Q4 2025 Delek US Holdings Inc Earnings Call

February 27, 2026

All lines have been placed on you to prevent any background noise.

After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number 1 on your telephone keypad. If you would like to withdraw your question, simply press star 1 again,

Oh now let's turn the conference over to Robert Wright EVP, delek. You may begin.

Operator: Thank you for standing by. My name is Jael, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Delek US Q4 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you'd like to ask a question during this time, simply press star followed by the 1 on your telephone keypad. If you would like to withdraw your question, simply press star 1 again. I would now like to turn the conference over to Robert Wright, EVP, Delek. You may begin.

Good morning and welcome to the delicious fourth quarter earnings conference call participants joining me on today at call will include Abigail soric president and CEO our calls EVP 2 Financial Officer, as well as other members of our management team.

Today's presentation material can be found on the investor relations section of the delek, Us website.

Slide 2 contains our Safe Harbor statement regarding forward-looking information.

Robert Wright: Good morning, welcome to the Delek US Q4 Earnings Conference Call. Participants joining me on today's call will include Avigal Soreq, President and CEO, Mark Hobbs, EVP, Chief Financial Officer, as well as other members of our management team. Today's presentation material can be found on the investor relations section of the Delek US website. Slide 2 contains our safe harbor statement regarding forward-looking information. As a reminder, this conference call will contain forward-looking information as defined under the Federal Securities laws, including statements regarding guidance and future business outlook. Any forward-looking statements made during today's call will involve risks and uncertainties that may cause actual results to differ materially from today's comments. Factors that could cause actual results to differ are included in our SEC filings. The company assumes no obligation to update any forward-looking statements.

as a reminder this conference call will contain forward-looking information as defined under the federal Securities laws including statements regarding

Guidance and future business Outlook. Any forward-looking statements made during today's call will involve risks and uncertainties that may cause actual results to differ materially from today's comments.

Factors that could cause actual results to differ are included in our SEC filings.

The company assumes. No obligation to update any forward-looking statements.

Robert Wright: As a reminder, this conference call will contain forward-looking information as defined under the Federal Securities laws, including statements regarding guidance and future business outlook. Any forward-looking statements made during today's call will involve risks and uncertainties that may cause actual results to differ materially from today's comments. Factors that could cause actual results to differ are included in our SEC filings. The company assumes no obligation to update any forward-looking statements. I will now turn the call over to Avigal for opening remarks. Avigal?

I will now turn the call over to Abigail for opening remarks. Have a go.

Thank you all. Those good morning and thank you for joining us today.

2025 was transformational year for dele

we have made progress on all fronts, including improving the free cash flow profile of the company and increasing the economic separation between Decay and decay.

Robert Wright: I will now turn the call over to Avigal for opening remarks. Avigal?

They also conclude with a strong fourth quarter results in Q4 2025, excluding s.

Avigal Soreq: Thank you, Robert. Good morning, and thank you for joining us today. 2025 was a transformational year for Delek. We have made progress on all fronts, including improving the free cash flow profile of the company and increasing the economic separation between DK and DKL. The year also conclude with a strong Q4 results. In Q4 2025, excluding SRE, Delek reported an adjusted EPS of $0.44 and adjusted EBITDA of approximately $226 million. This results highlight the accelerating momentum at Delek and the stability of our strategy. Now, I will cover some of the achievements in 2025 in detail. Starting with EOP, I'm proud of how we have created a culture of continuous improvement through our Enterprise Optimization Plan. EOP drove substantial value throughout the year with a strong execution and measurable progress across all business units.

Delek, reported and adjusted DPS of 44 cents and adjusted DBA of approximately 200 and 226 million.

This results highlight the accelerating momentum at deck and the stability of our strategy.

Now, I will cover some of the achievement in 2025 in detail.

Starting with the op. I'm proud of how we have created a culture of continuous Improvement. Through our Enterprise optimization plan.

Avigal Soreq: This results highlight the accelerating momentum at Delek and the stability of our strategy. Now, I will cover some of the achievements in 2025 in detail. Starting with EOP, I'm proud of how we have created a culture of continuous improvement through our Enterprise Optimization Plan. EOP drove substantial value throughout the year with a strong execution and measurable progress across all business units.

EOP, drove substantial value throughout the year with a strong execution, and measurable progress across all business units.

As a result of continued success. We are once again, raising our Enterprise optimization plan Target to, at least 200 million dollars on an annual run rate basis.

Our sum of the parts initiative, continue to advance.

2026 is expected to have highest economic separation between DK and DK.

Avigal Soreq: As a result of continued success, we are once again raising our Enterprise Optimization Plan target to at least $200 million on an annual run rate basis. Our sum of the parts initiative continue to advance. 2026 is expected to have highest economic separation between DK and DKL. 2025 was a record year for DKL, with approximately $536 million in adjusted EBITDA. DKL continues to build on its premier position in the Permian Basin to its full suite of service and a strong organic growth. Continuing the momentum, DKL today announced its 2026 EBITDA guidance to be in the range of $520 to $560 million.

EOP, drove substantial value throughout the year with a strong execution, and measurable progress across all business units.

2025 was the record year for decal with a proximately 50036 million in adjusted ebida.

Our Enterprise optimization plan. Target to, at least 200 million dollars on an annual run rate basis.

Our sum-of-the-parts initiative continues to advance.

Decal continued to build on its Premiere position in the permanent Basin to its full Suite of service and a strong organic growth. Continuing the momentum dkl today announced its 2026 ibida guidance to be in the range of 520 to 560 million dollars.

2026 is expected to have the highest economic separation between Decay and decal.

2025 was the record here for decal with approximately 536 million in adjusted ibida.

Dkl is a close to the Finish Line. On its industry-leading comprehensive, sour gas solution, including Gathering treatment processing and active gas injection, providing Market access for residue gas and NGL.

These capabilities will provide dkl, the ability to fully capitalize on its goals opportunity in the dallow Basin and maintain its best-in-class ibida growth and yield.

Avigal Soreq: DKL is close to the finish line on its industry-leading comprehensive sour gas solution, including gathering, treatment, processing, and acid gas injection, providing market access for residue gas and NGLs. These capabilities will provide DKL the ability to fully capitalize on its growth opportunity in the Delaware Basin and maintain its best-in-class EBITDA growth and yield. In 2026, on a pro forma basis, with continued growth in third-party cash flow, we expected DKL third-party EBITDA to exceed 80%. Achieving this level of economic separation has been cornerstone of our sum-of-the-parts strategy. We are taking additional action to ensure the strength of DKL third-party midstream service are fully reflected in the share price and unit price. As I always do, I will now give an update on our key long-term priorities. First, safe and reliable operations.

Continued to build on its premier position in the Permian Basin to its full suite of services and strong organic growth. Continuing the momentum, DKL today announced its 2026 EBITDA guidance to be in the range of $520 to $560 million.

In 2026 for the performer basis, with continued goals in third-party cash flow. We expected decal third, party, ibida to exceed 80%.

DK is a close to the Finish Line. On its industry-leading comprehensive, sour gas solution, including Gathering treatment processing and acid gas injections providing Market access for residue gas and NGL.

Achieving this level of economic separation has been Cornerstone of our sum of the part strategy.

These capabilities will provide Delek the ability to fully capitalize on its goals and opportunities in the Delaware Basin and maintain its best-in-class EBITDA growth and yield.

We are taking additional action to ensure the strength of decal. Telepathy means stream service are fully reflected in the share price and unit price.

As I always do, I will now give an update on our key, long-term priorities, first safe, and reliable operations.

Avigal Soreq: Achieving this level of economic separation has been cornerstone of our sum-of-the-parts strategy. We are taking additional action to ensure the strength of DKL third-party midstream service are fully reflected in the share price and unit price. As I always do, I will now give an update on our key long-term priorities. First, safe and reliable operations.

In 2026 for the performer basis, with continued goals in third-party cash flow. We expected decal, third party, eida to exceed 80%.

we had a strong operational quarter in our refining system with solid performance from our for refineries

Achieving this level of economic separation has been the cornerstone of our sum-of-the-parts strategy.

At Big Spring. Our first quarter 2026 planned. Turn around is progressing. Well, and remains on track.

We are taking additional action to ensure the strength of Delek. Third party, midstream services are fully reflected in the share price and unit price.

Avigal Soreq: We had a strong operational quarter in our refining system, with solid performance from our four refineries. At Big Spring, our Q1 2026 planned turnaround is progressing well and remains on track. The focus of this turnaround is to further enhance reliability and operational flexibility, positioning the refinery for improved cost structure and margin capture. We expect this enhancement to drive meaningful performance improvement once the refinery returns to full operation. This is our only planned turnaround in 2026, which sets our refining system up well for the remainder of the year. Second, I would like to add a little more context on our own Enterprise Optimization Plan. As a reminder, we started EOP with an aim to improve DKL cash flow by $80 to $120 million on a run-rate basis, starting in the second half of 2025.

As I always do, I will now give an update on our key long-term priorities. First, safe and reliable operations.

We expect this enhancement to drive meaningful performance Improvement once the refinery returns to full operation.

We had a strong operational quarter in our refining system, with solid performance from our four refineries.

This is our only plan turn around in 2026, which sets our refining system up. Well, for the remainder of the year.

At Big Spring. Our first quarter 2026 planned. Turn around is progressing. Well, and remains on track.

Second, I would like to add a little more context on our Enterprise optimization plan.

Avigal Soreq: We expect this enhancement to drive meaningful performance improvement once the refinery returns to full operation. This is our only planned turnaround in 2026, which sets our refining system up well for the remainder of the year. Second, I would like to add a little more context on our own Enterprise Optimization Plan. As a reminder, we started EOP with an aim to improve DKL cash flow by $80 to $120 million on a run-rate basis, starting in the second half of 2025.

The focus of this turnaround is to further enhance reliability and operational and flexibility positioning the refinery for improved cost, structure and margin capture.

As a reminder, we started EOP with an aim to improve DK Cash Flow by 80 to 120 million on a run rate basis.

Starting in second half of 2025.

