US to Use Defense Production Act to Expand Delek's Tyler Refinery
DK has more than doubled off its 52-week low of $25.85.
Summary
The Trump administration plans to use the Defense Production Act to expand Delek's Tyler refinery in Texas, Vice President Vance said Tuesday. The Tyler refinery is among the smallest in the U.S. at 74K bbl/day, and the expansion aims to lower fuel prices. Funding amount and capacity increase are not yet disclosed. This follows Delek's strong Q2 results and recent $460M convertible notes offering. The announcement signals federal support for domestic refining capacity, a rare development given no major new refinery has been built since the late 1970s.
At the time of this announcement, DK was trading at $80.75 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $4.9B. The 52-week trading range was $25.85 to $82.27. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.