Delek Us Holdings, Inc. · NYSE:DK

Delek Us — Investor Presentation (August 2014)

34 slides from Delek Us's investor presentation, Aug 7, 2014

  1. Slide 1: Investor Presentation – August 2014 Delek US Holdings

    Investor Presentation – August 2014 Delek US Holdings

  2. Slide 2: Safe Harbor Provision

    Safe Harbor Provision 2 Delek US Holdings and Delek Logistics Partners, LP are traded on the New York Stock Exchange in the United States under the symbols “DK” and ”DKL” respectively, and, as such, are governed by the rules and regulations of the United States Securities and Exchange Commission. Th

  3. Slide 3: Delek US Holdings Overview

    REFINING Delek US Holdings Overview Integrated Downstream Energy Company – Crude Gathering to Retail Locations (1) Delek Logistics Partners, LP (NYSE:DKL) began operating on Nov. 7, 2012 and, from that date, 100% of its performance has been reported as a segment of Delek US. Delek US and its affilia

  4. Slide 4: Integrated Business Model

    4 Integrated Business Model Flexible Crude Sourcing and Market Driven Production Enhance Performance Flexible Crude Oil Sourcing •Pipeline access to Midland; Gulf Coast; Cushing • Increasing Gathering – Texas and Arkansas •Access to Canadian crude Crude Logistics •Crude oil pipelines supporting refi

  5. Slide 5: Mid-Continent Refining System

    Mid-Continent Refining System 5 Strategic Location Allows Access to Cost-Advantaged Feedstocks and Niche Markets (1) Rail supplied light crude capability consists of 25,000 bpd of light crude or 12,000 bpd heavy crude offloading that is available at a company owned facility at the El Dorado refinery

  6. Slide 6: Refining Segment Operational Update

    Refining Segment Operational Update

  7. Slide 7: U.S. Refining Environment Trends

    -$30 -$20 -$10 $0 $10 $20 $30 $40 $50 J a n -1 0 F e b -1 0 M a r- 1 0 A pr -1 0 M a y -1 0 J u n -1 0 J u l- 1 0 A u g -1 0 S e p -1 0 O c t- 1 0 No v -1 0 De c -1 0 J a n -1 1 F e b -1 1 M a r- 1 1 A pr -1 1 M a y -1 1 J u n -1 1 J u l- 1 1 A u g -1 1 S e p -1 1 O c t- 1 1 No v -1 1 De c -1 1 J a

  8. Slide 8: WTI Midland vs. WTI Cushing Crude Pricing

    ($14.00) ($12.00) ($10.00) ($8.00) ($6.00) ($4.00) ($2.00) $0.00 WTI Midland vs. WTI Cushing Crude Pricing Access to Midland Crudes Benefits Margins 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 ($ per barrel) 1Q14 87,000 bpd of Midland crude in DK system 8 2Q14 Source: Argus – as of A

  9. Slide 9: Tyler Refinery Overview

    Tyler Refinery Overview 9  Inland PADD III light product refinery located in East Texas  Planning underway for 1Q15 turnaround and expansion  Serves a niche market in the Tyler, TX area; priced above Gulf Coast markets  Currently 60,000 bpd, 9.5 complexity; demonstrated 64,000 bpd ability; incre

  10. Slide 10: El Dorado Refinery Overview

    Improving Niche Market Position with a Crude Slate Weighted to WTI-Linked Crude El Dorado Refinery Overview 10  Inland PADD III refinery located in Southern Arkansas  80,000 bpd, 9.0 complexity (1Q14 configured to run light and medium sour crude)  Improved flexibility during 1Q14 turnaround; FCC

  11. Slide 11: Significant Organic Growth / Margin Enhancement Opportunities

    Significant Organic Growth / Margin Enhancement Opportunities 11 DHT Revamp – Phases I & II  Increase ULSD production from 30,000 bpd to 35,000 bpd; (Phase 1 increased to 33,000 bpd) Higher return capital projects at El Dorado and Tyler improving flexibility and providing growth SCOPE COST TIMING $

  12. Slide 12: Tyler Refinery Expansion Overview

    Tyler Refinery Expansion Overview 12 Production Increase  10,000 bpd crude throughput increase  Light product throughput increased by 9,300 bpd  Estimated cost $70 million  Expected completion in 1Q15 Crude Supply  Source incremental crude from Cushing into Longview.  Additional options to acc

  13. Slide 13: Tyler Refinery Expansion – Production Increase

    Tyler Refinery Expansion – Production Increase  Increase nameplate capacity to 75,000 bpd – Crude Distillation, DHT, NHT units expanded – March 2015 estimated completion 13 62.5 7.0 25.0 22.0 75.0 7.0 36.0 28.0 Crude Coker DHT NHT Capacity Improvements, 000 bpd Current Capacity Expansion Capacity 

  14. Slide 14: Tyler Refinery Expansion – Crude Supply

    Tyler Refinery Expansion – Crude Supply  Incremental 10,000 bpd of crude supply needed to support expansion  Supply sources from Cushing, OK , Midland and Longview, TX – Base economics source crude from Cushing to Longview (approx. $1.77/bbl delivery) – Additional options include Permian Basin sup

  15. Slide 15: Tyler Refinery Expansion – Product Marketing

    Tyler Refinery Expansion – Product Marketing  Incremental 9,300 bpd of light products from expansion  Flexibility to supply: – Immediate Tyler area – Other local terminals – DKL terminals in west Texas  Delek to contract additional terminal capacity in the Tyler area for increased throughput 15

