$DK

RIN Market Slides on Weaker BOHO Spread, Higher June Supply

The Renewable Identification Numbers market fell sharply on Wednesday as a weakening BOHO spread, the price differential between soybean oil and heating oil, or diesel, and higher RIN generation in June weighed on RIN values.On Wednesday, the August BOHO spread narrowed to $0.88 per gallon compared with $2.24/gal a month ago, prompting another heavy sell-off in RINs, according to Zander Capozzola, principal consultant at Argus Media.The BOHO spread, which has fallen to its lowest level since early April, has been driven by soybean oil prices declining faster than diesel prices that have strengthened.Higher RIN generation has also added pressure to the market. "RIN supply for 2026 has loosened a little following the surprise June RIN generation numbers," Capozzola told."This will leave the RIN bank with a slightly higher positive year-end balance, yet the market still widely acknowledges that the bank goes negative in 2027," he added.Total gross RIN generation increased to the equivalent of 2.27 billion credits in June, up from 2.14 billion in May and 2.01 billion a year earlier.Another factor pressuring RIN prices is the Environmental Protection Agency's indication that it intends to decide next week on outstanding 2024 small refinery exemption requests from HF Sinclair (DINO) and Delek (DK) after the companies filed an emergency motion, Capozzola said.SRE news is always bearish for the RIN complex, the analyst added.Alon Refining and HF Sinclair filed an emergency motion with the US Court of Appeals for the DC Circuit on July 24, asking the court to order the US EPA to issue decisions on their outstanding compliance year 2024 SRE petitions by Aug. 11, according to the Governor's Biofuels Coalition."The market fear is out there that the EPA could potentially release wider SRE decisions for 2025 during August ahead of the Sept. 1, 2025 compliance deadline," Capozzola said.Price: $90.16, Change: $+0.86, Percent Change: +0.96%

Delek US Keeps Quarterly Dividend at $0.255 a Share, Payable Aug. 10 to Holders of Record Aug. 3

BofA Securities Adjusts Price Target on Delek US Holdings to $50 From $34

Delek US Holdings (DK) has an average rating of overweight and mean price target of $60.58, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://finwires.com/en/contact)

Refining Boom Returns as Geopolitical Tensions Push Fuel Profits to Multi-Year Highs, TPH Says

US refiners are on track to report one of their strongest quarters in years as geopolitical disruptions drove fuel margins sharply higher, TPH Energy Research analyst Matthew Blair said in a note on Wednesday.Average Q2 2026 earnings per share are projected at $6.53, above the consensus estimate of $6.20 and up from $0.59 in Q1.Blair said the quarter is shaping up to be the industry's most profitable since market disruptions following Russia's invasion of Ukraine in 2022.Global refining runs fell to an estimated 78 million barrels per day in Q2 from 83 million b/d in Q1, reflecting the closure of the Strait of Hormuz and increased Ukrainian drone attacks on Russian refineries.Tighter supply pushed US gasoline crack spreads to an average of $25/bbl in the quarter, up from $9/bbl in Q1 and $16/bbl a year earlier.Diesel crack spreads climbed to $45/bbl from $30/bbl in the previous quarter and $17/bbl a year earlier. Margins improved across most US refining regions, with the Southwest and Gulf Coast posting the largest gains over the year. Jet fuel and naphtha margins also strengthened.In Asia, Singapore gasoline and diesel crack spreads rose to $33/bbl and $69/bbl, respectively, from $16/bbl and $41/bbl in Q1. Singapore diesel margins reached five-year highs during much of the quarter.Higher fuel margins were partly offset by tighter crude price differentials, steeper backwardation and higher tanker rates. Backwardation indicates strong near-term demand or tight spot supply, with futures prices trading below spot prices.Marathon Petroleum (MPC), PBF Energy (PBF) and Phillips 66 (PSX) are expected to post the largest earnings beats versus consensus, while CVR Energy (CVI) and Delek US Holdings (DK) may underperform expectations.The third quarter has also started strongly, with gasoline and diesel margins rising further amid renewed US-Iran tensions and continued constraints on shipping through the Strait of Hormuz.Blair forecasts average third-quarter earnings per share of $5.91, roughly in line with the consensus estimate of $5.94.Price: $296.79, Change: $-6.61, Percent Change: -2.18%