We expect this enhancement to drive meaningful performance Improvement once the refinery returns to full operations.

As a result of the strong buying from the organization, we have been able to continue to increase our EOP range.

This is our only plan turn around in 2026, which sets our refining system up. Well, for the remainder of the year.

Where again, increasing our expectation for EOP related, cash, flow Improvement to at least, 200 million dollars, annually.

Second, I would like to add a little more context on our Enterprise optimization plan.

As a reminder, we started the op with an aim to improve DK Cash Flow by 80 to 120 million dollars on a run rate basis.

Avigal Soreq: As a result of the strong buy-in from the organization, we have been able to continue to increase our EOP range. We are again increasing our expectation for EOP-related cash flow improvement to at least $200 million annually. During Q4 2025, we estimate approximately $50 million of EOP contribution in our P&L. The success of EOP is clearly visible in the performance of El Dorado Refinery, supply and marketing results, and G&A. These improvements are here to stay and have set us up for long-term success. I'm confident that EOP will remain a core strength well into the future. As mentioned last quarter, we pursued a proactive strategy to monetize the 2023 and 2024 RINs, granted after the EPA cleared the backlog of pending 2019 to 2024 SRE petitions.

Starting in second half of 2025.

And so results of the storm buying from the organization. We have been able to continue to increase our EOP range.

During the fourth quarter of 2025, we estimate approximately 50 million dollar of of EOP contribution in our pnl. The success of EOP is clearly visible in the performance of eloro, Refinery Supply, and marketing results and GNA. This Improvement are here to stay and have set us up for long-term success.

I'm confident that GOP will remain a cost strength well into the future.

We are again, increasing our expectation for EOP related, cash, flow Improvement to at least 200 million dollar annually.

Avigal Soreq: These improvements are here to stay and have set us up for long-term success. I'm confident that EOP will remain a core strength well into the future. As mentioned last quarter, we pursued a proactive strategy to monetize the 2023 and 2024 RINs, granted after the EPA cleared the backlog of pending 2019 to 2024 SRE petitions.

As mentioned last quarter, we pursued a proactive strategy to monetize the 2023 and 2024 RS. Granted after the EPA, cleared the backlog of pending 2019 to 2024 s petitions.

During the fourth quarter of 2025, we estimate approximately $50 million of EOP contribution in our P&L. The success of EOP is clearly visible in the performance of Eloro, Refinery Supply, and marketing results and G&A. These improvements are here to stay and have set us up for long-term success.

I'm confident that GOP will remain a core strength, well, into the future.

I'm pleased to announce that we were able to monetize a large portion of our 23 and 24 RS faster versus original plan and have been able to use the process to reduce our inventory. Intermediation agreement.

The risk functioning of the IIA will improve our free cash flow generation on the top of EOP by at least 40 million dollars on a yearly basis.

Avigal Soreq: I'm pleased to announce that we were able to monetize a large portion of our 2023 and 2024 RINs faster versus our original plan and have been able to use the proceeds to reduce our inventory intermediation agreement. The restructuring of the IAA will improve our free cash flow generation on the top of EOP by at least $40 million on a yearly basis. We remain actively involved in our effort to get full value for the 2019 to 2022 RINs, for which we were provided invalid relief. Finally, we believe that the current administration, Senate, Congress, and EPA realize the importance of SREs, not only for the refineries which qualify under the program, but also to the local communities they serve. We believe SREs will remain a core part of the current administration's energy policy as it advances its energy dominance agenda.

Suspension last quarter, we pursued a proactive strategy to monetize the 2023 and 2024 RS. Granted after the EPA, cleared, the backlog of pending 2019 to 2024 Sr petitions.

Will you been actively involved in our effort to get full value for the 2019 to 2022 RS for which we were provided invalid relief?

I'm pleased to announce that we were able to monetize a large portion of our '23 and '24 rings faster versus original plan and have been able to use the process to reduce our inventory. Intermediation agreement.

finally we believe that the current Administration Senate Congress and EPA realized the important of SRS not only for the refineries which qualify under the program but also to the local communities they serve

Avigal Soreq: We remain actively involved in our effort to get full value for the 2019 to 2022 RINs, for which we were provided invalid relief. Finally, we believe that the current administration, Senate, Congress, and EPA realize the importance of SREs, not only for the refineries which qualify under the program, but also to the local communities they serve. We believe SREs will remain a core part of the current administration's energy policy as it advances its energy dominance agenda.

The restructuring of the IIA will improve our free cash flow generation on the top of Europe by at least 40 million dollar on a yearly basis.

We Believe Sr is will remain a core part of the current Administration energy policy as it Advanced its energy dominance agenda.

We will remain actively involved in our effort to get full value for the 2019 to 2022 RS, for which we were provided invalid relief.

The final piece of our strategy is being showed a friendly and having a strong balance sheet.

During the quarter, we paid approximately 15 million in dividend and bought back approximately, 20 million of our shares.

says, which qualify under the program, but also to the local communities they serve.

Our strong balance sheet, improve reliability and confident. In EOP in enable us to do counter signal by back in 2025.

I'm proud to continue our strong shareholder, return dividend and buy back through the cycle.

We Believe SRS will remain a core part of the current Administration energy policy as it Advanced. Its energy dominance agenda.

Avigal Soreq: The final piece of our strategy is being shareholder-friendly and having a strong balance sheet. During the quarter, we paid approximately $15 million in dividends and bought back approximately $20 million of our shares. Our strong balance sheet, improved reliability, and confidence in EOP enable us to do countercyclical buyback in 2025. I'm proud to continue our strong shareholder return, dividend, and buyback through this cycle. We remain committed to a disciplined and balanced approach to capital allocation and look forward to continue rewarding our shareholders. In closing, thank you for our team for the hard work and dedication to 2025. I'm proud of the progress in Delek over the last year and look forward to continue this progress in 2026. Now, I will turn the call over to Mark, who will provide additional color on the quarter.

During the quarter, we paid approximately $15 million in dividends and bought back approximately $20 million of our shares.

Our strong balance sheet, improved reliability, and confidence in EOP enable us to do counter technical buyback in 2025.

We remain committed to a discipline and balanced approach to Capital allocation and look forward to continued, rewarding. Our shareholders in closing. Thank you for our team, for the hard work and dedication to 2025. I'm proud of the progress in delac over the last year and look forward to continue this progress in 2026. Now, I'll turn the call over to Mark who will provide additional color on the Cotton.

Avigal Soreq: We remain committed to a disciplined and balanced approach to capital allocation and look forward to continue rewarding our shareholders. In closing, thank you for our team for the hard work and dedication to 2025. I'm proud of the progress in Delek over the last year and look forward to continue this progress in 2026. Now, I will turn the call over to Mark, who will provide additional color on the quarter.

I'm proud to continue our strong shareholder return, dividend, and buyback through the cycle.

Thank you, Abigail for the fourth quarter, delek had net income of 78 million or 1.26 cents per share adjusted, net income was 143 million or 2.31 cents per share and adjusted. Even though was approximately 375 million moving to slide 5, we show the breakout of agent

For the fourth quarter.

Mark Hobbs: Thank you, Avigal. For the Q4, Delek had net income of $78 million, or $1.26 per share. Adjusted net income was $143 million, or $2.31 per share, and adjusted EBITDA was approximately $375 million. Moving to slide 5, we show the breakout of adjusted EBITDA and adjusted EPS for the Q4. Excluding SREs, adjusted EBITDA and adjusted EPS were approximately $226 million and $0.44 per share, respectively. This removes the reduction in cost of materials of $75 million associated with prior year SREs and the impact of our RVO exemption recognition for the Q4 of $74 million. For the full year 2025, excluding SREs, our adjusted EBITDA was approximately $763 million.

We remain committed to a disciplined and balanced approach to capital allocation and look forward to continuing to reward our shareholders. In closing, thank you to our team for the hard work and dedication to 2025. I'm proud of the progress in Delek over the last year and look forward to continuing this progress in 2026. Now, I will turn the call over to Mark, who will provide additional color on the quarter.

Thank you. Abigail, for the fourth quarter, Delek had net income of $78 million, or $1.26 per share. Adjusted net income was $143 million, or $2.31 per share. And adjusted EBITDA was approximately $375 million.

Mark Hobbs: Excluding SREs, adjusted EBITDA and adjusted EPS were approximately $226 million and $0.44 per share, respectively. This removes the reduction in cost of materials of $75 million associated with prior year SREs and the impact of our RVO exemption recognition for the Q4 of $74 million. For the full year 2025, excluding SREs, our adjusted EBITDA was approximately $763 million.

Excluding sres, adjusted and adjusted EPS or approximately 226 million and 44 cents per share respectively. This removes the reduction in cost of materials of 75 million associated, with prior us and the impact of our rvo exemption recognition, for the fourth quarter of 74 million for the full year. 2025 excluding sres, our adjusted Eva was approximately 763 million

Moving to slide 5. We show the breakout of adjusted EVA DE and adjusted DPS for the fourth quarter.

Excluding sres adjusted Ava, and adjusted EPS or approximately 226 million and 444 cents per share respectively.

On slide 19. The breakdown of adjusted Eva de excluding Sr from the third quarter of 2025 to the fourth quarter shows that there was 1 Main driver for the decrease in ibida.

Declined by 91 million, largely due to seasonality.

This removes the reduction in cost of materials of 75 million associated, with prior us and the impact of our rvo exemption recognition for the fourth quarter of 74 million.

Excluding sres Supply and marketing contributed approximately 23 million in the quarter.

Of that amount.

Mark Hobbs: On Slide 19, the breakdown of adjusted EBITDA, excluding SREs, from Q3 2025 to Q4 shows that there was one main driver for the decrease in EBITDA. The primary driver was in the refining segment, where adjusted EBITDA declined by $91 million, largely due to seasonality. Excluding SREs, supply and marketing contributed approximately $23 million in the quarter. Of that amount, approximately $35 million was generated by wholesale marketing. Asphalt contributed a loss of $4.2 million, with the remaining contribution coming from supply. In the logistics segment, we continue to have another strong quarter, delivering approximately $142 million in adjusted EBITDA. Moving to Slide 20 to discuss cash flow. Cash flow provided by operations in Q4 was $503 million.

