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JULY 2015 INVESTOR PRESENTATION – Delek Us Holdings

Delek Us Holdings · Jun 30, 2015 · 35 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. JULY 2015 INVESTOR PRESENTATION – Delek Us Holdings – slide 1
    Delek US Holdings Investor Presentation July 2015
  2. JULY 2015 INVESTOR PRESENTATION – Delek Us Holdings – slide 2
    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…
  3. JULY 2015 INVESTOR PRESENTATION – Delek Us Holdings – slide 3
    Alon USA Transaction On May 14, 2015, Delek completed the acquisition of approximately 33.7 million shares, or approximately 48% of the outstanding shares, of Alon USA Energy (NYSE: ALJ) (Alon USA) common stock from Alon Israel Oil…
  4. JULY 2015 INVESTOR PRESENTATION – Delek Us Holdings – slide 4
    Refining Segment Operational Update
  5. JULY 2015 INVESTOR PRESENTATION – Delek Us Holdings – slide 5
    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…
  6. JULY 2015 INVESTOR PRESENTATION – Delek Us Holdings – slide 6
    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…
  7. JULY 2015 INVESTOR PRESENTATION – Delek Us Holdings – slide 7
    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…
  8. JULY 2015 INVESTOR PRESENTATION – Delek Us Holdings – slide 8
    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,…
  9. JULY 2015 INVESTOR PRESENTATION – Delek Us Holdings – slide 9
    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…
  10. JULY 2015 INVESTOR PRESENTATION – Delek Us Holdings – slide 10
    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…
  11. JULY 2015 INVESTOR PRESENTATION – Delek Us Holdings – slide 11
    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…
  12. JULY 2015 INVESTOR PRESENTATION – Delek Us Holdings – slide 12
    Logistics Operational Update
  13. JULY 2015 INVESTOR PRESENTATION – Delek Us Holdings – slide 13
    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…
  14. JULY 2015 INVESTOR PRESENTATION – Delek Us Holdings – slide 14
    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…
  15. JULY 2015 INVESTOR PRESENTATION – Delek Us Holdings – slide 15
    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…
  16. JULY 2015 INVESTOR PRESENTATION – Delek Us Holdings – slide 16
    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…
  17. JULY 2015 INVESTOR PRESENTATION – Delek Us Holdings – slide 17
    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…
  18. JULY 2015 INVESTOR PRESENTATION – Delek Us Holdings – slide 18
    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…
  19. JULY 2015 INVESTOR PRESENTATION – Delek Us Holdings – slide 19
    DKL: Peer Comparisons (1) Current Yield as of 6/26/15 7.5% 5.5% 3.5% 6.2% 6.1% 5.7% 5.0% 4.6% 4.6% 4.6% 4.4% 1.5% 3.8% 2.2% 2.1% 2.1% -0.5% PAA HEP PBFX EPD TLLP WNRL DKL SXL MMP MPLX VLP PSXP Distributable Cash Flow Coverage…
  20. JULY 2015 INVESTOR PRESENTATION – Delek Us Holdings – slide 20
    Retail Operational Update
  21. JULY 2015 INVESTOR PRESENTATION – Delek Us Holdings – slide 21
    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…
  22. JULY 2015 INVESTOR PRESENTATION – Delek Us Holdings – slide 22
    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…
  23. JULY 2015 INVESTOR PRESENTATION – Delek Us Holdings – slide 23
    Current Retail Valuation Comparison Valuations moving higher than historical 6x-8x range Enterprise Value (EV) / Frwd. EBITDA Average = 10.3x 14.1x 12.9x 8.9x 7.8x 7.7x CASY CAPL CST MUSA SUN (1) Source: Capital IQ;…
  24. JULY 2015 INVESTOR PRESENTATION – Delek Us Holdings – slide 24
    Financial Update
  25. JULY 2015 INVESTOR PRESENTATION – Delek Us Holdings – slide 25
    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…
  26. JULY 2015 INVESTOR PRESENTATION – Delek Us Holdings – slide 26
    Going Forward
  27. JULY 2015 INVESTOR PRESENTATION – Delek Us Holdings – slide 27
    Alon USA Energy/Alon USA Partners Operations Delek US acquired 48% ownership in Alon USA ALJ conducts its operations through three segments: Refining Refining and Marketing: sour and heavy crude oil Richmond Richmond Richmond Beach…
  28. JULY 2015 INVESTOR PRESENTATION – Delek Us Holdings – slide 28
    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…
  29. JULY 2015 INVESTOR PRESENTATION – Delek Us Holdings – slide 29
    Appendix Additional Data
  30. JULY 2015 INVESTOR PRESENTATION – Delek Us Holdings – slide 30
    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…
  31. JULY 2015 INVESTOR PRESENTATION – Delek Us Holdings – slide 31
    Historical and Projected Capital Spending Refining Logistics (Marketing) Retail Other 256.9mm 22.4 222.3mm 225.9mm 26.2 15.0 35.0 7.2 18.1 19.7 37.9 132.0mm 5.1 26.5 81.0mm 201.1 56.8mm 29.1 173.1 7.6 144.3 10.5 0.1…
  32. JULY 2015 INVESTOR PRESENTATION – Delek Us Holdings – slide 32
    U.S. Refining Environment Trends Refined Product Margins and WTI-Linked Feedstock Favor Delek US (1) (2) (2) Brent-WTI Cushing Spread Per Barrel WTI 5-3-2 Gulf Coast Crack Spread Per Barrel LLS 5-3-2 Gulf Coast Crack Spread Per…
  33. JULY 2015 INVESTOR PRESENTATION – Delek Us Holdings – slide 33
    0.00 (14.00) (12.00) (10.00) (8.00) (6.00) (4.00) (2.00) ( per barrel) Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Source: Argus as of June 26, 2015 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12…
  34. JULY 2015 INVESTOR PRESENTATION – Delek Us Holdings – slide 34
    Non-GAAP Reconciliation Delek US Contribution Margin Reconciliation ( in millions) Year Ended 12/31 2008 2009 2010 2011 2012 2013 2014 1Q14 1Q15 1Q15 LTM Net sales 4,723.7 2,666.7 3,755.6 7,198.2 8,726.7 8,706.8 8,324.3 1,865.7…
  35. JULY 2015 INVESTOR PRESENTATION – Delek Us Holdings – slide 35
    Investor Relations Contact: Assi Ginzburg Keith Johnson Chief Financial Officer Vice President of Investor Relations 615-435-1452 615-435-1366

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