We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Delek US Q1 Earnings & Revenues Beat Estimates, Adjusted EBITDA Up Y/Y
Read MoreHide Full Article
Key Takeaways
DK reported Q1 adjusted EPS of 8 cents, beating the loss estimate and improving from the prior-year loss.
DK saw EBITDA jump 530% to $211.7M, driven by stronger crack spreads and SRE benefits.
DK refining profit surged on higher margins, while logistics EBITDA rose on improved wholesale margins.
Delek US Holdings, Inc. (DK - Free Report) reported first-quarter 2026 adjusted earnings of 8 cents per share, in contrast to the Zacks Consensus Estimate of a loss of $1.56. The bottom line also improved 103.4% from the year-ago adjusted loss of $2.32, supported by stronger year-over-year performance across both segments.
Net revenues increased 0.4% year over year to $2.7 billion. The top line also beat the Zacks Consensus Estimate by 27.5%. This was due to better-than-expected performance from the refining segment, which exceeded our consensus mark by $93 million.
Delek US Holdings, Inc. Price, Consensus and EPS Surprise
The integrated downstream energy company reported adjusted EBITDA of $211.7 million, up 530.1% from $33.6 million a year earlier, aided by stronger crack spreads and the quarter’s impact from small refinery exemptions (“SRE”).
On April 20, 2026, DK’s board of directors approved the regular quarterly dividend of 25.5 cents per share. The dividend will be paid on May 8, 2026, to its shareholders of record as of May 1.
DK’s Segmental Performances
Refining: The refining segment reported an adjusted EBITDA profit of $155.3 million, a notable increase from the adjusted EBITDA loss of $27 million recorded in the prior-year quarter. However, the reported figure missed our estimate of $185.5 million.
The strong year-over-year profit growth was mainly fueled by higher refining margins, supported by an expansion in crack spreads. Delek US’ benchmark crack spreads rose an average of 63.8% year over year during the first quarter of 2026.
Logistics: This unit represents Delek US’ majority interest in Delek Logistics Partners (DKL - Free Report) , a publicly traded master limited partnership that owns, operates, develops and acquires pipelines and other midstream assets.
In the first quarter, the segment registered an adjusted EBITDA of $132.4 million compared with $123.2 million in the year-ago quarter. The year-over-year growth was driven by improved margins in the wholesale segment, along with higher interest income from sales-type leases. However, the figure missed our estimate of $141.2 million.
DK’s Financials
Total operating costs and expenses increased 2.3% year over year to $2.8 billion. Moreover, the figure was higher than our estimate of $2 billion. Operating expenses (excluding depreciation and amortization) were $219.9 million compared with $211.1 million a year ago, while general and administrative expenses declined to $44 million from $61.5 million. Delek US spent $209 million on capital programs in the same time frame.
As of March 31, 2026, the company had cash and cash equivalents worth $624.1 million and long-term debt of $3.2 billion, with a debt-to-total capital of about 91.3%.
Cash provided by operating activities was $461.1 million in the quarter, versus cash used in operating activities of $62.4 million a year ago. The company reported $600.9 million of favorable working-capital changes within operating cash flow for the period.
DK’s Q2 and 2026 Guidance
For the second quarter of 2026, DK expects throughput of 72,000-77,000 bpd at Tyler, 78,000-83,000 bpd at El Dorado, 65,000-70,000 bpd at Big Spring and 78,000-83,000 bpd at Krotz Springs. The company’s implied system throughput target is 293,000-313,000 bpd and the Crude throughput target is 283,000-303,000 bpd.
On the cost side, DK expects operating expenses of $215-$225 million, general and administrative expenses of $47-$52 million, depreciation and amortization of $105-$115 million and net interest expense of $80-$90 million for the second quarter.
For 2026, management continues to emphasize free cash flow improvement initiatives and midstream strength. The company raised its Enterprise Optimization Plan target for a sixth consecutive time to at least $220 million on an annual run-rate basis, with most of the improvement expected to come from margin enhancement across refining, logistics and wholesale operations. DK currently sports a Zacks Rank #1 (Strong Buy), while DKL has a Zacks Rank #5 (Strong Sell).
While we have discussed DK’s first-quarter results in detail, let us take a look at three other key reports in this space.
Halliburton Company (HAL - Free Report) , a Houston, TX-based oil and gas equipment and services provider, posted first-quarter 2026 adjusted net income per share of 55 cents, beating the Zacks Consensus Estimate of 49 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line fell from the year-ago adjusted profit of 60 cents.
Halliburton reported first-quarter capital expenditure of $192 million. As of March 31, 2026, this Houston, TX-based oil and gas equipment and services company had approximately $2 billion in cash/cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization ratio of 39.6.
Kinder Morgan Inc. (KMI - Free Report) , a Houston, TX-based oil and gas storage and transportation company,posted first-quarter 2026 adjusted earnings per share of 48 cents, which beat the Zacks Consensus Estimate of 38 cents. The bottom line increased year over year from 34 cents. The strong quarterly results can be primarily attributed to contributions from the Natural Gas Pipelines business segment.
