Q2 2025 Delek US Holdings Inc Earnings Call
Thank you for standing by. My name is Jael and I will be your conference operator today.
At this time, I would like to welcome everyone to the Delek US second quarter earnings call.
All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session.
If you would like to ask a question during this time, simply press star followed by the number 1 on your telephone keypad,
If you would like to withdraw your question, simply press *1 again.
I would now like to turn the conference over to Robert Wright. Deputy Chief Financial Officer. You may begin.
Good morning and welcome to the delek US second quarter. Earnings conference call participants. Joining me on today's call. Will include albergo, Thor, president, and CEO, Joseph of Israel, EVP, operations, and Mark, Hobbs, EVP, and Chief Financial Officer.
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 information shared during today's call will involve risks and uncertainties that may cause actual results to differ materially from today's comments.
Doctors, that could cause actual results to differ are included here as well as within 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. Abigail.
Thank you, Robert. Good morning, and thank you for joining us today.
Continue on its transformational journey. Doing the second caller by making progress on several key strategic initiatives.
We have made excellent progress on our Enterprise optimization plan. Giving the progress we've made so far. We are increasing our guidance on EOP to 130 to 170 million on a run rate basis.
Some of the part efforts also continues to progress. Well, during the quarter, we completed our intercompany agreement worked on raising liquidity, a decal and made great progress in, increasing the economic separation between DK and dkf.
As I always do, I will give an update on our key long-term priorities in more detail.
First, second reliable operations, we have made further progress in improving the operations throughout our company and reported record throughput in the code.
The Big Spring, Refinery had a strong quarter with a strong overall, throughput and operational performance.
We have continued to make a liability investment that will serve us well in the future.
Thailand. El Dorado and kesar. Also had a strong operations during the quarter.
And has shown additional benefit from European improvements.
With most of our capital projects complete in the first half of the year. We look forward to capture the advantage of our operational, EOP and strategic progress during the remainder of the year and Beyond,
Now, I would like to discuss the progress we have made on our EOP efforts.
As a reminder, we started the EOP with an aim to improve DK Cash Flow by 80 to 120 million dollars. Starting the second half of 2025.
With focus on improving overall, free cash flow generation through this cycle.
The basis of this EOP improvement was further cost reduction, but more importantly, by making structural changes in the way we ran our company.
This structural changes are tied to our cost base. The way we run our refineries the way, we buy our code, and the way we sell our products,
During the quarter, we estimate that approximately $30 million of this EOP cash flow improvement has flowed through our P&L.
As you can see, we have already achieved our prior Target of 120 million of run rate, EOP benefits 1 quarter ahead of schedule,
Today we have further, increasing our range of EOP Improvement to 130 to 170 million dollars on a run rate basis. Starting the second half of this year.
I am extremely proud of the team for adopting a culture of continuous Improvement.
While there is still more work ahead, I like the direction we are heading.
Some of the part goals.
With the commissioning of dkl, Libby, 2 plant, and the completion of intercompany agreements, we are making great progress in making decay and decel economically independent.
During the quarter, we increased our financial equity, a declaration for a very successful high offering.
Both our intercompany agreements and the latest high-yield offering with over $1 billion of liquidity, a deal.
This financial flexibility will allow dkl to continue on its growth journey. And complete the economic separation from decay.
As I've highlighted in the past, dkl has a strong Runway of growth in both Midland and other bases.
Decal is making great progress in developing its sour gas gathering and asset gas injection capabilities.
This capabilities will provide decal, the ability to fully capitalize on all of its growth opportunities in the dalaware patient.
Decal is also having a lot of success increasing its code. Gatherings business both in the Midland and the lower bases.
During the third quarter, we see a material increase in volumes in both Midland and D systems.
Direct Logistics is on track to meet its 2025 EB. The guidance of 480 to 520 million
We continue to work on additional step to unlock the value of approximately 400 million dollars in third party without a decal. Such that it's fully reflected in DK, share price and decal unit price.
We complete the DK. Some of the parts in a methodical manner that will create value for both DK, shareholders, and Delek unit holders.
The final piece of our strategy is being a shareholder friendly and having a strong balance sheet.
During the quarter, we paid approximately $16 million in dividends and bought back approximately $13 million of our shares.
Our form balance sheet, improved reliability and confidence in EOP has allowed us to continue.
The counter signal by back in 2025.
