Delek Us Holdings, Inc. · NYSE:DK
Delek Us — Investor Presentation (May 2013)
24 slides from Delek Us's investor presentation, May 14, 2013
Slide 1: Delek US Holdings, Inc. May 2013
Delek US Holdings, Inc. May 2013
Slide 2: Safe Harbor Provision
Safe Harbor Provision 2 Delek US Holdings and Delek Logistics Partners, LP are traded on the New York Stock Exchange in the United States under the symbols “DK” and ”DKL” respectively, and, as such, are governed by the rules and regulations of the United States Securities and Exchange Commission. Th
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: Well Positioned Mid-Continent Refining System
WTI - Midland 84% East Texas 16% Gulf Coast 7% Inland / Local 72% Rail 21% Well Positioned Mid-Continent Refining System 4 Strategically Located Assets Provide Access to Cost-Advantaged Feedstocks Tyler Crude Source (1Q13) El Dorado Crude Source (1Q13) Permian Eagle Ford Woodford 75% of 2013 Crude S
Slide 5: Refining Segment Operational Update
Refining Segment Operational Update
Slide 6: Favorable U.S. Refining Environment Continues
($30.00) ($20.00) ($10.00) $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 J a n -1 0 F e b -1 0 M a r- 1 0 A pr -1 0 M a y -1 0 J u n -1 0 J u l- 1 0 A u g -1 0 S e p -1 0 O c t- 1 0 No v -1 0 De c -1 0 J a n -1 1 F e b -1 1 M a r- 1 1 A pr -1 1 M a y -1 1 J u n -1 1 J u l- 1 1 A u g -1 1 S e p -1 1 O c t
Slide 7: 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 7 Source: Argus; June MTD through May 8, 2013. 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13
Slide 8: 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 57% LPGs 3% Diesel / Jet 37% Other 3% WTI-Midland 84% East Texas 16% Tyler Refinery Overview 8 Inland PADD III refinery located in East Texas 60,0
Slide 9: Improved Pipeline Access at Tyler
$0 $25 $50 $75 $100 $125 $150 $175 $5 $10 $15 $20 $25 Improved Pipeline Access at Tyler Potential Annual Savings from Improved Pipeline Access (1) 9 (1) 17,000 bpd equates to 6,205,000 barrels per year for annual savings. (2) Current crude differential is based on Argus data month to date as of May
Slide 10: El Dorado Refinery Overview
We Anticipate El Dorado’s Crude Slate Will Be Weighted Toward WTI-Linked Crude in 2Q 2013 Gasoline 48% Diesel 36% Asphalt 13% Other 3% Rail 21% Gulf 7% Inland/Local 72% El Dorado Refinery Overview 10 Inland PADD III refinery located in Southern Arkansas 80,000 bpd, 9.0 complexity (configured to
Slide 11: Improved Crude Access at El Dorado
$0 $100 $200 $300 $5 $10 $15 $20 $25 Improved Crude Access at El Dorado Potential Annual Savings from Improved Pipeline Access (1) 11 (1) 25,000 bpd equates to 9,125,000 barrels per year for annual savings potential calculation. (2) Current crude differential is based on Argus data month to date as
Slide 12: Significant Organic Growth / Margin Enhancement Opportunities
Significant Organic Growth / Margin Enhancement Opportunities 12 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 13: Logistics and Retail Operational Update
Logistics and Retail Operational Update
Slide 14: Delek Logistics Partners, LP Overview
Delek Logistics Partners, LP Overview (NYSE: DKL) 14 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 crude oi
Slide 15: 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 16: Strong Retail Presence
946 990 1,039 1,082 249 264 2009 2010 2011 2012 1Q12 1Q13 $840 $897 $951 $1,011 $236 $230 2009 2010 2011 2012 1Q12 1Q13 Strong Retail Presence 16 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) Tenn
Slide 17: Financial Update
Financial Update
Slide 18: Financial Highlights
Financial Highlights $164 $151 $130 $445 $717 $131 $189 2008 2009 2010 2011 LTM 1Q13 1Q12 1Q13 Record profitability in 2011 and 2012 driven by growth in the refining segment; Strong 1Q13 performance Strong cash flow generated from operations and Delek Logistics IPO in 2012 Last 12 month Free c
Slide 19: Going Forward
Going Forward
Slide 20: Significant Organic Growth / Margin Enhancement Opportunities
Significant Organic Growth / Margin Enhancement Opportunities 20 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 21: Questions and Answers
21 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 22: Appendix Additional Data
Appendix Additional Data
Slide 23: 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 23 $56.8mm $81.0mm $132.0mm $158.2mm Source: Company filings.
Slide 24: Non-GAAP Reconciliation
Non-GAAP Reconciliation 24 Source: Company 10-K filings. ($ in millions) 2008 2009 2010 2011 2012 LTM 1Q13 1Q12 1Q13 Net cash provided by operating activities $0.0 $0.0 $0.0 $0.0 $462.9 $498.8 $45.6 $81.5 Purchase of porperty, plant and equipment 0.0 0.0 0.0 0.0 132.0 139.3 20.7 28.0 Free cash flow