Delek US Holdings Declares Special Cash Dividend and Reduces Debt
BRENTWOOD, Tenn.--(BUSINESS WIRE)-- Delek US Holdings, Inc. (DK), a diversified energy company with assets in the petroleum refining, marketing and retail industries, today announced that its Board of Directors declared a special cash dividend of $0.10 per share. Shareholders of record on October 16, 2012 will receive the special cash dividend payable on October 30, 2012.
The Company also announced that it has fully repaid from cash on hand the remaining $38.5 million of debt that was owed to an affiliate of Delek Group, Ltd. This debt was primarily associated with the Companys acquisition of Lion Oil Company in April 2011.
"Our business and cash flow generation remains very strong. This presents us with opportunities to improve our financial flexibility and better position the Company for long-term success, remarked Uzi Yemin, President and Chief Executive Officer of Delek US Holdings. With todays special dividend announcement, our Board continues its long-standing commitment to return value to our shareholders. Within the last twelve months, we have announced four special dividends and four regular dividends totaling an aggregate of $0.62 per share. We look forward to leveraging our strong free cash flow further and expect to re-evaluate our regular dividend policy by the end of this year.
About Delek US Holdings
Delek US Holdings, Inc. is a diversified downstream energy company focused on petroleum refining, the wholesale distribution of refined products and convenience store retailing. The refining segment consists of refineries operated in Tyler, Texas and El Dorado, Arkansas with a combined nameplate production capacity of 140,000 barrels per day. The marketing and supply segment markets refined products through a series of owned and third-party product terminals and pipelines. The retail segment supplies fuels and merchandise through a network of approximately 374 company-operated convenience store locations operated under the MAPCO Express®, MAPCO Mart®, East Coast®, Fast Food and Fuel", Favorite Markets®, Delta Express® and Discount Food Mart" brand names.
Safe Harbor Provisions Regarding Forward-Looking Statements
This press release contains forward-looking statements that are based upon current expectations and involve a number of risks and uncertainties. Statements concerning our current estimates, expectations and projections about our future results, performance, prospects and opportunities and other statements, concerns, or matters that are not historical facts are forward-looking statements, as that term is defined under the federal securities laws.
Investors are cautioned that the following important factors, among others, may affect these forward-looking statements. These factors include but are not limited to: management's ability to execute its strategy through acquisitions and transactional risks in acquisitions; risks and uncertainties with the respect to the quantities and costs of crude oil, the costs to acquire feedstocks and the price of the refined petroleum products we ultimately sell; our competitive position and the effects of competition; the projected growth of the industry in which we operate; changes in the scope, costs, and/or timing of capital projects; losses from derivative instruments; general economic and business conditions, particularly levels of spending relating to travel and tourism or conditions affecting the southeastern United States; potential conflicts of interest between our majority stockholder and other stockholders; and other risks contained in our filings with the United States Securities and Exchange Commission.
Forward-looking statements should not be read as a guarantee of future performance or results and will not be accurate indications of the times at, or by which such performance or results will be achieved. Forward-looking information is based on information available at the time and/or management's good faith belief with respect to future events, and is subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statements. Delek US undertakes no obligation to update or revise any such forward-looking statements.
Delek US Holdings, Inc.
U.S. Investor / Media Relations Contact:
Assi Ginzburg, 615-224-1158
Executive Vice President
Keith Johnson, 615-435-1366
Vice President of Investor Relations
Alpha IR Group
Chris Hodges, 312-589-3505
Founder & CEO
Source: Delek US Holdings, Inc.Copyright Business Wire 2012