Delek US Holdings, Inc. operates an integrated downstream energy business in the United States through two segments: Refining and Logistics. The Refining segment processes crude oil and other feedstock into gasoline, diesel, aviation fuel, asphalt, and other petroleum-based products, distributed via owned and third-party terminals, and owns and operates refineries in Tyler, Texas; El Dorado, Arkansas; Big Spring, Texas; and Krotz Springs, Louisiana. The Logistics segment gathers, transports, and stores crude oil, natural gas, intermediates, and refined products; markets, distributes, transports, and stores refined products; and disposes and recycles water for third parties. It owns or leases crude oil and refined product pipelines, crude oil gathering systems, and associated storage tanks, and operates light product distribution terminals. The company was founded in 2001 and is headquartered in Brentwood, Tennessee.
Record fuel margins, buyout talk, and biofuel waivers lift Delek
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Record refining margins on global fuel shortage U.S. refiner margins hit all-time highs as diesel and gasoline stockpiles sit far below normal and Middle East supply is disrupted. Delek's refineries earn more per barrel, directly boosting profit and the stock.
This is the core profit driver behind Delek's surge and remains the biggest force.
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Record Q2 results and debt reduction Delek reported record logistics earnings and strong profit, cut debt, and returned cash to shareholders. The company is hitting its cost-cutting targets, which supports the stock by showing real financial improvement.
Company-specific results confirm the margin boom is flowing to Delek's bottom line.
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Takeover speculation with Phillips 66 Phillips 66 is seen as the most likely buyer of Delek, whose stock has jumped 141% this year. A potential acquisition puts a floor under the shares, though the rally has already reduced how much a buyer might pay.
Buyout interest is a major reason the stock trades above analyst targets.
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EPA grants full biofuel waivers to Delek refineries The EPA gave four Delek refineries full exemptions from renewable fuel credit obligations, the most waivers since 2017. This cuts a major regulatory cost, directly lifting Delek's profit and cash flow.
The waivers remove a large expense that had been weighing on Delek's earnings.
Q3 2026
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Record fuel margins, buyout talk, and biofuel waivers lift Delek
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Record refining margins on global fuel shortage U.S. refiner margins hit all-time highs as diesel and gasoline stockpiles sit far below normal and Middle East supply is disrupted. Delek's refineries earn more per barrel, directly boosting profit and the stock.
This is the core profit driver behind Delek's surge and remains the biggest force.
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Record Q2 results and debt reduction Delek reported record logistics earnings and strong profit, cut debt, and returned cash to shareholders. The company is hitting its cost-cutting targets, which supports the stock by showing real financial improvement.
Company-specific results confirm the margin boom is flowing to Delek's bottom line.
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Takeover speculation with Phillips 66 Phillips 66 is seen as the most likely buyer of Delek, whose stock has jumped 141% this year. A potential acquisition puts a floor under the shares, though the rally has already reduced how much a buyer might pay.
Buyout interest is a major reason the stock trades above analyst targets.
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EPA grants full biofuel waivers to Delek refineries The EPA gave four Delek refineries full exemptions from renewable fuel credit obligations, the most waivers since 2017. This cuts a major regulatory cost, directly lifting Delek's profit and cash flow.
The waivers remove a large expense that had been weighing on Delek's earnings.
News & notes movingDK
United States
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Delek US Prices $400M Convertible Senior Notes Due 2031
Delek US priced a $400 million offering of 0.00% convertible senior notes due 2031. The notes mature on November 1, 2031, unless earlier converted, redeemed or repurchased, and they will not bear regular interest, with their principal amount not accreting. The initial conversion rate is 11.7219 shares per $1,000 principal amount, equivalent to an initial conversion price of approximately $85.31 per share, a 27.5% premium to Delek's closing share price of $66.91 on September 24. Delek US also entered capped call transactions with an initial cap price of approximately $117.09 per share, a 75% premium to that September 24 closing price, to limit potential dilution from note conversions. The company plans to use part of the net proceeds to partially repay outstanding amounts under its Term Loan Credit Facility, including accrued interest, fees and expenses, and the offering is expected to close on September 29.
DK · Capital · Positive Delek US priced a $400M 0.00% convertible notes offering and will use proceeds to partially repay its Term Loan Credit Facility, a financing/balance-sheet event.
