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Delek (DK) to Buy Back $64M Worth of Its Shares From Icahn
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Delek US Holdings, Inc. (DK - Free Report) stated that it signed a stock purchase and cooperation agreement with Carl Icahn and the Icahn Group for the buyback of $64 million worth, or approximately 50%, of Delek US’s common stock owned by the Icahn Group for about $18.3 per share. The $18.30 figure is the closing price of DK’s common shares on Mar 4, 2022, the last trading day preceding the agreement’s execution.
Per the terms of the deal, the Icahn Group will pull out its nomination of directors and agree to a standstill restriction through the completion of Delek US’s 2023 annual stockholders meeting and abstain from purchasing additional shares of DK’s common stock.
Delek US mentioned that it will make use of the available cash in hand to fund this share repurchase program. The companies anticipate the share buyback to close ahead of Mar 11, 2022, bound by certain customary closing conditions, after which the Icahn Group is likely to own roughly 3.48 million common shares of Delek US, which represent about 4.93% of the company's outstanding shares.
Uzi Yemin, Chairman, CEO and President of Delek revealed how a combination of healthy cash balances and a strong refining margin environment helped their company execute this deal. Additionally, he emphasized that the share repurchase echoes Delek’s confidence in the underlying business.
Founded in 2001, Brentwood, TN-based Delek US Holdings, Inc. is an independent refiner, transporter and marketer of petroleum products. The company’s operations are organized into three reportable segments: Refining, Logistics and Retail. The refining assets consist of refineries operated in Tyler and Big Spring, TX, El Dorado, AR and Krotz Springs, LA, with a combined nameplate crude throughput capacity of 302,000 barrels per day. The logistics operations consist of Delek Logistics. The convenience store retail business operates approximately 250 convenience stores in central and west Texas and New Mexico.
Marathon Petroleum is valued at around $43 billion. The Zacks Consensus Estimate for Marathon Petroleum’s 2022 earnings is projected at $5.63 per share, up 129.8% from the projected year-ago earnings of $2.45.
MPC beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being around 74.8%.
The Zacks Consensus Estimate for Enerplus’ 2022 earnings has been revised 25.9% upward over the past 60 days.
Enerplus stock has rallied 149.7% in a year. The Zacks Consensus Estimate for ERF’s 2022 earnings is pegged at $2.48 per share, up 155.7% from the projected year-ago earnings of 97 cents.
The Zacks Consensus Estimate for Valero’s 2022 earnings is projected at $7.11 per share, up about 153% from the projected year-ago earnings of $2.81.
Valero beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being around 75.7%. VLO is valued at around $37 billion.
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Delek (DK) to Buy Back $64M Worth of Its Shares From Icahn
Delek US Holdings, Inc. (DK - Free Report) stated that it signed a stock purchase and cooperation agreement with Carl Icahn and the Icahn Group for the buyback of $64 million worth, or approximately 50%, of Delek US’s common stock owned by the Icahn Group for about $18.3 per share. The $18.30 figure is the closing price of DK’s common shares on Mar 4, 2022, the last trading day preceding the agreement’s execution.
Per the terms of the deal, the Icahn Group will pull out its nomination of directors and agree to a standstill restriction through the completion of Delek US’s 2023 annual stockholders meeting and abstain from purchasing additional shares of DK’s common stock.
Delek US mentioned that it will make use of the available cash in hand to fund this share repurchase program. The companies anticipate the share buyback to close ahead of Mar 11, 2022, bound by certain customary closing conditions, after which the Icahn Group is likely to own roughly 3.48 million common shares of Delek US, which represent about 4.93% of the company's outstanding shares.
Uzi Yemin, Chairman, CEO and President of Delek revealed how a combination of healthy cash balances and a strong refining margin environment helped their company execute this deal. Additionally, he emphasized that the share repurchase echoes Delek’s confidence in the underlying business.
Founded in 2001, Brentwood, TN-based Delek US Holdings, Inc. is an independent refiner, transporter and marketer of petroleum products. The company’s operations are organized into three reportable segments: Refining, Logistics and Retail. The refining assets consist of refineries operated in Tyler and Big Spring, TX, El Dorado, AR and Krotz Springs, LA, with a combined nameplate crude throughput capacity of 302,000 barrels per day. The logistics operations consist of Delek Logistics. The convenience store retail business operates approximately 250 convenience stores in central and west Texas and New Mexico.
Delek US currently has a Zacks Rank #3 (Hold). Some better-ranked stocks from the energy space that warrant a look include Marathon Petroleum (MPC - Free Report) , Enerplus Corporation (ERF - Free Report) and Valero Energy (VLO - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Marathon Petroleum is valued at around $43 billion. The Zacks Consensus Estimate for Marathon Petroleum’s 2022 earnings is projected at $5.63 per share, up 129.8% from the projected year-ago earnings of $2.45.
MPC beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being around 74.8%.
The Zacks Consensus Estimate for Enerplus’ 2022 earnings has been revised 25.9% upward over the past 60 days.
Enerplus stock has rallied 149.7% in a year. The Zacks Consensus Estimate for ERF’s 2022 earnings is pegged at $2.48 per share, up 155.7% from the projected year-ago earnings of 97 cents.
The Zacks Consensus Estimate for Valero’s 2022 earnings is projected at $7.11 per share, up about 153%
from the projected year-ago earnings of $2.81.
Valero beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being around 75.7%. VLO is valued at around $37 billion.