Delek Us Holdings, Inc. · NYSE:DK
Delek Us — Q4 2023 Earnings Presentation
24 slides from Delek Us's earnings presentation, Feb 27, 2024
Slide 1: Fourth Quarter 2023 Earnings Conference Call
Exhibit 99.2 Fourth Quarter 2023 Earnings Conference Call February 27, 2024
Slide 2: 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 3: Overview 2023
Overview 2023 Operational Excellence Solid operational performance across all businesses Best safety year yet Financial Strength and Shareholder Return $146 million returned to shareholders $454 million debt reduction YTD Strategic Initiatives Executing on $100 million run rate rate cost reduction A
Slide 4: Strategic Objectives
Strategic Objectives 2024 Priorities Operational Financial Strength and Strategic Excellence Shareholder Return Initiatives Run safely, reliably and in Execute a prudent and Improve cost and process an environmentally disciplined capital allocation efficiencies to reach responsible manner approach r
Slide 5: Total Refining Throughput
Total Refining Throughput 4Q vs 3Q 2023 MBPD 305.9 3.3 3.4 0.5 306.4 -6.7 3Q23 Tyler El Dorado Big Spring Krotz Springs 4Q23 4Q23 Production Margin per bbl. Tyler El Dorado Big Spring Krotz Springs $11.54 $4.94 $6.05 $4.93 5 *Throughputs are rounded
Slide 6: Operational Excellence: Refining Improvement Plan
Refining Improvement Plan Path to refinery optimization Tyler Refinery Current State Future State Past State Commercially optimized with reliable operations Sustainable operational reliability Sustainable operational reliability Commercial optimization opportunities Commercial optimization realized
Slide 7: 2023 Accomplishments & 2024 - 2025 Commitments
2023 Accomplishments & 2024 - 2025 Commitments 2023 2024 - 2025 Targeted Achieved Target Tyler Refinery Big Spring Refinery Major turnaround $18 million^ $18.5 million^ Reliability improvement ~$100 million* Committed EBITDA uplift from upgrades Improve throughput utilization by 5MBD 65% in '24 35%
Slide 8: Financial Summary
Financial Summary Financial Highlights $ in millions (except per share) 4Q23 2023 Net (Loss) Income $(164.9) $19.8 Adjusted Net (Loss) Income $(93.2) $196.6 Adjusted Net (Loss) Income per share $(1.46) $2.98 Adjusted EBITDA $60.6 $949.7 Cash from operations $90.8 $1,013.6 2023 Capital Allocation $ i
Slide 9: Adjusted EBITDA
Adjusted EBITDA 4Q vs 3Q 2023 ($MM) $345.1 $2.9 $15.4 $60.6 $(295.9) $(6.9) 3Q23 Refining Logistics Retail Corporate 4Q23 4Q23 Adjusted EBITDA Results by Segment Refining Logistics Retail Corporate $(10.4) $99.4 $9.3 $(37.7) 9 *$MM's are rounded
Slide 10: Consolidated Cash Flow
Consolidated Cash Flow 4Q vs 3Q 2023 ($MM) $90.8 $901.7 $(69.4) $822.2 $(100.9) 9/30/2023 Operating Activities Investing Activities Financing Activities 12/31/2023 Cash Balance* Cash Balance* 10 *includes cash and cash equivalents
Slide 11: Capital Program
Capital Program 2023 Actual & 2024 Forecast 2024 $'s in Millions 2023 Forecast 22% 2023 ($ millions) Total Total Regulatory & Sustaining Growth Refining $ 247 $ 220 78% Logistics (Delek Logistics Partners) 81 70 Retail 30 15 Corporate & Other 31 25 23% 2024 Forecast Capital expenditures 389 330 Regu
Slide 12: Net Debt
Net Debt 2023 vs 2022 $'s in Millions Dec 31, 2023 Dec 31, 2022 Consolidated long-term debt - current portion $ 44.5 $ 74.5 Consolidated long-term debt - non-current portion 2,555.3 2,979.2 Consolidated total long-term debt $ 2,599.8 $ 3,053.7 Less: Cash and cash equivalents 822.2 841.3 Consolidated
