Delek Us Holdings, Inc. · NYSE:DK
Delek Us — Q3 2024 Earnings Presentation
32 slides from Delek Us's earnings presentation, Nov 6, 2024
Slide 1: Third Quarter 2024 Earnings Conference Call
Exhibit 99.2 Third Quarter 2024 Earnings Conference Call November 6, 2024
Slide 2: Disclaimers
Disclaimers 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 slides
Slide 3: Overview
Overview • Making significant progress on SOTP efforts ◦ Timely Retail sale to maintain B/S strength ◦ Intercompany transactions completed ◦ Making progress towards Midstream deconsolidation • Operations: Another Safe and Reliable Quarter ◦ Original cost reductions exceeding $100mm target ◦ Announce
Slide 4: SOTP Update
SOTP Update ***Placeholder image*** 4 *Ownership % represents a change from 12/31/2023
Slide 5: SOTP: Midstream Value Creation
SOTP: Midstream Value Creation 5
Slide 6: SOTP: Midstream Value Creation
SOTP: Midstream Value Creation 1Q24: 3Q24: 3Q24: 4Q24: Equity Offering: W2W Drop-Down Acquired H2O Equity Offering: Raised $132mm Amend and Extend Midstream Raised $165mm 6 Assumes DKL EBITDA is all 3rd party
Slide 7: Focus on Free Cash Flow: Enterprise Optimization Plan
Focus on Free Cash Flow: Enterprise Optimization Plan EOP initiatives are focused on improving DK’s financial health & ability to generate free cash flow Expect to be at the run-rate of at least $100mm through EOP in 2H25 EOP Action Items Efficient (Costs) Stronger (Margins) • Lower G&A (Sustainable
Slide 8: DK Illustrative Valuation (based on mid-cycle EBITDA & FCF)
DK Illustrative Valuation (based on mid-cycle EBITDA & FCF) 8
Slide 9: Focus on Free Cash Flow: Lowered 2025 Capex
Focus on Free Cash Flow: Lowered 2025 Capex Reduction in capex, along with EOP efforts should enhance cash flow generation 9
Slide 10: Lower Costs & Improved Reliability
Lower Costs & Improved Reliability Inflation Rate 7.1% 5.8% 4.0% 3.5% 3.2% 3.3% 3.3% 3.0% (1) Guidance Mid-Point 10 (1) 4Q22 - 3Q24 include discontinued operations expenses related to Retail
Slide 11: Big Spring Operational Improvements
Big Spring Operational Improvements 2Q 2023 - 3Q 2024 11 *4Q24 throughput value is the midpoint of guidance
Slide 12: Total Refining Throughput
Total Refining Throughput 3Q 2024 vs 2Q 2024 MBPD 316.0 0.4 307.6 -0.7 -6.7 -1.4 2Q24 Tyler El Dorado Big Spring Krotz Springs 3Q24 3Q24 Production Margin per bbl. Tyler El Dorado Big Spring Krotz Springs $7.48 $0.66 $6.82 $4.80 12 *Throughputs are rounded
Slide 13: Financial Summary
Financial Summary 3rd Quarter 2024 Financial Highlights $ in millions (except per share) Net Loss $(76.8) Net Loss Per Share $(1.20) Adjusted Net Loss $(93.0) Adjusted Net Loss per share $(1.45) EBITDA $89.7 Adjusted EBITDA $70.6 Cash from operations $(21.6) 13
Slide 14: Adjusted EBITDA
Adjusted EBITDA 3Q 2024 vs 2Q 2024 ($MM) $107.5 $5.5 $70.6 $(31.9) $(6.3) $(4.2) 2Q24 Refining Logistics Corporate Discontinued 3Q24 Operations (Retail) 3Q24 Adjusted EBITDA Results Discontinued Refining Logistics Corporate Operations (Retail) $10.2 $106.1 $(53.9) $8.2 14 *$MM's are rounded
Slide 15: Consolidated Cash Flow
Consolidated Cash Flow 3Q 2024 vs 2Q 2024 ($MM) $322.9 $1,037.6 $78.4 $657.9 $(21.6) 6/30/2024 Operating Activities Investing Activities Financing Activities 9/30/2024 Cash Balance* Cash Balance* *includes cash and cash equivalents Note: Includes discontinued operations 15
Slide 16: Capital Program
Capital Program 2024 YTD Actual & 2024 Forecast 2024 2024 $'s in Millions YTD (1) (2) Forecast (2) 20% 2024 Actual ($ millions) Total Total Regulatory & Sustaining Growth Refining $ 126 $ 220 80% Logistics (Delek Logistics Partners) 37 70 Discontinued Operations (Retail) 14 15 22% 2024 Corporate & O
Slide 17: Net Debt
Net Debt 2024 vs 2023 $'s in Millions Sept 30, 2024 Dec 31, 2023 Consolidated long-term debt - current portion $ 9.5 $ 44.5 Consolidated long-term debt - non-current portion 2,779.9 2,555.3 Consolidated total long-term debt $ 2,789.4 $ 2,599.8 Less: Cash and cash equivalents 1,037.6 821.8 Consolidat
Slide 18: Guidance
Guidance 4th Quarter 2024 $'s in Millions Low High Operating Expenses $177 $188 General and Administrative Expenses $53 $58 Depreciation and Amortization $95 $105 Net Interest Expense $75 $80 Barrels per day (bpd) Low High Total Crude Throughput 255,000 269,000 Total Throughput 265,000 276,000 Total
Slide 19: Supplemental Slides
19 Supplemental Slides . fusy
Slide 20: Lease Adjustments Impact to Adjusted EBITDA
