Delek US Holdings, Inc.DK
Delek US Holdings, Inc. Segments Disclosure
Segment Data
Prior to July 2024, we aggregated our operating units into three reportable segments: Refining, Logistics and Retail. However, on July 31, 2024, Delek entered into the Retail Purchase Agreement to sell the Retail Stores, which consisted of the entire retail segment, to FEMSA. As a result of the Retail Purchase Agreement, we met the requirements of ASC 205-20 and ASC 360, to report the results of the Retail Stores as discontinued operations and to classify the Retail Stores as a group of discontinued operations assets. The Retail Transaction closed on September 30, 2024. Operations that are not specifically included in the reportable segments are included in Corporate, Other and Eliminations, which consist of the following:
•our corporate activities;
•results of certain immaterial operating segments, including our Canadian crude trading operations (as discussed in Note 12); and
•intercompany eliminations.
During the second quarter 2024, we realigned our reportable segments for financial reporting purposes to reflect changes in the manner in which our chief operating decision maker, or CODM, assesses financial information for decision-making purposes. The change represents reporting the operating results of our 50% interest in a joint venture that owns asphalt terminals located in the southwestern region of the U.S. within the refining segment. Prior to this change, these operating results were reported as part of corporate, other and eliminations. While this reporting change did not change our consolidated results, segment data for previous years has been restated and is consistent with the current year presentation throughout the financial statements and the accompanying notes.
On August 5, 2024, we contributed all of our 50% investment in W2W Holdings LLC ("HoldCo") which included our 15.6% indirect interest in the WWP joint venture and related joint venture indebtedness, to a subsidiary of Delek Logistics. The operating results of HoldCo are now reported in our Logistics segment. Previously, they were reported as part of corporate, other and eliminations.
The disaggregated financial results for the reporting segments have been prepared using a management approach, which is consistent with the basis and manner in which management internally disaggregates financial information for the purposes of assisting internal operating decisions. The Company defines its segments based on how internally reported information is regularly reviewed by its CODM to analyze financial performance, make decisions and allocate resources. The CODM is a combination of the chief executive officer and chairman of the board of directors. The CODM evaluates performance based upon EBITDA attributable to Delek. The CODM considers budget to actual variances on a monthly basis when making decisions about the allocation of operating and capital resources to each segment. EBITDA attributable to Delek is an important measure used by management to evaluate the financial performance of our core operations. As of the fourth quarter of 2025, we define EBITDA attributable to Delek for any period as net income (loss) attributable to Delek plus interest expense, income tax expense (benefit), depreciation, amortization, and proportional interest, taxes, depreciation and amortization of equity method investments. Segment EBITDA should not be considered a substitute for results prepared in accordance with U.S. GAAP and should not be considered alternatives to net income (loss), which is the most directly comparable financial measure to EBITDA that is in accordance with U.S. GAAP. Segment EBITDA, as determined and measured by us, should also not be compared to similarly titled measures reported by other companies.
Assets by segment are not a measure used to assess the performance of the Company by the CODM and thus are not disclosed.
Refining Segment
The refining segment processes crude oil and other feedstocks for the manufacture of transportation motor fuels, including various grades of gasoline, diesel fuel and aviation fuel, asphalt and other petroleum-based products that are distributed through owned and third-party product terminals. The refining segment includes the following:
•Tyler, Texas refinery (the "Tyler refinery");
•El Dorado, Arkansas refinery (the "El Dorado refinery");
•Big Spring, Texas refinery (the "Big Spring refinery"); and
•Krotz Springs, Louisiana refinery (the "Krotz Springs refinery").
As of December 31, 2025, the refining segment also owns three biodiesel facilities involved in the production of biodiesel fuels and related activities, located in Crossett, Arkansas, Cleburne, Texas and New Albany, Mississippi. During the second quarter of 2024, we made the decision to idle the biodiesel facilities, while exploring viable and sustainable alternatives. See Note 20 for further information. In addition, the refining segment includes our wholesale crude operations and our 50% interest in a joint venture that owns asphalt terminals located in the southwestern region of the U.S.
The refining segment's petroleum-based products are marketed primarily in the south central and southwestern regions of the United States. This segment also ships and sells gasoline into wholesale markets in the southern and eastern United States. In addition, the segment sells motor fuels through its wholesale distribution network on an unbranded basis.
Logistics Segment
Our logistics segment owns and operates crude oil, refined products and natural gas logistics and marketing assets as well as water disposal and recycling assets. The logistics segment generates revenue by charging fees for gathering, transporting and storing crude oil and natural gas, marketing, distributing, transporting and storing intermediate and refined products and disposing and recycling water in select regions of the southern United States, the Midland Basin in Texas, the Delaware Basin in New Mexico and West Texas for our refining segment and third parties, and sales of wholesale products in the West Texas market. The operating results and assets acquired in the H2O Midstream Acquisition have been included in the logistics segment beginning on September 11, 2024. The operating results and assets acquired in the Gravity Acquisition have been included in the logistics segment beginning on January 2, 2025.
