 |
|||||||||
|
(In millions, except share and per |
||||||||||
| ASSETS | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 302.2 | $ | 444.1 | ||||||
| Accounts receivable | 233.0 | 197.0 | ||||||||
| Accounts receivable from related parties | 0.5 | — | ||||||||
| Inventories, net of lower of cost or market valuation | 307.6 | 469.6 | ||||||||
| Other current assets | 145.5 | 136.0 | ||||||||
| Total current assets | 988.8 | 1,246.7 | ||||||||
| Property, plant and equipment: | ||||||||||
| Property, plant and equipment | 2,100.1 | 1,952.9 | ||||||||
| Less: accumulated depreciation | (579.0 | ) | (509.6 | ) | ||||||
| Property, plant and equipment, net | 1,521.1 | 1,443.3 | ||||||||
| Goodwill | 74.4 | 73.9 | ||||||||
| Other intangibles, net | 27.3 | 21.4 | ||||||||
| Equity method investments | 605.2 | — | ||||||||
| Other non-current assets | 108.1 | 103.4 | ||||||||
| Total assets | $ | 3,324.9 | $ | 2,888.7 | ||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 397.6 | $ | 476.7 | ||||||
| Current portion of long-term debt and capital lease obligations | 95.2 | 55.7 | ||||||||
| Obligation under Supply and Offtake Agreement | 132.0 | 200.9 | ||||||||
| Accrued expenses and other current liabilities | 134.9 | 122.9 | ||||||||
| Total current liabilities | 759.7 | 856.2 | ||||||||
| Non-current liabilities: | ||||||||||
| Long-term debt and capital lease obligations, net of current portion | 880.5 | 531.6 | ||||||||
| Environmental liabilities, net of current portion | 7.9 | 8.5 | ||||||||
| Asset retirement obligations | 9.7 | 9.2 | ||||||||
| Deferred tax liabilities | 247.9 | 266.3 | ||||||||
| Other non-current liabilities | 65.3 | 18.5 | ||||||||
| Total non-current liabilities | 1,211.3 | 834.1 | ||||||||
| 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, 66,946,721 shares and 60,637,525 shares issued at December 31, 2015 and December 31, 2014, respectively | 0.7 | 0.6 | ||||||||
| Additional paid-in capital | 639.2 | 395.1 | ||||||||
| Accumulated other comprehensive loss | (45.3 | ) | (12.6 | ) | ||||||
| Treasury stock, 4,809,701 shares and 3,365,561 shares, at cost, as of December 31, 2015 and December 31, 2014, respectively | (154.8 | ) | (112.6 | ) | ||||||
| Retained earnings | 713.5 | 731.2 | ||||||||
| Non-controlling interest in subsidiaries | 200.6 | 196.7 | ||||||||
| Total stockholders’ equity | 1,353.9 | 1,198.4 | ||||||||
| Total liabilities and stockholders’ equity | $ | 3,324.9 | $ | 2,888.7 | ||||||
|
Delek US Holdings, Inc. Consolidated Statements of Income (Unaudited) |
||||||||||||||||||||
| Three Months Ended December 31, |
Year Ended December 31, | |||||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||||||
| (In millions, except share and per share data) | ||||||||||||||||||||
| Net sales | $ | 1,364.1 | $ | 1,761.7 | $ | 5,762.0 | $ | 8,324.3 | ||||||||||||
| Operating costs and expenses: | ||||||||||||||||||||
| Cost of goods sold | 1,215.7 | 1,528.4 | 5,015.6 | 7,315.2 | ||||||||||||||||
| Operating expenses | 102.6 | 97.2 | 406.6 | 398.8 | ||||||||||||||||
| General and administrative expenses | 24.9 | 35.8 | 126.0 | 133.4 | ||||||||||||||||
| Depreciation and amortization | 36.6 | 29.5 | 134.0 | 111.5 | ||||||||||||||||
| Other operating income, net | (0.7 | ) | (1.1 | ) | (0.9 | ) | (1.1 | ) | ||||||||||||
| Total operating costs and expenses | 1,379.1 | 1,689.8 | 5,681.3 | 7,957.8 | ||||||||||||||||
| Operating (loss) income | (15.0 | ) | 71.9 | 80.7 | 366.5 | |||||||||||||||
| Interest expense | 15.2 | 10.9 | 58.3 | 40.6 | ||||||||||||||||
