Thank you for standing by. My name is Jayle, and I'll be your conference operator today. I'd now like to pass the call off to Robert. Please go ahead.

Good morning, and welcome to the Delek US third quarter earnings conference call. Participants joining me on today's call will include Avigal Soreq, President and CEO; Joseph Israel, EVP, Operations; and Mark Hobbs, EVP, Chief Financial Officer. Today's presentation material can be found on the Investor Relations section of the Delek US website. Slide 2 contains our safe harbor statement regarding forward-looking information. Any forward-looking information shared during today's call will include 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 filings. The company assumes no obligation to update any forward-looking information. I will now turn the call over to Avigal for opening remarks. Avigal?

Thank you, Robert. Good morning, and thank you for joining us today. In the third quarter, excluding SREs, Delek reported strong adjusted EPS of $1.52 and adjusted EBITDA of approximately $319 million. These results reflect Delek's strong momentum. We had excellent contributions from our enterprise optimization plan with notable progress from all business units. As a result, we are again increasing our EOP guidance to at least $180 million on an annual run rate basis. During the third quarter, the EPA approved several of our pending 2019 to 2024 SRE petitions, and we expect to receive proceeds of approximately $400 million for the monetization of the granted RINs. We are also encouraged by the guidance the EPA has issued about SREs for future RVO. From everything we see today, we continue to expect appropriate action on SREs in the future. Some of the part efforts also continue to progress well. DKL continued to make progress in improving its premier position in the Permian Basin. As a result of the strong progress DKL has made this year, we are increasing DKL's full-year EBITDA guidance to between $500 million and $520 million. As I always do, I will now give an update on our key long-term priorities in more detail. First, safe and reliable operations. We had a strong operational quarter in our refining system. SRE had a record throughput quarter, and it's continuing its strong momentum since its turnaround last year. Congratulations across Tyler, El Dorado, and Big Spring also had strong operations. Now I would like to discuss our EOP progress. As a reminder, we started EOP with an aim to improve DK cash flow by $80 million to $120 million on a run rate basis, starting in the second half of 2025. The structural changes we are making in the way we run our company are delivering meaningful results across all business units. In the third quarter, supply and marketing had a strong contribution, driven by structural improvement in our wholesale business. We are very proud of the way the commercial team is looking across the entire wholesale value chain to serve our customers. During the third quarter, we estimate approximately $60 million of EOP contribution to our P&L. Based on these strong results, we are again increasing our target of an annual run rate EOP improvement from the midpoint of $150 million to at least $180 million. I'm proud of how EOP has become a cornerstone of Delek's continuous improvement culture, and I'm confident EOP will remain a core strength well into Delek's future. As I mentioned before, during the third quarter, the EPA cleared the backlog of pending SRE petitions from 2019 to 2024. We see this announcement as a critical part of the current administration and EPA energy policy. This SRE announcement has three important implications for our business. First, for the grant years of 2023 and 2024, we have followed a proactive strategy to monetize the granted RINs. We expect to receive approximately $400 million in proceeds from this monetization over the next 6 to 9 months. We intend to prudently use this cash flow in line with our consistent capital allocation framework. For years 2019 to 2022, while we appreciate the EPA granting our petition, the EPA remedy is invalid and encourages the strategy followed by our peers who chose not to comply. We are making efforts to get full value from these grants in line with the intention of the RFS law. I'm confident the EPA will continue its methodical approach to SRE grants, furthering energy dominance and supporting high-paying jobs in the heart of rural America. I'm also proud of the progress DKL is making. With the commissioning of DKL Libby 2 plant, and the completion of intercompany agreements, we are making significant progress in making DK and DKL economically independent. We are working on an industry-leading comprehensive sour gas solution, including gathering, treatment, acid gas injection, and processing, along with providing market access for residue gas and NGLs. This capability will provide DKL the ability to fully capitalize on all of its growth opportunities in the Delaware Basin and maintain its best-in-class EBITDA growth and distribution yield. Based on the progress Delek Logistics has made, we are increasing DKL's full-year 2025 EBITDA guidance to between $500 million and $520 million. This final piece of our strategy is being shareholder-friendly and maintaining a strong balance sheet. During the quarter, we paid approximately $15 million in dividends and bought back approximately $15 million of our shares. Our strong balance sheet, improved reliability, and confidence in EOP has enabled us to continue counter-cyclical buybacks in 2025. I'm proud to say that over the last 12 months, Delek had the highest total return yield, buyback plus dividend among all of its refining peers. We remain committed to a disciplined and balanced approach to capital allocation and look forward to continuing to reward our shareholders. In closing, thank you to our team for their dedication. We are optimistic about finishing 2025 strong, and building on this momentum into the future. Now I will turn the call over to Joseph, who will provide additional color on our operations.

