Marketing & Supply Segment

Founded:  2006

Operations:  Abilene, TX; San Angelo, TX; Tyler, TX.

“The logistics arm” of Delek US Holdings.  The marketing segment markets its products through three company-owned terminals in San Angelo, Abilene and Tyler, Texas and third-party terminal operations in Aledo, Odessa and Big Springs, Texas.  The segment also owns and operates seven product pipelines of approximately 114 miles between our refined product terminals in Abilene and San Angelo, Texas, which includes a line connecting our facility to Dyess Air Force Base.  In 2009, the Marketing segment acquired certain pipeline and storage assets from the Company’s refining segment. 

Marketing & Supply Sales Channels.  The M&S segment derives its revenue from a number of channels, including:  the transportation of petroleum products through pipelines and company-owned truck loading terminals in Abilene (TX) and San Angelo (TX); direct sales of petroleum products to third parties through truck racks in San Angelo, Abilene, Aledo, Odessa and Big Springs, Texas and other terminals throughout the Magellan Orion pipeline system; through the supply of product to exchange partners at the Abilene, San Angelo and Aledo, Texas terminals; and through marketing services provided to our Tyler refinery for both wholesale marketing and contract sales. 

Marketing segment benefits from positive long-term fundamentals.  The M&S segment has long-term supply contracts; sells into diversified customer base within a generally captive market; maintains limited inventory risk; maintains in-land terminals; and requires minimal annual capital expenditures.  While, the M&S segment is the smallest of Delek US’ three business segments by contribution margin, it has historically been a steady performer.