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Blog Exposure - Delek US Completes Divestment of AltAir Paramount and Paramount's California-based Refining and Pipeline Assets to World Energy, LLC

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LONDON, UK / ACCESSWIRE / March 21, 2018 / Active-Investors.com has just released a free research report on Delek US Holdings, Inc. (NYSE: DK) ("Delek"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=DK as the Company's latest news hit the wire. On March 19, 2018, the Company announced that it has completed the divestment of its AltAir Paramount, LLC and Paramount's California-based refining and pipeline assets to an affiliate of World Energy, LLC. Delek expects to receive approximately $72 million for these assets and the amount includes adjustments for estimated working capital, the Company's portion of the biodiesel tax credit for 2017, and transaction related costs. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for Adams Resources & Energy, Inc. (NYSE AMER: AE), which also belongs to the Basic Materials sector as the Company Delek US Holdings. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Delek US Holdings most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Details of the Divestment

The assets divested under the current transaction includes Delek's 100% interest in renewable jet and diesel producer AltAir Paramount, LLC, refinery assets of Paramount Petroleum, LLC, including associated pipelines and storage tanks. The divested assets include the following:

  • A 63-acre complex which houses a renewable jet / renewable diesel production facility with capacity of 45 million gallon per year;
  • Product storage area for 1.7 million barrels;
  • A truck rack with 28 thousand barrels per day of throughput capacity;
  • A rail storage for up to 70 rail-cars;
  • 71-mile-long pipelines connecting the jet and diesel production facility to major distribution hubs in southern California including Long Beach.

Post the close of transaction, Bryan Sherbacow, Co-founder of AltAir, will join World Energy's leadership team.

The decision to divest these assets is part of Delek's strategy of monetizing non-core assets in California. Delek plans to utilize the funds from the current transaction and any future divestments to increase cash for distribution to its shareholders.

Management Comments

Commenting on the divestment, Uzi Yemin, Chairman, President and CEO of Delek, said:

"We have been focused on deriving value from our non-core assets in California as they are outside of our geographic footprint. This marks the second step in this process following the announced agreement to divest five west coast asphalt terminals for $75.0 million. The Paramount transaction provides additional cash to Delek and should enable us to reduce costs. We continue to evaluate options for our Long Beach and Bakersfield assets."

Gene Gebolys, CEO of World Energy, added:

"This acquisition places us in the heart of the growing California cleaner fuels market by adding to our platform the world's first renewable jet refinery and one of only three US renewable diesel plants. Our move into California, into renewable jet/diesel technology, and into expanding our downstream distribution capabilities are important next steps in our effort to establish a reliable coast to coast supply presence for growing blended biofuel customers."

About World Energy

Founded in 1998, Boston, Massachusetts-based World Energy has been at the forefront of biodiesel commercialization, playing critical roles in manufacturing, distribution, market development, and international trade. It is one of the largest and longest serving advanced biofuel suppliers in North America with biodiesel manufacturing plants in Houston - Texas, Natchez - Mississippi, Rome - Georgia, Harrisburg - Pennsylvania, and now Paramount - California. The Company produces over 200 Million gallons (660,660 Metric Tons) of biodiesel annually.

About Delek US Holdings Inc.

Founded in 2001, Brentwood, Tennessee-based Delek is a downstream energy company with assets in petroleum refining, logistics, convenience store retailing, asphalt, and renewables. The Company's refining assets include refineries in Tyler and Big Spring, Texas, El Dorado, Arkansas, and Krotz Springs, Louisiana. The combined crude throughput capacity from these refineries is 302,000 barrels per day.

Stock Performance Snapshot

March 20, 2018 - At Tuesday's closing bell, Delek US Holdings' stock climbed 1.05%, ending the trading session at $38.46.

Volume traded for the day: 1.14 million shares.

Stock performance in the last month – up 14.46%; previous three-month period – up 18.19%; past twelve-month period – up 50.82%; and year-to-date - up 10.07%

After yesterday's close, Delek US Holdings' market cap was at $3.08 billion.

Price to Earnings (P/E) ratio was at 26.27.

The stock has a dividend yield of 2.08%.

The stock is part of the Basic Materials sector, categorized under the Oil & Gas Refining & Marketing industry. This sector was up 0.5% at the end of the session.

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