DK

Delek US Holdings Inc

Energy


Presented:12/04/2015
Price:$27.64
Cap:$1.76B
Current Price:$17.29
Cap:$1.12B

Presented

Date12/04/2015
Price$27.64
Market Cap$1.76B
Ent Value$2.55B
P/E Ratio19.19x
Book Value$19.48
Div Yield2.2%
Shares O/S63.66M
Ave Daily Vol1,174,701
Short Int3.00%

Current

Price$17.29
Market Cap$1.12B
Delek US Holdings, Inc. is a diversified downstream energy company. The company is engaged in the petroleum refining, the wholesale distribution of refined products and convenience store retailing. It operates through three business segments: Petroleum Refining, Logistics and Retailing. The Refining segment processes crude oil and crude oils and manufactures mostly light, high-value refined products, such as gasoline and distillate fuel. This segment operates independent refineries in Tyler, Texas and El Dorado, Arkansas with a combined design crude distillation, in addition to product distribution terminals and associated logistics assets. The Logistics segment owns & operates midstream energy infrastructure assets. The Retail Segment operates under the MAPCO Express, MAPCO Mart, East Coast, Fast Food and Fuel, Favorite Markets, Delta Express and Discount Food Mart. Delek US Holdings was founded in April 2001 and is headquartered in Brentwood, TN.

Publicly traded companies mentioned herein: Alon USA Energy (ALJ), Delek Logistics Partners LP (DKL), Delek US Holdings Inc (DK)

Highlights

The presenter is long shares of Delek US Holdings (DK) and sees the company in an “interesting situation” at this time. The risk/ reward appears to be favorable with the stock at ~$27 because asset value (i.e., two refineries with 50 million barrels per year of throughput) should provide downside protection and there are a number of potentially positive catalysts to look forward to (including the benefits of M&A). If his assessment of the situation and outlook are accurate, shares could see the $40 - $45 range over the next 12 months.

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Idea Discussion

Commentor 1 - 2 weeks ago

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