(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | |||||||||
(Address of Principal Executive) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. |
Dated: February 28, 2023 | DELEK US HOLDINGS, INC | ||||
/s/ Reuven Spiegel | |||||
Name: Reuven Spiegel | |||||
Title: Executive Vice President and Chief Financial Officer (Principal Financial Officer) |
1 | |
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||
($ in millions, except per share data) | 2022 | 2021 As Adjusted (1) | 2022 | 2021 As Adjusted (1) | ||||||||||||||||||||||
Net income (loss) attributable to Delek | $ | (118.7) | $ | (13.4) | $ | 257.1 | $ | (128.3) | ||||||||||||||||||
Diluted income (loss) per share | $ | (1.73) | $ | (0.18) | $ | 3.59 | $ | (1.73) | ||||||||||||||||||
Adjusted net income (loss) | $ | 60.8 | $ | (63.2) | $ | 525.6 | $ | (294.0) | ||||||||||||||||||
Adjusted net income (loss) per share | $ | 0.88 | $ | (0.86) | $ | 7.33 | $ | (3.95) | ||||||||||||||||||
Adjusted EBITDA | $ | 220.9 | $ | 32.8 | $ | 1,185.8 | $ | 37.7 |
2 | |
3 | |
4 | |
Delek US Holdings, Inc. | ||||||||||||||
Condensed Consolidated Balance Sheets (Unaudited) | ||||||||||||||
($ in millions, except share and per share data) | ||||||||||||||
December 31, 2022 | December 31, 2021 As Adjusted (1) | |||||||||||||
ASSETS | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 841.3 | $ | 856.5 | ||||||||||
Accounts receivable, net | 1,234.4 | 776.6 | ||||||||||||
Inventories, net of inventory valuation reserves | 1,518.5 | 1,260.7 | ||||||||||||
Other current assets | 122.7 | 126.0 | ||||||||||||
Total current assets | 3,716.9 | 3,019.8 | ||||||||||||
Property, plant and equipment: | ||||||||||||||
Property, plant and equipment | 4,349.0 | 3,645.4 | ||||||||||||
Less: accumulated depreciation | (1,572.6) | (1,338.1) | ||||||||||||
Property, plant and equipment, net | 2,776.4 | 2,307.3 | ||||||||||||
Operating lease right-of-use assets | 179.5 | 208.5 | ||||||||||||
Goodwill | 744.3 | 729.7 | ||||||||||||
Other intangibles, net | 315.6 | 102.7 | ||||||||||||
Equity method investments | 359.7 | 344.1 | ||||||||||||
Other non-current assets | 100.4 | 100.5 | ||||||||||||
Total assets | $ | 8,192.8 | $ | 6,812.6 | ||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable | $ | 1,745.6 | $ | 1,695.3 | ||||||||||
Current portion of long-term debt | 74.5 | 92.2 | ||||||||||||
Current portion of obligation under Inventory Intermediation Agreements | 49.9 | 487.5 | ||||||||||||
Current portion of operating lease liabilities | 49.6 | 53.9 | ||||||||||||
Accrued expenses and other current liabilities | 1,166.8 | 797.8 | ||||||||||||
Total current liabilities | 3,086.4 | 3,126.7 | ||||||||||||
Non-current liabilities: | ||||||||||||||
Long-term debt, net of current portion | 2,979.2 | 2,125.8 | ||||||||||||
Obligation under Inventory Intermediation Agreements | 491.8 | — | ||||||||||||
Environmental liabilities, net of current portion | 111.5 | 109.5 | ||||||||||||
Asset retirement obligations | 41.8 | 38.3 | ||||||||||||
Deferred tax liabilities | 266.5 | 214.5 | ||||||||||||
Operating lease liabilities, net of current portion | 122.4 | 152.0 | ||||||||||||
Other non-current liabilities | 23.7 | 31.8 | ||||||||||||
Total non-current liabilities | 4,036.9 | 2,671.9 | ||||||||||||
Stockholders’ equity: | ||||||||||||||
Preferred stock, $0.01 par value, 10,000,000 shares authorized, no shares issued and outstanding | — | — | ||||||||||||
Common stock, $0.01 par value, 110,000,000 shares authorized, 84,509,517 shares and 91,772,080 shares issued at December 31, 2022 and December 31, 2021, respectively | 0.9 | 0.9 | ||||||||||||
Additional paid-in capital | 1,134.1 | 1,206.5 | ||||||||||||
Accumulated other comprehensive loss | (5.2) | (3.8) | ||||||||||||
Treasury stock, 17,575,527 shares, at cost, as of December 31, 2022 and December 31, 2021 | (694.1) | (694.1) | ||||||||||||
Retained earnings | 507.9 | 384.7 | ||||||||||||
Non-controlling interests in subsidiaries | 125.9 | 119.8 | ||||||||||||
Total stockholders’ equity | 1,069.5 | 1,014.0 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 8,192.8 | $ | 6,812.6 |
5 | |
Delek US Holdings, Inc. | ||||||||||||||||||||||||||
Condensed Consolidated Statements of Income (Unaudited) | ||||||||||||||||||||||||||
($ in millions, except share and per share data) | Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||
2022 | 2021 As Adjusted (1) | 2022 | 2021 As Adjusted (1) (2) | |||||||||||||||||||||||
Net revenues | $ | 4,479.2 | $ | 3,108.0 | $ | 20,245.8 | $ | 10,648.2 | ||||||||||||||||||
Cost of sales: | ||||||||||||||||||||||||||
Cost of materials and other | 4,204.5 | 2,832.5 | 18,355.6 | 9,643.9 | ||||||||||||||||||||||
Operating expenses (excluding depreciation and amortization presented below) | 175.6 | 138.9 | 701.8 | 502.0 | ||||||||||||||||||||||
Depreciation and amortization | 71.8 | 61.2 | 263.8 | 239.6 | ||||||||||||||||||||||
Total cost of sales | 4,451.9 | 3,032.6 | 19,321.2 | 10,385.5 | ||||||||||||||||||||||
Insurance proceeds | (3.9) | (18.9) | (31.2) | (23.3) | ||||||||||||||||||||||
