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Delek US Holdings Reports Third Quarter 2019 Results

  • Reported third quarter net income of $51.3 million and Adjusted EBITDA of $163.1 million
  • Significant cash generation helped fund a $75.3 million investment in Wink to Webster Joint Venture
  • Increased dedicated acreage on Big Spring Gathering system to over 275,000 acres
  • Record quarter contribution margin from the logistics segment
  • El Dorado positioned for IMO, post vacuum tower design change, with distillate yield enhancement
  • Increasing regular quarterly dividend by $0.01 or 3.5% to $0.30 per share
  • Expect to repurchase approximately $30 million of stock during the fourth quarter 2019

BRENTWOOD, Tenn., Nov. 04, 2019 (GLOBE NEWSWIRE) -- Delek US Holdings, Inc. (DK) (“Delek US”) today announced financial results for its third quarter ended September 30, 2019. Delek US reported third quarter 2019 net income of $51.3 million, or $0.68 per diluted share, versus a net income of $179.8 million, or $2.03 per diluted share, for the quarter ended September 30, 2018.  On an adjusted basis, Delek US reported adjusted net income of $58.7 million, or $0.78 per diluted share for the third quarter 2019. This compares to adjusted net income of $186.4 million, or $2.15 per diluted share, in the prior-year period. Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") was $163.1 million compared to Adjusted EBITDA of $325.5 million in the prior-year period. Reconciliations of net income reported under U.S. GAAP to adjusted net income and Adjusted EBITDA are included in the financial tables attached to this release.

Adjusted quarterly results include a net income benefit of approximately $5.6 million or $0.07 per share. This consists of a net before tax gain of $20.7 million related to RIN waivers, partially offset by a refining inventory valuation headwind of $13.5 million, separate from the effect of a lower of cost or market loss. The overall decrease in year-over-year results were primarily driven by a lower crude differential environment where the realized Midland to Cushing differential declined from $10.40 per barrel in the third quarter 2018 to $0.94 per barrel in the third quarter of 2019. The effect from a lower crude oil differential was partially offset by the alkylation unit at Krotz Springs that began operating in the second quarter 2019 and an increase in income from joint ventures.

Uzi Yemin, Chairman, President and Chief Executive Officer of Delek US, stated, "Cash generation in the quarter was significant and allowed us to fund an approximate investment of $75.3 million in the Wink to Webster project and return cash to shareholders. We continue evaluating project financing as a funding option for Wink to Webster and, if successful, we expect limited equity contributions beyond the investments in the third quarter. Our Big Spring Gathering system continues expanding, where we now have over 275,000 dedicated acres. Our gathering system build-out positions us uniquely among refiners with access to crude, in excess of our refining capability. The Wink to Webster pipeline compliments this "long crude position" by providing increased optionality to place barrels at the most attractive destination points, including the Gulf Coast."

Mr. Yemin continued, "The macro environment is moving toward our competitive advantage underpinned by strong distillate margins. With a design change completed at El Dorado at the beginning of October, this facility is now positioned to run at improved utilization rates with enhanced product yield, largely driven by higher distillate output. Finally, we remain committed to returning cash to shareholders. Our quarterly dividend is being increased by 3.5% from the second quarter 2019, marking the sixth increase since the dividend paid during the first quarter of 2018. We have continued to repurchase shares, which resulted in a 16% reduction in our weighted average share count in the third quarter 2019, compared to the peak in the second quarter 2018. As we continue to balance our capital allocation program between investing in our business and returning cash to shareholders, we expect to repurchase approximately $30 million of our common stock in the fourth quarter 2019."

Regular Quarterly Dividend and Share Repurchase
Delek US announced today its Board of Directors declared a regular quarterly cash dividend of $0.30 per share. This represents a 3.5% increase from our previous regular quarterly dividend. Shareholders of record on November 18, 2019 will receive this cash dividend payable on December 2, 2019.

During the third quarter 2019, Delek US repurchased approximately 1.2 million shares of Delek US common stock for approximately $43.0 million, with an average price of $34.76 per share. On a year to date basis, Delek US repurchased approximately 4.2 million shares for approximately $147.8 million with an average price of $35.39 per share. At September 30, 2019, there was approximately $261.9 million of total available authorization remaining to repurchase shares. Delek US expects additional repurchases of approximately $30.0 million of Delek US common stock during the fourth quarter 2019.

