Delek US (DK) Q2 2025 Earnings Transcript

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Aug. 6, 2025 astatine 11 a.m. ET

• Chief Executive Officer — Avigal Soreq

• President and Chief Operating Officer — Joseph Israel

• Executive Vice President and Chief Financial Officer — Mark Hobbs

• Senior Vice President, Finance and Head of Investor Relations — Mohit Bhardwaj

Avigal Soreq: Thank you, Robert. Good greeting and convey you for joining america today. Delek continued connected its transformational travel during the 2nd 4th by making advancement connected respective cardinal strategical initiatives. We person made fantabulous advancement connected our endeavor optimization plan. Given the advancement we person made truthful far, we are expanding our guidance connected EOP to $130 cardinal to $170 cardinal connected a tally complaint basis. Sum of the Parts effort besides continues to advancement well. During the quarter, we completed our intercompany agreement, worked connected raising liquidity astatine DKL and made large advancement successful expanding the economical separation betwixt DK and DKL. As I ever do, I volition springiness an update connected our cardinal semipermanent priorities successful much detail.

First, harmless and reliable operations. We person made further advancement successful improving the operations passim our institution and reported grounds throughput successful the quarter. The Big Spring refinery had a beardown 4th with a beardown wide throughput and operational performance. We person continued to marque reliability investments that volition service america good successful the future. Tyler, El Dorado, and KS besides had beardown operations during the quarter. El Dorado has showed further payment from EOP improvements. With astir of our superior projects implicit successful the archetypal fractional of the year, we look guardant to seizure the vantage of our operational EOP and strategical advancement during the remainder of the twelvemonth and beyond.

Now I would similar to sermon the advancement we person made connected our EOP efforts. As a reminder, we started EOP with an purpose to amended DK currency travel by $80 cardinal to $120 cardinal starting the 2nd fractional of 2025, with absorption connected improving wide escaped currency travel procreation done this cycle. The ground of this EOP betterment was further outgo reduction, but much importantly, by making structural changes successful the mode we tally our company. These structural changes are tied to our outgo base, the mode we tally our refineries, the mode we bargain our crude, and the mode we merchantability our products.

During the quarter, we estimation astir $30 cardinal of this EOP currency travel betterment person flowed done our P&L. As you tin see, we person already achieved our anterior people of $120 cardinal of tally complaint EOP benefits 1 4th up of schedule. Today, we are further expanding our scope of EOP betterment to $130 cardinal to $170 cardinal connected a tally complaint basis, starting the 2nd fractional of this year. I'm highly arrogant of the squad for adopting a civilization of continuous improvement. While determination is inactive much enactment ahead, I similar the absorption we are heading. We besides proceed to marque advancement towards our Sum of the Parts goals.