Investor Presentation Delek Logistics December 2018
Investment Overview Current Price: 30.70/unit (1) Market Capitalization: 746 million (1) Overview (NYSE: DKL) Current Distribution: 0.790/LP unit qtr.; 3.16/LP unit annualized (2) Current Yield: 10.29% (1) (2) Distribution per LP…
Delek US A Growth Oriented, Financially Strong Partner 302,000 bpd of refining capacity in Texas, Arkansas, Louisiana Operational Strength Access to crude / product terminals, pipeline and storage assets Current DK 3.26 billion equity…
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 3Q18 (1) Contract Highlights The Lion Pipeline System and SALA Gathering System are < 1 Year 20% 27% supported by a long-term contract that includes three…
Financial Flexibility and Growing Distributable Cash Flow Solid Net Income and EBITDA performance since IPO in Nov. 2012 160.0 154.0 140.0 115.0 120.0 97.3 95.4 96.5 in millions 100.0 81.4 72.0 66.8 69.4 80.0 63.8 62.8…
Increased Distribution with Conservative Coverage and Leverage Distribution per unit has been increased twenty-three consecutive times since the IPO 0.770 0.790 0.680 0.690 0.705 0.715 0.725 0.750 0.530 0.550 0.570 0.590 0.610…
Assets Positioned for Permian Basin Growth
Permian Basin Attractive Drilling Economics Support Growth Production continues to grow Steady growth has continued in production Average Annual Crude Oil Production (Mbpd) (1) Drilling supported by improved technology and low and…
Big Spring Logistics Assets 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) MPC (67%)/ Delek Logistics (33%) Cost: 119 million Capacity: 80,000 Bbl/d Length: 109 miles…
Asset Overview: Paline Pipeline Provides access to Gulf Coast and ability to take advantage of crude differentials Approximately 195 mile 42 kbpd crude oil pipeline Longview, TX south to Beaumont Allows shippers ability ship Midland…
West Texas Wholesale Business 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 Delek US refining/retail in region (…
Going Forward Growing Sponsor Midstream Assets
Delek US Growing Midstream Asset Base Increasing potential future drop down inventory Big Spring Gathering System Proposed PGC Long-Haul Pipeline Investment 250-mile gathering system, 300Kbpd Partnership provides expertise, throughput…
Organic Projects Create Larger Dropdown Inventory Supports Delek US goal to generate 370 million to 390 million of annual midstream EBITDA(3) Potential Growth for DKL Strong EBITDA Growth Profile Supporting Distribution Growth (1)…
Several Visible Pathways for Growth Focused around developing Permian platform; Growing logistics asset base at sponsor Ability to Leverage Relationship with Delek US Premier Permian-based refining system with 207,000 bpd of Permian…
Current Valuation Below Peer EV-to-EBITDA DKLs financial flexibility and growth initiatives of strong sponsor DK positions it for growth EV/EBITDA 14.0x 12.0x 10.0x 8.0x 6.0x 4.0x 2.0x 0.0x DKL-USQ ANDX-USQ…
Majority of assets support Primarily traditional, stable Delek US strategically MLP assets with limited located inland refining commodity price exposure system Balance sheet positioned Inflation-indexed fees for to grow with…
Appendix
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 56,672 El Dorado refinery and connects to…
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) 25
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 Organizational 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…
DKL: Reconciliation of Cash Available for Distribution (dollars in millions, except coverage) 2013 (2) 1Q14 (2) 2Q14(2) 3Q14(2) 4Q14(2) 2014 (2) 1Q15(2) 2Q15 3Q15 4Q15 2015 (3) 1Q16 2Q16 3Q16 4Q16 2016 (3) 1Q17 2Q17 3Q17 4Q17 (3)…
Non-GAAP Reconciliation of Krotz Springs Potential Dropdown EBITDA(1) Krotz Springs Logistics Drop Down Reconciliation of Forecasted Annualized Net Income to Forecasted EBITDA ( in millions) Forecasted Range Forecasted Net Income…
Non-GAAP Reconciliations of Big Spring Potential Dropdown EBITDA(1) Big Spring Logistics Drop Down and Marketing Agreement Reconciliation of Forecasted Annualized Net Income to Forecasted EBITDA Tanks, Terminals ( in millions) and…
Investor Relations Contact: Kevin Kremke Keith Johnson Executive Vice President and CFO Vice President of Investor Relations 615-224-1323 615-435-1366
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