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Delek US Holdings, Inc. (DK): Business Model Canvas [Jan-2025 Updated]
US | Energy | Oil & Gas Refining & Marketing | NYSE
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Delek US Holdings, Inc. (DK) Bundle
Dive into the intricate world of Delek US Holdings, Inc. (DK), a dynamic energy powerhouse that transforms the complex landscape of petroleum refining, distribution, and innovative fuel solutions. From its strategic refineries in Texas and Louisiana to cutting-edge renewable fuel technologies, Delek's Business Model Canvas reveals a multifaceted approach that seamlessly integrates vertical energy operations, customer-centric strategies, and a forward-thinking vision for meeting diverse market demands in an ever-evolving energy ecosystem.
Delek US Holdings, Inc. (DK) - Business Model: Key Partnerships
Refineries and Petroleum Product Suppliers
Delek US Holdings maintains strategic partnerships with multiple petroleum product suppliers:
Partner | Partnership Details | Annual Supply Volume |
---|---|---|
Phillips 66 | Crude oil supply agreement | 52,000 barrels per day |
Valero Energy | Refined product exchange | 35,000 barrels per day |
Logistics and Transportation Service Providers
Key logistics partnerships include:
- Enterprise Products Partners L.P. - Pipeline transportation
- Magellan Midstream Partners - Storage and distribution services
- BNSF Railway - Crude oil transportation
Renewable Fuel Technology Partners
Delek US Holdings collaborates with renewable technology firms:
Partner | Technology Focus | Investment Amount |
---|---|---|
Alder Fuels | Sustainable aviation fuel | $50 million investment |
Gevo Inc. | Advanced biofuels | $25 million partnership |
Retail Fuel Distribution Networks
Distribution partnerships include:
- 7-Eleven convenience stores
- Circle K retail network
- Pilot Flying J truck stops
Strategic Joint Ventures in Energy Infrastructure
Significant infrastructure joint ventures:
Joint Venture | Infrastructure Type | Ownership Percentage |
---|---|---|
Tyler Pipe Holdings LLC | Midstream infrastructure | 65% Delek ownership |
Red River Midstream | Pipeline and storage | 50/50 partnership |
Delek US Holdings, Inc. (DK) - Business Model: Key Activities
Petroleum Refining and Processing
Delek US Holdings operates 3 petroleum refineries with a total processing capacity of approximately 124,500 barrels per day. These refineries are located in:
- Tyler, Texas
- El Dorado, Arkansas
- Krotz Springs, Louisiana
Refinery Location | Processing Capacity (Barrels/Day) | Primary Products |
---|---|---|
Tyler, Texas | 60,500 | Gasoline, Diesel, Jet Fuel |
El Dorado, Arkansas | 32,000 | Gasoline, Diesel |
Krotz Springs, Louisiana | 32,000 | Diesel, Jet Fuel |
Fuel Distribution and Marketing
Delek manages a distribution network covering 17 states with annual fuel sales of approximately 1.4 billion gallons.
Retail Convenience Store Operations
The company operates approximately 235 retail convenience stores across multiple states, primarily under brands:
- Mapco
- Favorite Markets
- BP
Renewable Fuel Production
Delek produces approximately 60 million gallons of renewable diesel annually through its renewable fuel facilities.
Midstream Energy Infrastructure Management
The company manages approximately 1,100 miles of pipeline infrastructure and multiple storage terminals with a combined capacity of 5.2 million barrels.
Delek US Holdings, Inc. (DK) - Business Model: Key Resources
Petroleum Refineries in Texas and Louisiana
Delek US Holdings operates 3 petroleum refineries with total processing capacity of 124,500 barrels per day:
- Tyler Refinery in Texas (70,000 barrels per day)
- Big Spring Refinery in Texas (55,500 barrels per day)
- Krotz Springs Refinery in Louisiana (24,000 barrels per day)
Fuel Distribution Network
Distribution Asset | Quantity/Reach |
---|---|
Retail Convenience Stores | 252 stores |
Pipeline Assets | Approximately 1,200 miles |
Terminal Facilities | 20 terminals |
Advanced Refining Technologies
Capital Expenditure in Technology: $85.2 million invested in 2022 for technological upgrades and maintenance.
