Delek Logistics Partners, LP Investor Presentation MAY 2016
Investment Highlights Current Price: 32.54/unit (1) Market Capitalization: 790 million (1) Overview (NYSE: DKL) Current Distribution: 0.61/LP unit qtr.; 2.44/LP unit annualized(2) Current Yield: 7.50% (1)(2) 1Q16 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 355 convenience stores(1) 871 million…
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 765 miles (1) of crude and product transportation pipelines, including…
Acquisition EBITDA multiples have been below 10x (1) Provided stable fee based growth Growth strategy to target acquisitions with 8x-10x EBITDA multiple range with potential to improve performance 10.0x 9.0x 8.0x Average 9.0x 9.5x…
Improving EBITDA and Financial Flexibility to Support Growth Solid EBITDA performance since IPO in Nov. 2012 120.0 100.0 99.1 in millions 80.0 96.5 95.4 60.0 40.0 48.9 63.8 20.0 0.0 Forecast 12 Months Ended 2013 (2) 2014…
Growth Initiatives Improved EBITDA Since 2012 Solid EBITDA performance since IPO in Nov. 2012; Increased from projected 48.9(1) million to LTM 99.1 million 130.0 EBITDA, in millions * 29.0 (12.7) 110.0 (4.5) 6.9 99.1 90.0 0.1 13.1…
Increased Distribution with Conservative Coverage and Leverage Distribution has been increased thirteen consecutive times since the IPO 0.600 Quarterly Distribution Growth to Date 0.400 0.590 0.610 0.475 0.490 0.510 0.530 0.550…
Plans in Place for Future Growth After contract changes on June 30, 2016 increased flexibility to evaluate options Paline Pipeline Potential to reverse flow to move crude from Gulf Coast to Longview, Texas Evaluate ability to increase…
Joint Venture Pipeline Projects Rio Pipeline Rangeland (67%)/ DKL (33%) Est. total cost: 125 million (1) Capacity: 55,000 bpd Length: 107 miles Expected Completion: July 2016 Caddo Pipeline DKL (50%)/Plains (50%) Est. total…
Potential EBITDA Growth (1) Visible Pathways for Growth Provide Potential for Continued EBITDA Increase in Coming Quarters (1) 160.0 Potential EBITDA, in millions * 140.0 8x to 10x Potential Retail 120.0 EBITDA Target assets drop…
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 57,366 56,687 55,929 56,34253,779 El Dorado refinery and connects to 53,461 54,960 49,694…
Terminalling and West Texas Wholesale Business Terminalling Assets 10 Increasing Terminal Count 118.0 Volume, 000 bpd 106.5 Refined products terminalling services for Delek 96.8 and/or third parties. 8 Comprised of terminals…
Paline Pipeline Approximately 195 mile crude oil pipeline - Mainline pipeline flows from north to south 35,000 bpd of mainline capacity reserved for third parties to use exclusively with initial term that began Jan 1, 2015 and…
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 5/5/16 15.0% 10.0% 12.2% 5.0% 8.0% 7.5% 6.9% 6.9% 6.8% 6.5% 6.5% 6.2% 4.5% 3.6% 2.9% 0.0% PAA PBFX DKL TLLP HEP SXL MPLX WNRL EPD MMP PSXP VLP Distributable Cash Flow Coverage Ratio - Q1…
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, 10.2…
Summary of Certain Contracts (9) Termination Provision 3 Months Ended Mar. 31, Minimum Tariff / Fee Refinery (1) (2) Initial / Maximum Term Service 2016 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 95.35% (the General Partner) ownership interest (1) 59.7% interest Limited partner-common 2.0% interest 38.3% interest…
Loading...
