Delek US

Delek US Holdings, Inc. is a diversified downstream energy company with assets in petroleum refining, logistics, asphalt, renewable fuels and convenience store retailing headquartered in Brentwood, Tennessee[5].

Delek US Holdings, Inc.
public company
Traded asNYSE: DK
ISINUS24665A1034
IndustryOil & Gas Refining & Marketing
PredecessorFina, Alon USA Energy, Inc., MAPCO Express, Lion Oil Company
Founded2001
HeadquartersCorporate headquarters in Brentwood, Tennessee, United States
Key people
Ezra Uzi Yemin, (Chairman, President and Chief Executive Officer)
Reuven Spiegel, (Executive Vice President and Chief Financial Officer)
Avigal Soreq, (Executive Vice President and Chief Operating Officer)
Abigail Yates, (Executive Vice President and General Counsel, and Corporate Secretary)
Frederec Green, (Executive Vice President - Corporate Development)
Louis LaBella, (Executive Vice President and President of Refining)
ProductsFuels, Petrochemicals
RevenueUS$9.298 billion (2019)
US$10.233 billion (2018)[1]
US$ 683 Million (FY 2019)[2]
US$ 305 Million (FY 2019)[3]
Number of employees
3,814[4] (2019)
Websitewww.delekus.com

In all, the combined Brentwood-based company has a broad platform consisting of:

  • A refining system with approximately 300,000 barrels per day of crude throughput capacity[6] consisting of four locations and an integrated retail platform that includes approximately 300 locations serving central and west Texas and New Mexico.
  • Logistics operations including Delek Logistics, which can benefit from future drop downs and organic projects to support a larger refining system.
  • A marketing operation that supplies more than 350 wholesale locations, has unbranded wholesale sales of approximately 145,000 barrels per day of light products in 13 states, and has utilization of 450,000 barrels per month of space on the Colonial Pipeline System.
  • An integrated asphalt business consisting of operations primarily in Texas, Arkansas, Oklahoma, California and Washington approaching 1 million tons of sales on an annual basis.[7]

Operations


Refining

  • Delek's refining segment owns and operates four inland refineries with a combined crude throughput capacity of 302,000 barrels per day. The refineries are located in Tyler, Texas; Big Spring, Texas; Krotz Springs, Louisiana; and El Dorado, Arkansas[8].[9]
  • Delek's system processes primarily light crude oil sourced from the Permian Basin, East Texas, Gulf Coast and local production near Delek's refinery locations[10]. In the past two years, Delek has doubled its refining capacity and gained a large presence in the Permian Basin, increasing Delek's access to low-cost crude oil and creating additional opportunities for growth.
  • Delek refinery operations are known for its strong safety records, dedication to excellence, and professional and reliable service.


Logistics

  • Delek's logistics segment gathers, transports, and stores crude oil, as well as markets, distributes, transports and stores refined product in West Texas and the Southeast U.S. These operations serve as the logistics arm of Delek's company, primarily providing support for Delek's refining operations, while also serving third parties.[11]


Retail

  • Delek's fuel brands are synonymous with success in raising visibility in the marketplace and driving more sales, from the forecourt to the shelves. More than just an identity for Delek's own locations, Delek US fuel brands – DK and ALON – are supporting over 700 independent distributor and jobber sites across the Southwest.


Renewables

  • There is increased demand projected for biodiesel, and Delek's three biodiesel plants[12] serve as strong assets in a growing renewable industry.
  • Delek's plants are capable of producing approximately 40 million gallons of biodiesel a year.
  • Located in Cleburne, Texas, Crossett, Arkansas, and New Albany, Mississippi.[13]
    • Delek Renewables utilizes a wide variety of waste stream feedstocks in used cooking oil, poultry fat, beef tallow, and choice white grease (hog fat) as well as vegetable oils such as soybean and canola oil.


History

Since Delek’s inception in 2001, its strategic vision has been to merge the acquisition savvy of a private equity firm with the management and operational expertise of seasoned energy industry veterans.

The result is a company that has become one of the more active acquirers of downstream energy assets. Delek's success, however, has not been solely the result of an opportunistic acquisition strategy. The Company's growth has hinged greatly on the ability of management to consistently enhance the efficiency and profitability of purchased assets.

