Delek US Holdings, Inc.

If you would like to withdraw your question, simply press star one 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 DellIC-US second quarter earnings conference call. Participants joining me on today's call will include Abigail Sorik, President and CEO, Joseph 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 DellIC-US website. Slide two 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. Factors that could cause actual results to differ are included here as well as within 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. Abigail? Thank you, Robert.

Good morning and thank you for joining us today. DellIC continue on its transformational journey during the second quarter by making progress on several key strategic initiatives. We have made excellent progress on our enterprise optimization plan. Given the progress we have made so far, we are increasing our guidance on EOP to 130 to 170 million dollar on a run rate basis. Some of the part effort also continues to progress well. During the quarter, we completed our inter-company agreement, worked on raising liquidity at DKL and made great progress in increasing the economic separation between DK and DKL. As I always do, I will give an update on our key long-term priorities in more detail. First, self and reliable operations. We have made further progress in improving the operations throughout our company and reported record throughput in the quarter. The Big Spring refinery had a strong quarter with a strong overall throughput and operational performance. We have continued to make reliability investment that will serve us well in the future. Tyler, El Dorado and KSR also had a strong operations during the quarter. El Dorado has showed additional benefit from EOP 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 EOP with an aim to improve DK cashflow by 80 to 120 million dollar starting the second half of 2025. We focus on improving overall free cashflow 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. These structural changes are tied to our cost base, the way we run our refineries, the way we buy our crude and the way we sell our products. During the quarter, we estimate approximately 30 million dollar of this EOP cashflow improvement have flowed through our P&L. As you can see, we have already achieved our prior target of 120 million dollars of the run rate EOP benefits one quarter ahead of schedule. Today, we are further increasing our range of EOP improvements to 130 to 170 million dollars on a run rate basis starting the second half of this year. I'm extremely proud of the team for adapting a culture of continuous improvement. While there is still more work ahead, I like the direction we are heading. We also continue to make a progress towards our sum of the part goals. With the commissioning of DKL Libby 2 plan and the completion of inter-company agreements, we are making great progress in making DK and DKL economically independent. During the quarter, we increased the financial liquidity at DKL for a very successful high-eal offering. Post our inter-company agreements and the latest high-eal offering, we have over one billion of liquidity at DKL. This financial flexibility will allow DKL to continue on its growth journey and complete the economic separation from DK. As I've highlighted in the past, DKL has a strong runway of growth in both Midland and Delaware basins. DKL is making great progress in developing its sour gas gathering and acid gas injection capabilities. These capabilities will provide DKL the ability to fully capitalize on all of its growth opportunities in the Delaware basin. DKL is also having a lot of success in increasing its crude gatherings business, both in the Midland and Delaware basins. During the third quarter, we see a material increase in volumes in both Midland and Delaware systems. Derek Logistics is on track to meet its 2025 EBITDA guidance of 480 to 520 million dollars. We continue to work on additional steps to unlock the value of approximately $400 million in third-party EBITDA at DKL, such that it's fully reflected in DK share price and DKL unit price. We'll complete the DKL sum of the part in methodical manner that will create value for both DK shareholders and DKL unit holders. The final piece of our strategy is being a shareholder-friendly and having a strong balance sheet. During the quarter, we pay approximately $16 million in dividends and bought back approximately $13 million of our shares. Our strong balance sheet, improved reliability and confidence in EOP has allowed us to continue the counter-significant buyback 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, SRE petitions are an important focus area for DELEC as our pending petitions are worth more than our current market cap. The Supreme Court and the DC Circuit Court have made it clear that the EPA must thoughtfully address this problem. We believe the EPA understands the issues small refiners like DELEC face in the absence of clear policy around SRE. As a reminder, since 2019, while our SRE petitions have been pending, DELEC has remained in full compliance. We are confident in a federal 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 decay 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.