Delek Us Holdings, Inc. · NYSE:DK
Delek Us — Q4 2018 Earnings Presentation
13 slides from Delek Us's earnings presentation, Feb 20, 2019
Slide 1: Delek US Holdings, Inc. Fourth Quarter 2018 Earnings Call
EX 99.2 Delek US Holdings, Inc. Fourth Quarter 2018 Earnings Call February 20, 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: 4Q18 Highlights
4Q18 Highlights • Strong performance in 4Q18 Segment Contribution Margin, $ in millions • Reported EPS of $1.48 and adjusted EPS $1.59 (1) • Net Income of $121.6 million and adjusted EBITDA $350 $300 285.4 of $251.4 million(1) 235.3 $250 214.3 $200 185.8 $150 • Improved results in all segments on ye
Slide 4: 4Q18 Highlights – Cash Flow
4Q18 Highlights – Cash Flow • Strong cash flow generation in Total Consolidated Cash Flows 4Q18 supported investment in 1,600 the business and returning cash $359.1 to shareholders 1,400 ($88.1) • Operating cash flow from 1,200 $1,109.1 continuing ops $359.1 million $1,079.3 ($300.8 ) 1,000 • Invest
Slide 5: Capitalization
Capitalization December 31, 2018 2017 • Excluding Delek Logistics at 12/31/18 ($ in millions) Current Debt $32.0 $590.2 • Cash of $1.1 billion Long-Term Debt 1,751.3 875.4 • Net debt of $8.1 million Total Debt $1,783.3 $1,465.6 Cash ($1,079.3) ($931.8) • Balance sheet provides financial Net Debt Del
Slide 6: Delek US Forecast Case EBITDA
Delek US Forecast Case EBITDA Potential Earnings Power of Current Model Forecast Case Segment EBITDA(1)(2) $1,200 Refining Basic Assumptions* Current Operations $991 $1,000 Midland – Cushing Differential -$2.50 $165 $35 $826 $800 $750 WTI HSD 5-3-2 Crack Spread $13.50 $715 ($165) WTI ULSD 5-3-2 Crac
Slide 7: Delek's Capital Allocation Framework
Delek’s Capital Allocation Framework Balance the following objectives using a rigorous and disciplined capital allocation program to create long-term value for our shareholders: • Invest: Capital allocation program focuses on safety, maintenance, and reliability as priority • Grow: Maintain financia
Slide 8: Guidance
Guidance 1Q19 Guidance Range Low High Consolidated Operating Expenses, $ in millions $165.0 $175.0 Consolidated G&A, $ in millions $55.0 $60.0 Consolidated Depreciation and Amort., $ in millions $52.0 $54.0 Net interest expense, $ in millions $26.0 $28.0 Effective Tax Rate 23.0% 25.0% Estimate Dilut
Slide 9: Capital Expenditure
Capital Expenditure • 2018 capital Expenditures of $317.2 million • 4Q18 spending of $106.3 million ($ in millions) 2018 2019 E • Expected 2019 capital expenditures of $350.1 million Refining: Regulatory $ 38.0 $ 82.9 • 2019 includes the following projects: Maintenance/reliability 88.7 112.3 • El Do
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)(3) • Continue to target competitive dividend level for a growth company that can be supported through a $200.0 cycle • Announced a 1 cent dividend increase t
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 Year Ended December 31, December 31, Reconciliation of U.S. GAAP Income per share to Adjusted Net Income per share 2018 2017 2018 2017 (Unaudit
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 Year Ended December 31, December 31, Reconciliation of Net Income attributable to Delek to Adjusted EBITDA 2018 2017 2018 2017 (Unaudited) (Unaudite