Delek US Holdings Investor Presentation September 2016
Delek US Holdings Overview Mid-Continent Downstream Energy Company Crude Sourcing/Logistics Flexibility Pipeline Access: Midland (105,000 bpd in system) Gulf Coast and Cushing Gathered Barrels: Local barrels in Arkansas/ North…
Delek US Investment Highlights Refining Crude nameplate capacity increased by 15 kbpd to 155 kpbd in 2015 Turnarounds completed and FCC reactors replaced at both refineries Increased capacity and improved Declining capital expenditure…
2016 Initiatives to Create Value and Improve Financial Flexibility Total capital expenditure expected to be 63.9 million in 2016 Reduced Capital Reduced from 218.6 million in 2015 and 256.9 million in 2014 Expenditures Completed large…
Retail Transaction Summary MAPCO Sale Transaction Select Precedent C-Store Transactions (3) Retail segment and associated logistics entities to be sold to 19.3x (2) Compaa de Petrleos de Chile COPEC S.A. (SNSE:COPEC) 16.4x Median:…
Delek US Focused on Creating Long Term Shareholder Value Financial flexibility supports ability to explore opportunities 535 million(1) retail transaction should reduce debt Delek US Net Debt Position and improve cash position…
Refining Segment Operational Update
Refineries Serve Local Niche Markets Supports High Refining Utilization Improving Niche Markets Delek Logistics Partners terminals support refining system: Tyler primarily serves a 100 mile radius El Dorado has access to local…
Increased Access to Cost Advantaged Crude Approximately 80% of crude slate consists of Midland and local crude supply Improved access to cost advantaged crude Increasing Access to Cost Advantage Crude (Midland/local) in refining…
Initiatives Underway to Improve Asset Performance Consistent focus on factors under our control Safety Expand local footprint Improve yields Minimize RINs Maximize high value exposure products Balance Reliability/Utilization…
Refining Capital Investment Program Improved Operations Increased crude throughput capacity and operating flexibility Large investment cycle in refining now Historical Capital Spending completed ( in millions) Capital expenditure…
Tyler Refinery Overview 75,000 bpd niche refinery serving Tyler, Texas and surrounding area Overview Total Production, bpd Niche market generally priced above Gulf Coast; supported by Delek Logistics' terminals 120% 62,304 65,523…
El Dorado Refinery Overview 80,000 bpd refinery with crude slate flexibility to process light and medium gravity crudes Overview Total Production, bpd Inland PADD III refinery located in Southern 1 71,642 71,286 77,806 78,789 73,460…
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: Joint Venture Pipeline Projects Rio Pipeline Rangeland (67%)/ DKL (33%) Est. total cost: 119 million (1) Capacity: 55,000 bpd Length: 107 miles Expected Completion: Aug. 2016 Caddo Pipeline DKL (50%)/Plains (50%) Est.…
Increased Distribution with Conservative Coverage and Leverage Distribution has been increased fourteen consecutive times since the IPO 0.570 0.590 0.610 0.630 0.490 0.510 0.530 0.550 0.405 0.415 0.425 0.475 0.375 0.385 0.395…
Delek Logistics GP Incentive Distribution Rights Marginal Percentage Interest in Distributions Total Quarterly Distribution Per Unit Unitholders General Partner Paid Distribution 0.63 Target Amount for 2Q 2016 Minimum Quarterly…
Retail Operational Update
Retail Operations Markets gasoline, diesel and merchandise through a network of retail fuel and convenience stores throughout the southeastern U.S. Kentucky and Mississippi 10 locations Virginia Operates 348 stores throughout…
Financial Update
Capital Invested in the Business and Returned to Shareholders Financial Highlights Cash Balance (MM) At June 30, 2016 602 Cash of 377.1 million; Debt of 941.1 million 400 444 377 Includes 362.6 million of debt at Delek Logistics…
Declining Capital Needs Increases potential free cash flow generation from operations ( in millions) 256.9 Refining Logistics (Marketing) Retail Other 22.4 222.3 26.2 218.6 17.2 35.0 9.2 170.0 18.3 0.1 18.6 37.9 14.3 0.5…
Limited Value Attributed to Delek US Refining Assets in Current Environment Creates attractive capital allocation opportunity 1.5 1.3B EV DKL Value: Price: 26.09 DKL, 0.40 X Shares: 24.3m 1.2 Market Cap: 0.6 B X 60% Ownership 0.4…
Questions and Answers Complementary Logistics Systems Strategically Positioned Strong Balance Sheet Refining Platform Significant Organic Focus on Shareholder Growth / Margin Returns Improvement Opportunities 26
Appendix Additional Data
Delek US Focused on Growth through Acquisitions 2005 to 2007 2011 to 2012 2013 to Current 2011 Crude SALA Gathering Increased Gathering East and West Texas Gathering Lion Oil acquisition 2016 Completion 2012 DKL Joint…
Summary Organization Structure 95.10% Delek US Holdings, Inc. ownership interest (1) NYSE: DK Market Cap: 1.1 billion Delek Logistics GP, LLC (the General Partner) 48% interest 59.7% interest 2.0% interest General partner…
Alon USA Investment On May 14, 2015, Delek completed the Alon USA Asset Overview (3) acquisition of approximately 33.7 million shares, Refining Retail or approximately 48% of the outstanding shares, Richmond Richmond RichmondBeach…
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