Company: DK
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001628280-25-050541
Chunk: 152

Company: Delek US Holdings, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 2
Chunk 152
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igation and therefore a reduction within Cost of materials and other of approximately $280.8 million.

These decreases were partially offset by the following:

•an increase in sales volumes (including purchased products).

YTD 2025 vs. YTD 2024

Cost of materials and other decreased $1,677.8 million, or 19.0%, in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. This decrease was primarily driven by the following: 

•decreases in the cost of WTI Cushing crude oil, from an average of $77.72 per barrel to an average of $66.74, or 14.1%; and decreases in the cost of WTI Midland crude oil, from an average of $78.75 per barrel to an average of $67.52, or 14.3%; 

•a decrease in sales volumes (including purchased products); 

•small refinery exemptions received in the third quarter of 2025 resulting in a reduction of our Consolidated Net RINs Obligation and therefore a reduction within Cost of materials and other of approximately $280.8 million; and

•a decrease in lease expense as a result of reclassification of certain fees with Delek Logistics from lease expense to interest expense under finance lease accounting. These finance leases have no impact to the Delek US consolidated results as these amounts eliminate in consolidation.

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Management's Discussion and Analysis

Our refining segment purchases finished product from our logistics segment and has multiple service agreements with our logistics segment which, among other things, require the refining segment to pay terminalling and storage fees based on the throughput volume of crude and finished product in the logistics segment pipelines and the volume of crude and finished product stored in the logistics segment storage tanks, subject to minimum volume commitments. These costs and fees were $131.0 million and $111.3 million during the three months ended September 30, 2025 and 2024, respectively. These costs and fees were $370.9 million and $410.2 million during the nine months ended September 30, 2025 and 2024, respectively. We eliminate these intercompany fees in consolidation.

Operating Expenses

Q3 2025 vs. Q3 2024

Operating expenses increased by $14.0 million, or 9.7%, in the third quarter of 2025 compared to the third quarter of 2024, driven by the following: