Why Delek US Holdings, Inc. (DK) Stock Crashed This Week
Theodore QuinnSunday, Apr 6, 2025 1:50 am ET

The energy sector has been on a rollercoaster ride this week, and Delek US Holdings, Inc. (NYSE:DK) has been one of the most notable casualties. The stock plummeted by 19.71% between March 27 and April 3, 2025, leaving investors scrambling for answers. The decline can be attributed to a perfect storm of macroeconomic factors and company-specific challenges.

The global energy industry faced a major setback this week due to concerns over an escalating global trade war and a looming economic slowdown. China's retaliatory tariffs of 34% on all US goods led to a plunge in global oil prices by over 8%, reaching their lowest close since the height of the Covid-19 pandemic in 2021. Additionally, the US natural gas price at Henry Hub fell by around 7.5% amid broad market selling. These factors have weighed down energy prices, including those of Delek US Holdings, Inc.
Delek US Holdings, Inc. (NYSE:DK) is a diversified downstream energy company specializing in petroleum refining, asphalt, renewable fuels, and logistics. The stock of Delek US Holdings, Inc. (NYSE:DK) continues to plunge and hit a 52-week low of $11.51 on April 4 as the company is faced with several challenges, including potential supply disruptions due to an escalating global trade war, competition in its retail fuel business, and reliance on the depleting Permian Basin for crude supply. The massive decline in global oil prices is also set to reduce DK’s margins. Moreover, the share price was also affected after the company reported a net loss of $413.8 million in Q4 2024, resulting in an adjusted loss per share of $2.54. Delek’s revenue of $2.37 billion during the quarter was also down 41.38% YoY and missed market expectations by over $201 million.
To make matters worse, OPEC+ decided to accelerate plans for output increases, aiming to supply 411,000 barrels per day (bpd) to the market in May, up from the previously planned 135,000 bpd. This decision led Goldman Sachs analysts to sharply reduce their December 2025 forecasts, cutting Brent and WTI targets by $5 each to $66 and $62 per barrel, respectively.
Delek US Holdings, Inc. is not alone in its struggles. Other energy stocks have also taken a hit this week, as the broader sector grapples with the fallout from the trade war and economic slowdown. However, Delek's specific challenges, including its reliance on the Permian Basin and its retail fuel business, have made it particularly vulnerable to these headwinds.
So, what can investors expect from Delek US Holdings, Inc. in the coming weeks and months? The company has taken steps to mitigate these risks, including focusing on operational excellence and strategic investments. For instance, during the fourth quarter of 2023, Delek US achieved record total throughput in refining, demonstrating its ability to operate efficiently despite challenging market conditions. The company has also made strategic investments to support safe and reliable operations, enhance its portfolio with strategic growth projects, and deliver shareholder value while maintaining financial strength and flexibility.
Furthermore, Delek US Holdings, Inc. has taken steps to improve its financial position. In the first quarter of 2024, the company successfully executed Delek Logistics debt and equity offerings, improving liquidity to approximately $800 million and enhancing its financial strength and flexibility. The company has also initiated a process to unlock the value inherent in the retail business, aiming to realize value for its stakeholders.
In summary, the escalating global trade war and the potential for an economic slowdown have negatively impacted Delek US Holdings, Inc.'s stock performance. However, the company is employing strategies such as operational excellence, strategic investments, and financial improvements to mitigate these risks and maintain its competitive position in the market. Investors should keep a close eye on Delek US Holdings, Inc. in the coming weeks and months, as the company navigates these challenging times.
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