Approximately 35 million was generated by wholesale marketing.

For the full year 2025, excluding SREs, our adjusted EVA was approximately $763 million.

Asphalt contributed a loss of 4.2 million with the remaining contribution coming from Supply.

On slide 19. The breakdown of adjusted Eva de excluding sres from the third quarter of 2025 to the fourth quarter shows that there was 1 Main driver for the decrease in ibida.

In the logistics segment, we continue to have another strong quarter, delivering approximately 142 million and adjusted EV Dot.

Moving to slide, 20 to discuss cash flow.

The primary driver was in the refining segment, where adjusted EVA declined by $91 million, largely due to seasonality.

Mark Hobbs: Asphalt contributed a loss of $4.2 million, with the remaining contribution coming from supply. In the logistics segment, we continue to have another strong quarter, delivering approximately $142 million in adjusted EBITDA. Moving to Slide 20 to discuss cash flow. Cash flow provided by operations in Q4 was $503 million.

Excluding SRS, supply and marketing contributed approximately $23 million in the quarter. Of that amount, approximately $35 million was generated by wholesale marketing.

Cash flow provided by operations. In the fourth quarter was 503 million. This includes our net income for the period adjusted for non-cash items. Monetization of sres and a net inflow related to changes in working capital of 26 million.

Asphalt contributed a loss of $4.2 million, with the remaining contribution coming from Supply.

In the logistics segment, we continued to have another strong quarter, delivering approximately 142 million and adjusted EBITDA.

When adjusting for working capital and SRS cash flow from operations, was 119 million. This was an improvement of 211 million when compared to the fourth quarter of last year

Moving to slide 20 to discuss cash flow.

Mark Hobbs: This includes our net income for the period, adjusted for non-cash items, monetization of SREs, and a net inflow related to changes in working capital of $26 million. When adjusting for working capital and SREs, cash flow from operations was $119 million. This was an improvement of $211 million when compared to Q4 of last year. This improvement was driven by an increase in net margin in the quarter versus last year and the continued success we are having with our Enterprise Optimization Plan. Investing activities of $117 million in the quarter includes approximately $26 million for growth projects, primarily at DKL.

Cash flow provided by operations. In the fourth quarter was 503 million.

This Improvement was driven by an increase in net margin in the quarter versus last year. And the continued success, we are having with our Enterprise optimization plan.

This includes our net income for the period adjusted for non-cash items. Monetization of sres and a net inflow related to changes in working capital of 26 million.

Investing activities of 117 million in the quarter includes approximately 26 million for growth projects, primarily at dkl.

Mark Hobbs: This improvement was driven by an increase in net margin in the quarter versus last year and the continued success we are having with our Enterprise Optimization Plan. Investing activities of $117 million in the quarter includes approximately $26 million for growth projects, primarily at DKL.

When adjusting for working capital and SRS cash flow from operations, was 119 million. This was an improvement of 211 million when compared to the fourth quarter of last year

Financing activities of 391 million includes approximately 380 million related to the pay down of our inventory, intermediation agreement, and Associated inventory financing, which will result in at least a 40 million dollar reduction in annual interest expense.

This improvement was driven by an increase in net margin in the quarter versus last year, and the continued success we are having with our Enterprise Optimization Plan.

20 million in share repurchases, approximately 15 million dollars in dividend payments and approximately 22 million in decal, distribution payments to public unit holders.

Mark Hobbs: Financing activities of $391 million includes approximately $380 million related to the paydown of our inventory intermediation agreement and associated inventory financing, which will result in at least a $40 million reduction in annual interest expense. $20 million in share repurchases, approximately $15 million in dividend payments, and approximately $22 million in DKL distribution payments to public unit holders. On slide 21, we outline our Q4 capital spending, with $82 million invested at Delek standalone and $31 million at DKL, largely for growth projects. Our net debt position is broken out between Delek and Delek Logistics on slide 22. Excluding Delek Logistics, our Delek standalone net debt remained largely in line with prior quarters. Moving now to slide 23, where we cover Q1 outlook items.

Investing activities of 117 million in the quarter includes approximately 26 million for growth projects, primarily at dkl.

On slide 21. We outline our fourth quarter Capital spending with 82 million invested a delic standalone and 31 million of dkl. Largely for growth projects.

Our net debt position is broken out between delek and delek. Logistics on slide 22 excluding delek Logistics, our dellic Standalone net debt remain largely in line with prior quarters

Moving now to slide 23 where we cover first quarter Outlook items.

Mark Hobbs: On slide 21, we outline our Q4 capital spending, with $82 million invested at Delek standalone and $31 million at DKL, largely for growth projects. Our net debt position is broken out between Delek and Delek Logistics on slide 22. Excluding Delek Logistics, our Delek standalone net debt remained largely in line with prior quarters. Moving now to slide 23, where we cover Q1 outlook items.

$20 million in share repurchases, approximately $15 million in dividend payments, and approximately $22 million in Delek's distribution payments to public unit holders.

Our throughput guidance for the first quarter of 2026 is 70 to 74 thousand barrels per day at Tyler.

66 to 71,000 barrels per day at El Dorado.

On slide 21. We outline our fourth quarter Capital spending with 82 million invested a delic standalone and 31 million of dkl. Largely for growth projects.

Our net debt position is broken out between delek and delek. Logistics on slide 22, excluding delek Logistics, our delek Standalone, net debt remain largely in line with prior quarters

Due to the planned, turnaround. Big Spring will run 22 to 28,000 barrels per day and lastly, cross Springs will run 82 to 86,000 barrels per day. Our implied system, throughput Target for the first quarter.

Mark Hobbs: Our throughput guidance for Q1 2026 is 70 to 74 thousand barrels per day at Tyler, 66 to 71 thousand barrels per day at El Dorado. Due to the planned turnaround, Big Spring will run 22 to 28 thousand barrels per day, and lastly, Krotz Springs will run 82 to 86 thousand barrels per day. Our implied system throughput target for Q1 is in the 240 to 259 thousand barrels per day range. In addition to throughput guidance, for Q1, we expect operating expenses to be between $210 and $220 million. Our guidance for Q1 incorporates increased operating expenses associated with preparing for Winter Storm Fern. G&A to be between $47 and $52 million.

Moving now to slide 23, where we cover first quarter outlook items.

Is in the 240 to 259,000 barrels per day range.

In addition to throughput guidance, for the first quarter, we expect operating expenses to be between 210 and 220 million.

66,000 to 71,000 barrels per day at El Dorado.

For the first quarter, incorporates increased operating expenses associated with preparing for winter storm fern.

Mark Hobbs: Our implied system throughput target for Q1 is in the 240 to 259 thousand barrels per day range. In addition to throughput guidance, for Q1, we expect operating expenses to be between $210 and $220 million. Our guidance for Q1 incorporates increased operating expenses associated with preparing for Winter Storm Fern. G&A to be between $47 and $52 million. D&A is expected to be between $100 and $110 million, and net interest expense to be between $75 and $85 million. With that, we will now open the call for questions.

Due to the planned turnaround, Big Spring will run 22,000 to 28,000 barrels per day, and lastly, Cross Springs will run 82,000 to 86,000 barrels per day. Our implied system throughput target for the first quarter.

Is in the 240 to 259,000 barrels per day range.

G&A to be between 47 and 52 million. DNA is expected to be between 100 and 110 million. And that interest expense to be between 75 and 85 million with that. We will now open the call for questions.

In addition to throughput guidance, for the first quarter, we expect operating expenses to be between $210 million and $220 million.

Thank you. The floor is now open for questions. If you have a question and have it dialed in

Just simply press star 1 on your telephone keypad, to raise your hand and join the queue.

Our guidance for the first quarter, incorporates increased operating expenses associated with preparing for winter storm fern.

If you'd like to withdraw your questions, you can press star 1 again.

Mark Hobbs: D&A is expected to be between $100 and $110 million, and net interest expense to be between $75 and $85 million. With that, we will now open the call for questions.

If you are called upon to ask a question and are listening via loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking your question.

We do request for today's session that you please let me yourself to 1 question and 1 follow-up.

G&A to be between $47 and $52 million. DNA is expected to be between $100 and $110 million. And that interest expense to be between $75 and $85 million. With that, we will now open the call for questions.

Operator: Thank you. The floor is now open for questions. If you have a question and have dialed in, just simply press star one on your telephone keypad to raise your hand and join the queue. If you'd like to withdraw your question, simply press star one again. If you are called upon to ask a question and are listening via loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking your question. We do request for today's session that you please limit yourself to one question and one follow-up. Again, to join the queue, just simply press star one. Your first question comes from the line of Doug Leggate of Wolfe Research. Your line is open.

And again, to join the queue, just simply press star 1.

Your first question comes from the line of Douglas of wolf research. Your line is open.

Thank you. The floor is now open for questions. If you have a question and have it dialed in

Just simply press star 1 on your telephone keypad to raise your hand and join the queue.

Thank you, excuse me. Good morning everyone. Um hey, good morning, d.

If you'd like to withdraw your question, simply press star one again.

Oh player. I um it's it's great to see these s showing up but I wonder if I could just ask a couple of questions.

Operator: We do request for today's session that you please limit yourself to one question and one follow-up. Again, to join the queue, just simply press star one. Your first question comes from the line of Doug Leggate of Wolfe Research. Your line is open.

If you are called upon to ask a question and are listening via loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking your question.

Um, relating to what you've already booked.

We do request for today's session that you please limit yourself to one question and one follow-up.

And again, to join the queue, just simply press *1.

Your first question comes from the line of Doug Leggate of Wolfe Research. Your line is open.

Doug Leggate: Thank you. Excuse me. Good morning, everyone,

Mark Hobbs: Hey, good morning, Doug.