Trump Urges Zelenskyy to Halt Strikes on Russian Diesel Facilities
President Donald Trump called on Ukrainian President Volodymyr Zelenskyy to stop attacking Russian diesel infrastructure, arguing the campaign is contributing to fuel shortages, the Associated Press reported Sunday. "Mr. Zelensky has to do one thing. He has to stop knocking out diesel fuel in Russia," Trump told reporters Sunday while attending the Irish Open at his Doonbeg golf club, adding, "Let him go after targets but not diesel fuel, because he's causing a shortage of diesel fuel." Ukraine has repeatedly struck Russian refineries and other energy facilities to disrupt an industry that generates revenue and supplies fuel for Moscow's war effort, reducing Russian fuel production and contributing to domestic rationing despite Russia's status as a major oil exporter. The comments followed another large exchange of drones, with Ukraine saying it struck a refinery in Russia's Krasnodar region while Russian attacks injured at least nine people in Odesa and hit western Ukraine near the Polish border. The Kremlin separately indicated that another round of U.S.-mediated peace talks could take place as soon as October, although Russia and Ukraine remain divided over territory and other central issues.
HEATOIL · Supply · Positive Ukrainian attacks on Russian diesel facilities are reducing fuel production and contributing to diesel shortages, supporting heating oil prices.
DK · Supply · Positive Ukrainian strikes on Russian diesel infrastructure are causing global diesel shortages, supporting US refining margins for Delek.
VLO · Supply · Positive Reduced Russian diesel output from Ukrainian strikes tightens global distillate supply, benefiting Valero's refining margins.
Delek US Holdings has welcomed the Trump Administration's decision on 2025 Small Refinery Exemptions, which is expected to reduce renewable fuel compliance pressure and lower required spending on credits, freeing up cash for refinery projects and maintenance. The company, which runs an integrated downstream energy business with a market cap of about $4.6 billion, says the decision supports employment and investment in local communities. Management links the move to keeping current staffing levels and ongoing investment in its refining footprint, and it gives Delek more room to pursue its enterprise optimization program and logistics investments while managing interest costs and high capital spending. Investors should watch Delek's refinery capital spending and operating cash flow guidance in upcoming quarterly results through 2025 for signs of how the exemptions affect planned investments, debt service, and dividends.
U.S. diesel prices hit four-year high as Trump pressures refiners
U.S. diesel futures surged Tuesday to their highest levels since April 2022, with the diesel crack spread hitting a record above $106 per barrel, as the global fuel crunch persists. Retail diesel prices at $5.63 per gallon are near the highest since the Iran war began, and analysts warn they could soon breach the $5.80 record set in 2022. Front-month Nymex ULSD for October delivery soared 6% to $4.6773 per gallon, its fifth straight daily gain, while RBOB gasoline rose 1.9% to $3.1351 per gallon. The spike came as President Trump met with refining executives, including leaders from Marathon Petroleum, Valero Energy, Phillips 66, Chevron, PBF Energy, and Delek US, pressing them to boost domestic fuel production. Executives blamed federal biofuel blending requirements for raising pump prices. Crude oil futures also jumped more than $4 per barrel, settling at a five-week high, as renewed U.S.-Iran hostilities raised concerns about flows through the Strait of Hormuz.
Energy Transition & Power Demand › Firm Power & Transition Fuels ▲Pricing
VLO · Demand · Positive Trump pressed refining executives including Valero to boost domestic fuel production amid record diesel crack spreads, supporting refining margins.
CVX · Regulation · Neutral Chevron among refining executives Trump pressed to boost fuel output; executives blamed federal biofuel blending requirements for high pump prices.
DK · Regulation · Neutral Delek US named among refiners meeting Trump, who urged higher domestic fuel production while executives blamed biofuel blending mandates.
MPC · Regulation · Neutral Marathon Petroleum among refining leaders pressed by Trump to boost output; executives cited federal biofuel blending requirements as the cost driver.
PBF · Regulation · Neutral PBF Energy named among refiners meeting Trump over boosting domestic fuel production amid record diesel crack spreads.
PSX · Regulation · Neutral Phillips 66 among refining executives Trump pressured to raise output; executives blamed federal biofuel blending requirements for pump prices.
The U.S. Environmental Protection Agency granted small refinery exemptions worth 1.76 billion renewable fuel credits for the 2025 compliance year, the largest amount since 2017 and significantly higher than its earlier projection of 990 million. The agency will propose reallocating the waived obligations to larger refiners in 2026 and 2027. Of the 34 refineries that sought exemptions, 18 received full exemptions, 11 partial, three were denied, and two were deemed ineligible. Chevron's Salt Lake refinery and four Delek US refineries won full exemptions, while Marathon Petroleum's Mandan refinery received a partial exemption. The EPA has delayed 2025 compliance until September 1 and is seeking another extension.