Liquidity
As of September 30, 2019, Delek US had a cash balance of $1,006.4 million and total consolidated debt of $1,999.9 million, resulting in net debt of $993.5 million.  As of September 30, 2019, Delek Logistics Partners, LP (DKL) ("Delek Logistics") had $840.8 million of total debt and $6.4 million of cash, which is included in the consolidated amounts on Delek US' balance sheet. Excluding Delek Logistics, Delek US had approximately $1,000.0 million in cash and $1,159.1 million of debt, or a $159.1 million net debt position.

Refining Segment
Refining segment contribution margin was $127.5 million in the third quarter 2019 compared to $319.5 million in the third quarter 2018. On a year-over-year basis, results were negatively impacted by a lower crude differential environment. Taking into account the timing effect between the purchase price of Permian Basin crude oil and when it is realized as finished products are sold, the Midland-Cushing differential in the reported results was a realized discount of approximately $0.94 per barrel in the third quarter 2019 compared to a realized discount of approximately $10.40 per barrel in the prior year period.  Contango in the oil futures market was $0.08 per barrel in the third quarter 2019, compared to backwardation of $1.27 per barrel in the third quarter 2018.

Third Quarter results were negatively impacted by planned downtime at El Dorado. A design change was completed on the vacuum tower at the end of the quarter. The facility is now positioned to run at higher utilization rates, with potential to improve the distillate yield over 4%, along with increased flexibility to run West Texas Sour crude.

In August 2019, the El Dorado, Arkansas, Krotz Springs, Louisiana and Tyler, Texas refineries received approval from the Environmental Protection Agency for a small refinery exemption from the requirements of the renewable fuel standard for the 2018 calendar year. This waiver resulted in approximately $20.7 million of benefit with $7.4 million of RINs expense reduction at El Dorado, $4.9 million at Krotz Springs and $8.4 million at Tyler.

Logistics Segment
The logistics segment contribution margin was a record in the third quarter 2019, with an increase to $46.6 million compared to $43.1 million in the third quarter 2018. Strong results in the third quarter 2019 benefited from improved performance in the Paline Pipeline and SALA gathering system, which was partially offset by a lower gross margin in west Texas.

Retail Segment
For the third quarter 2019, contribution margin was $18.6 million compared to $15.3 million in the prior year period for the retail segment. Merchandise sales were approximately $81.5 million with an average retail margin of 30.5% in the third quarter 2019, compared to merchandise sales of approximately $89.7 million with an average retail margin of 31.3% in the prior year period. Approximately 54.9 million retail fuel gallons were sold at an average margin of $0.31 per gallon in the third quarter 2019 compared to 56.0 million retail fuel gallons sold at an average margin of $0.23 per gallon in the third quarter 2018. In the third quarter 2019, the average store count was 263 compared to 295 in the prior year period.  On a same store sales basis in the third quarter 2019, merchandise sales decreased 1.5% and fuel gallons sold increased 3.0% compared to the prior-year period.

Corporate/Other
Contribution margin from Corporate/Other was $10.6 million in the third quarter 2019 compared to a loss of $17.2 million in the prior-year period. This year over year increase was driven by a combination of commercial initiative contributions, including Permian gathering and asphalt, along with approximately $13 million of unrealized hedging income, that is adjusted from reported net income.

Third Quarter 2019 Results | Conference Call Information
Delek US will hold a conference call to discuss its third quarter 2019 results on Tuesday, November 5, 2019 at 8:30 a.m. Central Time. Investors will have the opportunity to listen to the conference call live by going to www.DelekUS.com and clicking on the Investor Relations tab.  Participants are encouraged to register at least 15 minutes early to download and install any necessary software. Presentation materials accompanying the call will be available on the investor relations tab of the Delek US website approximately five minutes prior to the start of the call. For those who cannot listen to the live broadcast, a telephonic replay will be available through February 5, 2020 by dialing (855) 859-2056, passcode 4964936. An archived version of the replay will also be available at www.DelekUS.com for 90 days.

