Subsidiary cash flow 2025
~3.4B ₪
Internal dividends
Shareholder distribution 2025
~1.35B ₪
Div. + declaration + $100M buyback
LTV 2024
17%
2023: 21% (-4pp)
Ithaca output
119K boe/d
Pre-merger: 80.2K (+48%)
Ithaca EBITDAX 2025
~$2.0B
+43% YoY
1 Company Profile
Delek Group is an Israeli holding company with a core focus on energy — oil and natural gas — which has in recent years expanded into financial services, automotive and real estate. The company trades on the Tel Aviv Stock Exchange (symbol: Delek Group, security 1084128) and is a constituent of the TA-35 index. נכללת במדד TA-35. דלק קבוצה היא אחת מהחברות הוותיקות והמשמעותיות במשק הישראלי, ובעל השליטה בה הוא יצחק תשובה — דמות מרכזית בעולם האנרגיה והפיננסים בישראל. החברה מחזיקה בשניים מנכסי האנרגיה הגדולים בעולם הפיתוח: שדה לוויתן (אחד מהשדות הגדולים בים התיכון, דרך ניו-מד אנרגיה) ופעילות נפט וגז בים הצפוני בבריטניה (דרך Ithaca Energy — שהשלימה ב-2025 מיזוג עם נכסי ENI UK והכפילה את התפוקה ל-119,000 חביות שווה ערך ביום). ב-2025 ביצעה דלק מהלך אסטרטגי — רכישת חברת כרטיסי האשראי Isracard ב-1.36 מיליארד ₪ — שמסמן מעבר מחברת אנרגיה טהורה לחברת אחזקות מגוונת.
| Segment | Description | Company |
|---|
| Natural Gas — Israel | Leviathan field + export agreements | NewMed Energy |
| Oil + Gas — North Sea | UK operations | Ithaca Energy |
| Credit Cards — Israel | Financials, acquired 2025 | Isracard |
| Vehicle Imports | Mazda, Ford | Delek Automotive |
| Income-producing Real Estate | Commercial properties | Delek Real Estate |
Source: ir.delek-group.com, maya.tase.co.il (security 1084128)
2 Key Financial Observations
This summary is not a recommendation. It is a factual list of key financial metrics.
Cash Flow & Distribution 2025 (NIS M)
| Metric | Value |
|---|
| Subsidiary cash flow | 3,400 |
| Dividend paid | 1,000 |
| Additional dividend declared | 250 |
| Buyback programme | 100 |
| Total distribution | 1,350 |
Holdings 2025
| Company | Metric | Value |
|---|
| Ithaca | Output boe/d | 119,000 |
| Ithaca | EBITDAX | $2.0B (+43%) |
| NewMed | Egypt agreement | ~$35B (potential) |
| Isracard | Acquisition amount | 1.36B ₪ |
| — | LTV 2024 | 17% (from 21%) |
Missing data: solo net debt, revaluation-adjusted consolidated GAAP Net Income, computed NAV, solo EBITDA.
Subsidiary cash flow (₪ B)
Ithaca output — pre/post merger (boe/d)
LTV — improvement trend (%)
Shareholder distribution 2025 (₪ M)
3 Industry & Competitive Context
Delek operates across two primary sectors — energy (oil and natural gas) and financial services. The energy segment is cyclical and commodity-price-driven; the credit-card segment is more stable but competitive. A framework agreement with Egypt carries a potential scale of ~$35B; the expansion of the Leviathan field לוויתן מאושרת.
| Segment | Competitors | Delek’s position |
|---|
| Natural Gas — Israel | Chevron (Tamar), Energean (Karish) | Dominant player via Leviathan |
| Oil + Gas — North Sea | BP, Shell, Harbour Energy | Mid-to-large player (119K boe/d) |
| Credit Cards — Israel | Visa Cal, Max | Established player (Isracard) |
| Vehicle Imports — Israel | UMI, Hemda | Mid-sized player |
4 Risk Factors
| Risk | Context |
|---|
| Energy-price volatility | Gas and oil prices directly drive 60-70% of profit. Strong cyclicality. |
| Geographic concentration in Israel | Most activity (Leviathan, Isracard, automotive) is Israel-centric. Significant geopolitical exposure. |
| Historically high debt | LTV has improved from 21% to 17%, but further reduction is warranted. A materially levered holding company. |
| Controlling-shareholder dependence | Yitzhak Tshuva is the controlling shareholder. Strategic decisions are materially tied to his personal and business situation. |
| Energy regulation | Windfall tax on energy (UK), Israeli gas royalties, environmental regulation. |
| Export agreements — political risk | Gas agreements with Egypt and Jordan are sensitive to the regional environment. |
| Global energy transition | Gas is still regarded as a "transition fuel", but demand may soften over a 15-20-year horizon. |
| Isracard acquisition execution | $1.36B in a new segment — materially different from energy. Management-integration risk. |
5 Analytical Lens — The Questions We Ask
In professional company analysis, the question is not "is this good?" but rather "through which lenses must this company be examined so that we do not miss what matters most?" At Bakshi Finance, every analysis passes through six lenses.
This framework is intended to structure analysis, not to produce an investment conclusion.
Growth
Delek grows through its subsidiaries — Leviathan (sanctioned expansion), Ithaca (the ENI UK merger doubled output), Isracard (a new acquisition). What portion of the growth is organic/operational versus one-off (M&A)? How much depends on commodity prices versus internal execution?
