DK - Earnings call transcript Q1 2022 | Delek US Holdings, Inc.

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Operator

Good day, and welcome to the Delek US Holdings 2022 First Quarter Earnings Call. 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, SVP of Investor Relations. Please go ahead.

Blake Fernandez

morning. Good to webcast joining Holdings' to 'XX Results. like conference on First everyone Financial and call discuss thank would us for today's Quarter I Delek US

section President call Todd materials CFO; EVP used the The can members and of as call Yemin, Joining of EVP Officer; O'Malley, is be Operating during the as on Reuven Spiegel, today's website. today's our me Investor US found presentation Chairman, well and Chief our CEO; and team. Relations Uzi Delek on other management

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

financial reconciliation comparable GAAP accordance financial Relations addition Generally in section we of Principles, the Accepted results. reporting of measures website. release encouraged to can Accounting Investor which non-GAAP the GAAP, on Investors review to these press results In posted are to non-GAAP the in found be with or results, certain financial the report the

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

Reuven Spiegel

of adjusted or basis, compared or a per share On $XX the $X.XX an had million loss net prior-year in XXXX, the $X.XX a you, Thank $XX.X US net million to period. share quarter of Blake. for first of income Delek per

was time to accounting. within period. puts on improve to compared our EPS that results converted impact first from FIFO inventory LIFO hedging longer results. This inventory in opportune basis inventory discussion million Tyler plan the The an basis the million $XXX.X quarter, an to accounting all an a Street. underlying to highlight during And was going EBITDA our like would FIFO. same basis the in the refinery adjusted no and to with the to of quarter we'll retrospectively I $XX.X the discuss adjusted on Our prior-year with This and other is of we effort our highlight the In of performance messaging, forward. communication simplify EBITDA refineries

$XX the the I will Moving approximately cash working of we operation, a million the X, financing flow March. note quarter In over continuing of from includes from provide $XX bucket first to Group we Please of a purchased includes activities waterfall. With Slide to which positive million. it cash million had in that, $XX XXXX, detriment capital flow Icahn Blake. turn shares

Blake Fernandez

X on basis highlights $XXX $X.XX debt. first of consolidated our net We quarter billion capitalization. of a Slide Reuven. with ended Thanks, cash million the and

net at approximately Delek $XXX Logistics Excluding March $XXX of debt we at this million, of of million year. debt had net XX

Operating Moving range to in we $XXX be for quarter forecasted to guidance million first Slide million. to costs modeling. the of provide are $XXX X,

X, this May X.X% outstanding. million from represented on the $XX Icahn our the Regarding of purchase Group share shares

the second the occurred witnessed be quarter that results. in will count fairly transaction the first share not full Given our the of until late impact quarter,

third turn toward This company. should water. to over becoming into parties enhance track value to interest scalable the transform a DK's discuss propel Finally, along the longer-term natural I a entity target to the DKL $XXX further Collectively, these stand-alone of transaction coming with within Basin true broader entity well underlying million from more into CapEx. basis, the will product XBear the diversification fee help places XX% operations Todd planned pro larger, us forma EBITDA across DKL contribution of in expanded should million a on acquisition fixed approximately Permian and on $XXX of and call midstream with achieve and margin segments. of mix attributes and to our With gas that, our

Todd O'Malley

Thanks, Blake.

refining $XXX XXX,XXX year, second total quarter With our barrels at activity to per for major oil crude of quarter, In capital is million excludes of margin in a the during first XX% planned XBear balance midpoint. we the The oil in was expected approximately the average XXX,XXX be elevated range planned million. consolidated that around we day. first associated X, spending approximately and system the to acquisition per midyear. to throughput the strong capital were 'XX of crude expected environment. or On position expect the day a full-year close capital XXX,XXX $XXX the between to on $XX barrels to quarter no expenditures During are capture throughput with turnaround This million is the 'XX, Slide program utilization basis. the

witnessed turning least would Gathering in our I'll volumes the XX% ramp-up a the that, Permian significant from for call XQ volumes being expect it drove Uzi, double closing demand producer system. sequentially, Before in to turn with highlight a to With at his over to to 'XX. Strong increase comments. growth 'XX Uzi over significant we like I and to XQ

