Delek Us Holdings, Inc. · NYSE:DK
Delek Us — Investor Presentation (August 2012)
23 slides from Delek Us's investor presentation, Aug 10, 2012
Slide 1: Investor Presentation August 2012
Investor Presentation August 2012
Slide 2: Safe Harbor Provision
Safe Harbor Provision 2 Delek US Holdings is traded on the New York Stock Exchange in the United States under the symbol “DK” and, as such, is governed by the rules and regulations of the United States Securities and Exchange Commission. This presentation may contain forward-looking statements that
Slide 3: Integrated Downstream Energy Company
Integrated Downstream Energy Company(1) Breadth of Exposure Across Refining, Wholesale Marketing and Retail Distribution Operates 140,000 BPD of combined refined production capacity in Texas and Arkansas Refining Segment ) Owned crude/product terminals and pipeline assets in Texas, Arkansas and Tenn
Slide 4: Recent Financial Performance
$158.3 $16.9 $62.1 $79.0 $46.2 $67.8 $114.0 FY 2011 Q1 Q2 H1 2011 2012 Recent Financial Performance 4 (1) Represents net income from continuing operations (2) Delek US assumed operational control of the El Dorado refinery and related assets through the acquisition of a majority equity interest in Li
Slide 5: Refining Segment Operational Update
Refining Segment Operational Update
Slide 6: Longview and Rail Support Crude Slate Flexibility for Refining System
Longview and Rail Support Crude Slate Flexibility for Refining System 6 Focused On Increasing Refining System Access to Cost-Advantaged Feedstocks Tyler Refinery El Dorado Refinery Longview Crude Hub Longview Can Receive Gulf Coast and Foreign Crudes Longview Can Receive West Texas Crudes Longview C
Slide 7: Year-over-Year Improvement in Refining Economics
$17.54 $23.14 $28.53 $21.82 $23.87 $25.41 $25.34 $24.90 $0.00 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 Q1 Q2 July YTD 2011 2012 +$3.08/bbl on a y/y basis 54,407 60,032 47,452 55,317 58,461 127,784 145,878 146,190 134,017 127,097 137,000 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 Jul 2012 Year
Slide 8: Favorable Refining Economics Continue Into 3Q12
($30.00) ($20.00) ($10.00) $0.00 $10.00 $20.00 $30.00 $40.00 Ja n -1 0 Fe b -1 0 M ar -1 0 A p r- 1 0 M ay -1 0 Ju n -1 0 Ju l- 1 0 A u g- 1 0 Se p -1 0 Oc t- 1 0 N o v- 1 0 D ec -1 0 Ja n -1 1 Fe b -1 1 M ar -1 1 A p r- 1 1 M ay -1 1 Ju n -1 1 Ju l- 1 1 A u g- 1 1 Se p -1 1 Oc t- 1 1 N o v- 1 1 D e
Slide 9: Asphalt Prices Above Prior-Year Levels
Asphalt Prices Above Prior-Year Levels(1) 9 Midwest/Mid-Con Market – Tulsa, Oklahoma / Southern Kansas (Asphalt Price Per Barrel) (1) Source: Poten & Partners $0.00 $20.00 $40.00 $60.00 $80.00 $100.00 $120.00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2010 2011 2012
Slide 10: Crude Slate Transition at El Dorado Underway
Crude Slate Transition at El Dorado Underway 10 Historically processed local Arkansas, domestic offshore and foreign crude oils El Dorado Has A Diverse Crude Slate Displacing expensive foreign and GC crudes with discounted local, inland crudes Supplying More WTI-Linked Barrels We Anticipate El Dorad
Slide 11: Improved Access to Rail Supplied Crude to El Dorado
Improved Access to Rail Supplied Crude to El Dorado 11 Including Bakken, Canada, Eagle Ford, and Cushing Access to addition types of crude Allows increased throughput to above 70,000 bpd at the El Dorado Refinery Supplying More WTI-Linked Barrels Rail capabilities improve access to more economical t
Slide 12: Access To Lower Cost Crude at Tyler Refinery
Access To Lower Cost Crude at Tyler Refinery 12 Processes primarily West Texas Intermediate and East Texas crude oils On a blended basis, Tyler is purchasing crude at ~$1.60/bbl above WTI in 3Q12 Tyler Crude Costs Near Parity with WTI Tyler Refinery Enjoys An Advantaged Crude Slate – Anticipate More
Slide 13: Identified Quick-Hit Capital Projects
Identified “Quick-Hit” Capital Projects 13 Completed Low-Cost, High-Return Capital Projects at Tyler and El Dorado LSR/Sat Gas Project (LSR) -El Dorado Scope: Improve liquid recovery of Butane & Propane at El Dorado Cost: $13.5 million Anticipated Return: $15-18 million contribution margin ann
Slide 14: Retail Segment Operational Update
Retail Segment Operational Update
Slide 15: Growth In Same-Store Sales
Growth In Same-Store Sales Key Factors That Drive Same-Store Sales Relevant Factors: Location, size, appeal, offering, affordability, people Same-Store Merchandise Sales ) Relevant Factors: Commodity prices, weather, empl oyment, supply disruptions Same-Store Gallons Sold 15 Consistent Growth In Sam
Slide 16: Store Reimaging & New Construction Initiatives
Store Reimaging & New Construction Initiatives(1) Reimaging and Construction Update Approximately 188 stores have been built or reimaged since 2006 Multi-Year Store Enhancement Initiative ) Long-term target of at least 8-12 new large-format builds per annum Multi-Year New Store Construction Plan 16
Slide 17: Marketing Segment Operational Update
Marketing Segment Operational Update
Slide 18: Midstream Assets Generate Consistent Results
Midstream Assets Generate Consistent Results Wholesale Marketing In West Texas Owned (San Angelo, Abilene, Tyler); Third-Party (Aledo, Odessa, Big Springs, Frost) Product Marketing Terminals 18 ) Annual CAPEX less than $1 million per year 2006 -2011 Minimal CAPEX requirements ) Positive contribution
Slide 19: S-1 Filed on July 12, 2012 for Potential IPO of Logistics Assets
S-1 Filed on July 12, 2012 for Potential IPO of Logistics Assets 19 (1) Tyler, TX and El Dorado, AR refineries will not be included in the MLP Abilene Terminal San Angelo Terminal SALA Gathering System Paline Pipeline Big Sandy Terminal Nashville Terminal Memphis Terminal El Dorado Refinery Tyler Re
Slide 20: Appendix Additional Data
Appendix Additional Data
Slide 21: WTI Midland vs. WTI Cushing
($7.00) ($6.00) ($5.00) ($4.00) ($3.00) ($2.00) ($1.00) $0.00 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 WTI Midland vs. WTI Cushing 21 Expanding Differential Between Midland and Cushing Sourced WTI (1) Source:
Slide 22: Historical and Projected Capital Spending
$42.3 $36.0 $89.7 $14.5 $45.0 $35.1 2010 (A) 2011 (A) 2012 (E) Refining Retail, Marketing and Other Historical and Projected Capital Spending 22 2010: $56.8 mm 2011: $81.0 mm 2012 (E): $124.8 mm Estimate includes a full- year of capital spending at Lion Oil Company
Slide 23: NYSE DK
DK NYSE
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