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Credit Suisse MLP Conference Presentation – Delek Logistics Partners, LP

Delek Logistics Partners, LP · Jun 21, 2016 · 27 slides

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Slides

  1. Credit Suisse MLP Conference Presentation – Delek Logistics Partners, LP – slide 1
    Delek Logistics Partners, LP Investor Presentation Credit Suisse MLP Conference June 2016
  2. Credit Suisse MLP Conference Presentation – Delek Logistics Partners, LP – slide 2
    Investment Highlights Current Price: 26.16/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…
  3. Credit Suisse MLP Conference Presentation – Delek Logistics Partners, LP – slide 3
    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) 761 million…
  4. Credit Suisse MLP Conference Presentation – Delek Logistics Partners, LP – slide 4
    Delek Logistics Partners, LP Overview
  5. Credit Suisse MLP Conference Presentation – Delek Logistics Partners, LP – slide 5
    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…
  6. Credit Suisse MLP Conference Presentation – Delek Logistics Partners, LP – slide 6
    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…
  7. Credit Suisse MLP Conference Presentation – Delek Logistics Partners, LP – slide 7
    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…
  8. Credit Suisse MLP Conference Presentation – Delek Logistics Partners, LP – slide 8
    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…
  9. Credit Suisse MLP Conference Presentation – Delek Logistics Partners, LP – slide 9
    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 0.570 0.590 0.610 0.415 0.425 0.475 0.490 0.510…
  10. Credit Suisse MLP Conference Presentation – Delek Logistics Partners, LP – slide 10
    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…
  11. Credit Suisse MLP Conference Presentation – Delek Logistics Partners, LP – slide 11
    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…
  12. Credit Suisse MLP Conference Presentation – Delek Logistics Partners, LP – slide 12
    Potential EBITDA Growth (1) Options for Growth Provide Potential for EBITDA Increase in Coming Quarters (1) Potential EBITDA, in millions * 160.0 140.0 Potential Retail asset drop down from Delek US 120.0 8x to 10x EBITDA target…
  13. Credit Suisse MLP Conference Presentation – Delek Logistics Partners, LP – slide 13
    Segment Overview
  14. Credit Suisse MLP Conference Presentation – Delek Logistics Partners, LP – slide 14
    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…
  15. Credit Suisse MLP Conference Presentation – Delek Logistics Partners, LP – slide 15
    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…
  16. Credit Suisse MLP Conference Presentation – Delek Logistics Partners, LP – slide 16
    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…
  17. Credit Suisse MLP Conference Presentation – Delek Logistics Partners, LP – slide 17
    Going Forward
  18. Credit Suisse MLP Conference Presentation – Delek Logistics Partners, LP – slide 18
    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…
  19. Credit Suisse MLP Conference Presentation – Delek Logistics Partners, LP – slide 19
    Peer Comparisons (1) Current Yield as of 6/17/16 15.0% 10.0% 5.0% 10.5% 9.3% 7.6% 7.2% 7.0% 6.7% 6.5% 6.2% 5.7% 4.3% 3.6% 3.0% 0.0% PAA DKL PBFX SXL TLLP HEP WNRL MPLX EPD MMP PSXP VLP Distributable Cash Flow Coverage Ratio - Q1…
  20. Credit Suisse MLP Conference Presentation – Delek Logistics Partners, LP – slide 20
    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…
  21. Credit Suisse MLP Conference Presentation – Delek Logistics Partners, LP – slide 21
    Appendix
  22. Credit Suisse MLP Conference Presentation – Delek Logistics Partners, LP – slide 22
    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…
  23. Credit Suisse MLP Conference Presentation – Delek Logistics Partners, LP – slide 23
    Summary of Certain Contracts (9) Termination Provision 3 Months Ended Mar. 31, Minimum Tariff / Fee Refinery Initial / Maximum Term (1) Service 2016 Throughput (bpd) (2) Commitment (bpd) Current Tariff / Fee Index (11) Shutdown Force…
  24. Credit Suisse MLP Conference Presentation – Delek Logistics Partners, LP – slide 24
    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…
  25. Credit Suisse MLP Conference Presentation – Delek Logistics Partners, LP – slide 25
    Non-GAAP Reconciliation Forecast 12 Months 9/30/13 (1)(2)(3) 1Q13 (4) 2Q13(4) 3Q13(4) 4Q13(4) 2013(4) 1Q14(4) 2Q14 3Q14 4Q14 2014 1Q15(5) 2Q15 3Q15 4Q15 2015 1Q16 Total Net Sales 797.1 210.9 230.1 243.3 223.1 907.4 203.5 236.3 228.0…
  26. Credit Suisse MLP Conference Presentation – Delek Logistics Partners, LP – slide 26
    Cash Available for Distribution Forecast 12 Months (dollars in millions) 9/30/13 (3) 2013 (4) 2014 (4) 2015 (5) 1Q13 (4) 2Q13(4) 3Q13(4) 4Q13(4) 1Q14 (4) 2Q14 3Q14 4Q14 1Q15(5) 2Q15 3Q15 4Q15 1Q16 Contribution Margin (1) 56.6 70.3…
  27. Credit Suisse MLP Conference Presentation – Delek Logistics Partners, LP – slide 27
    Non-GAAP Reconciliation - DK Delek US Contribution Margin & EBITDA Reconciliation ( in millions) Year Ended 12/31 2008 2009 2010 2011 2012 2013 2014 2015 1Q15 1Q16 1Q16 LTM Net sales 4,723.7 2,666.7 3,755.6 7,198.2 8,726.7 8,706.8…

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