Uzi Yemin

the performance. reflected The into you, planned ongoing margins equity prevailing expect everybody. and quarter significant in Thank momentum recent proving maintenance. be based March on good improvement, purchase a and EBITDA share Todd, second on solid morning, investment is no based to X% and Adjusted we

our only more providing to generate for refining business, to flow, look organic balance we multiple ultimately the should for to earnings in avenue Legacy but will does growth. As incremental for The cash attractive our continue lead seeing company. and return to our an opportunities system, Not in discounts benefits activity in to our provide sheet gathering cash our opportunities enhance increase this crude we're DPG shareholders. In we free system. payment is

for to help After opportunities the into more the among future. producer us in through the platform quarters open pandemic-led and questions? announced several market. confidence cylinders positioned be DKL call operator, further is midstream gave With company opportunity the competitive that, This growth XBear firing springboard please nominations strong strategic peers, exist Additionally, the downturn, all pursue our to provides on that the a acquisition. a to would for you and well challenging capture will

Operator

you. Thank

now question-and-answer Instructions] We question go Our from session. Sachs. ahead. [Operator begin comes first with the will Davenport Carly Please Goldman

Carly Davenport

just that morning. for here. XQ guide strong. taking Thanks provided good Hey, The quite the to I wanted questions refining volume on looks side. the you start

can at a given power or these how on the we're flow EBITDA run quarter? so side? for rates, guess talk trending just well utilization what have been you cash see I this bit operations quarter can So really, you margin where if far about trending you seeing And could the

Uzi Yemin

Good taking Carly, thanks us for morning, time these questions. to ask the

that quarter, see along no no turnaround. our million Actually, the for be this We So you some there will over things major number. we running in turnaround quite the reason are opportunity took the of time. year, nameplate couple said during the a first XXX% to all we fix now $XXX right

looks Now right beat who but behalf I lead the of I commit strong on to to Thaver, want don't it expectations, our just him nominated. operator, pretty want now. got Nithia

Carly Davenport

allocation. capital then I that was of Great, just the And follow-up around color. kind appreciate

You reduced first quarter. shares the during some repurchase outstanding the with

opportunistic or to potential in temperature to wanted if if be further here, preference we more the quarter? returns the is like get capital something around the for first you from latest saw So sustainable just consider

Uzi Yemin

long there's has change, said long, going market malls, on XX% The guys took as we as doing but the doing and We what -- you ourselves way been or what that the as margins ourselves we certainly I from already that that's buyback toward second the we dramatically. like on what see that Group reality looks Carly, quarter shares on we that, opportunity That's But third market now up seen time, good. the be And changed dividend didn't expect margins the I've it. is like to both. we're know second the positioned here now, the no to operation major with in do. us, doing In $XX we like. table. we results. strong that, and positioned Well, that depends believe the to the to strong, the If my a XX%, look it at margin never looks any the buy obviously on -- reason at quarter announced quarter Icahn to that well -- look right the In and we our margins career. from see no entire we and so will that give when The I'm And won't the investors things investment. stay are are maintenance. I've be the we've

did doing the the we with just one. to cash anything shareholders So did similar are we have about to We we on other horizon of investments bullish what don't on top acquisition. with this returning XBear,

shareholders So cash is to the certainly on table.

Carly Davenport

I And perspectives the wanted just to the that. your Uzi, for Thanks years. Great. value for congratulate, very and you of retirement, thank over all much last on

Uzi Yemin

Thank you Carly. so for Thanks kind much. word, your

Operator

with Our ahead. Please Fargo. from Read Roger Wells go comes next question

Roger Read

leaving going be I offer you're your morning good well, assume last I altogether. this call so, us. although to as not with congratulations the I Yes, my Uzi, know and is major company If then

Uzi Yemin

prior -- quarter. Honestly, be the last quarter, this quarter one I My this second before will. the you to want is one. be the the be will one my going last if to

