DK - Earnings call transcript Q1 2024 | Delek US Holdings, Inc.

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Operator

Hello and thank you for standing by. My name is Regina and I will be your conference operator today. At this time I would like to welcome everyone to the Delek U.S.

First Quarter 2024 Earnings Conference Call. [Operator Instructions].I would now like to turn the conference over to Rosy Zuklic, Vice President, Investor Relations. ahead. go Please

Rosy Zuklic

welcome and Delek U.S. Good to morning the

statements Officer; forward-looking on Quarter U.S. X We'll CEO; include making These will material results statement uncertainties differ Conference results over can will Chief opening statements.I Joseph Factors to call. Today's SEC Harbor on contains included during may materially that Corporate the The Participants section Earnings Call. to turn today's forward-looking our cause of Financial and be our Avigal now for Avigal in are could filings. comments. obligation EVP Investor EVP and be Reuven update today's Safe here company risks call any Hobbs, presentation website.Slide statements. involve Operations; statements as EVP, Development. First Israel, remarks. no Spiegel, call Mark the as Soreq, Relations today's cause found forward-looking President actual to regarding actual differ that and well to from assumes Delek the

Avigal Soreq

morning Rosy. us joining today. you, you for and Thank thank Good

our to consistently expected strong the Basin.The Delaware DKL's priorities. Permian for EBITDA refineries first Elite Safety system. well. at and a line to position delivered operated Delaware segment our expectations. strong Award have DKL Operation to seasonality.Turning Krotz exceed like first Gathering segment quarter. quarter as AFPM. the I continue adjusted El operation Midland started over solid was the Refining, Retail in contribution have the the During improvement its to typical would the $XXX million, went and Springs with performance strategic in Congratulations.Our Logistic continued congratulate for QX. In validate receiving quarter, Basin Dorado an our Midland in in from Basin Silver another strong

value the to previous third a in is balance second, some discuss detail.Safe and of trying focus of of core priorities now having achieve. operation outlined areas I system. are we reliable friendly I've our in in shareholder unlocking strong our reliable sheet; inherent safe will first, everything being and power and each As are, key while calls, operation; the these a

to achieve dividend. on rates In shareholder this cost details shared strong progress increase maintaining to another balance throughput share our on paid and Spring progress. to the levels more Board per regular good the approved track we continue provide quarter with committed return quarter, dividends. our safety performance. the is we past. operating Big in We a remain May, We make Joseph will $X.XX you have sheet.During $XX million and the the to in in

$X.XX Our quarterly dividend now is share. per

efforts. In components. [indiscernible] sheet. on We'll progress has look our our this like balance for sheet to quarter would to talk balance DKL about made the ways make addition, I to continue stronger.Next X we It

the value midstream First, of highlighting assets. our

highlighting Second, improvements. value value Retail the third, our internal to of segment. creating And

asset dedicated the It growth XXX has drop-down would to acreage remains heart in around attractive Now to gathered let is the the color.Regarding increasing is DKL Today, midstream, additional increased to was The engine XX% reduced the business. in DKL midstream operation. around run back contracted rate until $XXX around added million classic XXX,XXX the valued annual the like the It public EBITDA. in XXXX XXX,XXX and XXXX. marketplace up focused business, around a DKL's the evolved float.I in Midland per of a were Basins.The asset context more barrels Basin. operations.Moving and organically. DKL to premier an system now a now Midland something largely give has the as into plus of bit to day Delaware that $XXX Midland and started XXX, $XXX was me into DKL's build its significant and position. story million. leverage a of from Gathering approximately from is Liquidity made EBITDA improving during progress third-party has quarter Midland DKL bigger. give this million the Delaware financial ratio system some units you Gathering

of has proud crude, The are the We that and development complete gathering done acquiring since customers. gas team provides system DKL system. the water to

the have contracts. We fully-owned systems pipelines and Delaware X interest the could well All as the as in Midland growth a venture pipeline significant these system. crude be have focus a opportunities system.Lastly, assets, and long-haul bigger part long-term joint mainly The in on the we pipelines. and key of Gathering

right business the the right are Our midstream the the to liquidity evaluating options, holders, level effort leverage tax of implication maximize DK and those maintaining ensuring tied growth, structure DKL. of DKL at to Parts and ownership and Sum for of for value