Investors may also wish to listen to Delek Logistics’ (DKL) third quarter 2019 earnings conference call that will be held on Tuesday, November 5, 2019 at 7:30 a.m. Central Time and review Delek Logistics’ earnings press release. Market trends and information disclosed by Delek Logistics may be relevant to the logistics segment reported by Delek US. Both a replay of the conference call and press release for Delek Logistics are available online at www.deleklogistics.com.

About Delek US Holdings, Inc.
Delek US Holdings, Inc. is a diversified downstream energy company with assets in petroleum refining, logistics, renewable fuels and convenience store retailing.  The refining assets consist of refineries operated in Tyler and Big Spring, Texas, El Dorado, Arkansas and Krotz Springs, Louisiana with a combined nameplate crude throughput capacity of 302,000 barrels per day.

The logistics operations primarily consist of Delek Logistics Partners, LP (DKL).  Delek US Holdings, Inc. and its affiliates own approximately 63% (including the 2% general partner interest) of Delek Logistics Partners, LP.  Delek Logistics Partners, LP is a growth-oriented master limited partnership focused on owning and operating midstream energy infrastructure assets.

The convenience store retail business is the largest 7-Eleven licensee in the United States and operates approximately 263 convenience stores in central and west Texas and New Mexico.

Safe Harbor Provisions Regarding Forward-Looking Statements
This press release contains forward-looking statements that are based upon current expectations and involve a number of risks and uncertainties. Statements concerning current estimates, expectations and projections about future results, performance, prospects, opportunities, plans, actions and events and other statements, concerns, or matters that are not historical facts are “forward-looking statements,” as that term is defined under the federal securities laws.  These statements contain words such as “possible,” “believe,” “should,” “could,” “would,” “predict,” “plan,” “estimate,” “intend,” “may,” “anticipate,” “will,” “if,” “potential,” “expect” or similar expressions, as well as statements in the future tense. These forward-looking statements include, but are not limited to, statements regarding throughput at the Company’s refineries; crude oil prices, discounts and quality and our ability to benefit therefrom; share repurchases; returning cash to shareholders; payments of dividends; growth; investments into our business; the performance and execution of our midstream growth initiatives, including the Big Spring Gathering System, the Red River joint venture and the Wink to Webster long-haul crude oil pipeline, and the flexibility, benefits and  the expected returns therefrom; RINs waivers and tax credits and the value and benefit therefrom; cash and liquidity; opportunities and anticipated performance and financial position.

Investors are cautioned that the following important factors, among others, may affect these forward-looking statements. These factors include, but are not limited to: uncertainty related to timing and amount of future share repurchases and dividend payments; risks and uncertainties with respect to the quantities and costs of crude oil we are able to obtain and the price of the refined petroleum products we ultimately sell; risks related to Delek US’ exposure to Permian Basin crude oil, such as supply, pricing, gathering, production and transportation capacity; gains and losses from derivative instruments; management's ability to execute its strategy of growth through acquisitions and the transactional risks associated with acquisitions and dispositions; acquired assets may suffer a diminishment in fair value as a result of which we may need to record a write-down or impairment in carrying value of the asset; changes in the scope, costs, and/or timing of capital and maintenance projects; the ability to grow the Big Spring Gathering System; the ability of the Red River joint venture to complete the expansion project to increase the Red River pipeline capacity; the ability of the joint venture to construct the Wink to Webster long haul crude oil pipeline; operating hazards inherent in transporting, storing and processing crude oil and intermediate and finished petroleum products; our competitive position and the effects of competition; the projected growth of the industries in which we operate; general economic and business conditions affecting the southern United States; and other risks described in Delek US’ filings with the United States Securities and Exchange Commission (the “SEC”), including risks disclosed in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other filings and reports with the SEC.

Forward-looking statements should not be read as a guarantee of future performance or results and will not be accurate indications of the times at, or by, which such performance or results will be achieved.  Forward-looking information is based on information available at the time and/or management's good faith belief with respect to future events, and is subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statements.  Delek US undertakes no obligation to update or revise any such forward-looking statements to reflect events or circumstances that occur, or which Delek US becomes aware of, after the date hereof, except as required by applicable law or regulation.