Thank you, Avigal. Operations reliability in the third quarter was consistent with our guidance with the third consecutive record high throughput set in Krotz Springs. Our refining system continues to implement EOP initiatives at all sites. We have been successful in debottlenecking, improving liquid yield recovery, maximizing production value, and optimizing sulfur and benzene balances. At the same time, the commercial team has reworked contracts and optimized our new logistics to expand market optionality. Starting with Tyler, total throughput in the third quarter was 76,000 barrels per day. Our production margin was $11.32 per barrel and operating expenses were $4.93 per barrel. For the fourth quarter, our estimated total throughput in Tyler is in the range of 70,000 to 78,000 barrels per day. In El Dorado, total throughput in the third quarter was approximately 83,000 barrels per day. Our production margin was $7.43 per barrel and operating expenses were $4.50 per barrel. EOP implementation is well reflected in our margin realization as we continue to trend toward our $2 per barrel of incremental capture in our El Dorado system. Our planned throughput for the fourth quarter is in the range of 67,000 to 75,000 barrels per day, considering seasonal trends. In Big Spring, total throughput in the third quarter was approximately 70,000 barrels per day. Our production margin was $10.99 per barrel and operating expenses were $7.20 per barrel. In the fourth quarter, the estimated throughput is in the range of 62,000 to 70,000 barrels per day. In Krotz Springs, total throughput in the third quarter was approximately 85,000 barrels per day. Our production margin was $9.01 per barrel and operating expenses in the quarter were $5.35 per barrel. Our planned throughput for the fourth quarter is in the range of 72,000 to 80,000 barrels per day. Our implied system throughput target for the fourth quarter is in the range of 271,000 to 303,000 barrels per day. This late outlook for the fourth quarter is strong as we are pushing our 42% distillate capability system accordingly. Moving on to the commercial front. Excluding SREs, supply and marketing contributed approximately $130 million in the quarter. Of that, approximately $70 million was generated by wholesale marketing. Asphalt contributed a gain of approximately $6 million, with the remaining contribution coming from supply. In summary, the third quarter marked another successful execution of our operating plans. The focus on the fundamentals has allowed us to improve capture through EOP.

Thank you, Joseph. Referring to Slide 5, we show the breakout of adjusted EBITDA and adjusted EPS, approximately $319 million and $1.52 per share, respectively, excluding SREs. This breakout removes the impact of historical SREs of $281 million and the impact of 50% RVO exemption recognition for the first nine months of 2025 of approximately $160 million. Moving to Slide 16. For the third quarter, Delek had net income of $178 million or $2.93 per share. Adjusted net income was $434 million or $7.13 per share, and adjusted EBITDA was approximately $760 million. On Slide 18, the waterfall of adjusted EBITDA from the second quarter of 2025 to the third quarter shows that there were three main drivers for the increase in EBITDA. First, a $583 million increase in refining reflects improved refining margins as well as an increase of $281 million due to our recognition of historical SREs, the $160 million impact of our 50% RVO exemption recognition, and the improvement in our overall business that continues to be positively impacted by our EOP initiatives. Second, in the Logistics segment, we continue to have another strong quarter, delivering approximately $132 million in adjusted EBITDA, about an $11 million increase over our previous record for quarterly adjusted EBITDA achieved in the second quarter. These improvements were mitigated by slightly higher costs in the Corporate segment of $5.2 million compared to the prior period. Moving to Slide 19 to discuss cash flow. Cash flow provided by operations was $44 million. This includes our net income for the period, adjusted for noncash items and a net outflow related to changes in working capital of $106 million. The working capital movements include the timing impact related to SREs granted in the third quarter, as we expect monetization of the grants to occur over the next 6 to 9 months. When adjusting for working capital, cash flow from operations was $150 million. This was an improvement of $202 million when compared to the third quarter of last year. Investing activities of $103 million includes approximately $44 million for growth projects, primarily at DKL. Financing activities of $75 million includes $15 million in share repurchases, approximately $15 million in dividend payments, and approximately $22 million in DKL distribution payments to public unitholders. On Slide 20, we show our actual progress under the 2025 capital program. Third quarter capital expenditures were $91 million. Approximately $50 million of this spend was in the Logistics segment, where we had $44 million in growth capital at DKL, primarily related to our crude and natural gas G&P initiatives. All of the remaining capital spend during the quarter was in the Refining segment, addressing planned sustaining capital initiatives. Our net debt position is broken out between Delek and Delek Logistics on Slide 21. Excluding Delek Logistics, we spent approximately $71 million on cash return to shareholders and capital expenditures in the third quarter, while our Delek stand-alone net debt decreased slightly to $265 million at the end of the quarter. Moving now to Slide 22, where we cover fourth quarter outlook items. In addition to the guidance Joseph provided, for the fourth quarter of 2025, we expect operating expenses to be between $205 million and $220 million. Our guidance for the fourth quarter incorporates increased operating expenses associated with the ramp-up of our new Libby 2 plant at DKL. G&A is expected to be between $52 million and $57 million. D&A is expected to be between $100 million and $110 million. And net interest expense is expected to be between $85 million and $95 million. With that, we will now open the call for questions.

