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DK · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Delek US Holdings, Inc. (DK) stock moving?
DK fell from about $78 on Oct 26 to $62.64 on Nov 10, roughly 20% lower, even though Q3 results on Nov 6 were strong. Record Q3 net income was $1,133.8M, adjusted EPS was $13.55 versus $7.13 a year earlier, and sales of $4.39B beat the $3.92B estimate. Excluding the RVO and SRE effects, adjusted EPS was $10.53 and adjusted EBITDA was $1,038.1M. Management raised the Enterprise Optimization Plan run-rate to at least $250M, lifted Delek Logistics EBITDA guidance to $530-560M, bought $50M of stock with up to $100M more in Q4, and plans to repay the $850M term loan in Q4. The dividend rose about 18% to $0.30, with the record date on Nov 10. Against this, the Nov 9 technical failure at the Big Spring refinery adds operational risk, and the stock drifted lower on Nov 10 on 1.59M shares. Trading was heavy around the Nov 4-6 selloff (1.47M-1.71M shares), and the stock recovered only modestly after earnings. Citigroup kept a Neutral rating and raised its target to $70 from $62, while Morgan Stanley and Wells Fargo also updated targets, though the figures are not in the data. A $400M convertible notes offering was proposed on Sep 24 with capped calls to limit dilution, which remains an overhang. The price is near the Nov 6 low of $59.10, and the mix of strong fundamentals, buybacks and debt reduction against refinery and dilution risks leaves the outlook balanced in the near term.
News behind the analysis
- Delek US Holdings Reports Third Quarter 2026 ResultsReported record Q3 net income of $1,133.8M ($18.22 per share) and adjusted EBITDA of $1,280.4M. Adjusted EPS excluding RVO and SRE impacts was $10.53.
- Delek US Q3 Adj. EPS $13.55 vs $7.13 YoY; Sales $4.39B Beat $3.92B EstimateAdjusted EPS of $13.55 was nearly double the prior-year $7.13, and sales of $4.39B beat the $3.92B estimate.
- Delek US Raises Enterprise Optimization Plan Annual Run-Rate Cash Flow Improvement Guidance To At Least $250M From $220MThe company raised its Enterprise Optimization Plan cash flow improvement guidance to at least $250M from $220M. It also raised full-year Delek Logistics EBITDA guidance to $530-560M.
- Delek US Expects To Repurchase Up To $100M Of Stock In Q4, Repay $850M Term Loan In Q4The company bought $50M of DK stock and expects up to $100M more buybacks in Q4. It also plans to repay the $850M term loan in the fourth quarter.
- Delek US Hldgs Q3 2026 Earnings Call TranscriptManagement discussed Q3 results, the Enterprise Optimization Plan, and capital allocation after reporting on Friday, Nov 6.
- Citigroup Maintains Delek US Holdings at Neutral, Raises Price TargetCitigroup kept its Neutral rating on Delek US and raised its price target from $62 to $70.
- Delek US Reports Technical Failure at Big Spring RefineryDelek US reported a technical failure at its Big Spring, Texas refinery. The report does not give a duration or financial impact.
- Wall Street Analysts Update Ratings and Price Targets for Delek USMorgan Stanley, Citi and Wells Fargo updated their ratings and price targets for Delek US on Nov 10. The available text does not give the new targets.
- Delek US Holdings, Inc. Announces Quarterly Dividend IncreaseThe board declared a quarterly dividend of $0.30 per share, about 18% above the prior $0.255. It is payable Nov 18 to holders of record on Nov 10.
About Delek US Holdings, Inc.
Delek US Holdings is a Tennessee-based downstream energy company. It runs four inland refineries in Tyler and Big Spring, Texas, El Dorado, Arkansas and Krotz Springs, Louisiana, which together can process about 302,000 barrels of crude a day. It also controls the pipeline and storage partnership Delek Logistics Partners (DKL).
How it makes money
Most of its revenue comes from refining crude oil into gasoline, diesel, asphalt and other products and selling them in wholesale markets. Profit depends mostly on the gap between crude costs and fuel prices, called the crack spread. A smaller but steadier part of earnings comes from its logistics business (Delek Logistics Partners), which earns fees for gathering, pipeline transport, storage and processing, largely in the Permian Basin. The company returns cash to shareholders through a quarterly dividend and share buybacks.
What usually moves DK
- Refining crack spreads (gasoline and diesel margins)
- Crude oil price swings and geopolitical supply shocks
- Refinery uptime and planned maintenance shutdowns
- Renewable fuel compliance costs and small-refinery exemption rulings
- Growth and value of the Delek Logistics midstream stake