Delek Logistics Partners, L.p. · NYSE:DKL
Delek Logistics Partners, L.p — Investor Presentation (March 2015)
30 slides from Delek Logistics Partners, L.p's investor presentation, Mar 3, 2015
Slide 1: Delek Logistics Partners, LP Investor Presentation March 2015
Delek Logistics Partners, LP Investor Presentation March 2015
Slide 2: Forward-Looking Statements
Forward-Looking Statements 2 These slides and any accompanying oral and written presentations contain forward-looking statements by Delek Logistics Partners, LP (defined as “we”, “our”) that are based upon our current expectations and involve a number of risks and uncertainties. Statements concernin
Slide 3: Investment Highlights
Investment Highlights (1) Based on price per common limited unit as of trading on February 26, 2015. (2) Annualized distribution declared as of January 27, 2015. (3) For reconciliation please refer to pages 27 and 28. (4) Approximately 4.2% of the ownership interest in the general partner is owned b
Slide 4: Delek US – A Growth Oriented, Financially Strong Sponsor
Delek US – A Growth Oriented, Financially Strong Sponsor • 140,000 bpd of refining capacity in Texas and Arkansas • Access to crude / product terminals, pipeline and storage assets • 365 convenience stores(1) Operational Strength (1) As of December 31, 2014 financial statements as filed in the Delek
Slide 5: Delek Logistics Partners, LP Overview
Delek Logistics Partners, LP Overview
Slide 6: Stable Asset Base Positioned for Growth
Stable Asset Base Positioned for Growth 6 ~400 miles of crude transportation pipelines, includes the 195 mile crude oil pipeline from Longview to Nederland, TX ~ 600 mile crude oil gathering system in AR Storage facilities with 6.9 million barrels of active shell capacity Pipelines/Transportat
Slide 7: Acquisitions Provide Stable Fee Based Growth
7 Approximately $26 million of annualized EBITDA (1) expected at time of purchase; focus on continued growth of assets Acquisitions Provide Stable Fee Based Growth Tyler Tank Farm and Product Terminal • July 2013 • EBITDA: $10.5 million (1) • Price: $94.8 million • Drop down Hopewell Pipeline • July
Slide 8: Improving EBITDA and Financial Flexibility to Support Growth
Improving EBITDA and Financial Flexibility to Support Growth 8 1) Amounts provided in the Nov. 1, 2012 IPO prospectus showing pro forma historical results for 2011 and forecasted performance for 12 months ending Sept. 30, 2013. Reconciliation on pg. 27 2) Reconciliation provided on page 27. Results
Slide 9: Increased Distribution with Conservative Coverage and Leverage
Increased Distribution with Conservative Coverage and Leverage 9 (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. Please see page 28 for reconciliation. (3) Ba
Slide 10: Improving EBITDA
Improving EBITDA 10 1) Amounts provided in the Nov. 1, 2012 IPO prospectus showing forecasted performance for 12 months ending Sept. 30, 2013. 2) Information provided in Delek Logistics Partners, LP (NYSE: DKL) investor presentation available at www.deleklogistics.com for 2014 EBITDA based on pro fo
Slide 11: Strategy in Place to Provide Continued Growth
11 Growth strategy supports target for annual distribution increase of 15% in coming years Strategy in Place to Provide Continued Growth 1) EBITDA based on pro forma LTM information provided in page 8 and annualized fourth quarter 2014 performance. Fourth quarter 2014 benefitted from an increased ma
Slide 12: Focus on Growth has Improved EBITDA
Focus on Growth has Improved EBITDA 12 (1) Reconciliation on pg. 27 for historical performance. Pro forma includes amounts for drop down contribution based on daily EBITDA expected multiplied by days when the drop down assets were not included in operations of DKL according to purchase dates. Pro fo
Slide 13: Segment Overview
Segment Overview
Slide 14: Lion Pipeline System and SALA Gathering
Lion Pipeline System and SALA Gathering 14 SALA Gathering System • Provides access to local Arkansas, east Texas and north Louisiana crudes to Delek US’ El Dorado refinery. • 600 mile crude oil gathering system, primarily within a 60-mile radius of the El Dorado refinery. • Positioned to benefit fro
Slide 15: Terminalling and West Texas Wholesale Business
Terminalling and West Texas Wholesale Business 15 West Texas Wholesale and Marketing • Operates in an area around the Permian Basin; benefiting from robust economic activity. • Purchases refined products from third parties for resale at owned and third party terminals in west Texas. (1) 2013 west Te