Lease Adjustments Impact to Adjusted EBITDA Lease Adjustment: Proforma (No Lease Lease Adjustments Adjusted EBITDA As Adjustments) Reported Segment ProForma Δ Margin As Reported Refining Segment $42.3 $(32.1) $10.2 Logistics and All Other $20.1 $32.1 52.2 Segments DK Consolidated $62.4 $— 62.4 Adjus
Slide 21: Total Refining Throughput
Total Refining Throughput 3Q 2024 vs 3Q 2023 MBPD 305.9 7.7 1.3 307.6 -1.0 -6.3 3Q23 Tyler El Dorado Big Spring Krotz Springs 3Q24 3Q24 Production Margin per bbl. Tyler El Dorado Big Spring Krotz Springs $7.48 $0.66 $6.82 $4.80 21 *Throughputs are rounded
Slide 22: Adjusted EBITDA
Adjusted EBITDA 3Q 2024 vs 3Q 2023 ($MM) $345.1 $9.6 $10.0 $70.6 $(285.9) $(8.2) 3Q23 Refining Logistics Corporate Discontinued 3Q24 Operations (Retail) 3Q24 Adjusted EBITDA Results Discontinued Refining Logistics Corporate Operations (Retail) $10.2 $106.1 $(53.9) $8.2 22 *$MM's are rounded
Slide 23: Adjusted EBITDA
Adjusted EBITDA YTD 2024 vs 2023 ($MM) $889.1 $27.6 $10.0 $336.8 $(579.7) $(10.2) 2023 Refining Logistics Corporate Discontinued 2024 Operations (Retail) YTD 2024 Adjusted EBITDA Results Discontinued Refining Logistics Corporate Operations (Retail) $162.4 $306.4 $(159.9) $27.9 23
Slide 24: YTD Consolidated Cash Flow
YTD Consolidated Cash Flow ($MM) $144.4 $1,037.6 $96.7 $822.2 $(25.7) 12/31/2023 Operating Activities Investing Activities Financing Activities 9/30/2024 Cash Balance* Cash Balance* *includes cash and cash equivalents Note: Includes discontinued operations 24
Slide 25: Reconciliation of U.S. GAAP Net Income (Loss) to Adjusted Net Income (Loss)
Reconciliation of U.S. GAAP Net Income (Loss) to Adjusted Net Income (Loss) Three Months Ended September 30, Nine Months Ended September 30, $ in millions (unaudited) 2024 2023 2024 2023 Reported net (loss) income attributable to Delek US $ (76.8) $ 128.7 $ (146.6) $ 184.7 Adjusting items (1) Invent
Slide 26: Reconciliation of U.S. GAAP Net Income (Loss) per share to Adjusted Net Income (Loss) Per Share
Reconciliation of U.S. GAAP Net Income (Loss) per share to Adjusted Net Income (Loss) Per Share Three Months Ended September 30, Nine Months Ended September 30, $ per share (unaudited) 2024 2023 2024 2023 Reported diluted (loss) income per share $ (1.20) $ 1.97 $ (2.29) $ 2.78 Adjusting items, after
Slide 27: Reconciliation of Net (Loss) Income attributable to Delek US to Adjusted EBITDA
Reconciliation of Net (Loss) Income attributable to Delek US to Adjusted EBITDA Three Months Ended Three Months Ended September 30, Nine Months Ended September 30, June 30, $ in millions (unaudited) 2024 2023 2024 2023 2024 Reported net (loss) income attributable to Delek US $ (76.8) $ 128.7 $ (146.
Slide 28: Reconciliation of Segment EBITDA to Adjusted Segment EBITDA
Reconciliation of Segment EBITDA Attributable to Delek US to Adjusted Segment EBITDA Three Months Ended September 30, 2024 Corporate, Other $ in millions (unaudited) Refining Logistics and Eliminations Consolidated Segment EBITDA Attributable to Delek US $ 12.8 $ 68.6 $ (79.6) $ 1.8 Adjusting items
Slide 29: Reconciliation of Segment EBITDA to Adjusted Segment EBITDA
Reconciliation of Segment EBITDA Attributable to Delek US to Adjusted Segment EBITDA Nine Months Ended September 30, 2024 Corporate, Other $ in millions (unaudited) Refining (3) Logistics and Eliminations (3) Consolidated Segment EBITDA Attributable to Delek US $ 135.2 $ 268.9 $ (135.5) $ 268.6 Adju
Slide 30: Reconciliation of Segment EBITDA to Adjusted Segment EBITDA
Reconciliation of Segment EBITDA Attributable to Delek US to Adjusted Segment EBITDA Three Months Ended June 30, 2024 Corporate, Other Discontinued $ in millions (unaudited) Refining Logistics and Eliminations Operations (Retail) Consolidated Segment EBITDA Attributable to Delek US $ 17.3 $ 100.6 $
Slide 31: Reconciliation of Income From Continuing Operations to Adjusted EBITDA
Reconciliation of (Loss) Income From Continuing Operations, Net of Tax to Adjusted EBITDA from Continuing Operations Reconciliation of (Loss) Income From Continuing Operations, Net of Tax to Adjusted EBITDA from Continuing Operations Three Months Ended September 30, Nine Months Ended September 30, $
Slide 32: Reconciliation of Income From Discontinued Operations to Adjusted EBITDA
Reconciliation of (Loss) Income From Discontinued Operations, Net of Tax to Adjusted EBITDA from Discontinued Operations Reconciliation of Income From Discontinued Operations, Net of Tax to Adjusted EBITDA from Discontinued Operations Three Months Ended September 30, Nine Months Ended September 30,