Alexia Patrick's questions to Delek US Holdings Inc (DK) leadership • Q1 2025
Question
Alexia Patrick of BofA Securities inquired about the full-year EBITDA guidance for Delek Logistics (DKL), the impact of Permian activity, and Delek's broader capital return strategy, including dividend sustainability and the balance between share repurchases and deleveraging.
Answer
Avigal Soreq, President and CEO, affirmed the DKL guidance, citing strong performance from water acquisitions and a unique competitive position in the Delaware Basin with sour gas capabilities. Regarding capital allocation, Soreq emphasized that the Enterprise Optimization Plan (EOP) is driving free cash flow, enabling a balanced approach to shareholder returns. He noted a strong conviction in the value of the company's shares, leading to counter-cyclical buybacks.