Slide 13: Guidance
Guidance 1st Quarter 2024 $'s in Millions Low High Operating Expenses $215 $225 General and Administrative Expenses $60 $65 Depreciation and Amortization $90 $95 Net Interest Expense $80 $85 Barrels per day (bpd) Low High Total Crude Throughput 269,000 281,000 Total Throughput 289,000 301,000 Total
Slide 14: Supplemental Slides
14 Supplemental Slides . fusy
Slide 15: Total Refining Throughput
Total Refining Throughput 4Q 2022 vs 4Q 2023 MBPD 19.1 306.4 280.4 9.7 -2.4 -0.4 4Q22 Tyler El Dorado Big Spring Krotz Springs 4Q23 4Q23 Production Margin per bbl. Tyler El Dorado Big Spring Krotz Springs $11.54 $4.94 $6.05 $4.93 15 *Throughputs are rounded
Slide 16: Adjusted EBITDA
Adjusted EBITDA 4Q 2023 vs 4Q 2022 ($MM) $209.8 $21.8 $60.6 $8.8 $1.5 $(181.3) 4Q22 Refining Logistics Retail Corporate 4Q23 4Q23 Adjusted EBITDA Results by Segment Refining Logistics Retail Corporate $(10.4) $99.4 $9.3 $(37.7) 16 *$MM's are rounded
Slide 17: Adjusted EBITDA
Adjusted EBITDA 2023 vs 2022 ($MM) $1,169.8 $62.9 $2.8 $37.0 $949.7 $(322.8) 2022 Refining Logistics Retail Corporate 2023 2023 Adjusted EBITDA Results by Segment Refining Logistics Retail Corporate $706.4 $378.2 $46.9 $(181.8) 17
Slide 18: YTD Consolidated Cash Flow
YTD Consolidated Cash Flow ($MM) $1,013.6 $(408.0) $841.3 $822.2 $(624.7) 12/31/2022 Operating Activities Investing Activities Financing Activities 12/31/2023 Cash Balance* Cash Balance* 18 *includes cash and cash equivalents
Slide 19: Reconciliation of U.S. GAAP Net Income (Loss) to Adjusted Net Income (Loss)
Reconciliation of U.S. GAAP Net Income (Loss) to Adjusted Net Income (Loss) Three Months Ended December 31, Year Ended December 31, $ in millions (unaudited) 2023 2022 2023 2022 Reported net income (loss) attributable to Delek US $ (164.9) $ (118.7) $ 19.8 $ 257.1 Adjusting items (1) Inventory LCM v
Slide 20: Reconciliation of Net Income (Loss) per share to Adjusted Net Income (Loss) Per Share
Reconciliation of U.S. GAAP Net Income (Loss) per share to Adjusted Net Income (Loss) Per Share Three Months Ended December 31, Year Ended December 31, $ per share (unaudited) 2023 2022 2023 2022 Reported diluted (loss) income per share $ (2.57) $ (1.73) $ 0.30 $ 3.59 Adjusting items, after tax (per
Slide 21: Reconciliation of Net (Loss) Income 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) 2023 2022 2023 2022 2023 Reported net (loss) income attributable to Delek US $ (164.9) $ (118.7) $ 19.8 $
Slide 22: 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, 2023 Corporate, Other $ in millions (unaudited) Refining Logistics Retail and Eliminations Consolidated Segment EBITDA Attributable to Delek US $ (58.3) $ 84.2 $ 9.3 $ (72.0) $ (36.8)
Slide 23: Reconciliation of Segment EBITDA to Adjusted Segment EBITDA
Reconciliation of Segment EBITDA Attributable to Delek US to Adjusted Segment EBITDA Year Ended December 31, 2023 Corporate, Other $ in millions (unaudited) Refining Logistics Retail and Eliminations Consolidated Segment EBITDA Attributable to Delek US $ 529.4 $ 363.0 $ 46.9 $ (244.6) $ 694.7 Adjust
Slide 24: 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, 2023 Corporate, Other $ in millions (unaudited) Refining Logistics Retail and Eliminations Consolidated Segment EBITDA Attributable to Delek US $ 285.1 $ 96.5 $ 16.2 $ (64.0) $ 333.8