DK - Earnings call transcript Q2 2020 | Delek US Holdings, Inc.

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Operator

Good morning, and welcome to the Delek US Holdings Second Quarter 2020 Financial Resutls. All participants will be in listen-only mode. [Operator Instructions]. Please note this event is being recorded. I would now like to turn the conference over to Blake Fernandez, Senior Vice President of Investor Relations. sir. ahead, go Please

Blake Fernandez

would conference thank discuss call quarter Holdings' I us Delek for on second results. financial today's and XXXX like morning. everyone to joining U.S. Good webcast to

the used Ginzburg, be Uzi on me Chairman, Relations CEO; website. The and Investor of and today's team. LaBella, is Refining; found as materials EVP Joining of Yemin, as our CFO and the management during well call of President, can Delek our and EVP on today's President call Louis Assi section other presentation members US

reminder, As X statement. statements Federal for is conference Securities a the under Harbor Safe this forward-looking call may defined Slide the as contain Laws. see Please term

report results accordance Investors website. accounting is reporting results. can generally posted on comparable the to are press the encouraged financial Investor addition in to segment which results, which In the of be measures in to non-GAAP found of financial certain the Relations these review GAAP non-GAAP financial GAAP, with we reconciliation accepted principles the or release,

turn Our that press reviewed, the assuming been quarter into has covering capitalization, call is review today's will and I'll Louis the we CapEx, comments. over will On offer Reuven strategic liquidity then to that are call, prepared release. a are information release segment will performance, and being less second earnings incorporated and the remarks market financial made will I that, cover With Uzi guidance, Reuven. and cover operations few closing

Reuven Spiegel

income compared in year for $XXX net of or $X.XX US the a of reported adjusted a million million share Thanks, Delek period. diluted or Blake. share net per On the prior second $XX basis, XXXX, quarter per an $X.XX loss to

$XXX the $X.XX period. $XX results compared include losses of million million EBITDA after-tax million This of year after-tax. $XX a income or by million million after-tax million, $XX is per at of fixed second inventory realized purchase adjusted benefit partially price of XXXX Our after-tax of Adjusted in loss the share. prior and $XX comprised Refinery of product was quarter loss crude $XXX offset headwind other to an hedging in Tyler our

of Lastly, $XXX working $XXX $XXX the first from continuing I out XXXX, headwind other products Slide flow quarter point adjusted of receive of where that first On in reversal waterfall. million. tax negative that inventory expect from excluded of approximately to reflect provided income cash part of from we adjusted a cash tax quarter working capital index million decrement capital Within In we $XX the mentioned in XXXX. a credit results. would the and disclosed the the the includes cash which the of separates flow of is second results is had are LCM XXXX. inventory operations, X, we million a already purchase million

cash Finally, turn expenditures Blake. that, quarter to capital million. the will I it in were With $XX over

Blake Fernandez

Thanks, Reuven.

of Details each purchase verbiage refinery balance realized segment. and the the I both and outlines disclosure hedging and are the additional by segment. business the like some down XX highlight segment other of press to unrealized discussing Before within inventory within highlighted impacts release by quarter. this product would sheet, Page details of in broken the refinery

million, Hopefully excluding to highlights changed $XXX this the component June out on point been would $X.X debt transparency the the for of capitalization. the high basis at long-term distillate and diesel our $XXX low sales. cash that, XX. second Finally, net net has and visibility underlying million we Slide long-term performance billion $XXX to better provide of with ended the XX debt quarter, our X-X-X better of benchmark with of consolidated on from had approximately our I Ultra like to business. move we'll product equation. into illustrated of increased of will debt, This which diesel Coast million the benchmark With Page yields sulfur a Delek aligns We Gulf logistics sulfur X,

Slide guidance now the remain million We quarter on discuss for X, modeling. call our meet or CapEx. for quarter’s Louis guidance call we With that will year and we the over provide that, reductions. full to operations overhead to and Moving conference last I third exceed operating in to provided $XXX confident will cost turn

Louis LaBella

Thanks, Blake.

