Slide 1: Investor Presentation
Investor Presentation Delel<« fusy
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: Integrated Downstream Energy Company
Integrated Downstream Energy Company(1) Breadth of Exposure Across Refining, Wholesale Marketing and Retail Distribution Operates 140,000 BPD of refined production capacity in Texas and Arkansas Refining Segment ) Owned product terminals and pipeline assets in Texas, Arkansas and Tennessee Marketing
Slide 4: Strong Financial Performance During 2011
Strong Financial Performance During 2011 4 Significant Growth In Contribution Margin(1) Increased Cash Generation Benefits Liquidity(2) (CHART) Segment contribution margin = net sales less cost of sales and operating expenses, excluding depreciation and amortization. Periods are for the six months e
Slide 5: Financial Snapshot | Second Quarter 2011
Financial Snapshot | Second Quarter 2011 5 Financial Snapshot Second Quarter 2010 Second Quarter 2011 Total Contribution Margin ($MM) $63.8 $132.6 Refining Contribution Margin ($MM) $38.7 $110.4 Net Income ($MM) $15.0 $54.9 Cash Position ($MM) $72.9 $148.2 Shareholders Equity ($MM) $529.3 $582.9 (CH
Slide 6: Lion Oil Transaction
Lion Oil Transaction Executive Summary
Slide 7: Transaction Summary
Transaction Summary Asset Overview Purchase Summary 80,000 BPD refinery in El Dorado, Arkansas 80-mile Magnolia-El Dorado crude oil system (Shreveport, LA to Magnolia terminal) 28-mile El Dorado crude oil system (Magnolia terminal to El Dorado refinery) Crude oil gathering system with more than 600
Slide 8: Lion Oil Ownership History
Lion Oil Ownership History Timeline Inception of Lion Oil Ergon, Inc. and other investors assume ownership Delek US acquires 28.4% interest from a single shareholder Delek US acquires an additional 6.2% interest Delek US agrees to acquire an additional 53.7% controlling interest; ownership expected
Slide 9: Key Strategic Opportunities
Key Strategic Opportunities 9 Optimize Crude Slate Increased access to wide range of domestic, offshore & foreign crude oils Adding capability to process medium sour crudes Access to crudes priced on both a WTI and Brent-basis Enhance Production Capabilities More than doubles production capacity abo
Slide 10: Light Product Marketing Throughout the Mid-Continent
Light Product Marketing Throughout the Mid-Continent 10 Access To The Enterprise Products Pipeline(1) Integration Opportunity Expands marketing opportunity into the Mid-Continent El Dorado expected to supply MAPCO store locations in Tennessee and Arkansas Tyler and El Dorado Expected To Ship Product
Slide 11: Refining Segment Operational Update
Refining Segment Operational Update
Slide 12: Refining Segment Update | Second Quarter 2011
Refining Segment Update | Second Quarter 2011 2Q:11: 532 GC crack spread was more than $23/bbl 3Q:11 (to-date): 532 GC crack spread is more than $30/bbl(1) 12 Improved Gulf Coast refining economics Refining contribution margin increased 185% y/y to $110.4 mm Highest refining contribution margin in C
Slide 13: Contango Benefits The Theoretical Benchmark
Contango Benefits The "Theoretical" Benchmark Building a Theoretical Benchmark High-Sulfur Diesel 5-3-2 Gulf Coast Crack Spread + Contango = Theoretical Margin "Theoretical" Benchmark For Tyler 13 High-Sulfur Diesel 5-3-2 Gulf Coast Crack Spread, Including Contango Benefit* *Source: WTI Backwardatio
Slide 14: Refining Benchmark Well Above Historical Levels
Refining Benchmark Well Above Historical Levels 14 Crack Spread (per bbl) Reached Multi-Year High During July 2011(1) (1) Source: Platts; references the High Sulfur Diesel 532 Gulf Coast Crack Spread July 2011 532 Gulf Coast crack spread is above the first & second quarters 2011 Strong Benchmark Dur
Slide 15: WTI Priced At A Discount To Competing Crudes
WTI Priced At A Discount To Competing Crudes Current cost to purchase WTI is significantly below competing crudes Substantial widening of crude differentials ) Cheaper crude lowers the cost of production, benefiting refining margin Wider differentials benefit refiners processing WTI 15 WTI Is More T
Slide 16: Tyler, Texas Refinery Update
Tyler, Texas Refinery Update Overview 60,000 barrels per day located in East Texas Niche, Inland Refiner In PADD III ) 9.4 complexity; equipped with a delayed coking unit High Conversion, Moderate Complexity Primarily local domestic crudes such as WTI and East Texas Crude Processes Mostly Light Swee
Slide 17: Tyler Refinery Had A Strong Second Quarter 2011
