Delek US Q1 adjusted EBITDA rises as higher crack spreads lift refining margins

Overview

• US downstream energy firm's Q1 net loss increases

• Adjusted EBITDA rose sharply yr/yr, driven by higher crack spreads and logistics margins

• Company completed Big Spring refinery turnaround and raised borrowing capacity by $300 mln

Outlook

• Company expects improved margin capture with full system back online after refinery turnaround

• Delek Logistics sees continued strength from increasing third-party cash flows and asset optimization

• Company aims to leverage enhanced reliability to drive performance for remainder of 2026

Result Drivers

• REFINING MARGINS - Co said higher refining margins driven by increased crack spreads boosted refining segment results

• BIG SPRING TURNAROUND - Co completed Big Spring refinery turnaround, which management said positions it to capture improved margins

• LOGISTICS SEGMENT - Higher wholesale margins and increased interest income from sales-type leases lifted logistics segment results

Company press release: ID:nBw6rKGMka

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 8 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the oil & gas refining and marketing peer group is "buy."

• Wall Street's median 12-month price target for Delek US Holdings Inc is $44.00, about 7.2% above its April 28 closing price of $41.04

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 3,873 three months ago

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