Refiners Start Q3 Strong with Better Fuel Margins, Tight Inventories, TPH Says

US refiners have begun the third quarter on a strong footing, with refining margins improving across most companies as low fuel inventories and renewed tensions between the US and Iran support market conditions, TPH Energy Research analyst Matthew Blair said in a Tuesday note.Blair said company-specific refining indicators are off to a "fantastic start" about halfway through the first month of the quarter, with most refiners benefiting from stronger product cracks and favorable crude market dynamics.Among the large-cap refiners, Valero Energy (VLO) is showing the biggest improvement over the quarter, with TPH estimating refining margins have increased by about $9.15 per barrel.Blair attributed the gains to the company's significant exposure to the North Atlantic and US Gulf Coast, where refining economics have strengthened the most since the Q2.Valero is also benefiting from wider Gulf Coast crude differentials, including ASCI and Maya grades.Phillips 66 (PSX) is estimated to be up about $6.70/bbl over the quarter, supported by similar regional exposure. However, Blair said the company's performance has been somewhat constrained by higher crude prices and weaker Gulf Coast product trends.Marathon Petroleum (MPC) is estimated to have improved by roughly $5.95/bbl from the prior quarter. While product margins in the Chicago region have not strengthened as much as elsewhere, Blair said that has been partially offset by a more favorable structure in the WTI crude market.Among small- and mid-cap refiners, Delek US Holdings (DK) stands out as the strongest performer, with TPH estimating a quarter-over-quarter improvement of about $13.60/bbl.Blair cited the company's Gulf Coast product exposure, wider Midland crude differentials and improved WTI market structure as key drivers.CVR Energy (CVI) is also seeing a substantial improvement, with estimated margins up about $9.85/bbl before accounting for renewable volume obligation costs, or about $7.34/bbl after those costs.HF Sinclair (DINO) is estimated to be up about $2.80/bbl, benefiting from stronger Group 3 gasoline cracks, although Blair noted that the company's exposure to the Rockies and Southwest has moderated from exceptionally strong Q2 levels.Par Pacific Holdings (PARR) is the only refiner in TPH's coverage expected to post a quarter-over-quarter decline, with estimated margins down about $2/bbl.Blair attributed the weakness primarily to Singapore refining margins retreating from record Q2 levels, along with TPH's expectation of more challenging Hawaiian crude differentials during Q3.Price: $297.50, Change: $+1.71, Percent Change: +0.58%

Investors Favor Mid-Cap Refiners as Sector Fundamentals Strengthen, TPH Energy Says

Refining investors remain optimistic as stronger fuel margins, supportive market fundamentals and geopolitical developments continue to strengthen the sector, TPH Energy said in a Friday note.TPH Energy said investors showed the most interest in mid-cap refiners Delek US Holdings (DK), HF Sinclair (DINO) and Par Pacific Holdings (PARR), while Phillips 66 (PSX) and Valero Energy (VLO) attracted the most attention among large-cap companies.Investors focused on the breakdown of the US-Iran memorandum of understanding, which boosted gasoline and diesel refining margins, while also watching Ukrainian drone strikes on Russian refineries, a recovery in Chinese refining activity and low fuel inventories, TPH Energy said.Market participants also examined regional refining trends, including weaker Midwest gasoline margins compared with the Gulf Coast during the summer, along with Western Canadian Select takeaway constraints, the note added.Investors also highlighted potential benefits from Small Refinery Exemptions for Delek US Holdings, Par Pacific Holdings and HF Sinclair, the note said.TPH Energy also expects Marathon Petroleum (MPC), Valero Energy, HF Sinclair, Delek US Holdings and Par Pacific Holdings to generate enough cash in the first half to support significant shareholder returns in the second half of 2026.Price: $55.66, Change: $-0.43, Percent Change: -0.77%

UBS Adjusts Delek US Price Target to $52 From $48, Maintains Neutral Rating

Delek US (DK) has an average rating of overweight and mean price target of $53.25, according to analysts polled by FactSet.Price: $55.80, Change: $-0.25, Percent Change: -0.45%

