Delek US Holdings, Inc.

Good morning, ladies and gentlemen, and welcome to the DELAC U.S. Fourth Quarter Earnings Conference Call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Tuesday, February 27, 2024. I would now like to turn the conference over to Rosy Click VP Investor Relations. Please go ahead.

Good morning and welcome to the Dell at U.S. Fourth Quarter Earnings Conference Call. Participants on today's call will include Abigail Thorek, President and CEO, Joseph Israel, EVP Operation, Reuven Siegel, EVP and Chief Financial Officer, Mark Hobbs, EVP Corporate Development, Today's presentation material can be found on the investor relations section of the DELIC US website. Slide two contains our safe harbor statement regarding forward-looking statements. We'll be making forward-looking statements during today's call. These statements involve risks and uncertainties that may cause actual results to differ materially from today's comments. Factors that could cause actual results to differ are included here as well as in our SEC filing. The company assumes no obligation to update any forward-looking statements. I will now turn the call over to Abigail for opening remarks.

Thank you, Rosie. Good morning and thank you for joining us today. During the fourth quarter, our operation ran well at the higher end of our guidance. We did a good job of focusing on what we could control. With that, I would like to thank each member of the DELEC team. From a market perspective, During the quarter, we saw a weakness in product demand consistent with the seasonal trend. In refining, we achieved a record total throughput in the quarter, but still few opportunities for further operational improvement. Joseph will provide the details of our refinery operation and progress at Big Spring. We delivered another record quarter in our logistics segment. The consistent strong performance from our logistics segment validates our favorable position in the permanent base. Our reader segment reported its best Q4 outside of COVID year 2020. Turning to the full year, 2023 was a strong year for DELEC. We achieved $950 million of adjusted EBITDA. We made significant progress on our key objectives. As a reminder, they are operational excellence, financial strength and shareholder return, and executing our strategic initiatives. In terms of operational excellence, our team delivered a solid performance across all businesses this year. We made strategic investment in our people and assets. This improved our foundation for profitable and sustainable growth. Our planned major turnaround of the Tyler Refinery was completed on time, on budget, and with no recordable incidents. The result was improved reliability, yield recovery, and stronger capturing. We are very focused on our safety practices and pushing for constant improvement. I'm pleased to report that 2023 was our best year on record for safety performance. This includes personal, and process safety. Turning to financial strength and shareholder return. We continue to be shareholder friendly. In 2023, we return $146 million of shareholders to dividend and share buyback. We also improve our financial position by using our strong cash flow to reduce debt by $454 million. We made progress on our strategic initiatives As a result of our cost reduction effort, we found more efficient ways of working. This has delivered a tangible result. For example, our inventory management has resulted in improvement in both earning and debt level. We are making progress to reach our goal of $100 million run rate cost reduction. Lastly, significant headway was made towards unlocking value intrinsic in our business Now, turning to 2024. Our key priorities have not wavered. We'll continue our drive towards operational excellence, staying focused, and safe and reliable operation. We have turnaround of our Broad Springs Refinery in Q4 of 2024. Joseph will give context on the improvement we expect post turnaround. We'll also talk about additional initiatives we are undertaking in the refining segment. Financial strength and shareholder return will remain key. We believe we are well positioned to capture opportunities. We'll continue our disciplined capital allocation with the best interest of our stakeholders in mind. We look to deliver strong portfolio performance and results. We'll continue to optimize the balance sheet. and remain committed to sustainable and competitive shareholder returns. In 2023, we return $146 million to shareholders. $85 million of this was share buyback. As we demonstrate in 2023, we are committed to shareholder returns based upon free cash flow. As we execute 2024, we will remain and maintain this approach. and will keep a balanced approach between improving our financial strength and shareholder returns. On our strategic initiatives, we'll remain focused and advanced. For 2024, we estimate our CAPEX to be approximately $330 million, which reflects a reduction from 2023 level. The capital program show our dedication to maintain and safe reliable operation, enhancing our portfolio with strategic growth projects, and delivering shareholder value while maintaining our financial strength and flexibility. In 2024, we will continue to explore opportunities in the energy transition space that meet our return to capital objectives. We announced earlier this month that our big spring refinery was selected but the Department of Energy for a project that will advance carbon capture technology, a safe, environmental, responsible manner. This project will serve our industry well into the decades to come. Now, I would like to turn the call over to Joseph, who will provide additional detail on our operation.