Delek Logistics Partners, LP Investor Presentation MLPA Conference June 2016
Investment Highlights Current Price: 26.15/unit (1) Market Capitalization: 635 million (1) Overview (NYSE: DKL) Current Distribution: 0.61/LP unit qtr.; 2.44/LP unit annualized(2) Current Yield: 9.33% (1)(2) 1Q16 Distributable Cash…
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…
Opportunities 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…
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…
Several Visible Pathways for Potential Growth Ability to Grow Independently Evaluate Paline Pipeline for potential future utilization and/or capacity increase Organic Growth Increasing activity in Arkansas gathering system Potential…
Peer Comparisons (1) Current Yield as of 5/26/16 15.0% 10.0% 12.4% 5.0% 9.3% 7.9% 7.1% 7.0% 7.0% 6.8% 6.1% 5.8% 4.6% 3.6% 3.2% 0.0% PAA DKL PBFX WNRL HEP SXL TLLP MPLX 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…
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) (11) Initial / Maximum Term Service 2016 Throughput (bpd) Commitment (bpd) Current Tariff / Fee Index Shutdown Force…
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…
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…
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