Overview

* Delek US ( DK ) Q3 revenue beats expectations, driven by Small Refinery Exemptions

* Company increases annual cash flow improvement guidance to at least $180 mln

Outlook

* Delek US ( DK ) expects ~$400 mln in proceeds from SRE monetization over next 6-9 months

* Company raises annual cash flow improvement guidance to at least $180 mln

* Delek Logistics raises full-year adjusted EBITDA guidance to $500-$520 mln

Result Drivers

* SRE IMPACT - Co recognized a $280.8 mln benefit from Small Refinery Exemptions granted by the EPA, reducing costs significantly

* LOGISTICS GROWTH - Logistics segment growth driven by W2W dropdown and H2O Midstream and Gravity Acquisitions

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $2.89 $2.76

Revenue bln bln (8

Analysts

)

Q3 $7.13

Adjusted

EPS

Q3 EPS $2.93

Q3 $434.20

Adjusted mln

Net

Income

Q3 Net $178 mln

Income

Q3 $759.60

Adjusted mln

EBITDA

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 9 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the oil & gas refining and marketing peer group is "buy."

* Wall Street's median 12-month price target for Delek US Holdings Inc ( DK ) is $34.00, about 15.3% below its November 6 closing price of $39.21

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)