Executive Summary

Q4 2024 was weak on refining but solid in midstream: revenue fell to $2.37B as crack spreads compressed and Krotz Springs turnaround weighed; reported EPS was $(6.55) driven by a $212.2M goodwill impairment; Adjusted EPS was $(2.54) and Adjusted EBITDA was $(23.2)M .
Logistics delivered record performance: segment Adjusted EBITDA rose to $107.2M (vs. $99.4M LY; $106.1M in Q3), buoyed by Delaware Gathering, rate increases, W2W dropdown and H2O Midstream contribution .
Strategic actions advance “sum-of-the-parts”: EOP now expected at the high end of $80–$120M run-rate (~$120M) in 2H’25; DKL initiated 2025 Adjusted EBITDA guidance of $480–$520M and authorized up to $150M in DKL unit repurchases from DK, aiding deconsolidation efforts .
Q1 2025 outlook points to throughput ramp (notably at Krotz Springs post-turnaround) and higher OpEx driven by Gravity consolidation, throughput, nat gas prices and maintenance; mgmt emphasized cost discipline and EOP delivery .

What Went Well and What Went Wrong

What Went Well
- Logistics strength and diversification: Logistics Adjusted EBITDA reached $107.2M, up year-on-year, aided by Delaware Gathering, annual rate increases, W2W dropdown and H2O Midstream close in September .
- EOP momentum and guidance: “We… now expect to be at the high end of original target run-rate in 2H'2025,” with a $120M target for cash flow improvement (vs. original $80–$120M) .
- Strategic separation and capital framework: DKL 2025 EBITDA guidance of $480–$520M and a $150M DKL unit repurchase authorization from DK; mgmt reiterated commitment to dividends and buybacks (“we are doing buybacks at Q1 of 2025”) while progressing deconsolidation .
What Went Wrong
- Refining underperformance: Refining Adjusted EBITDA was $(69.6)M (vs. $(4.4)M LY; $10.2M in Q3), driven by lower crack spreads and Krotz Springs turnaround; total refining production margin per bbl fell to $3.71 (vs. $6.86 LY; $4.88 in Q3) .
- Supply & marketing headwinds: Q4 “Supply, marketing and other” was a $(34.6)M loss, including ~$12M wholesale weakness (seasonal demand) and $(22)M supply impact, though management noted Y/Y improvement vs. Q4’23 .
- Non-cash impairment and cash burn: $212.2M goodwill impairment drove GAAP loss; cash from operations was $(163.5)M (including $(71.1)M unfavorable working capital movements) .

Financial Results

Metric	Q4 2023	Q3 2024	Q4 2024
Revenue ($USD Millions)	$3,942.1	$3,042.4	$2,373.7
Diluted EPS (GAAP) ($)	$(2.57)	$(1.20)	$(6.55)
Adjusted EPS ($)	$(1.46)	$(1.45)	$(2.54)
Adjusted EBITDA ($USD Millions)	$60.6	$70.6	$(23.2)
Cash from Ops ($USD Millions)	—	$(21.6)	$(163.5)
Cash & Equivalents ($USD Millions)	$821.8 (12/31/23)	$1,037.6 (9/30/24)	$735.6 (12/31/24)
Net Debt (Consolidated) ($USD Millions)	$1,778.0 (12/31/23)	$1,751.8 (9/30/24)	$2,029.6 (12/31/24)

Segment Adjusted EBITDA ($USD Millions)

Segment	Q4 2023	Q3 2024	Q4 2024
Refining	$(4.4)	$10.2	$(69.6)
Logistics	$99.4	$106.1	$107.2
Corporate/Other	$(43.8)	$(53.9)	$(60.3)
Consolidated	$51.2	$62.4	$(22.7) (from cont. ops)

Refining KPIs

KPI	Q4 2023	Q3 2024	Q4 2024
Total Throughput (bpd)	306,406	307,595	266,516
Production Margin ($/bbl)	$6.86	$4.88	$3.71
OpEx ($/bbl)	$5.62	$5.12	$5.46

Per-Refinery Production Margin ($/bbl), Q4 2024

Tyler	El Dorado	Big Spring	Krotz Springs
$6.66	$0.56	$5.04	$2.71

Notes: Q4 GAAP net loss includes $212.2M goodwill impairment; other non-GAAP adjustments include “other inventory impact,” restructuring costs, and unrealized RINs hedging .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Enterprise Optimization Plan (cash flow improvement run-rate)	2H 2025	$80–$120M (original range)	~$120M (high end)	Raised to high end
DKL Adjusted EBITDA	FY 2025	N/A	$480–$520M	New
DKL unit buyback authorization (from DK)	Through 2026	N/A	Up to $150M	New
DK Dividend	Ongoing	$0.255/share (Oct 2024)	$0.255/share (declared Feb 18, 2025)	Maintained
Q1 2025 Operating Expenses	Q1 2025	N/A	$220–$235M	New
Q1 2025 G&A	Q1 2025	N/A	$55–$60M	New
Q1 2025 D&A	Q1 2025	N/A	$100–$105M	New
Q1 2025 Net Interest	Q1 2025	N/A	$78–$88M	New
Q1 2025 Total Throughput (bpd)	Q1 2025	N/A	278–292k; by refinery: Tyler 65–69k; El Dorado 73–76k; Big Spring 57–61k; Krotz Springs 83–86k	New

