Delek Us Holdings, Inc. · NYSE:DK
Delek Us — Investor Presentation (June 2024)
20 slides from Delek Us's investor presentation, Jun 4, 2024
Slide 1: Investor Presentation June 2024
Investor Presentation JUNE 2024
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) Bloomberg- 3/31/2024 - 13F and Pricing Information (2) Multiples based on sell-side research (Wells Fargo, TPH, Scotiabank, Raymond James, Piper
Slide 4: Well prepared for mid-cycle market environment
Well prepared for mid-cycle market environment Strategic Objectives 2024 Priorities Run safely, reliably and in an environmentally responsible manner Complete successful turnaround of Krotz Springs Refinery Streamline structures and processes Execute a prudent and disciplined capital allocation appr
Slide 5: Integrated Company with Asset Diversity and Scale
Delek Tech 5 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 6: Financial Summary
Financial Summary Financial Highlights $ in millions (except per share) 1Q23 4Q23 1Q24 Net Income (Loss) $64.3 $(164.9) $(32.6) Adjusted Net Income (Loss) $92.7 $(93.2) $(26.2) Adjusted Net Income (Loss) per share $1.37 $(1.46) $(0.41) Adjusted EBITDA $284.6 $60.6 $158.7 Cash from Operations $395.1
Slide 7: 2024 Consolidated Cash Flow
2024 Consolidated Cash Flow ($MM's) *includes cash and cash equivalents $822.2 $166.7 $(41.6) $(193.9) $753.4 12/31/2024 Cash Balance* Operating Activities Investing Activities Financing Activities 3/31/2024 Cash Balance* 7
Slide 8: Capital Program 1Q24 Actual & 2024 Forecast
Capital Program 1Q24 Actual & 2024 Forecast $'s in Millions 1Q24 2024 Forecast ($ millions) Total Total Refining $ 22 $ 220 Logistics (Delek Logistics Partners) 15 70 Retail 4 15 Corporate & Other 5 25 Capital expenditures $ 46 $ 330 1Q24 77% 23% Regulatory & Sustaining Growth 2024 Forecast 65% 35%
Slide 9: Net Debt
Net Debt $'s in Millions Mar 31, 2024 Dec 31, 2023 Consolidated long-term debt - current portion $ 14.5 $ 44.5 Consolidated long-term debt - non-current portion 2,482.4 2,555.3 Consolidated total long-term debt $ 2,496.9 $ 2,599.8 Less: Cash and cash equivalents 753.4 822.2 Consolidated net debt $ 1
Slide 10: Refining: DK Refining System
Delek Tech 10 Refining DK Refining System Tyler El Dorado Big Spring Krotz Springs PADD 3 Refining System with Crude Slate Optionality Crude Slate % *as of March 31, 2024 71.4% 6.2% 3.4% 19.0% WTI Crude Oil Gulf Coast Sweet Crude Local Arkansas Crude Oil Other 82.6% 17.4% WTI Crude Oil East Texas Cr
Slide 11: Refining Improvement Plan
Inconsistent operational reliability Commercial optimization realized Refining Improvement Plan Path to refinery optimization O pe ra ti on al E xc el le nc e Commercial Optimization El Dorado TylerKrotz Springs Big Spring Tyler Refinery Commercially optimized with reliable operations El Dorado Refi
Slide 12: Logistics: Delek Logistics Segments
Gathering & Processing Marketing & Terminalling Storage & Transportation Pipeline Joint Ventures Includes pipelines, trucks, and ancillary assets that provide crude oil gathering, refined products transportation and storage services Midland and Delaware gathering assets ~2,204 miles of pipeline & ga
Slide 13: Retail
13 Retail ~80% integration with existing downstream operations offering synergies and competitive advantage Operate 250 C-stores in West Texas and New Mexico 162 thousand of gallons in fuel sales (per site) per quarter Implement interior rebranding/ re-imaging
Slide 14: Environmental, Social, and Governance (ESG)
Environmental, Social, and Governance (ESG) 14
Slide 15: Adjusted EBITDA 4Q23 vs 1Q24
Adjusted EBITDA 4Q23 vs 1Q24 ($MM's) 1Q24 Adjusted EBITDA Results by Segment Refining Logistics Retail Corporate $106.1 $99.7 $6.5 $(53.6) $60.6 $116.5 $0.3 $(2.8) $(15.9) $158.7 4Q23 Refining Logistics Retail Corporate 1Q24 15
Slide 16: Guidance 2nd Quarter 2024
Guidance 2nd Quarter 2024 $'s in Millions Low High Operating Expenses $215 $225 General and Administrative Expenses $60 $65 Depreciation and Amortization $90 $95 Net Interest Expense $80 $90 Barrels per day (bpd) Low High Total Crude Throughput 287,000 300,000 Total Throughput 299,000 312,000 Total
Slide 17: Reconciliation of GAAP Net Income (Loss) to Adjusted Net Income (Loss)
Reconciliation of U.S. GAAP Net Income (Loss) to Adjusted Net Income (Loss) Three Months Ended March 31, Three Months Ended December 31, $ in millions (unaudited) 2024 2023 2023 Reported net (loss) income attributable to Delek US $ (32.6) $ 64.3 $ (164.9) Adjusting items (1) Inventory LCM valuation
Slide 18: Reconciliation of Net Income (Loss) per share to Adjusted
Reconciliation of U.S. GAAP Net Income (Loss) per share to Adjusted Net Income (Loss) Per Share Three Months Ended March 31, Three Months Ended December 31, $ per share (unaudited) 2024 2023 2023 Reported diluted (loss) income per share $ (0.51) $ 0.95 $ (2.57) Adjusting items, after tax (per share)
Slide 19: Reconciliation of Net Income (Loss) to Adjusted EBITDA
Reconciliation of Net (Loss) Income attributable to Delek US to Adjusted EBITDA Three Months Ended March 31, Three Months Ended December 31, $ in millions (unaudited) 2024 2023 2023 Reported net (loss) income attributable to Delek US $ (32.6) $ 64.3 $ (164.9) Add: Interest expense, net 87.7 76.5 79.
Slide 20: Reconciliation of Segment EBITDA to Adjusted Segment EBITDA
Reconciliation of Segment EBITDA Attributable to Delek US to Adjusted Segment EBITDA (1) See further discussion in the "Significant Transactions During the Quarter Impacting Results" section in 1Q24 Earnings Release. (2) Starting with the quarter ended September 30, 2023, we updated our other invent
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