Q3 2025 Delek US Holdings Inc Earnings Call
Speaker #1: Thank you for standing by . My name is Jill and I will be your conference operator today . I'd now like to pass the call off to Robert .
Speaker #1: Please go ahead .
Speaker #2: Good morning and welcome to the U.S. Third Quarter earnings conference call participants . Joining me on today's call will include Avigal Soreq president and CEO .
Speaker #2: Joseph Israel, EVP of Operations, and Mark Hobbs, EVP and Chief Financial Officer. Today's presentation material can be found in the Investor Relations section of the U.S. website.
Speaker #2: Slide two contains our safe harbor statement regarding forward looking information . Any forward looking information shared during today's call will include risks and uncertainties that may cause actual results to differ materially from today's comments .
Speaker #2: Factors 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 information.
Speaker #2: I will now turn the call over to Abigail for opening remarks . Abigail .
Speaker #3: Thank you . Robert . Good morning , and thank you for joining us today . In the third quarter , excluding the reported strong adjusted EPs of $1.52 and adjusted EBITDA of approximately $319 million .
Speaker #3: These results are a reflection of strong momentum. We had excellent contributions from our enterprise optimization plan, with notable progress from all business units.
Speaker #3: As a result , we are again increasing our ERP guidance to at least $180 million on an annual run rate basis . During the third quarter , EPA approved several of our pending 2019 to 2024 Sri petition , and we expect to receive proceeds of approximately $400 million for monetization of the granted Prince .
Speaker #3: We are also encouraged by the guidance EPA has issued about Sri's for future Rvo . From everything we see today , we continue to expect appropriate action on Sri's in the future .
Speaker #3: Some of the protesters also continue to progress well , DL continued to make progress in improving its premier position in the Permian Basin .
Speaker #3: As a result of the strong progress Dxl made this year . We are increasing our full year EBITDA guidance to between 500 and $520 million .
Speaker #3: As I always do , I will now give an update on our key long term priorities in more detail . First , safe and reliable operations where the strong operational quarter in our refining system , SR had a record throughput quarter and its continuing its strong momentum since its turnaround last year .
Speaker #3: Congratulations , Tyler . El Dorado and Big Spring also had a strong operations . Now , I would like to discuss our progress .
Speaker #3: As a reminder , we started up with an end to improve cash flow by 80 to $120 million on a run rate basis , starting in the second half of 2025 .
Speaker #3: The structural changes we are making in the way we run our company are delivering meaningful results across all business units. In the third quarter, supply and marketing had a strong contribution driven by structural improvement in our wholesale business.
Speaker #3: We are very proud of the way the commercial team is looking in the entire wholesale value chain to serve our customers . During the third quarter , we estimate approximately $60 million of EOP contribution to our personnel .
Speaker #3: Based upon this strong results , we are once again increasing our target of an annual run rate . EOP improvement from the midpoint of $150 million to at least $180 million .
Speaker #3: I'm proud of how EOP has become a cornerstone of our continuous improvement culture, and I'm confident EOP will remain a core strength well into the future.
Speaker #3: As I mentioned before, during the third quarter, the EPA cleared the backlog of pending extra repetition from 2019 to 2020.
Speaker #3: We see this announcement as a critical part of the current administration and EPA energy policy . This announcement has three important implications for our business .
Speaker #3: First, for the frontiers of 2023 and 2024, we have followed a proactive strategy to monetize the granted RINs. We expect to receive approximately $400 million in proceeds from this monetization over the next 6 to 9 months.
Speaker #3: We intend to prudently use this cash flow in line with our consistent capital allocation framework . For year 2019 to 2022 , while we appreciate EPA granting our petition , EPA remedy is invalid and encouraged the strategy followed by our peers who chose not to comply .
Speaker #3: We are making efforts to get full value from these grants in line with the intention of the RFS law . I'm confident EPA will continue its methodical approach to Sri grants , furthering energy dominance and supporting high paying jobs in the heart of rural America .
Speaker #3: I'm also proud of the progress GCL is making with commissioning of GCL Libby , two plant and the completion of intercompany agreements . We are making great progress in making decay and GCL economically independent .
Speaker #3: We are working in an industry leading , comprehensive , sour gas solution , including gathering treatment , acid gas injection and processing , along with providing market access for gas and NGLs .
Speaker #3: This capability will provide GCL the ability to fully capitalize on all of its growth opportunities in the Delaware Basin and maintain its best-in-class EBITDA growth and distribution yield.