Operating expenses related to retail and wholesale business (excluding depreciation and amortization presented below) | 17.2 | 23.5 | 106.8 | 110.4 | ||||||||||||||||||||||
General and administrative expenses | 106.8 | 65.0 | 348.8 | 212.6 | ||||||||||||||||||||||
Depreciation and amortization | 6.0 | 7.8 | 23.2 | 25.0 | ||||||||||||||||||||||
Other operating income, net | 4.7 | (27.0) | (12.5) | (27.3) | ||||||||||||||||||||||
Total operating costs and expenses | 4,582.7 | 3,083.0 | 19,756.3 | 10,682.9 | ||||||||||||||||||||||
Operating income (loss) | (103.5) | 25.0 | 489.5 | (34.7) | ||||||||||||||||||||||
Interest expense, net | 62.6 | 36.7 | 195.3 | 136.7 | ||||||||||||||||||||||
Income from equity method investments | (13.3) | (3.8) | (57.7) | (18.3) | ||||||||||||||||||||||
Other income, net | 0.5 | 0.2 | (2.5) | (15.8) | ||||||||||||||||||||||
Total non-operating expense, net | 49.8 | 33.1 | 135.1 | 102.6 | ||||||||||||||||||||||
Income (loss) before income tax expense (benefit) | (153.3) | (8.1) | 354.4 | (137.3) | ||||||||||||||||||||||
Income tax expense (benefit) | (43.6) | (3.0) | 63.9 | (42.0) | ||||||||||||||||||||||
Net income (loss) | (109.7) | (5.1) | 290.5 | (95.3) | ||||||||||||||||||||||
Net income attributed to non-controlling interests | 9.0 | 8.3 | 33.4 | 33.0 | ||||||||||||||||||||||
Net income (loss) attributable to Delek | $ | (118.7) | $ | (13.4) | $ | 257.1 | $ | (128.3) | ||||||||||||||||||
Basic income (loss) per share | $ | (1.73) | $ | (0.18) | $ | 3.63 | $ | (1.73) | ||||||||||||||||||
Diluted income (loss) per share | $ | (1.73) | $ | (0.18) | $ | 3.59 | $ | (1.73) | ||||||||||||||||||
Weighted average common shares outstanding: | ||||||||||||||||||||||||||
Basic | 68,697,820 | 74,141,908 | 70,789,458 | 73,984,104 | ||||||||||||||||||||||
Diluted | 68,697,820 | 74,141,908 | 71,516,361 | 73,984,104 | ||||||||||||||||||||||
Condensed Cash Flow Data (Unaudited) | |||||||||||||||||||||||
($ in millions) | Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||
2022 | 2021 As Adjusted (1) | 2022 | 2021 As Adjusted (1) | ||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (290.8) | $ | 161.2 | $ | 425.3 | $ | 371.4 | |||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Net cash used in investing activities | (111.7) | (35.2) | (931.6) | (178.4) | |||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Net cash provided by (used in) financing activities | 90.0 | (100.1) | 491.1 | (124.0) | |||||||||||||||||||
Net (decrease) increase in cash and cash equivalents | (312.5) | 25.9 | (15.2) | 69.0 | |||||||||||||||||||
Cash and cash equivalents at the beginning of the period | 1,153.8 | 830.6 | 856.5 | 787.5 | |||||||||||||||||||
Cash and cash equivalents at the end of the period | $ | 841.3 | $ | 856.5 | $ | 841.3 | $ | 856.5 | |||||||||||||||
6 | |
7 | |
Reconciliation of Net Income (Loss) Attributable to Delek to Adjusted Net Income (Loss) | ||||||||||||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||
$ in millions (unaudited) | 2022 | 2021 As Adjusted (1) | 2022 | 2021 As Adjusted (1) | ||||||||||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||||||||||||
Reported net income (loss) attributable to Delek | $ | (118.7) | $ | (13.4) | $ | 257.1 | $ | (128.3) | ||||||||||||||||||
Adjusting items (2) | ||||||||||||||||||||||||||
Inventory LCM valuation (benefit) loss | (17.2) | 8.2 | 1.9 | 8.5 | ||||||||||||||||||||||
Tax effect | 3.9 | (1.9) | (0.4) | (2.0) | ||||||||||||||||||||||
Inventory LCM valuation (benefit) loss, net | (13.3) | 6.3 | 1.5 | 6.5 | ||||||||||||||||||||||
Other inventory impact | 193.6 | (61.6) | 331.1 | (218.1) | ||||||||||||||||||||||
Tax effect | (44.2) | 14.4 | (75.7) | 50.8 | ||||||||||||||||||||||
Other inventory impact, net (3) | 149.4 | (47.2) | 255.4 | (167.3) | ||||||||||||||||||||||
Business interruption insurance recoveries | (5.2) | (9.9) | (31.1) | (9.9) | ||||||||||||||||||||||
Tax effect | 1.2 | 2.2 | 7.0 | 2.2 | ||||||||||||||||||||||
Business interruption insurance recoveries, net (3) | (4.0) | (7.7) | (24.1) | (7.7) | ||||||||||||||||||||||
Total El Dorado refinery fire net losses, net of related recoveries | — | 4.0 | — | 7.8 | ||||||||||||||||||||||
Tax effect | — | (1.0) | — | (1.9) | ||||||||||||||||||||||
El Dorado refinery fire losses, net of related recoveries, net | — | 3.0 | — | 5.9 | ||||||||||||||||||||||
Total unrealized hedging (gain) loss where the hedged item is not yet recognized in the financial statements | 50.1 | (5.5) | 24.1 | 6.7 | ||||||||||||||||||||||
Tax effect | (12.2) | 1.3 | (5.9) | (1.6) | ||||||||||||||||||||||
Unrealized hedging (gain) loss where the hedged item is not yet recognized in the financial statements, net | 37.9 | (4.2) | 18.2 | 5.1 | ||||||||||||||||||||||
Non-cash change in fair value of Supply and Offtake ("S&O") Obligation associated with hedging activities | — | — | — | (6.9) | ||||||||||||||||||||||
Tax effect | — | — | — | 1.5 | ||||||||||||||||||||||
Non-cash change in fair value of S&O Obligation associated with hedging activities, net | — | — | — | (5.4) | ||||||||||||||||||||||