Your first question comes from the line of Doug Leggate of Wolfe Research.

Hopefully, I'll make this relatively easy. I have two questions related to the SREs. You provided a significant update this morning. My first question concerns the refining throughput guidance since you've indicated a RVO risk number for 2025. It seems that all four of your refineries will be at or below the SRE threshold. If that's the case, why shouldn't we consider the RVO risk at 100%, essentially implying that you will receive the full amount? How should we approach this going forward? My second question is more hypothetical. Given that we currently have a Trump EPA, and since you've received the SREs under the Trump administration, we can probably assume a minimum of four years for the EPA duration. What are your thoughts on whether the rulemaking and legal situation could extend beyond this administration? Could this potentially result in a long-term SRE exemption for Delek?

Doug, thank you for the great question. And I will start, with your permission, obviously, with giving a bit of an overview on SRE and looking at it from the big picture, and then Mohit will finish the technical part of the question, if you're okay with it. So listen, we said it very clearly in our financials that we have a $200 million impact on Q3 earnings, right? And I also said on my prepared remarks that we have $400 million of cash coming to us in the next 6 to 9 months. And I want to make another point very, very clear, right? We're going to use this cash prudently in line with our overall capital allocation guidance we have given many times. So we are not going to deviate from that. So I wanted to take a moment or two to talk about the 2019 to 2022 RINs. While we really appreciate the EPA clearing the backlog, obviously, the EPA remedy is invalid. We all understand it, right? It's very clear. But we believe that the relief and eligibility are not discretionary items. Those are two very important words that I just mentioned. And we are committed and confident to provide our shareholders and company with full value of those pending petitions from 2019 to 2022, as both the court and the law are behind us, and we're going to follow through and make it happen. We have seen precedent in the past around that, and we are confident we'll get it as well. Our throughput is completely normal with regular seasonality, so we can check that box. And I will let Mohit finish.

Yes. Thanks, Doug. Thanks for the question. As far as the 50% piece is concerned for 2025, that is not our expectation. Our expectation is that 100% of our refining capacity qualifies for SREs, and we expect to receive 100% of SREs for 2025 as we go forward. If you look at your other question about the sustainability of these SREs beyond the current administration, we believe we are a country of law where the law is followed, and the law is clearly on our side. The courts and their decisions are on our side, and we are very optimistic that this will transcend beyond the current administration.

Your next question comes from the line of Manav Gupta of UBS.

Congrats on a great quarter, guys. I just have a quick clarification question. The $688.6 million reported in total adjusted refining margin for the quarter, does it include the SRE benefits? Or does that exclude it? And on a similar line, the Slide 17, the margins that you have reported gross margin, it doesn't look like they have any SRE benefits. But could you clarify? Some of your peers are reporting these gross margins with the benefits included. So if you could clarify on those things.

Yes, it's easy. $688 million includes SRE benefits, and the margins that we reported do not include that. So it's very simple to answer. I don't know if Mohit or Mark, if you have anything to add.

Yes. Manav, I'll just make one more point. So the reported gross margins for the refineries actually also include the RVO obligation in it. So the RVO obligation that we have flows through our gross margin. So they are reported post that obligation.

