What can DK do to improve earnings in 2025?

Delek US Holdings (DK) can take several strategic steps to improve its earnings in 2025:

1. **Focus on Operational Efficiency**: Continue to focus on safe and reliable operations, as well as further progress on midstream deconsolidation. This could involve optimizing the performance of its refineries and logistics operations to reduce costs and increase throughput.
2. **Enterprise Optimization Plan (EOP)**: Implement the EOP effectively to increase overall profitability by at least $100 million. This plan should target specific initiatives that can deliver tangible results in terms of cost savings and revenue growth.
3. **Delek Logistics (DKL) Growth**: Leverage the strong performance of DKL, which has achieved record quarterly EBITDA and is expected to guide even higher in 2025. The company should continue to capitalize on DKL's success by focusing on third-party cash flows and optimizing its own operations to benefit from DKL's growth.
4. **Shareholder Value Creation**: Maintain a focus on shareholder value creation through dividends and share buybacks. This could involve increasing dividend payouts or executing share buybacks, which can boost investor confidence and enhance the company's market perception.
5. **Financial Discipline**: Monitor and manage net debt and leverage carefully. By maintaining a disciplined approach to capital expenditures and cash flow management, DK can ensure financial stability and flexibility to invest in growth opportunities that enhance earnings potential.
6. **Market Conditions**: Adapt to challenging market conditions by optimizing pricing strategies and product mix. By aligning production with market demands and adjusting pricing to reflect market conditions, DK can maximize revenue and profitability.

By executing these strategies, Delek US Holdings can position itself for improved earnings in 2025, building on the progress made in 2024 towards achieving its Sum of the Parts goals and enhancing overall profitability.