DK · Regulation · Positive Four Delek US refineries received full small-refinery exemptions, cutting their renewable fuel credit obligations.
CVX · Regulation · Positive Chevron's Salt Lake refinery won a full small-refinery exemption from 2025 biofuel obligations, reducing its compliance costs.
MPC · Regulation · Positive Marathon Petroleum's Mandan refinery received a partial exemption, lowering part of its 2025 biofuel compliance burden.
Trump weighs shielding farmers from expanded biofuel waivers
The Trump administration is discussing plans to shield the U.S. Farm Belt from an expected expansion of biofuel waivers, a move under consideration to cut gasoline prices for motorists, Reuters reported. The plan would increase biofuel quotas for 2027 by about 500 million gallons to offset damage from exemptions for smaller refineries, which are expected to roughly double from 990 million renewable fuel credits to as many as 1.8 billion. During Trump's first term, broad refinery exemptions drew fierce opposition from Midwest farmers and ethanol producers, and the issue has resurfaced as the administration seeks to lower fuel costs ahead of the November midterm elections. A coalition of farm and biofuel groups urged Trump to reject any waiver expansion, warning of severe and immediate consequences that could collapse biofuel markets and reduce demand for corn and soybean oil. Trump is expected to meet with refiners and fuel retailers in the coming week to highlight efforts to lower gasoline prices.
Energy Transition & Power Demand › Natural Gas Value Chain ▼Demand
ADM · Regulation · Negative Expanded biofuel waivers would reduce demand for corn and soybean oil, hurting ADM's ethanol and oilseed processing.
DINO · Regulation · Positive Refiners benefit from expanded waivers, reducing their compliance costs under the RFS.
REX · Demand · Positive REX American Resources, an ethanol producer, would benefit from increased biofuel quotas that offset waiver expansion, supporting ethanol demand.
BG · Regulation · Negative Waiver expansion lowers biofuel demand, reducing demand for soybean oil and other feedstocks Bunge processes.
DAR · Regulation · Negative Waiver expansion cuts biofuel demand, reducing demand for rendered products and feedstocks used in biodiesel.
PBF · Regulation · Negative Expanded biofuel waivers for small refineries could reduce demand for RINs, lowering compliance costs but potentially hurting refiners' margins.
U.S. RIN prices plunge after EPA delays biofuel compliance deadline
U.S. ethanol blending credit prices plunged Monday to their lowest levels in more than four months after the Environmental Protection Agency extended a September 1 compliance deadline for refiners and ruled on long-pending small refinery exemption requests by the end of August. Conventional ethanol RINs traded as low as $1.75, down $0.34 from Friday and their lowest level since April 15, according to data from Argus Media, after the credits had traded as high as $2.50 on July 7. RIN prices lost substantial value again during Monday's session in response to the EPA's impending small refinery exemption decisions, after falling 5% on Friday. Market participants expect the EPA's rulings to free up a significant number of credits, with refining and ethanol industry analysts estimating that the exemptions could free up 1.2 billion to 1.8 billion RINs that small refiners could use to meet their 2025 compliance obligations, after the EPA had previously indicated it could reallocate 990 million RINs associated with exemptions. Extending the compliance deadline is seen as signaling some form of RIN relief for refiners' 2026 and 2027 obligations as well, University of Illinois agricultural economist Scott Irwin told Reuters.
DINO · Regulation · Positive EPA's compliance deadline extension and exemption rulings provide RIN relief for refiners like HF Sinclair, lowering compliance costs.
ADM · Regulation · Negative EPA's delay and exemption rulings lower RIN prices, reducing demand for ethanol and pressuring ADM's ethanol margins.
BG · Regulation · Negative Lower RIN prices and extended compliance deadline reduce ethanol demand, negatively impacting Bunge's ethanol business.
DAR · Regulation · Negative Lower RIN prices and exemptions reduce demand for renewable diesel feedstocks, hurting Darling's rendering and biofuel segments.
DK · Regulation · Negative EPA's compliance deadline extension and small refinery exemptions reduce RIN demand, lowering compliance costs for refiners like Delek.
