Earnings call transcript Q4 2022

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Operator

Good day everyone. Welcome to the Fourth Quarter 2022 Delek US Earnings Conference Call. My name is Jamie and I will be your operator for today's call. Please also note today's conference is being recorded.

At this time I'd like to turn the conference call over to Rosy Zuklic, Vice President, Investor Relations. begin. may you Rosy,

Rosy Zuklic

Mark Chief material Operating Development, presentation as EVP welcome Participants and Delek the found be include on CEO; and President And earnings Avigal on fourth conference other EVP relations Hobbs, and members. Chief Delek EVP O'Malley, call. today's Todd section website. Reuven as of management to Corporate Officer; afternoon. Financial Spiegel, Today's can well US the the investor quarter Soreq, Officer; Good call will US

Slide Harbor forward-looking X may We'll statements as common. actual statement. during from here, as results included cause Factors well materially filings. our actual results in contains Safe are SEC be to that could today's making call differ differ today's an our

call turn Avigal. to I'll that, With the over

Avigal Soreq

you midstream, Good us along capture were for Delek opportunities Thank afternoon, joining was $X.X was best strong thank was and year this. and condition billion. Full And everyone. for deal for the Rosy. refining we US. ever adjusted XXXX EBITDA today. to you, able Market

fourth quarter, total unplanned EBITDA despite million, the the mainly strong. were at $XXX spring downtime, was big Adjusted refineries. results During

ensure and Third are to we and operation. safe we and operation the taking reliable do color more action

priority the returns past I As in said is for a shareholder key us.

returned $X.XX announce pleased half quarterly per the state million the are dividend X% million of During regular to of we $XXX we market additional second $XXX to Within capital. share. to year, increase XXXX, the dividend XX% in with shareholders DK close to an this in and

about our Looking future. forward, excited we are very

to achieve alternatives strategic actively parts retail corporate the objectives. and On the are the structure, logistics evaluating we sum of for

structure. zero-based we launched budget on competitive improve On position to the operation our the side, cost

milestone are downtime significant do the We Delek important XXXX. the scheduled finished team. This on Delek's budget, have We process we and the any turnaround planned turnaround not are late mark said, team starting an of we on for plant. story. time on the proud The until of refinery

we during capture positioned market are well opportunities So to that time.

over speak to now, will And Todd it operation. about hand to I

Todd O'Malley

throughput Thanks, the was unplanned We make primarily quarter approximately was when quarter. Big that our XXX,XXX and during and reliable us focus refinery on Unplanned is but The control. improve we crude by in a opportunities Avigal. and system regroup operate, that operation only downtime Fourth of and for incidents and we take steps across barrels know at Spring reduced environment. communities not fourth areas day. business per the to rate us, we driven of the where to see safe the This financial the leads and employees, the which priority a for the can stability contractors we because wellbeing protects reassess.

our milestone X example recently man a Springs worked over Krotz without time lost and is hours A a of refinery, our good employees contractors safety achieved where injury. million

would work like As significant refinery. is difficult our the at Avigal incidents completed their on our safety their to and in we mentioned, have for turnaround contractors and a Tyler turnaround Delek weather. and partnership. zero achievement Refinery just and with finished for I budget fantastic our This for time process on a hard employees thank successfully

well logistics extremely quarter. Our this ran segment

bear and the reflect successful of the driver Delaware was integration big this, Our earnings the three record assets.

Delek sees track its the Logistics in business, sustainable a of DKL continue growth player. midstream and to be strong well growth base Permian While from opportunities to benefits long-term, continued see record positioned we its and is footprints. Delaware

Reuven through to will the call With go quarterly turn to results. the that, over I

Reuven Spiegel

Todd. Thank you,

or was $X.XX loss per per So net $X.XX share. for with $XX of or fourth the adjusted period million, Net Delek the XXXX, income of US loss quarter recognize $XXX they share. million

form the returned we to reached pending. During of only $XXX million in shareholders quarter share also the purchases

that We this highlight inventory presenting adjusting million adjustments. million. we quarter this impacts, X, Adjusted is EBITDA largest this results of quarter. FIFO was adjustments again have The for these relating factoring $XXX believe which after our was And in $XXX on peers. our to adjustment impact we Slide align with EBITDA better

of by Slide of On we were adjusted This in lodgings. XXXX, of by Gold the our XXXX, refining. significant fourth Coast quarter to to the quarter primarily the in market XX% over cracks is the higher X, period results with period fourth EBITDA from fourth provide was a waterfall XXXX drove quarter the Compared segments XXXX. improvement the primarily higher

quarter, that in X Slide driven million On late present events during by the We the largely $XXX withdrew in cash occurred the we two waterfall. cash flow quarter.

