Delek Logistics Partners, L.p. · NYSE:DKL
Delek Logistics Partners, L.p — Investor Presentation (April 2024)
17 slides from Delek Logistics Partners, L.p's investor presentation, Apr 2, 2024
Slide 1: Investor Presentation Delek Logistics Partners March 2024
Investor Presentation Delek Logistics Partners March 2024 Exhibit 99.1
Slide 2: Forward Looking Statement
2 Forward Looking Statement 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”, respective
Slide 3: Ownership Structure
3 Ownership Structure Delek Logistics Partners, LP NYSE: DKL (the Partnership) Public Unitholders Operating Subsidiaries 72.7% interest 34.3 million common limited partner units (1) Non-economic ownership interest (1) Ownership as of 3/12/2024 100% 27.3% interest 12.9 million common limited partner
Slide 4: Asset Overview: Premium Midland Footprint
4 Asset Overview: Premium Midland Footprint
Slide 5: Gathering & Processing, Wholesale Marketing & Terminalling, Storage & Transportation, Pipeline JVs
Gathering & Processing Wholesale Marketing & Terminalling Storage & Transportation Pipeline Joint Ventures Includes pipelines, trucks, which provide crude oil gathering and natural gas gathering and processing, water disposal and recycling and storage services, as well as crude oil, intermediate and
Slide 6: Overview: 2023 Highlights, Strategic Initiatives, Financial Strength
Overview 6 •Gathering & Processing third-party revenues up 33% vs FY 2022 • 4Q23 Minimum Volume Commitments (MVC) gross margin performance up ~20% year-over-year • Current distribution: $1.055/LP unit qtr.; $4.22/LP unit annualized2; ~10% current yield3 Strategic Initiatives Financial Strength 2023
Slide 7: Cash Flows: Stability and Diversification
7 Cash Flows: Stability and Diversification Gross Margin ($’s in millions) Annual Net Revenues • 2023 Minimum Volume Commitments (MVC) gross margin performance up 24% year-over-year • ~80% of 2023 gross margin from MVC • 2023 MVC gross margin supported by 23% increase in 3rd party gross year-over-ye
Slide 8: 2023 Adj. EBITDA Results by Segment
8 2023 Adj. EBITDA Results by Segment ($’s in millions) Gathering and Processing Wholesale Marketing and Terminalling Storage and Transportation Investments in Pipeline Joint Ventures Corporate $214.3 $106.5 $63.9 $31.4 $(31.0) Adj. EBITDA: 2023 vs 20221 $MM’s $311.9 $39.1 $23.4 $7.6 $(0.3) $3.4 $38
Slide 9: Financial Strength: Growing Cash Flows
Distributable Cash Flows (DCF)1 ($’s in millions) Financial Strength: Growing Cash Flows Net Income and EBITDA Performance1 ($’s in millions) (1) See reconciliation in appendix 9
Slide 10: Financial Strength: Strong and Stable Distributions
Financial Strength: Strong and Stable Distributions Distribution Per Unit 10 DCF Coverage Ratio 21% Growth Rate
Slide 11: Transaction Summary
• On March 13, 2024 Delek Logistics closed on a follow-on offering of $650 million of 8.625% Senior Notes due 2029. The 2025 Senior Notes and Term Loan are in the process of being retired through the use of proceeds raised from the 2029 Senior Notes. • The transaction significantly extends our debt
Slide 12: Financial Flexibility: Optimizing the Balance Sheet
Financial Flexibility: Optimizing the Balance Sheet 12 (1) Leverage Ratio is presented as of December 31st of each year based on LTM EBITDA as defined by credit facility covenants and disclosed in the earnings release. (2) The Pro Forma Leverage Ratio reflects the proceeds from the underwritten offe
Slide 13: Appendix
Appendix
Slide 14: Duration of Contracts as of 4Q23
Duration of Contracts as of 4Q23 Multi-Year MVC Contracts Contract Highlights • Less than 1 year primarily includes contracts with DK for assets supporting Tyler and El Dorado refineries, negotiations anticipated in 1H24 • The Lion/SALA Gathering System is supported by a long-term contract with thre
Slide 15: Segment EBITDA Reconciliation
Segment EBITDA Reconciliation Year Ended December 31, 2023 Gathering and Processing Wholesale Marketing and Terminalling Storage and Transportation Investments in Pipeline Joint Ventures Corporate and Other Consolidated Net revenues: Affiliate $ 212,537 $ 218,997 $ 132,269 $ — $ — $ 563,803 Third pa
Slide 16: Annual EBITDA Reconciliation
Annual EBITDA Reconciliation 16 Reconciliation of Amounts Reported Under U.S. GAAP (Unaudited) (In thousands) Year Ended December 31, 2019 2020 2021 2022 2023 Reconciliation of Net Income to EBITDA: Net income $ 96,749 $ 159,256 $ 164,822 $ 159,052 $ 126,236 Add: Income tax expense (benefit) $ 967 $
Slide 17: Distributable Coverage Ratio Calculation
(1) Distributable cash flow coverage ratio is calculated by dividing distributable cash flow by distributions to be paid in each respective period. (2) Distributable cash flow adjusted to exclude transaction costs associated with the Delaware Gathering Acquisition. (3) Distributable cash flow covera
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