Delek Us Holdings, Inc. · NYSE:DK
Delek Us — Q4 2024 Earnings Presentation
34 slides from Delek Us's earnings presentation, Feb 25, 2025
Slide 1: Fourth Quarter 2024 Earnings Conference Call
Exhibit 99.2 Fourth Quarter 2024 Earnings Conference Call February 25, 2025
Slide 2: Overview
Overview • Operations: Another Safe and Reliable Quarter ◦ Successfully completed KSR Turnaround in 4Q’24 • EOP & SOTP efforts ◦ Further progress towards Midstream deconsolidation ◦ Working on additional deconsolidation options ◦ Original cost reductions (ZBB) exceeding $100mm target ◦ On track to a
Slide 3: Disclaimers
Disclaimers 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 slides
Slide 4: SOTP Update
SOTP Update ***Placeholder image*** 4 *Ownership % represents a change from 12/31/2023
Slide 5: SOTP: Midstream Value Creation (Higher Distributions to DK)
SOTP: Midstream Value Creation (Higher Distributions to DK) 1Q24: 3Q24: 3Q24: 1Q25: Equity Offering: W2W Drop-Down Acquired H2O Acquired Gravity Raised $132mm Amend and Extend Midstream Water Midstream (1) Note: $ in millions, unless stated otherwise 5 (1) Reflects the issuance of 2,175,209 common l
Slide 6: SOTP: Midstream Value Creation (Economic Separation)
SOTP: Midstream Value Creation (Economic Separation) 1Q24: 3Q24: 3Q24: 1Q25: Equity Offering: W2W Drop-Down Acquired H2O Acquired Gravity Raised $132mm Amend and Extend Midstream Water Midstream Note: $ in millions, unless stated otherwise (1) Midpoint of 2025 Guidance 6
Slide 7: SOTP: Midstream Value Creation
SOTP: Midstream Value Creation 7
Slide 8: Focus on Free Cash Flow: Enterprise Optimization Plan
Focus on Free Cash Flow: Enterprise Optimization Plan EOP initiatives are focused on improving DK’s financial health & ability to generate free cash flow Expect to be at the high end of original $80-120mm cash flow improvement target in 2H’25 EOP Action Items Efficient (Costs) Stronger (Margins) •
Slide 9: Tracking EOP Progress
Tracking EOP Progress • EOP lowers overall company breakeven by increasing free cash flow generation at constant margins • Confident in reaching “upper” end of the guidance range of improvements • These improvements to incrementally reflect in results & achieve run-rate expectations in 2H’25 Stronge
Slide 10: El Dorado System Margin Improvement
El Dorado System Margin Improvement EDR Margin Improvement Plan - $50mm • Enhanced logistics to increase market access • Improved product slate & higher liquid volume yields • Cost improvements Note: $ in millions, unless stated otherwise 10
Slide 11: Big Spring Operational Improvements
Big Spring Operational Improvements 2Q 2023 - 4Q 2024 11
Slide 12: Focus on Free Cash Flow: Lowered 2025 Capex
Focus on Free Cash Flow: Lowered 2025 Capex Reduction in capex, along with EOP efforts should enhance cash flow generation Note: $ in millions, unless stated otherwise 12
Slide 13: DK Illustrative Valuation (based on mid-cycle EBITDA & FCF)
DK Illustrative Valuation (based on mid-cycle EBITDA & FCF) Note: $ in millions, unless stated otherwise (1) FactSet data as of 2/21/25 13 (2) DK's interest in DKL as of 12/31/24
Slide 14: Total Refining Throughput
Total Refining Throughput 4Q 2024 vs 3Q 2024 MBPD 4Q24 Production Margin per bbl. Tyler El Dorado Big Spring Krotz Springs $6.66 $0.56 $5.04 $2.71 14 *Throughputs are rounded
Slide 15: Financial Summary
Financial Summary 4th Quarter 2024 Financial Highlights $ in millions (except per share) As Reported (1) Adjusted Net Loss $(413.8) $(160.5) Net Loss Per Share $(6.55) $(2.54) EBITDA $(300.7) $(23.2) Cash Flow From Operations $(163.5) $(92.4) 15 (1) Includes a $212.2 million goodwill impairment char
Slide 16: Adjusted EBITDA
Adjusted EBITDA 4Q 2024 vs 3Q 2024 ($MM) 4Q24 Adjusted EBITDA Results Refining Logistics Corporate Discontinued Operations (Retail) $(69.6) $107.2 $(60.3) $(0.5) 16 *$MM's are rounded
Slide 17: Consolidated Cash Flow
Consolidated Cash Flow 4Q 2024 vs 3Q 2024 ($MM) (1) *includes cash and cash equivalents Note: Includes discontinued operations 17 (1) Includes impact from the inventory intermediation agreement.
