Delek Logistics Partners, L.p. · NYSE:DKL

Delek Logistics Partners, L.p — Investor Presentation (August 2013)

29 slides from Delek Logistics Partners, L.p's investor presentation, Aug 19, 2013

  1. Slide 1: Delek Logistics Partners, LP Investor Presentation August 2013

    Delek Logistics Partners, LP Investor Presentation August 2013

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements 2 These slides and any accompanying oral presentation contain forward-looking statements by Delek Logistics Partners, LP (defined as “we”, “our”) that are based upon our current expectations and involve a number of risks and uncertainties. Statements concerning current est

  3. Slide 3: Delek Logistics Partners, LP Overview

    Delek Logistics Partners, LP Overview: Ticker: DKL Exchange: NYSE IPO Date: November 2, 2012 Sponsor: Delek US Holdings, Inc. (NYSE: DK) IPO Price: $21.00 Current Price:(1) $30.03 Current Yield:(2) 5.26% Annualized Distribution(2) $1.58/unit Market Capitalization:(1) $720 million Ownership - Public

  4. Slide 4: Delek Logistics: A Compelling Investment Opportunity

    Delek Logistics: A Compelling Investment Opportunity 4  5.26% yield (1)  Distribution increased 5.3% over MQD since Nov. 2012  Distribution coverage ratio of 1.35x (YTD June 2013) (2)  Estimated initial $10.5 million annual EBITDA from first drop- down (July 2013)  Estimated $15-$20 million add

  5. Slide 5: Growth Oriented, Financially Strong Sponsor

    Growth Oriented, Financially Strong Sponsor • 140,000 bpd of refining capacity in Texas and Arkansas • Related crude / product terminals, pipeline and storage assets • 370 convenience stores(1) Operational Strength 5 (1) As of June 30, 2013. (2) As of August 15, 2013. (3) Pro forma for IPO of Delek

  6. Slide 6: Sponsor Track Record of Profitable Growth Through Acquisitions

    Sponsor Track Record of Profitable Growth Through Acquisitions 6 2005 2006 2007 2008 2009 2010 2011 2012 April 2005  Tyler refinery and related assets  $68.1 million(1) August 2006  Abilene and San Angelo terminals  $55.1 million July 2006  43 retail fuel and convenience stores  $50.0 million

  7. Slide 7: Delek Logistics Partners, LP Overview

    Delek Logistics Partners, LP Overview

  8. Slide 8: Stable, Fee-Based Cash Flows

    8 Stable, Fee-Based Cash Flows Assets support Delek US' highly profitable and strategically located inland refining system Inflation-indexed fees for most contracts Majority of all margin generated by long term, fee-based contracts with volume minimums Agreements with Delek US cap maintenance capex

  9. Slide 9: Stable Asset Base Positioned for Growth

    Stable Asset Base Positioned for Growth 9 Pipeline/Transportation  Approximately 400 miles of crude and product transportation pipelines  600 mile crude oil gathering system  Associated storage facilities with approximately 3.7 million barrels of aggregate shell capacity Wholesale/Terminalling 

  10. Slide 10: Continued Increase in SALA Gathering System

    Continued Increase in SALA Gathering System 10 • SALA provides access to local Arkansas crude to Delek US’s El Dorado refinery. • 600 mile crude oil gathering system, primarily within a 60-mile radius of the El Dorado refinery. • Positive outlook due to development in Brown Dense area. (1) Delek US

  11. Slide 11: West Texas Wholesale Business - Record Performance 1H2013

    West Texas Wholesale Business - Record Performance 1H2013 11 • Record volume and margins during first half 2013; Benefitting from ethanol blending and capturing RINs • Operates in a growing area around the Permian Basin; benefiting from robust economic activity • Purchases refined products from thir

  12. Slide 12: East Texas Marketing Volume Continues to Increase

    East Texas Marketing Volume Continues to Increase 12 (1) East Texas marketing volumes exclude jet fuel and coke , which are not part of the marketing agreement. • Volumes have been increasing as Tyler utilization improves; Volume 30% higher than 2009 level • Exclusive rights to market 100% of the re

  13. Slide 13: Delek Logistics Strategy

    Delek Logistics Strategy 13 Generate Consistent Growth Generate Stable Cash Flow Pursue Organic Expansion Optimize Existing Assets Pursue Accretive Acquisitions

  14. Slide 14: Several Visible Pathways to Growth

    Several Visible Pathways to Growth 14 Dropdowns from Delek US Organic Growth Acquisitive Growth  $15 - $20 Million of potential EBITDA expected to be dropped down over next 18 months in addition to recently completed Tyler asset drop down  Includes logistics assets currently under construction or

