Delek Logistics Partners, LP Investor Presentation March 2015
Investment Highlights Current Price: 40.85/unit (1) Market Capitalization: 989 million (1) Overview (NYSE: DKL) Current Distribution: 0.51/LP unit qtr.; 2.04/LP unit annualized(2) Current Yield: 5.0% 4Q14 Distributable Cash Flow…
Delek US A Growth Oriented, Financially Strong Sponsor 140,000 bpd of refining capacity in Texas and Arkansas Operational Strength Access to crude / product terminals, pipeline and storage assets 365 convenience stores(1) 2.07…
Delek Logistics Partners, LP Overview
Stable Asset Base Positioned for Growth Growing logistics assets support crude sourcing and product marketing Pipelines/Transportation Segment 400 miles of crude transportation pipelines, includes the 195 mile crude oil pipeline…
Acquisitions Provide Stable Fee Based Growth Approximately 26 million of annualized EBITDA (1) expected at time of purchase; focus on continued growth of assets Tyler Tank Hopewell North Little El Dorado Mt. Frank Farm and Pipeline…
Improving EBITDA and Financial Flexibility to Support Growth Solid EBITDA performance since IPO in Nov. 2012 120.0 96.5 100.0 1.1 in millions 80.0 95.4 60.0 63.8 40.0 47.2 48.9 20.0 0.0 2011 Pro Forma(1) Forecast 12 Months…
Increased Distribution with Conservative Coverage and Leverage Distribution has been increased seven consecutive times since the IPO 0.600 Quarterly Distribution Growth to Date 0.400 0.475 0.490 0.510 0.200 0.375 0.385 0.395 0.405…
Improving EBITDA Solid EBITDA performance since IPO in Nov. 2012; Increased from projected 48.9 million to LTM 96.5 million 120.0 EBITDA, in millions * 11.4 (11.3) 3.9 96.5 100.0 20.0 (2.9) 80.0 13.3 13.2 60.0 48.9 40.0…
Strategy in Place to Provide Continued Growth EBITDA GROWTH STRATEGY EXPECTED BENEFIT (1) TIMING Estimated Pro forma LTM EBITDA 96.5 million Current EBITDA Performance based on Annualized 4Q14 EBITDA 104.4 million 4Q14 Identified…
Focus on Growth has Improved EBITDA Visible Pathways for Growth Provide Potential for Continued EBTIDA Increase in Coming Quarters Second quarter 2014 goal for 25 million to 35 million incremental annualized EBITDA in place by 1Q2015…
Segment Overview
Lion Pipeline System and SALA Gathering Lion Pipeline System Lion Pipeline System 60,000 56,343 Provides non-gathered crude oil to Delek US 53,461 55,637 49,694 47,906 50,303 50,000 46,027 El Dorado refinery and connects to 45,220…
Terminalling and West Texas Wholesale Business 10 Increasing Terminal Count Increasing Volume, 000 bpd Terminalling Assets Refined products terminalling services for Delek 8 and/or third parties. Comprised of terminals located in:…
Paline Pipeline Potential EBITDA Increase in 2015 Approximately 195 mile crude oil pipeline - Mainline pipeline flows from northbound to southbound New agreements effective Jan. 1, 2015 35,000 bpd of mainline capacity contracted…
Going Forward
Several Visible Pathways for Continued Growth Ability to Grow Independently Paline Pipeline potential utilization and/or capacity increase Organic Increasing activity in Arkansas gathering system Growth Potential expansion of the…
Questions and Answers Majority of assets support Primarily Traditional, Delek US strategically stable 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 60,000 bpd, 9.5 complexity 80,000 bpd, 9.0…
Summary of Certain Contracts (9) Termination Provision Year Ended Dec. 31, 2014 Minimum Tariff / Fee Refinery (1) (2) Initial / Maximum Term Service Throughput (bpd) Commitment (bpd) Tariff / Fee Escalator Shutdown Force Majeure…
Summary of Certain Contracts - footnotes (1) Maximum term gives effect to the extension of the commercial agreement pursuant to the terms thereof. (2) Represents average daily throughput for the period indicated. (3) Excludes volumes…
Amended and Restated Omnibus Agreement ROFO Under the omnibus agreement, Delek Logistics has a ROFO for 10-years post IPO if Delek US decides to sell the following assets: Rail offloading racks in the El Dorado refinery. Delek…
Summary Organization Structure Delek US Holdings, Inc. Delek Logistics GP, LLC Public Unitholders NYSE: DK 95.8% (the General Partner) ownership interest (1) 48.6% interest 11.3% interest Limited partner-subordinated Limited…
Non-GAAP Reconciliation - DKL Delek Logistics Partners LP EBITDA and Contribution Margin Reconciliation Pro Forma Forecast Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual 12 Months 12 Months 3 Months 3 Months 3…
Cash Available for Distribution - DKL Pro Forma Forecast Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual 12 Months 12 Months 12 Months 12 Months 3 Months 3 Months 3 Months 3 Months 3 Months 3 Months 3 Months 3…
Non-GAAP Reconciliation - DK Delek US LTM EBITDA Reconciliation Year Ended 12/31 2011 2012 2013 2014 Operating Income 286.1 473.1 237.7 366.5 Loss (Gain) on Disposal of Assets 3.6 (0.1) - - Impairment of Goodwill 2.2 - - -…
Investor Relations Contact: Assi Ginzburg Keith Johnson Executive Vice President, CFO Vice President of Investor Relations 615-435-1452 615-435-1366 30
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