Investor Presentation Delek Logistics Partners September 2020
Investment Overview Current Distribution: 0.90/LP unit qtr.; 3.60/LP unit annualized (1); 11% current yield (2) Committed to growing distribution 5% year-over-year Overview (NYSE: DKL) Improving outlook into second half of 2020; asset…
Simplified Organizational Structure Eliminated incentive distribution rights (IDRs) General partner (GP) converted to non-economic interest Transaction: 14 million newly issued DKL common limited partner units and 45 million in…
Delek US A Growth Oriented, Financially Strong Partner Source 207,000 bpd from Permian Basin Access to Cushing; 35,000 bpd Growing gathering system increasing to 100,000 bpd second half Wink to Webster JV Crude oil 2020…
DKL Relative to Peer Group Where It is and Where It is Going 2Q20 Distribution Coverage Yr/Yr Distribution Growth Achieved distribution coverage target range of 1.4x to 1.5x by 5.9% 3.0% 1.5% 1.1% the end of 2020 in second quarter…
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 2Q20 (1) Contract Highlights 7% 1% < 1 Year The Lion Pipeline System and SALA Gathering System are 1 to 3 Years 36% supported by a long-term contract that…
Financial Flexibility and Growing Distributable Cash Flow Solid Net Income and EBITDA performance(1) 200.0 208.3 150.0 178.9 164.0 in millions 100.0 115.0 124.4 97.3 90.2 96.8 50.0 69.4 62.8 0.0 (3) 2016 2017 2018 2019…
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: 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…
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: 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…
2021 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 MMP…
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…
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 27
Non-GAAP Reconciliations of Trucking Forecasted EBITDA 28
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…
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