Delek US 8-K Results of Operations and Financial Condition

Exhibit 99.1

Delek US Holdings Reports Second-Quarter Earnings
•     Record Quarterly Net Income of $42.2 Million
•     Earnings per Share of $0.88

FRANKLIN, Tenn. (August 9, 2006) — Delek US Holdings, Inc. (NYSE: DK) today announced results for the second quarter and six months ended June 30, 2006. Net income rose to a record $42.2 million, or $0.88 per diluted share, for the second quarter 2006 from $6.9 million, or $0.17 per diluted share, for the second quarter 2005. Net sales for the quarter increased 78% to $819.6 million compared with $459.7 million for the second quarter of 2005.

     Uzi Yemin, President and Chief Executive Officer of Delek US, remarked, “We achieved outstanding financial and operating results for the second quarter of 2006. We were especially pleased by the strong operational execution in both our businesses. In refining, this performance included a record for total sales volume, which reached 57,036 average barrels per day, an increase of 17.7% from the second quarter of 2005 and a 5.1% increase from the first quarter of 2006. The strength of our retail operations can be measured in the 4.0% growth in same-store merchandise sales, an improved merchandise margin and the expansion of our retail fuel margin to $0.161 per gallon, despite the significant rise in retail fuel prices compared with the second quarter of 2005.”

     Refining Segment:The refining segment contribution margin increased to $67.6 million for the second quarter of 2006 from $11.8 million for the second quarter of 2005. A primary contributor to this growth was the 115.6% increase in the refinery operating gross margin to $16.34 per barrel for the second quarter of 2006, which was 106.2% of the U.S. Gulf Coast 5-3-2 crack spread, from $7.58 per barrel for the second quarter of 2005, which was 88.4% of the crack spread. In addition, direct operating expenses for the second quarter of 2006 were $3.31 per barrel, down from $3.71 for the second quarter of 2005. This decline reflected improved operating efficiencies associated with a 9.7% increase in total throughput for the latest quarter to 57,342 average barrels per day, as well as a decrease in the cost of natural gas used in the refining process.

     The refining segment produced net sales of $454.1 million by selling 5.2 million barrels of refined product compared with $190.1 million on the sale of 3.1 million barrels for the second quarter of 2005. This growth reflected the 17.7% increase in total sales volume to 57,036 barrels per day, as well as a full quarter’s operating activity in 2006 as compared to a partial quarter’s activity in 2005 due to the April acquisition of the refinery.

     Retail Segment:The retail segment contribution margin for the second quarter of 2006 was $15.2 million. The contribution margin reflected the 9.1% increase in the segment’s merchandise sales for the second quarter of 2006, to $82.4 million from $75.5 for the second quarter of 2005, and included a 4.0% increase in same-store sales for the quarter. In addition, the number of convenience stores in operation increased to 349 at the quarter end from 329 at the same time in 2005. The merchandise margin increased to 30.8% for the second quarter of 2006 from 30.2% and 30.5% on a comparable-quarter and sequential-quarter basis. This improvement was primarily the result of increased sales of higher margin items, such as food, coffee and fountain drinks, as well as the Company’s proprietary GrilleMarx^TM branded food offerings that were introduced in the first quarter of 2006.

     The retail segment’s total fuel sales for the second quarter of 2006 increased 45.9% to $283.2 million from $194.1 million for the second quarter of 2006, primarily because of the 31.0% increase in the average retail price per gallon of fuel to $2.75 for the latest quarter from $2.10 for the second quarter last year. The increase in the number of convenience stores in operation accounted for substantially all of the comparable-quarter growth in retail fuel sales, to 95.2 million gallons from 86.0 million, as the rapid increase in fuel costs held same-store gallons sold fairly constant compared to the 2005 second quarter. The retail fuel margin rose to $0.161 per gallon for the second quarter of 2006 from $0.155 per gallon for the second quarter of 2005.

     In spite of increased merchandise and retail fuel margins for the second quarter, the retail segment’s contribution margin reflected increased credit card expenses, which rose $1.3 million, or 62.8%, due primarily to higher fuel prices as well as increases in interchange fees charged by several credit card

providers. Furthermore, the retail segment increased self-insurance reserves for workers’ compensation and general liability claims by approximately $1.0 million for the second quarter of 2006, as a result of certain large claims incurred in first six months of 2006.

