Delek Us Holdings, Inc. · NYSE:DK

Delek Us — InvestTN Equity Conference 2014

33 slides from Delek Us's conference presentation, Sep 16, 2014

  1. Slide 1: InvestTN Equity Conference September 2014 Delek US Holdings

    InvestTN Equity Conference September 2014 Delek US Holdings

  2. 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

  3. Slide 3: An Integrated Energy Company

    • Founded 2001; Headquartered in Brentwood, TN • 4,600 employees with 2,700 in Tennessee • 2013 Revenue: $8.7 billion; EBITDA $327.5 million Symbol: NYSE: DK Current Price: $33.10/unit (1) Market Capitalization: $2.0 billion (1) 3 Refining Logistics (2) Retail 140,000 BPD in total El Dorado, AR 80

  4. Slide 4: Integrated Business Model

    4 Integrated Business Model Flexible Crude Sourcing and Market Driven Production Enhance Performance Flexible Crude Oil Sourcing •Pipeline access to Midland; Gulf Coast; Cushing • Increasing Gathering – Texas and Arkansas •Access to Canadian crude Crude Logistics •Crude oil pipelines supporting refi

  5. Slide 5: Delek US Holdings Overview

    Delek US Holdings Overview 5 (1) Rail supplied light crude capability consists of 25,000 bpd of light crude or 12,000 bpd heavy crude offloading that is available at a company owned facility at the El Dorado refinery. In addition, 20,000 bpd light crude capability is currently available via a third

  6. Slide 6: Refining Segment Operational Update

    Refining Segment Operational Update

  7. Slide 7: 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

  8. Slide 8: Access to Midland Crudes Benefits Margins

    ($14.00) ($12.00) ($10.00) ($8.00) ($6.00) ($4.00) ($2.00) $0.00 WTI Midland vs. WTI Cushing Crude Pricing Access to Midland Crudes Benefits Margins 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 ($ per barrel) 1Q14 87,000 bpd of Midland crude in DK system 8 2Q14 Source: Argus – as of S

  9. Slide 9: Tyler Refinery Overview

    Tyler Refinery Overview 9  Inland PADD III light product refinery located in East Texas  Planning underway for 1Q15 turnaround and expansion  Serves a niche market in the Tyler, TX area; priced above Gulf Coast markets  Currently 60,000 bpd, 9.5 complexity; demonstrated 64,000 bpd ability; incre

  10. 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  80,000 bpd, 9.0 complexity (1Q14 configured to run light and medium sour crude)  Improved flexibility during 1Q14 turnaround; FCC

  11. Slide 11: Tyler Refinery Expansion Overview

    Tyler Refinery Expansion Overview 11 Production Increase  10,000 bpd crude throughput increase  Light product throughput increased by 9,300 bpd  Estimated cost $70 million  Expected completion in 1Q15 Crude Supply  Source incremental crude from Cushing into Longview.  Additional options to acc

  12. Slide 12: Tyler Refinery Expansion – Production Increase

    Tyler Refinery Expansion – Production Increase  Increase nameplate capacity to 75,000 bpd – Crude Distillation, DHT, NHT units expanded – March 2015 estimated completion 12 62.5 7.0 25.0 22.0 75.0 7.0 36.0 28.0 Crude Coker DHT NHT Capacity Improvements, 000 bpd Current Capacity Expansion Capacity 

  13. Slide 13: Tyler Refinery Expansion Economics

    Tyler Refinery Expansion Economics  Incremental 10,000 bpd of crude throughput capacity – Estimated capital cost approximately $70 million; approx. $53 million spent in 2014 – March 2015 estimated completion – Primary work done during 1Q15 scheduled turnaround  Expected product yield +10.1 kbpd –

  14. Slide 14: Logistics Operational Update

    Logistics Operational Update

  15. Slide 15: Strategic Partner in Delek Logistics Partners, LP

    Strategic Partner in Delek Logistics Partners, LP (NYSE: DKL) 15 Delek Logistics Partners , LP (NYSE:DKL) began operating on Nov. 7, 2012 and 100% of its performance is reported as a segment of Delek US beginning 4Q12. Delek US and its affiliates own approximately 62%, including the 2.0% general par

  16. Slide 16: DKL: Growth Strategy

    16 DKL’s stated growth strategy targets annual distribution increase of 15% in coming years DKL: Growth Strategy (1) 1) Information provided in Delek Logistics Partners, LP (NYSE: DKL) investor presentation available at www.deleklogistics.com. 2Q2014 EBITDA based on pro forma LTM information. 2Q14 p