Doug Leggate: Hi, Miguel. Oh, pleasure, I, it's great to see these SREs showing up, but I wonder if I could just ask a couple of questions relating to what you've already booked. I guess I'm really looking for the cash inflow on what's remaining still to be recognized for the SREs that you've already, you know, been awarded. Maybe you could, you know, address what the path is to get the pre-2023 SREs recognized. That's my first question. My second question is on the go-forward SRE value, because it's obviously massive and there's a lot of other things we could talk about, like the EOP and so on today.

Uh, thank you, excuse me. Good morning, everyone. Um hey, good morning, d. I

Don't know. Pleasure. I um, it's it's great to see these SRS showing up, but I wonder if I could just ask a couple of questions.

Um, relating to what you've already booked.

Doug Leggate: That's my first question. My second question is on the go-forward SRE value, because it's obviously massive and there's a lot of other things we could talk about, like the EOP and so on today. The dominant issue, we think, is the value of the 25 through 28 RINs and any risks from legislative changes that you see there. Could you maybe offer any insight you can on why you continue to risk the 2025 RIN specifically? Thank you.

Doug Leggate: The dominant issue, we think, is the value of the 25 through 28 RINs and any risks from legislative changes that you see there. Could you maybe offer any insight you can on why you continue to risk the 2025 RIN specifically? Thank you.

The EOP and so on today, but but the dominant issue we think is the value of the 25 through 28 rims and any risks from legislative changes that you see there. So could you maybe offer any insight you can. And why you continue to risk the 2025 and specifically thank you? Yeah, absolutely Doug. And with your permission, I will tie to start with the future and again this is 1 person opinion about what what the situation exactly. But

When we are talking about the future, first of all, we need to understand it's not a delic topic.

Um so I guess I'm I'm really looking for the cash info on. What's remaining still to be recognized for the uh the the SR that you've already, you know, being awarded uh and maybe you could you know, address how you what the path is to get the pre 2023 SRS recognized? That's my first question. My second question is on the go forward SRV value because it's obviously massive and there's a lot of other things we could talk about like the EOP and so on today. But but this dominant issue, we think is the value of the 25- 28 rings and any risks from legislative changes that you see there. So could you maybe offer any insight you can and why you

Mark Hobbs: Yeah, absolutely, Doug, with your permission, I will try to start with the future. Again, this is 1 person opinion about what's the situation exactly. When we are talking about the future, first of all, we need to understand it's not a Delek topic. It's a way broader topic than that. It's directly impacting close to 40 refineries and indirectly impact to the bad half of our industry. It's a huge, huge topic. I want to make it even more clear than that. The whole point of SRE is disproportionate economic harm. Disproportionate economic harm. That's the essence of the law behind it, is to maintain high-paying jobs.

Avigal Soreq: Yeah, absolutely, Doug, with your permission, I will try to start with the future. Again, this is 1 person opinion about what's the situation exactly. When we are talking about the future, first of all, we need to understand it's not a Delek topic. It's a way broader topic than that. It's directly impacting close to 40 refineries and indirectly impact to the bad half of our industry. It's a huge, huge topic. I want to make it even more clear than that. The whole point of SRE is disproportionate economic harm. Disproportionate economic harm. That's the essence of the law behind it, is to maintain high-paying jobs.

Continue to risk the 2025, and specifically, thank you. Yeah, absolutely. Again, with your permission, I will try to start with the future, and again, this is one person's opinion about what the situation is exactly. But when we are talking about the future, first of all, we need to understand it's not a delicate—

It's a way broader topic than that. It's directly impacting a close to 40 feiner is an indirectly impact to the bed half of our industry. So it's a huge, huge topic and I want to make it even more clear than that. They all they all point of s is this proportioned economic harm? This proportionate economic arm, and that's and, and the essence of the law behind it is to maintain high paying jobs, local to support local communities, and to be able to have affordable fuel for those communities. So, it's very, very, very, very, very important.

Yesterday and for refineries are critical to meet the energy dominance policy of energy critical in our mind and are here to stay.

About the 2019 to 2022. You ask that as well. I want to say something that relief and eligibility are coming together.

[Analyst] (Scotiabank): ... locally to support local communities and to be able to have affordable fuel for those communities. It's very, very, very, very important. SRE and small refineries are critical to meet the energy dominance policy of energy, critical in our mind, and are here to stay. About the 2019 to 2022, you asked that as well. I wanna say something, that relief and eligibility are coming together. We obviously eligible for those SREs, but we got invalid RINs. There is an acronym for those RINs lately, it's a zombie RINs. That's what the people just call them. Since those twins of relief and eligibility coming together, we believe in our case around it, and we believe that we get full value for what we already paid. Mark, why don't you touch the posit?

Avigal Soreq: ... locally to support local communities and to be able to have affordable fuel for those communities. It's very, very, very, very important. SRE and small refineries are critical to meet the energy dominance policy of energy, critical in our mind, and are here to stay. About the 2019 to 2022, you asked that as well.

So we obviously eligible for those but we got

It's a way broader topic than that. It's directly impacting close to 43 refineries and indirectly impact uh, to the bed half of our industry. So it's a huge, huge topic and I want to make it even more clear than that. They all they all point of s is this proportioned economic harm. This proportionate economic harm and that's and, and the essence of the law behind it is to maintain high paying jobs, local to support local communities, and to be able to have affordable fuel for those communities. So, it's very, very, very, very, very important.

Especially, and small refineries are critical to meet the energy dominance policy—energy is critical in our mind and are here to stay.

Avigal Soreq: I wanna say something, that relief and eligibility are coming together. We obviously eligible for those SREs, but we got invalid RINs. There is an acronym for those RINs lately, it's a zombie RINs. That's what the people just call them. Since those twins of relief and eligibility coming together, we believe in our case around it, and we believe that we get full value for what we already paid. Mark, why don't you touch the posit?

About the 2019 to 2022. You ask that as well. I want to say something that relief and eligibility are coming together.

so we obviously eligible for those but we got

Mark Hobbs: Yeah, yeah, sure, Avigal and Doug, appreciate the question. As Avigal mentioned in his prepared remarks, look, we're extremely excited and proud of the progress we made during the quarter. You know, we saw an opportunity during the quarter to restructure and pay down our inventory intermediation agreement, and our team did a great job. They were actually able to monetize a vast majority of the RINs from our prior year SREs, from 2023, 2024, you know, that $400 million that we mentioned on last Q3 call, much earlier than our original estimate of six to nine months, raising approximately $360 million during the Q4.

A invalid dreams. There is a economy for those dreams lately. It is a zombie wins. That's what we the people just called them and since those twins of relief and eligibility coming together, we believe in our case surrounded and we believe that we get full value for what we already pay. So Mark why don't you touch the the um deposit? Yeah yeah yeah sure I'll and Doug appreciate the question and as I've got mentioned in his prepared remarks like we're extremely excited and proud of the progress. We made during the quarter you know we saw an opportunity during the quarter to restructure and pay down our inventory, intermediation agreement and our team did a great job and they were actually able to monetize a vast majority of the rents from our prior year. SRS from 2023 2024, you know, that 400 million that we mentioned on last quarter is called much earlier than our original estimate of 6 to 9 months, raising approximately 360 million dollars during the fourth quarter. Uh, and at the end of the quarter near

Mark Hobbs: They were actually able to monetize a vast majority of the RINs from our prior year SREs, from 2023, 2024, you know, that $400 million that we mentioned on last Q3 call, much earlier than our original estimate of six to nine months, raising approximately $360 million during the Q4. At the end of the quarter, near the very end, we used these proceeds and available cash to pay down approximately $380 million under the IIA and associated inventory financing, which was a large portion of what we actually had outstanding under the program.

Mark Hobbs: At the end of the quarter, near the very end, we used these proceeds and available cash to pay down approximately $380 million under the IIA and associated inventory financing, which was a large portion of what we actually had outstanding under the program. These activities are gonna reduce our annual interest expense associated with the IIA by at least $40 million. This further enhances our free cash flow generation, and as Avigal also mentioned in his prepared remarks, this is on top of and beyond everything that we've discussed to date with regards to our EOP initiatives.

At the very end, we use these proceeds and available cash to pay pay down approximately 380 million under the IIA. And Associated inventory financing, which was a large portion of what we actually had outstanding under the program. And these activities are going to reduce our annual interest expense associated with the IIA by at least forty million dollars. This further enhances our free cash flow generation and is avago. Also mentioned is prepared remarks. This is on top of and Beyond everything that we've discussed today with regards to our EOP initiatives.

And Doug just to.

Doug 1 more thing I wanted to do.

Mark Hobbs: These activities are gonna reduce our annual interest expense associated with the IIA by at least $40 million. This further enhances our free cash flow generation, and as Avigal also mentioned in his prepared remarks, this is on top of and beyond everything that we've discussed to date with regards to our EOP initiatives.

Yeah, I just wanted to add to what Mark and avigal just talked about. And I think you were, you were mentioning and you're trying to touch upon this point about, you know, whether some of this values reflected in our stock price or not. But if you look at just on a mid cycle basis,

Mohit Bhardwaj: Doug, just to-

Our original estimate of 6 to 9 months raising approximately 36060 million dollars during the fourth quarter. Uh, and at the end of the quarter, near the very end, we use these proceeds and available cash to pay pay down approximately 380 million under the IIA. And Associated inventory financing, which was a large portion of what we actually had outstanding under the program. And these activities are going to reduce our annual interest expense associated with the IIA by at least 40 million dollars. This further enhances our free cash flow generation and as Ava also, mentioned is prepared remarks. This is on top of and Beyond everything that we've discussed today with regards to our EOP initiatives.

[Analyst] (Scotiabank): Avigal-

Mark Hobbs: Avigal-

Mohit Bhardwaj: Doug, one more thing.

3, uh, inventory invent, intermediation agreement. Restructuring, we would have made 150 million dollars of free cash flow and and Mark just talked about, you know, another 40 million dollars on top of that.

[Analyst] (Scotiabank): Yeah, go ahead, one more.

Avigal Soreq: Yeah, go ahead, one more.