| Interest income | (0.2 | ) | (0.4 | ) | (1.1 | ) | (0.8 | ) | ||||||||||||
| Loss (Income) from equity method investments | 21.9 | — | (2.0 | ) | — | |||||||||||||||
| Other income, net | (0.6 | ) | (0.8 | ) | (1.6 | ) | (0.9 | ) | ||||||||||||
| Total non-operating expenses, net | 36.3 | 9.7 | 53.6 | 38.9 | ||||||||||||||||
| (Loss) Income before income tax (benefit) expense | (51.3 | ) | 62.2 | 27.1 | 327.6 | |||||||||||||||
| Income tax (benefit) expense | (25.2 | ) | 16.9 | (16.6 | ) | 101.6 | ||||||||||||||
| Net (loss) income | (26.1 | ) | 45.3 | 43.7 | 226.0 | |||||||||||||||
| Net income attributed to non-controlling interest | 5.4 | 7.8 | 24.3 | 27.4 | ||||||||||||||||
| Net (loss) income attributable to Delek | $ | (31.5 | ) | $ | 37.5 | $ | 19.4 | $ | 198.6 | |||||||||||
| Basic & diluted (loss) earnings per share: | ||||||||||||||||||||
| Basic | $ | (0.51 | ) | $ | 0.65 | $ | 0.32 | $ | 3.38 | |||||||||||
| Diluted | $ | (0.51 | ) | $ | 0.64 | $ | 0.32 | $ | 3.35 | |||||||||||
| Weighted average common shares outstanding: | ||||||||||||||||||||
| Basic | 62,164,706 | 57,988,221 | 60,819,771 | 58,780,947 | ||||||||||||||||
| Diluted | 62,164,706 | 58,490,859 | 61,320,570 | 59,355,120 | ||||||||||||||||
| Dividends declared per common share outstanding | $ | 0.15 | $ | 0.25 | $ | 0.60 | $ | 1.00 | ||||||||||||
| Delek US Holdings, Inc. | |||||||||||||
| Consolidated Statements of Cash Flows | |||||||||||||
| (In millions) | |||||||||||||
| Year Ended December 31, | |||||||||||||
| 2015 | 2014 | ||||||||||||
| Cash Flow Data | (Unaudited) | ||||||||||||
| Net cash provided by operating activities | $ | 180.0 | $ | 329.8 | |||||||||
| Net cash used in investing activities | (460.4 | ) | (302.3 | ) | |||||||||
| Net cash provided by financing activities | 138.5 | 16.6 | |||||||||||
| Net (decrease) increase in cash and cash equivalents | $ | (141.9 | ) | $ | 44.1 | ||||||||
| Delek US Holdings, Inc. | |||||||||||||||||||||||||
| Segment Data (Unaudited) | |||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||
|
Three Months Ended |
|||||||||||||||||||||||||
| Refining | Logistics | Retail |
Corporate, |
Consolidated | |||||||||||||||||||||
| Net sales (excluding intercompany fees and sales) | $ | 944.9 | $ | 73.2 | $ | 345.4 | $ | 0.6 | $ | 1,364.1 | |||||||||||||||
| Intercompany fees and sales | 123.5 | 35.8 | — | (159.3 | ) | — | |||||||||||||||||||
| Operating costs and expenses: | |||||||||||||||||||||||||
| Cost of goods sold | 999.8 | 71.0 | 296.2 | (151.3 | ) | 1,215.7 | |||||||||||||||||||
| Operating expenses | 57.3 | 11.7 | 34.0 | (0.4 | ) | 102.6 | |||||||||||||||||||
| Segment contribution margin | $ | 11.3 | $ | 26.3 | $ | 15.2 | $ | (7.0 | ) | 45.8 | |||||||||||||||
| General and administrative expenses | 24.9 | ||||||||||||||||||||||||
| Depreciation and amortization | 36.6 | ||||||||||||||||||||||||
| Other operating income | (0.7 | ) | |||||||||||||||||||||||
| Operating loss | $ | (15.0 | ) | ||||||||||||||||||||||
| Total assets | $ | 1,895.7 | $ | 375.3 | $ | 445.0 | $ | 608.9 | $ | 3,324.9 | |||||||||||||||
| Capital spending (excluding business combinations) | $ | 17.7 | $ | 4.7 | $ | 10.0 | $ | 12.6 | $ | 45.0 | |||||||||||||||
|
Three Months Ended |
|||||||||||||||||||||||||
| Refining | Logistics | Retail |
Corporate, |
Consolidated | |||||||||||||||||||||
| Net sales (excluding intercompany fees and sales) | $ | 1,195.1 | $ | 142.8 | $ | 424.0 | $ | (0.2 | ) | $ | 1,761.7 | ||||||||||||||
| Intercompany fees and sales | 143.8 | 30.6 | — | (174.4 | ) | — | |||||||||||||||||||