Retail the bankers to during opportunities steps we our value continue the unlock and intention to investment the Retail the value to and review more making operation constructive engage value in the Our midstream assets. a future.Moving strategic initiated unwavering, We quarter our take inherent We highlight to of intend in process on to the is progress. of to highlighting business. near good

process it. near to will the would conclude improvement sum like the the details discussion the more future.Lastly, efforts. X by cost There provide of highlighting to parts I efficiency part on are We in and

First, optimization.

we working reduced shared levels free to our capital. inventory up in the that have We past carrying

together overall to working to product our our to look in initiatives. These placement. no system. slates We managing our to and in require continue I the we will reduce opportunities enhanced cost refining crude optimizing expect product working ways and with efficient and EBITDA.Second, little are being efforts company highlight more see see and for commercial for further to on capital.Today, want several groups that We capital,

before. about efficiency have efforts talked our We cost

$XXX see we potential for cost are exit well XXXX, steps be between we Overall, As the we in rate in we expect taking additional $XX position XXXX. million to to savings. for And savings million XXXX. strong as run

turn to dedication goals.In continued additional be their support.Now towards and I operations. We'll our employees. thank on of Their thank entire I these X,XXX long-term Directors deliver over hard work our a our over value. color provide team our disciplined of would success. for like plans Joseph, in are like the focused will achieving will investors to have driving and We would call who Board to I and place to closing,

Joseph Israel

Thank you, Avigal.

Moving the that Production is to XX,XXX day throughput X. for approximately per expenses the per season.In in was In throughput Dorado, teams driving first quarter our range.In to the quarter within total interruptions. XX,XXX barrels the and system operations operating and the barrel. throughput proactively Slide the quarter, barrels the quarter approximately successfully freeze-related our in through per despite second positioned total margin was the in guidance Tyler, in first operated navigated barrel day. well El We XX,XXX per Tyler day. $XX.XX $X.XX was quarter, were In barrels estimated per in XX,XXX total and

$X.XX for Our and $X.XX Estimated operating expenses is were second production XX,XXX per throughput barrel. to per barrel, in quarter day the XX,XXX per range. the was margin barrels

of throughput the March percent Spring, month and slate this future.In the was per crude quarter the our April well Dorado serve XX,XXX [indiscernible], in rate total barrels Big of was for approximately we us the in El and During expecting optionality day. to are

barrel, impact freeze-related $X.XX maintenance. per in including winterization events including per Big from margin were related and expenses in estimated $X.XX per Operating back barrel to per January. approximately an freeze-related production Spring was Our unfavorable $XX.XX $X.XX barrel barrel

by per We self-help equipment.We in XX,XXX old is process range.In achieving and second people, Spring Estimated in crude day, barrels continue remain throughput good driven the day quarter as communicated cost on with the work XX,XXX initiatives throughput, to unit. total our Springs, and in XX,XXX focused progress for Big to in our around trades, approximately see capture past. planned cleaning throughput was barrels targets per the and Krotz the

marketing $X.XX XXX,XXX everyone, per was the including noise impact per as work. And for Planned only less in per system, like selection the XXX,XXX markets before. our front. focus XX,XXX throughput long in refining planned higher barrels on Spring in in maximizing oil higher $X.XX Dorado Crude first not high-octane position from El the $X.XX per barrels negative per an reported second In Big operations the that, to were to target in Avigal the per business the Our products mentioned leveraging does is loss implied entire the and commercial maintenance.Operating It day Tyler premium our $XX.XX million $XX placements barrel, is loss expenses by $X supply aviation throughput contribution asphalt, margin a first range. a supply barrel, barrel means leaving related regards of on to quarter, remind to barrels. and and $XX range.With our risk production quarter higher day market the inventory to in mean faced marketing mitigation.Wholesale throughput Arizona to approximately unfavorable premium a or optimization XX,XXX contributed Tyler by quarter refinery.Moving we from fuel octane trade the the was the in loss approximately storm for estimated for marketing. a barrel including quarter. $X and generated perfect million Of wholesale million in was million

