Delek US Holdings Announces Preliminary Fourth Quarter 2011 Results

Friday, Jan 27, 2012

Delek US Holdings, Inc. (NYSE: DK) today announced preliminary results for the fourth quarter 2011.

Delek US currently expects to report a net loss from continuing operations in the range of ($0.10) to ($0.20) per basic share for the fourth quarter 2011. The Company’s fourth quarter results were adversely impacted by higher crude oil costs, in addition to a sharp seasonal decline in regional asphalt prices, when compared to the third quarter 2011.

The pricing for a majority of crude oil purchased at the El Dorado refinery - in addition to a nominal portion of the crude purchased at the Tyler refinery - takes into account the differential between the price per barrel of West Texas Intermediate (WTI) and the price per barrel of Louisiana Light Sweet (LLS) crude oil. This differential is established during the month prior to the month in which the crude oil is processed at the Company’s refineries. Consequently, as the WTI-LLS differential narrowed during November and December, the Company purchased higher cost crudes than what the spot WTI-LLS differential would have indicated in those months.

In addition, asphalt prices in the Company’s core regional markets declined markedly between the third and fourth quarters of 2011, further impacting profitability in the period.

Delek US operated both the El Dorado and Tyler refineries at approximately 95 percent of nameplate capacity during the fourth quarter 2011.

Despite the anticipated net loss in the fourth quarter, Delek US expects to report net income from continuing operations in the range of $2.67 to $2.77 per diluted share for the full-year 2011.

The Company intends to release fourth quarter and full-year 2011 results after the market closes on Wednesday, March 7, 2012, followed by a conference call on Thursday, March 8, 2012.

Source: Business Wire

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