     Yemin added, “In addition to our strong operating performance for the second quarter, we also continued to build the foundation for future growth by signing two definitive purchase agreements during the quarter, which were consummated in the third quarter. Through one of the transactions, we purchased terminal operations in new markets in west Texas, expanding our wholesale refined products distribution business, and we obtained equipment that we expect will enhance our refinery productivity in Tyler. Through the other transaction, we added 43 retail fuel and convenience stores in northwest Georgia and southeast Tennessee, which complement our leading market positions in middle Tennessee and northern Alabama. During the second quarter, we also opened two additional MAPCO Marts, our next-generation convenience store concept, and re-opened one retro-fitted convenience store.

     “As illustrated by our second-quarter performance, we are committed to expanding both of the Company’s businesses through organic growth and acquisitions. In our refining business, we will continue to leverage the attractive niche market in which we operate the Tyler facility through ongoing investments to upgrade the capacity, efficiency and complexity of the operation. In our retail fuel and convenience store business, we are fully engaged in initiatives to expand same-store sales and achieve enhanced profitability within our existing store base. We also remain confident of the ongoing potential for attractive acquisitions within our existing geographic foot-print or in contiguous markets. As a result, we are optimistic about Delek US’s prospects for long-term profitable growth.”

     Conference Call:Delek US will hold a conference call to discuss this release today at 10:30 a.m. Eastern time. Investors will have the opportunity to listen to the conference call live over the Internet by going towww.delekus.com and clicking Investor Relations, or by going towww.earnings.com, at least 15 minutes early to register, download and install any necessary audio software. For those who cannot listen to the live broadcast, a telephonic replay will be available for one week at 719/457-0820, code 3432013, and the replay will also be available on the Company’s Web site for 90 days.

     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 our current estimates, expectations and projections about our 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 hereby cautioned that the following important factors, among others, may affect these forward-looking statements. These factors include but are not limited to: our competitive position and the effects of competition; the projected growth of the industry in which we operate; changes in the scope, costs, and/or timing of capital projects; management’s ability to execute its strategy of growth through acquisitions and transactional risks in acquisitions; general economic and business conditions, particularly levels of spending relating to travel and tourism or conditions affecting the southeastern United States; potential conflicts of interest between Delek US’s major stockholder and other stockholders; and other risks contained in our filings with the Securities and Exchange Commission.

     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. Delek US undertakes no obligation to update or revise any such forward-looking statements.

     About the Company:Delek US Holdings, Inc. is a diversified energy business focused on petroleum refining and supply and on retail marketing. The Company’s business consists of two main operating segments: refining and retail. The refining segment operates a high conversion, independent refinery, with a design crude distillation capacity of 60,000 barrels per day, in Tyler, Texas. The retail segment markets gasoline, diesel and other refined petroleum products and convenience merchandise through a network of 389 company-operated retail fuel and convenience stores, operated under the MAPCO Express^®, MAPCO Mart,™ East Coast^® and Discount Food Mart™ brand names.

Investor Relations Contact:
Assi Ginzburg	Scott Brittain
Vice President of Strategic Planning	Kristina Korte
Delek US Holdings, Inc.	Corporate Communications Inc.
615/224-1179	615-254-3376
U.S. Media Contact:	Israel Media Contact:
Paula Lovell	Lior Chorev
Lovell Communications Inc.	Arad Communications
615-297-7766	011-972-3-644-0404
615-972-2964 (Cell)

DELEK US HOLDINGS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands, except share and per share data)

	June 30,			December 31,
	2006			2005
Assets
Current assets:
Cash and cash equivalents	$	95,035		$	62,568
Short-term investments		108,195			26,586
Accounts receivable		87,584			52,968
Inventory		114,875			101,294
Other current assets		7,032			8,405
Total current assets		412,721		��	251,821
Property, plant and equipment:
Property, plant and equipment		360,562			317,118
Less: accumulated depreciation		(55,602	)		(46,523	)
Total property, plant and equipment, net		304,960			270,595
Goodwill		63,711			63,711
Note receivable from a related party		—			200
Other noncurrent assets		22,038			19,833
Total assets	$	803,430		$	606,160
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	29,918		$	35,392
Account payable to a related party		122			—
Fuel payable		128,950			109,154
Current portion of long-term debt		1,530			1,696
Interest payable		1,520			1,870
Related party interest payable		—			2,870
Other taxes payable		12,468			11,760
Accrued employee costs		4,520			4,649
Income taxes payable		14,430			202
Accrued expenses and other current liabilities		8,169			8,221
Total current liabilities		201,627			175,814
Noncurrent liabilities:
Long-term debt, net of current portion		211,361			224,559
Notes payable to related parties		—			42,500
Accrued lease liability		4,072			3,754
Deferred revenue, net of current portion		1,242			1,434
Asset retirement obligations		3,598			3,393
Deferred tax liabilities		30,611			27,530
Other noncurrent liabilities		7,206			7,306
Total noncurrent liabilities		258,090			310,476
Shareholders’ equity:
Preferred stock, $0.01 par value, 10,000,000 shares authorized, 0 shares issued and outstanding		—			—
Common stock, $0.01 par value, 110,000,000 shares authorized, 50,889,869 shares and 39,389,869 shares issued and outstanding, respectively		509			394
Additional paid-in capital		209,392			40,727
Retained earnings		133,812			78,749
Total shareholders’ equity		343,713			119,870
Total liabilities and shareholders’ equity	$	803,430		$	606,160

