Delek Logistics Partners, LP Investor Presentation August 2015
Investment Highlights Current Price: 40.13/unit (1) Market Capitalization: 980 million (1) Overview (NYSE: DKL) Current Distribution: 0.55/LP unit qtr.; 2.20/LP unit annualized(2) Current Yield: 5.48% (1)(2) 2Q15 Distributable Cash…
Delek US A Growth Oriented, Financially Strong Sponsor 155,000 bpd of refining capacity in Texas and Arkansas Operational Strength Access to crude / product terminals, pipeline and storage assets 360 convenience stores(1) 2.21…
Delek Logistics Partners, LP Overview
Stable Asset Base Positioned for Growth Growing logistics assets support crude sourcing and product marketing for customers Pipelines/Transportation Segment 525 miles of crude and product transportation pipelines, including the…
Acquisitions Provide Stable Fee Based Growth Approximately 32.6 million of annualized EBITDA (Yr. 1 forecast) (1); focus on continued growth of assets Tyler Tank Farm Hopewell North Little El Dorado Mt. Pleasant Frank Rail Offloading…
Acquisition EBITDA multiples have been below 10x (1) Growth strategy to target acquisitions with 8x-10x EBITDA multiple range with potential to improve performance 10.0x 9.0x Average 8.0x 9.0x 9.5x 9.2x 7.0x 8.1x 7.9x 6.0x 6.3x…
Improving EBITDA and Financial Flexibility to Support Growth Solid EBITDA performance since IPO in Nov. 2012 120.0 98.3 100.0 4.2 in millions 80.0 95.4 60.0 63.8 94.1 40.0 47.2 48.9 20.0 0.0 2011 Pro Forma(1) Forecast 12…
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 0.550 0.200 0.375 0.385…
Growth Initiatives Improved EBITDA Since 2012 Solid EBITDA performance since IPO in Nov. 2012; Increased from projected 48.9 million to LTM 98.3 million 120.0 EBITDA, in millions * 20.9 (13.3) 6.6 98.3 100.0 (4.4) 4.2 8.8 80.0 14.1…
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 Caddo Pipeline…
Joint Venture Pipeline Projects Rio Pipeline Rangeland (67%)/ DKL (33%) Est. total cost: 125 million Capacity: 55,000 bpd Length: 107 miles Expected Completion: Mid-2016 Caddo Pipeline DKL (50%)/Plains (50%) Est. total cost:…
Potential EBITDA Growth (1) Visible Pathways for Growth Provide Potential for Continued EBITDA Increase in Coming Quarters (1) Potential EBITDA, in millions * 8x to 10x EBITDA 1.9 Target 3.0 5.5 Caddo Pipeline 2.5 To 3 Frank…
Segment Overview
Lion Pipeline System and SALA Gathering Lion Pipeline System Lion Pipeline System 70,000 Provides non-gathered crude oil to Delek US 60,000 55,267 57,258 El Dorado refinery and connects to 53,461 46,027 49,694 Barrels per day…
Terminalling and West Texas Wholesale Business Terminalling Assets 10 Increasing Terminal Count Volume, 000 bpd Refined products terminalling services for Delek 96.8 and/or third parties. 8 94.5 90.6 Comprised of terminals located…
Paline Pipeline EBITDA Increased in 2015 Approximately 195 mile crude oil pipeline - Mainline pipeline flows from northbound to southbound New agreements effective Jan. 1, 2015 35,000 bpd of mainline capacity usage contracted to…
Going Forward
Several Visible Pathways for Continued Growth Ability to Grow Independently Paline Pipeline potential future utilization and/or capacity increase Organic Growth Increasing activity in Arkansas gathering system Potential expansion of…
Peer Comparisons (1) Current Yield as of 8/6/15 7.5% 5.5% 3.5% 8.0% 7.5% 6.9% 6.0% 5.8% 5.8% 5.5% 5.2% 4.6% 3.7% 1.5% 2.8% 2.6% -0.5% PAA HEP PBFX TLLP EPD WNRL DKL SXL MMP MPLX PSXP VLP Distributable Cash Flow Coverage Ratio -…
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 75,000 bpd, 8.7 complexity 80,000 bpd, 9.0…
Summary of Certain Contracts (9) Termination Provision 6 Months Ended Jun. 30, 2015 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 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…
Amended and Restated Omnibus Agreement 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…
Summary Organization Structure Delek US Holdings, Inc. Delek Logistics GP, LLC Public Unitholders NYSE: DK 95.6% (the General Partner) ownership interest (1) 48.5% interest 11.3% interest Limited partner-subordinated Limited…
Non-GAAP Reconciliation Pro Forma Forecast 12 Months 12 Months 12/31/11 (1)(2) 9/30/13 (1)(2)(3) 1Q2013 (4) 2Q2013(4) 3Q2013 (4) 4Q2013 (4) 2013(4) 1Q2014(4) 2Q2014 3Q2014 4Q2014 2014 1Q2015(6) 2Q15 Total Net Sales 765.8 797.1 210.9…
Cash Available for Distribution Pro Forma Forecast 12 Months 12 Months (dollars in millions) 12/31/11 9/30/13 (3) 2013 (4) 2014 (4) 1Q2013 (4) 2Q2013(4) 3Q2013 (4) 4Q2013 (4) 1Q2014 2Q2014 3Q2014 4Q2014 1Q2015(5) 2Q2015 Contribution…
Non-GAAP Reconciliation - DK Delek US LTM EBITDA Reconciliation Year Ended 12/31 2011 2012 2013 2014 LTM 6/30/15 Operating Income 286.1 473.1 237.7 366.5 264.7 Loss (Gain) on Asset Disposals 3.6 (0.1) - - - Impairment of Goodwill 2.2…
Investor Relations Contact: Assi Ginzburg Keith Johnson Executive Vice President, CFO Vice President of Investor Relations 615-435-1452 615-435-1366 32
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