Company: DK
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001694426-25-000013
Chunk: 109

Company: Delek US Holdings, Inc.
Filing Date: 2025-02-26
Form: 10-K
Item: Item 1A
Chunk 109
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 margins would reduce our operating results and cash flows and could materially and adversely impact our future rate of growth and the carrying value of our assets. 

Our earnings, cash flow and profitability from our refining operations are substantially determined by the difference between the market price of refined products and the market price of crude oil, which often move independently of each other and are referred to as the crack spread, refining margin or refined products margin. Refining margins historically have been volatile, and we believe they will continue to be volatile.  Although we monitor our refinery operating margins and seek to optimize results by adjusting throughput volumes, throughput types and product slates, there are inherent limitations on our ability to offset the effects of adverse market conditions.

Many of the factors influencing changes in crack spreads and refining margins are beyond our control. These factors include: 

•changes in global and local economic conditions;

•domestic and foreign supply and demand for crude oil and refined products, including changes in the availability and cost of inputs from price inflation and supply chain disruptions;

•the level of foreign and domestic production of crude oil and refined petroleum products;

•changes in the rate of inflation (including the cost of raw materials, labor, commodities, and supplies) and interest rates;

•increased regulation of feedstock production activities, such as hydraulic fracturing;

•infrastructure limitations that restrict, or events that disrupt, the distribution of crude oil, other feedstocks and refined petroleum products;

•excess or overbuilt infrastructure;

•an increase or decrease of infrastructure limitations (or the perception that such an increase or decrease could occur) on the distribution of crude oil, other feedstocks or refined products;

•investor speculation in commodities;

•worldwide political conditions, particularly in significant oil producing regions such as the Middle East, Africa, the former Soviet Union and South America;

•the ability or inability of the members of OPEC to maintain oil price and production controls;

•pricing and other actions taken by competitors that impact the market;

•the level of crude oil, other feedstocks and refined petroleum products imported into and exported out of the U. S.;

•excess capacity and utilization rates of refineries worldwide;

•development and marketing of alternative and competing fuels, such as ethanol and biodiesel;

•changes in fuel specifications required by environmental and other laws, particularly with respect to oxygenates and sulfur content;

•local factors, including market conditions, adverse weather conditions and the level of operations of other refineries and pipelines in our markets;

•volatility in the costs of natural gas