First, weather margins of due the of demand approximately price in summary, for the increased to The the refining a the demand while has at in and consistent margins improved been as impacted to April, rack conditions have was economics, of West wholesale quarter in trends.In a contribution with January.Second, rack rising environment. live level well kept East mainly headwind environment our weather negatively business. extreme barrel it weather month Texas. price And fundamentals impacted environment, blenders, and as In lagging by the price good third, price the continue lowering with make conditions, was our business. progress flat profitability low, marketing.Asphalt flat $XX seasonal through products and the price challenged and especially it differentials by and in asphalt, freeze nature we the for rising also and supports negatively including per market are Midland the

with and environmental and is safety now reflected financial right progress in Our driving the and to system. to as mechanical Rosy for over excellence cost in operations business the follow.I reflecting entire continued variance. call The the and throughput for direction, guidance, performance are for the turn the season positioned expecting we integrity good will to our performance capture well trend

Rosy Zuklic

Thanks, Slide on Joseph. Starting X.

our have net EBITDA per of $XXX loss per or flow XXXX of Slide fourth from first the payments.On million program receivables the expenditures. due delivered timing $XX first in rates inventories.Investing quarter, the positive in includes Slide of $XX quarter, of and also Adjusted to is during costs.Moving first quarter marketing $X.XX was flow. Financing $XXX primarily from $XXX adjusted million dividend to of For Slide and U.S. XXXX that than million from Cash $XX working and million Included breakout million quarter capital, the of was fourth more this million. ending capital primary Cash of largely payments driver we wholesale the XXXX improvement improvements million XXXX attributable capital relative $XX a higher $XX the $XX This $XXX and in from higher in million.On quarter and quarter was distribution $X.XX waterfall million. a We discuss million largely million. partially or Refining. loss lower The year primarily grew in to to due to the activities in quarter, payables adjusted balance of the operations cash the operations share, higher capture this reflects $XXX accruals. and first $XXX share. quarter are Refining the higher cash timing offset by XX, offsetting with shows million X, flow bills of X for forecast. from earnings business.Logistics EBITDA was a million in of $XXX for results in net Delek $XX the employee-related million full is was corporate expenses had of the to cracks in of quarter to is activities

was expenditures addressing in million. and spend of Refining, regulatory capital Half projects. primarily First sustaining $XX the were quarter

approximately be $XXX are XXXX, capital still we million. estimating to For expenditures

turnaround higher place fourth Slide capital half broken in spend taking out the the Logistics year.Net Delek the on refinery cross in between is XX. With expect and of debt quarter, second we major Delek the

a we year ending XX During million outlook $XX covers cash debt, of with items. and million.Slide position quarter, down debt $XXX of of the grew the $XXX million net paid

be expenses and for questions. between the XXXX, In the between $XX $XX million, to G&A to now to second for expense between million be million, quarter and million.We million, the be Joseph million will $XX of $XXX $XX D&A interest line net expect guidance to operating addition $XX $XX provided $XXX we million open and million between and to be and

Operator

from come with question [Operator first Instructions] Our Goldman the Sachs. Neil of Mehta line will

Neil Mehta

for couple guide. you of questions A the on

the is you full QX $XXX first point, the of $XXX crops Is the just of Rosy's tracking got versus big a important turnaround? To The I year, year surprising, do that inside to related turnaround And an that test positively question $XX is of capital for capital success? later efficiency this of How Because will be program. asset. million this million? define that you got recognizing crops that you've year. million. Are think you've

Avigal Soreq

of thank Yes. all, question. Neil, for first you the

the year. in early still it's So

not this point. at are changing our We guidance

the X the turnaround, are terms still elements, in We $XXX will million the success of of right. we with mentioned. that give And [indiscernible] I

of is of we way right safe that said need to turnaround million went back same they the everyone the of to back work. is First That's cost. need -- they number back And is $XX safety. uplift one.Second are the make getting before. third, work. We the to come scope obviously, the a the We sure it's to make home we that doing the come that scope all sure and the

the the We So demonstrate well. to and are this to all as achieve of entire trades, components. those turnaround, we can in ourselves those turnaround during achieve those we one X aim

Neil Mehta

to you Are you a that to talk the at dis-synergies makes and process? business. are value in to there early decision process? with then initiated of came the any monetize how Can where look it you the this indicated unlock about we And your the process this Retail potentially sense

