Delek US Holdings acquires biodiesel facility for $5.3M Delek US Holdings announced that it entered into an agreement to purchase a biodiesel production facility and related assets based in Cleburne, TX from EQM Technologies & Energy for approximately $5.3M. This transaction is subject to standard closing conditions and is expected to close on or before January 23. The biodiesel facility has a production capacity of approximately 12M gallons per year. Delek US intends to spend approximately $3.0M in capital expenditures during 2013 to improve the feedstock flexibility of this facility. At present, the facility produces biodiesel exclusively for Delek US and its affiliates under a tolling agreement. The tolling agreement will terminate upon completion of this transaction.
Delek US downgraded to Underperform from Neutral at BofA/Merrill BofA/Merrill downgraded Delek US to Underperform to reflect optimistic crude spreads in the Midland basin and upcoming pipeline capacity additions. Price target lowered to $24 from $35.