Non-operating litigation accrual related to pre-Delek/Alon Merger shareholder action | — | — | — | 6.5 | ||||||||||||||||||||||
Tax effect | — | — | — | (1.6) | ||||||||||||||||||||||
Non-operating litigation accrual related to pre-Delek/Alon Merger shareholder action, net | — | — | — | 4.9 | ||||||||||||||||||||||
In-substance indemnification recoveries from WTW Contract Termination in excess of amounts that have or will impact net income | — | — | — | (10.2) | ||||||||||||||||||||||
Tax effect | — | — | — | 2.5 | ||||||||||||||||||||||
Contract termination recoveries in excess of amounts that have or will impact net income | — | — | — | (7.7) | ||||||||||||||||||||||
Transaction related expenses | — | — | 10.6 | — | ||||||||||||||||||||||
Tax effect | — | — | (2.6) | — | ||||||||||||||||||||||
Transaction related expenses, net (3) | — | — | 8.0 | — | ||||||||||||||||||||||
Restructuring costs | 12.5 | — | 12.5 | — | ||||||||||||||||||||||
Tax effect | (3.0) | — | (3.0) | — | ||||||||||||||||||||||
Restructuring costs, net (3) | 9.5 | — | 9.5 | — | ||||||||||||||||||||||
Total adjusting items (2) | 179.5 | (49.8) | 268.5 | (165.7) | ||||||||||||||||||||||
Adjusted net income (loss) | $ | 60.8 | $ | (63.2) | $ | 525.6 | $ | (294.0) |
8 | |
Reconciliation of U.S. GAAP Income (Loss) per share to Adjusted Net Income (Loss) per share: | ||||||||||||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||
$ per share (unaudited) | 2022 | 2021 As Adjusted (1) | 2022 | 2021 As Adjusted (1) | ||||||||||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||||||||||||
Reported diluted income (loss) per share | $ | (1.73) | $ | (0.18) | $ | 3.59 | $ | (1.73) | ||||||||||||||||||
Adjusting items, after tax (per share) (2) (3) | ||||||||||||||||||||||||||
Net inventory LCM valuation (benefit) loss | (0.19) | 0.08 | 0.02 | 0.09 | ||||||||||||||||||||||
Other inventory impact (4) | 2.17 | (0.64) | 3.57 | (2.26) | ||||||||||||||||||||||
El Dorado refinery fire net losses, net of related recoveries | — | 0.04 | — | 0.08 | ||||||||||||||||||||||
Business interruption insurance recoveries (4) | (0.06) | (0.10) | (0.34) | (0.10) | ||||||||||||||||||||||
Total unrealized hedging (gain) loss where the hedged item is not yet recognized in the financial statements | 0.55 | (0.06) | 0.25 | 0.07 | ||||||||||||||||||||||
Non-cash change in fair value of S&O Obligation associated with hedging activities | — | — | — | (0.07) | ||||||||||||||||||||||
Non-operating litigation accrual related to pre-Delek/Alon Merger shareholder action | — | — | — | 0.07 | ||||||||||||||||||||||
Contract termination recoveries in excess of amounts that have or will impact net income | — | — | — | (0.10) | ||||||||||||||||||||||
Transaction related expenses (4) | — | — | 0.11 | — | ||||||||||||||||||||||
Restructuring costs (4) | 0.14 | — | 0.13 | — | ||||||||||||||||||||||
Total adjusting items (2) | 2.61 | (0.68) | 3.74 | (2.22) | ||||||||||||||||||||||
Adjusted net income (loss) per share | $ | 0.88 | $ | (0.86) | $ | 7.33 | $ | (3.95) | ||||||||||||||||||
9 | |
Reconciliation of Net Income (Loss) attributable to Delek to Adjusted EBITDA | ||||||||||||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||
$ in millions (unaudited) | 2022 | 2021 As Adjusted (1) | 2022 | 2021 As Adjusted (1) | ||||||||||||||||||||||
Reported net (loss) income attributable to Delek | $ | (118.7) | $ | (13.4) | $ | 257.1 | $ | (128.3) | ||||||||||||||||||
Interest expense, net | 62.6 | 36.7 | 195.3 | 136.7 | ||||||||||||||||||||||
Income tax expense (benefit) | (43.6) | (3.0) | 63.9 | (42.0) | ||||||||||||||||||||||
Depreciation and amortization | 77.8 | 69.0 | 287.0 | 264.6 | ||||||||||||||||||||||
EBITDA attributable to Delek | (21.9) | 89.3 | 803.3 | 231.0 | ||||||||||||||||||||||
Adjusting items | ||||||||||||||||||||||||||
Net inventory LCM valuation (benefit) loss | (17.2) | 8.2 | 1.9 | 8.5 | ||||||||||||||||||||||
Other inventory impact (2) | 193.6 | (61.6) | 331.1 | (218.1) | ||||||||||||||||||||||
Business Interruption insurance recoveries (2) | (5.2) | (9.9) | (31.1) | (9.9) | ||||||||||||||||||||||
El Dorado refinery fire losses, net of related insurance recoveries | — | 4.0 | — | 7.8 | ||||||||||||||||||||||
Unrealized hedging (gain) loss where the hedged item is not yet recognized in the financial statements | 50.1 | (5.5) | 24.1 | 6.7 | ||||||||||||||||||||||
Non-cash change in fair value of S&O Obligation associated with hedging activities | — | — | — | (6.9) | ||||||||||||||||||||||
Non-operating litigation accrual related to pre-Delek/Alon Merger shareholder action | — | — | — | 6.5 | ||||||||||||||||||||||
Contract termination recoveries in excess of amounts that have or will impact EBITDA | — | — | — | (20.9) | ||||||||||||||||||||||
Transaction related expenses (2) | — | — | 10.6 | — | ||||||||||||||||||||||
Restructuring costs (2) | 12.5 | — | 12.5 | — | ||||||||||||||||||||||
Net income attributable to non-controlling interest | 9.0 | 8.3 | 33.4 | 33.0 | ||||||||||||||||||||||
Total Adjusting items | 242.8 | (56.5) | 382.5 | (193.3) | ||||||||||||||||||||||