Slide 16: Paline Pipeline – Potential EBITDA Increase in 2015
Paline Pipeline – Potential EBITDA Increase in 2015 16 Approximately 195 mile crude oil pipeline - Mainline pipeline flows from northbound to southbound New agreements effective Jan. 1, 2015 35,000 bpd of mainline capacity contracted to third parties through 6/30/2016 $13.6 million expected
Slide 17: Going Forward
Going Forward
Slide 18: Several Visible Pathways for Continued Growth
Several Visible Pathways for Continued Growth 18 Dropdowns Organic Growth Acquisitive Growth $5-$10 million of potential EBITDA; expected drop down timing March 2015 25,000 bpd (light crude) rail offloading facility at El Dorado refinery 300,000 bbl crude oil tank at Tyler refinery Paline Pi
Slide 19: Peer Comparisons
Peer Comparisons (1) 19 (1) Source: Company repots; Capital IQ 2/26/15 ; NASDAQ OMX; (2) VLO had no debt at 12/31/14 Current Yield as of 2/26/15 1.9% 1.9% 2.0% 3.4% 3.6% 4.5% 4.5% 4.7% 5.0% 5.3% 5.4% 6.4% -0.5% 1.5% 3.5% 5.5% 7.5% MPLX PSXP VLP MMP SXL EPD WNRL TLLP DKL PBFX PAA HEP Distributable Ca
Slide 20: Questions and Answers
20 Questions and Answers 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 cap maintenance capex and limit Delek
Slide 21: Appendix
Appendix 2
Slide 22: Delek US' Refineries are Strategically Positioned and Flexible
Delek US' Refineries are Strategically Positioned and Flexible 22 Inland refinery located in East Texas 60,000 bpd, 9.5 complexity Expansion in 1Q15 to 75,000 bpd Primarily processes inland light sweet crudes (100% in 2013) 94% yield of gasoline, diesel and jet fuel in 2014 El Dorado Refin
Slide 23: Summary of Certain Contracts
Summary of Certain Contracts (9) 23 Initial / Maximum Term (1) Service Year Ended Dec. 31, 2014 Throughput (bpd)(2) Minimum Commitment (bpd) Tariff / Fee Tariff / Fee Escalator Refinery Shutdown Force Majeure Until June 30, 2016 Crude Oil Transportation N/A N/A $1,700,000/Month (6) PPI-fg N/A N/A Fi
Slide 24: Summary of Certain Contracts - footnotes
Summary of Certain Contracts - footnotes 24 (1) Maximum term gives effect to the extension of the commercial agreement pursuant to the terms thereof. (2) Represents average daily throughput for the period indicated. (3) Excludes volumes gathered on the SALA Gathering System. (4) Volumes gathered on
Slide 25: Amended and Restated Omnibus Agreement
Amended and Restated Omnibus Agreement 25 Under the omnibus agreement, Delek Logistics has a ROFO for 10-years post IPO if Delek US decides to sell the following assets: Rail offloading racks in the El Dorado refinery. Delek Logistics has the right to purchase logistics assets Delek US acquire
Slide 26: Summary Organization Structure
Summary Organization Structure 26 38.1% interest Limited partner-common 95.8% ownership interest (1) 2.0% interest General partner interest Incentive distribution rights Delek Logistics Partners, LP NYSE: DKL (the Partnership) 100% ownership interest Public Unitholders Operating Subsidiaries 11.3% i
Slide 27: Non-GAAP Reconciliation - DKL
Non-GAAP Reconciliation - DKL 27 (1) Includes approximately $2.0 million of estimated annual incremental general and administrative expenses expected to incur as a result of being a separate publicly traded partnership. (2) Interest expense and cash interest both include commitment fees and interest
Slide 28: Cash Available for Distribution - DKL
Cash Available for Distribution - DKL 28 (1) Non-GAAP measure. See pg. 27 for the reconciliation to GAAP. (2) Distribution for forecast period based on $1.50 per unit; Distribution for year ended December 31, 2013 and 2014 based on actual amounts distributed during the year; does not include a LTIP
Slide 29: Non-GAAP Reconciliation - DK
Non-GAAP Reconciliation - DK 29 2011 2012 2013 2014 Operating Income $286.1 $473.1 $237.7 $366.5 Loss (Gain) on Disposal of Assets 3.6 (0.1) - - Impairment of Goodwill 2.2 - - - Depreciation and Amortization 74.1 82.5 89.8 111.5 EBITDA $366.0 $555.5 $327.5 $478.0 Year Ended 12/31 Delek US LTM EBITDA
Slide 30: Investor Relations Contact
30 Investor Relations Contact: Assi Ginzburg Keith Johnson Executive Vice President, CFO Vice President of Investor Relations 615-435-1452 615-435-1366
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