Mohit Bhardwaj: I just wanted to add. Yeah, I just wanted to add to what Mark and Avigal just talked about. I think you were mentioning, and you're trying to touch upon this point about, you know, whether some of this value is reflected in our stock price or not. If you look at just on a mid-cycle basis, pre inventory intermediation agreement restructuring, we would have made $150 million of free cash flow. Mark just talked about, you know, another $40 million on top of that. If you take that $190 million of value at 10% free cash flow yield, that's $32 a share. If you look at our value of DKL, that's another $32 a share, so that's at least $65 a share that's missing.

And Doug just to Doug 1. More thing I wanted to do. Yeah. I just wanted to add to what Mark and avigal just talked about. And I think you were, you were mentioning and you're trying to touch upon this point about, you know, whether some of this values reflected in our stock price or not. But if you look at just on a mid-cycle basis,

If you take that 1 Point, 190 million of value at 10, free cash flow. We that's $32 a share. And if you look at our value of dkl, that's another $32. Share. So that's at least $65 a share that's missing and you know, that's got nothing to do with sr's at all. So you know we definitely agree with you that there's a lot of value that's still, uh, you know, not reflected in our shares.

Mohit Bhardwaj: Mark just talked about, you know, another $40 million on top of that. If you take that $190 million of value at 10% free cash flow yield, that's $32 a share. If you look at our value of DKL, that's another $32 a share, so that's at least $65 a share that's missing. you know, that's got nothing to do with SREs at all.

And uh to answer 1 last piece of your question. Yes. There's some more left beyond the monetization that we have done for 2023 and 2024 rents. Still left to be uh which is which we expect to be monetizing in the first half of 2026. Most likely the first quarter.

Mohit Bhardwaj: you know, that's got nothing to do with SREs at all. you know, we definitely agree with you that there's a lot of value that's still, you know, not reflected in our shares. to answer one last piece of your question, yes, there's some more left beyond the monetization that we have done for 2023 and 2024 RINs, still left to be, which we expect to be monetizing in the first half of 2026, most likely in Q1.

Three, uh, inventory invent, intermediation agreement. Restructuring, we would have made $150 million of free cash flow and, and Mark just talked about, you know, another $40 million on top of that. And if you take that 1 point, $190 million of value at 10% free cash flow yield, that's $22 a share. And if you look at our value of DKL, that's another $32 a share. So that's at least $55 a share that's missing and you know,

Robert Wright: You know, we definitely agree with you that there's a lot of value that's still, you know, not reflected in our shares. to answer one last piece of your question, yes, there's some more left beyond the monetization that we have done for 2023 and 2024 RINs, still left to be, which we expect to be monetizing in the first half of 2026, most likely in Q1.

Guys, I don't want to hold the question here, but I want to make sure you understood my question about the forward.

Slide 18.

You're showing a range of 50% or 100%.

For 460 million 100% basis. But you're getting as guidance of all 4, referrals are going to be under 75,000 a day. So why should we risk that number in 25? Or for that matter? 26 through 28.

That's got nothing to do with SRS at all. So you know we definitely agree with you that there's a lot of value that's still. Uh, you know, not reflected in our shares and uh to answer 1 last piece of your question. Yes. There's some more left beyond the monetization that we have done for 2023 and 2024 RS. Still left to be uh which is which we expect to be monetizing in the first half of 2026, most likely in the first quarter.

Doug Leggate: guys, I don't wanna hog the question here, but I wanna make sure you understood my question about the forward. Slide 18, you're showing a range of 50% to 100%, $468 million on a 100% basis. You're also giving as guidance that all four refineries are gonna be under 75,000 barrels a day. Why should we risk that number in 2025, or for that matter, 2026 through 2028?

Doug Leggate: Guys, I don't wanna hog the question here, but I wanna make sure you understood my question about the forward. Slide 18, you're showing a range of 50% to 100%, $468 million on a 100% basis. You're also giving as guidance that all four refineries are gonna be under 75,000 barrels a day. Why should we risk that number in 2025, or for that matter, 2026 through 2028?

and and I just want to make sure that this point about

Guys, I don't want to hold up the question here, but I want to make sure you understood my question about the forward. On slide 18, you're showing a range of 50% to 100%.

Uh, disproportionate economic harm, uh, comes across like, you know, you're absolutely right. So, these rents are not a windfall, right? So, you know, you, we the way, if you are a definite like us who stays in compliance, you pay for these rents. And then, these rents, the cost of these rents are returned to your a year later.

Four hundred sixteen million on a 100% basis, but you're also giving us guidance that all four refineries are going to be under 75,000 barrels a day. So why should we risk that number in '25? Or, for that matter, '26 through '28?

Mohit Bhardwaj: Yeah, I think, Doug, again, a very good question. I just want to make sure that this point about disproportionate economic harm comes across. You know, we, the way, if you are a refiner like us who stays in compliance, you pay for these RINs, and then the cost of these RINs are returned to you a year later. We cannot decide for the EPA. The EPA will decide, you know, how they will rule upon these petitions. You know, so far, all we can say that EPA has done a good job in clearing the backlog that was created from 2019 to 2024. They have been very good in creating a forward-looking guidance as well.

yeah, I think that again a very good question and and I just want to make sure that this point about

Uh, disproportionate economic harm, uh, comes across like, you know, you're absolutely right. So, these rents are not a windfall, right? So, you know, you will be—the way, if you are a definer like us who stays in compliance, you pay for these rents, and then these rents, the cost of these rents, are returned to you a year later.

So we can, we cannot, uh, decide for the EPA, the EPA will decide, you know, how they will rule upon these petitions. But, you know, so far, all we can say that EPA has done a good job in clearing the backlog that was created from 2019 to 2024 and they have been very good uh in creating a forward-looking guidance as well. So we just expect them to uh continue with this good work and we'll see what happens uh as far as our 2025 petitions are concerned. On the go forward basis for us, we just wanted you to have the 468.42% of that uh is approved. And that's an EPS hand.

I'll pass it back. Thanks for the clarification.

Your next question.

Mohit Bhardwaj: We just expect them to continue with this good work, and we'll see what happens as far as our 2025 petitions are concerned on a go-forward basis. For us, we just wanted you to have the $468.4 million RVO obligation on a 2025 basis, and that's what we have provided. What percentage of that is approved, that's in EPA's hands.

Your next question comes from the line of Paul Ching of Scotia Bank. Your loan is open.

Hey guys. Good morning.

It's a very good quarter. Um,

So, we can—we cannot—decide for the EPA. The EPA will decide, you know, how they will rule upon these petitions. But, you know, so far, all we can say is that the EPA has done a good job in clearing the backlog that was created from 2019 to 2024, and they have been very good, uh, in creating a forward-looking guidance as well. So, we just expect them to, uh, continue with this good work, and we'll see what happens, uh, as far as our 2025 petitions are concerned on a go-forward basis. For us, we just wanted you to have the 468.47% of that, uh, is approved. That's an EPS hand.

Doug Leggate: I'll pass it back. Thanks for the clarification, Moin.

I'll pass it back. Thanks for the clarification.

Operator: Your next question comes from line-

Mohit Bhardwaj: Thank you, guys.

Operator: Your next question comes from the line of Paul Cheng of Scotiabank. Your line is open.

Erica that, uh, just curious, um, what's left in that? The consolidation of the dkl and in terms of timeline, also, ultimately, that, uh, what is the, uh, ownership that you think you need or you want to have in dkl?

Your next question.

[Analyst] (Scotiabank): Hey, guys. Good morning.

Your next question comes from the line of Paul Ching of Scotiabank. Your line is open.

Mohit Bhardwaj: Hey, Paul.

[Analyst] (Scotiabank): Yes, a very good quarter. Avigal, that, just curious, what's left in the consolidation of the DKL, and in terms of timeline? Also, ultimately, then, what is the ownership that you think you need or you want to have in DKL? Second question is that in the Big Spring refinery, you're going to have a full plant turnaround, currently going. What initiative, other than the normal turnaround that you are taking, that will lead to the improvement of the performance going forward? What other than, say, the normal full plant turnaround that you typically would do every four or five years, what else are you doing in this turnaround? Thank you.

Hey guys, good morning. Um, hey Paul.

Yes, a very good quarter. Um,

Um and second question, is that in the uh Big Spring Refinery? Um you're going to have a full pan turn around currently going. So what initiative other than the normal turnaround that you are taking that will lead to the Improvement of the performance going forward. Uh, what other than say, the normal full pan turn around that you typically will do every 4 or 5 years. What else are you doing in this turnaround? Thank you.

Erica that, uh, just curious, um, what's left in that the consultation or the dkl and in terms of time 9, also ultimately that, uh, what is the uh, ownership that you think you need or you want to have in dkl?

Yeah, thank you. Um, all with your permission, I would start with the bigger discussion about the sum of the part and decolonization and all of the topic. So I want to make sure that the point coming across very, very clearly. The whole point of some of the parties to make sure that the value of our business, the middle and business that we are building is fully reflected in the unit price and share price. This that's the objective obviously. Uh, we have done tremendous amount.

Avigal Soreq: Yeah, thank you, Jim. Paul, with your permission, I would start with a bigger discussion about the sum of the parts and the deconsolidation, and all of that topic. I want to make sure that the point coming across very, very clearly. The whole point of sum of the parts is to make sure that the value of our business, the midstream business that we are building, is fully reflected in the unit price and share price. That's the objective. Obviously, we have done tremendous amount of work in the last 18 months around it. It's very visible to the market. We've sold retail in the past you liked. We have done 2 acquisition of a midstream company before the market realized what the value is. We probably bought it around half of the market versus what it is today.

Um and second question is that in the uh brick spring Refinery? Um you're going to have a full pan turn around currently going. So what initiative other than the normal turnaround that you are taking that will lead to the Improvement of the performance going forward. Uh, what other than say, the normal full pan turn around that you typically will do every 4 or 5 years. What else are you doing in this tournament? Thank you.