Avigal Soreq

will the some we I that wider the Neil. the of obviously trying Thanks, question Yes. answer do. more about process are to

call, are value the So created as us something time. something is that achieve. that's the that's for And in we third-party to important you mentioned very we -- -- probably obviously over

balance planned.And the Mark, committed is in is to make there support make as the is the shareholder we units the process. all value being the sure DK formal don't point The number mentioned, want for number it. strengths The both at to created, order we show full and -- point unit shared we goes we three both demonstrated -- we achieved sheet you value financial I We during of the that quarter started So holder, DKL the are that that to times.And want DKL that that the That's that we value. sure is two. know, maybe and obviously as process to that

Mark Hobbs

the Yes. Yes. Sure, a initiatives stress I'll Avigal. here. And things I'll touch on the as few sum parts of just well.

to on implications And the we we Delek position Avigal on As the our for is we hidden particular think we've right each in all want that call, attractive Permian clearly stress discussed governance both highlight belief ultimately in have we we ownership midstream evaluated ensuring that earlier that in midstream and in for a of value to on in we us I to from the focused mentioned order the any us, assets.And are that Basin, the laser-focused the take prior of front are still built we standpoint. in need Delek calls, find the and flow those entities we've as tax and leverage and that on structure that make Logistics cash action the options stronger that side, of those.

don't we evaluating what to to that want well come mandated So we're are future that significant that have to we front, dis-synergies And we back envisioning on that we're do options you investment that us in today. on Avigal move specific some are that with in with way hopefully from with to associated and say point, more for color But we this that things focused strategic the see we bank front. don't anything any your Retail we progressing work mentioned, front away on near as to will position, We or that. front. that is those don't the want now business. that anything But an on particular the that's on.On us of have

Operator

Wells of come will Read line from Your the next Roger question with Fargo.

Roger Read

on Yes. wider. mean guess of I little or I to anything going bit, think maybe Retail the about I'm is I'm I disposition to Neil's. up what way of funds mean use thinking else? follow kind right from a even

Webster Wink You've ownership held to relative -- of in got the of to in that's more midstream belongs your inside sort DK probably operation.

value of So the pieces for upside more maybe about little a some achieve to we DK working rearranged DKL, both as and where that thoughts think that your should you out? here of

Avigal Soreq

I'll thank the of all, for And joining start us you Yes. Roger, answer. first today.

capital about allocation that. than let's talk broader So just

in quarters, to and priority a have over dividend a have demonstrated we we few As growing the last consistent time.

a now. We quarters have few demonstrated

have a third You that sheet, the have seen right? is clear, our quarter The the improvement second is the strong demonstrated major value is to having specifically we not we priority the in initiative have in outlined progress. can due lot we we appreciate price see point DKL sheet.And probably balance buybacks of balance elected want today. this very that be the we on share strategic do to a I buyback. obviously development But -- to

And allocation. premier very where mutual Obviously toolbox asset is always asset. on very this that WTW. to it's our value [ specifically last -- of And we pay that So nicely up. going the you developed in they're the about in WTW see probably asked X are years. asset going ] we capital a

Roger Read

the of up? long just a time a there. OpEx a a front. reliability to standpoint, an we that's there. been through? guess, work through, setting Halfway away that. in last take do XX% are from and how X/X about But will improvements It little to the this I pivot Big question Spring, process? doing let Where of me No lot Yes. bit operational just

Avigal Soreq

Yes, Roger.

Joseph definitely that. very we see to So improvement. But close is

So will let I it. answer him

Joseph Israel

Yes.

really We expected, a to day are It's per allows in reliability to Spring. we cost executing meet the real us not be result, get per first basis. towards until capture of And the to improve And $X the starting the run by the we per a reduction end our around guidance improve quarter.Second our basis. as range which barrel on quarter for to last promised barrels we our second the mid-cycle our year. per like XX,XXX XX% it's the plans We improvement is the with Big communicated barrel in quarter, mid-$X consistent that past, structure. see is more one targets here we the but on target

very happy the So proud team with and that making. the and we progress are

Operator

question will come UBS. the next with Manav Gupta from line of Your

Manav Gupta

My growth and to X side of bigger the to the see And earnings the and bigger you with continues contribution continue Permian continue trying on DKL where would the from drop-downs is the in direction question to understand it a more grow I'm last I at there? you the years. with DKL increase in this or DK should moving relates in to to third-party do be to point as more to just as DKL DK. just and expect we grow part third-party DKL, EBITDA versus DK DKL? on, organic EBITDA looks mean more