Adjusted EBITDA | $ | 220.9 | $ | 32.8 | $ | 1,185.8 | $ | 37.7 | ||||||||||||||||||
Reconciliation of Segment EBITDA Attributable to Delek to Adjusted Segment EBITDA: | ||||||||||||||||||||||||||||||||
Three Months Ended December 31, 2022 | ||||||||||||||||||||||||||||||||
$ in millions (unaudited) | Refining | Logistics | Retail | Corporate, Other and Eliminations | Consolidated | |||||||||||||||||||||||||||
Segment EBITDA Attributable to Delek | $ | (39.1) | $ | 90.7 | $ | 7.8 | $ | (81.3) | $ | (21.9) | ||||||||||||||||||||||
Adjusting items | ||||||||||||||||||||||||||||||||
Net inventory LCM valuation (benefit) loss | (17.1) | (0.1) | — | — | (17.2) | |||||||||||||||||||||||||||
Other inventory impact (2) | 193.6 | — | — | — | 193.6 | |||||||||||||||||||||||||||
Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements | 38.7 | — | — | 0.3 | 39.0 | |||||||||||||||||||||||||||
Unrealized RINs and other hedging (gain) loss where the hedged item is not yet recognized in the financial statements | 11.1 | — | — | — | 11.1 | |||||||||||||||||||||||||||
Total unrealized hedging (gain) loss where the hedged item is not yet recognized in the financial statements | 49.8 | — | — | 0.3 | 50.1 | |||||||||||||||||||||||||||
Restructuring costs (2) | — | — | — | 12.5 | 12.5 | |||||||||||||||||||||||||||
Business Interruption insurance recoveries (2) | (5.2) | — | — | — | (5.2) | |||||||||||||||||||||||||||
Net income attributable to non-controlling interest | — | — | — | 9.0 | 9.0 | |||||||||||||||||||||||||||
Total Adjusting items | 221.1 | (0.1) | — | 21.8 | 242.8 | |||||||||||||||||||||||||||
Adjusted Segment EBITDA | $ | 182.0 | $ | 90.6 | $ | 7.8 | $ | (59.5) | $ | 220.9 |
10 | |
Three Months Ended December 31, 2021, As Adjusted (1) | ||||||||||||||||||||||||||||||||
$ in millions (unaudited) | Refining (1) | Logistics | Retail | Corporate, Other and Eliminations | Consolidated (1) | |||||||||||||||||||||||||||
Segment EBITDA Attributable to Delek | $ | 61.7 | $ | 67.9 | $ | 10.0 | $ | (50.3) | $ | 89.3 | ||||||||||||||||||||||
Adjusting items | ||||||||||||||||||||||||||||||||
Net inventory LCM valuation (benefit) loss | 8.0 | 0.2 | — | — | 8.2 | |||||||||||||||||||||||||||
Other inventory impact (2) | (61.6) | — | — | — | (61.6) | |||||||||||||||||||||||||||
Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements | (6.0) | — | — | — | (6.0) | |||||||||||||||||||||||||||
Unrealized RINs and other hedging (gain) loss where the hedged item is not yet recognized in the financial statements | 0.5 | — | — | — | 0.5 | |||||||||||||||||||||||||||
Total unrealized hedging (gain) loss where the hedged item is not yet recognized in the financial statements | (5.5) | — | — | — | (5.5) | |||||||||||||||||||||||||||
El Dorado refinery fire losses | 4.0 | — | — | — | 4.0 | |||||||||||||||||||||||||||
Business Interruption insurance recoveries (2) | (9.9) | — | — | — | (9.9) | |||||||||||||||||||||||||||
Net income attributable to non-controlling interest | — | — | — | 8.3 | 8.3 | |||||||||||||||||||||||||||
Total Adjusting items | (65.0) | 0.2 | — | 8.3 | (56.5) | |||||||||||||||||||||||||||
Adjusted Segment EBITDA | $ | (3.3) | $ | 68.1 | $ | 10.0 | $ | (42.0) | $ | 32.8 |
Year Ended December 31, 2022 | ||||||||||||||||||||||||||||||||
$ in millions (unaudited) | Refining | Logistics | Retail | Corporate, Other and Eliminations | Consolidated | |||||||||||||||||||||||||||
Segment EBITDA Attributable to Delek | $ | 719.1 | $ | 304.8 | $ | 44.1 | $ | (264.7) | $ | 803.3 | ||||||||||||||||||||||
Adjusting items | ||||||||||||||||||||||||||||||||
Net inventory LCM valuation (benefit) loss | 2.0 | (0.1) | — | — | 1.9 | |||||||||||||||||||||||||||
Other inventory impact (2) | 331.1 | — | — | — | 331.1 | |||||||||||||||||||||||||||
Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements | 8.1 | — | — | — | 8.1 | |||||||||||||||||||||||||||
Unrealized RINs and other hedging (gain) loss where the hedged item is not yet recognized in the financial statements | 16.0 | — | — | — | 16.0 | |||||||||||||||||||||||||||
Total unrealized hedging (gain) loss where the hedged item is not yet recognized in the financial statements | 24.1 | — | — | — | 24.1 | |||||||||||||||||||||||||||
Restructuring costs (2) | — | — | — | 12.5 | 12.5 | |||||||||||||||||||||||||||
Transaction related expenses | — | 10.6 | — | — | 10.6 | |||||||||||||||||||||||||||
Business Interruption insurance recoveries (2) | (31.1) | — | — | — | (31.1) | |||||||||||||||||||||||||||
Net income attributable to non-controlling interest | — | — | — | 33.4 | 33.4 | |||||||||||||||||||||||||||
Total Adjusting items | 326.1 | 10.5 | — | 45.9 | 382.5 | |||||||||||||||||||||||||||
Adjusted Segment EBITDA | $ | 1,045.2 | $ | 315.3 | $ | 44.1 | $ | (218.8) | $ | 1,185.8 |
11 | |
Reconciliation of Segment EBITDA Attributable to Delek to Adjusted Segment EBITDA (continued) | ||||||||||||||||||||||||||||||||
Year Ended December 31, 2021, As Adjusted (1) | ||||||||||||||||||||||||||||||||