Speaker #3: Based on the progress logistic has made , we are increasing GCL full year 2025 EBITDA guidance to between 500 and $520 million . This final piece of our strategy is being shareholder friendly and having a strong balance sheet .
Speaker #3: During the quarter , we paid approximately $15 million in dividend and bought back approximately $15 million of our shares . Our strong balance sheet improved reliability and confidence in EOP has enabled us to continue countercyclical buyback in 2025 .
Speaker #3: I'm proud to say that over the last 12 months , Delek had the highest total return yield buyback plus dividend among all of its refining peers .
Speaker #3: We remain committed to a disciplined and balanced approach to capital allocation and look forward to continue rewarding our shareholders . In closing , thank you to our team for their dedication .
Speaker #3: We are optimistic about finishing 2025 strong and building on this momentum into the future . Now I will turn the call over to Joseph , who will provide additional color on our operations .
Speaker #4: Thank you . Avigal Soreq operations reliability . In the third quarter was consistent with our guidance with the third consecutive record high throughput set in Krotz Springs .
Speaker #4: Our refining system continues to implement ERP initiatives at all sites . We have been successful in the Bottlenecking , improving liquid yield recovery , maximizing production value , and optimizing sulfur and benzene balances at the same time , the commercial team has reworked contracts and optimized our new logistics to expand market optionality .
Speaker #4: Starting with Tyler , total throughput in the third quarter was 76,000 barrels per day . Our production margin was $11.32 per barrel . And operating expenses were $4.93 per barrel .
Speaker #4: For the fourth quarter, our estimated total throughput in Tyler is in the 70,000 to 78,000 barrels per day range. In El Dorado, total throughput in the third quarter was approximately 83,000 barrels per day.
Speaker #4: Our production margin was $7.43 per barrel , and operating expenses were $4.50 per barrel . EOP implementation is well reflected in our margin realization as we continue to trend toward our $2 per barrel of incremental capture in our El Dorado system .
Speaker #4: Our planned throughput for the fourth quarter is in the 67 to 75,000 barrels per day range . Considering seasonal trends in Big Spring , total throughput in the third quarter was approximately 70,000 barrels per day .
Speaker #4: Our production margin was $10.99 per barrel , and operating expenses were $7.20 per barrel . In the fourth quarter , the estimated throughput is in the 62 to 70,000 barrels per day range .
Speaker #4: In Krotz Springs . Total throughput in the third quarter was approximately 85,000 barrels per day . Our production margin was $9 one cents per barrel , and operating expenses in the quarter were $5.35 per barrel .
Speaker #4: Our planned throughput for the fourth quarter is in the 72 to 80,000 barrels per day range . Our employed system throughput targets for the fourth quarter is in the 271 to 303,000 barrels per day range .
Speaker #4: The distillate outlook for the fourth quarter is strong as we are pushing our 42% distillate capability system accordingly. Moving on to the commercial front, excluding SREs, supply and marketing contributed approximately $130 million in the quarter. Of that, approximately $70 million was generated by wholesale marketing, asphalt contributed a gain of approximately $6 million, with the remaining contribution coming from supply.
Speaker #4: In summary, the third quarter marked another successful execution of our operating plans. The focus on the fundamentals has allowed us to concentrate on capturing improvements through UOP.
Speaker #4: Mark will now address the financial variants .
Speaker #5: Thank you Joseph . Referring to slide five , we show the breakout of adjusted EBITDA and adjusted EPs . Approximately $319 million and $1.52 per share , respectively .
Speaker #5: Excluding SREs, this breakout removes the impact of historical SREs of $281 million and the impact of 50% RVO exemption recognition for the first nine months of 2025 of approximately $160 million.
Speaker #5: Moving to slide 16 for the third quarter, Delek had a net income of $178 million, or $2.93 per share. Adjusted net income was $434 million, or $7.13 per share.
Speaker #5: Adjusted EBITDA was approximately $760 million. On slide 18, the waterfall of adjusted EBITDA from the second quarter of 2025 to the third quarter shows that there were three main drivers for the increase in EBITDA.
Speaker #5: First, a $583 million increase in refining reflects improved refining margins, as well as an increase of $281 million due to our recognition of historical SREs.
Speaker #5: The $160 million impact of our 50% Rvo exemption recognition and improvement in our overall business that continues to be positively impacted by our EOP initiatives .