Significant Inter-segment Transactions
All inter-segment transactions have been eliminated in consolidation and consists primarily of the following:
•logistics segment service fee revenue under service agreements with the refining segment based on the number of gallons sold and to share a portion of the margin achieved in return for providing marketing, sales and customer services;
•logistics segment sales of wholesale finished product to our refining segment; and
•logistics segment crude transportation, terminalling and storage fee revenue from our refining segment for the utilization of pipeline, terminal and storage assets.
Business Segment Operating Performance
The following is a summary of business segment operating performance as measured by EBITDA attributable to Delek for the year ended indicated (in millions):
| Year Ended December 31, 2025 | ||||||||||||||||||||||||||
| (In millions) | Refining | Logistics | Total | |||||||||||||||||||||||
| Net revenues (excluding intercompany fees and revenues) | $ | 10,209.1 | $ | 513.8 | $ | 10,722.9 | ||||||||||||||||||||
| Inter-segment fees and revenues | 342.2 | 499.5 | 841.7 | |||||||||||||||||||||||
| Total segment revenues | $ | 10,551.3 | $ | 1,013.3 | $ | 11,564.6 | ||||||||||||||||||||
| Elimination of inter-segment revenue | (841.7) | |||||||||||||||||||||||||
| Total consolidated revenues | $ | 10,722.9 | ||||||||||||||||||||||||
| Cost of materials and other | 9,157.4 | 509.3 | ||||||||||||||||||||||||
| Operating expenses | 614.6 | 168.4 | ||||||||||||||||||||||||
| General and administrative expenses | 13.6 | 28.6 | ||||||||||||||||||||||||
| Proportional EBITDA of equity-method investments | (30.7) | (88.1) | ||||||||||||||||||||||||
Other segment items(3) | (7.0) | (0.5) | ||||||||||||||||||||||||
| Segment EBITDA attributable to Delek | $ | 803.4 | $ | 395.6 | $ | 1,199.0 | ||||||||||||||||||||
| Reconciling items to net loss attributable to Delek | ||||||||||||||||||||||||||
Corporate expenses, eliminations and other (1) | 456.5 | |||||||||||||||||||||||||
| Proportional interest, taxes, depreciation and amortization of equity-method investments | 29.0 | |||||||||||||||||||||||||
| Depreciation and amortization | 397.8 | |||||||||||||||||||||||||
| Interest expense, net | 345.3 | |||||||||||||||||||||||||
| Income tax benefit | (6.8) | |||||||||||||||||||||||||
| Net loss attributable to Delek | $ | (22.8) | ||||||||||||||||||||||||
| Year Ended December 31, 2025 | ||||||||||||||||||||||||||
| Refining | Logistics | Corporate, Other and Eliminations | Consolidated | |||||||||||||||||||||||
| Depreciation and amortization | $ | 270.0 | $ | 138.0 | $ | (10.2) | $ | 397.8 | ||||||||||||||||||
| Interest expense, net | $ | 182.6 | $ | 66.8 | $ | 95.9 | $ | 345.3 | ||||||||||||||||||
| Income from equity method investments | $ | (28.0) | $ | (61.8) | $ | 0.3 | $ | (89.5) | ||||||||||||||||||
Capital spending (excluding business combinations) (2) | $ | 215.6 | $ | 274.4 | $ | 31.7 | $ | 521.7 | ||||||||||||||||||
| Year Ended December 31, 2024 | ||||||||||||||||||||||||||
| (In millions) | Refining | Logistics | Total | |||||||||||||||||||||||
| Net revenues (excluding intercompany fees and revenues) | $ | 11,142.4 | $ | 422.8 | $ | 11,565.2 | ||||||||||||||||||||
| Inter-segment fees and revenues | 640.6 | 517.8 | 1,158.4 | |||||||||||||||||||||||
| Total segment revenues | $ | 11,783.0 | $ | 940.6 | $ | 12,723.6 | ||||||||||||||||||||
| Elimination of inter-segment revenue | (871.4) | |||||||||||||||||||||||||
| Total consolidated revenues | $ | 11,852.2 | ||||||||||||||||||||||||
| Cost of materials and other | 11,147.4 | 483.7 | ||||||||||||||||||||||||
| Operating expenses | 596.6 | 122.7 | ||||||||||||||||||||||||
| General and administrative expenses | 15.2 | 36.0 | ||||||||||||||||||||||||
| Proportional EBITDA of equity-method investments | (32.9) | (59.1) | ||||||||||||||||||||||||
Other segment items(3)(4) | 213.0 | (1.2) | ||||||||||||||||||||||||
| Segment EBITDA attributable to Delek | $ | (156.3) | $ | 358.5 | $ | 202.2 | ||||||||||||||||||||
| Reconciling items to net loss attributable to Delek | ||||||||||||||||||||||||||
Corporate expenses, eliminations and other (1) | 165.5 | |||||||||||||||||||||||||
| Proportional interest, taxes, depreciation and amortization of equity-method investments | 17.5 | |||||||||||||||||||||||||
| Depreciation and amortization | 374.5 | |||||||||||||||||||||||||