  15. Slide 15: Recent Acquisitions Expand East Texas Operations

    Recent Acquisitions Expand East Texas Operations Approximately $11 million of annual EBITDA 15 Tyler Tank Farm and Product Terminal  First drop down from Delek US since the IPO, acquired July 26, 2013  Purchase price: $94.8 million  Assets Include:  72,000 bpd capacity product terminal  Approxi

  16. Slide 16: Paline Pipeline – Potential EBITDA Increase in 2015

    Paline Pipeline – Potential EBITDA Increase in 2015 16 (1) Fee can be pro-rated upwards if volume exceeds 30,000 bpd (2) Forecast for twelve month period ending 9/30/2013 as provided in the Nov. 1, 2012 prospectus  185 mile crude oil pipeline - Mainline pipeline flow reversed from northbound to sou

  17. Slide 17: Financial Overview

    Financial Overview

  18. Slide 18: Strong Performance During First Half 2013

    Strong Performance During First Half 2013 18 (1) Amounts provided in the Nov. 1, 2012 IPO prospectus showing pro forma historical results for 2011 and forecasted performance for 12 months ending Sept. 30, 2013. Reconciliation on pg. 25 (2) 2013 annualized amount based on year-to-date June 30, 2013 E

  19. Slide 19: Increased Distribution with Conservative Coverage

    Increased Distribution with Conservative Coverage 19 (1) MQD = minimum quarterly distribution set pursuant to the Partnership Agreement. (2) Estimated based on assumption of a $0.01/unit distribution increase to show potential growth by year end. Actual increase subject to business performance and B

  20. Slide 20: Appendix

    Appendix

  21. Slide 21: Delek US' Refineries are Strategically Positioned and Flexible

    Delek US' Refineries are Strategically Positioned and Flexible 21  Inland refinery located in East Texas  60,000 bpd, 9.5 complexity  Primarily processes inland light sweet crudes (100% in 2012)  93% yield of gasoline, diesel and jet fuel in 2012 El Dorado Refinery Tyler Refinery  Inland refine

  22. Slide 22: Summary of Certain Contracts

    Summary of Certain Contracts (10) 22 (1) Maximum term gives effect to the extension of the commercial agreement pursuant to the terms thereof. (2) Represents average daily throughput for the period indicated, excluding jet fuel and petroleum coke in the East Texas marketing operations. (3) Excludes

  23. Slide 23: Amended and Restated Omnibus Agreement

    Amended and Restated Omnibus Agreement 23  Under the omnibus agreement, Delek Logistics has a ROFO for 10-years post IPO if Delek US decides to sell the following assets:  El Dorado refined products terminal  El Dorado storage tanks  Additionally, Delek Logistics has the right to purchase logist

  24. Slide 24: Summary Organization Structure

    Summary Organization Structure 24 37.6% limited partner interest-common 98.6% ownership interest (1) 2.0% general partner interest Incentive distribution rights Delek Logistics Partners, LP NYSE: DKL (the Partnership) 100% ownership interest Public Unitholders Operating Subsidiaries 11.3% limited pa

  25. Slide 25: Non-GAAP Reconciliation

    Non-GAAP Reconciliation 25 (1) Includes approximately $2.0 million of estimated annual incremental general and administrative expenses expected to incur as a result of being a separate publicly traded partnership. (2) Interest expense and cash interest both include commitment fees and interest expen

  26. Slide 26: Cash Available for Distribution

    Cash Available for Distribution 26 1H13 Actual Results and Forecast Twelve Months ending September 30, 2013 (3) (1) Non-GAAP measure. See pg. 25 for the reconciliation to GAAP. (2) Distribution for forecast period based on $1.50 per unit; Distribution for three months ended June 30, 2013 was $0.395

  27. Slide 27: Non-GAAP Reconciliation: Delek US LTM EBITDA

    Non-GAAP Reconciliation 27 6 Months Ended June 30, LTM 2011 2012 2012 2013 6/30/2013 Operating Income $286.1 $473.1 $201.7 $212.2 $483.6 Loss on Sale of Assets 3.6 (0.1) - - (0.1) Impairment of Goodwill 2.2 - - - - Depreciation and Amortization 74.1 82.5 40.6 43.6 85.5 EBITDA $366.0 $555.5 $242.3 $2

  28. Slide 28: Terminals

    Terminals 28 • Serves Delek’s retail segment and independent third parties Nashville, TN • Refined products terminalling services for Delek and/or third parties • Three terminals with 412,731 bbls of shell capacity (1) • Terminal fee -Memphis and Big Sandy $0.52/bbl; Tyler $0.35/bbl (1) The Big Sand

  29. Slide 29: Investor Relations Contact

    29 Investor Relations Contact: Assi Ginzburg Keith Johnson Executive Vice President, CFO Vice President of Investor Relations 615-435-1452 615-435-1366

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