$ in millions (unaudited) | Refining (1) | Logistics | Retail | Corporate, Other and Eliminations | Consolidated (1) | |||||||||||||||||||||||||||
Segment EBITDA Attributable to Delek | $ | 69.2 | $ | 258.0 | $ | 51.1 | $ | (147.3) | $ | 231.0 | ||||||||||||||||||||||
Adjusting items | ||||||||||||||||||||||||||||||||
Net inventory LCM valuation (benefit) loss | 8.4 | 0.1 | — | — | 8.5 | |||||||||||||||||||||||||||
Other inventory impact (2) | (218.1) | — | — | — | (218.1) | |||||||||||||||||||||||||||
Unrealized inventory/commodity hedging (gain) loss where the hedged item is not yet recognized in the financial statements | 6.7 | (0.3) | — | — | 6.4 | |||||||||||||||||||||||||||
Unrealized RINs and other hedging (gain) loss where the hedged item is not yet recognized in the financial statements | 0.3 | — | — | — | 0.3 | |||||||||||||||||||||||||||
Total unrealized hedging (gain) loss where the hedged item is not yet recognized in the financial statements | 7.0 | (0.3) | — | — | 6.7 | |||||||||||||||||||||||||||
El Dorado refinery fire losses | 7.8 | 7.8 | ||||||||||||||||||||||||||||||
Business Interruption insurance recoveries (2) | (9.9) | — | — | — | (9.9) | |||||||||||||||||||||||||||
Non-cash change in fair value of S&O Obligation associated with hedging activities | (6.9) | — | — | — | (6.9) | |||||||||||||||||||||||||||
Non-operating litigation accrual related to pre-Delek/Alon Merger shareholder action | — | — | — | 6.5 | 6.5 | |||||||||||||||||||||||||||
Contract termination recoveries in excess of amounts that have or will impact EBITDA | — | — | — | (20.9) | (20.9) | |||||||||||||||||||||||||||
Net income attributable to non-controlling interest | — | — | — | 33.0 | 33.0 | |||||||||||||||||||||||||||
Total Adjusting items | (211.7) | (0.2) | — | 18.6 | (193.3) | |||||||||||||||||||||||||||
Adjusted Segment EBITDA | $ | (142.5) | $ | 257.8 | $ | 51.1 | $ | (128.7) | $ | 37.7 |
12 | |
Refining Segment Selected Financial Information | Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||
2022 | 2021 As Adjusted (2) | 2022 | 2021 As Adjusted (2) | |||||||||||||||||||||||
Total Refining Segment | (Unaudited) | (Unaudited) | ||||||||||||||||||||||||
Days in period | 92 | 92 | 365 | 365 | ||||||||||||||||||||||
Total sales volume - refined product (average barrels per day ("bpd")) (1) | 274,148 | 301,648 | 299,004 | 275,075 | ||||||||||||||||||||||
Total production (average bpd) | 278,384 | 297,591 | 290,040 | 260,507 | ||||||||||||||||||||||
Crude oil | 257,937 | 278,851 | 281,205 | 250,632 | ||||||||||||||||||||||
Other feedstocks | 22,492 | 19,784 | 10,558 | 12,305 | ||||||||||||||||||||||
Total throughput (average bpd): | 280,429 | 298,635 | 291,763 | 262,937 | ||||||||||||||||||||||
Total refining production margin per bbl total throughput | $ | 15.68 | $ | 5.91 | $ | 18.22 | $ | 4.20 | ||||||||||||||||||
Total refining operating expenses per bbl total throughput | $ | 5.35 | $ | 4.35 | $ | 5.53 | $ | 4.46 | ||||||||||||||||||
Total refining production margin ($ in millions) | $ | 404.7 | $ | 162.2 | $ | 1,940.1 | $ | 403.3 | ||||||||||||||||||
Trading & supply and other ($ millions) (3) | (62.4) | (80.1) | (232.7) | (59.6) | ||||||||||||||||||||||
Total refining segment adjusted gross margin ($ in millions) (2) | $ | 342.3 | $ | 82.1 | $ | 1,707.4 | $ | 343.7 | ||||||||||||||||||
Total crude slate details | ||||||||||||||||||||||||||
Total crude slate: (% based on amount received in period) | ||||||||||||||||||||||||||
WTI crude oil | 72.1 | % | 68.4 | % | 68.2 | % | 69.6 | % | ||||||||||||||||||
Gulf Coast Sweet Crude | 5.9 | % | 8.9 | % | 7.8 | % | 7.5 | % | ||||||||||||||||||
Local Arkansas crude oil | 4.2 | % | 4.1 | % | 4.1 | % | 4.5 | % | ||||||||||||||||||
Other | 17.8 | % | 18.6 | % | 19.9 | % | 18.4 | % | ||||||||||||||||||
Crude utilization (% based on nameplate capacity)(6) | 85.4 | % | 92.3 | % | 93.1 | % | 83.0 | % | ||||||||||||||||||
Tyler, TX Refinery | ||||||||||||||||||||||||||
Days in period | 92 | 92 | 365 | 365 | ||||||||||||||||||||||
Products manufactured (average bpd): | ||||||||||||||||||||||||||
Gasoline | 42,267 | 30,951 | 36,847 | 35,782 | ||||||||||||||||||||||
Diesel/Jet | 32,487 | 23,606 | 31,419 | 27,553 | ||||||||||||||||||||||
Petrochemicals, LPG, NGLs | 1,979 | 1,823 | 2,114 | 1,957 | ||||||||||||||||||||||
Other | 1,771 | 1,288 | 1,825 | 1,503 | ||||||||||||||||||||||
Total production | 78,504 | 57,668 | 72,205 | 66,795 | ||||||||||||||||||||||
Throughput (average bpd): | ||||||||||||||||||||||||||
Crude oil | 72,427 | 56,301 | 70,114 | 65,205 | ||||||||||||||||||||||
Other feedstocks | 7,266 | 1,822 | 2,604 | 1,971 | ||||||||||||||||||||||
Total throughput | 79,693 | 58,123 | 72,718 | 67,176 | ||||||||||||||||||||||
Tyler refining production margin ($ in millions) | $ | 144.6 | $ | 35.1 | $ | 586.4 | $ | 116.6 | ||||||||||||||||||
Per barrel of throughput: | ||||||||||||||||||||||||||
Tyler refining production margin | $ | 19.72 | $ | 6.56 | $ | 22.09 | $ | 4.76 | ||||||||||||||||||
Operating expenses (4) | $ | 3.64 | $ | 5.83 | $ | 5.24 | $ | 4.16 | ||||||||||||||||||
Crude Slate: (% based on amount received in period) | ||||||||||||||||||||||||||
