Delek Us Holdings, Inc. · NYSE:DK
Delek Us — Investor Presentation (September 2023)
19 slides from Delek Us's investor presentation, Sep 5, 2023
Slide 1: Investor Presentation September 2023
Investor Presentation September 2023
Slide 2: Forward Looking Statement
Delek Tech 2 Forward Looking Statement 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”,
Slide 3: Delek US Holdings Unlocking Value for Shareholders and Unitholders
Delek Tech 3 Delek US Holdings Unlocking Value for Shareholders and Unitholders Financial Strength and Flexibility Integrated Downstream Energy Company (1) IPREO as of 2/24/2023 - 10-K (2) Multiples based on sell-side research [Raymond James, Piper Sandler, ScotiaBank and Wells Fargo] Delek US Holdi
Slide 4: Integrated Company with Asset Diversity and Scale
Delek Tech 4 Integrated Company with Asset Diversity and Scale Source 207,000 bpd from Permian Basin • Growing gathering system • Wink to Webster JV Crude Oil Pipeline RIO Refinery Crude Throughput Capacity (BPD) Nelson Complexity Tyler 75,000 8.7 El Dorado 80,000 10.2 Big Spring 73,000 10.5 Krotz S
Slide 5: Environmental, Social, and Governance (ESG)
Environmental, Social, and Governance (ESG) Third Annual Sustainability Report to be Published December 2023 5 (1) THE USE BY THE DELEK COMPANIES OF ANY MSCI ESG RESEARCH LLC OR ITS AFFILIATES (“MSCI”) DATA, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUT
Slide 6: US Adjusted EBITDA - 1H 2023 vs 1H 2022
Delek US Adjusted EBITDA - 1H 2023 vs 1H 2022 6 2Q23 *YTD Adjusted EBITDA Results by Segment Refining Logistics Retail Corporate $ 431.3 $ 182.3 $ 21.4 $ (91.0) $546.0 $(71.0) $49.1 $(1.4) $21.3 $544.0 YTD* as of June, 30 2022 Refining Logistics Retail Corporate YTD* as of June, 30 2023 *YTD = Year-
Slide 7: Refining
Delek Tech 7 Refining DK Refining System Tyler El Dorado Big Spring Krotz Springs PADD 3 Refining System with Crude Slate Optionality Crude Slate % *as of June, 30 2023 73.2% 4.3% 4.2% 18.3% WTI Crude Oil Gulf Coast Sweet Crude Local Arkansas Crude Oil Other 78.7% 21.3% WTI Crude Oil East Texas Crud
Slide 8: Logistics
8 Logistics Primarily through 78.7% owned MLP, Delek Logistics Partners, LP (DKL) Expansive gathering business ~1,970 miles of pipeline ~10.8MMB active shell capacity ~200 MBPD water disposal ~88 MMCFD gas processing capacity 10 light product distribution terminals Diversified portfolio of assets in
Slide 9: Retail
9 Retail ~80% integration with existing downstream operations offering synergies and competitive advantage Operate 247 C-stores in West Texas and New Mexico Rebranding 7-Eleven stores to DK in 2023 Implement interior rebranding and re-imaging
Slide 10: Capital Expenditures
Delek Tech 10 Capital Expenditures $'s in Millions 2023 Forecast 2023 YTD 2Q23 Actual Refining $ 202 $ 177 $ 30 Logistics 81 55 19 Retail 31 8 5 Corporate/Other 36 13 7 Delek Total $ 350 $ 253 $ 61 Capital Expenditure Allocation 2% 76% 22% 10.0% 67.0% 22.0% Regulatory Sustaining Growth 2023 YTD 2023
Slide 11: Long-term Capital Allocation Framework
Delek Tech 11 Long-term Capital Allocation Framework Priorities Discretionary Non-Discretionary Sustaining Capital Expense - Approximately $100-$125 million sustaining capex/yr - Between $50-$100 million per turnaround - Critical for safe and reliable operations Acquisitions Cash Returns to Sharehol
Slide 12: Third Quarter 2023 Guidance
Delek Tech 12 Third Quarter 2023 Guidance $'s in Millions Low High Operating Expenses $210 $220 General and Administrative Expenses $65 $70 Depreciation and Amortization $85 $90 Net Interest Expense $80 $85 Barrels per day (bpd) Low High Total Crude Throughput 283,000 301,000 Total Throughput 292,00
Slide 13: Second Quarter 2023 Consolidated Cash Flow
*includes cash and cash equivalents Second Quarter 2023 Consolidated Cash Flow - ($MM) 13 $865.0 $95.1 $(57.8) $(80.7) $821.6 3/31/2023 Cash Balance* Operating Activities Investing Activities Financing Activities 6/30/2023 Cash Balance*
Slide 14: Net Debt
Net Debt $'s in Millions June 30, 2023 March 30, 2023 December 31, 2022 Consolidated long-term debt - current portion $ 50 $ 50 $ 75 Consolidated long-term debt - non-current portion $ 2,761 2,725 2,979 Consolidated total long-term debt $ 2,811 2,775 3,054 Less: Cash and cash equivalents $ 822 865 8
Slide 15: 2-1-1 Crack Spread - Benchmark Update
2-1-1 Crack Spread - Benchmark Update 15 As Previously Reported Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021 2-1-1: $19.11 $21.53 $32.47 $15.78 $11.10 $11.11 $8.68 $7.09 KSR Capture Rate(1) 70% 66% 108% 37% 77% 65% 31% 88% Updated Reporting Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021
Slide 16: OPEX and G&A Reclassification Adjustments
OPEX and G&A Reclassification Adjustments 16 In the first quarter of 2023, we reassessed the classification of certain expenses and made certain reclassification adjustments to better represent the nature of those expenses.
Slide 17: OPEX per Barrel by Refinery - Updated for Reclassification
17 OPEX per Barrel by Refinery - Updated for Reclassification In the first quarter of 2023, we reassessed the classification of certain expenses and made certain reclassification adjustments to better represent the nature of those expenses. As Reported Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021
Slide 18: Reconciliation of Net Income (Loss) Attributable to Delek to Adjusted EBITDA
Delek Tech 18 Reconciliation of Net Income (Loss) Attributable to Delek to Adjusted EBITDA Three Months Ended June 30, Six Months Ended June 30, $ in millions (unaudited) 2023 2022 2023 2022 Reported net (loss) income attributable to Delek $ (8.3) $ 361.8 $ 56.0 $ 368.4 Add: Interest expense, net 80
Slide 19: Reconciliation of Segment EBITDA Attributable to Delek to Adjusted Segment EBITDA
Delek Tech 19 Reconciliation of Segment EBITDA Attributable to Delek to Adjusted Segment EBITDA Six Months Ended June 30, 2023 $ in millions (unaudited) Refining Logistics Retail Corporate, Other and Eliminations Consolidated Segment EBITDA Attributable to Delek $ 302.6 $ 182.3 $ 21.4 $ (108.6) $ 39
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