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Delek Logistics Partners, LP
Investor Presentation
August 2016
2
Disclaimers
These slides and any accompanying oral and written presentations contain forward-looking statements by Delek Logistics Partners, LP
(defined as “we”, “our”) that are based upon our current expectations and involve a number of risks and uncertainties. Statements
concerning current estimates, expectations and projections about our future results, performance, prospects and opportunities and
other statements, concerns, or matters that are not historical facts are "forward-looking statements," as that term is defined under
United States securities laws.
Investors are cautioned that the following important factors, among others, may affect these forward-looking statements: our
substantial dependence on Delek US Holdings, Inc. (“Delek”) (NYSE: DK) or its assignees and their respective ability to pay us under our
commercial agreements; risks and costs relating to the age and operational hazards of our assets including, without limitation, costs,
penalties, regulatory or legal actions and other affects related to releases, spills and other hazards inherent in transporting and storing
crude oil and intermediate and finished petroleum products; the timing and extent of changes in commodity prices and demand for
crude oil and refined products; the suspension, reduction or termination of Delek's or its assignees' or any third-party's obligations
under our commercial agreements; and other factors discussed in our other filings with the United States Securities and Exchange
Commission.
Forward-looking statements should not be read as a guarantee of future performance or results and will not be accurate indications of
the times at, or by which such performance or results will be achieved. Forward-looking information is based on information available
at the time and/or management's good faith belief with respect to future events, and is subject to risks and uncertainties that could
cause actual performance or results to differ materially from those expressed in the statements. We undertake no obligation to update
or revise any such forward-looking statements.
Non-GAAP Disclosures:
Delek Logistics believes that the presentation of EBITDA and distributable cash flow provide useful information to investors in
assessing its financial condition, its results of operations and the cash flow its business is generating. EBITDA and distributable cash
flow should not be considered as alternatives to net income, operating income, cash from operations or any other measure of financial
performance or liquidity presented in accordance with U.S. GAAP. EBITDA and distributable cash flow have important limitations as
analytical tools because they exclude some, but not all items that affect net income and net cash provided by operating activities.
Additionally, because EBITDA and distributable cash flow may be defined differently by other partnerships in its industry, Delek
Logistics' definitions of EBITDA and distributable cash flow may not be comparable to similarly titled measures of other partnerships,
thereby diminishing their utility. Please see reconciliations of EBITDA and distributable cash flow to their most directly comparable
financial measures calculated and presented in accordance with U.S. GAAP in the appendix.
Investment Highlights
(1) Based on price per common limited unit as of trading on August 5, 2016.
(2) Annualized distribution based on quarterly distribution for quarter ended June 30, 2016, to be paid on August 12, 2016.
(3) For reconciliation please refer to pages 28 and 29.
(4) Annualized EBITDA estimates based on expected performance at the time of purchase. Actual results will and have changed based on among other things, market conditions, operating rates
and expenses.
(5) Currently 4.90% of the ownership interest in the general partner is owned by three members of senior management of Delek US (who are also directors of the general partner). The remaining
ownership interest is held by a subsidiary of Delek US.
3
•Current Price: $25.33/unit (1)
•Market Capitalization: $615 million (1)
•Current Distribution: $0.63/LP unit qtr.; $2.52/LP unit annualized(2)
•Current Yield: 9.95% (1)(2)
Overview (NYSE: DKL)
• 2Q16 Net income of $18.9m and Distributable Cash Flow (DCF)
coverage ratio of 1.31x
• $329.9 million credit availability at Jun. 30, 2016; leverage 3.47x
• 2Q16 DCF $23.7m and EBITDA $27.1mm (3)
Conservative Financial Position
•Primarily traditional MLP assets/structure
• Inflation-indexed fees for most contracts
•Primarily long initial term fee-based contracts with minimum volume
commitments
Stable Cash Flow Focused
• Eight acquisitions since July 2013; including estimated $27.3m initial
annualized EBITDA from four drop downs(4)
•Entered into two joint venture pipeline development projects in
March 2015 with expected completion July 2016 and January 2017
Growth Oriented
• Delek US (NYSE: DK)
•Currently owns approximately 62%, incl. 2% GP interest (5)
•Majority of DKL assets support DK refining system
Sponsor
Delek US – A Growth Oriented, Financially Strong Sponsor
• 155,000 bpd of refining capacity in Texas and Arkansas
• Access to crude / product terminals, pipeline and storage assets
• 348 Convenience stores (1)
Operational Strength
(1) As of June 30, 2016 financial statements in the Delek US 10Q filed on August 5, 2016.
