Delek Logistics Partners, L.p. · NYSE:DKL

Delek Logistics Partners, L.p — Investor Presentation (December 2012)

30 slides from Delek Logistics Partners, L.p's investor presentation, Dec 4, 2012

  1. Slide 1: Delek Logistics Partners, LP Investor Presentation December 2012

    Delek Logistics Partners, LP Investor Presentation December 2012

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements 2 These slides and the accompanying oral presentation 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 est

  3. Slide 3: Delek Logistics Partners, LP Overview

    Delek Logistics Partners, LP Overview: Ticker: DKL Exchange: NYSE IPO Date: November 2, 2012 Sponsor: Delek US Holdings, Inc. (NYSE: DK) IPO Price: $21.00 IPO Yield:(2) 7.1% Current Price: (1) $22.45 Forecast Distribution(2) (next 12 months) $1.50/unit Market Capitalization:(1) $539 million Ownershi

  4. Slide 4: Delek Logistics: A Compelling Investment Opportunity

    Delek Logistics: A Compelling Investment Opportunity 4  6.50% yield (1)  Existing pipeline of potential drop- down acquisitions  Organic growth opportunities in strategically compelling region  Delek US had a 43% EBITDA(2) CAGR since 2002 and 30% equity book value per share CAGR  Completed nine

  5. Slide 5: Growth Oriented, Financially Strong Sponsor

    Growth Oriented, Financially Strong Sponsor • 140,000 bpd of refining capacity in Texas and Arkansas • Related crude / product terminals, pipeline and storage assets • 372 convenience stores(1) Operational Strength 5 (1) As of Sept. 30, 2012. (2) As of November 30, 2012. (3) Pro forma for IPO of Del

  6. Slide 6: Track Record of Profitable Growth Through Acquisitions

    Track Record of Profitable Growth Through Acquisitions 6 2005 2006 2007 2008 2009 2010 2011 2012 April 2005  Tyler refinery and related assets  $68.1 million(1) August 2006  Abilene and San Angelo terminals  $55.1 million July 2006  43 retail fuel and convenience stores  $50.0 million April 20

  7. Slide 7: Delek Logistics Partners, LP Overview

    Delek Logistics Partners, LP Overview

  8. Slide 8: Stable, Fee-Based Cash Flows

    8 Stable, Fee-Based Cash Flows Assets support Delek US' highly profitable and strategically located inland refining system Inflation-indexed fees for most contracts Substantially all margin generated by long term, fee-based contracts with volume minimums Agreements with Delek US cap maintenance cape

  9. Slide 9: Stable Initial Assets Position Us for Growth

    Stable Initial Assets Position Us for Growth 9 Pipeline/Transportation  Approximately 400 miles of crude and product transportation pipelines  600 mile crude oil gathering system  Associated storage facilities with 1.4 million barrels of active shell capacity Wholesale/Terminalling  Wholesale ma

  10. Slide 10: Lion Oil Pipelines and SALA Gathering

    Lion Oil Pipelines and SALA Gathering 10 • El Dorado and Magnolia systems -106 mile of pipelines • Connects refinery to Enterprise TE Products Pipeline • ~135,000 bbls of shell storage(1) • Improved access to Mid Valley in the first half 2013 • Ability to handle El Dorado refinery expansion Lion Oil

  11. Slide 11: Paline Pipeline

    Paline Pipeline 11 (1) Fee can be pro-rated upwards if volume exceeds 30,000 bpd (2) Forecast for twelve month period ending 9/30/2013 as provided in the Nov. 1, 2012 prospectus  185 mile crude oil pipeline - Mainline pipeline flow reversed from northbound to southbound.  100% of mainline capacity

  12. Slide 12: East Texas Logistics System Provides Flexibility to Tyler Refinery

    East Texas Logistics System 12 Provides Flexibility to Tyler Refinery • 101 mile pipeline system that connects Tyler to Longview, TX • Connects to West Texas Gulf pipeline • Potential reversing of Nettleton pipeline • 780,000 bbls (1) of storage capacity allows blending • Two owned and operated crud

  13. Slide 13: Texas Marketing

    Texas Marketing 13 West Texas Wholesale Marketing • Purchases refined products from third parties for resale at owned and third party terminals in West Texas • Stable growing margin • Growing volumes; increased 20% since 2009 • Operates in a growing area around the Permian Basin (1) Forecast for twe

  14. Slide 14: Terminals

    Terminals 14 • Serves Delek’s retail segment and independent third parties Nashville, TN • Refined products terminalling services for Delek and/or third parties • Three terminals with 412,731 bbls of shell capacity (1) • Terminal fee of $0.50/bbl (Memphis and Big Sandy) (1) The Big Sandy terminal (1

