Delek Logistics Partners, L.p. · NYSE:DKL
Delek Logistics Partners, L.p — Investor Presentation (November 2021)
29 slides from Delek Logistics Partners, L.p's investor presentation, Nov 12, 2021
Slide 1: Form 8-K Cover Page
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 November 12, 2021 Date of Report (Date of earliest event reported) DELEK LOGISTICS PARTNERS, LP (Exact name of registrant as specifie
Slide 2: Item 7.01 Regulation FD Disclosure
Item 7.01 Regulation FD Disclosure Effective November 12, 2021, senior management of the general partner of Delek Logistics Partners, LP (the “Partnership,” “our” or “we”) will begin using the materials included in Exhibit 99.1 to this report (the “Investor Presentation”) in connection with presenta
Slide 3: Signatures
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: November 12, 2021 DELEK LOGISTICS PARTNERS, LP By: Delek Logistics GP, LLC its general partner /s/
Slide 4: Delek Logistics Partners November 2021
Investor Presentation Delek Logistics Partners November 2021 Exhibit 99.1
Slide 5: Disclaimers
Disclaimers 2 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 slid
Slide 6: Investment Overview
• Current Distribution: $0.95/LP unit qtr; $3.80/LP unit annualized (1); ~8.1% current yield (2) • On-track to deliver 5% distribution growth in 2021 over 2020 levels • MVC’s underpin ~65% of gross margins providing stability Overview (NYSE: DKL) • Net Income of $43.6 million, Net cash from operatin
Slide 7: Simplified Organizational Structure
4 Simplified Organizational Structure 20% interest (8.7 million Common limited partner units) 100% Delek Logistics Partners, LP NYSE: DKL (the Partnership) Public Unitholders Operating Subsidiaries 80% interest (34.7 million Common limited partner units) Delek Logistics GP, LLC (the General Partner)
Slide 8: Delek US – A Growth Oriented, Financially Strong Partner
5 Asphalt 6 asphalt terminals located in: 1) El Dorado, AR 2) Muskogee, OK 3) Memphis, TN 4) Big Spring, TX 5) Henderson, TX 6) Richmond Beach, WA Refining 302,000 bpd in total El Dorado, AR Tyler, TX Big Spring, TX Krotz Springs, LA Crude oil supply: 262,000 bpd WTI linked currently I
Slide 9: Delek Logistics Partners, LP Overview
Delek Logistics Partners, LP Overview
Slide 10: Logistics Assets Positioned to Benefit from Permian Basin Activity
7 Logistics Assets Positioned to Benefit from Permian Basin Activity Growing logistics assets support crude sourcing and product marketing for customers • ~805 miles (1) of crude and product transportation pipelines, including the 195 mile crude oil pipeline from Longview to Nederland, TX • ~ 600 mi
Slide 11: Multi-Year Contracts with Firm Commitments / MVCs
8 Multi-Year Contracts with Firm Commitments / MVCs Contract Highlights • The Lion Pipeline System and SALA Gathering System are supported by a long-term contract that includes three take- or-pay commitments • Initial term of 5 years, maximum term of 15 years (2) • Crude oil transportation throughpu
Slide 12: Financial Flexibility and Growing Distributable Cash Flow
9 Financial Flexibility and Growing Distributable Cash Flow 1) Reconciliation of EBITDA to Net Income provided on page 24. Excluded are predecessor costs related to the crude oil storage tank and rail offloading racks acquired in March 2015. 2) Reconciliation of distributable cash flow to net cash f
Slide 13: Distribution Coverage
1.39x 1.32x 1.35x 1.30x 1.61x 2.02x 1.42x 1.67x 1.25x 1.49x 1.47x 1.18x 1.20x 1.29x 0.98x 1.00x 0.88x 1.06x 0.97x 0.96x 1.14x 1.34x 1.25x 1.03x 1.06x 1.08x 1.11x 1.08x 1.15x 1.58x 1.50x 1.41x 1.31x 1.32x 1.34x 1Q132Q133Q134Q131Q142Q143Q144Q141Q152Q153Q154Q151Q162Q163Q164Q161Q172Q173Q174Q171Q182Q183Q
Slide 14: DKL Asset & Joint Venture Detail
DKL Asset & Joint Venture Detail
Slide 15: Joint Venture Pipeline Projects
12 Joint Venture Pipeline Projects Create platforms for future growth; Ability to leverage Permian position Caddo Pipeline • Delek Logistics (50%)/Plains Pipeline L.P. (50%) • Cost: $123 million • Capacity: 80,000 Bbl/d • Length: 80 miles • Completed: January 2017 • Provides additional logistics sup
Slide 16: Red River Pipeline Joint Venture
