Delek Us Holdings, Inc. · NYSE:DK
Delek Us — Investor Presentation (March 2013)
26 slides from Delek Us's investor presentation, Mar 15, 2013
Slide 1: Delek US Holdings, Inc. March 2013
Delek US Holdings, Inc. March 2013
Slide 2: Safe Harbor Provision
Safe Harbor Provision 2 Delek US Holdings is traded on the New York Stock Exchange in the United States under the symbol “DK” and, as such, is governed by the rules and regulations of the United States Securities and Exchange Commission. This presentation may contain forward-looking statements that
Slide 3: Delek US Holdings Overview
Delek US Holdings Overview Integrated Downstream Energy Company Operates 140,000 BPD of combined refined production capacity in Texas and Arkansas Refining Segment ) Owned crude/product terminals and pipeline assets in Texas, Arkansas and Tennessee Logistics Segment (1) Approximately 373 convenience
Slide 4: Investment Highlights
4 Large, Complementary Logistics, Marketing and Retail Systems Strong Balance Sheet Significant Organic Growth / Margin Improvement Opportunities Strategically Positioned Refining Platform Investment Highlights Focus on Shareholder Returns Inland PADD III locations provide growing access to advant
Slide 5: Well Positioned Mid-Continent Refining System
WTI - Midland 81% East Texas 19% Gulf Coast 23% Inland / Local 62% Rail 12% Foreign 3% Well Positioned Mid-Continent Refining System 5 Strategically Located Assets Provide Access to Cost-Advantaged Feedstocks Tyler Crude Source (2012) El Dorado Crude Source (2012) Permian Eagle Ford Woodford 75% of
Slide 6: Refining Segment Operational Update
Refining Segment Operational Update
Slide 7: Favorable U.S. Refining Environment Continues
($30.00) ($20.00) ($10.00) $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 Brent-WTI Cushing Spread Per Barrel WTI 5-3-2 Gulf Coast Crack Spread Per Barrel LLS 5-3-2 Gulf Coast Crack Spread Per Barrel Favorable U.S. Refining Environment Continues (1) 7 Elevated Refined Product Margins and Discounted WTI-Li
Slide 8: WTI Midland vs. WTI Cushing Crude Pricing
WTI Midland vs. WTI Cushing Crude Pricing ($14.00) ($12.00) ($10.00) ($8.00) ($6.00) ($4.00) ($2.00) $0.00 ` Access to Midland Crudes Further Enhances Margins 8 Source: Argus; March MTD through March 8, 2013. 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13
Slide 9: Tyler Refinery Overview
35,000 52,000 25,000 8,000 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 Base Improved Pipeline Access WTI - Midland East Texas / Other Gasoline 56% LPGs 4% Diesel / Jet 37% Other 3% WTI-Midland 81% East Texas 19% Tyler Refinery Overview 9 Inland PADD III refinery located in East Texas 60,0
Slide 10: Improved Pipeline Access at Tyler
$0 $100 $200 $300 $5 $10 $15 $20 $25 $30 $35 $40 Improved Pipeline Access at Tyler Potential Annual Savings from Improved Pipeline Access (1) 10 (1) 17,000 bpd equates to 6,205,000 barrels per year for annual savings. (2) Current crude differential is based on month to date as of February 28, 2013.
