Delek US Holdings, Inc. (NYSE:DK) Q3 2024 Earnings Conference Call November 6, 2024 10:00 AM ET
Company Participants
Robert Wright - Deputy Chief Financial Officer
Avigal Soreq - President and Chief Executive Officer
Joseph Israel - Executive Vice President, Operations
Mark Hobbs - Executive Vice President, Corporate Development
Mohit Bhardwaj - Senior Vice President, Strategy and Growth
Conference Call Participants
Neil Mehta - Goldman Sachs
Manav Gupta - UBS
Matthew Blair - TPH
Joe Leach - Morgan Stanley
Doug Leggate - Wolfe Research
Roger Read - Wells Fargo
Jason Gabelman - TD Cowen
Operator
Thank you for standing by. My name is Jael and I'll be your conference operator today. At this time I would like to welcome everyone to the DK Third Quarter Earnings Call. [Operator Instructions]
I would now like to turn the conference over to Robert Wright, Deputy Chief Financial Officer. You may begin.
Robert Wright
Good morning and welcome to the Delek US third quarter earnings conference call.
Participants joining me on today's call will include Avigal Soreq, President and CEO; Joseph Israel, EVP Operations; Reuven Spiegel, EVP and Chief Financial Officer; and Mark Hobbs, EVP Corporate Development.
Today's presentation material can be found on the Investor Relations section of the Delek US website. Slide 2 contains our safe harbor statement regarding forward-looking comments. Any forward-looking statements made during today's call involve risks and uncertainties that may cause actual results to differ materially from today's comments. Factors that could cause actual results to differ are included here as well as in our SEC filings. The Company assumes no obligation to update any forward-looking statements.
I will now turn the call over to Avigal for opening remarks. Avigal.
Avigal Soreq
Thank you, Robert, Good morning, and thank you for joining us today.
During the third quarter, our adjusted EBITDA was approximately $71 million. The current refining margin environment is $5 to $6 below mid-cycle. As refining margin remains below mid-cycle, we expect more refinery capacity to shut down. Refining product inventory remain low and oil demand continues to rise. This factor will help digest the recent additions in the global supply and balance the market over the next six to 12 months.
In the meantime, we are making good progress on the things we can control. First, lowering our cost structure. Second, executing on KSR turnaround, and third, prioritizing our balance sheet and opportunistic buyback to support our shares.