We remain committed to a disciplined and balanced approach to Capital, allocation.
Now, I would like to make a comment about small Refinery exemptions.
As you know, as a repetition, are an important Focus area for delek as our pending petition are worth more than our current market cap.
The Supreme Court and that this is Sir, code has made it clear that the EPA must thoughtfully address this problem.
We believe the EPN understand the issues, small. Refiners like delek based in the absence of clear policy around the study.
As a reminder since 2019, while our s repetition have been pending the Le has remained in full compliance.
We are confident in a favorable outcome on our petitions based upon the principle laid in the RFS law, ruling from the DC circuit court, and the EPA understanding of the issues involved,
In closing.
I would like to thank our entire team for their hard work and dedication.
We are optimistic about DK trajectory in the second half of 2025 and Beyond.
With a strong momentum and promising opportunities on the horizon. I will now turn the call over to Joseph, who will provide additional color on our operations.
Thank you a second quarter operations, performance was strong from safety, reliability and optimization standpoint.
starting with the liability record, throughput to results were set in Big Spring crop Springs and for the entire system,
With regards to optimization our refining. Teams have been successful in the bond making improving liquid yield recovery maximizing production value and optimizing software and benzen balances.
Process efficiency improvement is well reflected in our numbers. Our realized refining margins increased by $0.96 since Bill Barrow compared to the second quarter of 2024, despite an $0.18 per barrel decline in the benchmark net margin.
Expand market, optionality.
Overall, we made good progress operationally and we are well positioned to meet or exceed our European rules.
Starting with Tyler Total truth within the second quarter of 74,000 barrels per day. Our production manager was 9.95 cents per barrel and operating expenses were $458 cents per barrel.
For the third quarter, our estimated total throughput in Tyler is in the 73,000 to 77,000 barrels per day range.
In El Dorado total throughput in the second quarter was approximately 81,000, barrels per day.
Our production margin was 5.21 cents per barrel and operating expenses were so long and 38 cents per barrel.
The Elder rate of system is one of our top operational, EOP priorities.
In the second quarter, our estimated EOP impact on gross margin is $145 per barrel which is in line with our approximately $200 per barrel. Run rate, target.
Plans to report for the third quarter are in the 79,000 to 83,000 barrels per day range.
In Big Spring, total throughput and the second quarter was approximately 76,000, barrels per day reflecting our toggles.
People process and equipment.
Our production margin was 9.65 cents per barrel and operating expenses were 667 cents per barrel.
In the third quarter, the estimated throughput is in the 69,000 to 72,000 barrels per day range.
In Croc Springs, we continue to demonstrate improved capacity, capabilities.
Since the major turnaround.
Total throughput in the second quarter was approximately 85,000, barrels per day.
Our production margin was $0.0769 per barrel and operating expenses in the quarter were $0.0513 per barrel.
Our plant throughput. For the third quarter is in the 81 to 85 thousand barrels per day range.
Our employed system throughput. Target for the third quarter is in the 3002 to 317,000 barrels per day range.
Moving on to the commercial front in the second quarter, supply and marketing contributed again at $26 million.
Of that approximately 19 million was generated by wholesale marketing.
Asphalt contributed the gain of approximately 200,000.
Both were positively impacted by seasonal Trends and structurally op improvements in our business.
Approximately 7 million gain was attributed to supply.
In summary with the lizard's, strong performance. In the second quarter driven by operational excellence and strategic execution
We are well positioned to further enhance efficiency while upholding our commitment to safe and reliable operations.
Mark will now address the financial variance.
Thank you, Joseph referring to slide 16 for the second quarter of delegate had a net loss of 106 million, or negative - 1.76 cents per share.
Adjusted. Net loss was 33 million or negative 56 cents per share and adjusted. Eva. De was 170.2 Million.
On Friday, the 18th, the waterfall of adjusted EVA from the first quarter of 2025 to the second quarter shows that there were two main drivers for the increase in EVA.
First, a 141 million dollar increase in refining was primarily driven by a higher margin environment. In the second quarter relative to the first quarter along with sequentially higher throughputs.
Second in the logistics segment, we continue to have another strong quarter, delivering approximately $120 million in adjusted EVA, about a $4 million increase over our previous record of quarterly adjusted EVA achieved in Q1.
These improvements were mitigated by slightly higher cost in the corporate segment of 1 million compared to the prior period.
