Delek Us Holdings, Inc. · NYSE:DK
Delek Us — Q2 2023 Earnings Presentation
19 slides from Delek Us's earnings presentation, Aug 7, 2023
Slide 1: Second Quarter 2023 Earnings Conference Call
Exhibit 99.2 Second Quarter 2023 Earnings Conference Call August 7, 2023
Slide 2: Disclaimers
Disclaimers Forward Looking Statements: Delek US Holdings, Inc. (“Delek US”) and Delek Logistics Partners, LP (“Delek Logistics”; and collectively with Delek US, “we” or “our”) are traded on the New York Stock Exchange in the United States under the symbols “DK” and ”DKL”, respectively. These slides
Slide 3: Overview
Overview Solid quarter with strong earnings $95 million returned to shareholders to date1 Continue to execute on strategic initiatives Improving safety and reliability is fundamental 3 Tyler Refinery, Tyler, TX 1 - Through August 7, 2023
Slide 4: Total Refining Throughput
Total Refining Throughput 2Q vs 1Q 2023 (MBPD) 42.4 295.5 268.5 -3.7 -10.4 -1.3 1Q23 Tyler El Dorado Big Spring Krotz Springs 2Q23 2Q23 Production Margin per bbl. Tyler El Dorado Big Spring Krotz Springs $13.87 $6.06 $11.55 $6.21 4
Slide 5: Second Quarter Highlights
Second Quarter Highlights $ in Millions (except per share) Net Loss $(8) Adjusted Net Income $65 Adjusted Net Income per share $1.00 Adjusted EBITDA $259 Cash from operations $95 5
Slide 6: Adjusted EBITDA
Adjusted EBITDA 2Q vs 1Q 2023 ($MM) $284.6 $8.6 $259.4 $(29.1) $(0.5) $(4.2) 1Q23 Refining Logistics Retail Corporate 2Q23 2Q23 Adjusted EBITDA Results by Segment Refining Logistics Retail Corporate $201.1 $90.9 $15.0 $(47.6) 6
Slide 7: Second Quarter Consolidated Cash Flow
Second Quarter Consolidated Cash Flow ($MM) $95.1 $865.0 $(57.8) $821.6 $(80.7) 3/31/2023 Operating Activities Investing Activities Financing Activities 6/30/2023 Cash Balance* Cash Balance* 7 *includes cash and cash equivalents
Slide 8: Capital Expenditures
Capital Expenditures Capital Expenditure Allocation 2023 2023 2Q23 $'s in Millions 2023 Forecast YTD Actual 22% 10% Forecast Refining $ 202 $ 177 $ 30 Regulatory Sustaining Growth Logistics 81 55 19 67% 2% Retail 31 8 5 2023 22% YTD Corporate/Other 36 13 7 76% Delek Total $ 350 $ 253 $ 61 8
Slide 9: Net Debt
Net Debt $'s in Millions June 30, 2023 Mar 30, 2023 Dec 31, 2022 Consolidated long-term debt - current portion $ 50 $ 50 $ 75 Consolidated long-term debt - non-current portion 2,761 2,725 2,979 Consolidated total long-term debt 2,811 2,775 3,054 Less: Cash and cash equivalents 822 865 841 Consolidat
Slide 10: Third Quarter 2023 Forecast
Third Quarter 2023 Forecast $'s in Millions Low High Operating Expenses $210 $220 General and Administrative Expenses $65 $70 Depreciation and Amortization $85 $90 Net Interest Expense $80 $85 Barrels per day (bpd) Low High Total Crude Throughput 283,000 301,000 Total Throughput 292,000 310,000 Tota
Slide 11: Supplemental Slides
11 Supplemental Slides . fusy
Slide 12: Adjusted EBITDA
Adjusted EBITDA 2Q 2023 vs 2Q 2022 ($MM) $462.2 $34.8 $259.4 $21.9 $2.5 $(262.0) 2Q22 Refining Logistics Retail Corporate 2Q23 2Q23 Adjusted EBITDA Results by Segment Refining Logistics Retail Corporate $201.1 $90.9 $15.0 $(47.6) 12
Slide 13: 2-1-1 Crack Spread
2-1-1 Crack Spread Benchmark Update As Previously Reported Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021 2-1-1: $19.11 $21.53 $32.47 $15.78 $11.10 $11.11 $8.68 $7.09 KSR Capture Rate(1) 70% 66% 108% 37% 77% 65% 31% 88% Updated Reporting Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 20
Slide 14: OPEX and G&A
OPEX and G&A Reclassification Adjustments In the first quarter of 2023, we reassessed the classification of certain expenses and made certain reclassification adjustments to better represent the nature of those expenses. 14
Slide 15: OPEX per Barrel by Refinery
OPEX per Barrel by Refinery Updated for Reclassification As Reported Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021 Tyler $ 3.64 $ 6.93 $ 5.61 $ 4.30 $ 5.83 $ 3.54 $ 3.51 $ 3.59 El Dorado $ 4.72 $ 4.73 $ 4.88 $ 3.78 $ 4.13 $ 1.90 $ 5.14 $ 6.42 Big Spring $ 10.50 $ 7.19 $ 7.06 $ 5.36
Slide 16: Reconciliation of U.S. GAAP Net Income (Loss) per share to Adjusted Net Income (Loss) Per Share
Reconciliation of U.S. GAAP Net Income (Loss) per share to Adjusted Net Income (Loss) Per Share Three Months Ended June 30, $ per share (unaudited) 2023 2022 Reported diluted loss per share $ (0.13) $ 5.05 Adjusting items, after tax (per share) (1) (2) Net inventory LCM valuation (benefit) loss (0.0
Slide 17: Reconciliation of Net (Loss) Income attributable to Delek to Adjusted EBITDA
Reconciliation of Net (Loss) Income attributable to Delek to Adjusted EBITDA Three Months Three Months Ended June 30, Ended March 31, $ in millions (unaudited) 2023 2022 2023 Reported net (loss) income attributable to Delek $ (8.3) $ 361.8 $ 64.3 Add: Loss on extinguishment of debt — — Income tax ex
Slide 18: Reconciliation of Segment EBITDA Attributable to Delek to Adjusted Segment EBITDA
Reconciliation of Segment EBITDA Attributable to Delek to Adjusted Segment EBITDA: Three Months Ended June 30, 2023 Corporate, Other $ in millions (unaudited) Refining Logistics Retail and Eliminations Consolidated Segment EBITDA Attributable to Delek $ 110.5 $ 90.9 $ 15.0 $ (58.7) $ 157.7 Adjusting
Slide 19: Reconciliation of Segment EBITDA Attributable to Delek to Adjusted Segment EBITDA
Reconciliation of Segment EBITDA Attributable to Delek to Adjusted Segment EBITDA: Three Months Ended June 30, 2023 Corporate, Other $ in millions (unaudited) Refining Logistics Retail and Eliminations Consolidated Segment EBITDA Attributable to Delek $ 110.5 $ 90.9 $ 15.0 $ (58.7) $ 157.7 Adjusting