Introduction
Table of Contents
Delek US Holdings is an independent downstream energy company with assets in petroleum refining, logistics, asphalt, renewable fuels and convenience store retailing.
Delek US Holdings is an independent downstream energy company with assets in petroleum refining, logistics, asphalt, renewable fuels and convenience store retailing.
Delek US Holdings is an independent downstream energy company with assets in petroleum refining, logistics, asphalt and renewable fuels. The company has a strong focus on customer service and community involvement.
Delek US Holdings operates more than 6,000 convenience stores throughout the United States under various banners including Flying J Travel Plazas and Kum & Go C-Stores.
The refining segment consists of refineries operated in Tyler and Big Spring, Texas, El Dorado, Arkansas and Krotz Springs, Louisiana with a combined nameplate production capacity of 303,000 barrels per day.
The refining segment consists of refineries operated in Tyler and Big Spring, Texas, El Dorado, Arkansas and Krotz Springs, Louisiana with a combined nameplate production capacity of 303,000 barrels per day. This segment also includes an attached pipeline to transport refined products (the “Charlie Pipeline”).
The Company’s retail segment includes convenience stores primarily located along the East Coast of the United States. The Company also owns a non-controlling interest in JLS Energy Group LLC (“JLS”) which operates a system of convenience stores under the name “(our brand) C Store” throughout Puerto Rico.
Asphalt operations include asphalt terminals in seven states, a Houston refinery and barge transportation assets.
Delek US Holdings, Inc. (DELEK) is an independent downstream energy company with assets in petroleum refining, logistics, asphalt, renewable fuels and convenience store retailing. It operates through three segments: Refining & Marketing; Logistics & Energy Services; Asphalt Operations. The Refining & Marketing segment owns and operates two refineries located in El Dorado and Wynnewood, Oklahoma; a refinery located on property leased from the third-party tenant at Westlake Chemical’s facility in Calvert City, Kentucky; an asphalt terminal located at its Wynnewood refinery site; a refined products terminal located at its El Dorado refinery site; plus barge transportation assets under the “Delek Marine” brand name that include barges used to transport refined products between Texas and Louisiana ports on the Gulf of Mexico as well as elevating olefins produced by ethylene crackers along the Mississippi River Valley corridor to markets beyond those accessible via pipelines or other conventional modes of transportation. The Logistics & Energy Services segment operates a fleet of tank trucks that deliver diesel fuel directly into storage tanks located within retail fueling stations operated by third parties throughout nine states under their respective brands (“Marathon,” “Mobil,” etc.).
The logistics segment primarily consists of Delek Logistics Partners LP (NYSE:DKL), Delek’s publicly traded master limited partnership.
The logistics segment primarily consists of Delek Logistics Partners LP (NYSE:DKL), Delek’s publicly traded master limited partnership.
Delek Logistics Partners LP (NYSE:DKL) is a master limited partnership that operates as a downstream energy logistics company in the United States. It provides pipeline transportation, railcar storage and management services, bulk storage and terminal operations for its NGLs business unit; fleet management services for its propane business unit; trucking services for its crude oil and refined products businesses units; and marine transportation services for its petrochemical businesses unit. The company was formerly known as Delek US Holdings Inc. until May 22, 2019 when it changed its name to Delek Logistics Partners LP.
The convenience store retailing business includes the MAPCO Express®, MAPCO Mart®, East Coast®, Fast Food and FuelTM, Favorite MarketsTM and Delta ExpressTM brands with 544 company-operated stores and 287 dealer or agent operated stores located in Alabama, Arkansas, Georgia, Kentucky, Mississippi, Tennessee and Virginia.
Pro Forma Recapitalization Transaction
On October 26, 2017 Delek announced that all necessary regulatory approvals had been received to complete the Company’s previously announced pro forma recapitalization transaction involving Delek US Holdings (the “Company”). The completion of the Pro Forma Recapitalization Transaction follows receipt of the requisite approval from holders of a majority in interest of each class of outstanding debt securities issued by Delek US Holdings, LLC and its subsidiaries.
As previously disclosed, in connection with the Pro Forma Recapitalization Transaction, on November 1, 2017:
- Delek Holdco Inc. (“Newco”) became an indirect wholly owned subsidiary of New Parent Holding Company LLC (“Parent”);
- Parent merged with and into Delek Holdco Inc., such that after giving effect thereto: (i) Newco became an indirect wholly owned subsidiary of Parent; (ii) Delek Group Ltd., together with its subsidiaries other than Newco, were merged into New Parent Holding Company LLC (“Parent”), so that after giving effect thereto: (A) Delek Group Ltd. ceased to exist; and (B) Parent became an indirect wholly owned subsidiary of New Co.;
On October 26, 2017 Delek announced that all necessary regulatory approvals had been received to complete the Company’s previously announced pro forma recapitalization transaction involving Delek US Holdings (the “Company”). This action became effective on November 6th as a result of the approval vote from stockholders during the special meeting held on October 31st.
Delek US Holdings is a holding company created by Delek Group following the completion of its merger with Marathon Petroleum Corporation in 2016. The transaction resulted in Delek Group holding a 100% interest in the new entity and named it as Delek US Holdings. The company was formed through a spinoff of assets owned by the company including retail, refining and marketing operations among other things.
The main reason behind the formation of this new entity was to allow for greater focus on business opportunities within the United States which are considered to be more successful compared to those outside of America’s borders. This move was also meant to create an operational efficiency between these two entities within one group as well as achieve better performance under their management frameworks and policies without any interference from foreign governments or regulatory agencies such as environmental authorities who might not understand their operations fully enough due to cultural differences between them and their counterparts overseas (mostly Europe).
Conclusion
We believe that Delek US Holdings is a company with significant opportunity for growth, and we are confident in its future.
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