Delek Logistics Partners, L.p. · NYSE:DKL
Delek Logistics Partners, L.p — Investor Presentation (December 2016)
27 slides from Delek Logistics Partners, L.p's investor presentation, Dec 5, 2016
Slide 1: Delek Logistics Partners, LP Investor Presentation December 2016
Delek Logistics Partners, LP Investor Presentation December 2016
Slide 2: Disclaimers
2 Disclaimers These slides and any accompanying oral and written presentations contain forward-looking statements by Delek Logistics Partners, LP (defined as “we”, “our”) that are based upon our current expectations and involve a number of risks and uncertainties. Statements concerning current estim
Slide 3: Investment Highlights
Investment Highlights (1) Based on price per common limited unit as of trading on December 1, 2016. (2) Annualized distribution based on quarterly distribution for quarter ended September 30, 2016, paid on November 14, 2016. (3) For reconciliation please refer to pages 25 and 26. (4) Annualized EBIT
Slide 4: Delek US – A Growth Oriented, Financially Strong Sponsor
Delek US – A Growth Oriented, Financially Strong Sponsor • 155,000 bpd of refining capacity in Texas and Arkansas • Access to crude / product terminals, pipeline and storage assets Operational Strength (1) As of September 30, 2016 financial statements in the Delek US 10Q filed on November 3, 2016. (
Slide 5: Delek Logistics Partners, LP Overview
Delek Logistics Partners, LP Overview
Slide 6: Stable Asset Base Positioned for Growth
Stable Asset Base Positioned for Growth 6 ~765 miles (1) of crude and product transportation pipelines, including the 195 mile crude oil pipeline from Longview to Nederland, TX ~ 600 mile crude oil gathering system in AR Storage facilities with 6.2 million barrels of active shell capacity Ra
Slide 7: Improving Performance and Financial Flexibility to Support Growth
Improving Performance and Financial Flexibility to Support Growth 7 1) Amounts provided in the Nov. 1, 2012 IPO prospectus showing pro forma results forecasted performance for 12 months ending Sept. 30, 2013. Reconciliation on pg. 26 2) Reconciliation provided on page 26. Results in 2013 and 2014 ar
Slide 8: Growth Initiatives Improved EBITDA Since 2012
Growth Initiatives Improved EBITDA Since 2012 8 1) Amounts provided in the Nov. 1, 2012 IPO prospectus showing forecasted performance for 12 months ending Sept. 30, 2013. 2) Bridge compared to the forecast provided in the prospectus based on difference in performance during the 12 months ending Sept
Slide 9: Increased Distribution with Conservative Coverage and Leverage
Increased Distribution with Conservative Coverage and Leverage 9 Distribution per unit has been increased fifteenth consecutive times since the IPO $0.375 $0.385 $0.395 $0.405 $0.415 $0.425 $0.475 $0.490 $0.510 $0.530 $0.550 $0.570 $0.590 $0.610 $0.630 $0.655 MQD (1) 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q
Slide 10: Asset Overview
Asset Overview
Slide 11: Joint Venture Pipeline Projects
Joint Venture Pipeline Projects 11 Caddo Pipeline ■ DKL (50%)/Plains (50%) ■ Est. total cost: $123 million (1) ■ Capacity: 80,000 bpd ■ Length: 80 miles ■ Expected Completion: Jan. 2017 Rio Pipeline ■ Rangeland (67%)/ DKL (33%) ■ Cost: $119 million ■ Capacity: 55,000 bpd ■ Length: 107 miles ■ Comple
Slide 12: Lion Pipeline System and SALA Gathering
Lion Pipeline System and SALA Gathering 12 SALA Gathering System • Provides access to local Arkansas, east Texas and north Louisiana crudes to Delek US’ El Dorado refinery. • 600 mile crude oil gathering system, primarily within a 60-mile radius of the El Dorado refinery. • Crude price environment p
Slide 13: Terminalling and West Texas Wholesale Business
Terminalling and West Texas Wholesale Business 13 West Texas Wholesale and Marketing • Operates in an area around the Permian Basin • Purchases refined products from third parties for resale at owned and third party terminals in west Texas. • Includes ethanol blending activity. 19 13 75 97 107 102 1
Slide 14: Paline Pipeline