Non-GAAP Disclosures:

Our management uses certain “non-GAAP” operational measures to evaluate our operating segment performance and non-GAAP financial measures to evaluate past performance and prospects for the future to supplement our GAAP financial information presented in accordance with U.S. GAAP. These financial and operational non-GAAP measures are important factors in assessing our operating results and profitability and include:

  • Adjusted net income (loss) - calculated as net income attributable to Delek US adjusted for certain identified infrequently occurring items, non-cash items and items that are not attributable to our on-going operations (collectively, "Adjusting Items") recorded during the period;
  • Adjusted unrealized hedging (gains) losses - calculated as GAAP unrealized (gains) losses on commodity derivatives that are economic hedges but not designated as hedging instruments adjusted to exclude unrealized (gains) losses where the instrument has matured but where it has not cash settled as of the balance sheet date. This adjustment more appropriately aligns matured commodity derivatives gains and losses with the recognition of the related cost of materials and other. There are no premiums paid or received at the inception of the derivative contracts, and upon settlement there is no cost recovery associated with these contracts;
  • Adjusted net income (loss) per share - calculated as adjusted net income (loss) divided by weighted average shares outstanding, assuming dilution, as adjusted for any anti-dilutive instruments that may not be permitted for consideration in GAAP earnings per share calculations but that nonetheless favorably impact dilution;
  • Earnings before interest, taxes, depreciation and amortization ("EBITDA") - calculated as net income attributable to Delek adjusted to add back interest expense, income tax expense, depreciation and amortization;
  • Adjusted EBITDA - calculated as EBITDA adjusted for the identified adjusting items in adjusted net income (loss) that do not relate to interest expense, income tax expense, depreciation or amortization, and adjusted to include income (loss) attributable to non-controlling interests;
  • Refining margin - calculated as the difference between total refining revenues and total cost of materials and other; and
  • Refining margin per sales barrel - calculated as refining margin divided by our average refining sales in barrels per day (excluding purchased barrels) multiplied by 1,000 and multiplied by the number of days in the period.

We believe these non-GAAP operational and financial measures are useful to investors, lenders, ratings agencies and analysts to assess our ongoing performance because, when reconciled to their most comparable GAAP financial measure, they provide improved comparability between periods through the exclusion of certain items that we believe are not indicative of our core operating performance and that may obscure our underlying results and trends.

Non-GAAP measures have important limitations as analytical tools, because they exclude some, but not all, items that affect net earnings and operating income. These measures should not be considered substitutes for their most directly comparable U.S. GAAP financial measures.  Additionally, because adjusted net income or loss, adjusted net income or loss per share, EBITDA and adjusted EBITDA or any of our other identified non-GAAP measures may be defined differently by other companies in its industry, Delek US' definition may not be comparable to similarly titled measures of other companies. See the accompanying tables in this earnings release for a reconciliation of these non-GAAP measures to the most directly comparable GAAP measures.


 
Delek US Holdings, Inc.
Condensed Consolidated Balance Sheets (Unaudited)
(In millions, except share and per share data)
    September 30,
 2019
  December 31,
 2018
ASSETS        
Current assets:        
Cash and cash equivalents   $ 1,006.4     $ 1,079.3  
Accounts receivable, net   834.3     514.4  
Inventories, net of inventory valuation reserves   908.6     690.9  
Other current assets   115.1     135.7  
Total current assets   2,864.4     2,420.3  
Property, plant and equipment:        
Property, plant and equipment   3,309.9     2,999.6  
Less: accumulated depreciation   (944.7 )   (804.7 )
Property, plant and equipment, net   2,365.2     2,194.9  
Operating lease right-of-use assets   187.6      
Goodwill   856.6     857.8  
Other intangibles, net   92.9     104.4  
Equity method investments   360.2     130.3  
Other non-current assets   66.4     52.9  
Total assets   $ 6,793.3     $ 5,760.6  
         
