Delek Us Holdings, Inc. · NYSE:DK
Delek Us — Investor Presentation (December 2014)
34 slides from Delek Us's investor presentation, Dec 8, 2014
Slide 1: Investor Presentation Delek US Holdings December 2014
Investor Presentation Delek US Holdings December 2014
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
Slide 3: Delek US Holdings Overview
Delek US Holdings Overview 3 (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. In addition, 20,000 bpd light crude capability is currently available via a third
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
Slide 5: Refining Segment Operational Update
Refining Segment Operational Update
Slide 6: 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
Slide 7: Access to Midland Crudes Benefits Margins
($14.00) ($12.00) ($10.00) ($8.00) ($6.00) ($4.00) ($2.00) $0.00 WTI Midland vs. WTI Cushing Crude Pricing Access to Midland Crudes Benefits Margins ($ per barrel) 87,000 bpd of Midland crude in DK system 7 Source: Argus – as of December 3, 2014
Slide 8: Tyler Refinery Overview
Tyler Refinery Overview 8 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
Slide 9: El Dorado Refinery Overview
Improving Niche Market Position with a Crude Slate Weighted to WTI-Linked Crude El Dorado Refinery Overview 9 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 r
Slide 10: Significant Organic Growth / Margin Enhancement Opportunities
Significant Organic Growth / Margin Enhancement Opportunities 10 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 $
Slide 11: Tyler Refinery Expansion Overview
Tyler Refinery Expansion Overview 11 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 Ability to source incremental crude from Cushing into Longview. Additional opt
Slide 12: 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 12 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
Slide 13: Tyler Refinery Expansion – Crude Supply/Product Marketing
Tyler Refinery Expansion – Crude Supply/Product Marketing Product Marketing: Incremental 9,300 bpd of light products Flexibility to supply: – Immediate Tyler area – Other local terminals; Mt. Pleasant recently acquired by DKL – DKL terminals in west Texas 13 Crude Supply: Incremental 10,000 bp
Slide 14: Tyler Refinery Expansion Economics
Tyler Refinery Expansion Economics Incremental 10,000 bpd of crude throughput capacity – Estimated capital cost approximately $70 million; approx. $34 million spent YTD 3Q2014 – March 2015 estimated completion – Primary work done during 1Q15 scheduled turnaround Expected product yield +10.1 kbpd
Slide 15: Logistics Operational Update
Logistics Operational Update
Slide 16: Strategic Partner in Delek Logistics Partners, LP
Strategic Partner in Delek Logistics Partners, LP (NYSE: DKL) 16 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
Slide 17: DKL: Growth Strategy
17 DKL’s stated growth strategy targets annual distribution increase of 15% in coming years DKL: Growth Strategy (1) 1) Information provided in Delek Logistics Partners, LP (NYSE: DKL) investor presentation available at www.deleklogistics.com. 3Q2014 EBITDA based on pro forma LTM information. Annual
Slide 18: DKL: Potential EBITDA Growth
DKL: Potential EBITDA Growth (1) 18 (1) Information provided in Delek Logistics Partners, LP (NYSE: DKL) investor presentation available at www.deleklogistics.com. 3Q2014 EBITDA based on pro forma LTM information provided in that presentation. Pro forma 3Q2014 includes amounts for drop down contribu
Slide 19: DKL: Increased Distribution with Conservative Coverage
DKL: Increased Distribution with Conservative Coverage 19 (1) MQD = minimum quarterly distribution set pursuant to the Partnership Agreement. (2) Distribution coverage based on distributable cash flow divided by distribution amount in each period as presented by Delek Logistics Partners’ slide prese
Slide 20: Marginal Percentage Interest in Distributions
20 Marginal Percentage Interest in Distributions Sensitivity of Incentive Distribution Rights Payments Based on Quarterly Distribution to Limited Partners (2) Delek Logistics GP Incentive Distribution Rights Total Quarterly Distribution Per Unit Target Amount Unitholders General Partner Minimum Quar
Slide 21: Retail Operational Update
Retail Operational Update
Slide 22: Retail Locations Create Synergies for Product Marketing
990 1,039 1,082 1,112 279 319 2010 2011 2012 2013 3Q13 3Q14 $897 $951 $1,011 $1,037 $279 $294 2010 2011 2012 2013 3Q13 3Q14 Retail Locations Create Synergies for Product Marketing 22 Expanding Market Footprint in Markets Capable of Being Supplied by El Dorado Fuel Gallons Sold Per Store (000’s) Merc
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
Slide 24: Financial Update
Financial Update
Slide 25: Financial Highlights
Financial Highlights $164 $151 $130 $445 $659 $448 $547 2008 2009 2010 2011 2012 2013 LTM Sep. 2014 At September 30, 2014 Cash of $497.7 million; Debt of $594.2 million Includes $230.0 million of debt and $0.7 million of cash at Delek Logistics (DKL) Excluding DKL, Delek US’ net cash positio
Slide 26: Going Forward
Going Forward
Slide 27: Growing and Improving Asset Base Across all Segments
66 58 124 80 60 140 80 75 155 El Dorado Tyler Total 2013 2013 2013 3Q14 3Q14 3Q14 2015 Target 2015 Target` 2015 Target $64 $90 $150 + $25-$35 2013 LTM 3Q14 Annualized 1Q15 Incremental Target Annualized 2015 Exit Rate Target Growing and Improving Asset Base Across all Segments (1) 27 (in 000 bpd) ($
Slide 28: Investment highlights and Questions and Answers
28 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
Slide 29: Appendix Additional Data
Appendix Additional Data
Slide 30: Market Fundamentals
($0.14) ($0.28) ($2.32) ($3.50) ($8.31) ($6.60) ($10.23) ($12.72) ($8.61) ($6.67) ($2.11) ($0.50) 2Q13 3Q13 4Q13 1Q14 2Q14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 $94.14 $105.94 $97.55 $98.60 $103.07 $102.48 $96.21 $93.09 $84.47 $76.40 $67.75 2Q13 3Q13 4Q13 1Q14 2Q14 Jul-14 Aug-14 Sep-14 Oc
Slide 31: Delek US Focused on Building an Integrated Business Model
Delek US Focused on Building an Integrated Business Model 31 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. (2) Mt. Pleasant includes $1.1 million of in
Slide 32: Historical and Projected Capital Spending
$42.3 $36.0 $65.9 $144.3 $217.8 $0.9 $10.5 $5.1 $9.9 $14.4 $36.5 $29.1 $37.9 $28.8 $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. $277.7mm
Slide 33: Non-GAAP Reconciliation
Non-GAAP Reconciliation 33 Source: Company filings. Note: 2013 Contribution Margin adjusted to reflect $8 million of trucking expenses moving from general & administrative expenses to cost of goods sold based on 2014 financial statement format. ($ in millions) 2012 2013 YTD 9/30/14 Net cash provided
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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