Delek Logistics Partners, L.p. · NYSE:DKL
Delek Logistics Partners, L.p — Investor Presentation (March 2022)
27 slides from Delek Logistics Partners, L.p's investor presentation, Mar 4, 2022
Slide 1: Investor Presentation Delek Logistics Partners March 2022
Investor Presentation Delek Logistics Partners March 2022 Exhibit 99.1
Slide 2: 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 3: Investment Overview
• Current Distribution: $0.975/LP unit qtr; $3.90/LP unit annualized (1); ~9.4% current yield (2) • Delivered the 5% distribution growth in 2021 over 2020 levels; another 5% expected in 2022 • MVC’s underpin ~65% of gross margins providing stability Overview (NYSE: DKL) • Net Income of $41.7 million
Slide 4: Simplified Organizational Structure
4 Simplified Organizational Structure 20.2% interest (8.8 million Common limited partner units) 100% Delek Logistics Partners, LP NYSE: DKL (the Partnership) Public Unitholders Operating Subsidiaries 79.8% interest (34.7 million Common limited partner units) Delek Logistics GP, LLC (the General Part
Slide 5: Integrated Delek US and Delek Logistics asset overview
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 6: Delek Logistics Partners, LP Overview
Delek Logistics Partners, LP Overview
Slide 7: 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 8: 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 9: 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 10: Distribution coverage by quarter
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 1.27x 1Q132Q133Q134Q131Q142Q143Q144Q141Q152Q153Q154Q151Q162Q163Q164Q161Q172Q173Q174Q171Q18
Slide 11: December 31, 2021 – Debt Maturity Profile
11 December 31, 2021 – Debt Maturity Profile DK and DKL Debt Profile Delek Logistics Credit Facility Delek Logistics 2025 Notes Delek Logistics 2028 Notes Term Loan Credit Facility Hapoalim Term Loan Reliant Bank Revolver 0 250 500 750 1000 1250 1500 2022 2023 2024 2025 2026 2027 2028 Credit Ratings
Slide 12: DKL Asset & Joint Venture Detail
DKL Asset & Joint Venture Detail
Slide 13: Joint Venture Pipeline Projects
13 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 14: Red River Pipeline: Cushing to Longview crude oil optionality
14 Transportation from Cushing to Longview; 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 15: Midstream: Permian Gathering System
15 Midstream: Permian Gathering System Gathering Helps Control Crude Oil Quality and Cost into Refineries Permian Gathering System Approximately 200-mile gathering system 350 Kbpd throughput capacity >300,000 dedicated acres expected in 2022 Points of origin: Howard, Borden, Martin and Midla
Slide 16: Enhancing Our Position In Midstream
16 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 17: Several Visible Pathways for Growth
17 Several Visible Pathways for Growth Focused around developing Permian platform; Growing logistics asset base at sponsor Balance Sheet Supportive • $4.3 million cash & $592 million unused credit facility at December 31, 2021 on $850 million revolving credit facility • Leverage ratio was 3.4x (2) a
Slide 18: 2022 Valuation Relative to Peer Average EV-to-EBITDA
18 2022 Valuation Relative to Peer Average EV-to-EBITDA Consistency: DKL Has Increased Quarterly Distributions Consecutively Since IPO in 4Q12 (1) Based on Factset as of February 21, 2022. 0.0x 2.0x 4.0x 6.0x 8.0x 10.0x 12.0x DKL HEP MPLX PBFX PSXP PAA NS MMP ET EPD EV/EBITDA (consensus estimates) 2
Slide 19: Wells Fargo: A Look at Midstream ROIC
19 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 20: Overarching Objectives and Key Initiatives
20 Overarching Objectives and Key Initiatives
Slide 21: Appendix
Appendix oO
Slide 22: Distributable cash flow reconciliation
22 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 23: DKL: Income Statement and Non-GAAP EBITDA Reconciliation
23 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 24: DKL: Reconciliation of Basic Gross Margin
24 DKL: Reconciliation of Basic Gross Margin (dollars in millions) 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 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 $189.9 Cost of Sales $117.7 $116.6 $96.2
Slide 25: Summary of Certain Contracts
25 Summary of Certain Contracts
Slide 26: Summary of Certain Contracts Footnotes
26 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 27: 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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