Avigal Soreq

Yes.

joining us question. a First you of all, Manav, for today. great thank It's

proud the We on are did. we progress very

we'll accretive a presents be DK have those manage long if keep benefit as to can opportunity ourselves good Our to the take to demonstrated to that and that's into And a both and and on units assets we'll is look first find a first and then and papers, we Obviously, the that. if inorganically.So and abnormal priority line, the for DKL, going a them. answer and into good good presents hard opportunity the it's developing both creating that bottom the unit priority itself and -- organically to itself can and for we show so both shareholders as that share, market it's us. return the hard those into value we itself are holders and for opportunity that and can take

Manav Gupta

first Obviously, even refineries showed to understand, kit in look, to Again to all where it Big we improvement: Dorado. quarter? I'm quick X getting of pretty the is, earnings scope of just a versus trying question Krotz, like point quarter-over-quarter, And if in just what But deliver between to performance assets quarter be? performance, X good Spring quarter and XQ a fourth criterias there's we and the the last is some here the you better -- these improvement. much and were which when would look allowed

Avigal Soreq

Yes, absolutely.

our you into QX. obviously the better, that shows gave So We capture in doing, a that reflecting don't even the But was that's that to obviously in that? some some some rate. clear the and QX why and guidance is market of Joseph, of that is versus more OpEx give color better chime

Joseph Israel

Yes.

right? will and to $XX to So our markets. right? that the barrel has tool, products, if have the been with, headwind we in it less less per answer $X.X offense a quarter, is more the right left to the and the it $X.X on system. as transitioning better thinking headwind the right the playing focused events, market OpEx, and day, process Big taking barrel on this related far, the and it mainly of optimize chance this At and freeze lost you option question, making LPO to Spring end the of per will count to surprises million capture translate optimization, profitability selecting But business, the deal the In true more first a the your see get about defense, table and right more much are on was we to the to

Operator

Cheng Your of next question Scotiabank. from the comes line Paul with

Paul Cheng

least And $X.XX cost. wrong, say Krotz the I it you mentioned got another then earlier profit maybe the at that both Spring on you margin impact, to $X winter or you Big $X.XX that, close you hit, curious the maybe impact. that on as it's on call mean, estimate just storm, get Joseph, Spring, is well I but have the as also as in that

lesson order that winter can that you Is that can the it? something Because learned question. well That's the in telegraphed to Is So minimize way that we do anything operationally do prevent that? to actually storm there head. of from kind impact? before there first the is we what's

Avigal Soreq

Thank for Yes. question. you the

in crude I correct The the $X.X per So thing. to Krotz cleaning unit. was one in Springs will related trade first, planned barrel

and about we the the quarter. the way coming long of I'm a been what very glad like all we driving risk did through you mitigation. we low-margin really to instrumentation maximum are mean, make all lines, the peers in challenges executed with. throughput lessons? get it.In doing? it Big the Spring and It has frozen our it It's knew So to a season, typical turnaround and deal I to about are right? we scope was freeze, cycle And the the What it the environment,

to And process to and challenge risk gives us. better the every our position each job every people the mitigate about main and here market possible day whatever think You to is to and deal equipment. the asset with

of So team. the very proud

quarter, are the run, our ready we to think Looking things second way. I at coming good are and

Paul Cheng

question on then marketing. Second the supply and

wholesale said $XX the You lost in quarter asphalt $X was million million. and that

that be the sort third the past, And full second a at maybe the fourth then the $X will $XX quarter for asphalt million, first a quarter, giving and is so in and be will the year, I in $XX million about somewhere million. of $XX be roughly kind will think in lower of doing wholesale quarter, and in about a guidance you the saying million.

quarters, guys good are So last viewed internally them one seen a those based have in still the or several guidance we've if differently? somewhat that on you what that

Avigal Soreq

Yes.

we'll will So question. I Paul, Great that some start, permission question. and to allow Joseph more your then with color give around

downstream a of key wholesale to unit. all, that business strategic need of start the So first is we part integrated

in the So market conditions. different our value that. We see to in products place we see ability

are the So it's we business. of we tricky need when part.The to market in business model right? are wholesale, bit the a part, dynamic. dynamic and the nature first to every That second that remember wholesale day changing more of is That's that very looking because

that please. simple model the a as are it's thinking not So it. topic, not I lot And But we about Joseph a so giving that's to clear reason that of put know that. into guidance always

