Delek US announces its latest quarterly cash dividend, continuing its commitment to returning capital to shareholders.
Delek US Holdings, Inc. has announced that its Board of Directors has approved a quarterly cash dividend of $0.255 per share. The dividend will be paid on March 9, 2026, to shareholders of record as of March 2, 2026. This declaration reflects the company’s continued commitment to returning value to shareholders while maintaining a disciplined capital allocation strategy across its refining, logistics, and pipeline operations.
Dividend announcement and shareholder returns
The quarterly dividend underscores Delek’s ongoing focus on providing consistent returns to investors. Dividends are a key component of the company’s broader financial strategy, which balances capital expenditures, debt management, and shareholder distributions. By maintaining regular dividend payments, Delek aims to offer predictable income to shareholders, even as the downstream energy sector experiences cyclical fluctuations tied to fuel demand, crude prices, and refining margins.
At $0.255 per share, the dividend represents a continuation of Delek’s established payout policy. The payment schedule—declared for shareholders of record on March 2, 2026, and paid on March 9, 2026—follows the company’s typical quarterly distribution pattern. Such consistency is often viewed by investors as a signal of financial stability and confidence in future cash flows.
In the refining and logistics industry, dividend policies are closely tied to operational performance. Companies like Delek must navigate volatile crude oil prices, changing product demand, and regulatory requirements while maintaining profitability. The ability to sustain dividend payments is therefore closely linked to efficient operations, disciplined spending, and effective market positioning.
Overview of Delek’s business model
Delek US Holdings, Inc. is a diversified downstream energy company engaged primarily in petroleum refining, logistics, and pipeline operations. Unlike upstream oil and gas producers that focus on exploration and production, downstream companies such as Delek concentrate on refining crude oil into finished products and transporting those products through logistics networks.
The company’s business model is built around two core segments:
- Refining operations
- Logistics and midstream infrastructure
These segments work together to create an integrated system that supports both operational efficiency and revenue diversification.
Refining segment
Delek’s refining operations form the backbone of its business. The company operates several refineries across the southern United States, with facilities located in:
- Tyler, Texas
- Big Spring, Texas
- El Dorado, Arkansas
- Krotz Springs, Louisiana
Collectively, these refineries have a combined nameplate crude throughput capacity of approximately 302,000 barrels per day. This capacity enables Delek to process significant volumes of crude oil into a range of refined products, including gasoline, diesel, jet fuel, and other petroleum-based products.
The geographic distribution of Delek’s refineries provides strategic advantages. Facilities in Texas and Louisiana are positioned near major crude supply hubs and transportation networks, while the Arkansas refinery helps serve regional markets in the Mid-South. This regional focus allows the company to optimize logistics, manage transportation costs, and respond to localized demand trends.
Refining margins—the difference between the cost of crude oil and the selling price of refined products—are a key driver of profitability. These margins can fluctuate based on seasonal demand, global supply conditions, and regional market dynamics. As a result, efficient operations, maintenance planning, and feedstock optimization are critical to maintaining consistent financial performance.
Logistics and midstream operations
Complementing its refining business, Delek also operates a logistics segment through its majority ownership in Delek Logistics Partners, LP (NYSE: DKL). This entity is a growth-oriented master limited partnership (MLP) that owns and operates midstream energy infrastructure assets.
As of September 30, 2025, Delek and its subsidiaries owned approximately 63.3% of Delek Logistics Partners, including the general partner interest. This controlling stake allows Delek to integrate logistics services with its refining operations while also benefiting from the partnership’s cash distributions.
Delek Logistics Partners focuses on assets such as:
- Crude oil and refined product pipelines
- Storage terminals
- Gathering systems
- Transportation infrastructure
These assets support both Delek’s internal operations and third-party customers. By generating fee-based revenue from transportation and storage services, the logistics segment provides a more stable cash flow stream compared to the more cyclical refining business.
Midstream assets are often valued for their predictable earnings, as they typically operate under long-term contracts or tariff-based pricing structures. This stability can help offset volatility in refining margins and contribute to the company’s ability to sustain dividend payments.
Strategic importance of integration
One of Delek’s core strengths lies in its integrated business model. By combining refining operations with logistics infrastructure, the company can control key elements of its supply chain. This integration provides several advantages:
1. Cost efficiency
Owning pipelines, storage facilities, and transportation assets reduces reliance on third-party providers and helps lower operating costs.
2. Operational flexibility
Integrated logistics allow Delek to move crude oil and refined products more efficiently between facilities and markets.
3. Stable cash flows
The logistics segment generates fee-based income, which can provide consistent revenue even when refining margins are under pressure.
4. Capital allocation flexibility
With both cyclical and stable business segments, Delek can balance growth investments and shareholder returns more effectively.
This integrated approach is common among downstream energy companies seeking to reduce exposure to market volatility while maintaining growth opportunities.
Industry context and market dynamics
The downstream energy sector is influenced by a variety of factors, including:
- Global crude oil prices
- Regional fuel demand
- Seasonal consumption patterns
- Regulatory requirements
- Geopolitical developments
Refiners must also adapt to evolving energy policies and environmental standards. Increasing emphasis on lower-carbon fuels, renewable energy, and emissions reduction is shaping long-term strategies across the industry.