| Operating costs and expenses: | |||||||||||||||||||||||||
| Cost of goods sold | 1,196.6 | 134.3 | 368.6 | (171.1 | ) | 1,528.4 | |||||||||||||||||||
| Operating expenses | 52.3 | 9.9 | 33.4 | 1.6 | 97.2 | ||||||||||||||||||||
| Segment contribution margin | $ | 90.0 | $ | 29.2 | $ | 22.0 | $ | (5.1 | ) | 136.1 | |||||||||||||||
| General and administrative expenses | 35.8 | ||||||||||||||||||||||||
| Depreciation and amortization | 29.5 | ||||||||||||||||||||||||
| Other operating income | (1.1 | ) | |||||||||||||||||||||||
| Operating income | $ | 71.9 | |||||||||||||||||||||||
| Total assets | $ | 1,937.7 | $ | 331.3 | $ | 447.1 | $ | 172.6 | $ | 2,888.7 | |||||||||||||||
| Capital spending (excluding business combinations) | $ | 43.9 | $ | 4.3 | $ | 6.2 | $ | 9.2 | $ | 63.6 | |||||||||||||||
| Delek US Holdings, Inc. | |||||||||||||||||||||||||
| Segment Data (Unaudited) | |||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||
|
Year Ended |
|||||||||||||||||||||||||
| Refining | Logistics | Retail |
Corporate, |
Consolidated | |||||||||||||||||||||
| Net sales (excluding intercompany fees and sales) | $ | 3,820.8 | $ | 447.0 | $ | 1,490.2 | $ | 4.0 | $ | 5,762.0 | |||||||||||||||
| Intercompany fees and sales | 619.4 | 142.7 | — | (762.1 | ) | — | |||||||||||||||||||
| Operating costs and expenses: | |||||||||||||||||||||||||
| Cost of goods sold | 4,022.2 | 436.3 | 1,288.9 | (731.8 | ) | 5,015.6 | |||||||||||||||||||
| Operating expenses | 225.4 | 44.9 | 137.6 | (1.3 | ) | 406.6 | |||||||||||||||||||
| Segment contribution margin | $ | 192.6 | $ | 108.5 | $ | 63.7 | $ | (25.0 | ) | $ | 339.8 | ||||||||||||||
| General and administrative expenses | 126.0 | ||||||||||||||||||||||||
| Depreciation and amortization | 134.0 | ||||||||||||||||||||||||
| Other operating income | (0.9 | ) | |||||||||||||||||||||||
| Operating income | $ | 80.7 | |||||||||||||||||||||||
| Capital spending (excluding business combinations) | $ | 164.5 | $ | 18.6 | $ | 18.3 | $ | 17.2 | $ | 218.6 | |||||||||||||||
|
Year Ended |
|||||||||||||||||||||||||
| Refining | Logistics | Retail |
Corporate, |
Consolidated | |||||||||||||||||||||
| Net sales (excluding intercompany fees and sales) | $ | 5,728.4 | $ | 726.7 | $ | 1,869.3 | $ | (0.1 | ) | $ | 8,324.3 | ||||||||||||||
| Intercompany fees and sales | 622.1 | 114.6 | — | (736.7 | ) | — | |||||||||||||||||||
| Operating costs and expenses: | |||||||||||||||||||||||||
| Cost of goods sold | 5,664.8 | 697.2 | 1,671.5 | (718.3 | ) | 7,315.2 | |||||||||||||||||||
| Operating expenses | 221.0 | 39.5 | 136.8 | 1.5 | 398.8 | ||||||||||||||||||||
| Segment contribution margin | $ | 464.7 | $ | 104.6 | $ | 61.0 | $ | (20.0 | ) | $ | 610.3 | ||||||||||||||
| General and administrative expenses | 133.4 | ||||||||||||||||||||||||
| Depreciation and amortization | 111.5 | ||||||||||||||||||||||||
| Other operating income | (1.1 | ) | |||||||||||||||||||||||
| Operating income | $ | 366.5 | |||||||||||||||||||||||
| Capital spending (excluding business combinations) | $ | 199.1 | $ | 9.2 | $ | 26.2 | $ | 22.4 | $ | 256.9 | |||||||||||||||
|
Refining Segment |
Three Months Ended |
Year Ended |
|||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||||||||
|
Tyler Refinery |
(Unaudited) | ||||||||||||||||||
| Days in period | 92 | 92 | 365 | 365 | |||||||||||||||
| Total sales volume (average barrels per day)(1) | 70,867 | 65,967 | 61,640 | 65,263 | |||||||||||||||
| Products manufactured (average barrels per day): | |||||||||||||||||||
| Gasoline | 38,981 | 38,376 | 32,637 | 35,829 | |||||||||||||||
