Delek US enters inventory intermediation pact for up to $800M in capacity

On December 22, 2022, DK Trading & Supply, LLC, an indirect subsidiary of Delek US Holdings, acting on behalf of, and jointly and severally liable with, each of (i) Lion Oil Company, LLC ("Lion Oil"), (ii) Alon Refining Krotz Springs, Inc. and (iii) Alon USA, LP entered into an inventory intermediation agreement with Citigroup Energy Inc. Pursuant to the Inventory Intermediation Agreement, Citi will (i) purchase from and sell to DKTS crude oil and other petroleum feedstocks in connection with processing operations at certain refineries, (ii) purchase from and sell to DKTS all refined products produced by such refineries other than certain excluded products and (iii) in connection with such purchases and sales, DKTS will enter into certain market risk hedges in each case, on the terms and subject to the conditions set forth therein. The Inventory Intermediation Agreement results in up to $800 million of working capital capacity for DKTS. The Inventory Intermediation Agreement has a term of 24 months, subject to extension by Citi for an additional 12 months.