Delek Holdings 2Q26 Flash

Research evidence excerpt

J P M O R G A N

North America Equity Research

05 August 2026

Delek Holdings

2Q26 Flash

Neutral

DK, DK US

Price (04 Aug 26):$66.20

Oil & Gas Exploration & Production

JPM View. DK reported a 2Q EPS/EBITDA beat driven by refining, reflecting a

sharply higher margin environment (benchmark crack spreads up an average of

136.0% y/y), high throughput, and limited turnaround activity following

completion of the Big Spring turnaround in 1Q. Adjusted EBITDA (ex-SRE) was

$490.1 MM (JPMe: $405 MM; Street: $429 MM) and adjusted EPS (ex-SRE) was

$3.64 (JPMe: $2.63; Street: $2.84). DK recognized a $148.6 MM benefit due to

SREs in its EBITDA results during 2Q. By segment, refining EBITDA was $417.6

MM (ex-SRE) versus JPMe $321 MM, logistics was $143.5 MM (JPMe: $136

MM), and corporate was $(71.0) MM (JPMe: $(52) MM). Management reaffirmed

at least $220 MM of annual FCF improvement from its Enterprise Optimization

Plan (EOP) and highlighted its peer-leading distillate/jet yield, access to

advantaged inland crude, improving Big Spring reliability, and no remaining

planned turnarounds for 2026 as supportive of FCF generation.

Arun Jayaram AC

(1-212) 622-8541

Kartikey H Pandey

(1-212) 622-5006

J.P. Morgan Securities LLC

Refining crude throughput was ~303 Mb/d and total throughput was ~316 Mb/d

(JPMe: 308; STe: 316), with crude utilization of 100%. Refining production

margin was $19.84 per bbl (JPMe: $16.59; STe: $17.46) and total refining opex

was $5.32 per bbl, in line with JPMe. All four refineries beat on production margin,

led by Tyler at $23.30 per bbl and Big Spring at $20.47 per bbl. CFO came in at

$262.9 MM (JPMe: $278 MM), including a $(137.9) MM working capital

headwind, with CFO before working capital of $400.8 MM. Assuming ~$176.2

MM in capex for the quarter, FCF was $86.7 MM (JPMe: $200 MM; STe: $213

MM), and DK repurchased $20.0 MM of stock, paid $15.6 MM of dividends, and

ended with cash of $628.6 MM and consolidated net debt of ~$2.561 B.

3Q guidance. DK guided 3Q crude throughput to 284-304 Mb/d and total

throughput to 296-316 Mb/d (Tyler 72-77 Mb/d, El Dorado 78-83 Mb/d, Big

Spring 68-73 Mb/d, Krotz Springs 78-83 Mb/d), with opex of $220-230 MM,

…