DELEK US HOLDINGS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands, except share and per share data)

	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2006			2005			2006			2005
Net sales	$	819,590		$	459,707		$	1,479,349		$	688,794
Operating costs and expenses:
Cost of goods sold		693,346			399,865			1,276,659			598,311
Operating expenses		43,399			32,307			84,085			53,298
General and administrative expenses		10,177			5,648			17,139			9,632
Depreciation and amortization		4,710			3,714			9,082			7,167
Loss (gain) on disposal of assets		1			(2,182	)		1			(2,182	)
Losses on forward contract activities		—			—			54			—
		751,633			439,352			1,387,020			666,226
Operating income		67,957			20,355			92,329			22,568
Interest expense		5,748			4,084			11,639			6,327
Interest income		(1,652	)		(13	)		(2,545	)		(25	)
Deferred finance cost written off in connection with refinance		—			3,466			—			3,466
Interest expense to related parties		339			1,012			1,019			1,435
(Gain) loss on interest rate derivative instruments		(593	)		1,123			(1,524	)		1
Guarantee fees to related parties		62			125			210			125
		3,904			9,797			8,799			11,329
Income before income tax expense and cumulative effect of change in accounting policy		64,053			10,558			83,530			11,239
Income tax expense		21,859			3,695			28,467			3,944
Income before cumulative effect of change in accounting policy		42,194			6,863			55,063			7,295
Cumulative effect of change in accounting policy, net		—			—			—			267
Net income	$	42,194		$	6,863		$	55,063		$	7,028
Basic earnings per share:
Income before cumulative effect of change in accounting policy	$	0.90		$	0.17		$	1.27		$	0.19
Cumulative effect of change in accounting policy, net		—			—			—			0.01
Net income	$	0.90		$	0.17		$	1.27		$	0.18
Diluted earnings per share:
Income before cumulative effect of change in accounting policy	$	0.88		$	0.17		$	1.26		$	0.19
Cumulative effect of change in accounting policy, net		—			—			—			0.01
Net income	$	0.88		$	0.17		$	1.26		$	0.18
Basic and diluted weighted average common shares outstanding
Basic		47,056,536			39,389,869			43,223,202			39,389,869
Diluted		48,144,592			39,389,869			43,767,230			39,389,869

DELEK US HOLDINGS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In thousands)

