Investment Overview Current Distribution: 0.89/LP unit qtr.; 3.56/LP unit annualized (1) Overview (NYSE: DKL) Visibility for distribution coverage in the range of 1.4x to 1.5x and a leverage ratio below 4.0x by the end of 2020 Net…
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 Financial Strength At Mar.…
Delek US - Distinguishing Characteristics 1) Source: Platts and NYMEX as of May 5, 2020 5
DKL Relative to Peer Group Where We Are and Where We Are Going 1Q20 Distribution Coverage Yr/Yr Distribution Growth Visibility for distribution coverage in the range of 1.4x to 1.5x by the end of 2020 8.5% 6.2% 3.6% 2.2% 1.7% DKL…
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…
Delek Permian Gathering East System Equipment DPG East System Lease Automatic Custody 45 Installations Transfer Units (LACTS) Pipeline 60 miles Tanks (bbl) 2 (50M, 300M) 9
Delek Permian Gathering West System DPG West System Equipment Lease Automatic Custody 6 Transfer Units (LACTS) Installations Pipeline 70 miles Tanks (bbl) 1 (50M) 10
Multi-Year Contracts with Firm Commitments / MVCs Duration of Contracts as of 1Q20 (1) & Pro-Forma Drops Contract Highlights The Lion Pipeline System and SALA Gathering System are < 1 Year < 1 Year 18% 20% 26% 31% supported by a…
Financial Flexibility and Growing Distributable Cash Flow Solid Net Income and EBITDA performance (1) 190.0 178.9 188.3 140.0 164.0 in millions 90.0 115.0 104.9 97.3 90.2 96.8 40.0 62.8 69.4 -10.0 2016 2017 2018 2019 2020…
Increased Distribution with Conservative Coverage and Leverage Distribution per unit has increased twenty-nine consecutive times since the IPO 0.385 0.395 0.405 0.415 0.425 0.475 0.490 0.510 0.530 0.550 0.570 0.590 0.610 0.630…
DKL Asset & Joint Venture Detail
Joint Venture Pipeline Projects Create platforms for future growth; Ability to leverage Permian position RIO Pipeline (Delaware Basin) MPLX (67%)/ Delek Logistics (33%) Cost: 119 million Capacity: 80,000 Bbl/d Length: 109…
Midstream: Big Spring Gathering System Gathering Helps Control Crude Oil Quality and Cost into Refineries Getting closer to wellhead allows us to control crude quality and cost Big Spring Gathering System Provides improvement in…
Midstream: Red River Pipeline Joint Venture Red River Pipeline JV DKL purchased 33% interest in May 2019 Planned expansion from 150 kbpd to 235 kbpd Approx. 128.0 million initial investment; Financed with revolver Expected…
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, TX Allows shippers ability ship…
West Texas Wholesale Business Benefiting from Permian Basin crude oil drilling activity West Texas Wholesale and Marketing Gross Margin(1) Operates in an area around the Permian Basin; Complementary to Delek US refining/retail in…
Asset Overview: El Dorado Assets and Gathering Assets El Dorado Assets (1) 70,000 El Dorado Assets Provides non-gathered crude oil to Delek US 60,000 El Dorado refinery and connects to Enterprise 50,000 Barrels per day TE…
Asset Overview: Terminalling Terminal Count 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…
Going Forward: Growing Midstream Assets
Delek US: Wink to Webster Wink to Webster Pipeline JV 650-mile 36-inch diameter crude oil pipeline Wink to Webster Pipeline LLC Exxon, Plains, MPLX, Delek US, Rattler Midstream, Lotus Midstream Delek US Investment Total system…
Midstream: UtilizingFree Midstream: Utilizing Free Cash Cash Flow Flow & Strong & Strong Balance Balance Sheet Sheet to Fund to Fund Growth Growth Supports goal to generate approximately 370 million to 395 million of annualized…
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 12.0x 10.0x 8.0x 6.0x 4.0x 2.0x 0.0x DKL HEP MPLX PBFX PSXP PAA NS…
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
Summary of Certain Contracts(8) Termination Provision Minimum Tariff / Fee Refinery (1) (2) (10) Initial / Maximum Term Service Q120 Throughput (bpd) Commitment (bpd) Current Tariff / Fee Index Shutdown Force Majeure DKL Permian…
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…
Third Amended and Restated Omnibus Agreement, as amended Key Provisions Delek US will indemnify Delek Logistics for certain liabilities, including environmental and other liabilities, relating to contributed assets. Delek US has a…
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 (2)(3) 1Q16 2Q16 3Q16 4Q16 2016 (3) Reconciliation of…
Non-GAAP Reconciliation of Krotz Springs Potential Dropdown EBITDA Krotz Springs Logistics Drop Down Reconciliation of Forecasted Annualized Net Income to Forecast Incremental EBITDA ( in millions) Forecasted Range Forecasted…
Non-GAAP Reconciliation of Increased Paline Pipeline Tariff EBITDA Reconciliation of Forecast Incremental U.S. GAAP Net Income (Loss) to Forecast Incremental EBITDA for Paline Pipeline Tariff Increase ( in millions) Annual Monthly…
Non-GAAP Reconciliation of Red River Joint Venture Adjusted EBITDA Delek Logistics Partners, LPReconciliation of Forecasted Incremental U.S. GAAP Net Income (Loss) to Forecasted Incremental Adjusted EBITDA for the Red River Pipeline…
Non-GAAP Reconciliations of Big Spring Gathering System Forecasted EBITDA 38
Non-GAAP Reconciliations of Trucking Forecasted EBITDA 39
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