Delek Us Holdings, Inc. · NYSE:DK
Delek Us — Investor Presentation (February 2011)
19 slides from Delek Us's investor presentation, Feb 23, 2011
Slide 1: Investor Presentation February 2011
Investor Presentation February 2011
Slide 2: Business Overview: Refining. Marketing. Retail.
Business Overview Refining. Marketing. Retail.
Slide 3: Diversified Downstream Energy Company
Diversified Downstream Energy Company Breadth of Exposure Across Refining, Wholesale Marketing and Retail Distribution Inland, moderate complexity Gulf Coast refinery - production capacity of 60,000 BPD Refining Segment ) Owned product terminals and pipeline assets in West Texas Marketing Segment Op
Slide 4: Refining Segment Operational Update
Refining Segment Operational Update
Slide 5: Refining Segment Operational Update
Refining Segment | Operational Update Elevated benchmark 5-3-2 Gulf Coast crack spread supported by strong distillate economics early in 2011 5 Strong Gulf Coast Refining Economics Entering 2011 Spreads between WTI and LLS/Brent/Mars have widened substantially during the first quarter 2011 Access To
Slide 6: Tyler Refinery Is A Niche, Inland Asset
Tyler Refinery Is A Niche, Inland Asset Tyler Refinery 60,000 barrels per day Niche, Inland Refiner In PADD III ) 9.4 complexity; equipped with a delayed coking unit High Conversion, Moderate Complexity Process local crudes such as West Texas Intermediate and East Texas Crude Processes Mostly Light
Slide 7: WTI Priced At A Discount To Competing Crudes
WTI Priced At A Discount To Competing Crudes The cost to purchase WTI is significantly below that of competing crudes Substantial widening of crude differentials ) Cheaper crude lowers the cost of production, benefiting refining margin Wider differentials benefit refiners processing WTI 7 (CHART) WT
Slide 8: WTI Contango Market Structure Favors Tyler
WTI Contango Market Structure Favors Tyler WTI Contango Benefit Effectively Reduces Tyler's Cost of Crude Oil Tyler historically has purchased mostly WTI - an inexpensive local crude Purchase Light, Sweet, Domestic Crudes ) Serves as a reduction to our cost of goods; additive to refining margin Cont
Slide 9: Crude Inventories At Cushing Remain Elevated
Crude Inventories At Cushing Remain Elevated 9 (CHART) Operable Crude Oil Storage Capacity at Cushing, OK Has Risen In Recent Months(1) Source: EIA; assumes estimated operable storage capacity of 44 mil barrels
Slide 10: 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 Benefit = Benchmark "Theoretical" Benchmark For Tyler 10 High-Sulfur Diesel 5-3-2 Gulf Coast Crack Spread, Including Contango Benefit *Source: WTI Backwardation/Co
Slide 11: Refining Benchmark Well Above Historical Levels
Refining Benchmark Well Above Historical Levels 11 Gulf Coast 5-3-2 Crack Spread/bbl Reached Multi-Year High During January and February 2011(1) (1) Source: Platts; February 2011 data is thru February 21, 2011 Elevated Gulf Coast 5-3-2 Crack Spread In January and February Strong Refining Economics E
Slide 12: Expected Decline in Capital Spending At Tyler
Expected Decline in Capital Spending At Tyler Tyler Capital Spending Forecast To Decline To Multi-Year Low In 2011 Invested more than $400 million in CAPEX at Tyler (2006-2010) Regulatory Spending Largely Complete ) Refining segment historically 65-90% of total annual Delek US CAPEX Net-Positive For
Slide 13: Retail Segment Operational Update
Retail Segment Operational Update
Slide 14: Retail Segment Operational Update
Retail Segment | Operational Update Same-store merchandise sales benefit from new product offerings and food service 14 Recovery In Same-Store Merchandise Sales Recovery in Vehicle Miles Traveled; no major supply disruptions; more affordable fuel at the pump Lower Fuel Prices Helped Fuel Demand Addi
Slide 15: Cyclical Recovery In Same-Store Sales
Cyclical Recovery In Same-Store 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 15 Same-Store Merchandise Sale
Slide 16: Store Reimaging & New Construction Initiatives
Store Reimaging & New Construction Initiatives Elevate MAPCO Brand Through Store Remodeling and New Construction ) Construct 10-20 new stores per annum in the 2011-2015 timeframe(1) Five-Year New Store Construction Plan 16 Multi-Year Remodeling & Construction Initiative Comments as indicated on the
Slide 17: Marketing Segment Operational Update
Marketing Segment Operational Update
Slide 18: Marketing Segment Operational Update
Marketing Segment | Operational Update Wholesale Marketing In West Texas Owned (San Angelo, Abilene, Tyler); Third-Party (Aledo, Odessa, Big Spring, Frost) Product Marketing Terminals ) Owned and leased pipelines transport crude to Tyler refinery Supply Synergies With Tyler 18 Total Sales Volumes (B
Slide 19: Marketing Segment Operational Update
Delek fo) Marketing Segment | Operational Update Wholesale Marketing In West Texas Product Marketing Terminals ‘Owned (San Angelo, Abilene, Tyler); Third-Party (Aledo, Odessa, Big Spring, Frost) ‘Supply Synergies With Tyler ‘Owned and leased pipelines transport crude to Tyler refinery Consistent Con
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