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US Holdings – DK – Increases regular quarterly dividend from $0.0375 to $0.10 per share

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NYSE: DK), a diversified energy company with assets in the petroleum refining, marketing and retail industries, announced financial results for the third quarter 2012.

For the three months ended September 30, 2012, Delek US (DK) reported record net income of $100.3 million, or $1.67 per diluted share, versus net income of $85.3 million, or $1.46 per diluted share in the third quarter 2011.

Delek US (DK) announced that its Board of Directors declared a regular quarterly dividend of $0.10 per share. This is an increase from the previous regular quarterly dividend of $0.0375 per share. Shareholders of record on November 27, 2012 will receive this cash dividend payable on December 18, 2012.

Uzi Yemin, President and Chief Executive Officer of Delek US Holdings, remarked: “We continued to perform exceptionally well during the third quarter and delivered record consolidated net income. Our operations continued to benefit from elevated Gulf Coast refined product margins and solid demand for our products. Utilizing our feedstock flexibility at El Dorado, we processed approximately 11,600 barrels per day of rail supplied crude and increased locally sourced crude. This flexibility limited the impact of the continued suspension of crude oil deliveries from a supplier’s pipeline, resulting in solid performance at El Dorado. At our Tyler refinery we processed slightly more than 60,000 barrels per day of crude, fully utilizing the refinery’s capacity. ”

Results during the third quarter benefited from a benchmark Gulf Coast 5-3-2 crack spread that averaged $29.96 per barrel during the third quarter 2012. This was similar to third quarter 2011 and an improvement from $25.42 during the second quarter 2012.

As of September 30, 2012, Delek US had a cash balance of $317.8 million and total debt of $372.6 million. This resulted in net debt of $54.8 million, which is a significant decline compared to $205.4 million at the end of last year’s third quarter. Part of the debt reduction this quarter included the repayment of the remaining $38.5 million of debt that was owed to an affiliate of Delek Group, Ltd. from cash on hand, which is expected to reduce interest cost by approximately $1.0 million per quarter moving forward.

On November 7, 2012, Delek Logistics Partners, LP (NYSE: DKL) completed its initial public offering. Through this transaction, Delek Logistics Partners, LP sold 9.2 million common units and received $176.2 million of proceeds net of estimated transaction costs from offering 37.6 percent of the limited partner interest in the partnership to the public. This includes underwriters fully exercising their option to purchase 1.2 million additional common units. Delek US, through certain affiliates, will own a two percent general partner interest and the remaining limited partner interest in Delek Logistics Partners, LP.

About Delek US Holdings, Inc. – DK

Delek US Holdings, Inc. (DK) is an integrated downstream energy business focused on petroleum refining, the wholesale distribution of refined products and convenience store retailing. The refining segment consists of refineries operated in Tyler, Texas and El Dorado, Arkansas with a combined nameplate production capacity of 140,000 barrels per day. The marketing and supply segment markets refined products through a series of owned and third-party product terminals and pipelines. The retail segment supplies fuels and merchandise through a network of approximately 372 company-operated convenience store locations operated under the MAPCO Express®, MAPCO Mart®, East Coast®, Fast Food and Fuel™, Favorite Markets®, Delta Express® and Discount Food Mart™ brand names.

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edliston
Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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