Delek US Holdings Investor Presentation Credit Suisse Small/Mid Cap Conference Sept. 16, 2015
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…
Delek US Investment Highlights Crude nameplate capacity increased by 15 kbpd to 155 kpbd Refining Improved light crude processing flexibility at El Dorado Increased capacity and improved Turnarounds completed and FCC reactors replaced…
Declining Capital Needs Expected after 2014 Increases potential free cash flow generation from operations ( in millions) Historical and Projected Capital Spending (excluding Logistics segment) Average EBITDA generation 2012 to 2014 was…
Alon USA Investment On May 14, 2015, Delek completed the Alon USA Asset Overview acquisition of approximately 33.7 million shares, Refining Retail or approximately 48% of the outstanding shares, Richmond Richmond RichmondBeach…
MLP Environment Changing Refinery backed MLPs have handled the period better than midstream peers without a refinery sponsor MLP's: Sept 2014 MLPs: July 2015 16.0% 1,000 16.0% 1,000 Refinery-Backed Refinery-Backed 14.0% Small &…
Limited Value Attributed to Delek US Refining Assets in Current Environment Creates attractive capital allocation opportunity 2.3B EV DKL Value: 2.0 Price: 37.22 DKL, 0.50 X Shares: 24.3m Market Cap: 0.9 B X 60% Ownership 0.5 B…
Investment Options Available to Delek US Current DK share price creates opportunity for capital allocation Remaining Interest in Return Cash to Logistics Alon USA Shareholders 48% of outstanding shares JV pipeline construction 125…
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 Improved access to cost advantaged crude 200 (Midland/local) in refining…
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 Capital cost of…
Refineries Serve Local Niche Markets Supports High Refining Utilization Improving Niche Markets Delek Logistics Partners terminals support refining system: Tyler refinery serves a 60 to 80 mile radius El Dorado has access to local…
El Dorado Asphalt Inventory /bbl Declining Asphalt inventory cost/bbl has declined during first half of 2015 Cost of sales for asphalt based on FIFO inventory method Asphalt inventory is built during winter months and sold in 2Q/3Q…
Operating Cost Per Barrel Total Refining Operating Expense Per Barrel Sold Focus on reducing costs in operations Total operating cost per barrel declined year over year in 2Q15 Goal to reduce to below 4.00 per barrel 4.18 4.00 4.32…
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 8.5 million barrels of active shell capacity Pipelines…
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 Caddo…
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:…
DKL: 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…
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…
Delek Logistics GP Incentive Distribution Rights Marginal Percentage Interest in Distributions Total Quarterly Distribution Per Unit Unitholders General Partner Current Distribution Target Amount 0.550 for 2Q 2015 Minimum Quarterly…
Retail Operational Update
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 Large Format Stores are focal point New Builds 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 = 9.8x 12.1x 9.8x 10.0x 9.1x 7.8x CASY CAPL CST MUSA SUN (1) Source: Capital IQ;…
Financial Update
Solid Financial Performance & Delivering Value to Shareholders Financial Highlights Historical Contribution Margin (MM) (1)(2) At June 30, 2015 655 610 Cash of 378.4 million; Debt of 971.9 million 524 445 439 Includes 316.9 million…
Delek US Capital Allocation Program Target the most attractive value based on market conditions, expected returns and growth strategies Invest in Business Acquisitions Safe and Efficient Operations Focus on Logistics Building new…
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…
Historical and Projected Capital Spending Refining Logistics (Marketing) Retail Other ( in millions) 256.9 22.4 239.7 222.3 22.8 26.2 35.0 7.2 24.2 170.0 19.8 0.1 37.9 14.3 0.5 5.1 132.0 26.5 96.5 102.4 87.2 201.1…
U.S. Refining Environment Trends Refined Product Margins and WTI-Linked Feedstock Favor Delek US (1) (2) (2) 50 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…
0.00 2.00 (8.00) (6.00) (4.00) (2.00) (14.00) (12.00) (10.00) ( per barrel) Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Source: Argus as of September 11, 2015 Dec-11…
Non-GAAP Reconciliation Delek US Contribution Margin & EBITDA Reconciliation ( in millions) Year Ended 12/31 2008 2009 2010 2011 2012 2013 2014 1H14 1H15 2Q15 LTM Net sales 4,723.7 2,666.7 3,755.6 7,198.2 8,726.7 8,706.8 8,324.3…
Summary Organization Structure 95.6% Delek US Holdings, Inc. ownership interest (1) NYSE: DK Market Cap: 2.0 billion Delek Logistics GP, LLC (the General Partner) 48% interest 60% interest 2.0% interest General partner…
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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