Delek Us Holdings, Inc. · NYSE:DK
Delek Us — Investor Presentation (February 2014)
26 slides from Delek Us's investor presentation, Feb 12, 2014
Slide 1: Delek US Holdings, Inc. Investor Presentation February 2014
Delek US Holdings, Inc. Investor Presentation February 2014
Slide 2: Safe Harbor Provision
Safe Harbor Provision 2 Delek US Holdings and Delek Logistics Partners, LP are traded on the New York Stock Exchange in the United States under the symbols “DK” and ”DKL” respectively, and, as such, are governed by the rules and regulations of the United States Securities and Exchange Commission. Th
Slide 3: Delek US Holdings Overview
Delek US Holdings Overview Integrated Downstream Energy Company Operates 140,000 BPD of combined refined production capacity in Texas and Arkansas Refining Segment ) Owned crude/product terminals and pipeline assets in Texas, Arkansas and Tennessee Logistics Segment (1) Approximately 362 convenience
Slide 4: Well Positioned Mid-Continent Refining System
WTI - Midland 94% East Texas 6% Gulf Coast 6% Inland / Local 80% Rail 14% Well Positioned Mid-Continent Refining System 4 Strategically Located Assets Provide Access to Cost-Advantaged Feedstocks Tyler Crude Source (3Q13) El Dorado Crude Source (3Q13) Permian Eagle Ford Woodford 75% of 2013 Crude Sl
Slide 5: Refining Segment Operational Update
Refining Segment Operational Update
Slide 6: U.S. Refining Environment Trends
($30.00) ($20.00) ($10.00) $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 J a n -1 0 F e b -1 0 M a r- 1 0 A pr -1 0 M a y -1 0 J u n -1 0 J u l- 1 0 A u g -1 0 S e p -1 0 O c t- 1 0 No v -1 0 De c -1 0 J a n -1 1 F e b -1 1 M a r- 1 1 A pr -1 1 M a y -1 1 J u n -1 1 J u l- 1 1 A u g -1 1 S e p -1 1 O c t
Slide 7: Access to Midland Crudes Benefits Margins
WTI Midland vs. WTI Cushing Crude Pricing ($14.00) ($12.00) ($10.00) ($8.00) ($6.00) ($4.00) ($2.00) $0.00 ` Access to Midland Crudes Benefits Margins 7 Source: Argus – March MTD as of February 10, 2014 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 87,000 bpd of Midland crude in DK sys
Slide 8: Improving Market Fundamentals
$19.83 $14.86 $14.20 $7.71 $10.02 $15.02 $14.37 $17.28 $13.95 $13.52 Q2 2013 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 MTD 2/7/14 2/7/14 Improving Market Fundamentals(1) 8 Improving light product prices Declining crude prices improving residual margins, particularly asphalt at El Dorado
Slide 9: Tyler Refinery Overview
35,000 52,000 25,000 8,000 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 1Q13 2Q13 - Improved Pipeline Access WTI - Midland East Texas / Other Gasoline 52% LPGs 5% Diesel / Jet 40% Other 3% WTI-Midland 94% East Texas 6% Tyler Refinery Overview 9 Inland PADD III refinery located in East Texas
Slide 10: El Dorado Refinery Overview
Improving Niche Market Position with a Crude Slate Weighted to WTI-Linked Crude El Dorado Refinery Overview 10 Inland PADD III refinery located in Southern Arkansas Improved flexibility during 1Q14 turnaround FCC reactor replaced, work done on DHT and Platformer Pre-flash tower project compl
Slide 11: Significant Organic Growth / Margin Enhancement Opportunities
Significant Organic Growth / Margin Enhancement Opportunities 11 El Dorado: LSR/Sat Gas Project (LSR) Improve liquid recovery of Butane & Propane at El Dorado; volumes based on first half 2013 results Tyler: Vacuum Tower Bottoms Project (VTB) Convert El Dorado asphalt to light product via Coker
Slide 12: Logistics and Retail Operational Update
Logistics and Retail Operational Update
Slide 13: Delek Logistics Partners, LP Overview
