Delek US Holdings, Q3 2026 Earnings Call Transcript

Delek US reported strong third-quarter results, supported by stronger refining margins, higher capture rates and operational reliability across all four refineries. Management raised its annualized Enterprise Optimization Plan target to at least $250 million and expects the program to keep improving free cash flow. The company expects about $425 million of proceeds from 2025 small-refinery exemptions in Q4, while maintaining compliance with its renewable-fuel obligations. Management sees supportive distillate and jet-fuel markets, citing low inventories and elevated freight costs, and expects refining operations to benefit from strong crack spreads.

Delek has improved its standalone balance sheet to a net-cash position and plans to raise its quarterly dividend by about 18% and spend roughly $100 million on share buybacks in Q4. Executives expect mid-cycle free cash flow of $700–800 million and say they do not intend to hold excess cash, while emphasizing disciplined capital allocation through the cycle. Delek Logistics raised its 2026 EBITDA guidance to $530–560 million and expects further growth from organic projects in 2027; reducing Delek’s ownership and progressing toward deconsolidation remain part of the strategy.