MPC · Regulation · Negative Marathon Petroleum, as a refiner, benefits from lower RIN compliance costs, but the news is negative for its ethanol operations.
Phillips 66 Seen as Most Likely Delek US Holdings Acquirer
Phillips 66 is viewed as the most credible potential acquirer of Delek US Holdings, whose stock has surged 141% year to date past Wall Street's $64 consensus target. Delek closed at $71.47 on August 21, 2026, near its 52-week high, and an acquirer would gain four refineries with roughly 302,000 barrels per day of capacity plus a 63% controlling stake in Delek Logistics Partners. Marathon Petroleum and Valero Energy each hold about $8 billion in cash but prefer buybacks or demand stronger strategic fit, while Energy Transfer faces leverage and capex constraints. Three Delek executives sold shares on August 17 and 18, 2026, described as routine pre-scheduled sales, and the stock's run-up has compressed the rational takeover premium.
Delek Logistics Raises Dividend for 54th Straight Quarter
Delek Logistics Partners raised its quarterly distribution by half a cent to $1.135 per share on July 22, marking its third increase this year and 54th consecutive quarterly hike. The midstream company's annual dividend now stands at $4.54 per share, yielding 7.7% after the stock slumped nearly 13% on August 13 following a 4 million-share offering at $50 per share, well below its prior close of $60. The offering dilutes investors by $200 million against a market capitalization of $2.8 billion, with proceeds partly used to retire debt at 6.05% interest. Delek Logistics is up 17.2% year to date, and parent Delek US has reduced its ownership stake from 79% four years ago to about 63%, with Delek expecting 80% of 2026 EBITDA to come from third parties.
Delek Logistics Partners announced the pricing of its underwritten public offering of 4 million common units at $50.00 per unit, raising $200 million in gross proceeds. The offering is expected to close on August 14, 2026, and the underwriters have a 30-day option to purchase up to an additional 600,000 common units. Delek Logistics intends to use the net proceeds to repay outstanding borrowings under its revolving credit agreement and for general partnership purposes. Delek US Holdings will not purchase any common units in the offering, and its ownership interest in Delek Logistics will decrease from 63.0% to approximately 58.0% following completion, assuming full exercise of the underwriters' option.
Delek US Reports Record Logistics EBITDA and Advances Enterprise Optimization Plan
Delek US Holdings reported second-quarter 2026 net income of $170 million, or $2.71 per share, with adjusted net income of $344 million, or $5.48 per share, and adjusted EBITDA of $639 million. The logistics segment posted its highest-ever quarterly adjusted EBITDA of $144 million, driven by Permian Basin crude, gas, and water offerings, while the Enterprise Optimization Plan contributed an estimated $60 million toward an annual run-rate target of $220 million. Delek Logistics Partners reaffirmed full-year 2026 EBITDA guidance of $520 million to $560 million, with third-party EBITDA expected to exceed 80% on a pro forma basis, advancing the Sum of the Parts deconsolidation strategy. The company returned $36 million to shareholders through dividends and buybacks, reduced its term loan from $920 million to $850 million, and provided third-quarter throughput guidance of 296,000 to 316,000 barrels per day across its refining system. Management emphasized ongoing efforts to secure Small Refinery Exemptions to mitigate elevated Renewable Volume Obligation costs and expressed confidence in a mid-cycle free cash flow profile of $650 million to $700 million.
Zacks Highlights Delek US, PBF Energy, and Valero Energy as Top Refining Stocks
Zacks Equity Research identifies Delek US Holdings, PBF Energy, and Valero Energy as well-positioned to benefit from tight fuel supplies and steady transportation demand. The Zacks Oil and Gas - Refining & Marketing industry ranks in the top 8% of 247 Zacks industries, with aggregate 2026 earnings estimates up 102.8% over the past year. The industry has gained 60.9% in the past year, outperforming the broader sector's 26.9% rise and the S&P 500's 18.7% gain, and trades at an EV/EBITDA of 6.25X versus the S&P 500's 18.24X. Delek US Holdings carries a Zacks Rank #1 (Strong Buy) with a 2026 earnings growth estimate of 25.9% and shares up 174.3% in a year. PBF Energy, also a Zacks Rank #1, has an expected three-to-five-year EPS growth rate of 56% and shares up 147.6% in a year. Valero Energy, a Zacks Rank #2 (Buy) with a market capitalization of more than $90 billion, has a 2026 EPS growth estimate of 243.6% and shares up 114.4% in a year.
