As of June 30, 2012, Delek US had a record cash balance of $321.1 million and total debt of $422.8 million. During the second quarter the Company was able to reduce its net debt to $101.7 million as of June 30, 2012 compared to $310.9 million as of June 30, 2011.
Yemin concluded, “Several recent positive developments demonstrate the strength of our businesses and the execution of our strategic initiatives. First, we announced our third special dividend during the last 14 months. Second, we filed a registration statement for the initial public offering of our logistics assets. Finally, we completed both of our previously announced 'quick hit' projects on time and under budget. Both the LSR project at El Dorado and the VTB project at our Tyler refinery were completed in July and should deliver incremental cash flows in the future. With improved crude and feedstock flexibility in our refining system, support of rail supplied crude and continued increase in demand for our products, our outlook remains positive and we are excited about our opportunities to deliver additional value to our shareholders in the near and mid-term future.”
Refining segment contribution margin increased to $133.2 million in the second quarter 2012, versus $122.3 million in second quarter 2011. During the second quarter 2012, the Tyler refinery generated $76.4 million in contribution margin, while the El Dorado refinery reported $56.8 million in contribution margin.The year-over-year improvement in segment contribution margin was attributable to the inclusion of a full quarter of El Dorado results in the Company's consolidated statement of operations, improved Gulf Coast refined product margins, and an increase in asphalt pricing. In addition, we benefited from our access to cost-advantaged domestic crude sources, such as Midland sweet crude, which traded on average $4.86 per barrel below the WTI Cushing benchmark during the second quarter of 2012.