Delek Us Holdings, Inc. · NYSE:DK
Delek Us — Q1 2019 Earnings Presentation
17 slides from Delek Us's earnings presentation, May 6, 2019
Slide 1: Delek US Holdings First Quarter 2019 Earnings Call
Exhibit 99.2 Delek US Holdings, Inc. First Quarter 2019 Earnings Call May 6, 2019
Slide 2: Disclaimers - Forward Looking Statements
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: 1Q19 Highlights
1Q19 Highlights • Strong performance in 1Q19 Segment Contribution Margin, $ in millions • Reported EPS of $1.90 and adjusted EPS of $1.54 (1) $400 $350 333.8 1Q18 1Q19 • Net Income of $149.3 million and adjusted EBITDA of 294.3 $237.5 million (1) $300 $250 • Improved results on year over year basis
Slide 4: 1Q19 Highlights – Cash Flow
1Q19 Highlights – Cash Flow • Financial position and cash flow Total Consolidated Cash Flows generation in 1Q19 supported 1,400 investment in the business and returning cash to shareholders $133.4 1,200 $1,079.3 • Operating cash flow from ($127.0 ) $989.7 1,000 continuing ops $133.4 million ($96.0 )
Slide 5: Capitalization
Capitalization March 31, December 31, • Excluding Delek Logistics at Mar. 2019 2018 31, 2019 ($ in millions) • Cash of $984.3 million Current Debt $32.0 $32.0 Long-Term Debt 1,729.1 1,751.3 • Net debt of $71.6 million Total Debt $1,761.1 $1,783.3 Cash ($989.7) ($1,079.3) • Balance sheet provides fin
Slide 6: Delek US Forecast Case EBITDA
Delek US Forecast Case EBITDA Potential Earnings Power of Current Model (1) Refining Basic Assumptions* Forecast Case EBITDA Midland – Cushing Differential -$2.50 $1,200 Current Operations $1,050 (2) WTI HSD 5-3-2 Crack Spread $13.50 (2) $1,000 $40 (2) (2) $900 (3) $60 WTI ULSD 5-3-2 Crack Spread $1
Slide 7: Guidance
Guidance 2Q19 Guidance Range Low High Consolidated Operating Expenses, $ in millions $165.0 $175.0 Consolidated G&A, $ in millions $57.0 $62.0 Consolidated Depreciation and Amort., $ in millions $52.0 $53.0 Net interest expense, $ in millions $28.0 $30.0 Effective Tax Rate 23% 25% Estimate Diluted S
Slide 8: Capital Expenditure 2019 E
Capital Expenditure 2019 E • Expected 2019 capital expenditures of $394.1 million ($ in millions) Current Previous Change • 2019 includes the following projects: Refining: • El Dorado Turnaround Regulatory $ 68.4 $ 82.9 $ (14.5) • Started on March 11th and was completed Maintenance/reliability 118.6
Slide 9: Organic Projects Create Platform to Support Midstream Growth
Organic Projects Create Platform to Support Midstream Growth Supports Delek US’ goal to generate approximately $350 million to $370 million of annual midstream EBITDA by 2023 • Paline Pipeline tariff increase Strong EBITDA Growth Profile from Midstream Initiatives (1) • Incentive tariff of $0.75/bbl
Slide 10: Significant Cash Returns to Shareholders
Significant Cash Returns to Shareholders Focus on returning cash to shareholders 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 to $0.28/qt
Slide 11: 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 12: Non-GAAP Reconciliations of Adjusted Net Income
Non-GAAP Reconciliations of Adjusted Net Income Delek US Holdings, Inc. Reconciliation of Amounts Reported Under U.S. GAAP per share data Three Months Ended March 31, Reconciliation of U.S. GAAP Income (loss) per share to Adjusted Net Income per share 2019 2018 (Unaudited) Reported diluted income pe
Slide 13: 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 March 31, Reconciliation of Net Income (Loss) attributable to Delek to Adjusted EBITDA 2019 2018 (Unaudited) Reported net income (loss) attributable
Slide 14: Non-GAAP Reconciliations of Adjusted EBITDA - Alkylation Project
Non-GAAP Reconciliations of Adjusted EBITDA Reconciliation of Forecast Incremental U.S. GAAP Net Income (Loss) to Forecast Incremental EBITDA for Alkylation Project ($ in millions) Annual Amount Forecasted Incremental Net Income $ 33.2 Add Forecasted Incremental Amounts for: Interest Expense, net $
Slide 15: Non-GAAP Reconciliations of Adjusted EBITDA
Non-GAAP Reconciliations of Adjusted EBITDA 15
Slide 16: 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 17: 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