(2) As of August 5, 2016 trading for Delek US stock.
(3) Consists of ownership in Delek Logistics Partners.
Strategically Located Refineries Provide Crude Oil Supply Flexibility and Broad Product Distribution(1)
• $881 million equity market value and $1.4 billion enterprise value(1)(2)
• $564.3 million net debt at June 30, 2016; $377.1 million in cash (1)
Financial Strength
REFINING SEGMENT
155,000 BPD in total
El Dorado, AR
80,000 BPD
10.2 complexity
Tyler, TX
75,000 BPD
8.7 complexity
348 Stores
Locations in 7 states
Primarily TN, AL, GA
RETAIL SEGMENT
9 Terminals
Approx. 1,250 miles of pipelines
8.5 million bbls storage capacity
LOGISTICS SEGMENT (3)
4
Delek Logistics Partners, LP
Overview
Stable Asset Base Positioned for Growth
6
~765 miles (1) of crude
and product
transportation
pipelines, including the
195 mile crude oil
pipeline from Longview
to Nederland, TX
~ 600 mile crude oil
gathering system in AR
Storage facilities with
6.2 million barrels of
active shell capacity
Rail Offloading Facility
Pipelines/Transportation
Segment
Wholesale and
marketing business in
Texas
9 light product
terminals: TX, TN, AR
Approx. 2.3 million
barrels of active shell
capacity
Wholesale/ Terminalling
Segment
Growing logistics assets support crude sourcing and product marketing for customers
1) Includes approximately 240 miles of leased pipeline capacity.
Improving Performance and Financial Flexibility to Support Growth
7
1) Amounts provided in the Nov. 1, 2012 IPO prospectus showing pro forma results forecasted performance for 12 months ending Sept. 30, 2013. Reconciliation on pg. 28
2) Reconciliation provided on page 28. Results in 2013 and 2014 are as reported excluding predecessor costs related to the drop down of the tank farms and product terminals at both Tyler and El Dorado
during the respective periods. Also, excluded are predecessor costs related to the crude oil storage tank and rail offloading racks acquired in March 2015. Tyler assets were acquired in July 2013 and El
Dorado assets acquired Feb. 2014.
3) Reconciliation on pg. 28.
4) Reconciliation on pg. 29
Solid Net Income and EBITDA performance since IPO in Nov. 2012
$48.9
$63.8
$95.4 $96.5 $100.5
$36.0
$47.8
$72.0 $66.8 $68.2
$0.0
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
Forecast 12 Months Ended
9/30/13(1)
2013 (2) 2014 (2) 2015(3) LTM 6/30/16
$
in
m
ill
io
n
s
EBITDA Net Income
$52.9
$80.3 $81.1
$37.6
$44.1
$0.0
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
$70.0
$80.0
$90.0
2013 2014 2015 YTD 2Q15 YTD 2Q16
$
in
m
ill
io
n
s
Distributable Cash Flow
Increased DCF supported distribution growth (4)
$164.8
$251.8
$351.6 $362.6
$223.2
$440.8
$347.0 $329.9
-$50
$50
$150
$250
$350
$450
$550
$650
$750
Dec. 31, 2013 Dec. 31, 2014 Dec. 31, 2015 Jun. 30 2016
$
in
m
ill
io
n
s
Borrowings Excess Capacity
Financial Flexibility to support continued growth
Growth Initiatives Improved EBITDA Since 2012
8
1) Amounts provided in the Nov. 1, 2012 IPO prospectus showing forecasted performance for 12 months ending Sept. 30, 2013.
2) Bridge compared to the forecast provided in the prospectus based on difference in performance during the 12 months ending March 31, 2016 as compared to projected amounts in the prospectus.
Please see page 28 for reconciliations.