I'll Maybe see. lap over do winning we'll quarter. this So a

Roger Read

consider penultimate here and then distillate had [indiscernible] certainly I a a has questions. high a refiner next fairly a All just what and we had One the right. mid-cap do couple as Delek historically, We'll refiners. time. of among smaller the yield

to we advantage as think curious event, driven. than typically environment more very the capture-driven appears been that's is you and a of to was that feedstock This look -- that's all when today much an at system. how always is I So a outsized running run things then And crack assuming of still we've how Delek, what still for of seen through that? crude plan it's how different that you to take spread earnings very intact, power

Uzi Yemin

we're the and both room different in had in DHTs, the XX%, El crack when that, for DHTs in like Dorado with being everywhere And luckily, $XX more, crack distillate saw certainly, $XX, X handle Well, pushing say spread X we for can days spread or the distillate some past I Tyler. we you the per through in places. and XX% handle with XX%, gladly or XX% different

to see systems. So even trying don't into these we in some feedstock that yet buy the numbers are two you

with higher be to Obviously, So absolutely, the we're achievements. percent four the for XX-something will be handle than XX% great XX%, quarter. planning just

Roger Read

think And the Spring it there? about doing sort you're think any Or -- than we diesel gasoline, is Big a -- assume let's Is less issues then any it rest. as capture is the I little tweaks as little of here? think there more Okay. a there we about is are runs as just

Uzi Yemin

another a take But I want opportunity for DHT that the we about first point want point Spring And we first That's to the couple if Big to say did fix quarter. you to the quarter. know that. Nithi, things in during of on the don't something

to can fill up. if Nithi, you it know or don't I So to anything we that. want add

Nithianathan Thaver

some the full and did running We plants and now preemptive Yes. maintenance reliably.

Uzi Yemin

DHT in Spring, at you numbers at the look The running should historic Big full.

Roger Read

there? question put a to enough heavy that. follow-up you're for any downstream a or is change there anything or units terms to crude out higher Okay. running for the other a final search system Great. Canadian there any cut And distillate in barrel then barrel reason you'll into that the Meaning, of just the Is that? on

Uzi Yemin

Roger, I'll be in this. bold

During times put is you want through all that reliable. the to valuable. is can Everywhere very like we is system what know run that, you

our So of the and crude. work we new trying tell over of experience I'm you, the to going any few run, I are that types though, said, utilization. quarters, than XXX% we do we because done as have of more because What not last

Roger Read

Uzi. Loud thanks and clear,

Operator

Credit comes ahead. question with Please go next Our Gupta Suisse. from Manav

Manav Gupta

looked But Uzi. been Good to I just it know refining, call earnings XX longer. I've comments last been to say about who forward that space want morning. know season these or over macro and for always I covering covering on I've your years. have for so, XX people this I the on

XQ, would season earnings post So say, I the same without the your would just not refining insights. be

Todd O'Malley

I that, Well, appreciate Manav.

a you. it couldn't We And long, support each have your I without been time. other support and just that for -- we is long do something other's know

So you nice for really, thank really the words.

Manav Gupta

Permian its crude is, the build Uzi, years, go trying its little. a here as Midstream over to quick a Permian grow let's was earnings. question a was last infrastructure So also usage back Delek and who XX maximize seen refiner the to

that now also run years, three evolved, that happens crude. last here is two, Now a is that as particularly Midstream Delek the in company company the the Permian has to is perception Permian

midstream has earnings a little the grown. your and have continuously inverted So picture

people today years I'll a versus talk it about if perceived that. what perceive how So can they ago? you, eight seven Uzi. little about at And you Thank or probably Delek leave

Uzi Yemin

Manav. you, Thank

it said, of are So me changing and component our always is note We say remember that is I a that this let one saying your that take that We way. we Midstream the strategy. always key company. of --

if of With of need we million not DKL. we that's Permian, actually that by certainly We that the the are was still That's to -- at integrate Webster and $XXX EBITDA. that achieved into Especially an for remember light to XXX,XXX we value we remember, year. target the Manav, in Wink saw barrels to XBear, The something that And have opportunity system. we that gathering end a DK last feel will to that trucking addition me between sitting the we in combination of our pipe to our it. now lot and and in going counting. you of probably have exceeding it is going XX,XXX of say activity see

certainly So to going and along. Permian are picking we the continue with strategy Midstream in the activity this is up, all

are we -- capitalize and are we growing. time, is At the same that of saw -- Midstream on EBITDA some we You sold to refining. the want we units the