	For the Six Months Ended
	June 30,
	2006			2005
Cash flows from operating activities:
Net income	$	55,063		$	7,028
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization		10,884			8,135
Accretion of asset retirement obligations		201			57
Deferred income taxes		1,577			3,965
(Gain) loss on interest rate derivative instruments		(1,524	)		1
(Gain) loss on disposal of assets		1			(2,182	)
Deferred financing costs written-off in connection with refinance		—			3,466
Unrealized (gain) loss on short-term investments		(100	)		—
Non-cash stock compensation expense		880			—
Changes in assets and liabilities, net of acquisitions:
Accounts receivable		(34,616	)		(43,574	)
Inventory		(13,581	)		(2,612	)
Prepaid inventory		—			22,107
Other current assets		(2,077	)		(5,384	)
Other noncurrent assets		(2,328	)		831
Accounts payable		(5,474	)		12,384
Accounts payable to a related party		122			—
Fuel payable		19,796			48,665
Interest payable		(350	)		(903	)
Related party interest payable		(2,870	)		(65	)
Other taxes payable		708			4,333
Accrued employee costs		(749	)		135
Income taxes payable		14,228			(21	)
Accrued expenses and other current liabilities		1,148			4,080
Asset retirement obligations		(412	)		267
Other noncurrent liabilities		(19	)		616
Net cash provided by operating activities		40,508			61,329
Cash flows from investing activities:
Purchases of short-term investments		(285,097	)		—
Sales of short-term investments		203,588			—
Return of escrow deposit made with Escrow Agent		5,000			—
Purchase price adjustments		(210	)		(91	)
Business combinations, net of cash acquired		—			(68,684	)
Purchases of property, plant and equipment		(43,353	)		(4,105	)
Proceeds from the sale of convenience store assets		—			3,111
Net cash used in investing activities		(120,072	)		(69,769	)
Cash flows from financing activities:
Proceeds from issuance of common stock		167,899			—
Proceeds from issuance of Senior Secured Credit Facility — Term Loan		—			165,000
Payments on Senior Secured Credit Facility		(16,342	)		—
Net proceeds from Senior Secured Credit Facility — Revolver		3,000			15,500
Proceeds from IDB Note		30,000			—
Proceeds from Israel Discount Bank Note		—			30,000
Repayment of Israel Discount Bank Note		(20,000	)		—
Proceeds from Bank Leumi Note		—			20,000
Repayment of Bank Leumi Note		(10,000	)		—
Payments on Credit Agreement — Term A and Term B Loans		—			(131,900	)
Net payments on Credit Agreement — Revolver		—			(5,000	)
Payments on SunTrust Term Loan		—			(33,700	)
Net payments on SunTrust Revolver		—			(3,527	)
Proceeds from term notes to related parties					35,000
Repayments of notes payable to a related parties		(42,500	)		(3,500	)
Payments on capital lease obligations		—			(616	)
Proceeds from (payments on) notes payable — other		(22	)		12
Repayment of note receivable from a related party		200			—
Decrease in restricted cash		—			3,717
Deferred financing costs paid		(204	)		(13,636	)
Net cash provided by financing activities		112,031			77,350
Net increase in cash and cash equivalents		32,467			68,910
Cash and cash equivalents at beginning of period		62,568			22,106
Cash and cash equivalents at end of period	$	95,035		$	91,016

DELEK US HOLDINGS, INC. AND SUBSIDIARIES
Segment Statistics
(In thousands)

	Three Months Ended June 30,				Six Months Ended June 30,
	2006		2005		2006		2005
REFINING SEGMENT(1):
Days operated in period		91		63		181		63
Total sales volume (average barrels per day)		57,036		48,463		55,659		48,463
Products manufactured (average barrels per day):
Gasoline		29,987		26,709		29,707		26,709
Diesel/Jet		21,680		20,492		22,753		20,492
Petrochemicals, LPG, NGLs		2,575		2,415		2,347		2,415
Other		1,914		906		2,623		906
Total production		56,156		50,522		57,430		50,522
Throughput (average barrels per day):
Crude oil		55,985		51,343		56,991		51,343
Other feedstocks		1,357		913		1,485		913
Total throughput		57,342		52,256		58,476		52,256
Per barrel of sales:
Refining operating margin(2)	$	16.34	$	7.58	$	12.69	$	7.58
Direct operating expenses	$	3.31	$	3.71	$	3.46	$	3.71
Pricing statistics (average for the period presented):
WTI — Cushing crude oil (per barrel)	$	70.67		53.01	$	67.08		53.01
US Gulf Coast 5-3-2 crack spread (per barrel)	$	15.38		8.57	$	11.78		8.57
US Gulf Coast Unleaded Gasoline (per gallon)	$	2.11		1.45	$	1.91		1.45
Low sulfur diesel (per gallon)	$	2.12		1.56	$	2.00		1.56
Natural gas — (per MMBTU)	$	6.65		6.84	$	7.10		6.84

	Three Months Ended June 30,						Six Months Ended June 30,
	2006			2005			2006			2005
RETAIL SEGMENT (in thousands):
Number of stores (end of period)		349			329			349			329
Average number of stores		349			330			349			330
Retail fuel sales (thousands of gallons)		95,213			86,002			185,421			166,074
Average retail gallons per average number of stores (in thousands)		273			261			531			503
Retail fuel margin ($  per gallon)	$	0.161		$	0.155		$	0.140		$	0.141
Merchandise sales	$	82,412		$	75,477		$	155,200		$	141,501
Merchandise margin %		30.8	%		30.2	%		30.7	%		30.4	%
Credit expense (% of gross margin)(3)		7.9	%		5.6	%		7.9	%		5.6	%
Merchandise and cash over/short (% of net sales)(4)		0.2	%		0.3	%		0.3	%		0.3	%
Operating expense/merchandise sales plus total gallons(5)		14.0	%		12.4	%		13.8	%		13.1	%