  15. Slide 15: Delek Logistics Strategy

    Delek Logistics Strategy 15 Generate Consistent Growth Generate Stable Cash Flow Pursue Organic Expansion Optimize Existing Assets Pursue Accretive Acquisitions

  16. Slide 16: Several Visible Pathways to Growth

    Several Visible Pathways to Growth 16 Dropdowns from Delek US Organic Growth Acquisitive Growth  ROFO on the following Delek US assets:  Two terminals and four millions barrels of storage capacity  Other logistics assets currently under construction by Delek US:  300,000 bbl Tyler crude oil tank

  17. Slide 17: Financial Overview

    Financial Overview

  18. Slide 18: Financial Strategy Provides Flexibility for Growth

    Financial Strategy Provides Flexibility for Growth 18 Maintain Stable Cash Flows  Continue to seek fee-based revenues  Focus on long-term contracts with minimum volume commitments  Limit commodity price exposure Conservative Financial Policies  $175 million revolver, expandable to $225 million 

  19. Slide 19: Forecasted Cash Available for Distribution

    Forecasted Cash Available for Distribution 19 (dollars in millions) Twelve Months ending September 30, 2013 (3) (1) Non-GAAP measure. See pg. 29 for the reconciliation to GAAP. (2) Total includes distributions to common, subordinated, general partner and phantom unit holders and is based on an annua

  20. Slide 20: Operations are 88% Fee-Based and Crucial to Delek US

    Operations are 88% Fee-Based and Crucial to Delek US 20 (dollars in millions) Twelve Months ending September 30, 2013 Contribution Margin (4) (1) Includes de minimus SALA contribution margin from Martin Operating Partnership, LP(“MOP”). For the year ended 12/31/11 throughput revenues from MOP were $

  21. Slide 21: Diversified and Highly Contracted Asset Base

    Diversified and Highly Contracted Asset Base 21 (dollars in millions) Twelve Months ending September 30, 2013 (3) (1) DKL has contracted 100% of the southbound capacity of the Paline pipeline to a major oil company for a monthly fee with no related minimum volumes. (2) Minimum volume as a percent of

  22. Slide 22: Questions & Answers

    Questions & Answers

  23. Slide 23: Appendix

    Appendix

  24. Slide 24: Delek US' Refineries are Strategically Positioned and Flexible

    Delek US' Refineries are Strategically Positioned and Flexible 24  Inland refinery located in East Texas  60,000 bpd, 9.5 complexity  Primarily processes inland light sweet crudes (97% in 2011)  92% yield of gasoline, diesel and jet fuel in 2011 El Dorado Refinery Tyler Refinery  Inland refiner

  25. Slide 25: Summary of Certain Contracts

    Summary of Certain Contracts 10 25 (1) Maximum term gives effect to the extension of the commercial agreement pursuant to the terms thereof. (2) Represents average daily throughput for the period indicated, excluding jet fuel and petroleum coke in the East Texas marketing operations. (3) Excludes vo

  26. Slide 26: Omnibus Agreement

    Omnibus Agreement 26  Under the omnibus agreement, Delek Logistics has a ROFO for 10-years post IPO if Delek US decides to sell the following assets:  Tyler refinery refined products terminal  Tyler storage tanks  El Dorado refined products terminal  El Dorado storage tanks  Additionally, Dele

  27. Slide 27: Summary Organization Structure

    Summary Organization Structure 27 37.6% common limited partner interest 100% ownership interest 2.0% general partner interest Incentive distribution rights Delek Logistics Partners, LP NYSE: DKL (the Partnership) 100% ownership interest Public Unitholders Operating Subsidiaries 11.4% common limited

  28. Slide 28: Non-GAAP Reconciliation

    Non-GAAP Reconciliation 28 Delek US EBITDA Reconciliation Year Ending 12/31 2002 2011 Operating Income $7.6 $286.1 Loss on sale of Assets 0.0 3.6 Impairment of Goodwill 0.0 2.2 Depreciation and Amortization 7.4 74.1 EBITDA $15.0 $366.0 Year Ended 12/31 LTM 2011 9/30/2011 9/30/2012 9/30/2012 Operatin

  29. Slide 29: Non-GAAP Reconciliation (Cont'd)

    Non-GAAP Reconciliation (Cont’d) 29 (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 commitment fees and inter

  30. Slide 30: Investor Relations Contact

    30 Investor Relations Contact: Assi Ginzburg Keith Johnson Executive Vice President Vice President of Investor Relations 615-224-1158 615-435-1366

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