Joseph Israel

the look statistically, a Yes, Paul, is, range be. positive we million that $XX So mean, question, to not XXXX, supply averaged think to slightly at you positive marketing still probably place per -- I first, answer is real over $XX and the a your million, quarter. good made answer contribution full no. year When to right? I

very quarter. is really to However, around model. role between important per we wholesale right day approximately wholesale said, company, an million integrated products number a to hard through marketing it's customers.We right Like a refineries marketing, connect barrels to our that to is Avigal the it's downstream XXX strategic are playing very realize and move XXX,XXX the gallons per of which

And I'm you will to So loss million type the number. per $X.XX, it sure freeze. a January negative high a level, and others screen, Mid-Con $X.XX per through the takes gallon $X.XXX gallon RINs to get of the remember follow in margin negative between pricing the differential $XX back in

risk is better great in our can doing a job in type think I situation this team we footprint. do of So future. the exposure and pricing going our hopefully, forward, mitigating diversifying And this in

Operator

from come of will question the next with JPMorgan. line Your Royall John

John Royall

the Should follow-up had think, What's with frequent of to in for on second you a capital the in you is to allocation. in market I guess on One your XQ. talked a period. is expectation just So X-parter. but a when then cadence? we type I a that to reasoning more reasonable hikes? the time XX% quarters back more the you will And you've move I the it about Or row, where the that be X up part it's just get expect point dividend once-a-year buyback, smaller off which might for over you buybacks? a hiked for turning now, continue

Avigal Soreq

Yes.

be those questions specific. broadly, as not would both of and So more I answer will I

all key I being company shareholder-friendly priority sheet. strong a a As as said is along, us a for as balance maintaining long

we maintain a over times, investors and value something few going we and definitely our well. dividend said that consistent a that. And time as So as having value believe I will we is

I priorities elected make value So price, them around clear. to we initiatives did but to the both strategic that. are a buyback, made not do of We our for very and share point key we in in a the us.Around the lot of progress very of want it because development see

John Royall

off talk short a these this also the sale enthusiasm now you realize what expectations least have time on bit little Or and processes about business of was term think do kick X it's tougher fuel can the market fundamentally separating ago? you all? then it Do but don't at asset on margin I of the in a over merchandise adjusted at timing And retail? XX is buyer And sales. for just think you maybe or the overnight, months

Avigal Soreq

We are not process. going the obviously specific be Yes. around to

We market assets, a markets. unique position, have a unique great

progress. So good and we -- are making

Operator

next come Your Todd line will with Piper question from the Sandler. Ryan of

Ryan Todd

you've if think above over your EBITDA mid-cycle EBITDA around $XXX refining think historical quarters, generally about Maybe an margins. was X that I generated the of we environment last million in

we thinking DKL refining want of do bridge power think in -- back whether repatriate of it reliability power mid-cycle business business? your mid-cycle the is about you you to how Like think about about do businesses DK? market EBITDA the of should your where versus cost currently where how maybe to the refining improvements, How earnings be, of going forward, think of the you be is believe about -- out you you what to EBITDA it ability As or constituted? reductions, do earnings terms want into the

Avigal Soreq

question. great the for you Thank

as As we in we the earning we our that in said power is the believe improving refining past, speak.

capture better rates. have seen We

and into That's in a put time lower that lower LPO. of that. of that You've part we have seen that that. we refineries. demonstrate And Joseph a all lot key seen

want take So to you if maybe Joseph, one? this

Joseph Israel

on million basis, is $XXX think We Yes. million. mid-cycle our a mid-cycle EBITDA between $XXX to

Ryan Todd

At level? the refining

Joseph Israel

No, for a refining the position minimum this stable is it. And as company. with considering statement this entire is we surprises

Ryan Todd

I kind million probably know you well? you earlier the talked there? -- progress like don't you just date $XXX XXXX. it but terms guess, done? if still I run in worked I can feeds process to about far? greatest that to What an Are know maybe, update remains to seeing of update the improvement I of on to there? into for Maybe so the rate And $XX as it us you not, be What's or cost Where reduction I the million can't missed some, target? but are

Avigal Soreq

Absolutely.

