Company: DK
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001628280-25-050541
Chunk: 16

Company: Delek US Holdings, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 16
---
 estimated purchase price (in millions): Base purchase price:$230.0 Less: Adjusted Net Working Capital (as defined in the H2O Purchase Agreement)(2.6)Plus: Various closing adjustments2.3 Adjusted purchase price$229.7 Cash paid159.7 Fair value of Preferred Units issued70.0 Preliminary purchase price$229.7 

12 |

Notes to Condensed Consolidated Financial Statements (unaudited)

Purchase Price Allocation The following table summarizes the final fair values of assets acquired and liabilities assumed in the H2O Midstream Acquisition as of September 11, 2024 (in millions):Assets acquired:Accounts receivables$6.7 Inventories2.4 Other current assets0.9 Property, plant and equipment172.3 Operating lease right-of-use assets2.1 Other intangibles (1)59.5 Total assets acquired243.9 Liabilities assumed:Accounts payable1.8 Accrued expenses and other current liabilities7.0 Current portion of operating lease liabilities0.3 Asset retirement obligations4.9 Operating lease liabilities, net of current portion0.2 Total liabilities assumed14.2 Fair value of net assets acquired$229.7 (1)The acquired intangible assets amount includes the following identified intangibles:•Customer relationship intangible that is subject to amortization with a preliminary fair value of $26.3 million, which will be amortized over a 13.4 years useful life. •Rights-of-way intangibles are valued at $28.5 million, which have an indefinite life.•Favorable supply contract intangible that is subject to amortization with a preliminary fair value of $4.8 million, which will be amortized over a 4.8 years useful life. There have been no significant adjustments to the preliminary purchase price allocation during the three and nine months ended September 30, 2025.The fair value of property, plant and equipment was based on the combination of the cost and market approaches. Key assumptions in the cost approach include determining the replacement cost by evaluating recently published data and adjusting replacement cost for physical deterioration, functional and economic obsolescence. We used the market approach to measure the value of certain assets through an analysis of recent sales or offerings of comparable properties.The fair value of customer relationships was based on the income approach. Key assumptions in the income approach include projected revenue attributable to customer relationships, attr