Delek Us Holdings, Inc. · NYSE:DK

Delek Us — Investor Presentation (November 2017)

15 slides from Delek Us's investor presentation, Nov 20, 2017

  1. Slide 1: Delek CEO Interview: Outlook for Brent-WTI and a Buyer's View on the Permian

    November 20, 2017 Delek US Holdings, Inc. Delek CEO Interview: Outlook for Brent-WTI and a Buyer’s View on the Permian Hosted by Neil Mehta with Goldman Sachs

  2. Slide 2: Disclaimers

    Disclaimers 2 Forward Looking Statements: Delek US Holdings, Inc. (“Delek US”) and Delek Logistics Partners, LP (“Delek Logistics”; collectively with Delek US, defined as “we”, “our”) and Alon USA Partners, LP (“ALDW”) are traded on the New York Stock Exchange in the United States under the symbols

  3. Slide 3: How did we get here? Cushing-Brent Crude Oil Price Differential Trends Improving

    How did we get here? Cushing-Brent Crude Oil Price Differential Trends Improving 3  WTI-Cushing versus Brent began to widen in August 2017  Global market improvement - OPEC cuts  Current WTI price supports production in U.S.  Increased light production from Shale plays Source: Bloomberg 11/17/17

  4. Slide 4: Crude Oil Location Differentials: Light Sweet

    Crude Oil Location Differentials: Light Sweet 4  Light Sweet crude oil differentials  Pipelines from Midland are full → Differentials are dictated by pipeline utilization and walk-up shipper rates  Short term considerations:  Diamond Pipeline – to deliver 200 MBPD domestic sweet from Cushing to

  5. Slide 5: Permian Basin Outlook

    Permian Basin Outlook 5  Outlook assumes production growth in 2017 of 600 kbpd  Permian pipeline take-away utilization should remain >90% during 2018  Plains Sunrise Expansion is the only 2019 project currently committed out of announced pipelines Source: Delek US, company reports.

  6. Slide 6: There is also a Crude Oil Quality Aspect in the Differentials

    There is also a Crude Oil Quality Aspect in the Differentials 6 1) Source: EIA  Permian production increasing, but lighter in the west; better quality to the east  Midland API: 37-41  Delaware API: 45-49 (too light)  Cushing API: 41-45 (dumbbell crude oil blends)  Quality Value:  Midland Basin

  7. Slide 7: Crude Oil Differentials: Light/Heavy

    Crude Oil Differentials: Light/Heavy 7  Light/Heavy crude oil differential has narrowed during 2017  OPEC cuts have primarily been medium sour barrels  Heavy sour production declines in Mexico and Venezuela  Most US Gulf Coast refineries are configured to run medium/heavy  Majority of barrels f

  8. Slide 8: Refinery Configuration can Limit Crude Oil Slate Flexibility

    Gulf Coast primarily configured to heavy crude oil limiting ability to process lighter barrels Refinery Configuration can Limit Crude Oil Slate Flexibility 8  Heavy crude oil refineries cannot easily digest the increased diesel and lighter content of light crudes like WTI  Equipment limits are rea

  9. Slide 9: Factors Driving Brent-WTI Spread May be Sustainable

    Factors Driving Brent-WTI Spread May be Sustainable 9  Location differential  Increased light production in U.S.  Pipeline utilization increasing which effects transport tariffs and ability to clear the market  Quality Differential  Neat Midland barrel preferred compared to a blended barrel by

  10. Slide 10: How is this Market Environment for Delek US?

    How is this Market Environment for Delek US?

  11. Slide 11: Crack Spread Cycle Turning Up

    Crack Spread Cycle Turning Up Crack spread at highest since 2015 and expected to continue upward trend; Environment Looks Good 11 -$30 -$20 -$10 $0 $10 $20 $30 $40 $50 1 0 -J a n -1 0 1 0 -Ma r- 1 0 1 0 -Ma y -1 0 1 0 -J u l- 1 0 1 0 -S e p -1 0 1 0 -N o v -1 0 1 0 -J a n -1 1 1 0 -Ma r- 1 1 1 0 -Ma

  12. Slide 12: By 2018 WTI-Linked Barrels Should Account for 90% of the Crude Oil Slate

    By 2018 WTI-linked barrels should account for 90% of the crude oil slate; Benefitting from Current Differentials Delek US’ WTI Linked Crude Oil Supply has Continued to Grow 12 18,250 20,450 34,485 41,947 43,875 46,887 48,703 56,575 99,304 6,051 39,069 0 20,000 40,000 60,000 80,000 100,000 120,000 20

  13. Slide 13: Integrated Company with Asset Diversity and Scale

    Integrated Company with Asset Diversity and Scale WTI-Linked crude oil supply; Focused on local U.S. crudes and flexibility to source low cost barrel 13 Big Spring 73 kbpd 100% WTI linked El Dorado 80 kbpd 100% WTI linked Tyler 75 kbpd 100% WTI linked Krotz Springs 74 kbpd 46% WTI linked DK strategi

  14. Slide 14: Delek US Initiatives Underway Expected to Create Sustainable Value

    Delek US Initiatives Underway Expected to Create Sustainable Value Current Valuation Below Peer EV to EBITDA 14 (1) Based on NASDAQ IR Insights/Factset as of 11/17/17.  Strong balance sheet with $832 million of cash supports company initiatives  Backlog of drop down inventory of approximately $78

  15. Slide 15: Investor Relations Contact

    Investor Relations Contact: Kevin Kremke Keith Johnson Executive Vice President, CFO Vice President of Investor Relations 615-224-1323 615-435-1366

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