WTI crude oil | 80.8 | % | 95.1 | % | 84.7 | % | 90.8 | % | ||||||||||||||||||
East Texas crude oil | 18.0 | % | 4.9 | % | 15.0 | % | 9.0 | % | ||||||||||||||||||
Other | 1.2 | % | — | % | 0.3 | % | 0.2 | % | ||||||||||||||||||
Capture Rate (5) | 61.1 | % | 37.5 | % | 66.2 | % | 28.6 | % | ||||||||||||||||||
El Dorado, AR Refinery | ||||||||||||||||||||||||||
Days in period | 92 | 92 | 365 | 365 | ||||||||||||||||||||||
Products manufactured (average bpd): | ||||||||||||||||||||||||||
Gasoline | 38,119 | 43,834 | 38,738 | 32,004 | ||||||||||||||||||||||
Diesel | 27,931 | 32,397 | 30,334 | 24,777 | ||||||||||||||||||||||
Petrochemicals, LPG, NGLs | 1,102 | 1,506 | 1,255 | 1,078 | ||||||||||||||||||||||
Asphalt | 7,310 | 8,083 | 7,782 | 6,352 | ||||||||||||||||||||||
Other | 2,347 | 820 | 1,200 | 646 | ||||||||||||||||||||||
Total production | 76,809 | 86,640 | 79,309 | 64,857 | ||||||||||||||||||||||
Throughput (average bpd): | ||||||||||||||||||||||||||
Crude oil | 72,862 | 79,994 | 76,806 | 62,067 | ||||||||||||||||||||||
Other feedstocks | 5,106 | 7,022 | 3,646 | 3,580 | ||||||||||||||||||||||
Total throughput | 77,968 | 87,016 | 80,452 | 65,647 |
13 | |
Refining Segment Selected Financial Information (continued) | Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||
2022 | 2021 As Adjusted (2) | 2022 | 2021 As Adjusted (2) | |||||||||||||||||||||||
El Dorado refining production margin ($ in millions) | $ | 107.4 | $ | 25.8 | $ | 458.2 | $ | 26.2 | ||||||||||||||||||
Per barrel of throughput: | ||||||||||||||||||||||||||
El Dorado refining production margin | $ | 14.97 | $ | 3.22 | $ | 15.60 | $ | 1.09 | ||||||||||||||||||
Operating expenses (4) | $ | 4.72 | $ | 4.13 | $ | 4.61 | $ | 4.29 | ||||||||||||||||||
Crude Slate: (% based on amount received in period) | ||||||||||||||||||||||||||
WTI crude oil | 64.7 | % | 43.3 | % | 55.1 | % | 49.0 | % | ||||||||||||||||||
Local Arkansas crude oil | 14.7 | % | 14.7 | % | 15.3 | % | 18.5 | % | ||||||||||||||||||
Other | 20.6 | % | 42.0 | % | 29.6 | % | 32.5 | % | ||||||||||||||||||
Capture Rate (5) | 46.4 | % | 18.4 | % | 46.8 | % | 6.6 | % | ||||||||||||||||||
Big Spring, TX Refinery | ||||||||||||||||||||||||||
Days in period | 92 | 92 | 365 | 365 | ||||||||||||||||||||||
Products manufactured (average bpd): | ||||||||||||||||||||||||||
Gasoline | 20,605 | 40,112 | 30,689 | 35,640 | ||||||||||||||||||||||
Diesel/Jet | 12,815 | 27,580 | 22,125 | 25,284 | ||||||||||||||||||||||
Petrochemicals, LPG, NGLs | 1,387 | 3,832 | 2,942 | 3,712 | ||||||||||||||||||||||
Asphalt | 1,895 | 1,509 | 1,721 | 1,475 | ||||||||||||||||||||||
Other | 1,887 | 1,369 | 1,481 | 1,404 | ||||||||||||||||||||||
Total production | 38,589 | 74,402 | 58,958 | 67,515 | ||||||||||||||||||||||
Throughput (average bpd): | ||||||||||||||||||||||||||
Crude oil | 35,798 | 72,030 | 59,476 | 68,038 | ||||||||||||||||||||||
Other feedstocks | 3,327 | 3,547 | 191 | 843 | ||||||||||||||||||||||
Total throughput | 39,125 | 75,577 | 59,667 | 68,881 | ||||||||||||||||||||||
Big Spring refining production margin ($ in millions) | $ | 49.7 | $ | 39.9 | $ | 420.1 | $ | 126.3 | ||||||||||||||||||
Per barrel of throughput: | ||||||||||||||||||||||||||
Big Spring refining production margin | $ | 13.80 | $ | 5.73 | $ | 19.29 | $ | 5.02 | ||||||||||||||||||
Operating expenses (4) | $ | 10.50 | $ | 3.98 | $ | 7.48 | $ | 4.84 | ||||||||||||||||||
Crude Slate: (% based on amount received in period) | ||||||||||||||||||||||||||
WTI crude oil | 74.3 | % | 77.3 | % | 70.1 | % | 71.0 | % | ||||||||||||||||||
WTS crude oil | 25.7 | % | 22.7 | % | 29.9 | % | 29.0 | % | ||||||||||||||||||
Capture Rate (5) | 47.2 | % | 33.3 | % | 61.4 | % | 30.2 | % | ||||||||||||||||||
Krotz Springs, LA Refinery | ||||||||||||||||||||||||||
Days in period | 92 | 92 | 365 | 365 | ||||||||||||||||||||||
Products manufactured (average bpd): | ||||||||||||||||||||||||||
Gasoline | 41,073 | 33,679 | 34,370 | 26,170 | ||||||||||||||||||||||
Diesel/Jet | 31,691 | 28,250 | 31,576 | 21,387 | ||||||||||||||||||||||
Heavy oils | 5,323 | 599 | 2,418 | 719 | ||||||||||||||||||||||
Petrochemicals, LPG, NGLs | 6,156 | 6,595 | 6,749 | 5,170 | ||||||||||||||||||||||
Other | 238 | 9,759 | 4,458 | 7,895 | ||||||||||||||||||||||
Total production | 84,481 | 78,882 | 79,571 | 61,341 | ||||||||||||||||||||||
Throughput (average bpd): | ||||||||||||||||||||||||||
Crude oil | 76,850 | 70,525 | 74,808 | 55,321 | ||||||||||||||||||||||
Other feedstocks | 6,793 | 7,392 | 4,118 | 5,912 | ||||||||||||||||||||||
Total throughput | 83,643 | 77,917 | 78,926 | 61,233 | ||||||||||||||||||||||
Krotz refining production margin ($ in millions) | $ | 103.0 | $ | 61.5 | $ | 475.5 | $ | 134.2 | ||||||||||||||||||
Per barrel of throughput: | ||||||||||||||||||||||||||
Krotz Springs refining production margin | $ | 13.39 | $ | 8.58 | $ | 16.51 | $ | 6.00 | ||||||||||||||||||
Operating expenses (4) | $ | 5.16 | $ | 3.85 | $ | 5.25 | $ | 4.55 | ||||||||||||||||||
Crude Slate: (% based on amount received in period) | ||||||||||||||||||||||||||
