Delek Us Holdings, Inc. · NYSE:DK
Delek Us — Investor Presentation (March 2014)
27 slides from Delek Us's investor presentation, Mar 3, 2014
Slide 1: Delek US Holdings, Inc. Investor Presentation March 2014
Delek US Holdings, Inc. Investor Presentation March 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 Integrated Downstream Energy Company 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 Tennessee Logistics Segment (1) Approximately 361 convenience
Slide 4: Well Positioned Mid-Continent Refining System
WTI - Midland 90% East Texas 10% Gulf Coast 1% Inland / Local 86% Rail 13% Well Positioned Mid-Continent Refining System 4 Strategically Located Assets Provide Access to Cost-Advantaged Feedstocks Tyler Crude Source (4Q13) El Dorado Crude Source (4Q13) Permian Eagle Ford Woodford 75% of 2014 Crude S
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) $0.00 ` WTI Midland vs. WTI Cushing Crude Pricing Access to Midland Crudes Benefits Margins 7 Source: Argus – April MTD as of February 27, 2014 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 ($ per barrel) 1Q14 2Q14 87,000 bpd o
Slide 8: Market Fundamentals
$19.83 $14.86 $14.20 $7.71 $10.02 $15.02 $14.37 $17.28 $13.99 Q2 2013 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Market Fundamentals(1) 8 Improving light product prices Declining crude prices improving residual margins, particularly asphalt at El Dorado Gulf Coast crack spreads in
Slide 9: Tyler Refinery Overview
35,000 52,000 25,000 8,000 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 1Q13 Beg. Apr. 2013 forward WTI - Midland East Texas / Other Gasoline 54% LPGs 3% Diesel / Jet 40% Other 3% WTI-Midland 90% East Texas 10% Tyler Refinery Overview 9 Inland PADD III refinery located in East Texas Serves
Slide 10: El Dorado Refinery Overview
Improving Niche Market Position with a Crude Slate Weighted to WTI-Linked Crude El Dorado Refinery Overview 10 Inland PADD III refinery located in Southern Arkansas Improved flexibility during 1Q14 turnaround; FCC reactor replaced; DHT expanded; Pre-flash tower project completed 80,000 bpd, 9.
Slide 11: Rail Unloading Improved Crude Access at El Dorado
Rail Unloading Improved Crude Access at El Dorado 11 (1) Rail capability will give the option of up to 12,000 bpd of heavy crude or up to 25,000 bpd of light crude, or some combination, at Delek’s El Dorado offloading operation. Also have access to 20,000 bpd light crude capacity via third party rai
Slide 12: Significant Organic Growth / Margin Enhancement Opportunities
Significant Organic Growth / Margin Enhancement Opportunities 12 DHT Revamp – Phases I & II Increase ULSD production from 30,000 bpd to 34,000 bpd; (Phase 1 increased to 33,000 bpd) Completed low-cost, high-return capital projects at El Dorado and Tyler SCOPE COST TIMING $3.0 million Completed C
Slide 13: Logistics and Retail Operational Update
Logistics and Retail Operational Update
Slide 14: Delek Logistics Partners, LP Overview
Delek Logistics Partners, LP Overview (NYSE: DKL) 14 DKL Asset Overview ~450 miles of crude and product transportation pipelines, including the 185 mile crude oil pipeline from Longview to Nederland, TX 600 mile crude oil gathering system Storage facilities with 6.5 million barrels of active s
Slide 15: DKL: Strong Performance & Value Creation Since IPO
Midstream MLP with long-term contracts providing stable, growing cash flow Supports Delek US’ profitable and strategically located inland refining system Unlocks value of marketing and logistics assets Strategic vehicle for growth Visible asset dropdown opportunities Partner for future a
Slide 16: DKL: Several Visible Pathways to Growth
DKL: Several Visible Pathways to Growth 16 Dropdowns from Delek US Organic Growth Acquisitive Growth $5 - $10 Million of potential EBITDA expected to be dropped down over next 12 months in addition to recently completed Tyler and El Dorado asset drop downs 25,000 bpd (light crude) rail offloadin
Slide 17: DKL: Recent Acquisitions
DKL :Recent Acquisitions Approximately $22.1 million of annual EBITDA 17 Tyler Tank Farm and Product Terminal First drop down from Delek US since the IPO, acquired July 26, 2013 Purchase price: $94.8 million Assets Include: 72,000 bpd capacity product terminal Approximately 2.0 million bar
Slide 18: Strong Retail Presence
990 1,039 1,082 1,112 272 276 2010 2011 2012 2013 4Q12 4Q13 $897 $951 $1,011 $1,037 $244 $256 2010 2011 2012 2013 4Q12 4Q13 Strong Retail Presence 18 Expanding Market Footprint in Markets Capable of Being Supplied by El Dorado Fuel Gallons Sold Per Store (000’s) Merchandise Sales Per Store ($000’s)
Slide 19: Financial Update
Financial Update
Slide 20: Solid Financial Performance & Delivering Value to Shareholders
Financial Highlights $164 $151 $130 $445 $659 $448 2008 2009 2010 2011 2012 2013 2013 cash flow supported capital program, acquisitions and cash returned to shareholders Ended 2013 with $400 million of cash Strong 2012 cash flow generated from operations and Delek Logistics IPO Returning exc
Slide 21: Going Forward
Going Forward
Slide 22: Significant Organic Growth / Margin Enhancement Opportunities
Significant Organic Growth / Margin Enhancement Opportunities 22 Crude Slate improvement- Increased `Access to Midland sourced crude Quick Hit Capital projects – completed (1) Benefit is subject to market pricing economics and operating rates. (2) Benefit reflects annualized impact on EBITDA and
Slide 23: Investment Highlights Summary
23 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 24: Appendix Additional Data
Appendix Additional Data
Slide 25: Historical and Projected Capital Spending
$42.3 $36.0 $65.9 $144.3 $156.5 $0.9 $10.5 $5.1 $20.4 $14.4 $36.5 $29.1 $37.9 $29.5 $0.1 $7.6 $26.5 $35.0 $30.0 2010A 2011A 2012A 2013A 2014E * Refining Logistics (Marketing) Retail Other Historical and Projected Capital Spending 25 $56.8mm $81.0mm $132.0mm $222.3mm Source: Company filings. * 2014 r
Slide 26: Non-GAAP Reconciliation
Non-GAAP Reconciliation 26 Source: Company 10-K filings. ($ in millions) 2008 2009 2010 2011 2012 2013 Net s les $4,723.7 $2,666.7 $3,755.6 $7,198.2 $8,726.7 $8,706.8 Cost of goods sold 4,308.1 2,394.1 3,412.9 6,429.9 7,704.4 7,872.1 Operating expenses 240.8 219.0 229.5 320.9 363.3 386.7 Impairment
Slide 27: 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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