Delek Logistics Partners, L.p. · NYSE:DKL
Delek Logistics Partners, L.p — Investor Presentation (December 2023)
16 slides from Delek Logistics Partners, L.p's investor presentation, Dec 15, 2023
Slide 1: Investor Presentation Delek Logistics Partners December 2023
Investor Presentation Delek Logistics Partners December 2023 Exhibit 99.1
Slide 2: Forward Looking Statement
2 Forward Looking Statement 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”, respective
Slide 3: Ownership Structure
3 Ownership Structure Delek Logistics Partners, LP NYSE: DKL (the Partnership) Public Unitholders Operating Subsidiaries 78.7% interest 34.3 million common limited partner units (1) Non-economic ownership interest (1) Ownership as of 9/30/2023 100% 21.3% interest 9.3 million common limited partner u
Slide 4: Wholesale Marketing & Terminalling; Storage & Transportation
4 Wholesale Marketing & Terminalling Storage & Transportation • ~200-mile Gathering System in the Midland Basin • ~805 miles(1) of crude and product transportation pipelines • ~485 miles of pipelines in Delaware Gathering Business • Wholesale and Marketing business in West Texas • 10 light product t
Slide 5: Investment Overview: Delek Logistics (DKL)
Overview 5 Investment Overview: Delek Logistics (DKL) • Current distribution: $1.045/LP unit qtr.; $4.18/LP unit annualized(1); ~8% current yield(2) •Targeting 5% year-over-year growth for 2023 •MVC’s underpin ~75% of gross margins, providing stability to cash flows Strategic Initiatives Financial S
Slide 6: Cash Flows: Stability and Diversification
6 Cash Flows: Stability and Diversification Gross Margin ($’s in millions) Net Revenues • 3Q23 Minimum Volume Commitments (MVC) gross margin performance up 21% vs 3Q22 • 75% of 3Q23 gross margin from MVC • MVC 3Q23 growth supported by 28% increase in 3rd party gross margin vs 2Q23 56% 44% • Approxim
Slide 7: 3Q23 EBITDA Results by Segment
7 3Q23 EBITDA Results by Segment ($’s in millions) Gathering and Processing Wholesale Marketing and Terminalling Storage and Transportation Investments in Pipeline Joint Ventures Corporate $52.9 $28.1 $17.9 $9.3 $(10.0) DKL EBITDA: 3Q23 vs 2Q23 $MM’s $92.8 $0.2 $0.2 $2.9 $2.0 $0.1 $98.2 2Q23 EBITDA
Slide 8: Financial Strength: Growing Cash Flows
Distributable Cash Flows (DCF) ($’s in millions) Financial Strength: Growing Cash Flows 8LTM - Last Twelve Months Net Income and EBITDA Performance ($’s in millions)
Slide 9: Financial Strength: Strong and Stable Distributions
Financial Strength: Strong and Stable Distributions Distribution Per Unit 9 DCF Coverage Ratio 5.56% Growth Rate
Slide 10: Financial Flexibility: Optimizing the Balance Sheet
Financial Flexibility: Optimizing the Balance Sheet Leverage Ratio Debt Maturity Profile1 10 Debt Issuance ($’s in millions) 2018 $730 2019 $664 2020 $600 2021 $735 2022 $2,043 (1) As of September 30, 2023
Slide 11: Appendix
Appendix
Slide 12: Duration of Contracts as of 3Q23
Duration of Contracts as of 3Q23 Multi-Year MVC Contracts Contract Highlights • Less than 1 year primarily includes contracts with DK for assets supporting Tyler and El Dorado refineries, negotiation ongoing • The Lion/SALA Gathering System is supported by a long- term contract with three take-or-pa
Slide 13: Segment EBITDA Reconciliation
Segment EBITDA Reconciliation Three Months Ended September 30, 2023 Gathering and Processing Wholesale Marketing and Terminalling Storage and Transportation Investments in Pipeline Joint Ventures Corporate and Other Consolidated Net revenues: Affiliate $ 55,419 $ 70,610 $ 30,382 $ — $ — $ 156,411 Th
Slide 14: Annual and LTM EBITDA Reconciliation
Annual and LTM EBITDA Reconciliation Reconciliation of net income to EBITDA (in thousands) Three Months Ended December 31, Nine Months Ended September 30, 2022 2023 Net income 42,700 104,088 Add: Income tax expense (411) 685 Depreciation and amortization 19,691 69,417 Amortization of customer contra
Slide 15: LTM and Quarterly Reconciliation of Distributable Cash Flow
15 (1) Distributable cash flow coverage ratio is calculated by dividing distributable cash flow by distributions to be paid in each respective period. (2) Distributable cash flow adjusted to exclude transaction costs associated with the Delaware Gathering Acquisition (formerly 3 Bear). (3) Distribut
Slide 16: Distributable Cash Flow Reconciliation Notes
16 (1) Distributable cash flow coverage ratio is calculated by dividing distributable cash flow by distributions to be paid in each respective period. (2) Distributable cash flow adjusted to exclude transaction costs associated with the 3 Bear Acquisition. (3) Distributable cash flow coverage ratio,
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