(1)	2005 comparative amounts reflect Refining operations from the date of acquisition, April 29, 2005, through the end of the three months or six months ended period.
(2)	Refining operating margin per barrel is calculated by dividing the margin between net sales and cost of crude oil, feedstocks and related transportation by the total barrels sold at our refinery. Industry-wide refining results are driven and measured by the margins between refined petroleum product prices and the prices for crude oil, which are referred to as crack spreads: the differential in price between a representative barrel of benchmark refined petroleum products, such as gasoline or heating oil, and a barrel of benchmark crude oil. The US Gulf Coast 5-3-2 crack spread represents the differential between Platt’s quotations for 3/5 of a barrel of US Gulf Coast Pipeline 87 Octane Conventional Gasoline and 2/5 of a barrel of US Gulf Coast Pipeline No. 2 Heating Oil (high sulfur diesel) on the one hand, and the first month futures price of 5/5 of a barrel of light sweet crude oil on the New York Mercantile Exchange, on the other hand. We compare our refining operating margin to these crack spreads to assess our operating performance relative to other participants in our industry.
(3)	Consists of third party credit, debit and fuel card processing fees as a percentage of gross margin.
(4)	Merchandise and cash over/short as a percentage of net sales is a measure of merchandise loss or theft, motor fuel theft and cash shortages as a percentage of net sales.
(5)	Operating expense for our retail segment divided by merchandise sales plus retail fuel gallons is a ratio we use to measure store operating performance — especially operating expense control. Retail fuel gallons are used rather than net retail fuel sales to eliminate the volatility of fuel prices in the calculation and improve comparability.

DELEK US HOLDINGS, INC. AND SUBSIDIARIES
Segment Data
(In thousands)

     The following is a summary of business segment operating performance as measured by contribution margin for the period indicated:

	As of and for the Three Months Ended June 30, 2006
					Corporate,
					Other and
	Refining		Retail		Eliminations			Consolidated
Net sales	$	454,056	$	365,583	$	(49	)	$	819,590
Operating costs and expenses:
Cost of goods sold		369,232		324,270		(156	)		693,346
Operating expenses		17,209		26,084		106			43,399
Segment contribution margin		67,615		15,229		1			82,845
General and administrative expenses									10,177
Depreciation and amortization									4,710
Loss on disposal of assets									1
Operating income								$	67,957

	As of and for the Three Months Ended June 30, 2005
	(Excluding Refining which was for the period from
	April 29, 2005 though June 30, 2005)
					Corporate,
					Other and
	Refining		Retail		Eliminations			Consolidated
Net sales	$	190,095	$	269,557	$	55		$	459,707
Operating costs and expenses:
Cost of goods sold		166,951		232,901		13			399,865
Operating expenses		11,316		20,877		114			32,307
Segment contribution margin	$	11,828	$	15,779	$	(72	)		27,535
General and administrative expenses									5,648
Depreciation and amortization									3,714
(Gain) on disposal of assets									(2,182	)
Operating income								$	20,355

	As of and for the Six Months Ended June 30, 2006
					Corporate,
					Other and
	Refining		Retail		Eliminations			Consolidated
Net sales	$	816,102	$	663,196	$	51		$	1,479,349
Operating costs and expenses:
Cost of goods sold		688,232		588,582		(155	)		1,276,659
Operating expenses		34,900		48,994		191			84,085
Segment contribution margin	$	92,970	$	25,620	$	15			118,605
General and administrative expenses									17,139
Depreciation and amortization									9,082
Loss on disposal of assets									1
Losses on forward contract activities									54
Operating income								$	92,329

	As of and for the Six Months Ended June 30, 2005
	(Excluding Refining which was for the period from
	April 29, 2005 though June 30, 2005)
					Corporate,
					Other and
	Refining		Retail		Eliminations			Consolidated
Net sales	$	190,095	$	498,589	$	110		$	688,794
Operating costs and expenses:
Cost of goods sold		166,951		431,347		13			598,311
Operating expenses		11,316		41,794		188			53,298
Segment contribution margin	$	11,828	$	25,448	$	(91	)		37,185
General and administrative expenses									9,632
Depreciation and amortization									7,167
(Gain) on disposal of assets									(2,182	)
Operating income								$	22,568

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