13 Delek US is a major shipper on pipeline; increased crude oil optionality Increasing by 65,000 bpd to 100,000 bpd following expansion; Incremental 24 million bbls/yr of Cushing crude oil into Longview, TX From Longview, TX DKL has access to: Delek US refining system providing ability to re
Slide 17: Midstream: Big Spring Gathering System
14 Midstream: Big Spring Gathering System Gathering Helps Control Crude Oil Quality and Cost into Refineries Big Spring Gathering System Approximately 200-mile gathering system 350 Kbpd throughput capacity >275,000 dedicated acres Points of origin: Howard, Borden, Martin and Midland counties
Slide 18: Enhancing Our Position In Midstream
15 Enhancing Our Position In Midstream Krotz Springs • Logistics assets associated with Krotz Springs refinery Wink to Webster Pipeline • Long haul pipeline from Permian to Gulf Coast providing stable cash flow and connected to our Big Spring Gathering system, providing access to additional crude in
Slide 19: Several Visible Pathways for Growth
16 Several Visible Pathways for Growth Focused around developing Permian platform; Growing logistics asset base at sponsor Balance Sheet Supportive • $4.9 million cash & $589.1 million unused credit facility at September 30, 2021 on $850 million revolving credit facility • Leverage ratio was 3.44x (
Slide 20: Valuation Below Peer Average; Consecutive Distribution Increases
17 2022 Valuation Below Peer Average EV-to-EBITDA Consistency: DKL Has Increased Quarterly Distributions Consecutively Since IPO in 4Q12 (1) Based on Factset as of November 8, 2021. 0.0x 2.0x 4.0x 6.0x 8.0x 10.0x 12.0x 14.0x DKL HEP MPLX PBFX PSXP PAA NS MMP ET EPD EV/EBITDA (consensus estimates) 20
Slide 21: Wells Fargo: A Look at Midstream ROIC
18 Wells Fargo: A Look at Midstream ROIC “DKL has generated the highest value and cash returns over the past five years (2015-20) compared to its peers” (1) Source: Wells Fargo 2 0 1 5 -2 0 2 0 2 0 2 1 Drivers The execution of dropdowns and third-party acquisitions at attractive multiples Scalab
Slide 22: Investment Highlights
Majority of assets support Delek US’ strategically located inland refining system Inflation-indexed fees for most contracts Majority of all margin generated by long term, fee-based contracts with volume minimums Agreements with Delek US related to capex/opex reimbursement Balance sheet positioned to
Slide 23: Appendix
Appendix oO
Slide 24: Distributable Cash Flow Reconciliation
21 1) Distribution based on actual amounts distributed during the periods; does not include LTIP accrual. Coverage is defined as cash available for distribution divided by total distribution. 2) Results in 2013, 2014 and 2015 are as reported excluding predecessor costs related to the dropdown of the
Slide 25: Income Statement and Non-GAAP EBITDA Reconciliation
22 1) Results in 2013 and 2014 are as reported excluding predecessor costs related to the dropdown of the tank farms and product terminals at both Tyler and El Dorado during the respective periods. 2) Results for 1Q15 are as reported excluding predecessor costs related to the 1Q15 dropdowns. Note: M
Slide 26: Reconciliation of Basic Gross Margin
23 DKL: Reconciliation of Basic Gross Margin (dollars in millions) 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 DKL: Reconciliation of Basic Gross Margin Net Revenues $152.5 $155.3 $137.6 $138.6 $163.4 $117.6 $142.3 $140.1 $152.9 $168.5 $189.6 Cost of Sales $117.7 $116.6 $96.2 $102.2 $121.
Slide 27: Summary of Certain Contracts
24 Summary of Certain Contracts Asset/Operation Initiation Date Contract End Date Term Minimum Throughput (bpd) Fee/bbl Asset/Operation Initiation Date Contract End Date Term Minimum Throughput (bpd) Fee/bbl Crude Oil Pipelines Nov-12 Mar-24 [3] 46,000 1.0475$ [11] Crude Oil Throughput Mar-18 Feb-28
Slide 28: Summary of Certain Contracts Footnotes
25 Summary of Certain Contracts Footnotes [1] [2] [3] [4] [5] [6] [7] [8] [9] [10] [11] [12] [13] [14] Note: The Paline Pipeline agreements executed in February 2018 were excluded from the table above as their non-cancelable terms are less than one year. A Information obtained from the applicable ag
Slide 29: Investor Relations Contacts
Investor Relations Contacts: Blake Fernandez, SVP IR/Market Intelligence 615-224-1312 Kaley Weinstein, Investor Relations Analyst 267-701-0111
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