Michail Paraskevopoulos's questions to Delek US Holdings Inc (DK) leadership • Q1 2025
Question
Michail Paraskevopoulos, on behalf of Wolfe Research, asked about the Enterprise Optimization Plan (EOP), questioning if there is potential upside beyond the $120 million target and whether the refining business can generate sustainable free cash flow after the EOP is fully implemented.
Answer
President and CEO Avigal Soreq strongly hinted at upside to the EOP target, suggesting new guidance could be forthcoming. CFO Mark Hobbs addressed free cash flow, explaining that with heavy, growth-oriented CapEx weighted to the first half of 2025 and EOP benefits accelerating with minimal spend in the second half, the company is well-positioned for strong free cash flow generation.