Paline Pipeline 14 Approximately 195 mile crude oil pipeline - Mainline pipeline flows from north to south 10,000 bpd of mainline capacity reserved for a third party to use exclusively from July 1, 2016 to December 31, 2016 FERC tariff in place and actively marketing available capacity to pote
Slide 15: Going Forward
Going Forward
Slide 16: Several Visible Pathways for Potential Growth
Several Visible Pathways for Potential Growth 16 2017 Target Acquisitive Growth 10% minimum distribution per unit growth targeted for 2017 Driven by organic growth at DKL Contracts expiring in 2017 have been extended by Delek US for additional five year option Proven ability to make 3rd part
Slide 17: Peer Comparisons
Peer Comparisons (1) 17 Current Yield as of 12/1/16 Leverage Ratio (1) 2.6x 2.7x 3.7x 3.7x 4.1x 4.5x 4.5x 4.7x 5.1x 6.1x 6.5x - 1.0 2.0 3.0 4.0 5.0 6.0 7.0 WNRL VLP DKL MMP HEP PSXP MPLX EPD TLLP SXL PAA 10.1% 9.3% 9.1% 8.2% 7.7% 7.4% 6.8% 6.4% 6.4% 4.8% 4.7% 3.8% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0
Slide 18: Questions and Answers
18 Questions and Answers Majority of assets support Delek US‘ strategically located inland refining system Inflation-indexed fees for most contracts Majority of all margin generated by long term, fee-based contracts with volume minimums Agreements with Delek US cap maintenance capex and limit Delek
Slide 19: Appendix
Appendix 2
Slide 20: Delek US' Refineries are Strategically Positioned and Flexible
Delek US' Refineries are Strategically Positioned and Flexible 20 Inland refinery located in East Texas 75,000 bpd, 8.7 complexity Primarily processes inland light sweet crudes (100% in 2014) 94% yield of gasoline, diesel and jet fuel in 2015 El Dorado Refinery (1) Tyler Refinery (1) Inlan
Slide 21: Summary of Certain Contracts
Summary of Certain Contracts (9) 21 Initial / Maximum Term (1) Service 9 Months Ended Sept. 30, 2016 Throughput (bpd)(2) Minimum Commitment (bpd) Current Tariff / Fee Tariff / Fee Index (11) Refinery Shutdown Force Majeure July 1 to Dec. 31, 2016 N/A N/A 10 kbpd = $410,000/Month Fee (6) FERC N/A N/A
Slide 22: Summary of Certain Contracts - footnotes
Summary of Certain Contracts - footnotes 22 (1) Maximum term assumes an extension of the commercial agreement pursuant to the terms thereof. Please note some terms began as early as Nov. 7, 2012. (2) Represents average daily throughput for the period indicated. (3) Excludes volumes gathered on the S
Slide 23: Amended and Restated Omnibus Agreement Key Provisions
Amended and Restated Omnibus Agreement 23 Key Provisions Delek US will indemnify Delek Logistics for certain liabilities, including environmental and other liabilities, relating to contributed assets. Delek US has a ROFR if Delek Logistics sells any assets that serves Delek US' refineries or the
Slide 24: Summary Organization Structure
Summary Organization Structure 24 38.3% interest Limited partner-common 95.10% ownership interest (1) 2.0% interest General partner interest Incentive distribution rights Delek Logistics Partners, LP NYSE: DKL (the Partnership) 100% ownership interest Public Unitholders Operating Subsidiaries 59.7%
Slide 25: Income Statement and Non-GAAP EBITDA Reconciliation
Income Statement and Non-GAAP EBITDA Reconciliation 25 (1) Includes approximately $2.0 million of estimated annual incremental general and administrative expenses expected to incur as a result of being a separate publicly traded partnership. (2) Interest expense and cash interest both include commit
Slide 26: Reconciliation of Cash Available for Distribution
Reconciliation of Cash Available for Distribution 26 (1) Distribution for forecast period based on $1.50 per unit; Distribution for year ended December 31, 2013, 2014, 2015 and year to date 2016 based on actual amounts distributed during the periods; does not include a LTIP accrual. Coverage is defi
Slide 27: Investor Relations Contact
27 Investor Relations Contact: Assi Ginzburg Keith Johnson Executive Vice President, CFO Vice President of Investor Relations 615-435-1452 615-435-1366
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