Delek US Holdings (NYSE:DK) posted a fourth-quarter net profit of $78.3 million on Friday, marking a sharp turnaround as the company’s structural efficiency drive begins to yield substantial financial results.
On a per-share basis, the Brentwood, Tennessee-based refiner earned $1.26, while adjusted net income—which accounts for specific one-time items—reached $143 million, or $2.31 per share.
The quarter’s results were significantly impacted by Small Refinery Exemptions (SREs).
Excluding these regulatory benefits, adjusted earnings were $0.44 per share, with adjusted EBITDA standing at $225.5 million.
When including the SRE impacts, adjusted EBITDA climbed to $374.8 million.
Central to the report was the progress of Delek’s "Enterprise Optimization Plan" (EOP).
The company increased its annual run-rate cash flow improvement target to approximately $200 million, recognizing $50 million in gains during the fourth quarter alone.
Further strengthening its liquidity, Delek announced a restructuring of its Inventory Intermediation Agreement, a move expected to generate at least $40 million in incremental free cash flow.
Delek’s midstream arm, Delek Logistics Partners (DKL), also reported record performance.