Moving to slide 19 to discuss cash flow.
Agreement, as well as an outflow of 30 million of restructuring. Another 1-time charges
Investing activities of 163 million includes approximately 115 million for growth projects primarily at dkl.
Financing activities of 103 million. Reflects 13 million in share repurchases, approximately, 16 million in dividend payments and approximately 22 million in dkl. Distribution payments to public unit holders,
On slide 20, we show our actual progress under the 2025 Capital program.
In the second quarter, capital expenditures totaled $164 million. Approximately $119 million of this spending was in the logistics segment.
This includes the 115 million in growth Capital at dkl of which 48 million was associated with completing the Libby 2 gas plant.
Primarily all of the remaining Capital spend, during the quarter was in the refining segment, addressing plans sustaining Capital initiatives.
Our DK refining and corporate capital spending outlook for 2025 remains consistent with prior guidance.
Our net debt position is broken out between Delek and Delek Logistics on slide 21.
Excluding Delek Logistics, we spent approximately $74 million on cash return to shareholders and capital expenditures in the second quarter.
While our delek Standalone, net debt remained relatively flat around 275 million at the end of the quarter.
Moving now to slide 22 where we cover a third quarter Outlook items.
In addition to the guidance Joseph provided for the third quarter of 2025, we expect operating expenses to be between $210 million and $225 million.
Our operating expense guidance for the third quarter incorporates, both higher expected throughput across our refining segment, as well as increased operating expenses associated with the ramp up of our new Libby 2 plant at dkl.
GNA to be between 52 and 57 million.
DNA is expected to be between 100 and 110 million and net interest expense to be between 85 and 95 million with that. We will now open the call for questions.
Thank you. The floor is now. Open for questions.
If you have dialed in and would like to ask a question, please press star 1 on your telephone keypad to raise your hand and join the queue.
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If you're called upon to ask a question and are listening via loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking your question. And we do request for today's session that you please let yourself to 1 question and 1 follow up. Your first. Question comes from the line of Doug, lugat of wolf research. Your line is open.
Hi, it's Miss Haley. All for Douglas this morning he needs at the start. So our first question is going to start with the S. Uh you guys have definitely expressed some confidence around. What looks to be a favorable outcome. I want to know if you're kind of keep your confidence, it's kind of picked up and increases as we get closer to a final decision and uh along with that. Should you be granted the exemption? Oh, I guess I was trying to form or understand what what do you see as the best use of proceeds, we talked with that uh a lot of detail to improve structurally on an operational level
Yeah, absolutely Doug. Thank you for the question. Listen. Um, we are very optimistic about the small Refinery exemption. The law is in our side. This is circuit court is in our outside. We are the only public refineries refineries that all of our assets can apply to small Refinery exemption. We stay in full compliance during the, the last 6 years that our petition are pending and as you can easily calculate its bigger than our
Market cap. So it's very clear around the economical harm that we having, because of that pending lingering issue, EP understand the issue and we are confident in favorite outcome.
With 1 comment about the last part of your question about what is deposit. I'm not going to comment around it but I'm sure the API understand that it cannot compensate someone that stay in compliance and we were in compliance. So I hope that that's comment makes a lot of sense to you.
The drivers that, uh, you guys were able to identify that moved the guy forward and last part of that question is, where do you see sustaining capital for a finance now, uh, at the, should you, uh, be able to execute on this Target in between 130 and 170?
Yeah, Doug that's a very nice. Uh, nice of you to ask that question because we are extremely extremely proud of the EOP focus and the momentum we have here in our shop EOP is not
a project, it's a lifestyle and when I'm saying it's a lifestyle, we have a weekly meeting about that we have 83 project we have um,
We are auditing that internal audit external audit and have accounting. Look over that. So it's a very tight.
Erh process that allows everyone to take a part and the and the contributing for that, the whole essence of of EOP is free cash flow.
And and Below mid cycle and reduce our break even and we are very proud of that as you probably saw on our press release and also on my prepared remark, we increase the guidance of EOP to W for 120 prior to this call to 130 to 170 and the reason that we were 1 quarter ahead of time and we see more projects coming in in the cues for that EOP. So we are extremely optimistic and see a lot of value in that.
MO.
