Delek Us Holdings, Inc. · NYSE:DK
Delek Us — Q3 2019 Earnings Presentation
14 slides from Delek Us's earnings presentation, Nov 5, 2019
Slide 1: Third Quarter 2019 Earnings Call
Exhibit 99.2 Delek US Holdings, Inc. Third Quarter 2019 Earnings Call November 5, 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: 3Q19 Highlights
3Q19 Highlights • Solid Performance in 3Q19 Segment Contribution Margin, $ in millions • Reported EPS of $0.68 and adjusted EPS of $0.78 (1) $400 $361 3Q18 3Q19 • Adjusted Net Income of $58.7 million and adjusted $350 $320 EBITDA of $163.1 million (1) $300 $250 • $203 Adjusted results include $20.7
Slide 4: 3Q19 Highlights: Cash Flows
3Q19 Highlights • Strong financial position with over $1 billion of cash on the balance sheet Total Consolidated Cash Flows 1,400 • Cash flow was robust at approx. $213 $80 million from operating activities 1,200 $133 $1,006 $87 1,000 $951 • Working capital increased cash flow by ($180) approx. $80
Slide 5: Capitalization
Capitalization September 30, December 31, • Excluding Delek Logistics at 2019 2018 September 30, 2019 ($ in millions) • Cash of $1,000 million Current Debt $64.5 $32.0 • Net debt of $159.1 million Long-Term Debt 1,935.4 1,751.3 Total Debt $1,999.9 $1,783.3 Cash ($1,006.4) ($1,079.3) • Balance sheet
Slide 6: Guidance
Guidance 4Q19 Guidance Range Low High Consolidated Operating Expenses, $ in millions $165.0 $175.0 Consolidated G&A, $ in millions $65.0 $70.0 Consolidated Depreciation and Amort., $ in millions $51.0 $53.0 Net interest expense, $ in millions $30.5 $32.5 Effective Tax Rate 23.0% 25.0% Estimate Dilut
Slide 7: Capital Expenditure
Capital Expenditure • Expected 2019 capital expenditures of $415 million • $247mm: Refining 2019 E • $10mm: Logistics ($ in millions) Current Previous Change • $21mm: Retail • $137mm: Corporate Refining: Regulatory $ 61.8 $ 63.1 $ (1.3) • 2019 includes the following projects: Maintenance/reliability
Slide 8: Midstream: Big Spring Gathering System
Midstream: Big Spring Gathering System Delek US’ Gathering Helps Control Crude Oil Quality and Cost into Refineries • Approximately 200-mile gathering system, 350Kbpd • Getting closer to wellhead allows us to control throughput capacity crude quality and cost • >275,000 dedicated acres; Points of or
Slide 9: 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 +3.5% to $0.30/qtr (1) • Re
Slide 10: 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 11: 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 $ in millions Three Months Ended Nine Months Ended Reconciliation of Net Income (Loss) attributable to Delek to Adjusted Net Income 2019 2018 2019 2018 (Unaudited) (Unaudited) R
Slide 12: 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 Nine Months Ended September 30, September 30, Reconciliation of U.S. GAAP Income (loss) per share to Adjusted Net Income per share 20
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 Nine Months Ended September 30, September 30, Reconciliation of Net Income attributable to Delek to Adjusted EBITDA 2019 2018 2019 2018 (Unaudited)
Slide 14: Non-GAAP Reconciliations of Forecasted EBITDA
Non-GAAP Reconciliations of Forecasted EBITDA Reconciliation of Forecasted Incremental Annualized Net Income to Forecasted Incremental Annualized EBITDA for the Big Springs Gathering System ($ in millions) Forecasted Range Forecasted Incremental Annualized Net Income $ 5.0 $ 10.0 Add Forecasted Incr