Delek US price target raised to $25 from $24 at Citi » 07:0206/0906/09/21
Citi analyst Prashant Rao…
Citi analyst Prashant Rao raised the firm's price target on Delek US to $25 from $24 and keeps a Neutral rating on the shares. The analyst updated estimates and target prices across the North America Refiners and Marketers group.
|Over a week ago|
Delek US upgraded to Buy from Hold at Tudor Pickering » 08:3205/2805/28/21
Tudor Pickering analyst…
Tudor Pickering analyst Matthew Blair upgraded Delek US to Buy from Hold.
Delek US upgraded to Overweight from Neutral at Piper Sandler » 06:0105/2505/25/21
Piper Sandler analyst…
Piper Sandler analyst Ryan Todd upgraded Delek US to Overweight from Neutral with a price target of $30, up from $23. The analyst revised expectations for 2021 refining margins and earnings higher as the U.S. re-opening "continues to gain momentum and mobility roars back to life." The analyst calls Delek US his favorite SMID-cap refining play.
EPA to hold biofuel mandates steady in 2021-22, Reuters reports » 09:0905/2105/21/21
DK, TSO, VLO, PSX, WNR, MPC, HFC
Due to weaker fuel demand…
Due to weaker fuel demand since the onset of the coronavirus pandemic, the Environmental Protection Agency's biofuel blending mandates for this year and next are likely to be in line with those of 2020, which would spare U.S. refiners the added costs associated with the usual annual expansion in renewable volume obligations under the Renewable Fuel Standard, said Reuters' Jarrett Renshaw and Stephanie Kelly, citing three sources familiar with the matter. Publicly traded companies in the space include Delek US (DK), HollyFrontier (HFC), Marathon Petroleum (MPC), Phillips 66 (PSX), Tesoro (TSO), Valero (VLO) and Western Refining (WNR). Renewable Energy (REGI) is a biofuel energy company that may be impacted by the EPA decision. Reference Link
|Over a month ago|
CVR Energy announces renewable fuels focus, $492M special dividend » 16:5805/1105/11/21
CVI, DK, IEP
CVR Energy (CVR)…
CVR Energy (CVR) announced that its board has determined that the company will focus on renewable fuels and is no longer interested in acquiring another crude oil refinery. In connection therewith, the board approved expenditures of up to $10M to progress its renewable diesel initiatives, including: the completion of process design to convert an existing hydrotreater at the Coffeyville refinery to renewable diesel service and the completion of process design and the ordering of certain long-lead equipment for a feed pretreater for the Wynnewood refinery to lower carbon intensity and feed cost. The pretreater design could be expandable to also process feed for the potential Coffeyville refinery renewable diesel conversion. The board has approved a special dividend of $492M, to be payable in a combination of cash and the outstanding stock of Delek US (DK) currently held by the company, pursuant to a provision in the company's Indenture under which the company retained the right to distribute to its stockholders up to $492M on or before July 26. This special dividend will be paid on June 10 to stockholders of record as of the close of market on May 26, subject to customary conditions. The stock distribution portion of this special dividend will occur in the form of a pro rata common stock dividend to each CVR Energy stockholder as of the record date. As of May 10, CVR Energy held 10,539,880 shares of Delek stock. No fractional shares of Delek stock will be distributed. Instead, CVR Energy stockholders will receive cash in lieu of any fractional share of Delek stock they otherwise would have received. Following this distribution, Icahn Enterprises (IEP), which owns approximately 71% of the company's outstanding common stock, would directly hold approximately 10.5% of Delek's outstanding common stock. The cash portion of this special dividend will be determined based on the difference between $492M and the value of the stock distribution portion as of the distribution date, with each CVR Energy stockholder as of the record date receiving a pro rata portion of such difference in cash. CVR Energy intends to announce the number of Delek shares and amount of cash per share of CVR Energy common stock to which each CVR Energy stockholder as of the record date would be entitled at a later date. The New York Stock Exchange has determined that CVR Energy's shares will trade with "due-bills" representing an assignment of the right to receive the special dividend through the ex-dividend date of June 11, the first business day following the distribution date. Stockholders who sell their shares on or before the distribution date will not be entitled to receive the special dividend. Due-bills obligate a seller of shares to deliver the dividend payable on such shares to the buyer. The due-bill obligations are settled customarily between the brokers representing the buyers and sellers of the shares. CVR Energy has no obligation for either the amount of the due-bill or the processing of the due-bill. Buyers and sellers of CVR Energy's shares should consult their broker before trading to be sure they understand the effect of the NYSE's due-bill procedures.
Delek US reports Q1 adjusted EPS ($1.69), consensus ($1.39) » 16:2005/0405/04/21
Reports Q1 revenue…
Reports Q1 revenue $2.39B, consensus $1.52B.