Slide 11: El Dorado Refinery Overview
We Anticipate El Dorado’s Crude Slate Will Be Weighted Toward WTI-Linked Crude in First Half 2013 Gasoline 47% Diesel 38% Asphalt 10% Other 5% Rail 12% Foreign 3% Gulf 23% Inland/Local 62% El Dorado Refinery Overview 11 Inland PADD III refinery located in Southern Arkansas 80,000 bpd, 9.0 comple
Slide 12: Improved Crude Access at El Dorado
$0 $100 $200 $300 $400 $5 $10 $15 $20 $25 $30 $35 $40 Improved Crude Access at El Dorado Potential Annual Savings from Improved Pipeline Access (1) 12 (1) 25,000 bpd equates to 9,125,000 barrels per year for annual savings potential calculation. (2) Current crude differential is based on month to da
Slide 13: Significant Organic Growth / Margin Enhancement Opportunities
Significant Organic Growth / Margin Enhancement Opportunities 13 El Dorado: LSR/Sat Gas Project (LSR) Improve liquid recovery of Butane & Propane at El Dorado Tyler: Vacuum Tower Bottoms Project (VTB) Convert El Dorado asphalt to light product via Coker at Tyler (1) Subject to market pricing eco
Slide 14: Logistics and Retail Operational Update
Logistics and Retail Operational Update
Slide 15: Delek Logistics Partners, LP Overview
Delek Logistics Partners, LP Overview (NYSE: DKL) 15 DKL Asset Overview ~400 miles of crude and product transportation pipelines, including the 185 mile crude oil pipeline from Longview to Nederland, TX 600 mile crude oil gathering system Storage facilities with 1.7 million barrels of active s
Slide 16: DKL: Strong Performance & Value Creation Since IPO
Midstream MLP with long-term contracts providing stable, growing cash flow Supports Delek US’ profitable and strategically located inland refining system Unlocks value of marketing and logistics assets Strategic vehicle for growth Visible asset dropdown opportunities Partner for future a
Slide 17: Strong Retail Presence
946 990 1,039 1,082 2009 2010 2011 2012 $840 $897 $951 $1,011 2009 2010 2011 2012 Strong Retail Presence 17 Expanding Market Footprint in Markets Capable of Being Supplied by El Dorado Fuel Gallons Sold Per Store (000’s) Merchandise Sales Per Store ($000’s) Tennessee 201 locations Virginia 8 locatio
Slide 18: Financial Update
Financial Update
Slide 19: Financial Highlights
Financial Highlights $164 $151 $130 $445 $659 2008 2009 2010 2011 2012 Record profitability in 2011 and 2012 driven by growth in the refining segment Strong cash flow generated from operations and Delek Logistics IPO in 2012 Free cash flow of $331 million (3) Reduced net debt by $447 million
Slide 20: Going Forward
Going Forward
Slide 21: Market Fundamentals Remain Strong in Q1 2013
$19.34 $24.06 $26.53 Q1 2011 Q1 2012 Q1 2013 Market Fundamentals Remain Strong in Q1 2013 (1) 21 Canadian heavy crude throughput increasing at El Dorado due to rail access Gulf Coast crack spreads have remained robust in Q1 2013 vs. Q1 2012 WTI Midland crude pricing has improved significantly
Slide 22: Significant Organic Growth / Margin Enhancement Opportunities
Significant Organic Growth / Margin Enhancement Opportunities 22 Tyler Crude Slate El Dorado Crude Slate (1) Benefit reflects annualized impact on contribution margin and is subject to market pricing economics. Contribution margin is defined as net sales less cost of goods sold, operating expens
Slide 23: Summary and Questions and Answers
23 Large, Complementary Logistics, Marketing and Retail Systems Significant Organic Growth / Margin Improvement Opportunities Focus on Shareholder Returns Strong Balance Sheet Strategically Positioned Refining Platform Questions and Answers
Slide 24: Appendix Additional Data
Appendix Additional Data
Slide 25: Historical and Projected Capital Spending
$42.3 $36.0 $65.9 $94.0 $14.5 $45.0 $66.1 $64.2 2010A 2011A 2012A 2013E Refining Retail, Logistics, Marketing and Other Historical and Projected Capital Spending 25 $56.8mm $81.0mm $132.0mm $158.2mm Source: Company filings.
Slide 26: Non-GAAP Reconciliation
Non-GAAP Reconciliation 26 Source: Company 10-K filings. Delek US Free Cash Flow Reconciliation ($ in millions) Year Ending 12/31 2012 Net cash provided by operating activities $462.9 Purchases of property, plant and equipment 132.0 Free cash flow $330.9 Delek US Contribution Margin Reconciliation (
Delek US Holdings — Investor Presentation (March 2013) on 6ix