Skip to main content Scotia Howard Weil Energy Conference – Delek Us Holdings Investor Presentation | Shale Experts
Loading...
Pm

Scotia Howard Weil Energy Conference – Delek Us Holdings

Delek Us Holdings · Mar 24, 2015 · 38 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Scotia Howard Weil Energy Conference – Delek Us Holdings – slide 1
    Delek US Holdings Scotia Howard Weil Energy Conference March 2015
  2. Scotia Howard Weil Energy Conference – Delek Us Holdings – slide 2
    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…
  3. Scotia Howard Weil Energy Conference – Delek Us Holdings – slide 3
    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…
  4. Scotia Howard Weil Energy Conference – Delek Us Holdings – slide 4
    Refining Segment Operational Update
  5. Scotia Howard Weil Energy Conference – Delek Us Holdings – slide 5
    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…
  6. Scotia Howard Weil Energy Conference – Delek Us Holdings – slide 6
    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…
  7. Scotia Howard Weil Energy Conference – Delek Us Holdings – slide 7
    Tyler Refinery Expansion and FCC Reactor Economics Completed in March 2015; Expected annual incremental EBITDA of 50 to 75 million Based on Incremental 10,000 to 15,000 bpd of Crude Slate crude throughput capacity 80 72.5k Estimated…
  8. Scotia Howard Weil Energy Conference – Delek Us Holdings – slide 8
    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,…
  9. Scotia Howard Weil Energy Conference – Delek Us Holdings – slide 9
    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…
  10. Scotia Howard Weil Energy Conference – Delek Us Holdings – slide 10
    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…
  11. Scotia Howard Weil Energy Conference – Delek Us Holdings – slide 11
    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…
  12. Scotia Howard Weil Energy Conference – Delek Us Holdings – slide 12
    Logistics Operational Update
  13. Scotia Howard Weil Energy Conference – Delek Us Holdings – slide 13
    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…
  14. Scotia Howard Weil Energy Conference – Delek Us Holdings – slide 14
    DKL: Improving EBITDA Solid EBITDA performance since IPO in Nov. 2012; Increased from projected 48.9 million to LTM 96.5 million 120.0 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 20.0…
  15. Scotia Howard Weil Energy Conference – Delek Us Holdings – slide 15
    DKL: Plans in Place for Future Growth New agreements effective January 1, 2015 until June 30, 2016 Paline Pipeline Increased volume and capacity usage rate from 2014 level Potential for utilization and/or capacity increase Two assets…
  16. Scotia Howard Weil Energy Conference – Delek Us Holdings – slide 16
    DKL: Potential EBITDA Growth (1) Visible Pathways for Growth Provide Potential for Continued EBTIDA Increase in Coming Quarters 2Q14 goal for 25 million to 35 million incremental annualized EBITDA in place in 1Q15 is on track. Expected…
  17. Scotia Howard Weil Energy Conference – Delek Us Holdings – slide 17
    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…
  18. Scotia Howard Weil Energy Conference – Delek Us Holdings – slide 18
    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…
  19. Scotia Howard Weil Energy Conference – Delek Us Holdings – slide 19
    Peer Comparisons (1) Current Yield as of 3/20/15 7.5% 5.5% 3.5% 6.8% 5.1% 5.7% 5.9% 4.5% 4.6% 5.0% 1.5% 3.5% 3.8% 1.9% 2.0% 2.1% -0.5% PSXP VLP MPLX MMP SXL WNRL EPD TLLP DKL PAA PBFX HEP Distributable Cash Flow Coverage Ratio…
  20. Scotia Howard Weil Energy Conference – Delek Us Holdings – slide 20
    Retail Operational Update