Profitability
Delek’s earnings blend several sources — dividend cash flow (operational), fair-value revaluations (non-cash), Isracard. What is the run-rate of sustainable cash flow? What share of profit depends on asset-revaluation gains that can reverse?
Leverage
LTV has fallen from 21% to 17%. What is the solo-level debt maturity schedule? What is the exposure to a rising-rate environment? How did the Isracard acquisition affect the capital structure? What is the ratio of solo debt to consolidated debt?
Competitive Position
Delek is dominant in Israeli gas via Leviathan (alongside Chevron); mid-sized in the North Sea (Ithaca); established in credit cards (Isracard). How stable is the competitive position in each segment? Where are the structural advantages, and where is exposure to rival entry?
Management Quality
Delek is a family-controlled company. To what extent is the move to a diversified holding a deliberate strategic choice versus opportunism? How are revaluation gains managed? What is the management compensation structure?
Business Complexity / Risk
Delek is a complex holding — five segments, three geographies, multiple currencies, both listed subsidiaries (NewMed, Ithaca) and private ones. How should an investor monitor it? Where do valuation gaps arise between reported metrics and economic reality?
6 Scenario Framework
Scenarios are descriptive, not predictive. They outline possible conditions, not expected outcomes.
These scenarios carry no probability assessment, no preferred direction, and no expectation regarding which, if any, will materialise.
Constructive Scenario — if the following conditions hold:
Gas and oil prices remain elevated (Brent above $80, gas $5+/MMBtu), the Leviathan expansion is delivered on schedule, the Egypt framework agreement is executed, Isracard integrates smoothly and contributes stable cash flow, and LTV continues its descent toward ~15%. Under these conditions, subsidiary cash flow rises and distributions expand.
Base Scenario — if current trends continue:
Energy prices remain volatile in a $50-80 per-barrel range, subsidiary cash flow holds steady near NIS 3-3.5B, LTV declines gradually, and the Isracard integration progresses without material surprises. Distribution to shareholders is maintained at current levels.
Adverse Scenario — if the following risks materialise:
A sharp decline in gas and oil prices (Brent below $50), an additional UK windfall tax hits Ithaca, a regional geopolitical event weighs on the Egypt agreements, or Isracard integration encounters material execution issues. Under these conditions, subsidiary cash flow contracts and distribution is pressured.
Scenarios describe conditions, not forecasts. There is no preferred direction and no probability assessment expressed in this framework.
7 How to Think About This Company
Delek Group is not a standard "energy stock" — it is a complex holding company earning from three distinct engines that are largely uncorrelated. The first engine is Leviathan (natural gas in the Eastern Mediterranean), the second is Ithaca (oil and gas in the North Sea), and the third is Isracard (credit cards — the newly acquired financial arm). Each engine has a fundamentally different profitability mechanism, exposure profile, and execution risk. Understanding Delek requires analysing the three independently and only then asking how they combine in the holding structure.
The critical variables to monitor are three. First, subsidiary dividend cash flow. In 2025 this was NIS 3.4B — a material figure and the principal source of distributions to Delek’s own shareholders. The question is not only this year’s number, but how sustainable it is and how it breaks down among subsidiaries. Second, solo LTV at the holding level, which improved from 21% to 17% — the deleveraging trajectory defines future dividend flexibility. Third, Ithaca and Leviathan execution — both rely on multi-year operational delivery that can materially move economics.
Where the analysis may go wrong. First error — treating Delek as a "gas equity" and valuing it solely on gas prices. In reality only a portion of earnings depends on gas prices (Leviathan + Ithaca), while the remainder (Isracard, automotive, real estate) behaves differently. Second error — treating the holding’s solo net debt as equivalent to consolidated debt. The solo level is what governs distribution capacity and refinancing flexibility at the parent. Third error — ignoring that consolidated earnings include significant non-cash fair-value gains from the subsidiaries, which can diverge meaningfully from cash generated.
What distinguishes professional analysis of Delek from headlines. Headlines on Delek speak of an "energy stock", of "Tshuva", or of "Leviathan". Professional analysis addresses three things: (a) the gap between Delek’s solo fair value (an SOTP computation) and the current market capitalisation — and why; (b) the quality of recurring dividend flow from subsidiaries versus one-off or cyclical items; (c) how the Isracard acquisition alters the holding’s earnings profile and leverage. These are not what one buys or sells — they are what one asks before deciding.
The difference between surface-level analysis and professional thinking often lies in the variables that are not immediately visible.
The difference between surface-level analysis and professional thinking often lies in the variables that are not immediately visible.
8 Sources & Data
| # | Source | Date | Type |
|---|
| 1 | ir.delek-group.com — Investor Relations | 2025-2026 | Official — company website |
| 2 | maya.tase.co.il — security 1084128 | April 2026 | Official — Stock Exchange |
| 3 | NewMed Energy — IR | Quarterly | Official — subsidiary |
| 4 | Ithaca Energy (LSE) — Annual Report | 2025 | Official — subsidiary |
| 5 | Bizportal / Calcalist / Israel Hayom | 2025-2026 | Secondary |
| 6 | stockanalysis.com — multiples | 2026 | Secondary |
Missing: solo net debt, revaluation-adjusted consolidated GAAP Net Income, computed NAV, solo EBITDA, precise Isracard market share.
