Investor Presentation Delek Logistics MLP & Energy Infrastructure Conference - May 2019
Investment Overview Current Price: 30.50/unit (1) Market Capitalization: 744 million (1) Overview (NYSE: DKL) Current Distribution: 0.820/LP unit qtr.; 3.28/LP unit annualized (2) Current Yield: 10.69% (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 2.7 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 1Q19 (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 (1) Solid Net Income and EBITDA performance since IPO in Nov. 2012 180.0 164.0 168.7 160.0 140.0 115.0 in millions 120.0 97.3 94.9 100.0 90.2 80.0 62.8 69.4 60.0…
Increased Distribution with Conservative Coverage and Leverage Distribution per unit has been increased twenty-five consecutive times since the IPO 0.770 0.790 0.810 0.820 0.690 0.705 0.715 0.725 0.750 0.550 0.570 0.590 0.610 0.630…
Assets Positioned for Permian Basin Growth
Permian Basin Outlook Production continues to grow while incremental takeaway capacity outlook is uncertain Average Annual Crude Oil Production (Mbpd) (1) and WTI-Midland Price (2) Steady growth has continued in production 7.00 60.96…
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 (1) West Texas Wholesale and Marketing Gross Margin Operates in an area around the Permian Basin; Complementary to Delek US refining/retail in…
Going Forward: Growing Midstream Assets
Delek US Growing Midstream Asset Base Increasing potential future drop down inventory Big Spring Gathering System Exploring Long-Haul Pipeline Investment 250-mile gathering system, 300Kbpd Exploring potential options to participate in…
Organic Projects Create Larger Dropdown Inventory Supports Delek US goal to generate 350 million to 370 million of annual midstream EBITDA by 2023 Potential Growth for DKL Strong EBITDA Growth Profile Supporting Distribution Growth…
Several Visible Pathways for Growth Focused around developing Permian platform; Growing logistics asset base at sponsor Ability to Leverage Relationship with Delek US Permian-based refining system with 207,000 bpd of Permian crude access…
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 ANDX HEP MPLX PBFX…
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 60,000 59,362 53,461 54,960 57,366 56,555 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) Termination Provision Minimum Tariff / Fee Refinery Initial / Maximum Term (1) Service 1Q19 YTD Throughput (bpd)(2) Commitment (bpd) Current Tariff / Fee Index (10) 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 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 1) Distribution based on actual amounts distributed during the periods; does not include LTIP accrual. Coverage is defined as cash available for distribution divided by total…
Non-GAAP Reconciliation of Krotz Springs Potential Dropdown EBITDA(1) Krotz Springs Logistics Drop Down Reconciliation of Forecasted Annualized Net Income to Forecasted Incremental EBITDA ( in millions) Forecasted Range Forecasted…
Non-GAAP Reconciliation of Increased Paline Pipeline Tariff EBITDA(1) Reconciliation of Forecasted Incremental U.S. GAAP Net Income (Loss) to Forecasted Incremental EBITDA for Paline Pipeline Tariff Increase ( in millions) Annual…
Investor Relations Contact: Assi Ginzburg Keith Johnson Executive Vice President and CFO Vice President of Investor Relations 615-224-1158 615-435-1366
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