Delek US Holdings Investor Presentation January 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 in early 2015 Increasing Access to Cost Advantage Crude Steadily improved access to cost advantaged crude 200…
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 Economics Based on Incremental 10,000 bpd of crude Crude Slate 80 72.5k throughput capacity 62.5k 10.0k Estimated capital cost approximately 70 million; 60 10.5k 10.5k approx. 34 million spent YTD 3Q2014…
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 9% year over year in 3Q14 Lowered expenses per barrel at both refineries in…
Declining Capital Needs Expected after 2014 Historical and Projected Capital Spending (excluding logistics) Refining Retail Other 267.8mm 21.2 217.2mm 28.8 35.0 184.7mm Q4, 17.6 37.9 Q3, 26.9 121.5mm 26.5 217.8 Q2, 56.8…
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 89.6 million 100.0 EBITDA, in millions * 89.6 90.0 8.1 (7.7) 5.0 80.0 12.7 (1.3) 70.0 11.7 60.0 48.9 12.2 50.0…
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 0.415 0.425 0.475 0.490 0.200 0.375 0.385 0.395…
Delek Logistics GP Incentive Distribution Rights Marginal Percentage Interest in Distributions Total Quarterly Distribution Per Unit Unitholders General Partner Current Distribution Target Amount 0.490 for 3Q 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 = 9.2x 9.1x 9.3x 9.7x 9.7x 9.9x 7.3x PTRY CASY MUSA CAPL SUN CST (1) Source: Capital IQ; Raymond James…
Financial Update
Solid Financial Performance & Delivering Value to Shareholders Financial Highlights Historical Contribution Margin (MM) (1)(2) 659 At September 30, 2014 Cash of 497.7 million; Debt of 594.2 million 547 Includes 230.0 million of…
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% 63 Potential 140 155 10-12 124 53 80 80 75 2015 66 58 60…
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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