LIABILITIES AND STOCKHOLDERS’ EQUITY        
Current liabilities:        
Accounts payable   $ 1,364.5     $ 1,011.2  
Accounts payable to related parties        
Current portion of long-term debt   64.5     32.0  
Obligation under Supply and Offtake Agreements   265.0     312.6  
Current portion of operating lease liabilities   45.1      
Accrued expenses and other current liabilities   487.6     307.7  
Total current liabilities   2,226.7     1,663.5  
Non-current liabilities:        
Long-term debt, net of current portion   1,935.4     1,751.3  
Obligation under Supply and Offtake Agreements   143.6     49.6  
Environmental liabilities, net of current portion   139.1     139.5  
Asset retirement obligations   70.3     75.5  
Deferred tax liabilities   232.1     210.2  
Operating lease liabilities, net of current portion   144.2      
Other non-current liabilities   38.5     62.9  
Total non-current liabilities   2,703.2     2,289.0  
Stockholders’ equity:        
Common stock, $0.01 par value, 110,000,000 shares authorized, 90,940,393 shares and 90,478,075 shares issued at September 30, 2019 and December 31, 2018, respectively   0.9     0.9  
Additional paid-in capital   1,146.1     1,135.4  
Accumulated other comprehensive income   10.7     28.6  
Treasury stock, 16,653,356 shares and 12,477,780 shares, at cost, as of September 30, 2019 and December 31, 2018, respectively   (661.9 )   (514.1 )
Retained earnings   1,195.3     981.8  
Non-controlling interests in subsidiaries   172.3     175.5  
Total stockholders’ equity   1,863.4     1,808.1  
Total liabilities and stockholders’ equity   $ 6,793.3     $ 5,760.6  


 
Delek US Holdings, Inc.
Condensed Consolidated Statements of Income (Unaudited) (1)
(In millions, except share and per share data)
    Three Months Ended September 30,   Nine Months Ended September 30,
    2019   2018 (1)   2019   2018 (1),(2)
                 
Net revenues   $ 2,334.3     $ 2,768.9     $ 7,014.5     $ 7,759.0  
Cost of sales:                
Cost of materials and other   1,964.1     2,244.2     5,731.2     6,537.2  
Operating expenses (excluding depreciation and amortization presented below)   141.7     136.4     418.4     400.7  
Depreciation and amortization   43.8     41.2     125.7     119.3  
Total cost of sales   2,149.6     2,421.8     6,275.3     7,057.2  
Operating expenses related to retail and wholesale business (excluding depreciation and amortization presented below)   25.2     27.6     77.5     78.9  
General and administrative expenses   65.6     58.0     197.3     176.1  
Depreciation and amortization   6.0     8.0     21.0     27.1  
Other operating expense (income), net   0.5     (1.7 )   (0.7 )   (9.4 )
Total operating costs and expenses   2,246.9     2,513.7     6,570.4     7,329.9  
Operating income   87.4     255.2     444.1     429.1  
Interest expense   33.9     31.2     95.4     95.2  
Interest income   (3.2 )   (1.4 )   (9.0 )   (3.0 )
Income from equity method investments   (16.5 )   (4.0 )   (28.4 )   (6.9 )
Gain on sale of business               (13.2 )
Impairment loss on assets held for sale               27.5  
Loss on extinguishment of debt       0.1         9.1  
Other (income) expense, net   (0.2 )   (7.5 )   3.3     (7.9 )
Total non-operating expenses, net   14.0     18.4     61.3     100.8  
Income from continuing operations before income tax expense   73.4     236.8     382.8     328.3  
Income tax expense   13.4     51.0     83.8     72.3  
Income from continuing operations, net of tax   60.0     185.8     299.0     256.0  
Discontinued operations:                
Income (loss) from discontinued operations, including gain (loss) on sale of discontinued operations       0.8     (1.0 )   (10.7 )
Income tax expense (benefit)       0.3     (0.2 )   (2.2 )
Income (loss) from discontinued operations, net of tax       0.5     (0.8 )   (8.5 )
Net income   60.0     186.3     298.2     247.5  
Net income attributed to non-controlling interests   8.7     6.5     20.3     29.0  
Net income attributable to Delek   $ 51.3     $ 179.8     $ 277.9     $ 218.5  
                 
Basic income (loss) per share:                
Income from continuing operations   $ 0.68     $ 2.15     $ 3.64     $ 2.82  
Income (loss) from discontinued operations       0.01     $ (0.01 )   $ (0.20 )
Total basic income per share   $ 0.68     $ 2.16     $ 3.63     $ 2.62  
                 
