Delek Logistics Partners, LP Investor Presentation August 2018
Investment Highlights Current Price: 32.75/unit (1) Market Capitalization: 796 million (1) Current Distribution: 0.770/LP unit qtr.; 3.08/LP unit annualized(2) Overview (NYSE: DKL) Current Yield: 9.40% (1)(2) Distribution per LP unit…
Delek US A Growth Oriented, Financially Strong Sponsor 302,000 bpd of refining capacity in Texas, Arkansas, Louisiana Operational Strength Access to crude / product terminals, pipeline and storage assets Current DK 4.5 billion equity…
Delek Operates Premier Permian-Based Refining System DKL positioned to provide logistics support for 302,000 bpd of Crude Throughput Capacity (69% Permian Basin Based) Premier Permian-based refining company Permian Basin Crude Oil…
Increased Drop Down Inventory plus Organic Project Creates Platform to Support Logistics Growth Potential Growth for DKL Strong EBITDA Growth Profile Supporting Distribution Growth (1) Delek Logistics provides platform to unlock 250.0…
Delek Logistics Partners, LP Overview
Logistics Assets Positioned to Benefit from Permian Basin Activity Growing logistics assets support crude sourcing and product marketing for customers Pipelines/Transportation Segment 805 miles (1) of crude and product…
Multi-Year Contracts with Firm Commitments / MVCs Duration of Contracts as of 2Q18 (1) Contract Highlights The Lion Pipeline System and SALA Gathering System are < 1 Year 24% 25% supported by a long-term contract that includes three…
Improving Performance and Financial Flexibility to Support Growth Solid Net Income and EBITDA performance since IPO in Nov. 2012 150.0 141.0 130.0 115.0 110.0 95.4 96.5 97.3 in millions 90.0 72.0 81.4 63.8 66.8 62.8 69.4 70.0…
DKL: Increased Distribution with Conservative Coverage and Leverage Distribution per unit has been increased twenty-two consecutive times since the IPO 0.750 0.770 0.655 0.680 0.690 0.705 0.715 0.725 0.510 0.530 0.550 0.570 0.590…
Going Forward Assets Positioned for Permian Basin Growth
Permian Basin Attractive Drilling Economics Support Growth Production has continued to grow Crude Oil Production Grew Despite Rig Decline (1) Crude oil production benefited by low 3,500 600 breakeven costs and improved 3,000 500…
Big Spring Logistics Asset Dropdown Located in the Permian Basin and support Delek US Big Spring refinery Dropdown closed in March with an effective date of March 1, 2018 Purchase price of 315.0 million which equates to a 7.8x EBITDA…
Joint Venture Pipeline Projects Create platforms for future growth; Ability to leverage Permian position RIO Pipeline (Delaware Basin) Andeavor (67%)/ Delek Logistics (33%) Cost: 119 million Capacity: 80,000 Bbl/d Length: 109…
Asset Overview: Paline Pipeline Allows Gulf Coast access; Ability to take advantage for crude diffs; Recently Expanded Capacity Approximately 195 mile 42 kbpd crude oil pipeline Longview, TX south to Beaumont Allows shippers ability…
West Texas Wholesale Business Benefiting from Permian Activity Benefiting from Permian Basin crude oil drilling activity West Texas Wholesale and Marketing Gross Margin Operates in an area around the Permian Basin; Complementary to…
Several Visible Pathways for Potential Growth Focus on developing Permian Basin Platform Ability to Leverage Relationship with Delek US Delek US acquired the remaining 53% of the outstanding common stock of Alon USA that it did not…
Questions and Answers Majority of assets support Primarily traditional, stable Delek US strategically 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…
Asset Overview: Lion Pipeline System and SALA Gathering Lion Pipeline System (1) Lion Pipeline System 70,000 Provides non-gathered crude oil to Delek US 59,362 60,000 57,366 56,555 55,412 El Dorado refinery and connects to 49,694…
Asset Overview: Terminalling Terminal Count (4) Terminalling Assets (1) 12 Refined products terminalling services for Delek US and/or third parties 9 Comprised of terminals located in: Memphis and Nashville, TN; 6 Big Spring…
Summary of Certain Contracts (8) Termination Provision Minimum Tariff / Fee Refinery (1) (2) (10) Initial / Maximum Term Service 2Q18 YTD Throughput (bpd) Commitment (bpd) Current Tariff / Fee Index Shutdown Force Majeure Paline…
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 94.6% (the General Partner) ownership interest (1) 61.4% interest Limited partner-common 2.0% interest 36.6% interest…
Non GAAP Reconciliations of EBITDA (1) (1) Actual amounts of EBITDA and net income will vary based on timing, performance of the assets and DKLs growth plans, which will affect the potential future EBITDA and interest at DKL. 31
Non GAAP Reconciliations of Krotz Springs Potential Dropdown EBITDA (1) (1) Based on projected range of potential future logistics assets that could be dropped to Delek Logistics from Delek US in the future. Actual amounts will be…
Investor Relations Contact: Kevin Kremke Keith Johnson Executive Vice President and CFO Vice President of Investor Relations 615-224-1323 615-435-1366 33
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