Delek Us Holdings, Inc. · NYSE:DK
Delek Us — Q2 2019 Earnings Presentation
19 slides from Delek Us's earnings presentation, Aug 5, 2019
Slide 1: Second Quarter 2019 Earnings Call
Exhibit 99.2 Delek US Holdings, Inc. Second Quarter 2019 Earnings Call August 5, 2019
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: 2Q19 Highlights
2Q19 Highlights Segment Contribution Margin, $ in millions • Solid performance in 2Q19 $300 $250 2Q18 2Q19 • Reported EPS of $1.00 and adjusted EPS of $1.17 (1) $250 $229 • Net Income of $77.3 million and adjusted EBITDA of $200 $177 $178 $204.9 million (1) $150 $100 $44 $50 $45 • Grew adjusted EBIT
Slide 4: 2Q19 Highlights – Cash Flow
2Q19 Highlights – Cash Flow • Strong financial position, cash generation supports ongoing Total Consolidated Cash Flows reinvestment while returning cash to 1,200 $146.5 shareholders $989.7 ($44.5) 1,000 $142.2 $951.4 • Operating cash flow from continuing ops (excl. working cap) $146.5 million ($202
Slide 5: Capitalization
Capitalization June 30, December 31, • Excluding Delek Logistics at June 2019 2018 30, 2019 ($ in millions) • Cash of $946.0 million Current Debt $64.4 $32.0 • Net debt of $129.8 million Long-Term Debt 1,852.3 1,751.3 Total Debt $1,916.7 $1,783.3 • Balance sheet provides financial Cash ($951.4) ($1,
Slide 6: Guidance
Guidance 3Q19 Guidance Range Low High Consolidated Operating Expenses, $ in millions $165.0 $175.0 Consolidated G&A, $ in millions $63.0 $68.0 Consolidated Depreciation and Amort., $ in millions $51.0 $53.0 Net interest expense, $ in millions $30.0 $32.0 Effective Tax Rate 23% 25% Estimate Diluted S
Slide 7: Capital Expenditure 2019 E
Capital Expenditure 2019 E • Expected 2019 capital expenditures of $396 million ($ in millions) Current Previous Change • 2019 includes the following projects: Refining: • El Dorado Turnaround Regulatory $ 63.1 $ 68.4 $ (5.3) • Started on March 11th and was completed Maintenance/reliability 138.4 11
Slide 8: Wink to Webster Crude Oil Long Haul Pipeline Joint Venture
Wink to Webster Crude Oil Long Haul Pipeline Joint Venture Complements Gathering – Provides Access to Gulf Coast Markets • Wink to Webster Pipeline • 650-mile 36-inch diameter crude oil pipeline • Wink to Webster Pipeline LLC – Exxon, Plains, MPLX, Delek US, Rattler Midstream, Lotus Midstream • Expe
Slide 9: Growing Midstream: Red River Pipeline Joint Venture
Growing Midstream: Red River Pipeline Joint Venture • DKL purchased 33% interest in May 2019; closed effective May 1 • Approx. $128.0 million initial investment; Financed with revolver • Planned expansion from 150 kbpd to 235 kbpd • Expected completion in first half of 2020 • DKL will contribute $20
Slide 10: Strategic Actions Underway
Strategic Actions Underway Enhanced Portfolio to Improve Performance and Returns • Divested non-core West Coast Assets resulting in $162 million of asset sales • Paramount, CA/AltAir Renewables (March 2018) Divested Underperforming • West Coast Asphalt Terminals (May 2018) Assets • Long Beach, CA (J
Slide 11: Expanding Platform to Support Midstream Growth
Expanding Platform to Support Midstream Growth Supports Delek US’ goal to generate approximately $370 million to $395 million of annual midstream adjusted EBITDA by 2023 (1) • Delek US announced goal to achieve midstream target Strong Adjusted EBITDA Growth Profile from Midstream Initiatives by 2023
Slide 12: Significant Cash Returns to Shareholders
Significant Cash Returns to Shareholders Focus on returning cash while maintaining financial strength Cash to Shareholders (2) • Continue to target competitive dividend level for a growth company that can be supported through a cycle • Announced a 1 cent dividend increase +3.6% to $0.29/qtr (1) • Re
Slide 13: Questions and Answers
Questions and Answers Significant Organic Focus on Long-Term Growth / Margin Shareholder Returns Improvement Opportunities An Integrated and Permian Focused Diversified Refining, Financial Flexibility Refining System Logistics and Marketing Company Complementary Logistics Systems
Slide 14: Non-GAAP Reconciliations of Adjusted Net Income per Share
Non-GAAP Reconciliations of Adjusted Net Income per Share Delek US Holdings, Inc. Reconciliation of Amounts Reported Under U.S. GAAP per share data Three Months Ended June 30, Reconciliation of U.S. GAAP Income (loss) per share to Adjusted Net Income per share 2019 2018 (Unaudited) Reported diluted
Slide 15: Non-GAAP Reconciliations of Adjusted EBITDA
Non-GAAP Reconciliations of Adjusted EBITDA Delek US Holdings, Inc. Reconciliation of Amounts Reported Under U.S. GAAP $ in millions Three Months Ended June 30, Reconciliation of Net Income (Loss) attributable to Delek to Adjusted EBITDA 2019 2018 (Unaudited) Reported net income (loss) attributable
Slide 16: Non-GAAP Reconciliations of Forecasted EBITDA Krotz Springs Logistics Drop Down
Non-GAAP Reconciliations of Forecasted EBITDA Krotz Springs Logistics Drop Down Reconciliation of Forecast Annualized Net Income to Forecast Incremental EBITDA ($ in millions) Forecasted Range Forecasted Incremental Net Income $ 2.9 $ 3.3 Add Forecasted Incremental Amounts for: Depreciation and amor
Slide 17: Non-GAAP Reconciliation of Increased Paline Pipeline Tariff EBITDA
Non-GAAP Reconciliation of Increased Paline Pipeline Tariff EBITDA(1) Reconciliation of Forecast Incremental U.S. GAAP Net Income (Loss) to Forecast Incremental EBITDA for Paline Pipeline Tariff Increase ($ in millions) Annual Monthly Forecasted Incremental Net Income $ 10.8 $ 0.9 Add Forecasted Inc
Slide 18: Non-GAAP Reconciliation of Red River Joint Venture Adjusted EBITDA
Non-GAAP Reconciliation of Red River Joint Venture Adjusted EBITDA(1) Delek Logistics Partners, LP Reconciliation of Forecasted Incremental Annualized Net Income to Forecasted Incremental Annualized Adjusted EBITDA for the Red River Pipeline Joint Venture ($ in millions) Pre-Expansion Range Post-Exp
Slide 19: DKL: Income Statement and Non-GAAP EBITDA Reconciliation
DKL: Income Statement and Non-GAAP EBITDA Reconciliation 2013(1) 1Q14(1) 2Q14 3Q14 4Q14 2014 (1) 1Q15(2) 2Q15 3Q15 4Q15 2015 1Q16 2Q16 3Q16 4Q16 2016 Net Revenue $907.4 $203.5 $236.3 $228.0 $173.3 $841.2 $143.5 $172.1 $165.1 $108.9 $589.7 $104.1 $111.9 $107.5 $124.7 $448.1 Cost of Sales (811.4) (172