DK - Delek update - capital spend higher in 2022 throughput lower in 2021

Delek (NYSE:DK) is out with a robust capital budget for 2022, planning to invest $250-260m in the business next year. Having originally forecast $150m of capital spend in 2021, a forecast which has since risen to $200m+, Delek is expecting to spend an additional $50m in 2022, largely on discretionary midstream and retail projects. As Permian production reaches all time highs, Delek is spending to build out it's Permian gathering system, with an expectation of 15% IRRs on the project. Additionally, Delek will increase spend to build out four new retail locations next year. In addition to the capital spending update, Delek flagged minor maintenance at the Tyler refinery in Q4 2021, and reduced throughput guidance for the quarter from 280 - 290kb/d to an updated 275 - 280kb/d With Carl Icahn and his controlled CVR Energy (NYSE:CVI) calling off its battle with Delek earlier in the year, Management appears ready

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Delek update - capital spend higher in 2022, throughput lower in 2021