Delek US' director nominees receive recommendation from ISS, Glass Lewis » 07:4004/2604/26/21
Delek US announced in a…
Delek US announced in a letter to shareholders that leading independent proxy advisory firms Institutional Shareholder Services, or ISS, and Glass Lewis, both recommend that Delek shareholders vote "for" all of the company's director nominees on the white proxy card in connection with the company's 2021 Annual Meeting of Stockholders, scheduled to take place on May 6. The company's nominees are: Uzi Yemin, William Finnerty, Richard Marcogliese, Gary Sullivan, Jr., Vicky Sutil, Laurie Tolson, David Wiessman and Shlomo Zohar.
Delek US price target raised to $23 from $20 at Piper Sandler » 06:1504/0104/01/21
Piper Sandler analyst…
Piper Sandler analyst Ryan Todd raised the firm's price target on Delek US to $23 from $20 and keeps a Neutral rating on the shares. The analyst raised his long-term outlook for the independent refines on both crude and refining margins, reflecting a "continued constructive outlook on the sector." He sees "compelling momentum" on shareholder distributions and "significant upside potential should crude markets continue to tighten further."
Delek US issues letter to shareholders recommending vote for board nominees » 09:1603/2503/25/21
Delek US mailed a letter…
Delek US mailed a letter to shareholders recommending they vote "for" all of the company's directors on the white proxy card or voting instruction form at the Annual Meeting. The letter reminded shareholders that their vote at the 2021 Annual Meeting "is extremely important following the nomination by CVR Energy, a majority owned subsidiary of Icahn Enterprises L.P. and competitor of Delek, of three candidates for election to the Delek Board of Directors. Shareholders are urged to discard any "gold" proxy materials sent by CVR and to only vote using the WHITE proxy card".
CVR Energy sends open letter to Delek US chairman over compensation » 08:3403/1903/19/21
CVR Energy (CVI) released…
CVR Energy (CVI) released the following open letter to Uzi Yemen, Chairman of the Board of Delek US Holdings (DK). The letter read in part, " On March 1, 2021, we sent Delek US Holdings a letter asking for information relating to your compensation from Delek and its subsidiary, Delek Logistics Partners. We did so because in our opinion the publicly available information on your compensation is-to put it mildly-both highly unsettling and murky. Delek's public filings indicate that you received total compensation of nearly $54 million from 2013 to 2020. We believe that is an enormous amount of compensation for the Chief Executive of a company that has made as many apparent blunders as Delek has made over those years. But what makes that number even more incredible in our view is that it apparently does not include the approximate $27M you received from the 5% general partnership stake in Logistics that was somehow given to you. Since you were paid extremely well by Delek, it seems impossible to understand why you also received an ultimate 5% general partner interest in Logistics-a subsidiary of Delek. Obviously, you wanted more than you were already being paid by the Company, but since part of your responsibilities to the Company was to manage Logistics as well, why should you have been paid additional sums for that? Moreover, not only did you receive yearly partnership distributions for your 5% stake, but when the Company and Logistics fixed some of the more egregious aspects of their relationship, you apparently ended up pocketing over $21 million for your stake. As we noted in our March 1st and prior letters, while the stockholders of Delek have suffered through a series of poor management decisions, you personally have done extremely well. Particularly troublesome are decisions to drop down assets to Logistics at what seem to us to be very low valuations. Such drop downs are not in the interest of Delek's stockholders. They were, however, in your personal economic interest because they swelled the coffers of Logistics' general partner-of which you held 5%. And it appears that they also served to spike the value of that interest in the months before the Company repurchased it for over $21 million...All we can do is to note that none of the documents we've requested seems particularly confidential or is likely to hurt the Company if the information becomes public. Thus, we have to ask: Why the secrecy? Why all the expensive lawyers? Calouste Gulbenkian, the original Mr. 5%, was able to refuse to answer questions about the sources of his income. If he found questions to be offensive, he could simply board his yacht and steam away to some friendlier jurisdiction. But Delek is a Delaware corporation; its stockholders have rights and even the most imperial chief executives are subject to having their stockholders recall them to their duty. You might believe that legions of lawyers will protect you but you should keep in mind, it's not the lawyers-no matter how overpaid-who vote in corporate elections. It is the stockholders. The immortal Joe Louis famously said about an opponent, "he can run but he can't hide." And Mr. Yemin, you can't hide here. You are going to have to face your stockholders whether you like it or not. In addition, while we have no desire to enrich your Praetorian Guard of white-shoe lawyers, if you continue to refuse to discuss this matter with us reasonably we will have no choice but to pursue it in court. So, we suggest that you pick up the phone, give us a call and rationally discuss our list of requested documents with us. We also continue to be willing to try to resolve the pending proxy contest in a reasonable way that is stockholder friendly if you want to talk about that."