WTI Crude | 70.3 | % | 64.7 | % | 63.4 | % | 65.3 | % | ||||||||||||||||||
Gulf Coast Sweet Crude | 19.6 | % | 35.3 | % | 29.8 | % | 34.3 | % | ||||||||||||||||||
Other | 10.1 | % | — | % | 6.8 | % | 0.4 | % | ||||||||||||||||||
Capture Rate (5) | 70.1 | % | 77.3 | % | 74.3 | % | 63.0 | % |
14 | |
Logistics Segment Selected Information | Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||||||||||||
Gathering & Processing: (average bpd) | ||||||||||||||||||||||||||
Lion Pipeline System: | ||||||||||||||||||||||||||
Crude pipelines (non-gathered) | 68,798 | 80,145 | 78,519 | 65,335 | ||||||||||||||||||||||
Refined products pipelines | 35,585 | 66,632 | 56,382 | 48,757 | ||||||||||||||||||||||
SALA Gathering System | 13,136 | 15,660 | 15,391 | 14,460 | ||||||||||||||||||||||
East Texas Crude Logistics System | 25,154 | 18,499 | 21,310 | 22,647 | ||||||||||||||||||||||
Permian Gathering Assets (1) | 191,119 | 83,353 | 128,725 | 80,285 | ||||||||||||||||||||||
Plains Connection System | 234,164 | 133,281 | 183,827 | 124,025 | ||||||||||||||||||||||
Delaware Gathering Assets: (2) | ||||||||||||||||||||||||||
Natural Gas Gathering and Processing (Mcfd) (3) | 60,669 | — | 60,971 | — | ||||||||||||||||||||||
Crude Oil Gathering (average bpd) | 91,526 | — | 87,519 | — | ||||||||||||||||||||||
Water Disposal and Recycling (average bpd) | 80,028 | — | 72,056 | — | ||||||||||||||||||||||
Wholesale Marketing & Terminalling: | ||||||||||||||||||||||||||
East Texas - Tyler Refinery sales volumes (average bpd) (4) | 64,825 | 55,755 | 66,058 | 68,497 | ||||||||||||||||||||||
Big Spring wholesale marketing throughputs (average bpd) | 58,061 | 83,385 | 71,580 | 78,370 | ||||||||||||||||||||||
West Texas wholesale marketing throughputs (average bpd) | 10,835 | 10,007 | 10,206 | 10,026 | ||||||||||||||||||||||
West Texas wholesale marketing margin per barrel | $ | 3.62 | $ | 3.97 | $ | 4.15 | $ | 3.72 | ||||||||||||||||||
Terminalling throughputs (average bpd) (5) | 127,277 | 124,476 | 132,262 | 138,301 |
Retail Segment Selected Information | Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||||||||||||
Number of stores (end of period) | 249 | 248 | 249 | 248 | ||||||||||||||||||||||
Average number of stores | 249 | 248 | 249 | 248 | ||||||||||||||||||||||
Average number of fuel stores | 244 | 243 | 244 | 243 | ||||||||||||||||||||||
Retail fuel sales (thousands of gallons) | 41,523 | 42,303 | 170,668 | 166,959 | ||||||||||||||||||||||
Average retail gallons sold per average number of fuel stores (in thousands) | 171 | 174 | 701 | 688 | ||||||||||||||||||||||
Average retail sales price per gallon sold | $ | 3.37 | $ | 3.11 | $ | 3.76 | $ | 2.88 | ||||||||||||||||||
Retail fuel margin ($ per gallon) (1) | $ | 0.32 | $ | 0.30 | $ | 0.33 | $ | 0.34 | ||||||||||||||||||
Merchandise sales (in millions) | $ | 77.4 | $ | 75.5 | $ | 314.7 | $ | 316.4 | ||||||||||||||||||
Merchandise sales per average number of stores (in millions) | $ | 0.3 | $ | 0.3 | $ | 1.3 | $ | 1.3 | ||||||||||||||||||
Merchandise margin % | 32.1 | % | 33.6 | % | 33.3 | % | 33.2 | % | ||||||||||||||||||
15 | |
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Same-Store Comparison (2) | (Unaudited) | (Unaudited) | ||||||||||||||||||||||||
Change in same-store fuel gallons sold | (1.8) | % | 3.0 | % | 2.5 | % | (5.3) | % | ||||||||||||||||||
Change in same-store merchandise sales | 2.5 | % | 0.7 | % | 0.3 | % | (1.8) | % |
Supplemental Information | ||||||||||||||||||||
Schedule of Selected Segment Financial Data, Pricing Statistics Impacting our Refining Segment Selected Financial Information and Other Reconciliation of Amounts Reported Under U.S. GAAP | ||||||||||||||||||||
Selected Segment Financial Data | Three Months Ended December 31, 2022 | |||||||||||||||||||||||||||||||
$ in millions (unaudited) | Refining | Logistics | Retail | Corporate, Other and Eliminations | Consolidated | |||||||||||||||||||||||||||
Net revenues (excluding intercompany fees and revenues) | $ | 4,096.6 | $ | 164.9 | $ | 217.2 | $ | 0.5 | $ | 4,479.2 | ||||||||||||||||||||||
Inter-segment fees and revenues | 231.8 | 104.1 | — | (335.9) | — | |||||||||||||||||||||||||||
Total revenues | $ | 4,328.4 | $ | 269.0 | $ | 217.2 | $ | (335.4) | $ | 4,479.2 | ||||||||||||||||||||||
Cost of sales | 4,413.7 | 203.4 | 179.2 | (344.4) | 4,451.9 | |||||||||||||||||||||||||||
Gross margin | $ | (85.3) | $ | 65.6 | $ | 38.0 | $ | 9.0 | $ | 27.3 | ||||||||||||||||||||||
Three Months Ended December 31, 2021 | ||||||||||||||||||||||||||||||||
$ in millions (unaudited) | Refining | Logistics | Retail | Corporate, Other and Eliminations | Consolidated | |||||||||||||||||||||||||||
Net revenues (excluding intercompany fees and revenues) | $ | 2,820.8 | $ | 79.5 | $ | 207.1 | $ | 0.6 | $ | 3,108.0 | ||||||||||||||||||||||
Inter-segment fees and revenues | 200.1 | 110.4 | — | (310.5) | — | |||||||||||||||||||||||||||
Total revenues | $ | 3,020.9 | $ | 189.9 | $ | 207.1 | $ | (309.9) | $ | 3,108.0 | ||||||||||||||||||||||
Cost of sales | 3,053.3 | 134.1 | 169.2 | (324.0) | 3,032.6 | |||||||||||||||||||||||||||