Speaker #5: Second , in the logistics segment , we continue to have another strong quarter delivering approximately $132 million in adjusted EBITDA , about an $11 million increase over our previous record of quarterly adjusted EBITDA achieved in the second quarter .
Speaker #5: These improvements were mitigated by slightly higher costs in the corporate segment of $5.2 million compared to the prior period. Moving to slide 19 to discuss cash flow, cash flow provided by operations was $44 million.
Speaker #5: This includes our net income for the period , adjusted for non-cash items and a net outflow related to changes in working capital of $106 million .
Speaker #5: The working capital movements include the timing impact related to SREs granted in the third quarter , as we expect , monetization of the grants to occur over the next 6 to 9 months when adjusting for working capital , cash flow from operations was $150 million .
Speaker #5: This was an improvement of $202 million when compared to the third quarter of last year . Investing activities of $103 million includes approximately $44 million for growth projects , primarily at Dxl financing activities of $75 million includes $15 million in share repurchases , approximately $15 million in dividend payments , and approximately $22 million in distribution payments to public unitholders .
Speaker #5: On slide 20 , we show our actual progress under the 2025 Capital Program third quarter Capital expenditures were $91 million , approximately $50 million of this spend was in the logistics segment , where we had $44 million in growth capital at Dxl , primarily related to our crude and natural gas GMP initiatives .
Speaker #5: All of the remaining capital spend during the quarter was in the refining segment, addressing planned sustaining capital initiatives. Our net debt position is broken out between Delek and Delek logistics on slide 21.
Speaker #5: Excluding debt and liquid logistics, we spent approximately $71 million on cash return to shareholders and capital expenditures in the third quarter, while our standalone net debt decreased slightly to $265 million at the end of the quarter.
Speaker #5: Moving now to slide 22 , where we cover fourth quarter outlook items in addition to the guidance , Joseph provided for the fourth quarter of 2025 , we expect operating expenses to be between 205 and $220 million .
Speaker #5: Our guidance for the fourth quarter incorporates increased operating expenses associated with the ramp up of our new Libby two plant at Dxl . G&A to be between 52 and $57 million .
Speaker #5: 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 .
Speaker #1: Thank you . The floor is now open for questions . If you have dialed in and would like to ask a question , please press star one on your telephone keypad to raise your hand and join the queue .
Speaker #1: If you would like to withdraw your question , simply press star one again . If you are called upon to ask a question and are listening via a loudspeaker on your device , please pick up your handset and ensure that your phone is not on mute .
Speaker #1: When asking your question . And we do request for today's session that you please limit yourself to one question and one follow up .
Speaker #1: One moment for your first question . Your first question comes from the line of Doug Leggate of Wolfe Research . Your line is open .
Speaker #6: Well thank you . Good morning everyone . Hopefully I'll make this relatively easy . I've got two questions related to the SREs . Obviously .
Speaker #6: Tremendous update from you guys . This morning . But my question is on the refining throughput guidance because you've given an Rvo risked number .
Speaker #6: It looks like for 2025, but it seems that all four of your refineries are basically going to be at or below the SRE thresholds.
Speaker #6: So my question is if that's the case , why should we not risk the Rvo at 100% ? In other words , you know , you get 100% of the number .
Speaker #6: And then I guess , how should we think about that going forward ? That's my first question . My second question is really more is can of hypothetical , I guess because we've got a Trump EPA currently .
Speaker #6: So presumably because you've gained the SREs under the Trump administration , the minimum you we should probably assume is you get the Trump EPA duration , which I guess is four years .
Speaker #6: My question is what is your view on whether the rulemaking , the legal case and so on , could transcend administrations ? In other words , this becomes a perpetual SRE exemption for Delek .
Speaker #6: Thanks , guys .
Speaker #3: Hey , thank you for the great question and I will start with your permission . Obviously with given given a bit a overview on and looking that on the big picture and then Mohit will finish the technical part of the question if you're okay with that .
Speaker #3: So listen , we said it very clear on our financials that we have $200 million impact on CRE on Q3 earnings . Right .
Speaker #3: And I also said in my prepared remarks that we have $400 million of cash coming at us in the next 6 to 9 months.
Speaker #3: And I want to make another point very , very clear . Right . We're going to use this cash prudently with with in line with our overall capital allocation guidance .
Speaker #3: We gave many times . So we are not going to deviate from that . So I want to take a moment or two to talk about the 2019 and 2022 Rins .