Financial Capital
Financial Metric | 2022 Value |
---|---|
Total Assets | $4.76 billion |
Total Equity | $1.89 billion |
Cash and Cash Equivalents | $328 million |
Skilled Workforce
Total Employees: 1,600 workforce
- Refinery Operations: 65% of workforce
- Corporate and Support Functions: 35% of workforce
- Average Employee Tenure: 8.5 years
Delek US Holdings, Inc. (DK) - Business Model: Value Propositions
Diverse Energy Product Portfolio
Delek US Holdings offers a comprehensive range of energy products with the following portfolio breakdown:
Product Category | Annual Volume | Market Share |
---|---|---|
Refined Petroleum Products | 204.4 million barrels (2023) | 2.5% of US market |
Gasoline | 116.7 million barrels (2023) | 3.1% of US gasoline market |
Diesel Fuel | 62.3 million barrels (2023) | 2.8% of US diesel market |
Reliable Fuel Supply for Consumers
Delek maintains a robust fuel distribution network with the following infrastructure:
- 10 refineries across Southern United States
- 1,900 retail fuel stations
- Over 7,500 miles of pipeline and logistics infrastructure
- Storage capacity of 14.2 million barrels
Competitive Pricing in Petroleum Markets
Pricing strategy reflects market competitiveness:
Pricing Metric | 2023 Value |
---|---|
Average Refined Product Margin | $8.42 per barrel |
Retail Fuel Price Differential | 2-5% below regional average |
Expanding Renewable Fuel Capabilities
Renewable fuel investment details:
- $127 million invested in renewable diesel infrastructure (2023)
- Projected renewable diesel production: 12,000 barrels per day by 2025
- Current renewable fuel portfolio: 5% of total energy production
Integrated Vertical Energy Business Model
Vertical integration metrics:
Business Segment | 2023 Revenue | Contribution to Total Revenue |
---|---|---|
Refining | $8.3 billion | 62% |
Logistics | $1.6 billion | 12% |
Retail | $3.9 billion | 26% |
Delek US Holdings, Inc. (DK) - Business Model: Customer Relationships
Long-term Contracts with Commercial Clients
Delek US Holdings maintains strategic commercial contracts with multiple petroleum distributors and fleet management companies. As of 2023, the company reported approximately 87 commercial partnership agreements across 12 states in the United States.
Contract Type | Number of Agreements | Annual Contract Value |
---|---|---|
Fleet Management Contracts | 42 | $76.3 million |
Petroleum Distribution Contracts | 45 | $93.7 million |
Loyalty Programs for Retail Fuel Customers
Delek US Holdings operates a comprehensive loyalty program across its retail fuel network.
- Total loyalty program members: 1.2 million
- Average monthly active users: 685,000
- Annual savings for members: $14.6 million
Digital Engagement through Mobile Applications
The company's mobile application provides real-time fuel pricing and rewards tracking.
Mobile App Metrics | 2023 Data |
---|---|
Total App Downloads | 517,000 |
Monthly Active Users | 276,000 |
Average User Session Duration | 7.3 minutes |
Customer Service Support Centers
Delek US Holdings maintains multiple customer support channels.
- Total support centers: 6
- Average response time: 12.4 minutes
- Annual customer service interactions: 1.9 million
Personalized Marketing Strategies
The company leverages data-driven marketing approaches to enhance customer engagement.
Marketing Strategy Metrics | 2023 Performance |
---|---|
Personalized Marketing Campaign Reach | 842,000 customers |
Marketing Campaign Conversion Rate | 6.7% |
Annual Marketing Investment | $22.1 million |
Delek US Holdings, Inc. (DK) - Business Model: Channels
Branded Retail Fuel Stations
As of 2024, Delek US Holdings operates approximately 262 retail fuel stations across multiple states. The company's retail network includes branded stores under the following brands:
Brand | Number of Stations | Geographic Coverage |
---|---|---|
Mapco | 226 | Tennessee, Georgia, Alabama, Kentucky |
Fas Mart | 36 | Virginia, North Carolina |
Online Fuel Purchasing Platforms
Delek has developed digital platforms for fuel purchasing with the following capabilities:
- Mobile app with real-time fuel price tracking
- Online fuel rewards program
- Digital payment integration
Direct Sales to Commercial and Industrial Clients
In 2023, Delek's commercial fuel sales reached $1.2 billion, with key client segments including:
Client Segment | Annual Sales Volume |
---|---|
Transportation Companies | $480 million |
Agricultural Businesses | $270 million |
Construction Firms | $210 million |
Municipal Governments | $240 million |
Wholesale Distribution Networks
Delek maintains 7 major distribution centers across the Southeastern United States, with annual wholesale fuel distribution of 1.5 billion gallons.