| Diesel/Jet | 27,131 | 26,424 | 24,307 | 25,713 | |||||||||||||||
| Petrochemicals, LPG, NGLs | 1,865 | 1,646 | 2,402 | 2,264 | |||||||||||||||
| Other | 1,575 | 1,749 | 1,358 | 1,717 | |||||||||||||||
| Total production | 69,552 | 68,195 | 60,704 | 65,523 | |||||||||||||||
| Throughput (average barrels per day): | |||||||||||||||||||
| Crude oil | 63,930 | 58,728 | 56,099 | 58,756 | |||||||||||||||
| Other feedstocks | 6,035 | 10,549 | 5,393 | 7,811 | |||||||||||||||
| Total throughput | 69,965 | 69,277 | 61,492 | 66,567 | |||||||||||||||
| Per barrel of sales: | |||||||||||||||||||
| Tyler refining margin | $ | 5.39 | $ | 11.85 | $ | 8.79 | $ | 16.71 | |||||||||||
| Direct operating expenses | $ | 4.34 | $ | 4.25 | $ | 4.52 | $ | 4.41 | |||||||||||
|
El Dorado Refinery |
|||||||||||||||||||
| Days in period | 92 | 92 | 365 | 365 | |||||||||||||||
| Total sales volume (average barrels per day)(2) | 80,881 | 78,599 | 81,577 | 77,369 | |||||||||||||||
| Products manufactured (average barrels per day): | |||||||||||||||||||
| Gasoline | 44,263 | 40,264 | 40,578 | 35,960 | |||||||||||||||
| Diesel | 28,288 | 28,150 | 28,213 | 27,716 | |||||||||||||||
| Petrochemicals, LPG, NGLs | 565 | 398 | 640 | 701 | |||||||||||||||
| Asphalt | 4,524 | 6,639 | 6,516 | 6,024 | |||||||||||||||
| Other | 1,197 | 946 | 1,859 | 885 | |||||||||||||||
| Total production | 78,837 | 76,397 | 77,806 | 71,286 | |||||||||||||||
| Throughput (average barrels per day): | |||||||||||||||||||
| Crude oil | 73,578 | 69,654 | 74,062 | 66,723 | |||||||||||||||
| Other feedstocks | 7,216 | 7,787 | 5,358 | 6,229 | |||||||||||||||
| Total throughput | 80,794 | 77,441 | 79,420 | 72,952 | |||||||||||||||
| Per barrel of sales: | |||||||||||||||||||
| El Dorado refining margin | $ | 3.01 | $ | 8.56 | $ | 7.10 | $ | 9.54 | |||||||||||
| Direct operating expenses | $ | 3.73 | $ | 3.52 | $ | 3.97 | $ | 3.94 | |||||||||||
|
Pricing statistics (average for the period presented): |
|||||||||||||||||||
| WTI — Cushing crude oil (per barrel) | $ | 42.15 | $ | 73.02 | $ | 48.84 | $ | 92.94 | |||||||||||
| WTI — Midland crude oil (per barrel) | $ | 41.74 | $ | 70.24 | $ | 48.54 | $ | 86.35 | |||||||||||
| US Gulf Coast 5-3-2 crack spread (per barrel) | $ | 8.78 | $ | 6.59 | $ | 14.68 | $ | 13.42 | |||||||||||
| US Gulf Coast Unleaded Gasoline (per gallon) | $ | 1.23 | $ | 1.81 | $ | 1.55 | $ | 2.49 | |||||||||||
| Ultra low sulfur diesel (per gallon) | $ | 1.29 | $ | 2.20 | $ | 1.58 | $ | 2.71 | |||||||||||
| Natural gas (per MMBTU) | $ | 2.11 | $ | 3.75 | $ | 2.61 | $ | 4.36 | |||||||||||
|
(1) |
Sales volume includes 3,139 bpd and 3,693 bpd sold to the logistics segment during the three months and year ended December 31, 2015 and 1,033 bpd and 1,096 bpd in the three months and year ended December 31, 2014, respectively. Sales volume also includes sales of 0 bpd and 1,800 bpd of intermediate and finished products to the El Dorado refinery during the three months and year ended December 31, 2015 and 2,071 bpd and 3,324 bpd of intermediate and finished products to the El Dorado refinery in the three months and year ended December 31, 2014, respectively. Sales volume excludes 2 bpd and 1,635 bpd of wholesale activity during the three months and year ended December 31, 2015, respectively. There was no wholesale activity during the three months and year ended December 31, 2014. | |
|
(2) |
