Delek Us Holdings, Inc. · NYSE:DK
Delek Us — Investor Presentation (April 2012)
19 slides from Delek Us's investor presentation, Apr 2, 2012
Slide 1: Investor Presentation April 2012
Investor Presentation April 2012
Slide 2: Safe Harbor Provision
Safe Harbor Provision 2 Delek US Holdings is traded on the New York Stock Exchange in the United States under the symbol “DK” and, as such, is governed by the rules and regulations of the United States Securities and Exchange Commission. This presentation may contain forward-looking statements that
Slide 3: Integrated Downstream Energy Company
Integrated Downstream Energy Company(1) Breadth of Exposure Across Refining, Wholesale Marketing and Retail Distribution Operates 140,000 BPD of refined production capacity in Texas and Arkansas Refining Segment ) Owned crude/product terminals and pipeline assets in Texas, Arkansas and Tennessee Mar
Slide 4: Reached 100% Ownership in Lion Oil During 2011
Reached 100% Ownership In Lion Oil During 2011 Timeline Lion Oil Is Now Wholly Owned By Delek US 4 1922 1985 July 2007 Sept. 2007 Apr. 2011 Oct. 2011 Inception of Lion Oil Ergon and other investors assume ownership DK acquires 28.4% interest DK acquires 6.2% interest DK acquires 53.7% interest DK As
Slide 5: Recent Financial Performance
Recent Financial Performance 5 (1) Represents adjusted net income from continuing operations (2) Delek US assumed operational control of the El Dorado refinery and related assets through the acquisition of a majority equity interest in Lion Oil on April 29, 2011 (3) Contribution margin defined as ne
Slide 6: Improved Balance Sheet and Liquidity
Improved Balance Sheet and Liquidity 6 Cash and Equivalents ($MM)(1,2) Net Debt Outstanding ($MM) $101.6 mm $105.0 mm $225.9 mm 2006 2007 2011 $185.0 mm $250.2 mm $206.7 mm 2006 2007 2011 Reduction in net debt, even after buying the remainder of Lion, Paline ($50mm) and special dividend ($12mm)
Slide 7: Refining Segment Operational Update
Refining Segment Operational Update
Slide 8: Optimized Refining System To Support Regional Demand
Optimized Refining System To Support Regional Demand 8 Increased Refining System Reliability(1) Lion Oil Acquisition More Than Doubled Sales Volumes In The Gulf Coast and Mid-Continent (1) 89.8% 86.1% 82.2% 83.3% 92.7% 2007 2008 2009 2010 2011 53,439 59,161 46,500 54,405 58,261 127,962 142,237 138,9
Slide 9: Favorable Refining Economics Continue Into 1Q12: Crack Spread
Favorable Refining Economics Continue Into 1Q12(1) 9 HSD 5-3-2 Gulf Coast Crack Spread Per Barrel – 23$ per barrel in Q1 2012 (1) Source: Platts; March 2012 data is as of March 19, 2012 $0.00 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00 Ja n -1 0 Fe b -1 0 M ar -1 0 A p r- 1 0 Ma y- … Ju n
Slide 10: Favorable Refining Economics Continue Into 1Q12: Brent-WTI Differential
Favorable Refining Economics Continue Into 1Q12(1) 10 Brent-WTI Differential Per Barrel (1) Source: Bloomberg; March 2012 data is as of March 19, 2012 ($30.00) ($25.00) ($20.00) ($15.00) ($10.00) ($5.00) $0.00 $5.00 Ja n -1 0 Fe b -1 0 M ar -1 0 A p r- 1 0 M ay -1 0 Ju n -1 0 Ju l- 1 0 A u g- 1 0 Se
Slide 11: Crude Slate Transition at El Dorado Underway
Crude Slate Transition at El Dorado Underway 11 Historically processed local Arkansas, domestic offshore and foreign crude oils El Dorado Has A Diverse Crude Slate Displaced expensive foreign and GC crudes with discounted local, inland crudes Supplying More WTI-Linked Barrels We Anticipate El Dorado
Slide 12: Access To Lower Cost Crude at Tyler Refinery
Access To Lower Cost Crude at Tyler Refinery 12 Processes primarily West Texas Intermediate and East Texas crude oils On a blended basis, Tyler purchased crude at ~$1.50/bbl above WTI in 1Q12 Tyler Crude Costs Near Parity with WTI Tyler Refinery Enjoys An Advantaged Crude Slate – Anticipate More Low
Slide 13: Identified Quick-Hit Capital Projects
Identified “Quick-Hit” Capital Projects 13 Low-Cost, High-Return Capital Projects at Tyler and El Dorado(1) LSR/Sat Gas Project (LSR) Scope: Improves liquid recovery of Butane & Propane at El Dorado Anticipated Cost: $16 million Anticipated Return: $20 million contribution margin annually An
Slide 14: Retail Segment Operational Update
Retail Segment Operational Update
Slide 15: Growth In Same-Store Sales
Growth In Same-Store Sales Key Factors That Drive Same-Store Sales Relevant Factors: Location, size, appeal, offering, affordability, people Same-Store Merchandise Sales ) Relevant Factors: Commodity prices, weather, empl oyment, supply disruptions Same-Store Gallons Sold 15 Consistent Growth In Sam
Slide 16: Store Reimaging & New Construction Initiatives
Store Reimaging & New Construction Initiatives(1) Reimaging and Construction Update Approximately 180 stores have been built or reimaged since 2006 Multi-Year Store Enhancement Initiative ) Long-term target of at least 10-20 new large-format builds per annum Multi-Year New Store Construction Plan 16
Slide 17: Marketing Segment Operational Update
Marketing Segment Operational Update
Slide 18: Midstream Assets Generate Consistent Results
Midstream Assets Generate Consistent Results Wholesale Marketing In West Texas Owned (San Angelo, Abilene, Tyler); Third-Party (Aledo, Odessa, Big Springs, Frost) Product Marketing Terminals 18 ) Annual CAPEX less than $1 million per year 2006 -2011 Minimal CAPEX requirements ) Positive contribution
Slide 19: Recent Acquisitions of Midstream Assets
Recent Acquisitions of Midstream Assets 19 Recent Acquisitions Improve Crude Procurement, Product Distribution Capabilities Paline Pipeline System (December 2011) 10-inch, 185-Mile crude line for $50.0 mm 36,000 bpd capacity; runs from Longview to Nederland, TX Line being reversed under lease
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