unfavorable $XXX closing This an effects cash with in Citi. in resulted the quarter. inventory million first full was amount intermediation the First we of agreement favorable associated of the had a timing transition flow

and was the resulted in flow associated Spring The Big of in XXXX. cash $XX the unplanned unfavorable favorable second working item an event refinery. timing cash a first flows cash of capital at impact downtime this amount a with quarter was million

up The Slide for program primarily maintaining million. in largest have a is projects and $XXX On makes XXXX dedicated of CapEx the large a capital XX% the the our expense towards and The dedicated capital XXXX were remaining sustaining capital of of But integrity we logistics. assets. expenditure the portion of $XXX of both time XX% is X, on during single basis. million for turnaround consolidated refinery

covers slide items for last the first quarter outlook XXXX. The of

organization we our reduction be executing million $XX move Q&A, improvement These improvements to an We're of process on $XX cost to $XXX to or million. in million million efforts. I the rate we million $XX million approximately cost and may in be lower in improved markets. improvements expect XXXX and an to to $XX XXXX. Before Annually, expect about wanted changes update and $XX additional give run P&L the to

lines questions. of I will open now the

Operator

your gentlemen, time question-and-answer our comes ahead and from Instructions] at go begin the question question. Ladies Royall today from [Operator this Please first And session. we'll John JPMorgan. with

John Royall

my Thanks taking for afternoon. good question. guys, Hi,

the on about the update thinking pair can business retail needing a portion more So some start order output? of maybe with with detail parts valuation the needle you're you kind separate of flows meeting do the we in and/or lock. potentially How an cash that just some refining between logistics little to on out of realize how steady thread to on of but streams just to

Avigal Soreq

Avigal. Good afternoon and our John, thank joining you for call.

of Our the returning number friendly of policies with consideration market to investable of a be over during in invest, a cash XX% that's demonstrated cap. is [ph] We the subset $XXX the a to one of obviously, sum the And of half shale. which of year second is just million debt. company

on both in And evaluating side, the opportunity different, opportunities in of the look different. those they So bit each as should release, say we're we retail. completely or logistics said, one press a

need. into maintain we We much EVP the obviously that words? able manage we the to Mr. said So the Corporate a Mark details, flow we we but opportunity to colleague looking need assets Hobbs, we maybe cash need and cannot for Development, introduce EBITDA say a be on can the good it too the how maintain to and you me go is table, to to important of new here colleague, few

Mark Hobbs

some options my October opportunities and unlock business obviously been of of And of in company, all Thanks. vocal focusing Sure businesses. since the joined the kind across our the We've And focus very looking in good question. inherent on has segments solely been value John on Avigal. a about to at I evaluating that's our parts. and

sure and have our know focus we as for our goes want growth, the things without doing additive you segments businesses say that additional we to positions but sole would across we're this, retail that what the across one shareholders. really drive that all businesses mentioned I the something here. Avigal that's make to question thinking and look for I our That's solve midstream future about we for is that's value of

our types want I'll But a about make cashflow on additional it to all growth. do leave business. accretive those that be anything things. really for we and for point you of position So there. focused And of good growth will segments we

Reuven Spiegel

everybody. do, have very announce. obviously, this point, don't we At we when be to transparent anything we'll with But

John Royall

read maybe -- saw I think thank switching capital we think that a going XQ? that? there be Or maybe may And to one we dividend. quarter read understood, not guiding then won't be should don't that ahead in see Should forward? that buyback. on the Good you. you into Then How But to there's into a interested bump the should to guide allocation. we we

Avigal Soreq

on just we a will that little So elaborate bit.

