Delek Logistics Partners, L.p. · NYSE:DKL
Delek Logistics Partners, L.p — Investor Presentation (May 2021)
25 slides from Delek Logistics Partners, L.p's investor presentation, May 19, 2021
Slide 1: Investor Presentation Delek Logistics Partners May 2021
Investor Presentation Delek Logistics Partners May 2021 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 and 1Q21 Highlights
• Current Distribution: $0.92/LP unit qtr.; $3.68/LP unit annualized (1); ~9% current yield (2) • On-track to deliver 5% distribution growth in 2021 over 2020 levels • MVC’s underpin ~67% of gross margins providing stability Overview (NYSE: DKL) • Net Income of $36.3 million, Net cash from operating
Slide 4: Simplified Organizational Structure
4 Simplified Organizational Structure 20% interest (8.7 million units) Limited partner-common 100% Delek Logistics Partners, LP NYSE: DKL (the Partnership) Public Unitholders Operating Subsidiaries 80% interest (34.7 million units) Limited partner-common Delek Logistics GP, LLC (the General Partner)
Slide 5: 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 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: Delek Permian Gathering East System
Delek Permian Gathering East System 8 DPG East SystemEquipment Lease Automatic Custody Transfer Units (LACTS) 45 Installations Pipeline 60 miles Tanks (bbl) 2 (50M, 300M)
Slide 9: Delek Permian Gathering West System
Delek Permian Gathering West System 9 DPG West System Equipment Lease Automatic Custody Transfer Units (LACTS) 6 Installations Pipeline 70 miles Tanks (bbl) 1 (50M)
Slide 10: Multi-Year Contracts with Firm Commitments / MVCs
10 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 throughp
Slide 11: Financial Flexibility and Growing Distributable Cash Flow
11 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
Slide 12: Distribution Coverage History
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 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q
Slide 13: DKL Asset & Joint Venture Detail
DKL Asset & Joint Venture Detail
Slide 14: Joint Venture Pipeline Projects
14 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 15: Red River Pipeline Joint Venture Expansion
15 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 16: Midstream: Big Spring Gathering System
16 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 17: Enhancing Our Position In Midstream
17 Enhancing Our Position In Midstream $256 ~$30-$35 ~$80-$105 ~$365-$395 3 Months Ending 12/31/2020 Annualized Krotz Springs Midstream Assets Wink to Webster & Other Midstream Growth Initiatives Total Annual Segment Earnings Potential Krotz Springs • Logistics assets associated with Krotz Springs r
Slide 18: Several Visible Pathways for Growth
18 Several Visible Pathways for Growth Focused around developing Permian platform; Growing logistics asset base at sponsor Balance Sheet Supportive • $13.4 million cash & $112.5 million unused credit facility at March 31, 2021 on $850 million revolving credit facility • Leverage ratio was 3.66x (2)
Slide 19: 2021 Valuation Below Peer EV-to-EBITDA
19 2021 Valuation Below Peer EV-to-EBITDA DKL’s financial flexibility and growth initiatives of strong sponsor DK positions it for growth (1) Based on Factset as of May 14, 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 2021 2022 21 Avg 22 Avg
Slide 20: 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 21: Appendix
Appendix a)
Slide 22: DKL: Reconciliation of Distributable Cash Flow
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
Slide 25: Investor Relations Contacts
Investor Relations Contacts: Blake Fernandez, SVP IR/Market Intelligence 615-224-1312
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