Of walk in the last 18 months around that. It's very visible to the market, we've sold retail in the past. You you liked, we have done 2, acquisition of a MIM company before the market realized what the value is. We probably bought it around half of the market versus what it is today. We have done, build a gas plant, very in a very, very good location with a very good capabilities and the develop those business. Very, very nicely. And we are very proud of that. Obviously, we reduce our ownership from close to 80%, to around 60%. Now, while doing that increased the distribution, so we check many many boxes

Avigal Soreq: We have done, build a gas plant in a very, very good location with very good capabilities, and then develop those business very, very nicely, and we are very proud of that. Obviously, we reduced our ownership from close to 80% to around 60% now, while doing that, increased the distribution. We checked many, many boxes around creating value for both unit holder and shareholder. At that junction, we are working extensively on 4 paths, and maybe some of them we are working together. 1 is sell the entire assets for the right value. When I'm saying the entire value, if you're looking on the intrinsic value of each business unit in DKL, you get to seven handle number on the DKL unit.

I'm creating value for both unit order and shareholder at that Junction. We are working extensively on 4 on 4 paths and maybe some some of them were working together. Uh 1 is sell the entire assets for the right value and when I'm saying the data value, if you're looking on the intrinsic value of each business unit in dkl, you get to 7 Handel number on the dkl unit and we can always monetize 1 of the asset of decal for the right price. We have the

Value of our business. The minimum business that we are building is fully reflected in the unit price and share price, that's that's the objective. Obviously, we have done tremendous amount of work in the last 18 months, around that, it's very visible to the market, we've sold retail in the price, you you liked. Uh, we have done 2 acquisition of permits from company. Before the market realized what the value is, we probably bought it around half of the market versus what it is today, we have done, um, build a gas plant, very in a very, very good location with a very good capabilities and the develop those business. Very, very nicely. And we are very proud of that. Obviously, we reduce our ownership from close to 80%, to around 60%. Now, while doing that increased the distribution, so we check many many boxes.

Around creating value for both unit order and shareholders at that Junction. We are working extensively.

Free tax between DK and DK. For, allow decal to buy units back from from from DK. And we always can do m&a and reduce our ownership like we have done so far. So we are walking many angles. I think that the, there is a tremendous amount of activity that visible to the market. And you need to remember,

Avigal Soreq: We can always monetize one of the assets of DKL for the right price. We have the free tax between DK and DKL, for allow DKL to buy unit back from DK. We always can do M&A and reduce our ownership like we have done so far. We are working many angles. I think that there is a tremendous amount of activity that's visible to the market. You need to remember that a lack of announcement is not lack of work or lack of progress. Stay tuned. Around the Big Spring, you had another question. Around the Big Spring, we are very happy with the team over there. The team, it's also visible in the Q4 numbers, they made a very good progress.

The lack of announcement is not lack of work, or lack of progress. Stay tuned.

On 4 on 4 paths and maybe some some of them were working together. Uh 1 is sell the entire assets for the right value. And when I'm saying the data value, if you're looking on the intrinsic value of each business unit in dkl, you get to 7 Handel number on the decal unit and we can always monetize 1 of the assets of decal for the right price. We have the

Start a free tax between DK and DK. For allow decal to buy unit back from for from DK, and we always can do m&a and reduce our ownership like we have done so far. So we are working many angles. I think that the, there is a tremendous amount of activity that visible to the market, and you need to remember that. The lack of announcement is not lack of work, or lack of progress. Stay tuned.

Around the big speaker than other person. So around around the Big Spring, we are very happy with the team over there. The team is, is also visible in the Q4 numbers. They made a very good progress and I would focus the Big Spring after the turnaround in 4 areas, right? 1 improve reliability, second improve, our good, slate of and optimization. And and there they put improve the product plate. So we are very excited to see how Big Spring going to perform after turnaround, and let's all stay tuned.

Avigal Soreq: I would focus the Big Spring after the turnaround in four areas, right? One, improve reliability. Second, improve our crude slate and optimization. Third, improve the product slate. We are very excited to see how Big Spring are gonna perform after turnaround, and let's all stay tuned.

Introduced or new unit being at or anything that we should be aware in this uh full pan turn around.

[Analyst] (Scotiabank): Hey, Avigal, that for Big Spring, is there any new technology being introduced or new unit being added, or any things that we should be aware in this, full pan turnaround?

And the big speaker had another question. So, around the Big Spring, we are very happy with the team over there. The team has also been visible in the Q4 numbers. They made very good progress, and I would focus on Big Spring after the turnaround in four areas, right? One, improve reliability; second, improve our crude slate and optimization; and there they improved the product slate. So, we are very excited to see how Big Spring is going to perform after the turnaround, and let's all stay tuned.

Avigal Soreq: No, it's a cycle turnaround. The last turnaround we've done in Big Spring was 2020. That's on the cycle. We are not doing any huge capital projects, but we are making sure that those three boxes that I've said are being very clear. The operational and reliability, the crude slate, and the product mix after that. Mohit, you want to chime in, please.

Hey, uh, Erica, that for Big Spring. Is there any new technology being introduced, or new, you and they being at, or anything that we should be aware of in this, uh, full plant turnaround?

Mohit Bhardwaj: No, Avigdor, I just want to add to what you just said. Paul, you're asking the right question. For us, the most important piece about Big Spring is to improve its reliability. Once we improve the reliability, our cost structure is going to improve, and it has been we've been making great progress in improving its cost structure, and we expect after turnaround, that cost structure will improve even more. If you look at the product side, that will help with the margin capture as well. You know, I think we are very excited about this turnaround, as Avigdor just mentioned, and we look forward to updating you about this at our next earnings call.

No, it's a cycle turn around the last turn around we've dealing done. In Big Spring was 2020 so that's on the cycle we are not doing any huge Capital project but we are making sure that those 3 boxes that I've said are being very cleared, the operational reliability, the code slate and the product mix after that and chime in please. No I just want to add to what you just said and and Paul you're asking the right question uh, for us the most important piece about V spring is to improve its reliability and once we improve the reliability, our cost structure is going to improve and it has been all we, we've been making great progress in improving his cost and we expect after turn around that cost structure will improve even more. And if you look at the product side, that will help with the margin capture as well. So, you know, I think we are very excited about this turn around as a wealth, just mentioned, and we uh we look forward to updating you about this uh at our next earnings call.

All right. Thank you.

Your next question comes from the line of Alexa petrick of Goldman Sachs. Your line is open.

Hey, good morning team and thank you for taking our questions. We wanted to ask a follow-up on the cash flow profile. Can you unpack the drivers of the race cash flow guidance and then how do we think about potential upside for that number? Just giving you you you've reached it a few times.

[Analyst] (Scotiabank): All right. Thank you.

No, it's a cycle turn around the last turn around we've dealing done. In Big Spring was 2020. So that's on the cycle we are not doing any huge capital projects but we are making sure that those 3 boxes that I've said are being very cleared, the operational reliability, the code slate and the product mix after that and Mohit won a chime in please. No, I just want to add to what you just said and and Paul you're asking the right question, uh, for us the most important piece, about Big Spring is to improve its reliability and once we improve the reliability, our cost structure is going to improve and it has been all we've been making great progress in improving his cost. Can we expect after turn around that cost structure? Will improve even more? And if you look at the product side, that will help with the margin capture as well. So, you know, I think we are very excited about this turn on as a wealth just mentioned and we uh we look forward to updating you about this uh at our next earnings call.

All right. Thank you.

Operator: Your next question comes from the line of Neil Mehta of Goldman Sachs. Your line is open.

Neil Mehta: Hey, good morning, team, and thank you for taking our question. We wanted to ask a follow-up on the cash flow profile. Can you unpack the drivers of the rates cash flow guidance? How do we think about potential upside from that number, just given you've raised it a few times?

Your next question comes from the line of Alexa Petrick of Goldman Sachs. Your line is open.

Hey, good morning team, and thank you for taking our question. We wanted to ask a follow-up on the cash,

Yeah, so um, Alexa, that's a very nice question. I will make a step back and I will give a call to the context because I think that the real discussion is EOP because EOP is all about free, cash flow. That's the essence of the program and that's what we got. The organization laser focus on um, EOP.

Survivors of the rates cash flow guidance. And then, how do we think about potential upside from that number? Just given you—you've raised it a few times.

Avigal Soreq: Yeah. Neil Mehta, that's a very nice question. I will make a step back, and I will give a broader context because I think that the real discussion is EOP. EOP is all about free cash flow. That's the essence of the program, and that's what we got the organization laser focused on. EOP, and I want to make it very clear, it's not just projects, it's a lifestyle. It's a language that the organization speak, and everyone in this company speak that language, and it's bubbling from a bottom up. It's very, you know, it's very exciting and pleasant to see how it's becoming part of our culture, and it's a cornerstone in our culture, and I'm very proud of that. So.

And I want to make it very clear. It's not just projects, it's a lifestyle. It's a language that the organization speak and everyone is in this company speak that language and it's bubbling from bottom up. So it's very, you know, it's very exciting.

Yeah, so um, Alexa, that's a very nice question. I will make a step back and I will give a bit of the context, because I think that the real discussion is EOP, because EOP is all about free cash flow. That's the essence of the program and that's what we got the organization laser-focused on, um, EOP.

And I want to make it very clear. It's not just projects, it's a lifestyle. It's a language that the organization speaks, and everyone in this company speaks that language, and it's bubbling from the bottom up. So it's very—you know, it's very exciting.

And the pleasant to see how it become becoming part of our culture and it's a Cornerstone in our culture and I'm very proud of that. So and if you think about it, when we started the year and a half ago, around the up, we started with the guidance of around 100 billion dollars. Now we are saying it's at least 200 so we more than doubled that and if you look at the rest of it's very rare that the company able to increase it, a time of the time of the time. But I want to tell another thing that you probably going to be happy to hear that we are not stopping. Here, we are not stopping here and we have a big plan about the future EOP.

Avigal Soreq: If you think about it, where we started a year and a half ago around EOP, we started with a guidance of around $100 billion. We are saying it's at least $200, so we more than doubled it. If you look at the history, it's very rare that the company able to increase it, time over time over time. I want to tell another thing that you're probably gonna be happy to hear, that we are not stopping here. We are not stopping here, and we have a big plan about the future EOP and more to come, and it's gonna be in the gross margin, in the G&A, in the in supply and marketing, in many area of the business that we are very excited for. Still more to come.