Yeah thanks uh so all I would say on EOP as we call this mention is a free cash flow Improvement uh you know exercise for the company. If you look at the second quarter 30 million flow through our financials and that you know, allows us to have a 120 million dollar run rate. And I just want to remind everybody that we started with the 8,220 million guidance. Now to your specific question around, where is this Improvement or higher confidence in in a higher rate is coming from. So if you if you if you remember the 120 million had 2 components to it, 1 was cost and the other 1 was margin and our confidence in our margin Improvement is increasing and that is where most of the increase has come from. So if you look at the 150 million dollars of the midpoint of the enhanced increased guidance that we have provided today,
Thank you. Your next question comes from the line of Alexa Patrick of Goldman Sachs your line is open.
Hey, good morning team and thank you for taking our question, wanted to ask their, there's been great progress in EOP, uh, free cash flow generation. How do we then think about the allocation of that cash? Can you remind us of our your strategy there? How you're balancing between Capital returns and balance sheet efforts? Yeah, absolutely Alexa, thank you for that question. Um, we have, we are very consistent with our Capital allocation program, you can see that. First of all, we we said that we going to maintain dividend towards
The second. We can definitely check that. Both box very nicely. Then we said that we have a balanced approach between the balance sheet and the buyback. We have done that as well. So we are very consistent and confident around those abilities. We have done buyback in Q1, counter signal, we've done buyback in Q2. We are done buyback in Q3 as we see. Um, you can see in the last 12 months, we have more of a round $100 million to $150 million.
Of Total return to shareholder. And we are number 1 versus in our peers, around return to investors in in terms of capital return to investors. So, we are very proud and consistent about the way we look at Capital and we plan to maintain it. So thank you for that question.
Okay, great, thank you. And then maybe just as a follow-up. I know, it's a bit early, but how, how is Q3 shaping up? What demand Trends are you seeing? Um, what's your view for a crew differentials going forward. Any thoughts around? The quarter ahead would be great.
Yeah, absolutely, we just seen a doe. I think like a, a 50 54 minutes ago and we see a still a positive trend in terms of diesel diesel. It's in
In the short term and also in the midterm all the way probably until the end of the decade we do not see the demand of gasoline and Diesel coming off as people. First fear you want to chime in. Yeah we got I just want to add Alexa if you look at where Pad 2 specific inventories are. Uh, we've seen that. Displayed inventories are way below their 5 year averages which is a very relevant. Uh uh metric for us. And if you look at the utilization in padd, 2 has been very very high. So despite very high utilization, we see inventories remaining low and we expect demand to pick up as the a season starts and you know, you would also see some turnarounds going forward. So as far as pad to specific inventories are concerned, I think um the Outlook remains very optimistic especially on the diesel side.
Your next question comes from the line of Matthew Blair of PTH. Your line is open.
Uh, thank you and good morning. Uh, you mentioned some of the positive drivers in Supply and marketing in Q2 I think the wholesale side in particular was quite strong. Could you talk about how Supply and marketing is trending? Uh, so far in the third quarter and you know, do you think a positive e ether contribution is likely in Q3. Thank you.
Hey, thank you, Matt. Thank you for that question. Obviously, the line of Supply marketing, it's part of the effort. We've improved it. As, with the better Logistics around it, we got the gain Market access.
To New Market. And we had made a long-term contract that allow us to over time. Make that line better and better. So we obviously enjoying that we have some seasonal helping us in Q2 and we are extremely optimistic about the way. The markets are positioning and are more hit. If you want to chime in and give some more color specifically know, I think avalia, right? Uh, and Matt if you look at our overall commercial strategy, uh, dks or our, what we call DK trading and Supply, which is the line item that you're talking about, our commercial strategy is flowing through. But during the quarter as you know, Q2 and Q3 are also seasonally stronger. So uh, you know, we did get some help from the market but Abigail rightly described what our strategy as far as our commercial operations are concerned. As we've said in the past, uh, this has 3 components to it. First is wholesale, second is asphalt, and third is Supply and we are making sure all 3 businesses. The
Was that we can control the parts of these 3 businesses that we can control are doing better through, uh, contract renegotiations to improve markets, to enhanced Market access and, and, and through our refineries making new products that we can sell in these markets through this refined, uh, and enhanced Market access, and these results are showing through and, and we, we look forward to continue doing improving this business and going forward.
