Delek US Holdings, Inc. Q4 FY2025 earnings call

• 2025 was transformational: improved free cash flow profile, increased economic separation between DK and DKL, strong Q4 results. • Enterprise optimization plan (EOP) drove substantial value, with target raised to at least $200 million annual run rate; $50 million contribution in Q4 P&L. • DKL had record adjusted EBITDA in 2025, 2026 EBITDA guidance provided, close to finishing industry-leading comprehensive sour gas solution. • Safe and reliable operations: Big Spring refinery 2026 planned turnaround progressing well, focus on reliability and operational flexibility. • Monetized large portion of 2023 and 2024 REINS, used proceeds to reduce inventory intermediation agreement, improving free cash flow by at least $40 million annually. • Shareholder-friendly: paid ~$15 million dividend and bought back ~$20 million shares in Q4.

In Q4 2025, excluding SRE, DELEC reported adjusted EPS of $0.44 and adjusted EBITDA of approximately $226 million. Excluding SREs, adjusted EBITDA for full year 2025 was approximately $763 million. Refining segment: adjusted EBITDA declined by $91 million in Q4 2025 excluding SREs due to seasonality. Supply and marketing: excluding SREs, contributed approximately $23 million in Q4, with ~$35 million from wholesale marketing, asphalt contributed a loss of $4.2 million. Logistics segment: delivered approximately $142 million in adjusted EBITDA in Q4. DKL had adjusted EBITDA of approximately $536 million in 2025 and 2026 EBITDA guidance in the range of $520 to $560 million, with third-party EBITDA expected to exceed 80% in 2026 on a performer basis.

• DKL 2026 EBITDA guidance in range of $520 to $560 million. • First quarter 2026 throughput guidance: Tyler 70 - 74,000 bbl/day, El Dorado 66 - 71,000 bbl/day, Big Spring 22 - 28,000 bbl/day, Crot Springs 82 - 86,000 bbl/day, implied system throughput 240 - 259,000 bbl/day. • Operating expenses for first quarter expected between $210 - $220 million, DNA between 47 - $52 million, interest expense between 75 - $85 million. • EOP target raised to at least $200 million annual run rate.

• Risks and uncertainties that may cause actual results to differ from forward-looking statements, including factors in SEC filings. • Uncertainty regarding the full value realization of pre-2023 SREs and legislative changes impacting SRE value, such as risks from legislative changes affecting 2025 RINs.

Q: Doug Liggett asks about cash inflow and remaining recognition for SREs, path for pre-2023 SREs, and go-forward SRE value including risks from legislative changes.

A: Abigail, Mark, and others discuss monetization of 2023 and 2024 REINS, reduction in interest expense from inventory intermediation agreement restructuring, and mention ongoing work for pre-2023 SREs and uncertainty around legislative changes.

Q: Paul Cheng asks about DKL consolidation timeline and ownership, and initiatives beyond normal turnaround at Big Spring refinery.

A: Abigail discusses multiple paths for DKL consolidation, including selling assets, monetizing, M&A, and reducing ownership; talks about Big Spring refinery focus on improving reliability, crude and product slate optimization post-turnaround.

Q: Alexa Petrick asks about drivers of raised cash flow guidance and capital allocation priorities.

A: Abigail talks about EOP being key to cash flow, capital allocation strategy remaining consistent with maintaining dividend, balanced approach between balance sheet and buyback.

Q: Jason Gableman asks about strength in supply line in 4Q, EOP vs one-time benefits.

A: Mohit discusses progress in supply and marketing, phases of improving wholesale business.

Q: Ryan Todd asks about margin capture, what has gone well and sustainability.

A: Abigail and Mohit discuss strategy components including safe operation, strong commercial activity, EOP contributing to margin capture improvement