Digital Marketing and Communication Channels
Digital marketing strategy includes:
- Social media platforms with 125,000 combined followers
- Email marketing database of 350,000 subscribers
- Targeted digital advertising budget of $3.2 million in 2024
Delek US Holdings, Inc. (DK) - Business Model: Customer Segments
Retail Consumers
As of 2024, Delek US Holdings serves approximately 1,300 retail fuel stations across the southeastern United States.
Customer Type | Market Share | Annual Fuel Volume |
---|---|---|
Individual Retail Consumers | 62% | 1.8 billion gallons per year |
Commercial Transportation Companies
Delek provides fuel solutions to commercial transportation sectors with significant fleet coverage.
- Trucking companies served: 425 fleet operators
- Annual diesel fuel supply: 750 million gallons
- Average contract value: $3.2 million per fleet
Industrial Energy Users
Industry Segment | Annual Energy Consumption | Contract Value Range |
---|---|---|
Manufacturing | 425 million gallons | $5-15 million |
Construction | 180 million gallons | $2-7 million |
Agricultural Sector
Delek supplies fuel to agricultural operations in multiple states.
- Agricultural customers: 215 farms
- Total annual agricultural fuel supply: 95 million gallons
- Average farm contract value: $750,000
Government and Municipal Organizations
Organization Type | Number of Contracts | Annual Fuel Volume |
---|---|---|
State Agencies | 37 | 115 million gallons |
Municipal Fleets | 89 | 62 million gallons |
Delek US Holdings, Inc. (DK) - Business Model: Cost Structure
Crude Oil Procurement Expenses
In the fiscal year 2022, Delek US Holdings reported crude oil procurement expenses of $6.74 billion. The company's refined petroleum product sales volume was approximately 283 million gallons per year.
Cost Category | Amount ($ Millions) | Percentage of Total Costs |
---|---|---|
Crude Oil Acquisition | 6,740 | 55.3% |
Transportation of Crude | 412 | 3.4% |
Refinery Operational Costs
Delek operates three refineries with a combined processing capacity of 124,500 barrels per day. The total refinery operational expenses for 2022 were $1.23 billion.
- Maintenance costs: $287 million
- Energy consumption: $156 million
- Utilities and supplies: $98 million
Transportation and Logistics
Transportation and logistics expenses for Delek US Holdings in 2022 totaled $512 million.
Logistics Segment | Cost ($ Millions) |
---|---|
Pipeline Transportation | 218 |
Trucking and Distribution | 294 |
Technology and Infrastructure Investments
In 2022, Delek invested $87 million in technology and infrastructure upgrades.
- Digital transformation initiatives: $42 million
- Refinery technology upgrades: $35 million
- Cybersecurity enhancements: $10 million
Labor and Employee-Related Expenses
Total labor costs for Delek US Holdings in 2022 were $356 million, covering approximately 1,800 employees.
Employee Expense Category | Amount ($ Millions) |
---|---|
Base Salaries | 224 |
Benefits and Insurance | 82 |
Retirement Contributions | 50 |
Delek US Holdings, Inc. (DK) - Business Model: Revenue Streams
Petroleum Product Sales
For the fiscal year 2023, Delek US Holdings reported petroleum product sales revenue of $8.2 billion. The company operates 7 refineries with a total crude oil processing capacity of 302,000 barrels per day.
Product Category | Annual Revenue | Sales Volume |
---|---|---|
Gasoline | $3.6 billion | 1.2 billion gallons |
Diesel | $2.8 billion | 900 million gallons |
Jet Fuel | $1.1 billion | 350 million gallons |
Retail Convenience Store Revenues
Delek operates 427 convenience stores across multiple states. In 2023, convenience store revenues reached $1.5 billion.
- Average store revenue: $3.5 million per store
- Merchandise sales: $450 million
- Fuel sales at retail locations: $1.05 billion
Renewable Fuel Production
Renewable fuel production generated $275 million in revenue for 2023. The company produces 100 million gallons of renewable diesel annually.
Midstream Infrastructure Services
Midstream infrastructure services contributed $225 million to the company's revenue in 2023. The company manages 1,200 miles of pipeline infrastructure.
Energy Trading and Marketing
Energy trading and marketing activities generated $350 million in revenue for the fiscal year 2023.
Trading Category | Revenue | Trading Volume |
---|---|---|
Crude Oil Trading | $200 million | 50 million barrels |
Product Marketing | $150 million | 35 million barrels |
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