crude XXX,XXX system approximately barrels the day. quarter, oil throughput per our second During total refining was

slide. connector Red year completed Webster outlined the first approximately market half locations to utilization utilization and throughput financing be barrels or XXXX, as program rates XXX,XXX expect at oil the of XXXX running the excludes well expenditures by XXX,XXX roughly the River, approximately program during $XXX point XX% Slide minimum of to versus Wink leaving Capital our will our down as million venture. capital as quarter broken year. remain in balance crude the out provided $XX the highlight were for the the spending. year On average recall industry. confident is joint niche between of I midpoint. like day was I continue to higher Our JV will where X, investments we third to the to the support The In per CapEx XXXX to we that capital segment of hit guidance outlay capital would by We the at XX% the quarter full full million. capital second want

the to I over call Next, turn comments. Uzi closing for will

Uzi Yemin

morning good and Louis, you, Thank everybody.

strategic the Our business stability and with towards and well is model transition predictability more underway.

progressively the and Our should over to midstream performance improving coming are coming quarters. fruition investments to lead

the XX% nimble macro of long volatility manage the margins, agile to being we the prevailing The despite the to of collectively. $XX remains and segments a with and resilience portfolio and strong of these performance costs retail for generating million macro refining diversified capital spending ownership contribution businesses margin this in managing remain during above Delek in our DK. supports history weak provide logistics outlook period logistics and Our robust, environment. continues has terms our

per quarterly a operator, to We payment dividend committed with withstand well can ample are maintaining the you volatility, liquidity balance of are sheet and open call please With maintaining that, share. our questions? while for positioned $X.XX to macro strong

Operator

[Operator Instructions].

today Neil from question Sachs. Mehta comes Goldman with first Our

Neil Mehta

industry, Good some made question. the there's Delek it. taking that lot you much But I need their morning in the And be for EVI so a recognizing team. playing question there's can't comments but the here. perspective say guess see M&A, a a thank it on would role in first yesterday, whether on you thoughts your call consolidation for your whether on you in

Uzi Yemin

Well, good morning, Neil.

light we're some wide some know don't I there point, the should that if point. think I that if the we I several assets for of differences, think be consolidation? or you we're approaching is will, if that there you First, if they especially -- many people understand come that are closures, that that But industry marketplace. will, people approaching in yet. in

So that, – the that it need I that rolling times our we to all open to in think eyes for keep approaching we're the in exist like regard opportunities along marketplace. point. In Delek the

other something allows are also balance the so that maintain that are with have, to segments That midstream reason two that feel performing and and about we for we the retail And fact we both good well. this us ourselves. sheet there strong feel that's us strongly

Neil Mehta

is the the that? I up about and big working how can reverses capital tax deferred talk modeling tax There quarter. a little then bit It guess I just that. working appreciate talk embedded in be tax about you on was a it how number. is we in that, -- just think well and a follow I item should capital as a

Reuven Spiegel

this morning, is X) of working $XXX million of of is negative a non-cash LCM million capital major comprised number good The So $XXX number Reuven. reversal. three is

million taxes increase in is expect a is in for that million quarter, $XXX in federal increase half makes to the for half -- pause But total first expect million that addition SVR. change in get which tax we receivable in which in the inventory a second $XX second and of there is $XXX million first to I'll million the XXXX. the receivable the $XXX of tax million pause And we quarter, state one various $XX other we in of to I’ll tax $XXX the here a the million of for had second million that XXXX. $XX first The $XXX the is is get

Neil Mehta

thank you. guys, Great

Operator

Benny comes with Stanley. question hear next Wong from you Morgan Our me? Can

Benny Wong

hear Hello, can you me?

