Summary Observations Regarding CVR's Campaign
Research Analysts Agree with Delek
"It is ironic that CVI claims DK'desperately needs a new strategic direction' despite the two companies operating in essentially the same
business, in the same markets, at the same scale. CVI's letter could have been motivated to push DK to close a plant in a market CVI is
exposed to, or conversely to improve the share price to a point from which it can unload its stake... Regardless, DK has already taken steps
to improve its business, including eliminating the dividend, reducing costs, and pulling back on Krotz operations. We expect the company to
continue to be proactive in the downturn."
- Cowen (1/14/2021)
"Given recent cuts in the dividend, capex and opex, DK has addressed near-term risks. Its low-risk and low-cost entry to renewable
diesel offers favorable risk/reward and is consistent with our Overweight rating. Its MLP subsidiary offers and retail ops offer
consistent performance and CFFO stability."
- Wells Fargo (2/23/2021)
"DK has recently strengthened its Board of Directors, adding members of diverse backgrounds that should
help evolve the company beyond traditional oil and gas. In that sense we view the recommendations of major shareholder CVR
Energy as somewhat redundant as downstream/oil and gas expertise is already covered by current members."
- Mizuho (3/17/2021)
"We see management undertaking value enhancing initiatives to eliminate the valuation discount, with an emphasis on capturing
the full chain of opportunity available."
Delek
Note: Permission to quote was neither sought nor provided
US
- Raymond James (4/7/2021)
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