Since 2001, the Company has completed multiple acquisitions in the refining, marketing/logistics, and convenience store industries. The merging of assets from across the downstream energy supply chain has positioned DK to benefit from a diversified revenue base.

Today, Delek is a diversified downstream energy company with assets in petroleum refining, logistics, asphalt, renewable fuels, and convenience store retailing. Key events in its history are summarized below:


Acquisitions/Divestitures

  • May 2001: Acquired MAPCO Express, Inc., with 198 retail fuel and convenience stores[14][15]
  • April 2005: Acquired the Tyler Refinery and its related assets[16]
  • July 2006: Acquired of 40 Retail Fuel and Convenience Stores From Fast Petroleum[17][18]
  • August 2006: Acquired of Refining Equipment, Pipelines, Storage Tanks and Terminals From Pride Companies[19]
  • October 2011: Acquired sole ownership of Lion Oil Company, with a refinery, pipeline and other refining, product terminal, and crude oil pipeline assets in and around El Dorado, Arkansas, and product terminals in Memphis and Nashville, Tennessee[20][21]
  • January 2013: Announced Agreement to Purchase a Biodiesel Facility in Cleburne,Texas from EQM Technologies & Energy, Inc.[22][23]
  • February 2014: Announced Agreement to Purchase a Biodiesel Facility in Crossett, Arkansas[24][25]
  • November 2016: Completed Sale of MAPCO Retail Related Assets for $535 million[26][27][28]
  • November 2018: Announced Big Spring Crude Oil Gathering System in the Permian Basin[29]
  • May 2019: Acquired 33% Interest in Red River pipeline joint venture[30][31][32]
  • August 2019: Acquired 15% Interest in Wink to Webster Pipeline LLC[33][30]
  • November 2019: Announced Agreement to Purchase a Biodiesel Facility in New Albany, Mississippi[34][35][36]
  • May 2020: Sold Bakersfield Refinery to Global Clean Energy Holdings[37][38]


Mergers

  • May 2015: Acquired 33.7 million shares of common stock of Alon USA Energy, Inc. This represented approximately 48% of Alon USA shares outstanding in May 2015[39][40]
  • July 2017: Acquired the remaining shares of common stock of Alon USA Energy, Inc. Operations included refining, retail, asphalt, and renewable fuel[41][42]