Operator

go will ahead. We – we hear now you go can

Benny Wong

move having towards I know just that issues new look your of you updated And on targeted the like to growth has downturn. curious I about EBITDA think views been guys team sorry as that environment of this on what your is really business your coming Hey, in But growing the there. getting get focused might about anything on we terms want business. to midstream need your there update business. there? outlook your here. out And just

Uzi Yemin

morning, all demonstrated first, outlook over And -- that good $XX that Well around quarter Benny. we said month think Delek the last power. EBITDA. on few of that And idea Wink US. fits to the next now that million Delek the say we We to did provided we we to this midstream I continues US to to then more create – Webster we quarters. number obviously, improve earnings stability want that with expect the XX being have along We be right And over positive.

some now different avenues several that we with agreements are points. have take. There can We several

have will Gulf. the from ability midland the cushion or to way We those take to to do the all

power. that continue to provide more earnings our we to need we stability and strategically at look to So to we that continue think

next XXX. think for with see EBITDA to won't years on target. XXX about be track is So XX all quite to reason We that. we surprise would achieve million $XXX over two we the We that I us, don't and think this any to said said along we our why three

Benny Wong

thoughts, those appreciate Okay, Uzi.

is retail question Second business. your around

You of had and quarter margins sales. merchandise a terms in strong pretty

expect How Just the July? a continue you're quarter? seeing to those does the driving that that. And factors wanted you compare to to into third sense of do kind get trends of

Uzi Yemin

mentioned by it's in past first, the and sales. several that double-digit did go sit I they is We X%, components July in memory people out. at the the quarter, like see fact store same home think going We that

So our they go convenient from peers. heard in sure to stores. out it you I'm and

areas, any Second hours. operate don't boxes the big XX in more our

people line businesses really third stand So want is the picked after big don't to up is in And or has boxes. outside component hours up picked up. picking

So their areas least they in and at to shopping in our out. do prefer

reasons. are these So three the

Benny Wong

just you this these it's persisting that Great trends we as or past kind event see you do whatever maybe. get COVID still and that timeframe think more of of isolated do change will

Uzi Yemin

XX% I But little think we not? sales unusual people to I or in probably changing XX% bit. hard over behaviors can sustain that Do predict. are times, a We're think same store their it's

strong have sales stores. Again, but to I expect need I if in years merchandise over next get. So to the predict two, three to it's hard the

Benny Wong

Thank I appreciate it. you so much.

Operator

Our next Credit comes with from Gupta Suisse. Manav question

Manav Gupta

Uzi. Hey,

So you I'm itself The need business trying business last much EBITDA close back million you don't $XX in repeat the [indiscernible] just million that but times this sell needed today you higher. to last retail making take the ‘XX you nine and a you multiples you they had to incomes it. it higher $XX even offers understand cash were on, and build can are good out. than history time time you are multiples

is repeats history So possibility there a itself?

Uzi Yemin

build I And or quarter. that around mentioned every open we business. approaching for between fact with very midstream that Manav, the on EBITDA in now that Bismol. multiples. the think always you We're continue million to retail at But looking $XX we million proud discussion to we're are to were business a always I focusing to We're $XX the

higher are these multiple So businesses.

opportunity then accounts in to it get an very at high look see performance it we multiple the carefully. You and DKL will if

Manav Gupta

and asset. of performing follow your up, think in was Great progress last I being Uzi on quarter made a a was fact [Krotz], Krotz lot quick best

what if was quarter, gone understand could am this particular way a us just Krotz little trying really quarter? it's one I was times quarter? with happened tell other you like it So all to this doing This Krotz until well

Avigal Soreq

Manav, Hey, Avigal. this good is morning

fell numbers reconciliation. the and off that out So between in contribution physical there loss we called are the those two elements, gain

got value Krotz Blake are sales from based you've the [indiscernible]. think some seen QX QX the I higher the on in that. that’s small expanded upon answer bulk gap And and in second have so in we

Manav Gupta

Well. Thanks, guys.

