Refining Segment

Founded: 2005

Operations: Tyler, TX.

Located in a niche, inland market. Our refining segment is comprised of a stand-alone, high-conversion, moderate complexity refinery. The Tyler refinery has a crude distillation (production) capacity of 60,000 barrels-per-day and a nelson complexity of ~9.5. More than 90% of the Tyler refinery’s production was light product (gasoline, diesel) in 2009.

Located in a market with high barriers to entry. The refinery is the only supplier of a full range of refined petroleum products within a radius of approximately 100 miles.

Majority of product sold into the local market. The refinery delivers nearly all of its gasoline and diesel fuel production into the Tyler market using a multi-line terminal at its refinery. Our refinery’s ten largest customers accounted for more than 60% of refining segment sales in 2009. Customers in the refining segment include ExxonMobil, Valero Marketing and Supply, Murphy Oil USA, Truman Arnold, the U.S. government, Motiva and Chevron, among others.

Recent upgrades stand to improve profitability of the facility. Since acquiring the Tyler refinery in 2005, Delek Refining has invested hundreds of millions of dollars in discretionary upgrades, maintenance and regulatory projects at the facility, positioning it for improved profitability and efficiency. In 2009 alone, Delek Refining spent more than $150 million on a maintenance turnaround (completed approximately once every four years) and a series of crude optimization projects designed to allow the facility to process more heavy, sour crude. Historically, heavier, more sour crudes have been cost advantaged when compared to the light sweet crudes (such as West Texas Intermediate) traditionally processed at the Tyler facility.