Added to YB: 2025-08-25
Pitch date: 2025-08-21
DK [bullish]
Delek US Holdings, Inc.
+8.76%
current return
Author Info
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Company Info
Delek US Holdings, Inc. engages in the integrated downstream energy business in the United States. The company operates in two segments: Refining and Logistics.
Market Cap
$1.5B
Pitch Price
$22.50
Price Target
58.00 (+156%)
Dividend
4.11%
Sector
Oil, Gas and Consumable Fuels
Category
value
Value with Catalyst: Stub trading at 1.0x EBITDA with up to 135% upside - Delek US Holdings, Inc.
DK: $1.5bn mkt cap/$343m EV; DKL stake worth $1.46bn. Trades at 1.0x mid-cycle EBITDA of $333m (mgmt est $343-493m). Potential $900m SRE payment from EPA (50% of $1.8bn petitions). Target $58 (+135%) based on 3.5x EBITDA vs peers at 6x. $140m annual FCF. Plan: debt reduction, share buybacks, DKL unit repurchases from DK.
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