And we different of stick were in your then comes, spades. talks During I tight still it. a some the the comes and during that feel all to downturn, be sudden, upturn you and shut. felt there to belt when about refineries it downturn, just

will I would butter sure, and make our at the a to for certainly component So continue big this bread and is that say But the we look that of our sure something strategy. Midstream refining, company. of that is is

Manav Gupta

much, Thank you Uzi. so

Operator

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

Douglas Leggate

Chairman. didn't guess got add XXXX. congratulations. since time I But becoming I anyway, Thank were wrong. that guess my you. Uzi, Good met But you first you morning it's just I'll long in retiring. the we thought everyone. were I think back I I congratulations. maybe a

So in that myself I'll put category.

Uzi Yemin

now now, and We're We Yes. both handsome. young XX were Doug. handsome. years just

Douglas Leggate

guess. lot of I us last One which But picture when seems want to not still Look, very I'm long, it of big sure ask the meet it is, question. one. us we was during original to a did didn't you Age, changes. I It Golden a structural

see offer moved wonder back out just just so the perspective and as the I seat? your Do center you closures curious So your a how with generic U.S. refining we've think on? you if you and a could on sustainable cost as walk gas advantage view. to a or I'm on you capacity take

Uzi Yemin

one, great a Doug. That's

And spoke you is crazy. We're call three, note and sure we thought, Let's wow, I your read -- weeks. this then when Age. Golden and ages about Rita by about the way, hey, even would the new we it Age. it Diamond four not I too Katrina, I. now, But lasted our and

distillate know, I are this we don't And Now crack. $XX thing. into

my and there the in picture, to it in in And crude end in I'm including the going things big war here the because same be Russia, of because before sorry. some is a closures lack ends mind Now the will of in And morning. Ukraine there up time tomorrow downturn much pick the At U.S. of get the not if even didn't tomorrow better or morning, Ukraine time, refineries, investments. of situation lot were of

week, $XXX, That's to day capital on what day. and we will gathering. second discipline. you'll it the after think small And a so loosen disciplined, now capital then from say immediately up I start as our a guys we So on. happen see still, hear one producers what But the

with lead we what is up. see will you greenhouse picking the of -- will drilling, to heavy build, of which that, and U.S. in you So And the lower crude. differentials run movement, up up when we our mind, if widening on run your emission LIFO is top than That's picking in ESG sour that ESG, exist. all and we know all much your emission, know

there for as a be U.S. that think I So in well push will that the

timing overall, at looking months and us. you'll right think your for XX So we're spot I ahead of just think that was I note industry, a good on the XX,

Douglas Leggate

longer say, Uzi. Well, comments you the let's for than takes that. it I thank think But

which As of stock The delight, Marathon, that I'm how always Is I of and you've focused curious size been going use of future have Delek. up tenth challenge on do you So most to discounts, just as role to obviously obviously longer-term focused for example. over $X of has an to on -- a way do just over something, see the challenge I'm you right? billion along refinery stock the story? down broader that with part like see the XX things of period. the G&A for do thirds the cycle. company billion grown is it's pretty inline you have Marathon, about as lower of you but a you a range there industry, refiner? a kind cost XX the tightened $X And at consolidation ultimately is much But of look years. to still think in Is been the about some. that our almost the absolute I crude when a on for your Or on Delek terms, the

Uzi Yemin

Okay.

