Delek Us Holdings, Inc. · NYSE:DK
Delek Us — Q2 2024 Earnings Presentation
26 slides from Delek Us's earnings presentation, Aug 6, 2024
Slide 1: Second Quarter 2024 Earnings Conference Call
Exhibit 99.2 Second Quarter 2024 Earnings Conference Call August 6, 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
Overview • Announced several key initiatives to unlock "sum of the parts" value • With a new gas processing plant, contract amendments & extensions, interest in Wink to Webster pipeline ("W2W") & H2O Midstream, DKL is on pace to have two-thirds 3rd party EBITDA over the next 12 months • Operations:
Slide 4: Strategic Objectives DK/DKL Strategy
Strategic Objectives DK/DKL Strategy DK DKL (Full-service Permian-focused midstream (Safe, Reliable, & Efficient Refiner) provider) 1. Maximize Operating Leverage • Better Reliability 1. Full Suite Midstream Provider ◦ Throughput • Gas, Water, & Crude ◦ Optimized yields • One stop shop • Lower Costs
Slide 5: SOTP Progress: DK & DKL Actions
SOTP Progress: DK & DKL Actions DK Movement DKL Gas Plant, Retail H2O Acquisition W2W W2W (+Cash, +Units) (-Cash, -Units) Contract Value / ITF Amend & Extend (-Units) (+Units) Contracts between DK & DKL amended and extended for up to 7 years Our Intent is to make DK & DKL stronger & more independent
Slide 6: SOTP Progress: Summary of DK & DKL Transactions Announced in 3Q'24
SOTP Progress: Summary of DK & DKL Transactions Announced in 3Q'24 3. Acquisition of H2O 1. Retail Sale Midstream • H2O for ~$230mm ($160mm cash + $70mm • Retail assets sold for proceeds of ~$385mm preferred) • Executed a 10 year supply agreement • Same footprint & customers as DKL • Continue to par
Slide 7: SOTP Progress: Projected implications for DK & DKL
SOTP Progress: Projected implications for DK & DKL Bottom line: DKL (standalone) adds Bottom line: DK (standalone) has a ~$70mm in projected third party cash cash infusion of ~$515mm (before tax) flow on course to majority of its without any significant projected loss EBITDA coming from non-affiliat
Slide 8: Lower Costs & Improved Reliability
Lower Costs & Improved Reliability Inflation 7.1% 5.8% 4.0% 3.5% 3.2% 3.3% 3.3% 3.3% Rate Guidance Guidance Mid-Point Range 8
Slide 9: Total Refining Throughput
Total Refining Throughput 2Q 2024 vs 1Q 2024 MBPD 9.1 5.7 316.0 296.7 3.4 1.1 1Q24 Tyler El Dorado Big Spring Krotz Springs 2Q24 2Q24 Production Margin per bbl. Tyler El Dorado Big Spring Krotz Springs $10.11 $2.79 $8.92 $7.02 9 *Throughputs are rounded
Slide 10: Financial Summary
Financial Summary 2nd Quarter 2024 Financial Highlights $ in millions (except per share) Net Loss $(37.2) Adjusted Net Loss $(59.3) Adjusted Net Loss per share $(0.92) EBITDA $124.9 Adjusted EBITDA $107.5 Cash from operations $(48.4) 10
Slide 11: Adjusted EBITDA
Adjusted EBITDA 2Q 2024 vs 1Q 2024 ($MM) $158.7 $5.9 $6.0 $107.5 $0.9 $(64.0) 1Q24 Refining Logistics Retail Corporate 2Q24 2Q24 Adjusted EBITDA Results by Segment Refining Logistics Retail Corporate $42.1 $100.6 $12.4 $(47.6) 11 *$MM's are rounded
Slide 12: Consolidated Cash Flow
Consolidated Cash Flow 2Q 2024 vs 1Q 2024 ($MM) $753.4 $(48.4) $15.4 $657.9 $(62.5) 03/31/2024 Operating Activities Investing Activities Financing Activities 6/30/2024 Cash Balance* Cash Balance* 12 *includes cash and cash equivalents
Slide 13: Capital Program
Capital Program 2024 YTD Actual & 2024 Forecast 2024 2024 $'s in Millions 2024 YTD (1) Forecast (2) 25% Actual ($ millions) Total Total Regulatory & Sustaining Growth Refining $ 69 $ 220 75% Logistics (Delek Logistics Partners) 25 70 Retail 11 15 23% 2024 Corporate & Other 12 25 Forecast Regulatory