Diluted income (loss) per share:                
Income from continuing operations   $ 0.68     $ 2.02     $ 3.61     $ 2.69  
Income (loss) from discontinued operations       0.01     $ (0.01 )   $ (0.19 )
Total diluted income per share   $ 0.68     $ 2.03     $ 3.60     $ 2.50  
Weighted average common shares outstanding:                
Basic   75,028,562     83,575,122     76,463,435     83,294,473  
Diluted   75,702,311     89,021,260     77,167,834     88,369,113  
Dividends declared per common share outstanding   $ 0.29     $ 0.25     $ 0.84     $ 0.70  

(1)  Net revenues and cost of materials and other for the quarter and nine months ended September 30, 2018 reflect a correction of an intercompany elimination which resulted in an increase in those accounts of $273.7 million and $347.1 million, respectively, not previously reflected on the unaudited consolidated financial statements in our September 30, 2018 Quarterly Report on Form 10-Q filed on November 9, 2018. Such amounts are not considered material to the financial statements and had no impact to operating income or net income for those periods. See Note 23 to our annual audited consolidated financial statements included in Part II, Item 8 of our 2018 Annual Report on Form 10-K as amended and filed on June 27, 2019, for further discussion.

(2)   Income tax benefit for the nine months ended September 30, 2018 reflects a correction made in our 2018 Annual Report on Form 10-K (filed on March 1, 2019) to record additional deferred tax expense totaling $5.5 million related to the recognition of a valuation allowance on deferred tax assets recognized in connection with the Big Spring Logistic Assets Acquisition (see Note 5) not previously reported in our September 30, 2018 Quarterly Report on Form 10-Q filed on November 09, 2018. Such amount is not considered material to the financial statements or the trend of earnings for that period. See Note 23 to our annual audited consolidated financial statements included in Part II, Item 8 of our 2018 Annual Report on Form 10-K as amended and filed on June 27, 2019, for further discussion.


 
Delek US Holdings, Inc.
Condensed Cash Flow Data (Unaudited)
(In millions)
  Three Months Ended September 30,   Nine Months Ended September 30,
  2019   2018   2019   2018
           
Cash flows from operating activities:          
Cash provided by operating activities - continuing operations $ 213.0     $ 352.1     $ 448.4     $ 231.3  
Cash used in operating activities - discontinued operations     (14.5 )       (30.1 )
Net cash provided by operating activities 213.0     337.6     448.4     201.2  
Cash flows from investing activities:              
Cash used in investing activities - continuing operations (180.1 )   (65.5 )   (509.5 )   (57.2 )
Cash provided by investing activities - discontinued operations     14.5         20.0  
Net cash used in provided by investing activities (180.1 )   (51.0 )   (509.5 )   (37.2 )
Cash flows from financing activities:              
Cash (used in) provided by financing activities - continuing operations 22.1     (310.3 )   (11.8 )   3.2  
Net cash (used in) provided by financing activities 22.1     (310.3 )   (11.8 )   3.2  
Net increase (decrease) in cash and cash equivalents 55.0     (23.7 )   (72.9 )   167.2  
Cash and cash equivalents at the beginning of the period 951.4     1,132.8     1,079.3     941.9  
Cash and cash equivalents at the end of the period 1,006.4     1,109.1     1,006.4     1,109.1  
Less cash and cash equivalents of discontinued operations at the end of the period              
Cash and cash equivalents of continuing operations at the end of the period $ 1,006.4     $ 1,109.1     $ 1,006.4     $ 1,109.1  


                     
Delek US Holdings, Inc.                    
Segment Data (Unaudited)                    
 (In millions)                    
    Three Months Ended September 30, 2019
    Refining   Logistics   Retail   Corporate,
Other and Eliminations
  Consolidated
Net revenues (excluding intercompany fees and sales)   $ 2,036.9     $ 71.4     $ 218.5     $ 7.5     $ 2,334.3  
Inter-segment fees and revenues   139.9     66.2         (206.1 )    
Operating costs and expenses:                    
Cost of materials and other   1,928.6     72.6     176.4     (213.5 )   1,964.1  
Operating expenses (excluding depreciation and amortization presented below)   120.7     18.4     23.5     4.3     166.9  
Segment contribution margin   $ 127.5     $ 46.6     $ 18.6     $ 10.6     $ 203.3  
Depreciation and amortization   34.6     6.6     3.0     5.6     49.8  
General and administrative expenses                   65.6  
Other operating income, net                   0.5  
Operating income                   $ 87.4  
Capital spending (excluding business combinations)   $ 63.3     $ 4.0     $ 3.8     $ 39.4     $ 110.5  


