Delek Us Holdings, Inc. · NYSE:DK
Delek Us — Investor Presentation (May 2023)
19 slides from Delek Us's investor presentation, May 24, 2023
Slide 1: Investor Presentation May 2023
Investor Presentation May 2023
Slide 2: Forward Looking Statement
Delek Tech 2 Forward Looking Statement 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”,
Slide 3: Delek US Holdings: Unlocking Value for Shareholders and Unitholders
Delek Tech 3 Delek US Holdings Unlocking Value for Shareholders and Unitholders Financial Strength and Flexibility Integrated Downstream Energy Company (1) FactSet as of 5/10/2023. (2) Multiples based on sell-side research Delek US Holdings (DK) – $865.0 million of cash; $2,775.0 million long-term d
Slide 4: Integrated Company with Asset Diversity and Scale
Delek Tech 4 Integrated Company with Asset Diversity and Scale Source 207,000 bpd from Permian Basin • Growing gathering system • Wink to Webster JV Crude Oil Pipeline RIO
Slide 5: Environmental, Social, and Governance (ESG)
Environmental, Social, and Governance (ESG) Will publish 3rd annual Sustainability Report for DK in December of 2023 5(1) THE USE BY THE DELEK COMPANIES OF ANY MSCI ESG RESEARCH LLC OR ITS AFFILIATES (“MSCI”) DATA, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CO
Slide 6: Delek US Adjusted EBITDA 1Q23 vs 4Q22
$230 $91 $6 $(43) 1Q23 Adjusted EBITDA $210 $59 $1 $(1) $16 $285 4Q22 Adj. EBITDA Refining Logistics Retail Corporate 1Q23 Adj. EBITDA $— $50 $100 $150 $200 $250 $300 Delek US Adjusted EBITDA 1Q23 vs 4Q22 ($mm) 6
Slide 7: Refining
Delek Tech 7 Refining DK Refining System Tyler El Dorado Big Spring Krotz Springs PADD 3 Refining System with Crude Slate Optionality 68.0% 20.0% 8.0% 4.0% Other Local Arkansas Gulf Coast Sweet WTI 85% 15% WTI East Texas 55%30% 15% WTI Local Arkansas Other 63% 30% 7% WTI Gulf Coast Sweet Other 70% 3
Slide 8: Logistics
8 Logistics Primarily through 78.7% owned MLP, Delek Logistics Partners, LP (DKL) Expansive gathering business ~1,970 miles of pipeline ~10.8MMB active shell capacity ~200 MBPD water disposal ~88 MMCFD gas processing capacity 10 light product distribution terminals Diversifies portfolio of assets in
Slide 9: Retail
9 Retail ~80% integration with existing downstream operations offering synergies and competitive advantage Operate approximately 250 C-stores in West Texas and New Mexico Rebranding 7-Eleven stores to DK in 2023 Implement interior rebranding/ re- imaging
Slide 10: Capital Expenditures
Delek Tech 10 Capital Expenditures $ Millions 2023 Est. 1Q23 Actual Refining $ 202 $ 147 Logistics 81 36 Retail 31 3 Corporate/Other 36 6 Delek Total $ 350 $ 192 2023 Capital Expenditures Drivers 10% 68% 22% 1% 81% 18% Regulatory Sustaining Growth 1Q23
Slide 11: Long-term Capital Allocation Framework
Delek Tech 11 Long-term Capital Allocation Framework Priorities Discretionary Non-Discretionary Sustaining Capital Expense - Approximately $100-$125 million sustaining capex/yr - Between $50-$100 million per turnaround - Critical for safe and reliable operations Acquisitions Cash Returns to Sharehol
Slide 12: 2nd Quarter 2023 Outlook
Delek Tech 12 2nd Quarter 2023 Outlook $ Millions Low High Operating Expenses $195 $205 General and Administrative Expenses $70 $80 Depreciation and Amortization $80 $90 Net Interest Expense $70 $80 Barrels per day (bpd) Total Crude Throughput 290,000 300,000 Total Throughput 301,000 311,000 Total T
Slide 13: 1st Quarter Consolidated Cash Flow
*includes cash and cash equivalents $841 $395 $(222) $(149) $865 12/31/2022 Cash Balance* Operating Activities Investing Activities Financing Activities 3/31/2023 Cash Balance* $— $200 $400 $600 $800 $1,000 $1,200 $1,400 1st Quarter Consolidated Cash Flow ($mm) 13
Slide 14: Net Debt
Net Debt $ Millions March 31, 2023 December 31, 2022 Consolidated long-term debt - current portion $ 50 $ 75 Consolidated long-term debt - non-current portion 2,725 2,979 Consolidated total long-term debt 2,775 3,054 Less: Cash and cash equivalents 865 841 Consolidated net debt 1,910 2,213 Less: Del
Slide 15: 2-1-1 Crack Spread and Krotz Springs Capture Rate
2-1-1 Crack Spread and Krotz Springs Capture Rate Benchmark Update and Capture Rate Restated As Previously Reported Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021 2-1-1: $19.11 $21.53 $32.47 $15.78 $11.10 $11.11 $8.68 $7.09 KSR Capture Rate (1) 70% 66% 108% 37% 77% 65% 31% 88% Updat
Slide 16: OPEX and G&A Reclassification Adjustments
OPEX and G&A Reclassification Adjustments In the first quarter of 2023, we reassessed the classification of certain expenses and made certain reclassification adjustments to better represent the nature of those expenses. 16
Slide 17: OPEX per Barrel by Refinery
17 OPEX per Barrel by Refinery Updated for Reclassification As Reported Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021 Tyler $ 3.64 $ 6.93 $ 5.61 $ 4.30 $ 5.83 $ 3.54 $ 3.51 $ 3.59 El Dorado $ 4.72 $ 4.73 $ 4.88 $ 3.78 $ 4.13 $ 1.90 $ 5.14 $ 6.42 Big Spring $ 10.50 $ 7.19 $ 7.06 $ 5
Slide 18: Adjusted EBITDA Reconciliation
Three Months Ended March 31, Three Months Ended December 31, $ in millions (unaudited) 2023 2022 2022 Reported net income (loss) attributable to Delek $ 64.3 $ 6.6 $ (118.7) Add: Interest expense, net 76.5 38.4 62.6 Income tax expense (benefit) 15.8 3.1 (43.6) Depreciation and amortization 83.4 68.3
Slide 19: Reconciliation of Segment EBITDA to Adjusted Segment EBITDA
Delek Tech 19 Reconciliation of Segment EBITDA Attributable to Delek to Adjusted Segment EBITDA