US Refiners Poised to Beat Q3 Estimates on Strong Product Margins, TPH Energy Says

TPH Energy Research expects US independent refiners to deliver stronger-than-expected Q3 earnings as gasoline and diesel margins remain robust, it said in a Tuesday note.TPH raised its average Q3 earnings per share estimate for the sector to $5.83 from $4.97, above the consensus forecast of $5.22 per share.TPH still expects earnings to remain below its Q2 estimate of $6.18 and the Street's $5.74.TPH said refining margins have started the third quarter strongly, supported by an unusual seasonal increase in US gasoline margins.TPH said its US gasoline margin indicator increased to $35 per barrel in Q3 from $28 per barrel in Q2, after adjusting for Renewable Volume Obligation costs and measuring against Brent crude.US gasoline inventories have fallen to five-year lows and stand 6% below the five-year average, while gasoline yields have remained about 3 percentage points below normal over the past two weeks as refiners favored diesel production, the brokerage said.Diesel margins also improved, with TPH's US futures indicator increasing to $49/bbl in Q3 from $48/bbl in Q2 despite the US-Iran peace agreement.Low inventories, Russian refinery outages and a steeper global cost curve continued supporting diesel markets.TPH said crude differentials have narrowed against Brent for several grades, including WTI-Cushing, Syncrude, Western Canadian Select at Hardisty, Western Canadian Select at Houston and Alaska North Slope, creating a modest headwind for refiners.Company-specific indicators also strengthened early in the quarter, with Valero Energy (VLO) up $7.86/bbl from the prior quarter, Phillips 66 (PSX) up $5.71/bbl and Marathon Petroleum (MPC) up $4.08/bbl, according to TPH.The firm said lower crude backwardation, wider octane spreads and cheaper tanker rates should improve capture rates. Backwardation indicates strong near-term demand or constrained spot supply, with futures prices trading below spot prices.However, weaker jet fuel margins relative to diesel, flat crude prices and a roughly $2/bbl increase in Renewable Volume Obligation costs will offset some of those gains.TPH expects Midwest ethanol margins to improve by about 3 cents per gallon from the Q2 on stronger co-product returns, while retail operations recover. Renewable diesel and polyethylene margins are expected to weaken.Analysts forecast the largest earnings upside versus consensus for Valero Energy, HF Sinclair (DINO) and Par Pacific Holdings (PARR), while maintaining estimates below consensus for PBF Energy (PBF) and CVR Energy (CVI).TPH expects refiners to increase shareholder distributions in Q3 after limiting returns in Q2 because of market volatility.The firm forecasts an average total capital return yield of 9% in Q3, up from 5% in Q2, led by Marathon Petroleum, Valero Energy, Par Pacific Holdings, HF Sinclair and Delek US Holdings (DK).

Delek Us Holdings Insider Sold Shares Worth $257,500, According to a Recent SEC Filing

William J Finnerty, Director, on June 29, 2026, sold 5,000 shares in Delek Us Holdings (DK) for $257,500. Following the Form 4 filing with the SEC, Finnerty has control over a total of 34,805 common shares of the company, with 34,805 shares held directly.SEC Filing:https://www.sec.gov/Archives/edgar/data/1694426/000128366126000012/xslF345X05/wk-form4_1782953232.xml

