Not Nothing
Stocks have limited liability.
Disclaimer / Disclosure long DK
January 21, 2025
In the 1800s there were bank stocks that could assess owners for losses. But that time is past. Today, shares can go up a lot, but can only go down to zero. So parent minus subsidiary stubs trading beneath zero endlessly intrigue me. Maybe too much! Paradoxes can resolve in all sorts of ways, only some of which are lucrative to me. But I’m incapable of ever looking away and only rarely capable of doing anything other than buying them in size.
Delek (DK) costs less than $20 per share and owns about $25 per share of Delek Logistics Partners, LP Common Units (DKL). I squirm whenever management tells me what the stock is worth (I prefer operators’ eyes on the field than on the scoreboard), but this lays out the case fairly:
Is DK ex DLK worth $30-37? Plausible. DKL has risen significantly since they posted this slide. Even the low end of their range would imply a $54-61 value. Right of the decimal minutiae will become more and more important if the massive discount tightens. If the DK share price doubles, then I’ll resharpen my pencil and respond to “actuallys”. Meanwhile here’s what actually matters today: management is focused on unlocking the sum of the parts value slowly (perhaps too slowly!) but surely.
I expect they will succeed. Faster please. I own DK; you might want to too.
August 23, 2025
The 3:2:1 crack spread is the spot price for two barrels of gasoline plus the spot price for one barrel of heating oil minus the spot price for three barrels of WTI crude oil. It is an approximation of refinery profitability and it just hit a new 2025 high which is good for both DK and for CRAK.
Delek Welcomes EPA SRE Decision
Delek US Holdings, Inc. (NYSE: DK) welcomes the U.S. Environmental Protection Agency’s (EPA) recent decision to grant more than half of our pending small refinery exemptions for the years 2019-2024…
Delek looks forward to continuing to work with the Administration, the EPA, and the Department of Energy to advance American energy dominance and economic progress.
These exemptions address an issue that has been pending for several years and will enable our company to ensure affordable energy prices and high-paying jobs in the heart of America. We commend the Trump Administration and the EPA for clearing the backlog of petitions that have been pending for over six years. I am confident that this Administration will continue to support small refineries into the future.
- Avigal Soreq, DK CEO