Delek US (DK) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Wed, April 29, 2026 astatine 11:17 AM CDT 28 min read

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DATE

Apr. 29, 2026 astatine 10 a.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Avigal Soreq

• Chief Financial Officer — Mark Hobbs

• Executive Vice President, Commercial — Mohit Bhardwaj

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Full Conference Call Transcript

Avigal Soreq: Thank you, Robert. Good morning, and convey you for joining america today. I americium highly pleased with our beardown execution successful the archetypal quarter. The 4th is simply a testament to our refining capableness arsenic demonstrated by, one, disciplined and palmy execution of the Big Spring turnaround; second, continued advancement connected expanding our escaped currency travel illustration done restructuring of our intermediation statement and continued occurrence of EOP; third, palmy navigation of challenging macro events specified arsenic workers on-prem and, much recently, events successful Iran. The events successful Iran person created galore ripple effects successful the market, resulting successful astir 10 cardinal barrels of crude accumulation and astir 5 cardinal barrels per time of refining capableness remaining offline.

This has created an situation of elevated crude and merchandise prices, dislocation betwixt carnal and insubstantial grades, steep backwardation, and wide ranges of crude differentials. We judge the structural merchandise shortage created successful this lawsuit volition proceed to interaction the marketplace good aft the struggle comes to an end. In the meantime, nether the existent environment, we judge the refining companies which volition person the biggest vantage are the ones which person nonstop entree to crude, precocious distillate yield, precocious jet, and, astir importantly, the quality to rapidly respond to changing conditions.

We judge due to the fact that of our entree to aggregate grades of home crude, precocious distillates and pitchy yield, and entree to some Gulf and Mid-Continent merchandise markets, we are successful a premier presumption to navigate the challenges and instrumentality vantage of the opportunities created by the ongoing disruption. Now, I volition screen immoderate of our archetypal 4th highlights and strategical initiatives successful detail. Starting with the planned turnaround successful Big Spring. Big Spring successfully completed its planned turnaround. This enactment was executed safely, connected budget, and connected time, and the refinery is moving astatine afloat capacity. The superior absorption of the turnaround has been to amended Big Spring reliability, outgo structure, and semipermanent borderline capture.

Post the turnaround, we expect improved reliability, crude slate optimization, betterment successful wide merchandise yields, and, finally, higher octane and blending capabilities. With nary further planned turnarounds, we person the highest spending 4th down us. Our strategy is good positioned to seizure the beardown ace dispersed situation and respond to increases successful request arsenic we determination into the summertime driving season. Moving connected to EOP next. Enterprise optimization walk continues to thrust important value. We are erstwhile again raising our endeavor optimization program people to astatine slightest $220 cardinal connected an yearly tally complaint basis. During 2026, we estimation astir $60 cardinal of EOP publication to our P&L.