  17. Slide 17: DKL: Increased Distribution with Conservative Coverage

    DKL: Increased Distribution with Conservative Coverage 17 (1) MQD = minimum quarterly distribution set pursuant to the Partnership Agreement. (2) Distribution coverage based on distributable cash flow divided by distribution amount in each period as presented by Delek Logistics Partners’ slide prese

  18. Slide 18: DKL: Potential EBITDA Growth

    DKL: Potential EBITDA Growth (1) 18 (1) Information provided in Delek Logistics Partners, LP (NYSE: DKL) investor presentation available at www.deleklogistics.com. 2Q2014 EBITDA based on pro forma LTM information provided in that presentation. Pro forma 2Q2014 includes amounts for drop down contribu

  19. Slide 19: DKL: Strong Unit Performance & Value Creation

    50% 75% 100% 125% 150% 175% 200% 11/1/2012 3/16/2013 7/29/2013 12/11/2013 4/25/2014 9/7/2014 DKL Alerian MLP Index 19 (1) Current yield reflects annualized distribution rate of $1.90 per unit and equity value based on market capitalization as of September 12, 2014. (2) Per company filings. (3) Appro

  20. Slide 20: Retail Operational Update

    Retail Operational Update

  21. Slide 21: Retail Locations Creates Synergies for Product Marketing

    990 1,039 1,082 1,112 291 303 2010 2011 2012 2013 2Q13 2Q14 $897 $951 $1,011 $1,037 $270 $287 2010 2011 2012 2013 2Q13 2Q14 Retail Locations Creates Synergies for Product Marketing 21 Expanding Market Footprint in Markets Capable of Being Supplied by El Dorado Fuel Gallons Sold Per Store (000’s) Mer

  22. Slide 22: MAPCO Initiatives

    MAPCO Initiatives 22 Private Label  Growing private label product marketing  Increasing choices and value for customer  Portfolio includes over 400 products Loyalty Program  Over 1 million registered users(1)  Saves 3 cents per gallon  Targeted promotions improves value for customer and increa

  23. Slide 23: Focused on Organic Growth

    Focused on Organic Growth 23  Large Format Stores are focal point  Approximately 4,800 square feet  Offer customers wider product selection  Prepared food service offering increases traffic  Avg. 3+ million gallons and $2+m inside sales once market penetrated  3 year growth trajectory for mark

  24. Slide 24: Financial Update

    Financial Update

  25. Slide 25: Financial Highlights

    Financial Highlights $164 $151 $130 $445 $659 $448 $427 2008 2009 2010 2011 2012 2013 LTM Jun. 2014  At June 30, 2014  Cash of $560.1 million; Debt of $616.2 million  Includes $239.0 million of debt and $2.4 million of cash at Delek Logistics (DKL)  Excluding DKL, Delek US’ net cash position was

  26. Slide 26: Going Forward

    Going Forward

  27. Slide 27: Market Fundamentals

    $19.83 $12.30 $13.11 $15.01 $17.09 $13.45 $16.27 $15.36 2Q13 3Q13 4Q13 1Q14 2Q14 Jul-14 Aug-14 Sep-14 Market Fundamentals(1) 27  Crude price beginning to decline through August  Midland discount to Cushing widening (1) Source: Platts and Argus; 2014 data is through September 12, 2014. 5-3-2 crack

  28. Slide 28: Delek US Focused on Building an Integrated Business Model

    Delek US Focused on Building an Integrated Business Model 28 A core part of Delek US' strategy is to grow via prudent strategic transactions since 2001 (1) Includes logistic assets in purchase price. Purchase price includes working capital for refineries. 2006 Abilene & San Angelo terminals $55.1 mm

  29. Slide 29: Questions and Answers

    29 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

  30. Slide 30: Appendix Additional Data

    Appendix Additional Data

  31. Slide 31: Historical and Projected Capital Spending

    $42.3 $36.0 $65.9 $144.3 $225.5 $0.9 $10.5 $5.1 $13.1 $14.4 $36.5 $29.1 $37.9 $30.5 $0.1 $7.6 $26.5 $35.0 $21.2 2010A 2011A 2012A 2013A 2014E * Refining Logistics (Marketing) Retail Other Historical and Projected Capital Spending 31 $56.8mm $81.0mm $132.0mm $222.3mm Source: Company filings. $290.3mm

  32. Slide 32: Non-GAAP Reconciliation

    Non-GAAP Reconciliation 32 Source: Company filings. ($ in millions) 2012 2013 Net cash provided by operating activities $462.9 $102.5 Purchase of property, plant and equipment 132.0 222.3 Free cash flow $330.9 ($119.8) Year Ended 12/31 Delek US Free Cash Flow Reconciliation ($ in millions) 2008 2009

  33. Slide 33: 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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