| Interest expense, net | 313.0 | |||||||||||||||||||||||||
| Income tax benefit | (107.9) | |||||||||||||||||||||||||
| Net loss attributable to Delek | $ | (560.4) | ||||||||||||||||||||||||
| Year Ended December 31, 2024 | ||||||||||||||||||||||||||
| Refining | Logistics | Corporate, Other and Eliminations | Consolidated | |||||||||||||||||||||||
| Depreciation and amortization | $ | 265.5 | $ | 102.8 | $ | 6.2 | $ | 374.5 | ||||||||||||||||||
| Interest expense, net | $ | 81.4 | $ | 103.1 | $ | 128.5 | $ | 313.0 | ||||||||||||||||||
| Income from equity method investments | $ | (31.2) | $ | (43.3) | $ | (17.7) | $ | (92.2) | ||||||||||||||||||
Capital spending (excluding business combinations) (2) | $ | 266.1 | $ | 140.0 | $ | 26.6 | $ | 432.7 | ||||||||||||||||||
| Year Ended December 31, 2023 | ||||||||||||||||||||||||||
| (In millions) | Refining | Logistics | Total | |||||||||||||||||||||||
| Net revenues (excluding intercompany fees and revenues) | $ | 15,578.1 | $ | 456.6 | $ | 16,034.7 | ||||||||||||||||||||
| Inter-segment fees and revenues | 828.8 | 563.8 | 1,392.6 | |||||||||||||||||||||||
| Total segment revenues | $ | 16,406.9 | $ | 1,020.4 | $ | 17,427.3 | ||||||||||||||||||||
| Elimination of inter-segment revenue | (960.1) | |||||||||||||||||||||||||
| Total consolidated revenues | $ | 16,467.2 | ||||||||||||||||||||||||
| Cost of materials and other | 15,242.3 | 532.6 | ||||||||||||||||||||||||
| Operating expenses | 619.2 | 118.1 | ||||||||||||||||||||||||
| General and administrative expenses | 31.2 | 24.8 | ||||||||||||||||||||||||
| Proportional EBITDA of equity-method investments | (33.8) | (38.2) | ||||||||||||||||||||||||
Other segment items(3)(4) | (14.6) | 13.3 | ||||||||||||||||||||||||
| Segment EBITDA attributable to Delek | $ | 562.6 | $ | 369.8 | $ | 932.4 | ||||||||||||||||||||
| Reconciling items to net income attributable to Delek | ||||||||||||||||||||||||||
Corporate expenses, eliminations and other (1) | 249.4 | |||||||||||||||||||||||||
| Proportional interest, taxes, depreciation and amortization of equity-method investments | 8.7 | |||||||||||||||||||||||||
| Depreciation and amortization | 339.5 | |||||||||||||||||||||||||
| Interest expense, net | 318.0 | |||||||||||||||||||||||||
| Income tax benefit | (3.0) | |||||||||||||||||||||||||
| Net income attributable to Delek | $ | 19.8 | ||||||||||||||||||||||||
| Year Ended December 31, 2023 | ||||||||||||||||||||||||||
| Refining | Logistics | Corporate, Other and Eliminations | Consolidated | |||||||||||||||||||||||
| Depreciation and amortization | $ | 234.2 | $ | 92.4 | $ | 12.9 | $ | 339.5 | ||||||||||||||||||
| Interest expense, net | $ | 42.3 | $ | 143.2 | $ | 132.5 | $ | 318.0 | ||||||||||||||||||
| Income from equity method investments | $ | (31.9) | $ | (31.4) | $ | (22.9) | $ | (86.2) | ||||||||||||||||||
Capital spending (2) | $ | 246.9 | $ | 81.3 | $ | 31.1 | $ | 359.3 | ||||||||||||||||||
(1) Corporate expenses, eliminations and other represents corporate costs that are not allocated to the operating segments, inter-segment cost eliminations, and other unallocated shared service functions. “Corporate expenses, eliminations and other” are included in the tables above to reconcile total Segment EBITDA attributable to Delek to the Company’s net (loss) income attributable to Delek.
(2) Capital spending includes additions on an accrual basis. Capital spending excludes capital spending associated with the Retail Stores of $14.0 million and $29.8 million during the years ended December 31, 2024 and 2023, respectively.
(3) Other segment items include insurance proceeds, asset impairment, other operating (income) expense, net, and other (income) expense, net.
(4) For the year ended December 31, 2024, includes a $212.2 million goodwill impairment charge and a $22.1 million impairment charge related to the idling of the biodiesel facilities for the Refining segment and a $9.2 million impairment charge related to certain pipeline assets for Corporate, Other and Eliminations. For the year ended December 31, 2023, includes a $23.1 million right-of-use asset impairment charge for Corporate, Other and Eliminations and a $14.8 million goodwill impairment charge for the Logistics segment. Refer to Note 17 - Goodwill and Intangible Assets and Note 20 - Restructuring and Other Charges for further information.
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.