and it buyback. So is our reduction part condition balanced intent between stay is debt be to where is,

with to the the for a buyback guide demonstrated could We XXXX again, billion that that. we remainder buyback a we for that of year million. $XX the half in between goal the is be over And $XXX be on second around do of did to of prudent total billion. $XXX return Our we the

be of ourselves. benchmark friendly that's to front invest to share that is intent Our and to keep in we doing put the

John Royall

you. Thank

Operator

Our next Sachs. question Mehta question. Neil from Please go ahead comes with from Goldman your

Neil Mehta

thanks, last I expected on think Yes, Big drive Well, operational improve as Dorado, months Spring. assets, a one the capture have And And perspective? maybe I through you higher a to just than you the each profitability where do and people opportunities quarter love the can perspective Tyler, Appreciate you refining where some Krotz of time. guys. are from feel El and go couple are you think to there ago. was a continue tougher would

Todd O'Malley

terms question. the the of on I assets. remarks a to it's in success the we Neil, want prepared place my here, Todd. environmentally Hey, and reliable, operating Look, said ultimately getting We being key responsible Yeah. to to our is journey in safe, and for that we're know as be. Thanks that

improvement the we've on year. reflected think rest were done and the think some and you rate during in 'XX to folks call, the that able capture see the of I good things the throughout I

As a the number different make across we've initiatives to had of talked we've improvements. fleet about,

in reformulation and at number up We've bumped That's the creep of and seen definitely facilities. the in some particular. yields, some even catalyst We've a Krotz QX, done others. of

that So -- didn't BSR outage. make a making coming our we that. asset mistake continuing And learned, make great a incorporated operating to lessons sustainable in had we our viable again. and of taken And that we've the asset structure. planned Unfortunately, that in a out job that honestly, into won't We've we semi-planned do mix. long-term

every looking Tyler on. we're something turnarounds. every a first We're of years. go turnaround focused standard lot obviously a each fruit that I'm into is facility facility, day. very, setting we're not going And very looking the asset, there. turnaround because product Again, out And specifically around major coming to it's day. in at, of looking the that for eight the So, mix slate proprietary. at We're over just at at highly But we're stuff

blueprint solid it go done thing what a going I the I I'd very And think of job. is, think safely, we conditions. 'XX. safety for plan Challenging weather that major mentioned now QX to has done don't we're events. the process And team do safety phenomenal no lays real on We've that events, other no a basis. forward until work any And have a

So there. the out that environment to a runway be us really long, nice strong that able macro to see capture we gives

Neil Mehta

that's how Delek's you, is as great around we of to operations-driven, XXXX and the has about about Because, which as conditions. captures outsized XXXX. it A thank period And where differential, you inverted. was market was And middle think lot perspective. now the more been of refining much profitability versus from challenge talked the about

are community is markets I less like figure midcycle the environment what the an out where environment to investment looks the so favorable. think in finding crude or And trying

on the your we'd that up crude kit. sets and environment Thank So you. perspective your forward how go for markets love

Todd O'Malley

over I'll thanks I'll on company. of of weigh market TI, half year views. again, no, let premium Avigal last think the take where power Look, earnings relative Yeah, demonstrated the Midland kind the first in we've I traded the a at then of Neil. question, the to

done system well at catalyst the Again, think improve a by to obviously I point. So yields, that's this established reformulation. we've pretty throughout things

the But better We've system, give mix and our I done the synergies system, strength given netbacks. logistics to perspective, product a do in will of how that throughout good things think, the ran changes again, Permian year, the we're continue that. between the And looking some at albeit us obviously Tyler around. QX turned come out be of Basin, outside as during the just we well from demand in place a we

on on views forward Midland go let Avial differential I'll the are comment what basis. our on a

Avigal Soreq

are how Neil, Hey, So, you?