Refiners Outperform Broader Market on Stronger Fuel Margins, TPH Energy Says

Renewed Middle East supply concerns boosted refining equities and fuel margins last week, while second-quarter refining fundamentals continued to improve, TPH Energy said in a Monday note.US refining stocks climbed 7.6% last week, outperforming the S&P 500's 2.0% decline after tensions between the US and Iran intensified. The note cited Iran's strike on a cargo ship and the US response targeting drone and missile storage sites.Among refiners, PBF Energy (PBF) gained 15.6%, Delek US Holdings (DK) rose 15.3%, and Valero Energy (VLO) advanced 9.8%. CVR Energy (CVI) fell 1.1% after unexpectedly replacing its chief executive officer, TPH Energy said.Gasoline cracks strengthened across key regions, with US margins rising $6 per barrel to $32/bbl, Northwest Europe gaining $5/bbl to $29/bbl, Singapore increasing $1/bbl to $31/bbl, and 2026 gasoline futures climbing $1/bbl to $14/bbl, TPH said.Diesel cracks also moved higher, as US margins increased $3/bbl to $38/bbl, Northwest Europe rose$7/bbl to $41/bbl, Singapore added $1/bbl to $42/bbl, and 2026 diesel futures advanced $2/bbl to $35/bbl, TPH added.TPH expects second-quarter 2026 product cracks to post their strongest quarterly performance since the second quarter of 2022. US gasoline cracks are on pace to rise $16/bbl quarter over quarter to $25/bbl, while US diesel cracks are expected to increase $15/bbl to $45/bbl.The Southwest posted the greatest improvement in refining margins, both quarter-over-quarter and year-over-year. The West Coast recorded the smallest quarterly gain, while the Mid-Continent showed the weakest year-over-year improvement, TPH said.Higher crude differentials offset part of the stronger refining margins as several grades tightened against Brent. West Texas Intermediate tightened by $1/bbl, Louisiana Light Sweet by $2/bbl, Mars by $4/bbl, Maya by $3/bbl, Bakken by $7/bbl, Syncrude by $5/bbl, West Texas Sour by $2/bbl, and Alaska North Slope by $11/bbl, the company added.Western Canadian Select widened by $4/bbl at Hardisty and $1/bbl at Houston. TPH also expects the West Texas Intermediate market structure to reduce the value of US inland barrels by $5/bbl during the second quarter.

TD Cowen Upgrades Delek US Holdings to Buy From Hold, Adjusts Price Target to $58 From $50

Delek US Holdings (DK) has an average rating of overweight and mean price target of $53.25, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://finwires.com/en/contact)

US Gasoline Cracks Fall Below 5-Year Average Despite Refiner Rally, TPH Says

US gasoline cracks dropped $6 per barrel to $18/bbl last week after inventory data showed a surprise 3.4 million-barrel build compared with expectations for a 2.5 million-barrel draw, TPH Energy Research said Monday.Falling below the seasonal five-year average, gasoline margins weakened while US diesel cracks slipped $1 to $40 per barrel following a 1.5 million-barrel inventory increase versus expectations for a 2 million-barrel decline.Posting the sharpest regional decline, Midwest 3-2-1 cracks fell $15/bbl, while gasoline cracks in Northwest Europe and Singapore dropped $3/bbl and $5/bbl, respectively.Diesel margins in Northwest Europe and Singapore increased $5/bbl and $3/bbl, respectively, while the Brent-WTI differential narrowed to $2/bbl from $3/bbl.Alaska North Slope crude widened its premium to Brent by $2/bbl and traded at a $12/bbl premium, bucking the broader trend of narrowing crude differentials.Among recent industry developments, Russia's 160,000-barrel-per-day Tyumen refinery suffered a fire, while Dangote outlined plans to expand refining capacity from 700,000 b/d to 750,000 b/d over the next 30 months.Separately, over 300 vessels reportedly contacted Iran about transiting the Strait of Hormuz, while Chevron's (CVX) California refineries received Strategic Petroleum Reserve barrels, according to TPH.Despite softer refining margins and weak inventory data, refiner equities gained 3.5% during the week and outperformed the S&P 500's 2.6% decline, TPH said.Delek (DK) led the group with an 8.5% advance as investor interest increased ahead of expected 2025 Small Refinery Exemption decisions, which TPH estimates could amount to about 23% of the company's market capitalization.On the valuation front, refiners traded at 6.0x next-12-month consensus EV/EBITDA, below the sector's three-year average multiple of 6.5x, TPH said.Price: $48.85, Change: $+0.57, Percent Change: +1.18%