Sales volume includes 3,702 bpd and 3,683 bpd of produced finished product sold to the retail segment during the three months and year ended December 31, 2015, respectively, and 4,102 bpd and 3,696 bpd during the three months and year ended December 31, 2014, respectively. Sales volume also includes 358 bpd and 1,744 bpd of produced finished product sold to the Tyler refinery during the three months and year ended December 31, 2015, respectively, and 2,178 bpd and 1,609 bpd during the three months and year ended December 31, 2014, respectively. Sales volume excludes 34,454 bpd and 28,057 bpd of wholesale activity during the three months and year ended December 31, 2015, respectively, and 15,395 bpd and 13,842 bpd of wholesale activity during the three months and year ended December 31, 2014, 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 |
Year Ended |
|||||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Tyler (4) | ||||||||||||||||||||
| Reported refining margin, $ per barrel | $ | 5.39 | $ | 11.85 | $ | 8.79 | $ | 16.71 | ||||||||||||
|
Adjustments: |
||||||||||||||||||||
| Lower of cost or market charge (gain) | 0.76 | 8.87 | (0.24 | ) | 2.31 | |||||||||||||||
| Hedging loss (gain) | (0.16 | ) | (4.50 | ) | 0.22 | (3.00 | ) | |||||||||||||
| Renewable bio credit allocated to refinery | 0.67 | 0.60 | 0.19 | 0.15 | ||||||||||||||||
| Other inventory loss (gain) | 0.76 | (2.32 | ) | 1.08 | (0.10 | ) | ||||||||||||||
| Adjusted refining margin $/bbl | $ | 7.42 | $ | 14.50 | $ | 10.04 | $ | 16.07 | ||||||||||||
| El Dorado (5) | ||||||||||||||||||||
| Reported refining margin, $ per barrel | $ | 3.01 | $ | 8.56 | $ | 7.10 | $ | 9.54 | ||||||||||||
|
Adjustments: |
||||||||||||||||||||
| Lower of cost or market charge (gain) | 0.10 | 1.94 | 0.03 | 0.50 | ||||||||||||||||
| Hedging loss (gain) | 0.41 | (4.43 | ) | 0.19 | (2.03 | ) | ||||||||||||||
| Renewable bio credit allocated to refinery | 0.67 | 0.60 | 0.17 | 0.15 | ||||||||||||||||
| Other inventory loss | 0.40 | 0.74 | 0.89 | 1.75 | ||||||||||||||||
| Adjusted refining margin $/bbl | $ | 4.59 | $ | 7.41 | $ | 8.38 | $ | 9.91 | ||||||||||||
|
(3) |
Adjusted refining margin per barrel is presented to provide a measure to evaluate performance excluding inventory, hedging (realized and unrealized) and other items. Delek US believes that the presentation of adjusted measures provide useful information to investors in assessing its results of operations. 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. | |
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(4) |
Tyler adjusted refining margins exclude the following items. | |
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Lower of cost or market (“LCM”) valuation - Approximately $(5.0) million and $(53.8) million of LCM valuation charges in the fourth quarter 2015 and 2014, respectively. The LCM valuation was a benefit of $5.5 million and a charge of $(55.0) million for 2015 and 2014, respectively. |
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Hedging affect - Total hedging gains of $1.0 million and $27.3 million occurred in the fourth quarter of 2015 and 2014, respectively. Total hedging was a loss of $(5.0) million and a gain of $71.4 million in 2015 and 2014, respectively. |
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Bio-diesel tax credit allocation - In the fourth quarter 2015 and 2014, as well as on an annual basis for 2015 and 2014, approximately $4.3 million and $3.7 million, respectively, related to the annual amount for a $1 per gallon bio-diesel tax credit that is included in the renewable portion of the refining segment was allocated to Tyler. |