Slide 18: Capital Program
Capital Program 2024 YTD Actual $'s in Millions 2024 YTD (1) (2) 2024 Actual ($ millions) Total Refining $ 266 Logistics (Delek Logistics Partners) 45 Corporate & Other 27 Capital expenditures $ 338 (1) Excludes a $10.0 million land purchase in connection with a settlement that was in litigation rel
Slide 19: Net Debt
Net Debt 2024 vs 2023 $'s in Millions 12/31/2024 12/31/2023 Consolidated long-term debt - current portion $ 9.5 $ 44.5 DK long-term debt - non-current portion 880.3 881.5 DKL long-term debt - non-current portion 1,875.4 1,673.8 Consolidated total long-term debt $ 2,765.2 $ 2,599.8 Less: Cash and cas
Slide 20: Guidance
Guidance 1st Quarter 2025 $'s in Millions Low High Operating Expenses $220 $235 General and Administrative Expenses $55 $60 Depreciation and Amortization $100 $105 Net Interest Expense $78 $88 Barrels per day (bpd) Low High Total Crude Throughput 255,000 269,000 Total Throughput 278,000 292,000 Tota
Slide 21: Supplemental Slides
21 Supplemental Slides " fusy
Slide 22: Total Refining Throughput
Total Refining Throughput 4Q 2024 vs 4Q 2023 MBPD 4Q24 Production Margin per bbl. Tyler El Dorado Big Spring Krotz Springs $6.66 $0.56 $5.04 $2.71 22 *Throughputs are rounded
Slide 23: Adjusted EBITDA
Adjusted EBITDA 4Q 2024 vs 4Q 2023 ($MM) 4Q24 Adjusted EBITDA Results Refining Logistics Corporate Discontinued Operations (Retail) $(69.6) $107.2 $(60.3) $(0.5) 23 *$MM's are rounded
Slide 24: Adjusted EBITDA
Adjusted EBITDA YTD 2024 vs 2023 ($MM) YTD 2024 Adjusted EBITDA Results Refining Logistics Corporate Discontinued Operations (Retail) $92.8 $413.7 $(220.2) $27.4 24
Slide 25: YTD Consolidated Cash Flow
YTD Consolidated Cash Flow ($MM) (1) *includes cash and cash equivalents Note: Includes discontinued operations 25 (1) Includes impact from the inventory intermediation agreement.
Slide 26: Reconciliation of U.S. GAAP Net (Loss) Income to Adjusted Net (Loss) Income
Reconciliation of U.S. GAAP Net (Loss) Income to Adjusted Net (Loss) Income Three Months Ended December 31, Year Ended December 31, $ in millions (unaudited) 2024 2023 2024 2023 Reported net (loss) income attributable to Delek US $ (413.8) $ (164.9) $ (560.4) $ 19.8 Adjusting items (1) Inventory LCM
Slide 27: Reconciliation of U.S. GAAP Net (Loss) Income per share to Adjusted
Reconciliation of U.S. GAAP Net (Loss) Income per share to Adjusted Net (Loss) Income Per Share Three Months Ended December 31, Year Ended December 31, $ per share (unaudited) 2024 2023 2024 2023 Reported diluted (loss) income per share $ (6.55) $ (2.57) $ (8.77) $ 0.30 Adjusting items, after tax (p
Slide 28: Reconciliation of Net (Loss) Income attributable to Delek US to Adjusted EBITDA
Reconciliation of Net (Loss) Income attributable to Delek US to Adjusted EBITDA Three Months Ended Three Months Ended December 31, Year Ended December 31, September 30, $ in millions (unaudited) 2024 2023 2024 2023 2024 Reported net (loss) income attributable to Delek US $ (413.8) $ (164.9) $ (560.4
Slide 29: Reconciliation of Segment EBITDA to Adjusted Segment EBITDA
Reconciliation of Segment EBITDA Attributable to Delek US to Adjusted Segment EBITDA Three Months Ended December 31, 2024 Corporate, Other $ in millions (unaudited) Refining Logistics and Eliminations Consolidated Segment EBITDA Attributable to Delek US $ (293.2) $ 73.8 $ (67.7) $ (287.1) Adjusting
Slide 30: Reconciliation of Segment EBITDA to Adjusted Segment EBITDA
Reconciliation of Segment EBITDA Attributable to Delek US to Adjusted Segment EBITDA Year Ended December 31, 2024 Corporate, Other $ in millions (unaudited) Refining (3) Logistics and Eliminations (3) Consolidated Segment EBITDA Attributable to Delek US $ (158.0) $ 342.7 $ (203.2) $ (18.5) Adjusting
Slide 31: Reconciliation of Segment EBITDA to Adjusted Segment EBITDA
Reconciliation of Segment EBITDA Attributable to Delek US to Adjusted Segment EBITDA Three Months Ended September 30, 2024 Corporate, Other $ in millions (unaudited) Refining Logistics and Eliminations Consolidated Segment EBITDA Attributable to Delek US $ 12.8 $ 68.6 $ (79.6) $ 1.8 Adjusting items
Slide 32: Reconciliation of Income From Continuing Operations to Adjusted EBITDA
Reconciliation of (Loss) Income From Continuing Operations, Net of Tax to Adjusted EBITDA from Continuing Operations Reconciliation of (Loss) Income From Continuing Operations, Net of Tax to Adjusted EBITDA from Continuing Operations Three Months Ended Three Months Ended December 31, Year Ended Dece
Slide 33: Reconciliation of Income From Discontinued Operations to Adjusted EBITDA
Reconciliation of (Loss) Income From Discontinued Operations, Net of Tax to Adjusted EBITDA from Discontinued Operations Reconciliation of Income From Discontinued Operations, Net of Tax to Adjusted EBITDA from Discontinued Operations Three Months Ended Three Months Ended December 31, Year Ended Dec
Slide 34: Reconciliation of Cash Flow from Operations to Adjusted Cash Flow
Reconciliation of Cash Flow from Operations to Adjusted Cash Flow from Operations Reconciliation of Cash Flow from Operations to Adjusted Cash Flow from Operations Three Months Ended December 31, $ in millions (unaudited) 2024 Reported cash flow from operations $ (163.5) Less: Working capital impact