Delek US Holdings, Inc.

Good morning and welcome to the DELEC U.S. Holdings second quarter 2020 financial results. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Blake Fernandez, Senior Vice President of Investor Relations. Please go ahead.

Blake Fernandez Morning. I would like to thank everyone for joining us on today's conference call and webcast to discuss Delic U.S. Holdings' second quarter 2020 financial results. Joining me on today's call is Uzi Umeen, our Chairman, President, and CEO Ruben Spiegel, EVP and CFO, and Luis Lavella, EVP and President of Refining, as well as other members of our management team. The presentation materials used during today's call can be found on the investor relations section of the DELIC US website. As a reminder, this conference call may contain forward-looking statements as that term is defined under federal securities laws. Please see slide two for the safe harbor statement. In addition to reporting financial results in accordance with generally accepted accounting principles or GAAP, we report certain non-GAAP financial results. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to comparable GAAP results, which can be found in the press release, which is posted on the investor relations segment of the website. Our prepared remarks are being made assuming that the earnings press release has been reviewed and we're covering less segment and market information than incorporated into the second quarter release. On today's call, Reuven will review financial performance, I will cover capitalization, liquidity, and guidance. Luis will cover operations and CapEx, and then Uzi will offer a few closing strategic comments. With that, I will turn the call over to Ruben.

Thank you, Blake. On an adjusted basis for the second quarter of 2020, Delic U.S. reported a net loss of $111 million, or $1.50 per share, compared to net income of $98 million, or $1.27 per diluted share in the prior year period. Our adjusted EBITDA loss was 85 million in the second quarter of 2020, compared to a 211 million income in the prior year period. Adjusted results include 75 million of after-tax headwinds, or $1.02 per share. This is comprised of an after-tax other inventory and purchase product loss of 92 million, realized hedging losses of 104 million after-tax, partially offset by a fixed price could benefit at our Tyler refinery of 85 million after tax. Lastly, adjusted results reflect the reversal of the 36 million tax headwind disclosed in the first quarter of 2020. I would point out that the other inventory and purchase products mentioned are separate from the LCM inventory impacts that are already excluded from adjusted results. On slide four, we provide a cash flow waterfall. In the second quarter of 2020, We had negative cash flow of approximately $169 million from continuing operations, which includes a working capital detriment of $363 million. Within working capital is $130 million of income tax credit, where we expect to receive the cash in the first part of 2021. Finally, cash capital expenditure in the quarter were $15 million. With that, I will turn it over to Blake.