DK · CIK 0001694426
What Delek US Holdings, Inc. told the SEC could break it.
As an independent refiner, Delek's profitability hinges on the crack spread — the gap between its crude-oil feedstock cost and refined-product prices — plus RIN compliance costs, leaving it fully exposed to crude and product price volatility (its 2025 slate ran roughly 70% WTI and 24% Gulf Coast sweet). That exposure is geographically concentrated: all four of its refineries sit in the Gulf Coast Region (PADD III), so a single hurricane, pipeline outage or regional event could knock out a disproportionate share of its capacity at once. Regulation closes the loop — as an obligated party under the Renewable Fuel Standard it must retire RINs, and its economics hinge on the contested small-refinery-exemption program, where the EPA in August 2025 granted exemptions for substantially all of its 2019-2024 petitions.
3 self-disclosed vulnerabilities, pulled from its own filings, each in the company’s words, with the source. This is the risk register almost nobody reads.
In its own words
What could break it.
Commodity & input dependence
- Crude-oil feedstock dependence (slate ~70% WTI / ~24% Gulf Coast sweet) and refined-product price exposure — crack-spread/commodity-margin riskmedium
As an independent refiner, Delek's margins are driven by the spread between crude-oil feedstock cost and refined-product prices (the crack spread), plus RIN costs. Its 2025 crude slate was approximately 69.9% WTI, 24.1% Gulf Coast sweet and 6% other, and it purchases more crude than it processes via long-term acreage-dedication and short-term purchase agreements. While it states crude and refined products are readily available commodities (no specific-supplier concentration), it remains fully exposed to crude-oil and product price volatility, crude differentials (WTI vs. Gulf Coast/Midland), and energy-market swings. A core commodity-margin dependence tying profitability to crude and product markets.
“We purchase more crude oil than our refineries process, generally through a combination of long-term acreage dedication agreements and short-term crude oil purchase agreements.”
Geographic concentration
- All four refineries (Tyler TX, Big Spring TX, El Dorado AR, Krotz Springs LA) located in the Gulf Coast Region (PADD III) — concentrated exposure to one region's hurricanes and crude/product dynamicsmedium
Delek's entire refining footprint is geographically concentrated: all four of its refineries are located in the Gulf Coast Region (PADD III), and its refined products are marketed primarily in the south-central and southwestern U.S. This concentrates exposure to a single PADD's dynamics — Gulf Coast hurricane risk (which can knock out multiple refineries at once), regional crude differentials and logistics, and regional product demand/pricing. A region-wide disruption (major storm, pipeline outage, regional regulation) would affect a disproportionate share of capacity simultaneously. A genuine single-region refining concentration.
“All four of these refineries are located in the Gulf Coast Region (PADD III)”
SEC filing →As of 2026
Regulatory & policy
- Renewable Fuel Standard (RFS) / RIN compliance costs and small-refinery-exemption (SRE) policy — EPA SRE decisions and RIN obligations materially affect refining economicsmedium
As an obligated party under the EPA's Renewable Fuel Standard, Delek must retire Renewable Identification Numbers (RINs) to meet its Renewable Volume Obligations — a large, volatile cost line for independent refiners — and its economics hinge on the contested small-refinery-exemption (SRE) program. On August 22, 2025, the EPA granted Delek full and partial exemptions for substantially all of its 20 SRE petitions for the 2019–2024 calendar years and refunded vintage 2019–2023 RINs it had retired. SRE eligibility, RFS volume mandates and RIN prices are subject to EPA discretion and litigation, so changes could swing compliance costs materially in either direction. A specific, high-impact, refiner-defining regulatory exposure.
“The EPA granted Delek full and partial exemptions for substantially all of our 20 petitions for the 2019-2024 calendar years.”
SEC filing →As of 2026
The hidden graph
Who it depends on, and who depends on it.
Relationships surfaced from filings, including ones disclosed by the other side, which is how the non-obvious ones come to light.
Its suppliers
“We depend upon our logistics segment for a substantial portion of the crude oil supply and refined product distribution networks that serve our Tyler, Big Spring and El Dorado refineries.”
Cited →“Delek accounted for approximately 82 %, 76 % and 82 % of the Company's revenues during the years ended December 31, 2025, 2024 and 2023, respectively.”
Cited →
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