Delek US Holdings Reports Record Net Income For Fourth Quarter And Full-Year 2012
Delek US Holdings, Inc. (NYSE: DK) (“Delek US”) a diversified energy
company with assets in the petroleum refining, logistics and retail
industries, today announced financial results for the fourth quarter and
Delek US Holdings, Inc. (NYSE: DK) (“Delek US”) a diversified energy company with assets in the petroleum refining, logistics and retail industries, today announced financial results for the fourth quarter and full-year 2012. For the three months ended December 31, 2012, Delek US reported record fourth quarter net income of $64.3 million, or $1.06 per diluted share, versus a net loss of $(6.0) million, or $(0.10) per basic share, in the fourth quarter 2011. Fourth quarter 2012 results were reduced by approximately $2.1 million after tax, or $0.03 per share through the combination of costs related to the initial public offering of Delek Logistics Partners, LP (NYSE: DKL) (“Delek Logistics”) and an increase in our effective tax rate. Delek US announced today that its Board of Directors declared a special cash dividend of $0.10 per share. Shareholders of record on March 26, 2013 will receive this cash dividend payable on April 16, 2013. For the fourth quarter 2012, this increase in earnings compared to the prior year period was primarily attributed to improved margins in the refining segment due to more stability in crude oil price differentials and a more diverse crude slate that included West Texas Intermediate ("WTI") Midland sourced supply. In contrast, fourth quarter 2011 presented a challenging environment as a narrowing in crude oil price differentials and a decline in regional asphalt prices adversely affected refining margins. For the full year 2012, Delek US reported record net income of $272.8 million, or $4.57 per diluted share, versus net income of $158.3 million, or $2.78 per diluted share in 2011. This represents a 64 percent increase in earnings per share from 2011. As of December 31, 2012, Delek US had a cash balance of $601.7 million and total debt of $362.2 million, resulting in net cash of $239.5 million. This was a $446.2 million improvement from a $206.7 million net debt position at December 31, 2011. Strong cash flow from refining operations and proceeds of $175.5 million received in connection with the completion of Delek Logistics' initial public offering on November 7, 2012, were the primary factors accounting for this improvement. At December 31, 2012, Delek Logistics had a cash balance of approximately $23.5 million and approximately $90.0 million of debt, which is included in the consolidated amounts on Delek US' balance sheet.