And one quick question more. I understand it's more on the midstream side. But look, Permian Sour Gas opportunity just continues to expand. You guys were there before many others. Help us understand what it means for, obviously, your midstream business, and then obviously, how DK benefits just because DKL benefits from this growing Permian Sour Gas opportunity?

Yes. Manav, thank you for the great question. The sour gas opportunity in the Delaware Basin is something that we are all very excited about. We see that opportunity. We were ahead of the curve with the 3Bear acquisition and also ahead of the curve with the 2Water acquisition. You see, there are multiple opportunities today; nothing that you can buy those assets at present. Reuven, here next to me, is going to give a more extended discussion about the sour gas. That's a very big deal for us, and we were at the right timing with the right permits, and we are very happy about that.

Thank you, Avigal. The construction and start-up of Libby 2 has been above our expectations, on time, on budget. Originally, and based on producers' forecasts when we started Libby 2, we anticipated to fill the plant with sweet gas, but the landscape has changed, and producer needs solutions and rapid solutions for sour gas. As a result, we accelerated our sour programs to provide solutions on a more rapid timeline. We have very, very high confidence in not only filling up Libby 2 with sour gas, but because of the full sweet, sour gas, crude, and water solutions that we provide, we will need to expand processing capacity earlier than our previous expectations around sour.

Your next question comes from the line of Vikram Bagri of Citi.

I wanted to ask about SRE cash. When does it hit the balance sheet? I was wondering if you've done the RIN sales with deferred delivery already or you're going to sell RINs in the open market, and liquidity will be there?

Yes. So Vikram, thank you for joining us today. We'll stick to the answer we gave in the prepared remarks that we expect to see the cash in 6 to 9 months, and we leave the technicalities of trading outside of this call. And we are very happy about the improvement of the position and are very optimistic about SRE in general, and we'll leave it at that.

And as a follow-up, you've raised the guidance. It has been raised multiple times, the EOP cash savings guidance. Can you talk about what the drivers of the most recent increase were? What initiatives you've taken? If there have been any changes in underlying assumptions that drove the increase, or you've seen opportunities and where those opportunities are?

Yes. Thank you for asking that question. That's really something I'm very proud of and love to talk about. I have a lot of energy around the topic. Listen, first of all, EOP, it's not a project; it's a lifestyle. And it's a lifestyle across the organization. We see how well it runs across our company and how confident we are with that, right? It's not just cost; it's cost and margin. We've seen a significant improvement in margin this quarter. We have 73 initiatives we are running on a weekly and daily basis to make that happen. It’s very clear in our earnings, in our EBITDA, and in our cash flow. So all of that has cleared very well for us. A majority of those projects are in margin, but they are not related for the most part to market conditions. So that is another point of strength in our program. As you said correctly, this is the fourth time we are increasing the guidance. We started from a midpoint of $100 million, and now we are saying over $180 million, and that's going very well for us. So more to come. I do want to make another important comment. We started Q4 very well, and we see more upside on that going into this quarter.

Your next question comes from the line of Alexa Petrick of Goldman Sachs.

We wanted to ask, it looks like the wholesale side was particularly strong this quarter. I think you mentioned some structural improvements, and we know it's also been part of the EOP initiative. So can you unpack that a little, talk about some of the progress there?

Yes, absolutely. The bottom line is that's a bigger portion of the EOP progress we are making. I will let Mohit, who has been very close to that, answer the rest of it.

Yes. I think wholesale is a great enterprise optimization plan story, and we have been improving the business in three phases. The first phase started with our refining operations, and we started producing a lot of different kinds of products that we can sell in the market. We improved our logistics to get access to different types of markets, and that has helped our wholesale business over the last 12 months or so. In the second phase, we started renegotiating our contracts. So these contracts have been renegotiated, and they are getting us the full value that our products deserve, based upon the markets that we serve. And the last phase, phase three, which we are in currently, hopefully, it's not the last phase, but it's the third phase, we are exiting some of the markets that are not as profitable for us, and we are entering new markets that are more profitable for us. A combination of this strength is shown in our numbers. And as Avigal mentioned, this strength has continued in the fourth quarter, and we expect to keep delivering these results on a go-forward basis.

And just a follow-up, recognize we're still early into Q4, but we're seeing cracks hold in pretty well. Anything we should keep in mind quarter-over-quarter on captures? Or what are you seeing through your refiners?