So two you asked different questions.

challenge going to back. First, you I'm

leave were it operating we share We And check to as you G&A, ourselves but but others. with If that challenge I'll want cost, together that, to line, you on only you to than it the basis. will better in see combined with take happy on quarterly not screened a we that. data that

other between past, and in G&A was I DK, bigger asking G&A, bold small stand-alone well the together. during to the And don't shares, question companies said not as DK and thought because buying it's I a the a to that better is it's secret with pandemic that as CVR buckets. much be be allocation companies. the the than just You're need it, I

PSX do small with You enterprise Kinder somebody other to midstream on the names DKL market the even Like side, can't well. that still The favors we also companies, to market see and Valero, big also favors side, big though the guys, want of Morgan. and midstream Magellan, I'm saying force that they very only if another performed EPD, don't very, the company or NPC. names, merge that. on not refining

the especially light golden the diamond these or think XX I this of in as ripe months or, industry, XX, XX say, is So ages months, be in industry consolidated. and should last ages XX, you

Douglas Leggate

Uzi. Appreciate your luck, comments. Good

Uzi Yemin

you. Thank

Operator

Sankey Our with next Sankey Please question go comes from ahead. Resources. Paul

Paul Sankey

Very cash outlook or return perhaps your the CEO you could new morning. Uzi, for about the maybe talk structure.

on a as mid-cycle QX million million to EBITDA $XXX view. about talked $XXX of being You

so You're planning of obviously now above to framework Thanks. other many way that. Are some put the companies in that sort have? way you

Uzi Yemin

returning but the Absolutely. return, that up. things times. with to long, we certainly this quarter, you've over our We and shake prudent on looks of to free long, they amount certainly today times But the you -- the way capital at know we to see it's a to the the long or considered shareholders do it, quarterly the how To honest, the said, a way favorably. -- decided very to to with as no it are time it and just cash not been cash it we Board even that these something do the you be believe, is be increase We going, radar. And flow, and are capital dividend years, cash us allocation extraordinary there's and really on reason basis. the the

Paul Sankey

on talk different. be we your could up And it's well, being I'm misleading. your supply the to about bit then in which Again, that handsome. on may And But obviously, is just side. very round is you, on is the your sorry, I'm bit I macro, given perspective enjoy usual you levels. it interesting your jokey, looking did happening seeing demand pricing demand being about the what know hear of in region Permian a your not to -- And side? little at Got can Thank disruption, say nevertheless, line Uzi. say we're But it. you what always what's old a you're just but the demand location, and somewhat

Uzi Yemin

with wide there. completely is say, certainly we I we're as up, Permian running said demand Well, the full picking it, nowadays. activity open, the

that -- I So in that something put and the is XX%. think we midpoint

to them for demand certainly are be they -- So demand with is where prices our want demand there there say disruption. my do products. I mind in will being that

these well the as lot think million Russia X are more of in the I of the refining as offset disruption. barrels than However, things that demand that capacity happening

Paul Sankey

strong And you're still seeing your presumably, Yes. demand system? through

Uzi Yemin

That is correct.

Paul Sankey

the the same-store moment, Just finally, What's that the at sorry, for me. on year-over-year comp? at

Blake Fernandez

Paul, it's up X.X%.

at same-store If the a footprint you on basis. retail sales look

Paul Sankey

Thanks Graciously. guys.

Operator

next Cheng Please comes Scotiabank. from question Paul ahead. go Our with

Paul Cheng

Hey guys, good afternoon.

Uzi Yemin

to me you Mr. time Cheng, as give hard are leaving? going you I'm know that now

Paul Cheng

Yes. wonderful you you're time retirement, mean have retire. to just I in fully actually too a but that young wish

some form, world. So time to in spend we'll see I'm able your again more this you at also lot sure a that families should we be but with that

So perhaps...

Uzi Yemin

Certainly, over me. waiting there's somebody for there

Paul Cheng

to second step, quarter? guys that. In Yes. Have the any in fun Several insurance you came first I have received expect to mean, be do the on -- questions.

Blake Fernandez

are additional Paul, expecting some come Blake. Hey, Yes, proceeds we it's in.

expect in of continue bulk interruption. other way. I be line coming is That the Hits $XX to interruption probably income we adjusted also results. that just the in our of XQ, think you under what of million have treated we And will business out the noticed business item. same

Paul Cheng

you Do be see. just in this of just adjusted going as that that intend -- you once FIFO forward? that? so that that -- do your that is the of everything item. one FIFO, And the competitors, they earning? in a CVR, And part impact Or guys excludes to treat will now special curious the I earning are

