Delek Logistics Partners, LP Investor Presentation November 2014
Investment Highlights Current Price: 40.50/unit (1) Market Capitalization: 979 million (1) Overview (NYSE: DKL) Current Distribution: 0.49/LP unit qtr.; 1.96/LP unit annualized(2) Current Yield: 4.84% 3Q14 Distributable Cash Flow…
Delek US A Growth Oriented, Financially Strong Sponsor 140,000 bpd of refining capacity in Texas and Arkansas Operational Strength Access to crude / product terminals, pipeline and storage assets 366 convenience stores(1) 1.87…
Delek Logistics Partners, LP Overview
Stable Asset Base Positioned for Growth Growing logistics assets support crude sourcing and product marketing Pipelines/Transportation Segment 400 miles of crude transportation pipelines, includes the 195 mile crude oil pipeline…
Acquisitions Provide Stable Fee Based Growth Approximately 23.5 million of annualized EBITDA (1) expected at time of purchase; focus on continued growth of assets Tyler Tank Farm Hopewell North Little Rock El Dorado Tank Mt. Pleasant…
Improving EBITDA and Financial Flexibility to Support Growth Solid EBITDA performance since IPO in Nov. 2012 100.0 89.6 3.6 80.0 in millions 86.0 60.0 63.8 40.0 47.2 48.9 20.0 0.0 2011 Pro Forma(1) Forecast 12 Months…
Increased Distribution with Conservative Coverage Distribution has been increased seven consecutive times since the IPO 0.600 Quarterly Distribution Growth to Date 0.500 0.400 0.300 0.475 0.490 0.200 0.375 0.385 0.395 0.405 0.415…
Strategy in Place to Provide Continued Growth EBITDA GROWTH STRATEGY EXPECTED BENEFIT (1) TIMING Estimated Pro forma LTM EBITDA 89.6 million Current EBITDA Performance based on Annualized 3Q14 EBITDA 84.8 million 3Q14 Identified…
Focus on Growth has Improved EBITDA Visible Pathways for Growth Provide Potential for Continued EBTIDA Increase in Coming Quarters Second quarter 2014 goal for 25 million to 35 million incremental annualized EBITDA in place 1Q2015 is…
Peer Comparison Current Annualized Current Y/Y Distr. Partnership Ticker /unit Distribution Yield Growth Phillips 66 Partners PSXP 65.57 1.267 1.9% NA MPLX MPLX 67.69 1.430 2.1% 20.4% Valero Logistics VLP 43.86 0.960 2.2% NA…
Segment Overview
Lion Pipeline System and SALA Gathering Lion Pipeline System Lion Pipeline System 70,000 65,439 Provides non-gathered crude oil to Delek US 57,442 60,000 57,254 El Dorado refinery and connects to 49,694 47,67552,301 Barrels per…
Terminalling and West Texas Wholesale Business 10 Increasing Terminal Count Terminalling Assets 9 Refined products terminalling services for Delek 8 and/or third parties. 7 Comprised of terminals located in: 6 Memphis and Nashville,…
Paline Pipeline Potential EBITDA Increase in 2015 195 mile crude oil pipeline - Mainline pipeline flows from northbound to southbound. 100% of mainline capacity contracted to major oil company through 12/31/2014 Contract revenue…
Going Forward
Several Visible Pathways for Continued Growth Ability to Grow Independently Paline Pipeline potentially repricing at a higher rate after 2014 Organic Increasing activity in Arkansas gathering system Growth Potential expansion of the…
Questions and Answers Majority of assets support Primarily Traditional, Delek US strategically stable MLP assets located inland refining system Limited commodity price Inflation-indexed fees for exposure most contracts…
Appendix
Delek US' Refineries are Strategically Positioned and Flexible Tyler Refinery (1) El Dorado Refinery (1) Inland refinery located in East Texas Inland refinery located in southern Arkansas 60,000 bpd, 9.5 complexity 80,000 bpd, 9.0…
Summary of Certain Contracts (10) Termination Provision Year Ended Dec. 31, 2013 Minimum Tariff / Fee Refinery (1) (2) Initial / Maximum Term Service Throughput (bpd) Commitment (bpd) Tariff / Fee Escalator Shutdown Force Majeure…
Summary of Certain Contracts - footnotes (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. (3) Excludes volumes…
Amended and Restated Omnibus Agreement ROFO Under the omnibus agreement, Delek Logistics has a ROFO for 10-years post IPO if Delek US decides to sell the following assets: Rail offloading racks in the El Dorado refinery. Delek…
Summary Organization Structure Delek US Holdings, Inc. Delek Logistics GP, LLC Public Unitholders NYSE: DK 96.1% (the General Partner) ownership interest (1) 48.7% interest 11.3% interest Limited partner-subordinated Limited…
Non-GAAP Reconciliation Delek Logistics Partners LP EBITDA and Contribution Margin Reconciliation Pro Forma Forecast Forecast Actual Actual Actual Actual Actual Actual Actual Actual Pro Forma 12 Months 12 Months 3 Months 3 Months 3…
Cash Available for Distribution Pro Forma Forecast Actual Actual Actual Actual Actual Actual Actual Actual 12 Months 12 Months 12 Months 3 Months 3 Months 3 Months 3 Months 3 Months 3 Months 3 Months (dollars in millions) 12/31/11…
Non-GAAP Reconciliation Delek US LTM EBITDA Reconciliation Year Ended 12/31 9 Months Ended Sept. 30, LTM 2011 2012 2013 2013 2014 9/30/14 Operating Income 286.1 473.1 237.7 225.1 299.4 312.0 Loss on Sale of Assets 3.6 (0.1) - - - -…
Investor Relations Contact: Assi Ginzburg Keith Johnson Executive Vice President, CFO Vice President of Investor Relations 615-435-1452 615-435-1366 29
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