Speaker #3: While we really appreciate EPA clearing the backlog , obviously , EPA remedy is invalid . We all understand it , right ? It's very clear , but we believe that relief and eligibility are not discretionary item .
Speaker #3: That's a very , very towards that . I just very important to what I just said . And we are committed and confident to give to our shareholders and company full value of those pending petitions from 2019 to 2022 , both the court and the law are behind us , and we're going to follow through and make it happen .
Speaker #3: As we have seen the precedents in the past around it, we are confident we'll get it as well. Our throughput is completely normal with regular seasonal patterns.
Speaker #3: So we can check that box. And I will let Mohit finish.
Speaker #7: Yeah . Thanks , Doug . Thanks for the question . As far as the 50% piece is concerned for 2025 , that is not our expectation .
Speaker #7: Our expectation is 100% of our of our refining capacity qualifies for SREs , and we expect to get 100% of SREs for 2025 as we go forward .
Speaker #7: If you look at your other question about sustainability of these SREs , beyond the current administration , we believe we are a country of law where the law is followed and the law is clearly on our side .
Speaker #7: The courts , their decision is on our side and we are very optimistic that this will transcend beyond the current administration .
Speaker #6: And very clear. Guys, thanks very much indeed.
Speaker #3: Thank you. Thank you, Doug.
Speaker #1: Your next question comes from the line of Manav Gupta of UBS . Your line is open .
Speaker #8: Congrats on a great quarter , guys . I just have a quick clarification question . The 688.6 reported in total adjusted refining margin for the quarter .
Speaker #8: Does it include the Sri benefits or does that exclude it ? And similar on similar lines , the slide 17 the margins that you have reported gross margin , it doesn't look like they have any SRE benefits .
Speaker #8: But could you clarify? Because some of your peers are reporting these gross margins with the benefits included. So, if you could clarify on those things.
Speaker #3: Yeah, it's easy. 688 include, and the margin that we reported does not include. So it's very, very easy to answer.
Speaker #3: I don't know if you have any to .
Speaker #7: Just make one more point . So , you the reported gross margins for the refineries are actually also have the RBA obligation in it .
Speaker #7: So , you know , the RBA obligation that we have flows through our gross margin . So they are post that obligation . That's what we are reporting .
Speaker #8: Perfect . Thank you so much . And one quick question . I understand it's more on the extreme side . But look Permian sour gas opportunity just continues to expand .
Speaker #8: You guys were there before many others . And help us understand what it means for obviously your midstream business . And then obviously how BK benefits .
Speaker #8: Just because Dccl benefits from this growing Permian sour gas opportunity .
Speaker #3: Yeah. Thank you for the great question. The sour gas opportunity in the Delaware Basin is something that we are all very excited about.
Speaker #3: We see that opportunity . We were ahead of the curve with the TB three acquisition and also head of the curve with the two water acquisition .
Speaker #3: You see the the multiply today are nothing that you can buy . Those assets today even here next to me going to give a more .
Speaker #3: We're going to extend the discussion about the sour gas . That's a very big deal for us . And we were on the right timing with the right permits .
Speaker #3: And we were very happy about that. Thank you. Avigal Soreq.
Speaker #9: Construction and the startup of Lib2 has been above our expectation on time , on budget originally and based on producers forecasts . When we started Lib2 , we anticipated to fill the plant with sweet gas .
Speaker #9: But the landscape has changed and producer needs solution and rapid solution for sour gas . As a result , we accelerated our sour programs to provide solution in a more rapid timeline .
Speaker #9: We have very , very high confidence in not only filling up Lib2 with sour gas , but because of the full suite sour gas , crude and water solution that we provide .
Speaker #9: We will need to expand processing capacity earlier than our previous expectation around sour .
Speaker #1: Thank you. Your next question comes from the line of Vikram Bagri of Citi. Your line is open.
Speaker #10: Good morning, everyone. I wanted to ask about SRE cash. When does it hit the balance sheet? I was wondering if you've done the rinse sales with deferred delivery already, or you're going to sell RINs in the open market and liquidity will be there?
Speaker #3: Yeah, so thank you for joining us today. We'll stick to the answer we gave in the prepared remarks that we expect to see the cash in the 6 to 9 months.
Speaker #3: And we leave the technical of trading outside of this call . And we are very happy about the improving of that position and very optimistic about SRE in general .
Speaker #3: And we'll leave it to that .