Tyler Refinery Had A Strong Second Quarter 2011 17 Tyler Refinery - Contribution Margin(1) Tyler Refinery - Total Sales Volumes (BPD) (CHART) $82.9 mm $51.8 mm $91.0 mm $73.6 mm (CHART)
Slide 18: El Dorado, Arkansas Refinery Update
El Dorado, Arkansas Refinery Update Overview 80,000 BPD, 9.0 complexity refinery located in Southern Arkansas Inland refinery in PADD III ) Crude slate transitioning from Brent-based to WTI-based crudes Process Local, Offshore, Foreign Crudes Historically, ~80% of production is gasoline and distilla
Slide 19: Supplying More Discounted Crude to El Dorado
Supplying More Discounted Crude to El Dorado 19 Louisiana Offshore crude oil includes: Eugene Island, Louisiana Light Sweet, Mars, North Louisiana Sweet, Poseidon and Thunder Horse Blend Other crude oils includes: Yoho condensate, Basrah Light and Appalachian Light Sweet As indicated on the second q
Slide 20: Transaction Expected To Diversify Delek US' Crude Slate
Transaction Expected To Diversify Delek US' Crude Slate 20 Balanced Exposure - Less Dependence on Light, Sweet Crude Pricing Essentially 50/50 (Sour-intermediate vs. Light) Crude Slate Becomes More Balanced Crude Slate Transition - Pre/Post Transaction Tyler Refinery El Dorado Refinery Pro-Forma (Co
Slide 21: Retail Segment Operational Update
Retail Segment Operational Update
Slide 22: Retail Segment Update | Second Quarter 2011
Retail Segment Update | Second Quarter 2011 Same-store merchandise benefitting from new product offerings and food service 22 Eight Consecutive Quarters of Same-Store Merchandise Sales Growth(1) Saw some demand degradation due to higher retail fuel prices Higher Retail Fuel Prices Impacted Fuel Dema
Slide 23: Recovery In Same-Store Merchandise Sales
Recovery In Same-Store Merchandise Sales Key Factors Affecting Same-Store Sales Relevant Factors: Location, size, appeal, offering, affordability, people Same-Store Merchandise Sales ) Relevant Factors: Commodity prices, weather, supply disruptions Same-Store Gallons Sold 23 Same-Store Merchandise S
Slide 24: Private Label Initiative Making Progress
Private Label Initiative Making Progress Private Label - A Value Offering That Generates Above Average Margins Higher margin, lower-cost option for consumers Quality, Affordable Replacement Option ) Private label is an effective way of offering value to time-starved consumers Countermeasure To Chann
Slide 25: Store Reimaging & New Construction Initiatives
Store Reimaging & New Construction Initiatives Elevate MAPCO Brand Through Store Remodeling and New Construction More than 40% of store base was reimaged or newly constructed as of 6/30/11 Multi-Year Store Enhancement Initiative ) Constructing 5-10 locations in 2011; LT target of 10-20 new builds pe
Slide 26: Favorable Impact From Store Reimaging
Favorable Impact From Store Reimaging Strong Economic Case Favoring Store Reimaging Investment Reshaping the retail brand identity to attract a broader demographic Newer, Cleaner Stores Draw Customers ) Atmosphere matters, especially when you are selling food and produce More Conducive To Fresh Offe
Slide 27: Marketing Segment Operational Update
Marketing Segment Operational Update
Slide 28: Marketing Segment | Operational Update
Marketing Segment | Operational Update Wholesale Marketing In West Texas Owned (San Angelo, Abilene, Tyler); Third-Party (Aledo, Odessa, Big Springs, Frost) Product Marketing Terminals ) Owned and leased pipelines transport crude to Tyler refinery Supply Synergies With Tyler 28 ) Annual CAPEX less t
Slide 29: Appendix: Additional Data
Delel« tus} Appendix Additional Data
Slide 30: Historical and Projected Capital Spending
Historical and Projected Capital Spending(1) 30 2011 estimates as indicated in the 10-Q dated August 5 2011 excludes any impact from the Lion Oil Transaction; 2010 spending includes $0.1 million of "other" capital spending ; 2011 estimate includes $0.5 million of "other" capital spending. (CHART)
Slide 31: Major Capital Projects Have Been Completed
Major Capital Projects Have Been Completed 31 (1) Refining segment capital spending data for the Tyler refinery as indicated in the form 10-Q filed with the SEC on August 5, 2011 *Includes refining segment only; 2009 capital spending includes cost to rebuild saturated gas plant Historical/Projected
Slide 32: El Dorado Unit Capacities
El Dorado Unit Capacities 32 Unit Description Present Capacity (BPD)(1) (1) Per the Lion Oil transaction announcement conference call held on March 21, 2011. In 2009, Lion Oil estimated that approximately $150 million in capital spending would be required to take advantage of the 100,000 barrel a da
Slide 33: NYSE: DK
DK NYSE