U.S. refiner margins hit record highs as fuel shortage fears mount
U.S. refiner margins shattered records this week as low stockpiles and supply disruptions from escalating U.S.-Iran attacks threaten fuel shortfalls. The 3-2-1 crack spread, a key profitability benchmark, settled at a record $69.66 per barrel on Nymex Thursday. Diesel has been the main driver, with disruptions to Middle Eastern exports and a temporary Russian export ban tightening an already-strained market, while gasoline supplies are also a growing concern as refiners shift yields toward diesel and jet fuel. U.S. diesel inventories are down nearly 11 million barrels and gasoline inventories down more than 42 million barrels from pre-war levels, and both are well below their five-year seasonal averages. National average retail gasoline prices reached $3.99 per gallon on Saturday, up nearly $0.84 from a year ago, and analysts warn that depleted inventories and damaged Middle East refineries will keep prices elevated, benefiting refiners whose shares have surged this year.
Par Pacific Outperforms Delek US on Profitability and Cash Flow in 2025
Par Pacific reported a net income of approximately $369.4 million for fiscal year 2025, while Delek US posted a net loss of roughly $22.8 million. Par Pacific's revenue reached close to $7.5 billion, a decrease of about 6.4% from the prior year, and Delek US saw revenue of nearly $10.7 billion, down roughly 9.5%. Par Pacific's debt-to-equity ratio stood at roughly 0.8x and free cash flow was nearly $296.5 million, compared with Delek US's debt-to-equity ratio of 11.7x and free cash flow of approximately $22.0 million. Par Pacific also trades at a lower forward price-to-earnings ratio of 4.2x versus Delek US's 9.2x, while Delek US has a lower price-to-sales ratio of 0.3x compared to Par Pacific's 0.4x. Both companies face customer concentration risk, with one customer accounting for approximately 12% of consolidated revenue in each case.
DK · Capital · Negative Delek US posted a net loss of $22.8 million, has high debt-to-equity of 11.7x, and low free cash flow of $22 million, indicating poor financial performance.
PARR · Capital · Positive Par Pacific reported net income of $369.4 million, strong free cash flow of $296.5 million, and low debt-to-equity of 0.8x, outperforming Delek US.
Zacks Adds Five Stocks to Strong Buy List on July 1st
Zacks Investment Research added five stocks to its Zacks Rank #1 (Strong Buy) List today. Powell Industries saw its current-year earnings consensus estimate rise 39.1% over the last 60 days. Delek US Holdings' estimate increased 44%, Alliance Laundry Holdings' rose 10.3%, Cenovus Energy's climbed 38.2%, and Legacy Housing Corporation's estimate grew 11.5% over the same period.
Delek U.S. shares rally 6% after fire at Delta-owned jet fuel refinery
Shares of Delek U.S. rallied 6% on Thursday after a fire broke out at the Trainer refinery in Pennsylvania, which is owned by Monroe Energy, a wholly owned subsidiary of Delta Air Lines. The Trainer facility is a key supplier of jet fuel, and its potential downtime could tighten supply and boost margins for competing refiners like Delek, which derives a high percentage of its revenue from jet fuel. Delek also holds a 63% stake in Delek Logistics Partners, valued at about $1.7 billion, representing 58% of Delek's market capitalization. The company had already seen elevated profits this year due to global supply disruptions from conflicts involving Iran and Russia.
DK · Supply · Positive Fire at competing refinery could tighten jet fuel supply, boosting margins for Delek U.S. which derives high revenue from jet fuel.
DAL · Supply · Negative Fire at Delta-owned Trainer refinery could disrupt jet fuel supply, increasing costs or reducing margins for Delta.
Trump administration asks Congress to allow year-round E15 gasoline sales
The Trump administration formally asked Congress on Wednesday to pass legislation allowing year-round sales of gasoline blended with 15% ethanol, marking the first formal push by the White House to enact the policy. The request came in a supplemental bill released by the Office of Management and Budget, which called the measure an urgent and needed fix that codifies the permanent, year-round sale of E15. Supporters argue the higher-ethanol blend offers motorists a cheaper alternative to conventional gasoline, while U.S. refiners warn it could raise costs and complicate fuel distribution. Legislation allowing year-round E15 sales narrowly passed the House last month but faces long odds in the Senate, where major bills typically need 60 votes. The national average for regular gasoline stood at $3.93 per gallon as of Wednesday morning.
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