    Three Months Ended September 30, 2018
    Refining (1)   Logistics   Retail   Corporate,
Other and Eliminations
  Consolidated (1)
Net revenues (excluding intercompany fees and sales)   $ 2,420.5     $ 100.3     $ 246.4     $ 1.7     $ 2,768.9  
Intercompany fees and sales   228.8     63.8         (292.6 )    
Operating costs and expenses:                    
Cost of materials and other   2,211.0     105.6     204.4     (276.8 )   2,244.2  
Operating expenses (excluding depreciation and amortization presented below)   118.8     15.4     26.7     3.1     164.0  
Segment contribution margin   $ 319.5     $ 43.1     $ 15.3     $ (17.2 )   $ 360.7  
Depreciation and amortization   33.8     6.7     5.3     3.4     $ 49.2  
General and administrative expenses                   58.0  
Other operating income, net                   (1.7 )
Operating income                   $ 255.2  
Capital spending (excluding business combinations)   $ 51.1     $ 2.9     $ 1.9     $ 30.2     $ 86.1  


                     
Delek US Holdings, Inc.                    
Segment Data (Unaudited)                    
 (In millions)                    
    Nine Months Ended September 30, 2019
    Refining   Logistics   Retail   Corporate,
Other and Eliminations
  Consolidated
Net revenues (excluding intercompany fees and sales)   $ 6,096.7     $ 254.3     $ 640.2     $ 23.3     $ 7,014.5  
Intercompany fees and sales   539.9     191.1         (731.0 )    
Operating costs and expenses:                    
Cost of materials and other   5,679.8     262.7     521.9     (733.2 )   5,731.2  
Operating expenses (excluding depreciation and amortization presented below)   356.7     51.8     71.9     15.5     495.9  
Segment contribution margin   $ 600.1     $ 130.9     $ 46.4     $ 10.0     $ 787.4  
Depreciation and amortization   98.9     19.8     11.5     16.5     146.7  
General and administrative expenses                   197.3  
Other operating income, net                   (0.7 )
Operating income                   $ 444.1  
Capital spending (excluding business combinations)   $ 193.8     $ 6.2     $ 14.3     $ 110.5     $ 324.8  


    Nine Months Ended September 30, 2018
    Refining (1)   Logistics   Retail   Corporate,
Other and Eliminations
  Consolidated (1)
Net revenues (excluding intercompany fees and sales)   $ 6,678.2     $ 319.8     $ 700.8     $ 60.2     $ 7,759.0  
Intercompany fees and sales   640.2     178.5         (818.7 )    
Operating costs and expenses:                    
Cost of materials and other   6,341.9     330.6     578.5     (713.8 )   6,537.2  
Operating expenses (excluding depreciation and amortization presented below)   346.7     42.9     76.5     13.5     479.6  
Segment contribution margin   $ 629.8     $ 124.8     $ 45.8     $ (58.2 )   $ 742.2  
Depreciation and amortization   99.1     19.7     16.8     10.8     146.4  
General and administrative expenses                   176.1  
Other operating income, net                   (9.4 )
Operating Income                   $ 429.1  
Capital spending (excluding business combinations)   $ 136.3     $ 7.4     $ 6.0     $ 61.2     $ 210.9  

(1)  Refining segment and consolidated net revenues and cost of materials and other for the quarter and nine months ended September 30, 2018 reflect a correction of an intercompany elimination which resulted in an increase in those accounts of $273.7 million and $347.1 million, respectively, not previously reflected on the unaudited consolidated financial statements in our September 30, 2018 Quarterly Report on Form 10-Q filed on November 9, 2018. Such amounts are not considered material to the financial statements and had no impact to operating income or segment contribution margin for those periods. See Note 23 to our annual audited consolidated financial statements included in Part II, Item 8 of our 2018 Annual Report on Form 10-K, as amended and filed on June 27, 2019, for further discussion.