Sounds good. And then just on the sum of the parts months Vision, you know, slide 12 with some various Avenues and and options for you. What do you think are are like the more likely options and what are the the less likely options? And then as far as timing, do you think investors can can expect or hope for a economic separation of decal? By the end of 2025 or is this looking more likely, you know 2026 or even later? Thank you.
Yeah. So that that's another great great. Great question for us. We are walking on steps of some of the part as we speak. So we are not standing still even for 1 second and more to come and I will leave you to death. And with that said, I can, we can just take a, take a 1, step back and say, what we did in the last 12 months, right? The last 12 months, we saw retail allow us to maintain stock balance sheet and to do counter cyclical buyback.
Speaks, uh, on on the intrinsic value. Another very important point to watch is, what is the intrinsic value of the Assets. In the KL, we have just have seen the, The Medallion system sold in a very good multiply, it's a sister system to our DPG that what we mentioned, we see volume going up in the prepared remarks and uh, we have some. We've just seen last week, North Wind sold for also, a very nice multiplier as well and that assistance system to our ddg. So going forward we've we've said many many times in the past, the 4, uh, 4 out, outlets that we have to complete some of the part. We are doing that as we speak and more to come. Thank you for that question.
Your next question comes from the line of Joel H. of Morgan Stanley. Your line is open.
Hey, good morning and thanks for taking my questions. Uh, so I wanted to ask a couple uh on on the refining side. Um, and Big Spring you mentioned, I had record throughputs and capture rates also look like they're pretty strong there as well. Uh could you talk to what you're seeing from that asset post the turnaround in the first quarter and then as part of that, could you also talk to the path to achieving. The, I think it was 550 per barrel Opex. Call at that refinery.
Yeah, absolutely. So thank you for the question. I'm extremely proud of the Big Spring progress. We have done throughput and margin and we let Joseph that is very close to it. Uh take the credit here.
Yeah, Big Spring has been on, uh, very positive Journey, as you all know, we focused first on the risk mitigation and reliability with very good results.
Going from 23 to 2024 to remind you throughput increased by 10% and the favorable Trends. Continuing 25 with a record high throughput here in the second quarter. So say some reliable operations really allow us to focus now on process efficiency and Commercial optimization and to be more specific.
Maximizing, a liquid yield recovery and products value in Big Spring. We really mainly going after the high octane, Arizona, specs type of gasoline and improving a aspect grades.
We also optimize the Benzene and sulfur balances, all of that is very visible in our gross margin.
Improvement. Um, so considering the leadership team capabilities and execution, thus far. We are very bullish about, uh, on the plant for the Outlook.
Great. Thanks, that's helpful. And then shifting to El, Dorado had a nice Step Up quarter of quarter in capture rates, uh, from a throughput Barton perspective. It's still still lags. Some of the of the other refineries within the system. Uh, could you expand a bit on on slide 9 which shows the margin improvements and then between Logistics cost improvements and product yield? Uh, where are you in in in that improvement process and is is there more to go there?
Hey, it's a very similar to The Big Springs story as far as the op and structural improvements, it's all about liquid yield recovery and product value in El, the way that we are going after the jet fuel which is a a new product over there. I octane gasoline components after the replacing couple of units Catalyst and really premium ask for, it is a big deal for well, the weather. So we expecting this trend to continue.
and we like in the Outlook of the plank,
Your next question comes from the line of Gan and Salsbury of Bank of America. Your line is open.
Good morning. Um, I wanted to ask about the net
metric that I
Do here. Um and how it's constructed and if that's a metric that you'll continue to track yourselves against
Yeah, absolutely. Yeah, you want to take it?
Yeah GM. Thanks for the question. So the way we Define a net crack and uh we can all obviously talk offline as well but you know the way we Define our net crack is you know take Gulf Coast 532 on a WTI basis.
And we take out our rvo and we take out, uh, you know, back rotation, the CMA impact on it and we also take out million Cushing to get to our net margin number, which is the right way to look at our business because we are a completely Inland refiner. And, uh, we are run mostly TI exposed groups.
Yeah. So as we said many time in the past all options are on the table and we are very much committed to make sure that our unit holder and shower holder, get the full value for they have um obviously we are working very hard in order to complete all of that, and maximizing the value over there. But that's just show the investor the full potential in our asset. So it's a it's a having a always, your neighbor selling a high pass. It's a good, it's a good thing. If you are living next door and we were very happy about it at the time in. Yeah, Guillen. And I know that you understand the Midstream business. Well I'll just say this uh that you know as far as North Britain is concerned, Northwind is primarily a treating operation. We have a much more comprehensive operation in our uh dkl which includes uh Gathering treating processing. So you know we have a much more comprehensive uh you know full Suite product over there as far as gas is concerned. So we think it's a very good Benchmark, but we also have a better business
Your next question comes from the line of Jason, gableman of TD Cowen. Your line is open.