Slide 14: Net Debt
Net Debt 2024 vs 2023 $'s in Millions Jun 30, 2024 Dec 31, 2023 Consolidated long-term debt - current portion $ 9.5 $ 44.5 Consolidated long-term debt - non-current portion 2,452.2 2,555.3 Consolidated total long-term debt $ 2,461.7 $ 2,599.8 Less: Cash and cash equivalents 657.9 822.2 Consolidated
Slide 15: Guidance
Guidance 3rd Quarter 2024 $'s in Millions Low High Operating Expenses $205 $215 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 290,000 305,000 Total Throughput 301,000 315,000 Total
Slide 16: Supplemental Slides
16 Supplemental Slides . fusy
Slide 17: Total Refining Throughput
Total Refining Throughput 2Q 2024 vs 2Q 2023 MBPD 11.2 11.7 316.0 295.5 -1.2 -1.2 2Q23 Tyler El Dorado Big Spring Krotz Springs 2Q24 2Q24 Production Margin per bbl. Tyler El Dorado Big Spring Krotz Springs $10.11 $2.79 $8.92 $7.02 17 *Throughputs are rounded
Slide 18: Adjusted EBITDA
Adjusted EBITDA 2Q 2024 vs 2Q 2023 ($MM) $259.4 $9.7 $11.3 $107.5 $(170.3) $(2.6) 2Q23 Refining Logistics Retail Corporate 2Q24 2Q24 Adjusted EBITDA Results by Segment Refining Logistics Retail Corporate $42.1 $100.6 $12.4 $(47.6) 18 *$MM's are rounded
Slide 19: Adjusted EBITDA
Adjusted EBITDA YTD 2024 vs 2023 ($MM) $544.0 $18.0 $0.5 $266.2 $(293.8) $(2.5) 2023 Refining Logistics Retail Corporate 2024 YTD 2024 Adjusted EBITDA Results by Segment Refining Logistics Retail Corporate $152.2 $200.3 $18.9 $(105.2) 19
Slide 20: YTD Consolidated Cash Flow
YTD Consolidated Cash Flow ($MM) $118.3 $822.2 $(104.1) $657.9 $(178.5) 12/31/2023 Operating Activities Investing Activities Financing Activities 06/30/2024 Cash Balance* Cash Balance* 20 *includes cash and cash equivalents
Slide 21: 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 June 30, Six Months Ended June 30, $ in millions (unaudited) 2024 2023 2024 2023 Reported net (loss) income attributable to Delek US $ (37.2) $ (8.3) $ (69.8) $ 56.0 Adjusting items (1) Inventory LCM valua
Slide 22: Reconciliation of U.S. GAAP 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 June 30, Six Months Ended June 30, $ per share (unaudited) 2024 2023 2024 2023 Reported diluted (loss) income per share $ (0.58) $ (0.13) $ (1.09) $ 0.84 (1) (2) Adjusting items, after
Slide 23: Reconciliation of Net (Loss) Income attributable to Delek US to Adjusted EBITDA
Reconciliation of Net (Loss) Income attributable to Delek US to Adjusted EBITDA Three Months Ended Three Months Ended June 30, Six Months Ended June 30, March 31, $ in millions (unaudited) 2024 2023 2024 2023 2024 Reported net (loss) income attributable to Delek US $ (37.2) $ (8.3) $ (69.8) $ 56.0 $
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 June 30, 2024 Corporate, Other $ in millions (unaudited) Refining Logistics Retail and Eliminations Consolidated Segment EBITDA Attributable to Delek US $ 17.3 $ 100.6 $ 12.4 $ (5.4) $ 124.9 Adjus
Slide 25: Reconciliation of Segment EBITDA to Adjusted Segment EBITDA
Reconciliation of Segment EBITDA Attributable to Delek US to Adjusted Segment EBITDA Six Months Ended June 30, 2024 Corporate, Other $ in millions (unaudited) Refining (4) Logistics Retail and Eliminations (4) Consolidated Segment EBITDA Attributable to Delek US $ 122.4 $ 200.3 $ 18.9 $ (73.6) $ 268
Slide 26: Reconciliation of Segment EBITDA to Adjusted Segment EBITDA
Reconciliation of Segment EBITDA Attributable to Delek US to Adjusted Segment EBITDA Three Months Ended March 31, 2024 Corporate, Other $ in millions (unaudited) Refining (4) Logistics Retail and Eliminations (4) Consolidated Segment EBITDA Attributable to Delek US $ 105.1 $ 99.7 $ 6.5 $ (68.2) $ 14