Florida-based GeoSphere Capital Management recently disclosed a new position in Delek US Holdings, acquiring 150,000 shares worth approximately $4.8 million. The stake represents 3.7% of GeoSphere’s 13F reportable assets under management. Despite not being in the top five holdings, this move still speaks volumes about investor confidence in Delek.

The integrated downstream energy company Delek US Holdings operates four refineries, a network of pipelines, storage facilities, and convenience stores, generating revenue through refining operations, logistics services, and retail fuel and merchandise sales. With a focus on operational scale and regional market presence, Delek remains competitive in the U.S. energy sector.

Delek’s stock price has surged by 99% over the past year, outperforming the S&P 500. The company posted $178 million in net income and $759.6 million in adjusted EBITDA in the third quarter, driven by factors like small refinery exemptions and stronger crack spreads. GeoSphere’s investment in Delek signals confidence in the company’s improving fundamentals and cash-flow strength.

GeoSphere Capital Management’s new stake in Delek US Holdings, valued at $4.8 million, represents a strategic move by the fund to capitalize on Delek’s potential growth and cash-flow generation. Despite recent volatility, Delek’s improving operations and expanding margins could offer investors an attractive opportunity, especially as the company executes its strategic initiatives.

Read more at Yahoo Finance: What a New $4.8M Stake Signals Now