Company: DK
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001694426-25-000060
Chunk: 225

Company: Delek US Holdings, Inc.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 1
Chunk 225
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 March 31, 2025 compared to the three months ended March 31, 2024. This increase was primarily driven by the following:

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

 This increase was partially offset by the following: 

•decreased costs of materials and other of $2.3 million in our West Texas marketing operations primarily driven by decreased costs per gallon, partially offset by an increase in gallons sold:

◦the average cost per gallon of gasoline and diesel sold decreased by $0.16 per gallon and $0.31 per gallon, respectively.

◦the average volumes of gasoline and diesel sold increased by 1.1 million and 1.7 million gallons, respectively.

Our logistics segment purchased product from our refining segment of $90.0 million and $92.9 million for the three months ended March 31, 2025 and 2024, respectively. We eliminate these intercompany costs in consolidation.

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Management's Discussion and Analysis

Operating Expenses

Operating expenses increased by $9.0 million, or 28.2%, in the three months ended March 31, 2025 compared to the three months ended March 31, 2024, primarily driven by the following:

•incremental costs associated with H2O Midstream Acquisition and Gravity Acquisition.

This increase was partially offset by the following: 

•a decrease in outside services. 

EBITDA

EBITDA decreased by $14.2 million, or 14.2%, in the three months ended March 31, 2025 compared to the three months ended March 31, 2024, primarily driven by the following:

•recording certain throughput and storage fees in interest income due to sales-type lease accounting that were previously recorded as revenue in prior year period; and

•decreased wholesale margins. 

These decreases were partially offset by the following: 

•incremental EBITDA  associated with H2O Midstream Acquisition and Gravity Acquisition.

55 |

Management's Discussion and Analysis

Liquidity and Capital Resources 

Sources of Capital  

Our primary sources of liquidity and capital resources are 

•cash generated from our operating activities; 

•borrowings under our debt facilities; and

•potential issuances of additional equity and debt securities. 

At March 31, 2025 our total liquidity amounted to $1,810.7 million comprised primarily of $1,186.9 million in unused credit commitments under our revolving