As of March 31, 2026, KMI reported $72 million in cash and cash equivalents. At the quarter's end, its long-term debt amounted to $29.72 billion. KMI’s project backlog was reported at $10.1 billion by the end of the first quarter. The midstream energy major added that natural gas projects comprise approximately 92% of its project backlog, with nearly 60% dedicated to supporting local distribution companies and power generation.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Delek US Q1 Earnings & Revenues Beat Estimates, Adjusted EBITDA Up Y/Y
Key Takeaways
Delek US Holdings, Inc. (DK - Free Report) reported first-quarter 2026 adjusted earnings of 8 cents per share, in contrast to the Zacks Consensus Estimate of a loss of $1.56. The bottom line also improved 103.4% from the year-ago adjusted loss of $2.32, supported by stronger year-over-year performance across both segments.
Net revenues increased 0.4% year over year to $2.7 billion. The top line also beat the Zacks Consensus Estimate by 27.5%. This was due to better-than-expected performance from the refining segment, which exceeded our consensus mark by $93 million.
Delek US Holdings, Inc. Price, Consensus and EPS Surprise
Delek US Holdings, Inc. price-consensus-eps-surprise-chart | Delek US Holdings, Inc. Quote
The integrated downstream energy company reported adjusted EBITDA of $211.7 million, up 530.1% from $33.6 million a year earlier, aided by stronger crack spreads and the quarter’s impact from small refinery exemptions (“SRE”).
On April 20, 2026, DK’s board of directors approved the regular quarterly dividend of 25.5 cents per share. The dividend will be paid on May 8, 2026, to its shareholders of record as of May 1.
DK’s Segmental Performances
Refining: The refining segment reported an adjusted EBITDA profit of $155.3 million, a notable increase from the adjusted EBITDA loss of $27 million recorded in the prior-year quarter. However, the reported figure missed our estimate of $185.5 million.
The strong year-over-year profit growth was mainly fueled by higher refining margins, supported by an expansion in crack spreads. Delek US’ benchmark crack spreads rose an average of 63.8% year over year during the first quarter of 2026.
Logistics: This unit represents Delek US’ majority interest in Delek Logistics Partners (DKL - Free Report) , a publicly traded master limited partnership that owns, operates, develops and acquires pipelines and other midstream assets.
In the first quarter, the segment registered an adjusted EBITDA of $132.4 million compared with $123.2 million in the year-ago quarter. The year-over-year growth was driven by improved margins in the wholesale segment, along with higher interest income from sales-type leases. However, the figure missed our estimate of $141.2 million.
DK’s Financials
Total operating costs and expenses increased 2.3% year over year to $2.8 billion. Moreover, the figure was higher than our estimate of $2 billion. Operating expenses (excluding depreciation and amortization) were $219.9 million compared with $211.1 million a year ago, while general and administrative expenses declined to $44 million from $61.5 million. Delek US spent $209 million on capital programs in the same time frame.
As of March 31, 2026, the company had cash and cash equivalents worth $624.1 million and long-term debt of $3.2 billion, with a debt-to-total capital of about 91.3%.
Cash provided by operating activities was $461.1 million in the quarter, versus cash used in operating activities of $62.4 million a year ago. The company reported $600.9 million of favorable working-capital changes within operating cash flow for the period.
DK’s Q2 and 2026 Guidance
For the second quarter of 2026, DK expects throughput of 72,000-77,000 bpd at Tyler, 78,000-83,000 bpd at El Dorado, 65,000-70,000 bpd at Big Spring and 78,000-83,000 bpd at Krotz Springs. The company’s implied system throughput target is 293,000-313,000 bpd and the Crude throughput target is 283,000-303,000 bpd.
On the cost side, DK expects operating expenses of $215-$225 million, general and administrative expenses of $47-$52 million, depreciation and amortization of $105-$115 million and net interest expense of $80-$90 million for the second quarter.
For 2026, management continues to emphasize free cash flow improvement initiatives and midstream strength. The company raised its Enterprise Optimization Plan target for a sixth consecutive time to at least $220 million on an annual run-rate basis, with most of the improvement expected to come from margin enhancement across refining, logistics and wholesale operations. DK currently sports a Zacks Rank #1 (Strong Buy), while DKL has a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Important Earnings at a Glance
While we have discussed DK’s first-quarter results in detail, let us take a look at three other key reports in this space.
Halliburton Company (HAL - Free Report) , a Houston, TX-based oil and gas equipment and services provider, posted first-quarter 2026 adjusted net income per share of 55 cents, beating the Zacks Consensus Estimate of 49 cents. The outperformance primarily reflects successful cost reduction initiatives. However, the bottom line fell from the year-ago adjusted profit of 60 cents.
Halliburton reported first-quarter capital expenditure of $192 million. As of March 31, 2026, this Houston, TX-based oil and gas equipment and services company had approximately $2 billion in cash/cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization ratio of 39.6.
Kinder Morgan Inc. (KMI - Free Report) , a Houston, TX-based oil and gas storage and transportation company,posted first-quarter 2026 adjusted earnings per share of 48 cents, which beat the Zacks Consensus Estimate of 38 cents. The bottom line increased year over year from 34 cents. The strong quarterly results can be primarily attributed to contributions from the Natural Gas Pipelines business segment.
As of March 31, 2026, KMI reported $72 million in cash and cash equivalents. At the quarter's end, its long-term debt amounted to $29.72 billion. KMI’s project backlog was reported at $10.1 billion by the end of the first quarter. The midstream energy major added that natural gas projects comprise approximately 92% of its project backlog, with nearly 60% dedicated to supporting local distribution companies and power generation.