Operator

comes with question Todd Simmons from Our Energy. next Ryan

Ryan Todd

thanks, Hey, morning. good

term you and the one strategy cash As business continued using the towards -- on flow. particularly on we maybe Can about sustaining model stable dividend start transition longer priorities as how I’ll for dividend to the more and -- growth? about your in should cash talk near-term think the

Uzi Yemin

That's question. a great

more stability think be increase create And trying correct. I on to stability. continue that want our to we First, based we're We is what around past to earnings. it used is to to do differentials. that In the known

Speaking the of and refining. shareholders is lot reason about what in the our both that dividend during continue the for as are the see obviously, the a we punish weakness is retail outlook dividend we And quarter we dividend, chose didn't about questions got to bright. with midstream well very to the reason bright a -- as the over

the we will refining Now, especially of opportunities obviously, marketplace. at then if weakness in -- the said, that like light continues, that, just in exist I look in other

Ryan Todd

I a in -- environment that the could potentially then weakness policy there were to thanks. guess there? be if operating Okay, this persist, weak change dividend

Uzi Yemin

it quarter. we look at that every That's something

look buyback that the something tax much $XXX decision a a We call to sheet So now make have we necessarily it long-term. I every decision. at announcement. as versus it we something or is have We million. the Reuven don't more a an make plus that said to balance don't is need know million -- is at dividend credit quarter. do $XXX look We that we need And on of

So every at look that's quarter. something we will it that

Ryan Todd

with up and Okay, follow utilization soft environment one if mean the relatively current Maybe could with trends. are on I still I capture thanks. cracks

could you still third and during think the operating the your second about the quarter, it for in have frame that help XQ in in third what competitiveness we you us quarter. the was capture Can narrow and quarter? utilization giving a the relative mean we versus differentials As second [contagos] and half rates the of quarters trends pretty strong relatively what second

Louis LaBella

Louis. morning, Ron, Good this is

not you So yes does it [indiscernible] Ron said its exist. over differential,

Right, sure utilization markets. QX are building our with to keep make we also in not on any local we want pace to want we And focus we competitive XX% to so inventory. So, demand with mainly anticipating up stay in that.

Blake Fernandez

chime capture as things. things you necessarily, components. Blake, on Ryan, it environment, of I'll environment, in in on difficult a the little it There's And the you change to on a margin lot have capture cost going quarter are is this not makes side know, it's of some that because a prevailing the low quarter-to- fixed

versus mentioned, there. sales. as hurt percentage that impact into but quarter of the we should next we restarting So the get Avigal But a uplift one you, going the [Krotz] bulk already it’s unit ratable are FCC

So you in an yield. improvement gasoline should see

little compression should a see and bit for at And of capture potentially uplift contango a little could so any you in which theory, of in Krotz, bit serve and Midland. as buffer a

hopefully So helps. that

Ryan Todd

That's color. great. Thanks the for

Operator

Our next with question Morgan. comes from Phil JP Gresh

Phil Gresh

as morning, third in around good Ryan's utilization comment across or is quarter. then it we just the OpEx lower drove area where higher? And And in trying follow you've up the any question sustainability that that? second just and on much refineries just stand to want the I the made, this as what savings that the the I'm spread just of to outlined, you the so just quarter. cost down think particular, you do lower just the where with Hey, with sequentially out it looks guide understand that about

Uzi Yemin

So and morning two questions good different Phil.

that the around Big OpEx I'm full. modeling The economic of would most and love that first full we running running pick utilization, for call In situation Spring on can that for part, standpoint – Big and question. regard you the assume but one Blake to rest the LP, to that is are the sure Spring

Blake Fernandez

Phil, morning. Yes. Hey, good

G&A dollar stick with we're day, of at $XXX So OpEx the million reduction in going our and the year-over-year. end to

in -- for XQ. bag, the two have you quarters we and If guidance have obviously we

guidance of we're see XQ, and can if you guidance. take change that to to on could XQ for that going you extrapolate you we're Theoretically, midpoint it We but conservative. not way. be million, well our want almost So $XXX to the be

comfortable. we XQ different We're activity restart the XQ the the I components feel going unit that into we're XQ One couple So questions year is mentioned up said on just FCC delivering and in very to what XQ. meet on there's There specifically deferral to basis of maintenance from messaging ramp a some I of the is think that that's main of the there. to full to we is in across. restart going your on

renewables costs a And So of that are around online. there's some that. couple plants there's coming then back

basis. the do we to So I year said, a cost XQ full But at have some like incremental to going costs. on the exceed extrapolated even we're XQ, level guidance