Speaker #10: Thanks . And as a follow up , you raised the guidance . It has been raised multiple times . The cash savings guidance .
Speaker #10: Can you talk about what the drivers of the most recent increase were? What initiatives you've taken? If there has been any change in underlying assumptions that drove the increase or you've seen opportunities, and where those opportunities are.
Speaker #3: Yeah . Thank you for asking that question . That's a really something I'm very proud and love to talk about that . I have a lot of energy around the topic .
Speaker #3: Listen , first of all , EOP , it's not a project . It's a lifestyle . And it's a lifestyle across the organization .
Speaker #3: And we see how well it runs across our company and how confident we are with that, right? It's not just cost; it's cost and margin.
Speaker #3: We've seen a very nice improvement in margin this quarter , and we have 73 , 73 initiatives . We are running on a weekly and a daily basis to make that happen .
Speaker #3: It's very clear in our earnings , very clear in our EBITDA , very clear in our cash flow . So all of that is been very , very well for us .
Speaker #3: The majority of those projects are a margin, but they are not related for the most part to market conditions. So that's another point of strength in our program.
Speaker #3: As you said correctly , this is the fourth time we are increasing the guidance . We started from a midpoint of 100 , and now we are saying over 180 , and that's going very well for us .
Speaker #3: So more to come . I do want to make another important comment . We started Q4 very well and we see a more upside on that going into this quarter .
Speaker #10: Thank you .
Speaker #1: Your next question comes from the line of Alexa Patrick of Goldman Sachs. Your line is open.
Speaker #11: Good morning , team , and thank you for taking our question . We wanted to ask it looks like the wholesale side was particularly strong this quarter .
Speaker #11: I think you mentioned some structural improvements . And we know it's also been part of the EOP initiative . So can you unpack that a little talk about some of the progress there .
Speaker #3: Yeah , absolutely . The bottom line is that's a bigger portion of the EOP progress . We are doing . And I will let that was very close to that answer .
Speaker #3: The rest of it .
Speaker #7: Yeah , I think wholesale is a great enterprise optimization plan story . And you know , we have been improving the business in three phases .
Speaker #7: The first phase started by with our refining operations , and we started producing a lot of different kinds of products that we can sell in the market .
Speaker #7: We improved our logistics to gain access to different kinds of markets, and that has helped our wholesale business over the last 12 months or so.
Speaker #7: In the second phase, we started renegotiating our contracts. These contracts have been renegotiated, and they are getting us the full value that our products deserve based upon the markets that we serve.
Speaker #7: And the last phase , the phase three , in which we are hopefully it's not the last phase is the phase three , in which we are .
Speaker #7: We are exiting some of the markets that are not as profitable for us, and we are entering new markets that are more profitable for us.
Speaker #7: And a combination of this strength is shown in our numbers . And as I mentioned , that this strength has continued in the fourth quarter and we expect to keep delivering these results on a go forward basis .
Speaker #11: Okay . That's great . Thank you . And just a follow up , recognize we're still early into four Q but we're seeing cracks hold in pretty well .
Speaker #11: Anything we should keep in mind quarter over quarter on captures or what are you seeing through your refiners .
Speaker #3: Yeah , absolutely . So we are focusing on what we can control . And what we can control is ERP . And as I said earlier , a few minutes ago .
Speaker #3: Q4 on a ERP basis started very well for us . And we are very optimistic about how Q4 shaking out , why don't you finish ?
Speaker #7: Yeah. And Alexa Joseph mentioned in his prepared remarks as well that distillate is a big piece of what we produce. We have a very high distillate yield.
Speaker #7: Distillate cracks are showing strength, so we are very optimistic about how the fourth quarter is panning out.
Speaker #1: Your next question comes from line of Paul Chang . Sorry , your next question comes the line of Paul Chang of Scotiabank . Your line is open .
Speaker #12: Hey, guys. Good morning.
Speaker #3: Good morning .
Speaker #12: Paul , the third quarter , I mean wholesale at 17 million . And that supply at say 50 to 60 minutes . Can you help us to understand that ?
Speaker #12: How much is related to your LP and how much is being given to you from the market ? In other words , that what is the core repeatable within that those two numbers ?
Speaker #12: That's the first question .
Speaker #3: Okay . So I think we have a slide on that in our on our deck that emphasizes if memory serves me right , around $40 million or so for market condition and the rest you can allocate to ERP .
Speaker #3: And as I said earlier , Paul , and you probably heard it loud and clear that Q4 , it looks very good for me .