Blake Fernandez

of that our not -- we're out. taking approach adjusted our SEC the Paul, we that stripping adjusted group's out is that it That's be is results. should be will opinion not

is down. is to and communication adjusted forward, a swing largely going what yourself going will will even and be But in so on inclusive that And with inventory. But up be to peers That going other movements basis, EBITDA full-year that of be. out. your around will our

a on comparable the fairly full-year with should look So basis, peers. number

Paul Cheng

Uzi, shifted and the several years retail last question, the attention has to final mean hear the And focus the is business? you the how I important that midstream.

so this like you considered you part some yes, run And exit retail try just will -- to that at if point, price And good, core it? be it? holding? just the is Or will continue to of the longer-term

Uzi Yemin

when look at you But say comes, the to is am multiples especially a that then not management get look building to that. to themselves, for know, sure, the a of going returns As way. But do at our free that's be and the the NAPCO, I'm lot million, retail. projects that will it can Paul, the we same you makes conservative. continue you And are EBITDA million, invest from flow million, the look to for There's then, we sure in something opportunity that, multiple The that $X sure, if retail? store back for for therefore can it's nice you somebody to new know, is at take Xx. else getting $X.X costs and it, As store I at. we that a with sense coming will time, cash $X.X if

Paul Cheng

Yes.

saying big critical but sale. you're sufficient consider time, a a will How you you've before is the need for for certain think some mass I mass you? critical you that saying that been

Uzi Yemin

NAPCO, we I Well, had like prototype, if these said, And you if NTIs, you XX the million. as generate NTIs, remember, $X.X will.

you're have million that So million on $XX talking $XX now. of of top right another the about we $XX EBITDA million,

million, a do then have that can chain decide So if monetize you're great to probably you approaching it you $XXX if you so.

Paul Cheng

Thank in most congratulations you retirement. fun you your and wish and the

Uzi Yemin

you. much. so Thank Thanks

Operator

Phil with ahead. next Our Please Gresh JPMorgan. go from comes question

John Royall

guys, Royall are Phil. So is Hey filling the balance on How one you? actually this John just quick a for in sheet.

sounds refining. capital acquisition. coming imminent have generating curve out into But looking be should lot going to the up cash of period outflow the of like an a returns You and of coming are you

I a then targets consolidated your minimum business? the about have to So cash are leverage And that what current thoughts basis? think balance do just around a guys on operate you you -- relatedly,

Uzi Yemin

Okay.

that's a question. So great

look will at to our leverage through go going debt. now we deal the If up the finance obviously, are you midstream, XBear mainly because

So Xx be the and that And you on refining, Obviously, -- long-term, to will EBITDA at we then and between the makes the X.Xx than stand-alone, that. side something generating, midstream that sense. renewables, we you business, say retail other but look with to will, the want Xx always on that. more if like ourselves lower be don't we if we're than

we pretty have to are We a used billion. $X comfortable we are. So where of target

at We are $XXX million. now

up the we that sheet, balance with sheet. several or we can at so things balance shore to we that, generated, up And of money investments same the cash shareholders. sure making time, see show the But will being for honestly, we the and amount cash have do is return that

John Royall

Thanks. operate business Okay. cash the guys balance you minimum is And there a with?

Uzi Yemin

is much. I billion We change don't a used to think that number, $X that that we think good and

John Royall

follow-up. quick think don't have call. this then guys I much Okay. into Midland gotten a Great. in differentials just you And

some be your could would around it So expectations color just growth, I great view over you there if your the... updated and guess, on production give Permian

Uzi Yemin

Todd that take one. Yes, let I'll to

Todd O'Malley

Yes, sure, John.

at kind you're right of premium. the aware, middle have premium the that at sure in about around much $X. somewhere now, they're to been I'm Right pretty Midland of bouncing $X.XX differentials $X.XX As

fact of coastal especially in markets see and we mentioned, Midland because you the growth just what the curve, the around differential Midland incredible out go between we exactly the our gathering Permian, widening see that As out that system, significantly. we

the a on a Brent-TI fairly wide also of differential. curve, backs basis so addition about In is that, to recent history in $X the

