Delek refineries to run below capacity for a while

Delek US Holdings officials late on Tuesday said their cash-cow refineries in Texas and Arkansas will run well below capacity for the next few weeks because of various factors. In Tyler, Texas, a power interruption last week has resulted in the idling of part of the facility. In the Natural State, Delek execs have only partially replaced the supplies Exxon took away late last month. Those factors mean Delek's refining operations will process around 110,000 barrels per day in May — 22 percent below capacity and Q1 output — and 120,000 barrels in June.

The news could put a dent in shares of Delek (Ticker: DK), which closed Tuesday trading at $15.93. They're up 40 percent year to date.

May 16, 2012 7:20 AM

Delek buys Texas pipeline

Deal for refinery feeder worth more than $12M
Feb 10, 2012 1:35 PM

Input cost trends a boon for Delek

The surge in oil exploration and production from the middle of the United States is creating a powerful tailwind for refiners of West Texas Intermediate, the FT reports. (Registration required.) As output has ramped up, prices have fallen, boosting refining margins. And the trend shows signs of strengthening, powering shares of companies such as Delek US Holdings (Ticker: DK) even higher.

Analysts believe the regional refiners could get even cheaper oil in early 2012, further attracting investors to bid up their shares.Evan Calio, at Morgan Stanley, said that the WTI-Brent discount could expand to $50 a barrel by next spring.

“Less than five per cent of global refining capacity can process WTI-advantaged crude oils, capturing the differential and directly increasing gross margins,” he said.

Delek's Q1 report talked about the strengthening trend, which looks likely to drive a strong Q2. Brentwood-based Delek is scheduled to report its numbers on Aug. 4. Analysts are looking for a profit of 69 cents per diluted share, up from 23 cents a year ago.

Jul 26, 2011 10:20 AM

Delek refinery back on track in Arkansas

Delek US Holdings says its recently acquired El Dorado refinery in Arkansas is back to running at normal capacity after a pipeline disrupted by Mississippi River flooding resumed its regular business. Delek became the majorit owner of the refinery and other assets through a $95 million deal wrapped up in March.

Jun 20, 2011 10:04 AM

Floods cut Delek refining capacity

Delek US Holdings this morning said the Mississippi River floods have disrupted some of the crude oil supplies that would ordinarily make their way to its El Dorado, Ark., refinery. The Brentwood-based company is improvizing through other means but says its capacity at El Dorado is down by at least a quarter to a maximum of 60,000 barrels per day until normal crude deliveries resume. Shares of Delek (Ticker: DK) are up almost 2 percent in the first minutes of trading.

May 18, 2011 8:32 AM

More maintenance = Less profit

Barclays analyst Paul Cheng has revised down his Delek earnings estimates for the rest of this year based on a longer-than-expected maintenance period at the company 's Tyler, Texas, refinery. That downtime, says Cheng, will however be offset to an extent by better margins elsewhere. For more, download the full investor presentation.
Sep 16, 2010 11:08 AM

Delek ramping up capital spending

Spurred by the success of completed retail store overhauls — fuel sales at so-called reimaged stores are rising 2 percentage points faster than the company's average — Delek US Holdings is boosting its budget to convert other outlets. The parent of Mapco Express and other gas station chains also is speeding up various investments at its Tyler, Texas, refinery. In all, the Brentwood-based company will spend more than $70 million on capital projects this year, up from its previous estimate of about $59 million. In the Q&A section of Thursday's call posted on Seeking Alpha, CEO Uzi Yemin reiterated his company's quest to be a buyer in the M&A market, saying, "If we are not at the bottom, we are somewhere around the bottom and we remain active." Shares of Delek (Ticker: DK) have risen about 14 percent in the past three weeks and are now up about 11 percent for the year.
Aug 6, 2010 8:09 AM

Delek inks new credit deal

Refining unit backs $300M line that comes with accordion
Feb 25, 2010 8:28 PM

The big freeze hits Delek's refinery

Delek US Holdings, the parent company of Mapco, late last week had to shut down part of its refinery east of Dallas after the recent cold snap sent some of its equipment haywire.
Jan 11, 2010 12:07 PM

How Delek already is suffering from climate legislation

Consulting firm Wood Mackenzie says climate legislation now being considered spells big potential trouble for oil refiners because of the limited availability of free emission permits. That helps explain why shares of Delek US Holding have trailed the S&P by some 50 points in the past six months. Brentwood-based Delek has since the end of 2005 booked 62 percent of its unit-level profits from refining.
Oct 27, 2009 9:52 AM