Delek Logistics Partners, L.p. · NYSE:DKL
Delek Logistics Partners, L.p — Investor Presentation (August 2020)
19 slides from Delek Logistics Partners, L.p's investor presentation, Aug 12, 2020
Slide 1: Retail Wealth Management Investor Presentation
Exhibit 99.1 Retail Wealth Management Investor Presentation Delek Logistics Partners August 2020
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: MLP Structure Overview
MLP Structure Overview Summary Organizational Structure Delek US Holdings, Inc. NYSE: DK A MLP, or master limited partnership, is a publicly traded 94.8% ownership interest limited partnership. A MLP does not have to pay federal taxes if 90% of its income is sourced from qualifying Delek Logistics G
Slide 4: Investment Overview
Investment Overview • Current Distribution: $0.90/LP unit qtr.; $3.60/LP unit annualized (1); ~11% current yield (2) • Committed to growing distribution 5% year-over-year Overview (NYSE: DKL) • Improving outlook into second half of 2020; asset drop downs, asset optimization and business initiatives
Slide 5: Delek US – A Growth Oriented, Financially Strong Partner
Delek US – A Growth Oriented, Financially Strong Partner • 302,000 bpd of refining capacity in Texas, Arkansas, Louisiana Operational Strength • Access to crude / product terminals, pipeline and storage assets Financial Strength • At June 30, 2020 Delek US had a $1.46 billion debt position excluding
Slide 6: Multi-Year Contracts with Firm Commitments / MVCs
Multi-Year Contracts with Firm Commitments / MVCs Duration of Contracts as of 2Q20 (1) Contract Highlights 7% 1% < 1 Year • The Lion Pipeline System and SALA Gathering System are 1 to 3 Years 36% supported by a long-term contract that includes three take- 3 to 5 Years or-pay commitments 56% > 5 Year
Slide 7: Financial Flexibility and Growing Distributable Cash Flow
Financial Flexibility and Growing Distributable Cash Flow Solid Net Income and EBITDA performance (1) $200.0 $208.3 $178.9 $150.0 $164.0 $100.0 $115.0 $124.4 $97.3 $96.8 $ in $ millions $90.2 $50.0 $62.8 $69.4 $0.0 (3) 2016 2017 2018 2019 2020 LTM Net Income EBITDA DCF supports distribution growth (
Slide 8: Increased Distribution with Conservative Coverage and Leverage
Increased Distribution with Conservative Coverage and Leverage Distribution per unit has increased twenty-nine consecutive times since the IPO $0.385 $0.395 $0.405 $0.415 $0.425 $0.475 $0.490 $0.510 $0.530 $0.550 $0.570 $0.590 $0.610 $0.630 $0.655 $0.680 $0.690 $0.705 $0.715 $0.725 $0.750 $0.770 $0.
Slide 9: Midstream: Utilizing Free Cash Flow & Strong Balance Sheet to Fund Growth
MidstreamMidstream:: UtilizingUtilizing Free Free Cash Cash Flow Flow & Strong & Strong Balance Balance Sheet toSheet Fund toGrowth Fund Growth Supports goal to generate approximately $370 million to $395 million of annualized midstream adjusted EBITDA by ’23 Supports goal to generate approximately
Slide 10: DKL Relative to Peer Group
DKL Relative to Peer Group Where We Are and Where We Are Going 2Q20 Distribution Coverage Yr/Yr Distribution Growth Already exceeded YE target range of 1.4x -1.5x 5.9% 3.0% 1.5% 1.1% 0.0% DKL MPLX MMP EPD PSXP PBFX HEP PAA 3.30x 2.00x 1.77x 1.60x 1.58x 1.40x 1.10x 1.10x 1.45x -41.7% PAA PBFX HEP EPD
Slide 11: Majority of assets support Primarily traditional, stable Delek US’ strategically MLP assets with limited
Majority of assets support Primarily traditional, stable Delek US’ strategically MLP assets with limited located inland refining commodity price exposure system Balance sheet positioned Inflation-indexed fees for to grow with strong most contracts sponsor DK Majority of all margin Agreements with De
Slide 12: DKL: Reconciliation of Cash Available for Distribution
DKL: Reconciliation of Cash Available for Distribution (dollars in millions, except coverage) 42013 (2) 1Q14 (2) 2Q14(2) 3Q14(2) 4Q14(2) 2014 (2) 1Q15(2) 2Q15 3Q15 4Q15 2015 (2)(3) 1Q16 2Q16 3Q16 4Q16 2016 (3) Reconciliation of Distributable Cash Flow to net cash from operating activities Net cash p
Slide 13: DKL: Income Statement and Non-GAAP EBITDA Reconciliation
DKL: Income Statement and Non-GAAP EBITDA Reconciliation 4 Q2013(1) 1Q14(1) 2Q14 3Q14 4Q14 2014 (1) 1Q15(2) 2Q15 3Q15 4Q15 2015(2) 1Q16 2Q16 3Q16 4Q16 2016 Net Revenue $907.4 $203.5 $236.3 $228.0 $173.3 $841.2 $143.5 $172.1 $165.1 $108.9 $589.7 $104.1 $111.9 $107.5 $124.7 $448.1 Cost of Sales (811.4
Slide 14: Non-GAAP Reconciliation of Increased Paline Pipeline Tariff EBITDA
Non-GAAP Reconciliation of Increased Paline Pipeline Tariff EBITDA Reconciliation of Forecast Incremental U.S. GAAP Net Income (Loss) to Forecast Incremental EBITDA for Paline Pipeline Tariff Increase ($ in millions) Annual Monthly Forecasted Incremental Net Income $ 10.8 $ 0.9 Add Forecasted Increm
Slide 15: Non-GAAP Reconciliation of Red River Joint Venture Adjusted EBITDA
Non-GAAP Reconciliation of Red River Joint Venture Adjusted EBITDA Delek Logistics Partners, LPReconciliation of Forecasted Incremental U.S. GAAP Net Income (Loss) to Forecasted Incremental Adjusted EBITDA for the Red River Pipeline Joint Venture ($ in millions) Pre-Expansion Range Post-Expansion Ra
Slide 16: Non-GAAP Reconciliations of Big Spring Gathering System Forecasted EBITDA
Non-GAAP Reconciliations of Big Spring Gathering System Forecasted EBITDA 16
Slide 17: Non-GAAP Reconciliations of Trucking Forecasted EBITDA
Non-GAAP Reconciliations of Trucking Forecasted EBITDA 17
Slide 18: Non-GAAP Reconciliation of Krotz Springs Potential Dropdown EBITDA
Non-GAAP Reconciliation of Krotz Springs Potential Dropdown EBITDA Krotz Springs Logistics Drop Down Reconciliation of Forecasted Annualized Net Income to Forecast Incremental EBITDA ($ in millions) Forecasted Range Forecasted Incremental Net Income $ 2.9 $ 3.3 Add Forecasted Incremental Amounts for
Slide 19: Investor Relations Contacts
Investor Relations Contacts: Blake Fernandez, SVP IR/Market Intelligence 615-224-1312
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