Delek US Holdings Investor Presentation February 2015
Integrated Business Model Flexible Crude Sourcing and Market Driven Production Enhance Performance Pipeline access to Midland; Gulf Coast; Cushing Flexible Crude Oil Increasing Gathering Texas and Arkansas Sourcing Access to Canadian…
Delek US Holdings Overview Mid-Continent Integrated Downstream Energy Company Crude Gathering to Retail Locations Crude Sourcing/Logistics Flexibility Pipeline Access: Midland (97,000 bpd in system) Gulf Coast and Cushing REFINING…
Refining Segment Operational Update
Increased Access to Cost Advantaged Crude Approximately 75% of crude slate consist of Midland and local crude supply Increasing Access to Cost Advantage Crude Steadily improved access to cost advantaged crude 200 (Midland/local) in…
Improved Operating Flexibility Increased ability to process light crude oil and ULSD capacity Since 2012 increased light crude processing Light Crude Processing and DHT Capacity Increased (1) capability by 27% based on 2015 target (In…
Tyler Refinery Expansion and FCC Reactor Economics Final work during Tyler turnaround in 1Q2015 Based on Incremental 10,000 to 15,000 bpd of Crude Slate crude throughput capacity 80 72.5k Estimated capital cost approximately 70…
Refineries Serve Local Niche Markets Supports High Refining Utilization Improving Niche Markets Delek Logistics Partners terminals support refining system: Tyler refinery serves a 60 mile radius El Dorado has access to local markets,…
Affects of Declining Crude Oil Price Environment on Refining Declining crude oil price environment has ability to improve capture rate in Delek US system A 10 per barrel decline in crude oil price can increase capture rate by 0.80 per…
Improved Operating Cost per barrel Total Operating Expense Per Barrel Sold Focus on reducing costs in operations Total operating cost per barrel declined by 16% year over year in 4Q14 Lowered expenses per barrel at both 4.60 4.32…
Declining Capital Needs Expected after 2014 Historical and Projected Capital Spending (excluding logistics) Refining Retail Other 249.7mm 22.4 217.2mm 26.2 197.3mm 35.0 Q4, 17.3 37.9 Q3, 27.6 121.5mm Q2, 61.8 26.5 80.1mm…
Logistics Operational Update
Strategic Partner in Delek Logistics Partners, LP (NYSE: DKL) Growing logistics assets support crude sourcing and product marketing Storage Assets Storage facilities with 8.1 million barrels of active shell capacity Pipelines…
DKL: 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…
DKL: Potential EBITDA Growth (1) 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 1Q2015 is on…
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…
Delek Logistics GP Incentive Distribution Rights Marginal Percentage Interest in Distributions Total Quarterly Distribution Per Unit Unitholders General Partner Current Distribution Target Amount 0.510 for 4Q 2014 Minimum Quarterly…
Retail Locations Create Synergies for Product Marketing Expanding Market Footprint in Markets Capable of Being Supplied by El Dorado Markets gasoline, diesel and merchandise through a network of retail fuel and convenience stores…
Focused on Organic Growth New Builds Large Format Stores are focal point Approximately 4,800 square feet Offer customers wider product selection Prepared food service offering increases traffic Avg. approximately 4 million gallons…
Current Retail Valuation Comparison Valuations moving higher than historical 6x-8x range EV/ 2015 EBITDA Average = 9.6x 12.7x 9.1x 9.7x 9.4x 9.2x 7.3x PTRY CASY MUSA CAPL SUN CST (1) Source: Capital IQ; Feb. 18, 2015…
Financial Update
Solid Financial Performance & Delivering Value to Shareholders Financial Highlights Historical Contribution Margin (MM) (1)(2) At December 31, 2014 655 610 Cash of 444.1 million; Debt of 589.7 million Includes 251.8 million of debt…
Peer Balance Sheet Metrics 4Q14 Net Debt/ LTM EBITDA 1.2x 0.6x 0.9x 0.7x 0.6x 0.6x 0.3x 0.2x HFC (3Q) DK VLO WNR (3Q) PBF TSO PSX MPC ALJ (3Q) -0.3x (1) Source: Capital IQ 2/18/15; based on amounts that were reported…
Solid Return on Invested Capital in 2014 2014 ROIC 24.7% 22.0% 22.1% 20.3% 16.7% 5.6% PBF TSO PSX VLO DK MPC (1) Source: Based on reported earnings before interest and taxes and average capital. 27
Going Forward
Growing and Improving Asset Base Across all Segments (1) Retail Increasing Large Format Store Count Increasing Light Crude Throughput Ability in Refining (in 000 bpd) +25% 64 Potential 140 155 53 10-12 124 80 80 75 2015 66 58 60…
Peer Comparison (1) EV/ LTM EBITDA 6.4x 6.6x 6.4x 5.9x 5.8x 4.0x 4.2x 4.4x 4.4x PBF DK VLO ALJ TSO WNR HFC MPC PSX (1) Source: Capital IQ; February 18, 2015 with DK adjusted for 2014 reported results. 30
Questions and Answers Large, Complementary Logistics, Marketing and Retail Systems Strategically Positioned Strong Balance Sheet Refining Platform Significant Organic Focus on Shareholder Growth / Margin Returns…
Appendix Additional Data
Delek US Focused on Building an Integrated Business Model A core part of Delek US' strategy is to grow via prudent strategic transactions since 2001 2005 to 2007 2011 to 2012 2013 to Current 2011 Crude SALA Gathering Increased…
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