Phil Gresh

got is at Okay, spending year had mentioned at opportunity. question on I and diesel cap capital initial thoughts you not potential levels our And investment we long it’s renewable think little bit you're as just just XXXX too second potential Uzi a as allocation but another about it. early, any ago, talking and conference next one look

you I'd any thought Thanks. just on I latest So that. have see thoughts

Uzi Yemin

that this to questions. we they'll we so It macro Okay, year improve -- disclosure partners we nominal -- cannot these are with bigger buy from believe builds our will for things macro diesel option and field nominal stays our issues And up. into If disclosure option it, where unfortunately, -- do down if California. part But dramatically In that diesel, there year have year. are if to is to diesel mean, it a environment. our to an improve because we'll company different next for for we'll next I in there's trim renewable don't environment one-third of the two plant it improve that another about we where work will is, an depends deal, provide we it we that option the it buy we of now. But talk have a will on But amount renewable details. a open in honestly, for past, chance that partners. mentioned some they regard an happy leave renewable and you we they of I’ll is be a do more as have into with amount. that to our issues the as now

Phil Gresh

Okay.

challenged? on flexibility to magnitude the the if environment Just you ‘XX year-over-year of of us the can have give be you continued would CapEx, an order

Uzi Yemin

Look, we $XX million between $XXX can swing million. no to problem

Phil Gresh

right, Okay. thank All you.

Operator

Brad question Markets. comes Heffern from with next RBC Our Capital

Brad Heffern

taking morning, Thanks the detail. start-off to for everyone. good questions. Hey, some I'll

all the come obviously almost the back trough. the So units way from have

the am of I sort to you your add or think improve that value there So that its as needs commitment vehicle the whether to separate still DK? of wondering sort sort reiterates if that that of performance for for

Uzi Yemin

a great That's still, question. is units yield performed The very the have but high. pretty well,

is capital below of XX%. cost Our

So out good almost like though, with our it's five ago. times we we were while general, of that pretty performed sector, MLPs EBITDA around five years other favor the energy increased they in vehicle in were any the funny, where units

need look eventually, carefully we that that it at give. the that's something needs So future. something to I believe to do in

And XX comes, yield. strategically. that we're did. when so DKL it MLPs It need very And it XX or to something XX time need as be the then is has performed times as times at look to times traded we at or well proud that

Brad Heffern

business it's have I the if was any the on had far to sides Spring? And or of the product it closure? I know for thoughts great. on you obviously Okay, any Gallup does sourcing the Big crude But West. impact just pretty wondering

Uzi Yemin

where Big helps. out you need Spring does Big that area, probably Marathon so sell closure a the impact ask products we as to have itself, us Mexico Spring you know, new in it on of first to the Well,

utilization something that's between is surprise We you an not are around as of XX% anybody. a know XX%, that and to environment in

that But will small of doesn't certainly the the closures. be market out and the comes other I much. impact. market when see They should and in refinery today's think there like -- closure future we up in [add] So comes this mean back,

Brad Heffern

Appreciate Thanks. the answers.

Operator

Our next question comes Barclays. from Theresa with Chen

Theresa Chen

Uzi question the of getting a in firmly right about from your thoughts closures refining industry? like to in How the question getting Gallup inventory or is first margins my do brain as follow your across to pick you further would up question evolving tweaking the of see the [indiscernible] guess, are economic on macro better half. here? I morning. we here Good the range, terms in back is What Brad's environment it utilization closure, a second into are additional as

Uzi Yemin

questions Theresa, first Well, I'm good but not are these really sure.

just the happened XXXX, what was We If a going it look at the history. by have I'm answers completely. in combination. we

of XXXX wasn't Now, we see here. to anywhere the magnitude close what

be be think there refineries. I of that -- should should more there we think closures