Gross margin | $ | (32.4) | $ | 55.8 | $ | 37.9 | $ | 14.1 | $ | 75.4 | ||||||||||||||||||||||
Year Ended December 31, 2022 | ||||||||||||||||||||||||||||||||
$ in millions (unaudited) | Refining | Logistics | Retail | Corporate, Other and Eliminations | Consolidated | |||||||||||||||||||||||||||
Net revenues (excluding intercompany fees and revenues) | $ | 18,730.9 | $ | 557.0 | $ | 956.9 | $ | 1.0 | $ | 20,245.8 | ||||||||||||||||||||||
Inter-segment fees and revenues | 1,032.1 | 479.4 | — | (1,511.5) | — | |||||||||||||||||||||||||||
Total revenues | $ | 19,763.0 | $ | 1,036.4 | $ | 956.9 | $ | (1,510.5) | $ | 20,245.8 | ||||||||||||||||||||||
Cost of sales | 19,222.6 | 787.0 | 796.3 | (1,484.7) | 19,321.2 | |||||||||||||||||||||||||||
Gross margin | $ | 540.4 | $ | 249.4 | $ | 160.6 | $ | (25.8) | $ | 924.6 | ||||||||||||||||||||||
16 | |
Year Ended December 31, 2021 | ||||||||||||||||||||||||||||||||
$ in millions (unaudited) | Refining | Logistics | Retail | Corporate, Other and Eliminations | Consolidated | |||||||||||||||||||||||||||
Net revenues (excluding intercompany fees and revenues) | $ | 9,564.9 | $ | 282.1 | $ | 797.4 | $ | 3.8 | $ | 10,648.2 | ||||||||||||||||||||||
Inter-segment fees and revenues | 702.9 | 418.8 | — | (1,121.7) | — | |||||||||||||||||||||||||||
Total revenues | $ | 10,267.8 | $ | 700.9 | $ | 797.4 | $ | (1,117.9) | $ | 10,648.2 | ||||||||||||||||||||||
Cost of sales | 10,351.0 | 484.8 | 635.6 | (1,085.9) | 10,385.5 | |||||||||||||||||||||||||||
Gross margin | $ | (83.2) | $ | 216.1 | $ | 161.8 | $ | (32.0) | $ | 262.7 | ||||||||||||||||||||||
Pricing Statistics | Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||
(average for the period presented) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
WTI — Cushing crude oil (per barrel) | $ | 82.82 | $ | 77.33 | $ | 94.62 | $ | 68.11 | ||||||||||||||||||
WTI — Midland crude oil (per barrel) | $ | 82.64 | $ | 77.82 | $ | 94.38 | $ | 68.55 | ||||||||||||||||||
WTS -- Midland crude oil (per barrel) | $ | 81.55 | $ | 76.86 | $ | 94.29 | $ | 68.29 | ||||||||||||||||||
LLS (per barrel) | $ | 85.47 | $ | 78.38 | $ | 96.85 | $ | 69.60 | ||||||||||||||||||
Brent crude oil (per barrel) | $ | 88.63 | $ | 79.65 | $ | 99.06 | $ | 70.96 | ||||||||||||||||||
U.S. Gulf Coast 5-3-2 crack spread (per barrel) (1) | $ | 32.25 | $ | 17.51 | $ | 33.36 | $ | 16.62 | ||||||||||||||||||
U.S. Gulf Coast 3-2-1 crack spread (per barrel) (1) | $ | 29.27 | $ | 17.21 | $ | 31.41 | $ | 16.62 | ||||||||||||||||||
U.S. Gulf Coast 2-1-1 crack spread (per barrel) (1) | $ | 19.11 | $ | 11.10 | $ | 22.21 | $ | 9.53 | ||||||||||||||||||
U.S. Gulf Coast Unleaded Gasoline (per gallon) | $ | 2.32 | $ | 2.22 | $ | 2.77 | $ | 2.02 | ||||||||||||||||||
Gulf Coast Ultra low sulfur diesel (per gallon) | $ | 3.37 | $ | 2.32 | $ | 3.46 | $ | 2.02 | ||||||||||||||||||
U.S. Gulf Coast high sulfur diesel (per gallon) | $ | 2.66 | $ | 2.05 | $ | 2.90 | $ | 1.75 | ||||||||||||||||||
Natural gas (per MMBTU) | $ | 6.09 | $ | 4.84 | $ | 6.54 | $ | 3.73 |
17 | |
Other Reconciliation of Amounts Reported Under U.S. GAAP | ||||||||||||||||||||||||||
$ in millions (unaudited) | ||||||||||||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||
Reconciliation of gross margin to Refining margin to Adjusted refining margin | 2022 | 2021 As Adjusted (1) | 2022 | 2021 As Adjusted (1) | ||||||||||||||||||||||
Gross margin | $ | (85.3) | $ | (32.4) | $ | 540.4 | $ | (83.2) | ||||||||||||||||||
Add back (items included in cost of sales): | ||||||||||||||||||||||||||
Operating expenses (excluding depreciation and amortization) | 147.8 | 123.9 | 604.7 | 437.8 | ||||||||||||||||||||||
Depreciation and amortization | 53.5 | 49.7 | 205.1 | 198.7 | ||||||||||||||||||||||
Refining Margin | $ | 116.0 | $ | 141.2 | $ | 1,350.2 | $ | 553.3 | ||||||||||||||||||
Adjusting items, after tax | ||||||||||||||||||||||||||
Net inventory LCM valuation loss (benefit) | (17.1) | 8.0 | 2.0 | 8.4 | ||||||||||||||||||||||
Other inventory impact | 193.6 | (61.6) | 331.1 | (218.1) | ||||||||||||||||||||||
Total unrealized hedging (gain) loss where the hedged item is not yet recognized in the financial statements | 49.8 | (5.5) | 24.1 | 7.0 | ||||||||||||||||||||||
Non-cash change in fair value of S&O Obligation associated with hedging activities | — | — | — | (6.9) | ||||||||||||||||||||||
Total adjusting items | 226.3 | (59.1) | 357.2 | (209.6) | ||||||||||||||||||||||
Adjusted Refining Margin | $ | 342.3 | $ | 82.1 | $ | 1,707.4 | $ | 343.7 |
Calculation of Net Debt | December 31, 2022 | December 31, 2021 | ||||||||||||
Long-term debt - current portion | $ | 74.5 | $ | 92.2 | ||||||||||
Long-term debt - non-current portion | 2,979.2 | 2,125.8 | ||||||||||||
Total long-term debt | 3,053.7 | 2,218.0 | ||||||||||||
Less: Cash and cash equivalents | 841.3 | 856.5 | ||||||||||||
Net debt - consolidated | 2,212.4 | 1,361.5 | ||||||||||||
Less: DKL net debt | 1,653.6 | 894.7 | ||||||||||||
Net debt, excluding DKL | $ | 558.8 | $ | 466.8 |
18 | |
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