Delek Logistics Partners, L.p. · NYSE:DKL
Delek Logistics Partners, L.p — Investor Presentation (March 2021)
30 slides from Delek Logistics Partners, L.p's investor presentation, Mar 10, 2021
Slide 1: Investor Presentation Delek Logistics Partners March 2021
Investor Presentation Delek Logistics Partners March 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
• Current Distribution: $0.91/LP unit qtr.; $3.64/LP unit annualized (1); ~10% current yield (2) • On-track to deliver 5% distribution growth in 2021 over 2020 levels • MVC’s underpin ~64% of gross margins providing stability Overview (NYSE: DKL) • Net Income of $40.7 million, Net cash from operatin
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: DKL Relative to Peer Group
6 DKL Relative to Peer Group Where It is and Where It is Going Note: Peers include EPD, HEP, MMP, MPLX, PAA, PBFX, PSXP (1) Updated from Factset as of March 4, 2021 2.63x 2.57x 2.10x 1.70x 1.48x 1.44x 1.41x 1.10x Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 DKL Peer 7 2.82x 2.98x 3.59x 3.72x 3.75x 3.91
Slide 7: Delek Logistics Partners, LP Overview
Delek Logistics Partners, LP Overview
Slide 8: Logistics Assets Positioned to Benefit from Permian Basin Activity
8 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 9: Delek Permian Gathering East System
Delek Permian Gathering East System 9 DPG East SystemEquipment Lease Automatic Custody Transfer Units (LACTS) 45 Installations Pipeline 60 miles Tanks (bbl) 2 (50M, 300M)
Slide 10: Delek Permian Gathering West System
Delek Permian Gathering West System 10 DPG West System Equipment Lease Automatic Custody Transfer Units (LACTS) 6 Installations Pipeline 70 miles Tanks (bbl) 1 (50M)
Slide 11: Multi-Year Contracts with Firm Commitments / MVCs
11 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 12: Financial Flexibility and Growing Distributable Cash Flow
12 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 13: Distribution Coverage by Quarter
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 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q1
Slide 14: DKL Asset & Joint Venture Detail
DKL Asset & Joint Venture Detail
Slide 15: Joint Venture Pipeline Projects
15 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 16: Red River Pipeline Expansion and Crude Oil Optionality
16 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 17: Midstream: Big Spring Gathering System
17 1) Please see page 27 for a reconciliation of forecasted incremental annualized net income to forecasted EBITDA for the Big Spring Gathering System. Midstream: Big Spring Gathering System Gathering Helps Control Crude Oil Quality and Cost into Refineries Big Spring Gathering System Approximatel
Slide 18: Strong Adjusted EBITDA Growth Profile from Midstream Initiatives
$256 $30 - $34 3 M o n th s E n d in g 1 2 /3 1 /2 0 2 0 A n n u a lize d K ro tz Sp rin g s M id stre a m A sse ts O th e r M id stre a m g ro w th p ro je cts T o ta l A n n u a lize d A d j. E B IT D A P o te n tia l Krotz Springs Midstream Assets •$30 to $34 million expected EBITDA / year(2) Mid
Slide 19: Several Visible Pathways for Growth
19 Several Visible Pathways for Growth Focused around developing Permian platform; Growing logistics asset base at sponsor Balance Sheet Supportive • $103.4 million of availability at December 31, 2020 on $850 million revolving credit facility • Leverage ratio was 3.8x at end of 4Q20 • Focus on orga
Slide 20: 2021 Valuation Below Peer EV-to-EBITDA
20 2021 Valuation Below Peer EV-to-EBITDA DKL’s financial flexibility and growth initiatives of strong sponsor DK positions it for growth (1) Based on Factset as of March 4, 2021. 0.0x 2.0x 4.0x 6.0x 8.0x 10.0x 12.0x DKL HEP MPLX PBFX PSXP PAA NS MMP ET EPD EV/EBITDA 2021 2022 21 Avg 22 Avg
Slide 21: Investment Highlights
Majority of assets support Delek US’ strategically located inland refining system Inflation-indexed fees for most contracts Majority of all margin generated by long term, fee-based contracts with volume minimums Agreements with Delek US related to capex/opex reimbursement Balance sheet positioned to
Slide 22: Appendix
Appendix oO
Slide 23: DKL: Reconciliation of Distributable Cash Flow
23 1) Distribution based on actual amounts distributed during the periods; does not include LTIP accrual. Coverage is defined as cash available for distribution divided by total distribution. 2) Results in 2013, 2014 and 2015 are as reported excluding predecessor costs related to the dropdown of the
Slide 24: DKL: Income Statement and Non-GAAP EBITDA Reconciliation
24 1) Results in 2013 and 2014 are as reported excluding predecessor costs related to the dropdown of the tank farms and product terminals at both Tyler and El Dorado during the respective periods. 2) Results for 1Q15 are as reported excluding predecessor costs related to the 1Q15 dropdowns. Note: M
Slide 25: Non-GAAP Reconciliation of Increased Paline Pipeline Tariff EBITDA
25 Non-GAAP Reconciliation of Increased Paline Pipeline Tariff EBITDA ($ in millions) Annual Monthly Forecasted Incremental Net Income 10.8$ 0.9$ Add Forecasted Incremental Amounts for: Interest Expense, net -$ -$ Depreciation and amortization -$ -$ Forecasted Incremental EBITDA 10.8$ 0.9$ Reconcili
Slide 26: Non-GAAP Reconciliation of Red River Joint Venture Adjusted EBITDA
26 Non-GAAP Reconciliation of Red River Joint Venture Adjusted EBITDA Based on projected potential future performance from the Red River joint venture. Amounts of adjusted EBITDA and net income will vary. Actual amounts will be based on market conditions and pipeline operations. ($ in millions) Fore
Slide 27: Non-GAAP Reconciliations of Big Spring Gathering System Forecasted EBITDA
27 Non-GAAP Reconciliations of Big Spring Gathering System Forecasted EBITDA
Slide 28: Non-GAAP Reconciliations of Trucking Forecasted EBITDA
28 Non-GAAP Reconciliations of Trucking Forecasted EBITDA
Slide 29: Non-GAAP Reconciliation of Krotz Springs Potential Dropdown EBITDA
29 Based on projected range of potential future logistics assets that could be dropped to Delek Logistics from Delek US in the future. Amounts of EBITDA, net income and timing will vary, which will affect the potential future EBITDA and associated deprecation and interest at DKL. Actual amounts will
Slide 30: Investor Relations Contacts
Investor Relations Contacts: Blake Fernandez, SVP IR/Market Intelligence 615-224-1312
Delek Logistics Partners — Investor Presentation (March 2021) on 6ix