References
  1. https://www.macrotrends.net/stocks/charts/DK/delek-us-holdings/revenue
  2. Delek US Holdings, Inc. (DK) annual SEC income statement filing via Wikinvest.
  3. Delek US Holdings, Inc. (DK) annual SEC income statement filing via Wikinvest.
  4. "Delek US Holdings". Fortune. Retrieved 2018-12-18.
  5. "Business Entity Detail - Business Services Online". tnbear.tn.gov. Retrieved 2020-08-03.
  6. "Exhibit". www.sec.gov. Retrieved 2020-08-03.
  7. "Delek US Puts Alon USA Acquisition in the Books". Convenience Store News. Retrieved 2018-12-05.
  8. Jul. 05, Greg Lindenberg on; 2017. "Delek U.S. Becomes Largest U.S. 7-Eleven Licensee". CSP Daily News. Retrieved 2020-08-03.CS1 maint: numeric names: authors list (link)
  9. "Delek US Brings Back Megastore Strategy to Retail Segment". Convenience Store News. Retrieved 2020-08-03.
  10. Jul. 05, Greg Lindenberg on; 2017. "Delek U.S. Becomes Largest U.S. 7-Eleven Licensee". CSP Daily News. Retrieved 2020-08-03.CS1 maint: numeric names: authors list (link)
  11. "Delek Logistics Partners L.P." www.marketwatch.com. Retrieved 2020-08-03.
  12. "Biodiesel Magazine - The Latest News and Data About Biodiesel Production". biodieselmagazine.com. Retrieved 2020-08-03.
  13. "Biodiesel Magazine - The Latest News and Data About Biodiesel Production". www.biodieselmagazine.com. Retrieved 2020-08-03.
  14. Staff, TheMarker com. "Delek to pay Mapco Express $147m for 198 gas stations and stores". TheStreet. Retrieved 2020-07-29.
  15. "Delek U.S. Holdings Inc./Mapco". CSP Daily News. Retrieved 2020-07-29.
  16. "Tyler – Delek US". www.delekus.com. Retrieved 2020-07-21.
  17. "Delek US Holdings Completes Purchase of Retail Fuel and Convenience Stores From Fast Petroleum | Delek US Holdings, Inc". ir.delekus.com. Retrieved 2020-07-21.
  18. "10-K". www.sec.gov. Retrieved 2020-07-29.
  19. "Delek US Holdings Announces Agreement to Acquire Majority Equity Interest in Lion Oil Company | Delek US Holdings, Inc". ir.delekus.com. Retrieved 2020-07-21.
  20. "Delek US Holdings Acquires Remaining Equity Interest in Lion Oil Company | Delek US Holdings, Inc". ir.delekus.com. Retrieved 2020-07-21.
  21. "Delek US buys out remaining private owners of Lion Oil for $13 million". Magnolia Reporter - Magnolia, Arkansas News. Retrieved 2020-07-23.
  22. "Delek US Holdings Announces Agreement to Purchase a Biodiesel Facility in Texas | Delek US Holdings, Inc". ir.delekus.com. Retrieved 2020-07-21.
  23. "Delek closes buy of Texas biodiesel plant from EQM Technologies". Renewablesnow.com. Retrieved 2020-07-23.
  24. "Delek US Holdings, Inc. 10-K Feb. 27, 2017 9:27 PM". Seeking Alpha. Retrieved 2020-08-03.
  25. "Crossett – Delek US". www.delekus.com. Retrieved 2020-07-21.
  26. "Delek to Sell MAPCO to COPEC". CStore Decisions. 2016-08-29. Retrieved 2020-07-29.
  27. "Delek US Completes Sale of Retail Related Assets for $535 million | Delek US Holdings, Inc". ir.delekus.com. Retrieved 2020-07-21.
  28. Jourden, Aaron; Nov. 15, Greg Lindenberg on; 2016. "Delek U.S. Completes Mapco Sale to COPEC". CSP Daily News. Retrieved 2020-07-23.CS1 maint: numeric names: authors list (link)
  29. "Delek US Holdings Reports Third Quarter 2018 Results | Delek US Holdings, Inc". ir.delekus.com. Retrieved 2020-07-21.
  30. "Delek US Holdings Reports Second Quarter 2019 Results | Delek US Holdings, Inc". ir.delekus.com. Retrieved 2020-07-21.
  31. "Delek pays $128M for 33% of Plains' Red River system – Kallanish Energy News". Retrieved 2020-07-23.
  32. "Plains All American Announces Expansion and Joint Venture of Red River Pipeline with Delek Logistics". www.businesswire.com. 2019-05-28. Retrieved 2020-07-29.
  33. "Delek US to acquire stake in Wink to Webster Pipeline in Texas". Retrieved 2020-07-29.
  34. "Biodiesel Magazine - The Latest News and Data About Biodiesel Production". biodieselmagazine.com. Retrieved 2020-08-03.
  35. "Biodiesel Magazine - The Latest News and Data About Biodiesel Production". biodieselmagazine.com. Retrieved 2020-07-29.
  36. "New Albany – Delek US". www.delekus.com. Retrieved 2020-07-21.
  37. "Delek Sells Stake in California Refinery". www.rigzone.com. Retrieved 2020-07-29.
  38. "Delek US Holdings Announces Closing of Bakersfield Refinery Sale | Delek US Holdings, Inc". ir.delekus.com. Retrieved 2020-07-21.
  39. "Delek US $DK to Acquire Remaining 53% Stake in Alon USA $ALJ for $464M | | Mehl Partners". Retrieved 2020-07-29.
  40. "Delek US Announces Agreement to Acquire 48 Percent Ownership Interest in Alon USA | Delek US Holdings, Inc". ir.delekus.com. Retrieved 2020-07-21.
  41. "Delek US Holdings to Acquire Remaining 18.4 Percent of Outstanding Units of Alon USA Partners | Delek US Holdings, Inc". ir.delekus.com. Retrieved 2020-07-21.
  42. "StackPath". www.ogj.com. Retrieved 2020-07-23.

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