  16. Slide 16: Tyler Refinery Expansion Economics

    Tyler Refinery Expansion Economics  Incremental 10,000 bpd of crude throughput capacity – Estimated capital cost approximately $70 million; approx. $53 million spent in 2014 – March 2015 estimated completion – Primary work done during 1Q15 scheduled turnaround  Expected product yield +10.1 kbpd –

  17. Slide 17: Logistics Operational Update

    Logistics Operational Update

  18. Slide 18: Strategic Partner in Delek Logistics Partners, LP

    Strategic Partner in Delek Logistics Partners, LP (NYSE: DKL) 18 Delek Logistics Partners , LP (NYSE:DKL) began operating on Nov. 7, 2012 and 100% of its performance is reported as a segment of Delek US beginning 4Q12. Delek US and its affiliates own approximately 62%, including the 2.0% general par

  19. Slide 19: DKL: Several Visible Pathways to Growth

    DKL: Several Visible Pathways to Growth 19 Dropdowns from Delek US Organic Growth Acquisitive Growth  $5 - $10 Million of potential EBITDA expected to be dropped down over next 12 months in addition to recently completed Tyler and El Dorado asset drop downs  25,000 bpd (light crude) rail offloadin

  20. Slide 20: DKL Performance Since IPO

    50% 75% 100% 125% 150% 175% 11/1/2012 4/10/2013 9/17/2013 2/24/2014 8/3/2014 DKL Alerian MLP Index  Midstream MLP with long-term contracts providing stable, growing cash flow  Supports Delek US’ profitable and strategically located inland refining system  Unlocks value of marketing and logistics

  21. Slide 21: Retail Operational Update

    Retail Operational Update

  22. Slide 22: Retail Locations Creates Synergies for Product Marketing

    990 1,039 1,082 1,112 291 303 2010 2011 2012 2013 2Q13 2Q14 $897 $951 $1,011 $1,037 $270 $287 2010 2011 2012 2013 2Q13 2Q14 Retail Locations Creates Synergies for Product Marketing 22 Expanding Market Footprint in Markets Capable of Being Supplied by El Dorado Fuel Gallons Sold Per Store (000’s) Mer

  23. Slide 23: Focused on Organic Growth

    Focused on Organic Growth 23  Large Format Stores are focal point  Approximately 4,800 square feet  Offer customers wider product selection  Prepared food service offering increases traffic  Avg. 3+ million gallons and $2+m inside sales once market penetrated  3 year growth trajectory for mark

  24. Slide 24: Financial Update

    Financial Update

  25. Slide 25: Financial Highlights

    Financial Highlights $164 $151 $130 $445 $659 $448 $427 2008 2009 2010 2011 2012 2013 LTM Jun. 2014  At June 30, 2014  Cash of $560.1 million; Debt of $616.2 million  Includes $239.0 million of debt and $2.4 million of cash at Delek Logistics (DKL)  Excluding DKL, Delek US’ net cash position was

  26. Slide 26: Going Forward

    Going Forward

  27. Slide 27: Market Fundamentals

    $19.83 $12.30 $13.11 $17.28 $13.88 $13.76 $18.26 $16.82 $16.19 $13.45 $14.09 2Q13 3Q13 4Q13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Market Fundamentals(1) 27  Crude price beginning to decline through July  Midland discount to Cushing widening (1) Source: Platts and Argus; 2014 data

  28. Slide 28: Delek US Focused on Building an Integrated Business Model

    Delek US Focused on Building an Integrated Business Model 28 A core part of Delek US' strategy is to grow via prudent strategic transactions since 2001 (1) Includes logistic assets in purchase price. Purchase price includes working capital for refineries. 2006 Abilene & San Angelo terminals $55.1 mm

  29. Slide 29: Delek US Asset Base has Grown and Diversified

    Delek US Asset Base has Grown and Diversified 2010 2013 Crude Gathering Crude Logistics Refining Logistics Retail Total Pipeline Mileage Midland crude, bpd Throughput Capacities: Total Crude, bpd Light crude , bpd DHT, bpd Coker, bpd GHT/LSR, bpd Biodiesel Plants Product Terminals Large format store

  30. Slide 30: Investment highlights and Questions and Answers

    30 Large, Complementary Logistics, Marketing and Retail Systems Significant Organic Growth / Margin Improvement Opportunities Focus on Shareholder Returns Strong Balance Sheet Strategically Positioned Refining Platform Questions and Answers

  31. Slide 31: Appendix Additional Data

    Appendix Additional Data

  32. Slide 32: Historical and Projected Capital Spending

    $42.3 $36.0 $65.9 $144.3 $225.5 $0.9 $10.5 $5.1 $13.1 $14.4 $36.5 $29.1 $37.9 $30.5 $0.1 $7.6 $26.5 $35.0 $21.2 2010A 2011A 2012A 2013A 2014E * Refining Logistics (Marketing) Retail Other Historical and Projected Capital Spending 32 $56.8mm $81.0mm $132.0mm $222.3mm Source: Company filings. $290.3mm

  33. Slide 33: Non-GAAP Reconciliation

    Non-GAAP Reconciliation 33 Source: Company filings. ($ in millions) 2012 2013 Net cash provided by operating activities $462.9 $102.5 Purchase of property, plant and equipment 132.0 222.3 Free cash flow $330.9 ($119.8) Year Ended 12/31 Delek US Free Cash Flow Reconciliation ($ in millions) 2008 2009

  34. Slide 34: Investor Relations Contact

    Investor Relations Contact: Assi Ginzburg Keith Johnson Chief Financial Officer Vice President of Investor Relations 615-435-1452 615-435-1366

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