Yes, absolutely. We are focusing on what we can control, and what we can control is EOP. As I said earlier, a few minutes ago, Q4 on an EOP basis started very well for us, and we are very optimistic about how Q4 is shaping out. Mohit, why don't you finish?

Yes. And Alexa, Joseph mentioned in his prepared remarks as well that distillate is a significant piece of what we produce. We have a very high distillate yield. Distillate cracks are showing strength. So we are very optimistic about how the fourth quarter is panning out.

Your next question comes from the line of Paul Cheng of Scotiabank.

The third quarter, I mean, wholesale at $70 million and the supply at, say, $50 million to $60 million. Can you help us to understand how much is related to your EOP and how much is being given to you from the market? In other words, what is, say, core repeatable within those two numbers? That's the first question.

Okay. So I think we have a slide on that in our deck that emphasizes, if memory serves me right, around $40 million or so for market conditions and the rest can be allocated to EOP. And as I said earlier, Paul, and you probably heard it loud and clear that Q4 looks very good from an EOP standpoint. And the $60 million of EOP is something that we are very proud of.

So Avigal, let me ensure I have this right. Out of the $120 million from supply and wholesale, $40 million is attributed to the EOP, and the remaining $80 million comes from the market?

Yes. So Paul, you got those numbers wrong. Let me just try to clarify it for you very quickly. The $40 million is the market impact. As I said in the last answer to the last question, wholesale is the one which is driving it. We are seeing a lot of structural strength in the business. We have seen this trend continue in the fourth quarter. There is obviously seasonality in it, because second quarter and third quarter are stronger than the fourth quarter and first quarter, but we've seen the fourth quarter strength continue from the third quarter this year. And as far as the specific division is concerned, I can take that offline with you post the call.

And just curious that with the SRE, is that going to impact how you run El Dorado and Krotz Springs? I suppose you probably want to keep your crude throughput for those two facilities to be below 75, even when the margin is very high. Is that how you're going to run it, or are you going to look at them somewhat differently? Because if the margin is really good, it may be better off for you not to get the SRE and still get a better margin. So I want to understand how the decision-making process is going to look like.

Yes, Paul, thank you for the question. I'll do my best to respond. As you are aware from our history, we have consistently adhered to legal requirements and we plan to maintain compliance with the 2025 RIN and RVO obligations. Regarding throughput, our guidance is clear and is grounded in the usual seasonal patterns we experience in the fourth quarter.

And your last question comes from the line of Jason Gabelman of TD Cowen.

I just wanted to go back to the supply and trading results, because I guess it's still kind of not completely clear how much is structural in nature. And historically, you've talked about some of the wholesale and supply strength related to Group 3 pricing over the Gulf Coast. So how much of the 3Q result and going forward is sensitive to that spread versus other improvements that you've made?

Jason, thanks for the question. So as I've mentioned in the previous answer, our whole idea of the enterprise optimization plan is to reduce our dependence upon things like that, the one that you just described, excessive dependence on the Group 3 market or any specific market. Once you reduce that dependence, these changes become extremely structural, and that is what we are seeing. So the $70 million that you saw, obviously, it has helped from the seasonal benefit as far as wholesale is concerned. But as far as the structural part is concerned, we are very, very confident, and that's why we are seeing the strength continue in the fourth quarter. If you have more questions regarding divisions and how much is flowing through the numbers, I can take that with you offline as well.

And sorry, I may have missed this earlier, because I didn't completely hear the question. But in terms of the monetization of that $400 million, can you talk about kind of upside and downside risks to hitting that $400 million number?

No. I think $400 million is a good number to model, and we'll leave it at that. Obviously, we're going to keep, as I said in my prepared remarks, our capital allocation policy, which includes a very strict dividend throughout the cycle and a balanced approach to dividend, buybacks, and balance sheet. I think the market knows by now that we had a very, very good quarter and a very, very good year in terms of returns to investors. We are very proud of being the first ones among all of our peers, and we are very committed to continue rewarding our shareholders.

That concludes our Q&A session. I will now turn the conference back over to Avigal for closing remarks.

Thank you. I want to thank my colleagues around the table for a great quarter. I want to thank our Board of Directors for trusting us. I want to thank our investors on this call for keeping up with the story, and enjoying the fruits of it. Most importantly, I want to thank our entire team for making this company as good as it is. We'll talk again in the next quarter. Thank you.

This concludes today's conference call. You may now disconnect.