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Other inventory - A charge of $(5.0) million and a benefit of $14.1 million in the fourth quarter 2015 and 2015, respectively. The other inventory effect was a charge of $(24.3) million and a benefit of $2.5 million in 2015 and 2014, respectively. This amount consists of last-in-first-out inventory valuation charge or benefit in the respective period. |
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(5) |
El Dorado adjusted refining margins exclude the following items. |
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Lower of cost or market (“LCM”) valuation - Approximately $(0.8) million and $(14.0) million of LCM valuation charges in the fourth quarter 2015 and 2014, respectively. The LCM valuation charge was $(0.8) million and $(14.0) million for 2015 and 2014, respectively. |
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Hedging affect - The total hedging affect was a loss of $(3.0) million and a gain of $32.0 million in the fourth quarter 2015 and 2014, respectively. Total hedging was a loss of $(5.7) million and a gain of $57.3 million in 2015 and 2014, respectively. |
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Bio-diesel tax credit allocation -In the fourth quarter 2015 and 2014, as well as on an annual basis for 2015 and 2014, approximately $5.0 million and $4.3 million, respectively, related to the annual amount for a $1 per gallon bio-diesel tax credit that is included in the renewable portion of the refining segment was allocated to El Dorado. |
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Other inventory - A charge of $(3.0) million and $(5.3) million in the fourth quarter 2015 and 2014, respectively. The other inventory effect was a charge of $(26.5) million and $(49.5) million in 2015 and 2014, respectively. This amount consists of first-in-first-out inventory valuation charge or benefit in the respective period. |
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Logistics Segment |
Three Months Ended |
Year Ended |
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| 2015 | 2014 | 2015 | 2014 | ||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| Pipelines & Transportation: (average bpd) | |||||||||||||||||||
| Lion Pipeline System: | |||||||||||||||||||
| Crude pipelines (non-gathered) | 54,342 | 50,303 | 54,960 | 47,906 | |||||||||||||||
| Refined products pipelines to Enterprise Systems | 60,549 | 56,343 | 57,366 | 53,461 | |||||||||||||||
| SALA Gathering System | 19,741 | 23,949 | 20,673 | 22,656 | |||||||||||||||
| East Texas Crude Logistics System | 8,613 | 10,863 | 18,828 | 7,361 | |||||||||||||||
| El Dorado Rail Offloading Rack | — | — | 981 | — | |||||||||||||||
| Wholesale Marketing & Terminalling: | |||||||||||||||||||
| East Texas - Tyler Refinery sales volumes (average bpd)(6) | 66,950 | 62,172 | 59,174 | 61,368 | |||||||||||||||
| West Texas marketing throughputs (average bpd) | 12,488 | 15,441 | 16,357 | 16,707 | |||||||||||||||
| West Texas marketing margin per barrel | $ | 1.05 | $ | 6.36 | $ | 1.35 | $ | 4.67 | |||||||||||
| Terminalling throughputs (average bpd)(7) | 114,136 | 100,396 | 106,514 | 96,801 | |||||||||||||||
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(6) |
Excludes jet fuel and petroleum coke | |
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(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. Throughputs at the El Dorado, Arkansas terminal are for the period from February 10, 2014 through December 31, 2015. Prior to February 10, 2014, the logistics segment did not record revenue for throughput at the El Dorado, Arkansas terminal. Throughputs for the Mount Pleasant Terminal are following its acquisition on October 1, 2014. Barrels per day are calculated for only the days we operated each terminal. | |