Neil Mehta

Thank you. Avigal. Good,

Avigal Soreq

in a in the So basin just basin have prolific that prove commitment the the think to the for we one demonstrated is to in And itself the the and itself not world, future. Midland long-term investment And I will prove U.S. the the was of and obviously able be invested lot that.

the going of increase production to a go start year. of this is nice we in was that that's a at around and footprint we our mainland Today, of forecast barrels XXX year XXX the all day around the way production. And X.X see million to to rise,

the going way pipe about So capacity close the the that it's to put us permit. XX% at to of

demonstrate Over X.X fit the Basin more a to of time, to going in differential We to our between actually the Permian configuration. optionality. to going we refinery have dry have in respond and and going our X obviously to to

already So it this think for we're XXXX that how be flex in slide. is XXXX the half all second beginning that time, pivotal on something of the the looking of improve we basin? the always goods will I -- can the and But Permian of year

Neil Mehta

Okay, thank you, Avigal.

Operator

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

Kalei Akamine

on Kalei is Hey, for Doug. good guys. morning, This

want a follow flow and to capacity when fully understand for you how cash burdened Refining the DK John's I guys free the for for view costs. is corporate And thanks up So question. question. the question first the cash all to My it's taking

If us retail you're walk or whether I able of makes not. separation through logistics it core by and/or to to sense? would understand the stand the And whether help can itself think business street assumptions, a those

Avigal Soreq

for question. the Thanks

but it risk put the will cash we the really depends in be, that outcome us So of what's a any do not to for to the going going transaction, company. flow are total

So let's make clear. it

is going that the out. be business. take will volatile well mothership, business, transaction to going to the transaction And into about not going to jeopardize are thought going different any we'll know to We we'll make to some And that which any a we perform a think do transaction downtown consideration we're scenario. we're it's a refinery

if we're just going going to deals, proud. probably you past, that best the transaction enough, can the not the have said industry the grateful one. in confident are we're make and Luckily right to be that the to get one we're to we not box. one in So check all to those we the I've perform could the

Kalei Akamine

as Would Would bigger you something the selling multistep guys DK, some get at acquire So they through that refining a this back in look M&A. potentially process? out you of to for Corporate? case consider the to DK

Mark Hobbs

there's options now. such right Thanks Hobbs. earlier operate I for as look lot a anything Mark continue to Avigal as the question. a will of the that do, table things to is have all We in this we remarks, Yeah, through done for sets way we But up to multistep ability a different would process. in at mentioned different it on do my anything is be the cycles. us said, the businesses effectively succeed, continue the But to

all the strategic to our options. And assets moving going assets involves so different the refining between, company And company. and that back to evaluate midstream we're

Kalei Akamine

question. We'll it. for open appreciate our my for I it. Got keep eyes second that

should cost revenues? or and for cuts as offsets example, think I each there we'd an corporate? gross expansion cost optics details cutting being are And margin, appreciate your EBITDA any plans, buckets being from understand to we the bucket, how some in much the

Avigal Soreq

let's budget, I the to do So think, OpEx about want you it? take talk

Todd O'Malley

budget No, The missed the I absolutely. the of just question. --sorry. part last zero-based

Kalei Akamine

Or that are second should generating? you're cost getting million $XXX be offsets The does revenue there you're for of cost revenues the understand cuts part EBITDA? into certain million we cost of from EBITDA centers that expansion? $XXX an higher example, question about lower might cuts, the to of if translate because talking be was, of any rid So

Todd O'Malley

it's a a we're $XXX it we sustainable, the to there are actually, on plan even clear basis. to going onetime that the want be could as though cost, supposed run-rate to million now, restructuring make just No, be see right see

to year, to a to to XX, $XXX we're million be million next $XX million, year. around XX likely bases $XX recognize So going on most run-rate direct this And EBITDA. the contribution will which

Kalei Akamine

Perfect, sneak. and just I if can

Rosy Zuklic

the could of come make Sorry, going in it cost to not it's to be line, in form the out -- just Kalei, just sure, of that the it's sense purely G&A

Todd O'Malley

that the improvement margin mentioned and both remarks I on cost referred is reduction.