I as so came -- people that little time, think realize everybody people a take will closures. a should into down more with be that it there cycle cash, this lot of if more

shut now five right think either far, that refineries I so or are not permanently operating. were we're about talking

probably will the that time think same I there should come should few at demand shut that a back. be more be and

-- I over to expect months? three not. two happen Now Probably do next the this

we I disciplined bit that to were think in environment two we all need to handle. little something as quarters. an three maybe this industry that a be for And that

Theresa Chen

you still earnings more projects and are down incrementally supply volatility on Got currently And forward things? commentary Are grade midstream to just terms midstream, well you primarily transitioning further a supplied your projects it. Many so side competitors high the strategy long-term demand of of given flow line. stability cash and focused by perspective. push as go as push that shine are develop your looking away the pull from you a more upstream, operators in primarily have to given refining as or provide from strategy at your then

Uzi Yemin

Well, six over months. the many obviously, it things changed last

we need to mindful the our we market. changing At be to should Midland and continue earnings, to So, in not -- to time, and committed stability proxy the to the be be differential. while for same be more the committed we

know I a strategy. can right don't That's now. articulate doing we're I long-term now, that So what

doom here At long stability. when the make same every to comes that gloom. and such and back it to it's the I've been time, the when long-term market see to committed enough time so sure want are market back. will We come

happens. All of something sudden a

call, in market here market know this strategy I don't the articulate vis-à-vis when capture asked. change in up, the to that. can that I especially in we're comes you light So the of long-term the questions

Theresa Chen

one quick one Okay, for housekeeping and maybe then me. just,

on intermediate quarter just just and almost was as turned day that the down going units was of the other the you on that the barrels products downstream any on there asset, to and should color XX,XXX related trend So, [crops] in uptick what quarter-over- forward? to per going building some how

Uzi Yemin

Why do you. it [indiscernible] it. it will to the And offline slide, to us don't we this answer trying it's on important take obviously, with publish Blake everybody, we will

Avigal Soreq

I’ll follow with up you.

Theresa Chen

Okay, great.

Uzi Yemin

you. Thank

Operator

question next Our of Leggate Bank with America. comes from Doug

Unidentified Analyst

Hey, This duration is Doug. that the on deploy wondering if morning. on of this cash guess about we very really balance. first there's [indiscernible] It's I good for guys, any strong should my as is strategically plan here that pandemic? to question think for insurance or your still

Uzi Yemin

five long We've a That this $XXX [indiscernible]. will know good is are We trend now how into that where comfortable. We don't question. last. – that’s good $X we always That’s billion morning last been between say months. million and this it

I time So will -- show then we too have we to cash the same believe that reason we know don't that are themselves, won't act. that we if no opportunities much there's at necessarily feel

Unidentified Analyst

you. thank Okay,

view bit more to up forward? push differential on going little shock For supply I on a to What's Midland just updated there the obviously be get that structure acting a follow your given thoughts question. producers because U.S. the of the disciplined and is want seem pandemic. my [core]

Uzi Yemin

will bit I it's or I to widen $X.X think two $X, along think maybe next now but the we'll we [indiscernible] for much stay $X, to a nothing here. that little year probably

Unidentified Analyst

– question business. And retail just the Thank last so you. my want I ask to about

more record into a this So you the guys seems has when not is a count from from It business, stepping Alon. little store it bit on why strong like it managing down Delek of aggressively. took

Uzi Yemin

just is, building remember that It stores. we're mega but

earnings stores, trying in build stores makes when show So these well very store modernize to performing volume, that are to so continue MPIs will times the and earnings for XX shows that we and a stores us. in our that we it new the probably XX are divest we

Unidentified Analyst

accelerate And why not growth? its

Uzi Yemin

all try carefully. we're shareholders. returning need we to are between do. We balance These that retail, midstream, cash that That's something looking very at to things our to the

Unidentified Analyst

for taking Thanks Great. the questions.