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Retail Segment |
Three Months Ended |
Year Ended |
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| 2015 | 2014 | 2015 | 2014 | |||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Number of stores (end of period) | 358 | 365 | 358 | 365 | ||||||||||||||||
| Average number of stores | 355 | 367 | 359 | 363 | ||||||||||||||||
| Retail fuel sales (thousands of gallons) | 114,676 | 113,562 | 457,432 | 436,895 | ||||||||||||||||
| Average retail gallons per average number of stores (in thousands) | 323 | 309 | 1,274 | 1,204 | ||||||||||||||||
| Retail fuel margin ($ per gallon) | $ | 0.172 | $ | 0.238 | $ | 0.177 | $ | 0.190 | ||||||||||||
| Merchandise sales (in thousands) | $ | 104,585 | $ | 101,284 | $ | 419,671 | $ | 401,420 | ||||||||||||
| Merchandise margin % | 27.6 | % | 27.5 | % | 28.1 | % | 28.0 | % | ||||||||||||
| Change in same-store fuel gallons sold | 1.5 | % | 3.5 | % | 2.3 | % | 0.1 | % | ||||||||||||
| Change in same-store merchandise sales | 4.3 | % | 4.3 | % | 3.8 | % | 3.4 | % | ||||||||||||
| Delek US Holdings, Inc. | ||||||||||||||||||||
| Reconciliation of Amounts Reported Under U.S. GAAP | ||||||||||||||||||||
| $ in millions, except per share data | ||||||||||||||||||||
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Three Months Ended |
Year Ended |
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| Reconciliation of Net Income to Adjusted Income | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||||||
| Net (Loss) Income attributable to Delek | $ | (31.5 | ) | $ | 37.5 | $ | 19.4 | $ | 198.6 | |||||||||||
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Adjustments, after tax(8) |
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| Lower of cost or market inventory valuation charge (gain) | 4.0 | 44.5 | (2.8 | ) | 45.2 | |||||||||||||||
| Alon goodwill impairment | 12.2 | — | 12.2 | — | ||||||||||||||||
| Tyler asset impairment | 1.4 | — | 1.4 | — | ||||||||||||||||
| Unrealized hedging loss (gain) | 9.7 | (11.8 | ) | 30.3 | (32.2 | ) | ||||||||||||||
| Total adjustments | $ | 27.2 | $ | 32.6 | $ | 41.0 | $ | 13.0 | ||||||||||||
| Adjusted net (loss) income | $ | (4.3 | ) | $ | 70.1 | $ | 60.4 | $ | 211.6 | |||||||||||
| Reported (loss) earnings per share | $ | (0.51 | ) | $ | 0.64 | $ | 0.32 | $ | 3.35 | |||||||||||
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Adjustments, after tax (per share)(8) |
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| Lower of cost or market inventory valuation charge (gain) | 0.06 | 0.76 | (0.05 | ) | 0.76 | |||||||||||||||
| Alon goodwill impairment | 0.20 | — | 0.20 | — | ||||||||||||||||
| Tyler asset impairment | 0.02 | — | 0.02 | — | ||||||||||||||||
| Unrealized hedging loss (gain) | 0.16 | (0.20 | ) | 0.49 | (0.54 | ) | ||||||||||||||
| Total adjustments | 0.44 | 0.56 | 0.66 | 0.22 | ||||||||||||||||
| Adjusted net (loss) income per share | $ | (0.07 | ) | $ | 1.20 | $ | 0.98 | $ | 3.57 | |||||||||||
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(8) |
A marginal income tax rate of 35 percent was applied to the adjusted items in the calculation of adjusted net income (loss) in all periods. |
View source version on businesswire.com: http://www.businesswire.com/news/home/20160225006755/en/
Source:
Delek US Holdings, Inc.
Keith Johnson, 615-435-1366
Vice President of Investor Relations
or
Alpha IR Group
Chris Hodges, 312-445-2870
Founder & CEO