Rosy Zuklic

up sure just they to specifically it, I I don't that. asked costs. want because just picked Kalei right. that's make on Yeah, that know you

to it out of of so as not be to going coming form just could purely line, increased well. be margin be it just And clear, is G&A out of coming the the

Kalei Akamine

they Got could offer If you items it. Can this one in. I one quarter? reverse some last I on those appreciate will not? sneak that. And the one will onetime hit which cashflow very if color items of or that

Todd O'Malley

of track to us for previous your will fourth $XX onetime, restructuring $XX the we I've on G&A, million corporate, be had the the to mean, That mentioned in are is quarter G&A for goal which on I and cost allow mid-XXs. million question. already be of of the part company to that G&A Well, our the

Kalei Akamine

flow about I quarter. odd affected in [multiple what cash about the the was $XXX more speakers]? like that some seems It items fourth thinking was here there looks like million

Todd O'Malley

Well, them the, XXX were the we actually received I And in timing of mean, during January. XXX issue. a

are million inventory The impact or FIFO the other really impact. $XXX the

compare if us put positive all that would you number. So in have that a together,

Kalei Akamine

guys. I appreciate Thanks, it. Got it.

Avigal Soreq

Thanks, Kalei.

Operator

our question Scotiabank. your from Paul next with Cheng question. go comes And from ahead Please

Paul Cheng

the And afternoon. guys, it margin how back question? Can bucket. earlier million you go the the kind just How $XXX margin will I Like much improvement? is be separation? that you separate the the possible by major I different improvement headcount can think, out on of good where reduction much maybe into is expect that saving? on Hey,

Avigal Soreq

just the in to G&A ballpark? you? to XX% how OpEx XX% of Avigal, Paul, XX% a Hey, would XX% and Yeah. the actually So I are XX% it's ballpark number

Paul Cheng

margin that, if do you or how OpEx And is reducing your XX% by improvement? about these G&A is do you the all and So many? how XX% and XX% headcount, XX% in how

Avigal Soreq

it. get to are not Well going around specific we

want discussions, we have efficient, reliable they're You the smart, but that and a obviously understand safe and if probably most to company. sensitive

going safety the And way. we're we have to reliable get not it jeopardize on we advice going right So a to that. forward. company do going best-in-class once great We're on from

Paul Cheng

set to back the look Spring, necessarily if overall. you to wants refining at into have timing some that of CapEx not issue means issue cultural spend you're thought Is Big having one go to to you help do issues you the the or apologize. not that just need is skill outside. issue, or process see you the may not need the get to I think from reliability. or reliability or we that asset-based just And it just This but sufficient are, where you where

Todd O'Malley

Paul, think I COVID. coming look in like on the There like obviously end staffing out if Yeah, now. you everybody we at everybody rationalization the are that cost look, struggled all of industry, cuts, across of the industry, during else back we

I conducted at turnaround major challenging We've that done time we've on think and on just obviously, Tyler. conditions. a budget successfully

people the So place, poor think of in issues really up terms have of margin that some I in caused some the the of just were COVID to by it's kind we environment. playing -- really the catch of

we Big capacity. the very all-time year, the at Spring record event well, above of utilization ran other look than you the had. So, did majority we nameplate very, throughout the what that And system high we

forward a I something basis more should systemic So, the treat you a think opposed one-off as as in that's to this company. go on

Paul Cheng

may during just now postponing So some on just of and the pandemic, you that. such up the When guys basically playing there's that catch reliability it's issue, deleting be as maintenance you because believe, if yes. activity a that

Todd O'Malley

And think at to that. I'll done leave it I us. think experience. That's not everybody's industry unique I

Paul Cheng

. mark-to-market on end you if result the RVO probably is short balance any the also impact the debt this final think what at And Can due the I year? And the of that the is quarter to liability? share on on there fourth Okay. is meaningful Reuven for one, sheet

Robert Wright

Robert this Officer. Wright, is Chief Paul, Accounting

that As of you our information statements. financial know, level we don't within disclose

Paul Cheng

meaningful you fourth tell liability? due Can us impact that, to quarter what the that any does P&L mark-to-market on

Robert Wright

impact rent no price market beyond Yeah, volatility. there was

Paul Cheng

Thank do. Okay, you. we

Avigal Soreq

Thank Paul. you,

bet. You

Operator

ahead next Please Our question go question. from your Instructions] with [Operator Jason with Gabelman comes Cowen.