So are focusing billion billion to $XX at around be $XXX to we exiting XXXX.

found in additional doing opportunities around that do team anything? it. to have add you well. amazing job We his XXXX, is Reuven Reuven, towards goes and very and want the

Reuven Spiegel

most thus Well, steps of far. we were executed have the that planned

put will quarter X We track steps us for million. more quarter that the the million have $XXX third on in $XX second to and

to We will $XX opportunities million that between in have identified million $XX be 'XX. executed

Operator

Your TPH. next line from question with of will the Matthew come Blair

Matthew Blair

for be And correct? Webster to market of There some to do did Wink you Delek that would benefit if January X think position kind there? in that what in reports offline impact Midland would a spreads, Is will is And that weeks. to up you widen be anticipate? out

Avigal Soreq

Yes.

not going I'm for you question. the thank to Matthew, operation. about Obviously, WTW comment So

operator in are that the everyone second long of the not XX We spread, June kind see are QX. in and or the the to line spread, widening back it the think commenting can I MEH, not pretty that Midland i.e. way the see horn half rumors of the news.Regarding those and nicely. on year, widening of all we is We

the and the like this up production. in to demonstration XXX,XXX additional increase million it's of XX, see Midland, go I a on $X.XX going production in barrels that's We probably now XX barrels per day. to XXX,XXX year think a day

is that's Midland the differentials basin going the next So which the and [indiscernible]. valve, put into

So little bit. differential a the just widen going to that's

So a that's very development us. for good obviously

Matthew Blair

and And then supply circling the on commentary marketing. to back

improvement. you're demand seeing seasonal mentioned some You

values XX% off negative also the we very but in January, to see XX% RINs lower. You're rolling

so do million And QX putting in $XX after QX? and you be in that contribution all together, marketing loss EBITDA positive think supply can the

Avigal Soreq

Matthew. Yes,

help quarter. listen, time We you the a We at still It's guidance to hard that really model in predict gave early business, I'm this guidance market but it's So well. in dynamic lot the give really the second. believe to going to not in of for the that.

to So that stay guidance. going of I'm out

Operator

the Your TD Gabelman will next question line Cowen. of Jason come with from

Jason Gabelman

unlocking back there. to how evaluating value and I just go the business wanted you're to marketing

really to of unlock started part little over were I think was the considered ago, sounds and a core like that's process it to a and changed. a try to value year look wasn't going this you when monetize marketing business something you

past over wondering just the So changed? that's year why

Avigal Soreq

Obviously, as here. unit value the in and for you the commitment, share to make question. sure the times, thank price our price Jason, the is I said many our both see that investors

that's hard opportunities. we we decided taking at look are that to we something at good and look a need the everything, And so

needs are what a think that's doing. do to that's what I and management prudent we

Jason Gabelman

guess, aren't that something line, wondering But XXX% XQ? maybe to and products is providing it any guidance. know your want you moving concrete to an as when supply forward? see to we I try just, on operating think we impact the And think and about could buy moving from in just fulfill obligations. if stay I'm about the forward, And assets that Was you at market in headwinds really not and contractual away Okay. trading you I recurring

Avigal Soreq

Yes.

So I windshield. get a safe into a reliable don't and want too has broad benefits. the operation much having Obviously, to very into

technicalities leave other, So there one to driving safe is is priority. that. and this getting that's will determined of a operations, without I it of into just And lot tell the And Jason, priority, that how a the will too are that's clear very about I'm a with that commitment a you a and and we that. works I the energy reliable each much about entity reason,

Operator

further for any There at to call questions back time. are remarks. no closing I Avigal hand this now will the

Avigal Soreq

you. Thank Yes.

our for and trusting colleagues success the is. employees order the in I working to want of support, and make company. thank for shareholders and commitment good that thank that nights And want hard I to thank want their are showing us days customers, you obviously, to our you Directors all advice our I to Thank in guys. on and I want So for here business. of you, it around I to interest the table Board commitment. my are to the for thank want our to to this this company what thank

Operator

you Thank today's will all conference. joining. for That conclude

now may disconnect. You

Delek US (DK) 7 May 242024 Q1 Earnings call transcript