Company: DK
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001694426-25-000112
Chunk: 243

Company: Delek US Holdings, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 8
Chunk 243
---
 million, or 20.2%. The net decrease in cost of materials and other was primarily driven by the following:

•decreases in cost of crude oil feedstocks at the refineries, including a 21.1% decrease in the average cost of WTI Cushing crude oil and a 21.2% decrease in the average cost of WTI Midland crude oil and a decrease in sales volume (including purchased products).

These decreases were partially offset by the following: 

•incremental costs associated with the H2O Midstream Acquisition and Gravity Acquisition; and

•an increase in RINs pricing.

50 |

Management's Discussion and Analysis

YTD 2025 vs. YTD 2024

Cost of materials and other was $4,814.5 million for the six months ended June 30, 2025, compared to $5,758.4 million for six months ended June 30, 2024, a decrease of $943.9 million, or 16.4%. The net decrease in cost of materials and other primarily related to the following:

•a decrease in the cost of crude oil feedstocks at the refineries, including a 14.4% decrease in the average cost of WTI Cushing crude oil and a 14.6% decrease in the average cost of WTI Midland crude oil and decreased sales volume (including purchased products).

These decreases were partially offset by the following: 

•incremental costs associated with the H2O Midstream Acquisition and Gravity Acquisition; and

•an increase in RINs pricing.

Operating Expenses

Q2 2025 vs. Q2 2024

Operating expenses (included in both cost of sales and other operating expenses) were $212.0 million for the second quarter of 2025 compared to $186.0 million for the second quarter of 2024, an increase of $26.0 million, or 14.0%. The increase in operating expenses was primarily driven by the following:

•an increase in natural gas costs;

•an increase in employee costs;

•an increase in maintenance costs; and

•incremental expenses associated with the H2O Midstream Acquisition and Gravity Acquisition.

These increases were partially offset by the following: 

•a decrease in insurance costs; and

•a decrease in lease and rental costs.

YTD 2025 vs. YTD 2024

Operating expenses (included in both cost of sales and other operating expenses) were $