Jason Gabelman

on the through? Hey, to taking first parts mention of you're a And was same, goals I want the want say do retail the kind call, exploring. are And I if everyone. the from the DKL parts the unlock. main DK. case? of the that Good of the deconsolidate the any to additionally, suggested that of last Is the we contours of this some on that is, the my prior to unlock Thanks know of there I one that being driving I options understand earnings you're potential questions. which the should really question to management force going is for of call, the footprint valuation still on the part afternoon. some wanted why or wasn't ask

now So in change play? time that between in retail did and something we're is now Thanks. is

Avigal Soreq

thank And you, Jason.

to be goal And end company can as a call believe we believe it. the And is that that's for case. the in in to good one said Obviously, is we with share, about So get the DKL, past, there. I said and than we previous good investor. go still that more that some our a around actions way there we

We release, -- And relevant. did you press almost in our can you're you in all either go go way, not retail. the retail all about the big comment belief a either is put

base should the to bring we thinking ourselves, is and best shareholders. asset we're the best how obviously, hold, what So always to return

very need are will we going be table. that to with to we you. all hope are the on up that the happy you very is you deal be that happy And and we certain showing So end everything and proud

Jason Gabelman

$XXX of why where it that over like and quarter. see last levels Is And quick I'll Okay. reduction. gross course the this debt reduction. Doesn't materialized ones, And of to On costs OpEx going million related appear was quarter, cuts, to Can that discuss energy to cost $XXX that to that got in or XX% then debt the There's you up. year? together. any is all separately, then follow my million them think the two underlying? XX% you you ask Thanks.

Avigal Soreq

so. Yeah,

that, an the of energy, consumption it's is it's -- component to if if the the price. there energy so So regarding

that going So going to gas not billion natural you tell $X and are reduce the the cost by on down. we to bet we're goes

So that's real. not

market that's what ourselves. that's what the we us. gave can And So not, that's do

So answer first. the that's to

we with can and And it, around we as safe as an trying if provide is about are the it's about So possibly consumption to the not natural you component the straight. gas information be there are energy price.

put let's aside. So that

has Reuven Reuven of and of around energy a lot lot to the around -- their and reduction probably of has more give it. a speaking debt wants energy and

Reuven Spiegel

So debt of the of end to of actually it execute have kind but unplanned until the to debt buybacks the million I've doing the buybacks, disrupted million the a end we push events We of events November, we our reduction. were and $XXX up plan. the on that both as $XXX mentioned, the of track reduction result did timing and

I go reduction I mentioned forward. on before, it will We back as to think we and debt focus and buyback go

Jason Gabelman

thanks. Okay,

Operator

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

Roger Read

ask question dead going Yeah, here it. the I'm a good put little the going beat into to to restructuring afternoon. with horse I'm but more

two a I to curious entities? of you DKL. planned call you're down DK it that dropped opening about inside of equipment think looking process biofuels were overall the or the to like business Wink that when Webster an Is you the enhancement, that up of improving are the other things overall factor to see still be and value how complicating originally as here and as assets some value, at So was let's such the some

Avigal Soreq

can then finish. start can I and Mark

Mark Hobbs

EVP Sure. Corporate questions. Hobbs Yeah, Roger, really sure. appreciate the Mark here, Development.

on in to well our said the looking value I business to as I we're as our and we at going be set of the the of to specifically earlier options looking lines in ways business businesses As forward. segments, mean, table. kind the unlock all at am inherent of all that's successful, all those call, across up

you plants, about us so And areas whether or that's whether biodiesel on consider of to business. think other decarbonisation that's for the our when you when

opportunities advantage of looking development leverage decarbonisation and a around corporate location kind from carbon it's in we fuels et standpoint, existing What for have we appropriately, to evaluating a were whether general, business, configuration, of future. as low is opportunities, a can in around sort our cetera the where assets from seek we from well a where or competitive our just

at that And and we're constantly around so that's organic looking evaluating, opportunities something that.

we Webster fits the how mean, captive midstream to particular, kind think of things. US in and I scheme As a of in that's think and of obviously about overall kind the about refining kind asset. not of Delek Wink that related

more so traditional kind third-party midstream, And it's of asset. of a

we something that term, best And thinking that's should so is value assets those as proposition when the for think be assets, about about obviously where longer and where well. we're

Avigal Soreq

add to Just to that.

make So is that the cost every the to table. That's something deal not deal of that. in we're off return are something to biodiesel a it which we or into make we we're competitive looking XX% trying to looking that obviously, the capital like have, back just the

accretive that we are, shareholders. deal if should to exploring every So we're be our

criteria. the So that's main

Roger Read

point? to I range a kind know a Webster a thought year Appreciate is willing generating if that. to We've roughly don't that this but at $XX comment of that, million is EBITDA. reasonable on of Wink you're

Todd O'Malley

It's type that said for Yeah, we of the speak don't is in the And can be information as therefore, Look, we we've past, consortium. Thanks Todd. question. at not Roger. something liberty, for disclose. the

to to benefit of I the at it Webster We're think coming distributions we think But leave that. planned part get of say that I there. we'll of running that obviously rates. suffice Wink off

Roger Read

you. understood. Okay, Thank

Todd O'Malley

Thanks, Roger.

Operator

Holt. question your next our question. with Pickering, from Please go comes ahead Tudor, from Blair Matthew And

Matthew Blair

hear you okay. me, Hopefully afternoon. good Hey, can

invest the have update contribution, First likely be on do is, in EBITDA you and terms there's R&D in the update any whether to question sort project on potential an of of been that would project? Delek timing, and

Todd O'Malley

Todd. my to answer it's again, invested Roger, in like Matthew, much we're the not Look, yet kind Hey, project. of

the we've million physical in over XX little aware, option an interest you're got As for actual option, XX% $XX plant.

calls, As filed company's this said previous us the second until half online some SEC that will of that earnings lead in believe year. documentation we to the probably not it's

us the of that minute well laid our safe we'll our guys as capital it's are that when exercising when will that structure, think say we make And make to we out Avigal is appropriate. a you benefit the obviously ago, sure decision. time vis-a-vis I option evaluate informed

Matthew Blair

$XX then Sounds corporate the going year-end if for segment good good. quarter. comp? corporate like run-rate in the this million And negative forward? that what's EBITDA pushed so, at And up Was by

Todd O'Malley

Reuven large through had the -- of that as then that charges $XX response. Q&A one percentage large that that in about And is hit million well. onetime of Yeah, earlier costs time restructuring segment. of We his that a amount a other is cost there mentioned was

Matthew Blair

are in the costs onetime still The adjusted Okay. figure? EBITDA

Rosy Zuklic

been that clear. million The plan been talking why in quarter. is what we cost $XX it's and year-end, the at has incentive number. really that's seeing. annual we're they're that's that the adjusted EBITDA so That's the been you're that elevated have Yeah, about But really

Matthew Blair

Okay, something it's sorry, like-- ahead. go maybe

Rosy Zuklic

quarter. It's accrual fourth happened just that in the the

So fourth that's little why the quarter a higher. bit

versus for kind accounts quarter that of So last of third the year. [Indiscernible]

Todd O'Malley

the We the fourth but it it did We're that the in did did deal forward, every quarter. going the in We and past. that's changing we second the not way do quarter.

Matthew Blair

forward? million Okay, be like million and would quarter negative maybe so $XX a negative $XX to reasonable going

Rosy Zuklic

Yeah, because head Yeah, quarter largely probably the of I to third you you the the closer barriers Yeah, to did -- the once my is accrual. say. way I that so kind to fourth is, it XX? quarter between would once and attributable in XX

Todd O'Malley

going That forward. is higher than what they bit anticipate

like guess, to million. I million $XX would So $XX

come that also that's we So back. number a

Matthew Blair

much. very you Yeah. Thank

Operator

back gentlemen, team Ladies remarks. to management turn in like closing any showing additional for I'd over the no and floor the to questions,

Avigal Soreq

you the team director you I us table, company to will investor strategy. night, our and our around business sunny. again want and in side, to And everyone. operating big the and So thank for assets are quarter. with Thank community. sell rainy to next employees of management buy board Thank the we side running and in the first foremost day to for that believing the the and to the the you, Thank the and meet

Rosy Zuklic

to feel out. you. have you Thank any reach If please questions free Bye-bye.

Operator

today's that you call we'll We Ladies presentation. and with gentlemen, joining. for thank conference conclude and

your You disconnect lines. may now

Delek US (DK) 28 Feb 232022 Q4 Earnings call transcript