To come and it's going to be in the gross margin in the GNA in the in Supply Marketing, in many other, many area of the business that we are very excited for. So,

Still more to come.

Okay that's helpful and then a follow-up on that you've got EOP sres and IIA as we think about the the implications of incremental free cash flow. How should we think about the capital allocation priorities? Should we expect you to maybe lean more into BuyBacks or any thoughts? That would be helpful.

The time of the time of the time, but I want to tell another thing that you’re probably going to be happy to hear: we are not stopping here. We are not stopping here. And we have a big plan about the future EOP and more to come, and it’s going to be in the gross margin, in the G&A, in supplying, marketing, in many other—many areas of the business that we are very excited for. So—

Still more to come.

Neil Mehta: Okay, that's helpful. Then a follow-up on that. You've got EOP, SREs, and IIA. As we think about the implications of incremental free cash flow, how should we think about the capital allocation priorities? Should we expect you to maybe lean more into buybacks or any thoughts there would be helpful?

Avigal Soreq: Yeah. That's a great question. Thank you for asking that question. We are very proud of our capital allocation strategy. We said that we're gonna maintain dividend through the cycle. We can check the box around that. We said that we're gonna do a balanced approach between balance sheet and buyback. We can definitely check the box around that. We did in 2025, counter-cyclical buyback, and actually, our total return to shareholders is higher by 4% than the average of our refining peers. Our philosophy of capital allocation did not change, and it, we are very consistent about it. We communicate it to investor very clearly, and we always take opportunity to reward investor. That's the goal we have, and we'll keep doing it.

Okay that's helpful and then a follow-up on that you've got EOP SRE and IIA as we think about the the implications of incremental free cash flow. How should we think about the capital allocation priorities should we expect you maybe lean more into BuyBacks or any thoughts? That would be helpful.

Yeah. So I um that's a great question. Thank you for asking this question. Uh, we are very proud of our Capital allocation strategy. We said that we going to maintain dividend to the cycle. We can check the box around that we said that we going to do a balanced deposit between balance sheet and buy, but we can definitely check the box around that we did in 2025 counter signal buyback. And actually, we are our total return to shareholders is is higher by 4% than the average of our refining bills. So our philosophy of capital, allocation did not change.

And we are very consistent about it. We communicate that to investor very clearly and we always take opportunity to reward investor. So that's the goal we have and we'll keep doing it.

Thank you. I'll turn it back.

Thanks Alexa. Thank you.

Your next question comes from the line of Jason, gableman of TD Cowen. Your line is open.

Yeah. Hey, good morning. Thanks for taking my questions. Um,

Yeah, so I um that's a great question. Thank you for asking that question. Uh, we are very proud of our Capital allocation strategy. We said that we going to maintain dividend to the cycle. We can check the box around that. We said that we going to do a balanced approach between balance sheet, and vital, we can definitely check the box around that we did in 2025, counter technical BuyBacks and actually, we our total return to shareholders is is higher by 4% than the average of our refining bills. So our philosophy of capital, allocation did not change.

Neil Mehta: Thank you. I'll turn it back.

And we are very consistent about that. We communicate to investors very clearly, and we always take the opportunity to reward investors. So that's the goal we have, and we'll keep doing it.

Avigal Soreq: Thanks, Neil Mehta. Thank you.

Thank you. I'll turn it back.

Operator: Your next question comes from the line of Jason Gabelman of TD Cowen. Your line is open.

Thanks Alexa. Thank you.

Jason Gabelman: Hey, morning. Thanks for taking my questions. I wanted to ask on the supply line, 'cause it's now been 2 consecutive quarters where that supply and other part of the supply line has been above $50 million. I know it includes kind of a grab bag of items. You can just talk about kind of what drove the strength in Q4, how much of it was EOP versus any one-time benefits, and how we should think about that sub-line item within the overall supply line moving forward?

Your next question comes from the line of Jason Gableman of TD Cowen. Your line is open.

Yeah, good morning. Thanks for taking my questions. Um,

I wanted to ask on the supply line because it's now been 2 consecutive quarters where that supply and other part of the supply line has been above 50 million and I know it includes kind of a grab bag of items. Um so you can just talk about kind of what uh drove the strength in for you. How much of it was EOP versus any 1 time benefits and and how we should think about that, um, subline item with within the overall supply line moving forward.

In reality, as I said in my prepared remarks and you probably listen.

Avigal Soreq: Yeah, absolutely, thank you for joining our call this morning. We appreciate you. In reality, as I said in my prepared remarks, you probably listened, it's very visible that the EOP progress in the supply marketing, we see this very clearly. We see that in other places. We've seen that in the G&A, basically cutting the cost by close to half versus what it used to be. We've seen that in El Dorado. We're able to increase, to improve our capture by 2 dollar a barrel on the top of the crack. Great team over there, very proud of the progress. Still, we still see more opportunities over there, I will let Mohit touch the specific question about the DKTS.

I'm want to ask on the supply line because it's now been 2 consecutive quarters where that supply and other part of the supply line has been above 50 million dollars and I know it includes kind of a grab bag of items. Um, so you can just talk about kind of what uh drove the strength in for you. How much of it was EOP versus any 1 time benefits and and how we should think about that, um, subline item with within the overall supply line moving forward.

Yeah, absolutely. And thank you for joining our call this morning—we appreciate you.

In reality, um, as I said in my prepared remarks—and you probably listened.

We've it's very visible that the EOP progress in in the supply marketing. We see that very very clearly, which is that in other places, we've seen that in the GNA, basically, cutting the cost by close to half, that is what it used to be. You've seen that in El Dorado, were able to increase to improve our capture by 2 dollar bill on the top of the crack. So, great team over there, very proud of the progress still. We still see more opportunities over there, and I will let touch the specific question about the decades.

Mohit Bhardwaj: Hey, Jason, how are you? good to hear from you. As far as supply and marketing is concerned, I think I talked about this last quarter as well. The two specific businesses that, which are part of the supply and marketing are wholesale and asphalt, and we're making great progress in both. Especially as it comes to wholesale, we have been improving the business in three phases. The first phase was to have the right products available to supply the markets that we are serving. Second, has been contract renegotiations and increased logistics, which has allowed us to access these markets. Currently, we are in phase three, where we are optimizing the markets we are participating in. Some markets we are, you know, trying to put more product in, and other markets we are exiting.

We've it's very visible that the EOP progress in the in the supply marketing. We see that very very clearly which is that in other places, we've seen that in the GNA, basically, cutting the cost by close to half, that is what it used to be. You've seen that in El Dorado, were able to increase to improve our capture by 2 dollar bill on the top of the crack. So, great team over there, very proud of the progress still. We still see more opportunities over there and I will let them touch the specific question about the decades.

Hey Jason, how are you? Uh, good to hear from you as far as supplying marketing is concerned. I think I talked about this last quarter as well. So the 2 specific businesses which are part of the supply and marketing are wholesale and asphalt and we're making great progress in both especially as it comes to wholesale. We have been improving the business in 3 phases. The first phase was to have the right products available to supply, the markets that we are serving and second has been contract renegotiations and increased Logistics, which has allowed us to access these markets. Currently we are in Phase 3, where we are optimizing the markets we are participating in. So if some markets we are, you know, trying to uh put more product in and other markets. We are exiting. So that's that's the main reason why we are seeing reduced seasonality in this Supply and marketing line item. This will not

Mohit Bhardwaj: That's, that's the main reason why we are seeing reduced seasonality in this supply and marketing line item. This will not avoid the seasonality completely, but we are trying to reduce the impact of that seasonality. Market is going to help us as well. If you look at what's happening later this year, Magellan is going to bring its pipeline online, which is going to start clearing the group and put more products into PADD 4. Once these West Coast pipelines come online, you know, those West Coast barrels will be supplied by the group and the Midcontinent. The market's also helping us, is going to help us, not helping us currently, but is going to help us as these pipelines come online.

Hey Jason, how are you? Good to hear from you. As far as supply and marketing is concerned, I think I talked about this last quarter as well. So, the two specific businesses which are part of supply and marketing are wholesale and asphalt, and we're making great progress in both, especially as it comes to wholesale. We have been improving the business in three phases. The first phase was to have the right products available to supply the markets that we are serving. The second has been contract renegotiations and increased logistics, which has allowed us to access these markets. Currently, we are in phase three, where we are optimizing the markets we are participating in. So, in some markets we are, you know, trying to put more product in, and in other markets we are exiting. So that's the main reason why we are seeing—

Avoid the seasonality completely. But we are trying to reduce the impact of that seasonality and and in Market is going to help us as well. So if you look at what's happening uh later this year melan is going to bring uh its pipeline online which is going to clear. Start clearing the group and put more products into bad for and uh once these West Coast pipelines come online you know those West Coast barrels will be supplied by the group and the Mid-Continent. So the markets also helping us uh, is going to help us not helping us currently, but this is going to help us as these pipelines come online. So, we are very excited about the steps. We are taking, and we'll take, uh, if the market also starts to help us, we'll definitely take that too.

Mohit Bhardwaj: We are very excited about the steps we are taking, and we'll take, if the market also starts to help us, we'll definitely take that, too.

Yeah, thanks. I I appreciate the details. The question was more about, not the wholesaler or asphalt, but the third part of that supplier and marketing business, which has been, I think about $50 million for a couple consecutive quarters. And I was wondering if you think that's a good uh, rate moving forward or or expected to be kind of volatile, quarter to quarter,

Mohit Bhardwaj: We are very excited about the steps we are taking, and we'll take, if the market also starts to help us, we'll definitely take that, too.