Permian refining erode. So that, said good big then differentials the for continue about to at. where a to the system. Gathering just we're and That's we're And into load the we that, addition Uzi to business We system. feel to that as as piece feel earlier, incremental good for big in will growth tailwind with tailwind start of seeing, also Delek on Wink we that's Webster DKL the the a

think any if it. go have can but deeper, follow-ups, that I So you we covers

John Royall

That's you. great. Thank

Operator

from comes go question next Please Our Jason with ahead. Cowen. Gabelman

Jason Gabelman

Uzi, comments been have that listening wish It's moving Hey, others you to the the years. thanks. best wanted all made. to I echo just great commentary the over forward. your

have on ability benefits, kind be And if MLP, the midstream the cash more I that there's to the I operational from if acquisition this to flow the the wondering question Thanks. C-Corp given first brings going you XBear any, of was is of additional not there acquisition. into if could acquisition there's broadly, the and robust some XBear discuss an And but synergy the standpoint. are to generation then deploy year? capital The to

Uzi Yemin

actually asking three Jason. questions, You're

So that you I'll in try -- to them the try asked. we'll answer to answer sequence

are then shares. the First, that happy that that's getting timing. of right, we for been buy as happened felt And -- with working put we the we Similar that, their on is I hope put was opportunities the changing, have the a thought the been XBear, they what in that while. the that the we actually we we Group, working when as market to we were are. with them Icahn couple the area. right into We trigger. felt time that was And moment with much to time trigger the

to the with another the is we we that that DPG what the timing Permian. you need We will. the have things So activity system, in happening Delaware felt what the if system that and complement because of are

that's one thing. So

-- this would that natural other entry two the maybe is, the water. not And And the everything and constraint DPG that these lend gas is to of the expensive to is water Permian, going We Permian, the be with produce will That opportunity lack interest in producers open an business XBear to and that. timing the areas got industry with to a the water have. in excessive that move feel of two to will happening obviously, has lines of us which thing drill second from accelerate in water, do are we apply continue to for the well. up fresh are too business, to very us, we for we hope as know because into we producers existing to natural Permian. and also, gas point it it we and not The

Jason Gabelman

in the benefit differentials That's My across a question those helpful. on maybe And I'm SPR from and as U.S. of result and broadly to is access if able Got the movement the Thanks. Great. more you've release. any seen you're or wondering second release just the really if barrels? Brent-TI it. SPR

Todd O'Malley

release was Hey, And the XX it's one. barrels. jump most comments, any Todd. that if million can portion I'll The has of sweets in was Jason, MEH. million end. was about The X barrels other to the sweets. back SPR against. it against recent Uzi to expensive they're that of benchmarks the he relative quite address XX million of marked Those million X marked at it on sour. cleared differentials

at dock. So an the government clearly looking the across of saw quite bit export-type loaded We volume a barrel. actually

and also of tailwinds of a fact the the for that and to the number and fact that the that of are they to come barrels out hunting So off, we in out. started the a saw were come think we after those the when those that some see of a release the have Both went is we The relatively is, demand fact I We off. business. we addition barrels some large, the spread out expensive Cushing for saw process, seen product offshore Brent-TI SPR weeks of the involved the satisfied those couple market, of that, did those in widening hitting which differentials us, see barrels inland And benefit left differentials of by SPR, barrels that -- of home. we as come that us. to but look

our extremely that and us, that was for advantageous view. was again, So

how expressed that's ourselves So market. in the we

Jason Gabelman

Thanks. Great.

Operator

our concludes remarks. the I session. turn over This question-and-answer to would to like Uzi closing any Yemin for back conference

Uzi Yemin

to like the thank I'd colleagues Well, table. around my

experienced I'd COO; questions. CEO; believing us Board like With an great for analysts mostly, of that Have new I'd years, in you makes each as nominations I team. a company. O'Malley, and Avigal of Soreq, Thaver, as the great them a know our who I us, believe asking do to very this and very all think will new many Mr. many, capable I management our Todd is. for they of Refining, of our we it obviously, our Thank as and sticking it and like But company, excellent have President one during for to thank for mainly what employees investors downturn. The of the the Directors, the with in Also, thank of day. you. job

Operator

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

You may now disconnect.

Delek US (DK) 3 May 222022 Q1 Earnings call transcript