Delek Stock Up 200% Since April: What a New $4.8M Stake Signals Now

Florida-based GeoSphere Capital Management disclosed a new position in Delek US Holdings (NYSE:DK), adding 150,000 shares valued at approximately $4.8 million, in its November 14 SEC filing.

What Happened

According to a filing with the Securities and Exchange Commission dated November 14, GeoSphere Capital Management established a new stake in Delek US Holdings (NYSE:DK). The fund acquired 150,000 shares during the third quarter, corresponding to a position valued at $4.8 million as of September 30.

What Else to Know

The new Delek position represents 3.7% of GeoSphere’s $131.7 million in 13F reportable U.S. equities

Top holdings after the filing:

• NASDAQ: NESR: $15.3 million (11.7% of AUM)
• NYSE: BKV: $6.5 million (4.9% of AUM)
• NYSE: CCJ: $5.7 million (4.4% of AUM)
• NYSE: SEI: $5.6 million (4.3% of AUM)
• NYSE: CVE: $5.4 million (4.2% of AUM)

As of Thursday, Delek shares were priced at $37.61, up a staggering 99% over the past year and well outperforming the S&P 500's 13% gain in the same period.

Company Overview

Company Snapshot

• Delek produces and markets refined petroleum products, including gasoline, diesel, aviation fuel, and asphalt, while operating a network of convenience stores and logistics assets.
• The company generates revenue through refining operations, logistics services, and retail fuel and merchandise sales across multiple U.S. regions.
• It serves oil companies, independent refiners, distributors, transportation firms, the U.S. government, and retail fuel consumers primarily in the southern and southwestern United States.

Delek US Holdings is an integrated downstream energy company with a diversified portfolio spanning refining, logistics, and retail operations. The company operates four refineries and a network of pipelines, storage, and convenience stores, enabling end-to-end control from crude oil sourcing to finished product distribution.

With a focus on operational scale and regional market presence, Delek leverages its assets to serve a broad customer base while maintaining flexibility in supply and distribution. The company’s integrated business model supports its competitive positioning in the U.S. energy sector.

Foolish Take

Despite Delek’s blistering rally this year, a move into the stock still speaks volumes about how investors are positioning for cash-flow strength rather than momentum alone. For long-term investors, GeoSphere’s entry signals confidence in a refiner whose fundamentals have sharply improved: Delek posted $178 million in net income and $759.6 million in adjusted EBITDA in the third quarter, driven largely by the EPA’s small refinery exemptions and stronger crack spreads. Even excluding the one-time small refinery exemption (SRE) impact, adjusted EBITDA remained solid at $318.6 million, underscoring a business that is throwing off materially more cash than a year ago, when EBITDA was $70.6 million.

Against that backdrop, a new position makes strategic sense. The stock is still down roughly 40% from pre-pandemic highs, yet recent results show expanding margins, better logistics performance, and rising free-cash-flow capacity. For a fund with broad exposure to energy and industrial cyclicals, Delek offers asymmetric upside if the company executes on its "sum of the parts" strategy and monetizes the roughly $400 million in expected SRE grants over the next six to nine months. Ultimately, Delek remains volatile, but improving operations and accelerating cash generation could make dips more attractive than they appear on the chart.

Glossary

13F reportable assets: Securities holdings that institutional investment managers must disclose quarterly to the SEC using Form 13F.
Assets under management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.
Quarter-over-quarter: A comparison of financial or operational results between one fiscal quarter and the previous quarter.
Integrated downstream energy company: A firm involved in refining, marketing, and distributing petroleum products, often controlling multiple stages of the supply chain.
Dividend yield: Annual dividend payments divided by the current share price, expressed as a percentage.
Outperforming: Achieving a higher return or growth rate than a benchmark or peer group.
Operational scale: The ability of a company to operate efficiently at a large size, often resulting in cost advantages.
Filing: An official document submitted to a regulatory body, such as the SEC, disclosing financial or operational information.
Portfolio: A collection of investments held by an individual or institution.
Stake: The ownership interest or investment a person or entity holds in a company.
TTM: The 12-month period ending with the most recent quarterly report.
Convenience stores: Retail outlets selling everyday items, often attached to gas stations, providing fuel and merchandise to consumers.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cameco. The Motley Fool recommends Delek Us. The Motley Fool has a disclosure policy.