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 & Q3 2024)	Current Period (Q4 2024)	Trend
EOP/cost actions	ZBB $100M completed ahead of schedule; EOP introduced to add $80–$120M run-rate starting 2H’25	Expect high end of range (~$120M) in 2H’25; “confident” in progress	Improving/raising target
DKL deconsolidation	“Deconsolidation ready”; W2W drop-down, H2O Midstream, gas plant FID; path to 2/3 third-party EBITDA	“Deconsolidation… is happening”; DKL unit buyback tool to accelerate separation	Accelerating separation
Refining ops	Q2: record throughput (316 kbpd); Big Spring reliability improving; El Dorado lagging margins	Krotz Springs turnaround completed; Q1 ramp planned; per-site Q4 margins: Tyler $6.66, Big Spring $5.04, El Dorado $0.56, KS $2.71	Mixed: KS recovery, El Dorado targeted fixes
Supply & marketing	Q2: $(34)M loss; Midwest demand and asphalt weakness	Q4: $(34.6)M loss; seasonal wholesale weakness; better than Q4’23 by ~$10M; focus on optimization	Stabilizing with improvements
Regulatory (RFS/SRE)	Court overturned EPA denial; watching SRE path	Optimistic EPA will grant SREs; cites Chevron deference ruling	Potential positive optionality

Management Commentary

“We… now expect to be at the high end of original target run-rate in 2H'2025” for EOP cash flow improvements .
“Deconsolidation… is happening and will happen as we speak… we also increased the distribution that DK gets from DKL… announced… buyback… up to $150 million” of DKL units from DK .
“In Krotz Springs… we have demonstrated improved crude capacity, product mix and liquid yield… planned throughput for the first quarter is in the 83,000 to 86,000 barrels per day range” .
On El Dorado: “asset is the most significant beneficiary of our EOP… $50 million of low-hanging fruits… confident about our ability to translate this progress to numbers sooner than later” .
OpEx bridge for Q1: Gravity consolidation, higher throughput, higher natural gas, and planned Big Spring maintenance explain the guidance step-up .

Q&A Highlights

El Dorado improvement roadmap: $50M EOP at El Dorado focused on product slate (more jet), converting heavy bottoms to light products, logistics to new markets, and yield recovery (reformer, FCC, asphalt) .
Deconsolidation strategy and capital tools: DKL growth via bolt-ons (H2O, Gravity), organic (gas plant, sour gas/AGI), and the $150M DKL unit buyback authorization to facilitate tax-efficient separation while benefiting DKL FCF .
Supply/marketing seasonality: Q4 DKTS loss driven by seasonal inland demand weakness; management highlighted ~$10M Y/Y improvement and ongoing optimization to support 2025 EOP .
OpEx guidance clarity: Q1 OpEx higher due to Gravity consolidation, higher throughput, elevated nat gas, and planned maintenance (Big Spring) .
Capital allocation: Maintain dividend; active buybacks into Q1’25 at current valuation; balanced approach to balance sheet and repurchases .

Estimates Context

We attempted to retrieve S&P Global (Capital IQ) consensus estimates for EPS and revenue (Q2–Q4 2024) but hit a daily request limit; as a result, we cannot present vs-consensus “beat/miss” analytics for Q4 this time. We will update once access resumes.
Based on reported results, Adjusted EPS $(2.54) and revenue $2.374B provide the baseline for future comparison to Street expectations .

Key Takeaways for Investors

Logistics resilience offsets refining volatility: DKL continues to compound, with 2025 EBITDA guided to $480–$520M and >70% third-party mix underpinning multiple expansion potential and DK’s SOTP thesis .
Near-term refining headwinds but improving setup: Krotz Springs turnaround behind the company with Q1 ramp; El Dorado targeted $50M EOP-driven uplift; Tyler/Big Spring margins remained comparatively stronger in Q4 .
EOP is the core 2025 catalyst: With EOP now targeted at the high end (~$120M), cost/margin actions should lower breakeven and support stronger FCF in 2H’25 .
Deconsolidation path is clearer: DKL unit buyback authorization, bolt-on acquisitions (H2O, Gravity), and organic projects (gas plant, AGI) are practical steps to accelerate economic separation with tax efficiency .
Liquidity and leverage: Year-end cash of $735.6M and consolidated net debt $2.03B (DK ex-DKL net debt ~$160M) provide flexibility, though Q4 cash burn and higher consolidated net debt warrant monitoring pending EOP and refining recovery .
Dividend maintained and buybacks ongoing: $0.255 quarterly dividend reaffirmed; mgmt executing repurchases into Q1’25, signaling confidence in intrinsic value .
Watch Q1 execution: Throughput ramp (esp. KS), OpEx discipline amid Gravity consolidation and nat gas, and progress on El Dorado EOP are the near-term stock drivers .

Additional Q4 2024 Press Releases and Disclosures

Dividend declaration: $0.255 per share quarterly dividend payable March 10, 2025 (record date March 3, 2025) .
DKL Gravity Water Midstream closing: $285M consideration (~$200M cash + ~2.175M DKL units) closed Jan 2, 2025, enhancing water midstream scale and third-party mix .
Slides highlight 1Q25 guidance and DKL’s 2025 EBITDA guide; also AGI FID at Libby plant and additional Midland acreage dedications .

All figures and statements are sourced from Delek’s SEC filings, earnings materials, and transcripts as cited above.

Delek US Holdings, Inc. (DK)·Q4 2024 Earnings Summary