Operator

next with from Our Matthew question Pickering, comes Tudor, Holt. Blair

Matthew Blair

Hey, from that you Uzi. Was good crude prices? Asphalt QX? talk about Could lower the bright in contribution a spot morning with

Uzi Yemin

to and you on Matthew is have numbers margins, I yes, what a Hey, I just don't that you in the a lot sold those of basis. but give tell contracted any stickiness is hard would

So see is El think you tend crude there Spring a extent of see when in the exposure, our prices, you and Asphalt. a uptick collapse a of nice for in as end margin well. to the the At bulk do I to Dorado certain Big

picture. was definitely it was to overall additive the it So to the

Matthew Blair

you just refinery Sounds mentioned How or pretty expect a Are will more that low good. refineries those And Dorado confident environment? up given El you you're looking now? that few thinking at competitiveness demand are then stay Uzi, you times closures. this something you about is the of and right Krotz

Uzi Yemin

That's question. a wonderful

good. all, First are sure Big of and Tyler doing I'm Spring that

El rate a now by invested very get a some quarters, over a a Dorado production think great crude on then question to we at one that we that’s have if Dorado them local that of deep it execute take will in you more need XX% on Spring. competitive from sorry me discount. I its -- thing. asked or which Krotz as little here. more remember can get we we money we refinery, to we're Dorado production a it it's We so one the plan a be to up producers little we'll especially more. coming get of And Now just on produce El do next of in plan. XX% Big around is can trying work about don't let to one which of And be If as light surprised we few if buy that crawl, for crude El the its what lot reliable, these a of cost, from just need

candidate not produce we're as refineries ready them that Krotz. increase In in think what -- all point? Second we the remember come the I there so. this [light to comes project It's these something that lot disclose I a competitive. be are competitiveness the hurt producing. of would Krotz, to into don't in not for assume lightweight that need these is We're just of barrel? of can now time at got of looking over yet. is But all comes what are stopped just the We we think they a four a Then and this that they money. refinery. that market have if any weight] when back, out closure refineries market But at refineries,

Matthew Blair

Thank you.

Operator

Our with Jason Cowen. question from comes next Gabelman

Jason Gabelman

Good believe Red expansion a River think on there commercial that from and up. Cushing the discussed I've differential and I But a started logistics I and questions year, had earnings that potential expansion the you fixed come first, some potential the EBITDA fees with in, has from that Midland get project, follow the expansion. morning. a now wider pipeline, are for above is have past Midland Thanks. earnings whatever that that differential still there's some given know from Cushing I also off that two that and I I in expansion on the

Avigal Soreq

Jason, It's Good morning. Avigal.

rely it's on small will need see and you measure flexibility all now. know, to itself the of the within the the get Cushing model optionality that very pull the over time refineries present and into flexibility and do over differential will refining. it overtime, refinery. Cushions capture as River So source business But to We to nice capture a we Midland as Red they it not in optionality

Jason Gabelman

eager most midstream to so see you most within refining question, the where operate you are times it. just wondering retail, opportunistic that segments that do at opportunities there to specific M&A if expand business a specific all guys? got Okay, between you've you you opportunities second think and then few And or you and are are and for Thanks. mentioned where three regions that refining the

Uzi Yemin

value for on our sure Jason. these That's a -- three create or and we exists and good opportunity are need to that. to all make in if question. seller But shareholders enough it buyer you I'll that we segments, depends M&A a just it

Jason Gabelman

you. Thank right. All

Operator

the answer then This I turn And remarks. like over for management and to concludes our back closing to would any call question session.

Uzi Yemin

you. with good investors our these executives management your all Appreciate the this thank is. each Board a I’d to to one morning. Stay time, around it thank in everybody's appreciate like of the Directors and and mostly times. healthy here. stayed Everybody And like in for is employees you in thank safe. interest of during their great company. Have our this trust table that company made I'd Well, the and I'd Thank for question me great job and to day. safe this what us. doing like

Operator

has The conference presentation. concluded. Thank now for today's attending you

You may now disconnect.

Delek US (DK) 6 Aug 202020 Q2 Earnings call transcript