Supply Disruptions Lift Refiner Q2 EPS Outlook Above Consensus, TPH Energy Says

TPH raised its average second-quarter 2026 earnings estimate for refiners to $6.38 per share from $5.67, exceeding the $5.40 consensus forecast and sharply above Q1 earnings of $0.59 per share, the firm said Thursday.TPH said supply disruptions tied to the US-Iran conflict continue to support refining fundamentals and improve earnings expectations across the sector.The International Energy Agency expects global refinery runs to fall to 78.7 million barrels per day in the second quarter from 83.6 million b/d in Q1 and 82.9 million b/d a year earlier, TPH said.TPH said shipping disruptions in the Strait of Hormuz and refinery damage linked to the conflict are reducing global fuel supplies.US gasoline cracks increased by about $20 per barrel over the quarter to $25/bbl, compared with a five-year average of $20/bbl, the firm said.US diesel cracks climbed by roughly $21/bbl to $48/bbl, more than double the five-year average of $22/bbl, TPH said.The West Coast, Southwest and Rocky Mountain regions posted the strongest margin gains relative to historical averages, while the Mid-Continent and Midwest regions lagged, according to the firm.US refiners increased operating rates to address supply shortages, pushing utilization to 91% in the second quarter from a five-year average of 89%, TPH said.Higher operating rates helped gasoline exports reach 880,000 b/d and distillate exports rise to 1.56 million b/d, above five-year averages of 828,000 b/d and 1.19 million b/d, respectively, the firm said.TPH said tighter availability of Middle Eastern medium-sour crude has narrowed crude differentials, although Western Canadian Select prices at Hardisty and Houston remain under pressure from constrained Canadian pipeline capacity.The firm added that stronger backwardation is creating a $ 5/bbl-over-the-quarter headwind for inland US crude barrels, while elevated tanker costs are weighing on coastal markets.TPH expects lower crude prices, wider West Coast jet fuel premiums, reduced downtime and a $4/bbl increase in octane spreads to support second-quarter capture rates.However, the firm said rising Renewable Volume Obligation costs approaching $4/bbl, tighter crude differentials, weaker butane blending demand and the $5/bbl WTI structure impact remain key challenges.TPH forecast group capture rates of 73% in the second quarter, compared with 72% in the first quarter.The firm said renewable diesel indicators improved by $1.39 per gallon, Midwest ethanol margins increased by $0.33/gal, polyethylene chain margins rose by $0.40 per pound and $0.32/lb, while UAN and ammonia fertilizer prices advanced 33% and 27%, respectively.TPH said potential Small Refinery Exemption proceeds could equal 23% of market capitalization for Delek US Holdings (DK), 7% for Par Pacific Holdings (PARR), and 4% each for HF Sinclair (DINO) and CVR Energy (CVI), assuming partial waivers for all applications.TPH said its second-quarter earnings forecasts exceed consensus estimates for Par Pacific Holdings, HF Sinclair, Phillips 66 (PSX) and Valero Energy (VLO), while its estimate for CVR Energy remains below consensus.Price: $47.19, Change: $+0.01, Percent Change: +0.02%

Refiners Slide as US-Iran Peace Hopes Pressure Crack Spreads, TPH Energy Says

Refining equities and product crack spreads declined last week as reports of progress in US-Iran peace negotiations pressured margins and softened sector sentiment, TPH Energy strategists said in a note on Tuesday.Matthew Blair, analyst at TPH Energy, said the refining group fell 1.3%, underperforming the S&P 500's 0.9% gain, with high-beta names leading losses.PBF Energy (PBF) dropped 4.9%, while Phillips 66 (PSX) outperformed the group with a 1.6% rise, making it the lone notable gainer among diversified refiners.TPH said the decline was driven by a sharp compression in refined product cracks. US gasoline cracks fell $12 to $25 per barrel, while US diesel cracks declined $7 to $45/bbl.Regional softness was most pronounced in the Midwest, Midcontinent and Rockies, TPH analysts said, reflecting broad-based margin pressure.International cracks were mixed. Northwest Europe gasoline and diesel eased by $1 and $3/bbl, respectively, while Singapore markets moved against the trend, with gasoline up $3/bbl and diesel rising $5/bbl.Forward curves also reflected the softer tone. The 2026 gasoline strip moved $1 lower, while diesel was unchanged.On the crude side, the Brent-WTI spread narrowed to $3/bbl from $5 previously, reducing a key advantage for US refiners that benefit from discounted domestic crude.Blair said grades, including Mars, Louisiana Light Sweet and Bakken crude strengthened, while Western Canadian Select at Hardisty, Mexico's Maya crude and Alaska North Slope held largely steady.Macro and industry developments added to the mixed backdrop. US regular gasoline prices eased 5 cents to $4.45 per gallon. India raised retail gasoline prices in response to war-related supply dynamics involving Iran.Kuwait's refinery throughput has reportedly fallen by half since the Middle East conflict began, while US jet fuel production has climbed above 2 million barrels per day in recent weeks.On corporate activity, Delek US Holdings (DK) disclosed a $100 million share repurchase authorization from REH. However, despite the recent pullback in refining equities, TPH said most refiners continue to trade above their three-year average forward EBITDA valuation multiples, except for Phillips 66 and Valero Energy (VLO).

