Delek US Holdings Overview Mid-Continent Integrated Downstream Energy Company Crude Gathering to Retail Locations Crude Sourcing/Logistics Flexibility Pipeline Access: Midland (97,000 bpd in system) Gulf Coast and Cushing Gathered…
Proposed Alon USA Transaction On April 14, 2015, Delek entered into a definitive stock purchase agreement with Alon Israel Oil Company Ltd. (Alon Israel) to acquire approximately 33.7 million shares, or approximately 48% of the…
Refining Segment Operational Update
Increased Access to Cost Advantaged Crude Approximately 75% of crude slate consist of Midland and local crude supply Increasing Access to Cost Advantage Crude Steadily improved access to cost advantaged crude 200 (Midland/local) in…
Improved Operating Flexibility Increased ability to process light crude oil and ULSD capacity Since 2012 increased light crude processing Light Crude Processing and DHT Capacity Increased (1) capability by 27% based on 2015 target (In…
Tyler Refinery Expansion and FCC Reactor Economics Completed in March 2015; Expected annual incremental EBITDA of 75 million Based on incremental 15,000 bpd of crude Crude Slate throughput capacity 80.0 72.5k Estimated capital cost…
Refineries Serve Local Niche Markets Supports High Refining Utilization Improving Niche Markets Delek Logistics Partners terminals support refining system: Tyler refinery serves a 60 mile radius El Dorado has access to local markets,…
Affects of Declining Crude Oil Price Environment on Refining Declining crude oil price environment has ability to improve capture rate in Delek US system A 10 per barrel decline in crude oil price can increase capture rate by 0.80 per…
Operating Cost per barrel Total Refining Operating Expense Per Barrel Sold Focus on reducing costs in operations Total operating cost per barrel flat year over year in 1Q15 despite lower volumes at Tyler Lower volumes at Tyler…
Declining Capital Needs Expected after 2014 Historical and Projected Capital Spending (excluding logistics) Refining Retail Other 249.7mm 22.4 217.2mm 26.2 206.2mm 35.0 Q4, 31.2 37.9 Q3, 42.1 121.5mm 26.5 Q2, 46.0 80.1mm…
Logistics Operational Update
Strategic Partner in Delek Logistics Partners, LP (NYSE: DKL) Growing logistics assets support crude sourcing and product marketing Storage Assets Storage facilities with 8.7 million barrels of active shell capacity Pipelines…
DKL: Improving EBITDA Solid EBITDA performance since IPO in Nov. 2012; Increased from projected 48.9 million to LTM 99.7 million 120.0 EBITDA, in millions * 16.4 (13.0) 99.7 100.0 17.0 (3.7) 3.4 3.8 80.0 14.1 12.8 60.0 48.9…
DKL: Plans in Place for Future Growth New agreements effective January 1, 2015 until June 30, 2016 Paline Pipeline Increased volume and capacity usage rate from 2014 level Potential for utilization and/or capacity increase DKL…
DKL: Potential EBITDA Growth (1) Visible Pathways for Growth Provide Potential for Continued EBTIDA Increase in Coming Quarters (1) Potential EBITDA, in millions * 8x to 10x EBITDA 2.9 Target Approx. 1 8.3 Caddo Pipeline DKL…
Increased Distribution with Conservative Coverage and Leverage Distribution has been increased eight consecutive times since the IPO 0.600 Quarterly Distribution Growth to Date 0.400 0.475 0.490 0.510 0.530 0.200 0.375 0.385 0.395…
Delek Logistics GP Incentive Distribution Rights Marginal Percentage Interest in Distributions Total Quarterly Distribution Per Unit Unitholders General Partner Current Distribution Target Amount 0.530 for 1Q 2015 Minimum Quarterly…
Retail Locations Create Synergies for Product Marketing Expanding Market Footprint in Markets Capable of Being Supplied by El Dorado Markets gasoline, diesel and merchandise through a network of retail fuel and convenience stores…
Focused on Organic Growth New Builds Large Format Stores are focal point Approximately 4,800 square feet Offer customers wider product selection Prepared food service offering increases traffic Avg. approximately 4 million gallons…
Current Retail Valuation Comparison Valuations moving higher than historical 6x-8x range Enterprise Value (EV) / Frwd. EBITDA Average = 10.0x 11.8x 12.4x 8.5x 8.2x 9.3x CASY MUSA CAPL SUN CST (1) Source: Capital IQ;…
Financial Update
Solid Financial Performance & Delivering Value to Shareholders Financial Highlights Historical Contribution Margin (MM) (1)(2) At March 31, 2015 655 610 Cash of 376.4 million; Debt of 674.2 million 540 Includes 316.4 million of…
Going Forward
Alon USA Energy/Alon USA Partners Operations Delek US has definitive agreement to acquire 48% ownership in Alon USA ALJ conducts its operations through three segments: Refining Refining and Marketing: sour and heavy crude oil…
Questions and Answers Large, Complementary Logistics, Marketing and Retail Systems Strategically Positioned Strong Balance Sheet Refining Platform Significant Organic Focus on Shareholder Growth / Margin Returns…
Appendix Additional Data
Delek US Focused on Building an Integrated Business Model A core part of Delek US' strategy is to grow via prudent strategic transactions since 2001 2005 to 2007 2011 to 2012 2013 to Current 2011 Crude SALA Gathering Increased…
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