Delek US Holdings, Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending September 30, 2024. The company experienced a substantial decline in net revenues, which fell to $3,042.4 million for the third quarter, down 34.3% from $4,628.8 million in the same period of 2023. For the nine months ended September 30, 2024, net revenues totaled $9,478.5 million, a decrease of 24.3% compared to $12,525.1 million in the prior year. This decline was attributed to lower average prices for gasoline and diesel, decreased wholesale activity, and reduced sales volumes.

The company's operating performance was adversely affected, resulting in an operating loss of $(121.9) million for Q3 2024, compared to an operating income of $212.1 million in Q3 2023. The nine-month operating loss was $(88.1) million, contrasting with an operating income of $388.6 million in the same period last year. The net loss attributable to Delek for Q3 2024 was $(76.8) million, compared to a net income of $128.7 million in Q3 2023, while the nine-month net loss reached $(146.6) million, down from a net income of $184.7 million in 2023.

In terms of strategic developments, Delek completed the sale of four subsidiaries operating 249 retail fuel and convenience stores to FEMSA for $390.2 million on September 30, 2024. This transaction has been classified as discontinued operations. Additionally, on September 11, 2024, Delek Logistics acquired H2O Midstream for $229.5 million, enhancing its water disposal and recycling operations in the Midland Basin, Texas.

The company also undertook cost reduction measures, including idling biodiesel facilities due to market declines, which resulted in a $22.1 million impairment charge. Furthermore, Delek recorded a loss of $14.1 million from abandoned capital projects and $9.2 million in impairment charges for certain pipeline assets.

Financially, Delek's total current assets decreased to $2,564.8 million as of September 30, 2024, from $2,666.0 million at the end of 2023. Cash and cash equivalents increased to $1,037.6 million, while total assets decreased to $7,030.3 million. Long-term debt rose to $2,779.9 million, up from $2,555.3 million at the end of 2023. Stockholders' equity also declined to $875.4 million from $959.7 million, with retained earnings significantly reduced to $228.5 million from $430.0 million.

Overall, Delek US Holdings is navigating a challenging market environment, marked by declining revenues and strategic shifts aimed at enhancing operational efficiency and financial stability.