Speaker #3: From an ERP standpoint, the $60 million is something that we are very proud of.
Speaker #12: So let me make sure I understand. So we have that 120 million that is on the other supply, and the wholesale 40 million years from the LP, and 40 million is from the LP, and then say 80 million is from the market.
Speaker #7: Yeah . So Paul , you got those numbers wrong . Let me , let me just try to clarify it for you very quickly .
Speaker #7: The $40 million is the market impact, and as I said in the last answer to the last question, wholesale is the one that is driving it.
Speaker #7: We are seeing a lot of structural strength in the business , and we have seen this trend continue in the fourth quarter , and we have clearly highlighted what the market impact was .
Speaker #7: There's obviously seasonality in it because, you know, the second quarter and third quarter are stronger than the fourth quarter and first quarter.
Speaker #7: But you've seen the fourth quarter strength continue from the third quarter this year. As far as the specific division is concerned, I can take that offline with you.
Speaker #7: Post the call .
Speaker #12: Okay . That's great . And just to is that with the so is that going to impact in your how you run Eldorado and Cold Spring ?
Speaker #12: I suppose that you probably want to keep your cool throughput for those two facilities to be below 75, even when the margin is very high.
Speaker #12: But is that how you're going to run it ? Or that you're going to look at them somewhat differently ? Because if the margin is really good , you may better off that for you not to get the slip and still get the better margin .
Speaker #12: So I want to understand that how the decision making tree is going to look like .
Speaker #7: Yeah . Paul , thanks for that question . I'll I'll try to answer this question as well . So , you know , we've seen you've seen our history .
Speaker #7: We have stayed in full compliance with the law, and we intend to stay in full compliance with that 2025 rinse obligation, as well as RV obligations.
Speaker #7: As far as the Throughputs are concerned , our throughput guidance is very clear and it is based upon , you know , the usual fourth quarter seasonality that we experience .
Speaker #1: And your last question comes from the line of Jason Gabelman of TD Cohen . Your line is open .
Speaker #6: Yeah . Hello .
Speaker #13: Thanks for taking my question . I just wanted to go back to the supply and trading results because I guess it's still kind of not completely clear how much is structural in nature .
Speaker #13: And historically , you've talked about some of the wholesale and supply strength related to Group three pricing over the Gulf Coast . So how much of the three key result and and going forward is sensitive to that spread versus other improvements that that you've made ?
Speaker #7: Jason , thanks for the question . So as you know , I mentioned in the previous answer , our whole idea of enterprise optimization plan is to reduce our dependence upon , you know , things like that , the one that you just described , like , you know , dependence , excessive dependence upon group three market or any specific market .
Speaker #7: Once you reduce that dependence , you know , these changes become extremely structural . And that is what we are seeing . So the $70 million that you saw , you know , obviously it has helped from the seasonal benefit as far as wholesale is concerned .
Speaker #7: But as far as the structural part is concerned, we are very, very confident. And that's why we are seeing the strength continue in the fourth quarter.
Speaker #7: And as far as you know , if you have more questions in terms of divisions and you know how much is flowing through the numbers , I can take that with you offline as well .
Speaker #13: Okay . Thanks . And sorry I may have missed this earlier because I didn't completely hear the question , but in terms of the monetization of that 400 million , can you talk about kind of upside and downside risks to hitting that 400 million number ?
Speaker #13: Thanks .
Speaker #3: No , I think 400 is a good number to model . And we leave it to that . Obviously , we're going to keep , as I said in my prepared remarks , we're going to keep the capital allocation policy .
Speaker #3: We have a very strict dividend rule . The cycle balanced approach to dividend , to buyback and balance sheet . And , you know , and I think the market knows by now that we had a very , very good quarter , a very , very good year in terms of return to investors .
Speaker #3: We are very proud of being the first one among all of our peers , and we are very committed to keep a rewarding our shareholders .
Speaker #13: All right . I'll leave it there . Thanks .
Speaker #1: That concludes our Q&A session . I'll now turn the conference back over to Avigail for closing remarks .
Speaker #3: Thank you. I want to thank my colleagues around the table for a great quarter. I also want to thank our Board of Directors for believing in us.
Speaker #3: I want to thank to our investors in this call of keeping up with the story and enjoy the fruits of it . And I want to mainly thank our entire employees .
Speaker #3: That makes this company as good , as good as it is . And we'll talk again in the next quarter . Thank you .