Summary Observations Regarding CVR's Campaign
Krotz Springs & El Dorado Refineries Provide Upside Opportunity
CVR Proposal: Shut Down or Convert Krotz Springs and El Dorado Refineries
•
•
Recent investments at the Krotz Springs and El Dorado refineries improve ability
to capture margins as the macro environment improves
Overall, Delek has been one of the lowest cost refiners on an operating expense
per barrel basis (1)
The Board and management team regularly review alternatives regarding our
refining assets, and we believe retaining Krotz Springs and El Dorado as operated
refineries provides significant value and potential upside for Delek shareholders
Both Krotz Springs and El Dorado are already being reviewed for the following
initiatives:
-
Renewable Diesel Production
-
Waste to Fuel: Pyrolysis and Gasification
We will continue to
evaluate alternatives
with respect to these
refineries and will take
action if beneficial to
shareholders
•
Carbon Capture
CVR is a competitor in end markets served by El Dorado, including the sale of
refined products into Little Rock, and in sourcing crude oil in Oklahoma and West
Texas, as well as an indirect competitor with Krotz Springs
Delek
(1) Based on Scotia Research as of 3/15/2021; peer set includes: CVR Energy, Inc., HollyFrontier Corporation, PBF Energy Inc., Phillips 66 and Valero Energy Corporation
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