  21. Scotia Howard Weil Energy Conference – Delek Us Holdings – slide 21
    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…
  22. Scotia Howard Weil Energy Conference – Delek Us Holdings – slide 22
    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…
  23. Scotia Howard Weil Energy Conference – Delek Us Holdings – slide 23
    Current Retail Valuation Comparison Valuations moving higher than historical 6x-8x range EV/ 2015 EBITDA Average = 10.8x 12.8x 12.8x 9.0x 9.7x 9.8x CASY MUSA CAPL SUN CST (1) Source: Capital IQ; Feb. 26, 2015 24
  24. Scotia Howard Weil Energy Conference – Delek Us Holdings – slide 24
    Financial Update
  25. Scotia Howard Weil Energy Conference – Delek Us Holdings – slide 25
    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…
  26. Scotia Howard Weil Energy Conference – Delek Us Holdings – slide 26
    Peer Balance Sheet Metrics 4Q14 Net Debt/ LTM EBITDA 2.5x 1.5x 1.1x 0.9x 1.0x 0.1x 0.5x 0.3x 0.4x HFC DK VLO PSX WNR MPC ALJ TSO PBF (1) Source: Capital IQ 3/20/15; based on amounts that were reported in year end…
  27. Scotia Howard Weil Energy Conference – Delek Us Holdings – slide 27
    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. 28
  28. Scotia Howard Weil Energy Conference – Delek Us Holdings – slide 28
    Going Forward
  29. Scotia Howard Weil Energy Conference – Delek Us Holdings – slide 29
    Growing and Improving Asset Base Across all Segments (1) Retail Increasing Large Format Store Count Increasing Light Crude Capacity in Refining (2) (in 000 bpd) +25% 64 Potential 140 155 53 10-12 124 80 80 75 2015 66 58 60 Target…
  30. Scotia Howard Weil Energy Conference – Delek Us Holdings – slide 30
    Peer Comparison (1) EV/ LTM EBITDA 10.9x 9.1x 6.8x 6.4x 6.1x 4.5x 4.5x 4.9x 4.3x ALJ VLO WNR DK MPC PSX TSO HFC PBF (1) Source: Company reports; Capital IQ, March 20, 2015. Based on reported results for 2014, not…
  31. Scotia Howard Weil Energy Conference – Delek Us Holdings – slide 31
    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…
  32. Scotia Howard Weil Energy Conference – Delek Us Holdings – slide 32
    Appendix Additional Data
  33. Scotia Howard Weil Energy Conference – Delek Us Holdings – slide 33
    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…
  34. Scotia Howard Weil Energy Conference – Delek Us Holdings – slide 34
    Historical and Projected Capital Spending Refining Logistics (Marketing) Retail Other 256.9mm 22.4 222.3mm 218.1mm 26.2 35.0 7.2 15.9 17.2 20.8 37.9 132.0mm 5.1 26.5 81.0mm 201.1 56.8mm 29.1 7.6 164.2 10.5 144.3 0.1…
  35. Scotia Howard Weil Energy Conference – Delek Us Holdings – slide 35
    U.S. Refining Environment Trends Refined Product Margins and WTI-Linked Feedstock Favor Delek US (1) (2) (2) 50 Brent-WTI Cushing Spread Per Barrel WTI 5-3-2 Gulf Coast Crack Spread Per Barrel LLS 5-3-2 Gulf Coast Crack Spread Per…
  36. Scotia Howard Weil Energy Conference – Delek Us Holdings – slide 36
    Access to Midland Crudes Benefits Margins WTI Midland vs. WTI Cushing Crude Pricing ( per barrel) 0.00 (2.00) (4.00) (6.00) 97,000 bpd of (8.00) Midland crude in DK system (10.00) (12.00) (14.00) Source:…
  37. Scotia Howard Weil Energy Conference – Delek Us Holdings – slide 37
    Non-GAAP Reconciliation Delek US Contribution Margin Reconciliation ( in millions) Year Ended 12/31 2008 2009 2010 2011 2012 2013 2014 Net sales 4,723.7 2,666.7 3,755.6 7,198.2 8,726.7 8,706.8 8,324.3 Cost of goods sold 4,308.1…
  38. Scotia Howard Weil Energy Conference – Delek Us Holdings – slide 38
    Investor Relations Contact: Assi Ginzburg Keith Johnson Chief Financial Officer Vice President of Investor Relations 615-435-1452 615-435-1366

From the store

Browse maps, data & reports in the Shale Experts store