Delek Us Holdings Insider Sold Shares Worth $4,920,289, According to a Recent SEC Filing

Ezra Uzi Yemin, Director, on April 29, 2026, sold 105,968 shares in Delek Us Holdings (DK) for $4,920,289. Following the Form 4 filing with the SEC, Yemin has control over a total of 692,102 common shares of the company, with 210,161 shares held directly and 481,941 controlled indirectly.SEC Filing:https://www.sec.gov/Archives/edgar/data/1694426/000136109126000007/xslF345X05/wk-form4_1777680132.xml

Delek US Q1 Volumes Decline, Signals Recovery With Higher Q2 Throughput

Downstream energy firm Delek US (DK) reported Q1 earnings on Wednesday, showing total average throughput of 260,030 barrels per day, down from 289,203 b/d a year earlier.Crude throughput averaged 238,338 b/d for the quarter ended March 31, down from 272,183 b/d a year earlier.Other feedstocks throughput averaged 21,692 b/d for the quarter, compared with 17,020 b/d a year earlier, the company said.The company reported that total sales volumes for the quarter averaged 274,376 b/d, down from 294,892 b/d a year earlier.Delek expects total crude throughput to range between 283,000 b/d and 303,000 b/d in Q2, with total throughput across its refining system to range between 293,000 b/d and 313,000 b/d.The company completed the Big Spring refinery turnaround during the quarter, enhancing reliability, improving product yields, and increasing flexibility for higher-octane output, supporting future margin capture.Delek Logistics advanced key midstream projects, including the successful drilling of its first acid gas injection well at the Libby facility in the Delaware Basin, strengthening sour gas processing and handling capabilities.The company continues to ramp up the Libby 2 plant in the Delaware Basin, expanding gas processing capacity and supporting long-term growth in gathering and processing operations.Price: $46.08, Change: $+5.04, Percent Change: +12.27%

Sector Update: Energy Stocks Edge Higher Pre-Bell Wednesday

Energy stocks were edging higher pre-bell Wednesday, with the State Street Energy Select Sector SPDR ETF (XLE) advancing by 1.2%.The United States Oil Fund (USO) was up 3.4% and the United States Natural Gas Fund (UNG) was 2.4% lower.Front-month US West Texas Intermediate crude oil was 3.7% higher at $103.58 per barrel at the New York Mercantile Exchange. Global benchmark North Sea Brent crude oil rose 3.6% to $115.29 per barrel, and natural gas futures were down 2.5% at $2.62 per 1 million British Thermal Units.TotalEnergies (TTE) shares were up 1% after the company posted higher Q1 adjusted earnings and revenue.Phillips 66 (PSX) stock was up more than 1% after the company reported that it swung to Q1 adjusted earnings.Delek US (DK) shares were up more than 4% after the company posted a swing to Q1 adjusted earnings as net revenue increased during the period.

Delek US Swings to Q1 Adjusted Earnings, Revenue Rises

Delek US (DK) reported Q1 adjusted earnings Wednesday of $0.08 per share, swinging from a loss of $2.32 a year earlier.Analysts polled by FactSet expected a loss of $1.42.Net revenue for the quarter ended March 31 was $2.65 billion, compared with $2.64 billion a year earlier.Analysts surveyed by FactSet expected $2.33 billion.

Earnings Flash (DK) Delek US Posts Q1 Net Revenue $2.65B, vs. FactSet Est of $2.33B

Earnings Flash (DK) Delek US Posts Q1 Adjusted EPS $0.08, vs. FactSet Est of $1.42 Loss