Delek Logistics Partners, LP Overview (NYSE: DKL) 13 DKL Asset Overview ~400 miles of crude and product transportation pipelines, including the 185 mile crude oil pipeline from Longview to Nederland, TX 600 mile crude oil gathering system Storage facilities with 6.2 million barrels of active s
Slide 14: DKL: Strong Performance & Value Creation Since IPO
Midstream MLP with long-term contracts providing stable, growing cash flow Supports Delek US’ profitable and strategically located inland refining system Unlocks value of marketing and logistics assets Strategic vehicle for growth Visible asset dropdown opportunities Partner for future a
Slide 15: DKL: Several Visible Pathways to Growth
DKL: Several Visible Pathways to Growth 15 Dropdowns from Delek US Organic Growth Acquisitive Growth $5 - $10 Million of potential EBITDA expected to be dropped down over next 12 months in addition to recently completed Tyler and El Dorado asset drop downs 25,000 bpd (light crude) rail offloadin
Slide 16: DKL: Recent Acquisitions
DKL :Recent Acquisitions Approximately $22.1 million of annual EBITDA 16 Tyler Tank Farm and Product Terminal First drop down from Delek US since the IPO, acquired July 26, 2013 Purchase price: $94.8 million Assets Include: 72,000 bpd capacity product terminal Approximately 2.0 million bar
Slide 17: Strong Retail Presence
946 990 1,039 1,082 285 279 2009 2010 2011 2012 3Q12 3Q13 $840 $897 $951 $1,011 $268 $279 2009 2010 2011 2012 3Q12 3Q13 Strong Retail Presence 17 Expanding Market Footprint in Markets Capable of Being Supplied by El Dorado Fuel Gallons Sold Per Store (000’s) Merchandise Sales Per Store ($000’s) Tenn
Slide 18: Financial Update
Financial Update
Slide 19: Financial Highlights
Financial Highlights $164 $151 $130 $445 $659 $541 $494 $375 2008 2009 2010 2011 2012 LTM 3Q13 YTD12 YTD13 Record profitability in 2011 and 2012 driven by growth in the refining segment; Strong first half 2013 performance Strong cash flow generated from operations and Delek Logistics IPO in 2012
Slide 20: Going Forward
Going Forward
Slide 21: Significant Organic Growth / Margin Enhancement Opportunities
Significant Organic Growth / Margin Enhancement Opportunities 21 Crude Slate improvement- Increased Access to Midland sourced crude Quick Hit Capital projects – completed (1) Benefit reflects annualized impact on contribution margin and is subject to market pricing economics and operating rates.
Slide 22: Investment highlights and Questions and Answers
22 Large, Complementary Logistics, Marketing and Retail Systems Significant Organic Growth / Margin Improvement Opportunities Focus on Shareholder Returns Strong Balance Sheet Strategically Positioned Refining Platform Questions and Answers
Slide 23: Appendix Additional Data
Appendix Additional Data
Slide 24: Historical and Projected Capital Spending
$42.3 $36.0 $65.9 $119.7 $14.5 $45.0 $66.1 $72.3 2010A 2011A 2012A 2013E Refining Retail, Logistics, Marketing and Other Historical and Projected Capital Spending 24 $56.8mm $81.0mm $132.0mm $192.0mm Source: Company filings.
Slide 25: Non-GAAP Reconciliation
Non-GAAP Reconciliation 25 Source: Company 10-K filings. ($ in millions) 2008 2009 2010 2011 2012 LTM 3Q13 3Q12 3Q13 Net sales $4,723.7 $2,666.7 $3,755.6 $7,198.2 $8,726.7 $9,133.1 $6,542.2 $6,948.6 Cost of goods sold 4,308.1 2,394.1 3,412.9 6,429.9 7,704.4 8,206.0 5,781.0 6,282.6 Operating expenses
Slide 26: Investor Relations Contact
Investor Relations Contact: Assi Ginzburg Keith Johnson Chief Financial Officer Vice President of Investor Relations 615-435-1452 615-435-1366
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