Yeah, hey morning, thanks for taking my questions. Um I I wanted to First go back to the EOP program and and and I'm just trying to understand a couple things 1. How much was actually reflected in 2q results. I know you kind of referenced a run rate exiting the quarter but wondering how much on a on a gross basis was kind of
Realized in Q2. And then how should we think about the amount of the margin capture? Uplift that's captured in the supply line versus, uh, the site unit margins that you referenced? Or should we think about that kind of moving back and forth depending on how the environment shapes up?
Yeah, thank you. That's a very nice question of you. Um, obviously EOP, we said it very clearly in order to make it easier for everyone uh the 30 million Benchmark and the well very proud of the progress. We are doing. As you well know, Jason that pretty much agnostic to market the 30 million we outlined it. We obviously had a 1 slide to make it easier for everyone to calculate on a similar Market environment. You can easily see that in our in our presentation. So that's even make it easier to calculate how how that flows through. And that's a very, very simple way on a very similar Market environment to see the Improvement on the capture rate and on trading on the trading and supply and obviously, the other part of the business, other part of the business, is very easy to see, is the GNA, you see that? We are in the low 50s versus the low 60s, uh, in Q2 of 2024? I think that answer most of the questions, but if you have anything
We want to chime in so please. Yeah I think because I'll just reiterate what you said. So Jason for the second quarter, 30 million dollars were actually included in our financials, so the entire 30 million dollars flowed through it uh through a second quarter financials and as Joseph mentioned, 10 million dollars off, that was at El Dorado. And rest was a distributed between our uh, dkt trading and supply line item, and the cost improvements that we have made.
Okay. Yep. Got it. That's that's clear. And then my follow-up is hopefully a quick 1 just on financing cash flows which were a benefit in the quarter. You you you referenced a number of outflows from that bucket but wondering what contributed to the net inflow from the financing cash flow line item.
Yeah. So um, Json in reality, what the, the story here is very simple. EOP is all about the improving free cash flow and um, that's a very very uh, important part in our equation and I will let the market. I mean,
Yeah, yeah thanks. Thanks Abigail you know Jason I want to step back and and and talk about uh just because you're you're focusing on on on kind of EOP and kind of where you can see that in our results. And and so I want to be very clear that is Abigail mentioned that we're seeing this already show up in our results. So I'm going to be pretty specific around this and so despite a slightly lower margin of environment versus a second quarter.
Of last year our ibida has increased to over 170 million dollars. You know this quarter versus only 107 million dollars last last quarter and our cash flow from operation was approximately a hundred million dollars higher than what we generated in the second quarter of last year and keep in mind that of the 164 million of capex uh in the second quarter about 115 million dollars of that was growth capex you know largely a decal for high return projects likely be 2 which will benefit us going forward. And so
Our capex in 2025 is very much first half weighted. And so, as we go through the year with lower capex and and even more EOP benefits coming through, you know, we feel very good about, you know, how we're positioned, you know, as we move through, uh, the remainder of the year. And if, as you talk about the, uh, the you know, the financing uh on the cash flow statement, you know, keep in mind, we've we've done some things to uh, to improve our balance sheet, uh, on a Consolidated basis. You know, we had a successful high yield offering at dkl.
Which allowed us to uh to pay down our our revolver. Because you know, we made the gravity acquisition you know we've been investing a hundred million dollars in the Libby 2. Gas plant thus far in the first half of of the year and so
You know, added critical liquidity, you know, to the balance sheet, uh, by doing a very successful, you know, oversubscribed high yield offering at a very good rate and it was, you know, an 8-year piece of paper. So we're very happy with that.
That concludes our Q&A session. I'll now turn to the conference back over to eval soc for closing remarks.
Yeah. So I want to thank uh,
My friends on the table.
Both of the rectors, our investor and our investors, and most importantly, our employees that make our company unique in the Greater Cities. We'll talk again in the next quarter. Thank you.
This concludes today's conference call, you may now disconnect