         
Refining Segment   Three Months Ended September 30,   Nine Months Ended September 30,
    2019   2018   2019   2018
                 
Tyler, TX Refinery   (Unaudited)   (Unaudited)
Days in period   92     92     273     273  
Total sales volume - refined product (average barrels per day)(1)   80,981     79,691     76,262     78,497  
Products manufactured (average barrels per day):                
Gasoline   41,480     40,663     40,281     41,417  
Diesel/Jet   33,105     31,659     30,685     30,742  
Petrochemicals, LPG, NGLs   3,992     3,199     3,129     2,722  
Other   1,853     1,646     1,560     1,718  
Total production   80,430     77,167     75,655     76,599  
Throughput (average barrels per day):                
Crude oil   75,266     72,845     70,594     71,161  
Other feedstocks   5,565     4,713     5,710     5,867  
Total throughput   80,831     77,558     76,304     77,028  
Per barrel of refined product sales:                
Tyler refining margin   $ 11.96     $ 19.84     $ 15.09     $ 13.47  
Tyler adjusted refining margin   $ 12.35     $ 19.84     $ 13.39     $ 12.71  
Direct operating expenses   $ 3.11     $ 3.57     $ 3.77     $ 3.45  
Crude Slate: (% based on amount received in period)                
WTI crude oil   94.6 %   82.2 %   91.3 %   80.7 %
East Texas crude oil   2.7 %   17.8 %   8.0 %   18.4 %
Other   2.8 %   %   0.7 %   0.9 %
                 
El Dorado, AR Refinery                
Days in period   92     92     273     273  
Total sales volume - refined product (average barrels per day)(1)   71,282     76,196     58,310     74,400  
Products manufactured (average barrels per day):                
Gasoline   30,766     30,522     24,396     33,948  
Diesel   22,348     24,734     18,559     25,423  
Petrochemicals, LPG, NGLs   834     1,012     731     1,236  
Asphalt   5,886     5,313     5,894     5,036  
Other   713     504     678     708  
Total production   60,547     62,085     50,258     66,351  
Throughput (average barrels per day):                
Crude oil   58,362     65,975     49,199     67,688  
Other feedstocks   1,748     (2,197 )   1,431     237  
Total throughput   60,110     63,778     50,630     67,925  
Per barrel of refined product sales:                
El Dorado refining margin   $ 4.25     $ 9.21     $ 8.34     $ 8.89  
El Dorado adjusted refining margin   $ 4.16     9.22     $ 8.52     $ 5.67  
Direct operating expenses   $ 5.27     $ 4.79     $ 5.88     $ 4.92  
Crude Slate: (% based on amount received in period)                
WTI crude oil   72.0 %   68.3 %   53.8 %   66.2 %
Local Arkansas crude oil   20.7 %   20.2 %   25.4 %   20.6 %
Other   7.2 %   11.5 %   20.8 %   13.2 %


...
         
Refining Segment   Three Months Ended September 30,   Nine Months Ended September 30,
    2019   2018   2019   2018
                 
Big Spring, TX Refinery   (Unaudited) (Unaudited)
Days in period - based on date acquired   92     92     273     273  
Total sales volume - refined product (average barrels per day) (1)   72,909     78,062     77,712     72,669  
Products manufactured (average barrels per day):                
Gasoline   33,561     37,587     36,276     34,931  
Diesel/Jet   28,391     29,177     27,796     25,864  
Petrochemicals, LPG, NGLs   3,755     3,889     3,761     3,585  
Asphalt   2,027     1,713     1,815     1,808  
Other   1,423     1,504     1,339     1,366  
Total production   69,157     73,870     70,987     67,554  
Throughput (average barrels per day):                
Crude oil   70,542     72,689     71,939     66,223  
Other feedstocks   (1,282 )   828     (3 )   947  
Total throughput   69,260     73,517     71,936     67,170  
Per barrel of refined product sales:                
Big Spring refining margin   $ 12.21     $ 22.20