Reduced seasonality in this Supply and marketing line item. This will not avoid the seasonality completely. But we are trying to reduce the impact of that seasonality and and in Market is going to help us as well. So if you look at what's happening uh later this year melan is going to bring uh its pipeline online which is going to clear. Start clearing the group and put more products into padd 4 and uh once these West Coast pipelines come online you know those West Coast barrels will be supplied by the group and the mid continents. So the markets also helping us uh is going to help us not helping us currently, but this is going to help us as these pipelines come online. So, we are very excited about the steps. We are taking, and we'll take, uh, if the market also starts to help us, we'll definitely take that too.

Jason Gabelman: Yeah, thanks. I appreciate the detail. The question was more about not the wholesale or asphalt, but the third part of that supply and marketing business, which has been, I think, about $50 million for a couple of consecutive quarters. I was wondering if you think that's a good rate moving forward, or you expect it to be kind of volatile quarter-to-quarter?

Yeah, Jason. So we did call out a 43 million 1-time impact for the last quarter. That's for 3 Q. This quarter that line item is more in line with what, you know, we expect. But there would be some volatility in that line item, but that's not a reflection of the core business. So I just wanted to focus on what our Core Business is, and where most of the improvements are coming. And if you want to talk more about this, we can take it offline, okay?

Mohit Bhardwaj: Yeah, Jason. We did call out a $43 million one-time impact for the last quarter. That's for Q3. This quarter, that line item is more in line with what, you know, we expect. There would be some volatility in that line item, but that's not a reflection of the core business. I just wanted to focus on what our core business is and where most of the improvements are coming. If you wanna talk more about this-

Or expected to be kind of volatile, quarter to quarter.

Jason Gabelman: Okay.

Mohit Bhardwaj: We can take it offline.

Jason Gabelman: All right, great. My follow-up is on DKL and the transactions. You announced this morning, which were, I think, about $85 million. Wondering what the EBITDA contribution is going to be from those, you know, the structure of the deal between cash and perhaps units, and, you know, why the second part of the deal is closing in October 2027?

Yeah, Jason. So we did call out a $43 million one-time impact for the last quarter. That's for Q3. This quarter, that line item is more in line with what, you know, we expect. But there would be some volatility in that line item, but that's not a reflection of the core business. So I just wanted to focus on what our core business is, and where most of the improvements are coming. And if you want to talk more about this, we can take it offline, okay?

All right, great. Um, my follow-up is on dkl and the truth. Uh, the transactions you announced this morning which were uh, I think about 85 million. Um wondering what the IBA contribution is going to be from those, um, you know, um, the, the structure of the deal between cash and and perhaps units. Um, and um, and you know why the second part of the deal is, is closing in October 2027,

Avigal Soreq: Yeah. Robert, do you want to take it?

All right, great. Um, my follow-up is on DKL and the Truth. Uh, the transactions you announced this morning, which were, uh, I think about $85 million. Um, wondering what the EBITDA contribution is going to be from those, um, you know, um, the structure of the deal between cash and perhaps units. Um, and, um, and you know why the second part of the deal is closing in October 2027.

Robert Wright: Yeah, sure. Thanks. Great question. You know, what we really completed here was furthering the economic separation of the two public companies. DKL now has 82% of their EBITDA on a third-party basis. What really got accomplished here was DK materially is complete with putting the right assets under the right roof. Really at a high level, these transactions from an EBITDA perspective are not material. I think, you know, and I guess the other piece of your question was the timing, and we've kind of laid out the two timing. That's really to phase in the cash flows between the two parties.

Yeah, absolutely. What would you want to take it? Yeah, sure. Thanks, great question. Um, you know what, we really completed here was furthering the economic separation of the 2, the 2, uh, public companies, uh, dkl. Now has 82% of their ibida on the third party basis. Um, but what really got accomplished here was DK materially, uh, is complete with putting, uh, the right assets under the right roof. And, and really at a, at a high level. These transactions from an Eva perspective are not not Material. Um, and uh, uh, so I, I think, you know, and I guess the other piece of your question was the timing and uh, we've kind of laid out the 2 timing. That's really the phase in um uh phase in the cash flows between the 2 parties.

Okay, I'll leave it there. Thanks.

Your next question comes from the line of Ryan. Todd of Piper Sandler. Your line is open.

Great, thanks. Uh, good morning and congrats on the result. Um, maybe just uh,

Yeah, absolutely. What would you want to take it? Yeah, sure. Thanks, great question. Um, you know what, we really completed here was further in the economic separation of the 2, the 2, uh, public companies, uh, dkl. Now has 82% of their ibida on the third party basis. Um, but what really got accomplished here was DK materially, uh, is complete with putting, uh, the right assets under the right roof. And, and really at a, at a high level. These transactions from an Eva perspective are not not Material. Um, and uh, uh, so I think

You know, and I guess the other piece of your question was the timing, and I kind of laid out the two timings. That's really the phase-in—the phase-in of the cash flows between the two parties.

Jason Gabelman: Okay. I'll leave it there. Thanks.

Okay, I'll leave it there. Thanks.

Operator: Your next question comes from the line of Ryan Todd of Piper Sandler. Your line is open.

Avigal Soreq: Hey, Ryan. Welcome.

Your next question comes from the line of Ryan Todd of Piper Sandler. Your line is open.

Hey, Ryan. Welcome.

Ryan Todd: Great, thanks. Good morning, and congrats on the result. Maybe just a question. I know you've touched on this and some of the things already, but obviously, margin capture was very strong across multiple regions. I know some of that you've highlighted and to some degree in terms of EOP drivers, but can you talk about, you know, what has gone well, what and how you see that sustainably going forward in terms of, you know, what may have been structural drivers versus what may have been some transient impacts and what you see in terms of margin capture going forward?

Virtual driver is a very says, what may have been some transient impacts and um what you see in terms of margin capture going forward?

Great, thanks. Uh, good morning and congrats on the result. Um, maybe just, uh,

Yeah, so I think that what you see is our strategy coming into a reflection in the results. That's the essence of that.

Avigal Soreq: Yeah. I think that what you see is our strategy coming into a reflection in the results. That's the essence of that. Our strategy, there is a big component for a safe and reliable operation and EOP. In order to have the right capture, you need three legs, right? You need a safe and reliable operation, you need very strong commercial activity led by our Chief Commercial Officer, Ismail, that is here with us today, and you need a strong EOP. The combination of those three together improve the capture over time. We are very proud of the results. You can see both in Tyler and KSR post turnaround, you see a meaningful improvement in capture, and that's something that we are very proud of, post-turnaround improvement before plan. Mohit, you wanna chime in?

A question. I know you've touched on this. Um, and and some of the things already been obviously margin capture was was very strong across multiple regions. Um, I know some of that you've highlighted and to some degree in terms of EOP drivers, but can you can you talk about you know what has gone. Well what uh and and how you see that sustainably going forward in terms of uh you know what what may have been structural drivers versus what? May have been some transient impacts and um what you see in terms of margin capture going forward?

And our strategy, there is a big component for safe and reliable operation and EOP. So in order to have the right capture, you need 3 legs, right? You need the safe and reliable operation. You need very strong commercial activity. Led by our chief commercial officer Ishmael. This is here with us today and you need a strong EOP. The combination of those 3 together improve. The capture over time, we are very proud of the results. You can see both the entire nkr post turn around. You see a meaningful Improvement in capture and that's something that we are very proud of post turnaround Improvement there before.

Yeah. So I think what you see is our strategy coming into a reflection in the results. That's the essence of that, and our strategy—there is a big component for a safe and reliable operation and EOP. So, in order to have the right capture, you need three legs, right? You need the safe and reliable operation. You need a very strong commercial activity, led by our Chief Commercial Officer, Ishmael, that is here with us today. And you need a strong EOP. The combination of those three.

We want to chime in. Yeah, and, and avoid it out EOP as the reason for it. And because of EOP, we've been able to, uh, you know, produce more high octane products, and sell them all year round, so, that is helping as well. We also have a very high desktop deal, which helped and we have increased, our total liquid volume yield.

which is also part of our Enterprise optimization plan and that is showing results in our capture

Great. Thank you. That that's all for me.

Thank you.

Together, we improved the capture of the time. We are very proud of the results. You can see both entire NKS Post 10, and you see meaningful improvement in capture. And that's something that we are very proud of, a poster turnaround improving before.

Mohit Bhardwaj: Avigal, you rightly pointed out EOP as the reason for it, and because of EOP, we've been able to, you know, produce more high-octane products and sell them all year round, so that is helping as well. We also have a very high display deal, which helped, and we have increased our total liquid volume yield, which is also part of our Enterprise Optimization Plan, and that is showing results in our capture.

With no further questions. I'd like to pass it back to avigal for closing remarks.

You want to chime in? Yeah, and Avigal pointed out EOP as the reason for it, and because of EOP...

We've been able to, uh, you know, produce more high-octane products and sell them all year round, so that is helping as well. We also have a very high-density deal, which helped, and we have increased our total liquid volume yield, which is also part of our Enterprise Optimization Plan, and that is showing results in our capture.

Ryan Todd: Great, thank you. That's all for me.

Yeah, so I want to just say thank you for the team here that they did a very good job to our board of directors they that they help and guide us and lead us to our investor that like the story and stay with the story and most importantly to our great employees that make that company that great company. Thank you. And we talk again next question.

Avigal Soreq: Thank you.

Okay, thank you. That's all for me.

Thank you.

Operator: With no further questions, I'd like to pass it back to Avigal for closing remarks.

this concludes today's conference call, you may now disconnect

Avigal Soreq: I wanted to say thank you for the team here, that they did a very good job, to our board of directors, that help and guide us and lead us, to our investors, that like the story and stay with the story, and, most importantly, to our great employees that make the company that great company. Thank you, and we'll talk again next quarter.

With no further questions, I'd like to pass it back to Avigal for closing remarks.

Operator: This concludes today's conference call. You may now disconnect.

Yeah, so I want to just say thank you for the team here, that they did a very good job to our board of directors, that they help and guide us and lead us to our investor that like the story and stay with the story, and most importantly to our great employees that make that company that great company. Thank you. And we'll talk again next time.

This concludes today's conference call. You may now disconnect.

Q4 2025 Delek US Holdings Inc Earnings Call

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