Letter from the CEO

The past year was one of the most challenging periods in the history of our Company.  Throughout 2009, the United States remained under the tight grip of a severe economic recession which first began in late 2007.   This recession, which now bears the dubious distinction of being the longest economic recession since the Great Depression, weighed heavily on our business for the duration of 2009.

For Delek US and others in the businesses of refining, marketing and supplying petroleum products, the year was characterized by weak profit margins, supply/demand imbalances, tight competitive conditions and continued regulatory scrutiny.  However, it was also a year where a conservative balance sheet, asset diversification and a niche market focus positioned Delek US to press onward in an otherwise dismal operating climate.  By remaining disciplined with our capital on hand and continuing to reinvest in our existing lower-risk, geographically advantaged assets, our Company weathered the storms of 2009.

While changes to the status quo may be an unwelcome disruption for some companies, we have made a business of growing our asset base during periods of cyclical transition.  In fact, many of the assets that represent the core foundation of our retail and refining segments were acquired during periods of industry decline and market turmoil.  As we enter a new year, we are confident in our ability to capitalize on the opportunities inherent in an uncertain market, much as we have in prior business cycles.  As before, we remain committed to seizing strategic opportunities without compromising balance sheet discipline, while seeking to position our business for sustainable, profitable growth, over the long-term.

Sincerely,

Ezra Uzi Yemin
President and Chief Executive Officer