Solid EBITDA performance since IPO in Nov. 2012; Increased from projected $48.9(1) million to LTM $100.5 million
$48.9
$100.5
-$10.0
$10.0
$30.0
$50.0
$70.0
$90.0
$110.0
$130.0 EBITDA, $ in millions
$12.3
$13.1
$2.1
$31.7 ($10.7)
($2.9) $2.9
$7.5
Increased Distribution with Conservative Coverage and Leverage
9
Distribution per unit has been increased fourteen consecutive times since the IPO
$0.375 $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
MQD (1) 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16
1.39x 1.32x 1.38x 1.30x
1.61x
2.01x
1.42x
1.67x
1.23x
1.47x 1.50x
1.17x 1.19x 1.31x
1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 3Q 15 4Q15 1Q16 2Q16
Avg. 1.35x in 2013
Avg. 1.69x in 2014
Avg. 1.37x in 2015
Distributable Cash Flow Coverage Ratio (2)(3)
1.70x 1.58x
2.28x 2.40x
3.21x
2.69x
2.55x 2.56x
3.00x 3.14x 3.11x
3.49x
3.48x 3.47x
1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16 2Q 16
Revolver Leverage Ratio (4)
(1) MQD = minimum quarterly distribution set pursuant to the Partnership Agreement.
(2) Distribution coverage based on distributable cash flow divided by distribution amount in each period. Please see page 29 for reconciliation.
(3) 2Q16 based on total distributions paid on August 12, 2016.
(4) Leverage ratio based on LTM EBITDA as defined by credit facility covenants for respective periods.
DKL: Potential Growth (1)
$68.2
$100.5
$0.0
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
$140.0
$160.0
LTM Net Income 6/30/16 LTM EBITDA 6/30/16 Pipeline Joint Ventures (2) Potential Retail Drop (3)
$ in millions *
Potential Retail asset drop
down from Delek US
8x to 10x EBITDA target
10
• Options for Growth Provide Potential for EBITDA Increase in Coming Quarters (1)
Estimated EBITDA
range.
Currently evaluating
feasibility of a
potential drop down
From DK.
DK has stated it is
evaluating options to unlock
the value of retail, one
option could be a drop down.
Caddo Pipeline
DKL 50%/
Plains 50%
RIO Pipeline
DKL 33%/
Rangeland 67%
Exp. Inv. $99.0m
(1) LTM 6/30/16 net income and EBITDA and net income based on information provided in this presentation (page 28).
(2) Joint venture projects are expected to be completed in August 2016 for RIO and January 2017 for Caddo. Estimated capital investment is approximately $99.0 million, is subject to change
pending any revisions for construction schedule changes, and will vary based on actual construction cost of the projects. Estimated project multiple range based on DKL target once assets
are fully utilized following a ramp up period.
(3) Our sponsor, Delek US, has announced that it is exploring options to unlock the value of its retail assets, one of which may create a drop down opportunity. DKL is currently evaluating the
feasibility of this transaction, although there is no guarantee that an agreement will be entered into or completed. Represents an estimated EBITDA range for a potential retail asset drop
down from Delek US (based on 1Q16 and 4Q15 release/conference call from Delek US), actual amount will depend on assets that are included in any potential transaction
*Estimated ranges; actual results subject to market conditions, operating performance and tariff rates.
Acquisition EBITDA multiples have been below 10x (1)
Provided stable fee based growth
11
Growth strategy to target acquisitions with 8x-10x EBITDA multiple range with potential to improve performance
9.0x
8.1x
6.3x
9.5x
7.9x
4.8x
9.2x
0.0x
1.0x
2.0x
3.0x
4.0x
5.0x
6.0x
7.0x
8.0x
9.0x
10.0x
Tyler Tank Farm
and Product
terminal
(drop down)
July 2013
Hopewell Pipeline
(3rd Party)
July 2013
North Little Rock
Terminal
(3rd Party)
Oct. 2013
El Dorado Tank
Farm and Terminal
(drop down)
Feb. 2014
Mt. Pleasant
System
(3rd Party)
Oct. 2014
Frank Thompson
Transport
(3rd Party)
Dec. 2014
Rail
Offloading/Crude
Oil Storage
(drop down)
Mar. 2015
Average
1) Annualized EBITDA estimates based on expected performance at the time of purchase. Results will and have changed based on among other things, market conditions, operating rates
and expenses.
Recent Events
12
Paline Pipeline
■ Increased flexibility to evaluate options following June 30, 2016 contract change
■ Potential to reverse flow to move crude from Gulf Coast to Longview, Texas
■ Evaluate ability to increase utilization and/or capacity
Pipeline
Development
Projects
■ Caddo Pipeline - DKL (50%)/Plains All American (50%)
■ Location: Longview, TX to Shreveport, LA
■ Expected Completion: Jan. 2017
■ Rio Pipeline Project - Rangeland Energy (67%)/ DKL (33%)
■ Location: Loving County, TX to Midland, TX area
■ Expected Completion: Aug. 2016
■ Delek US expected to be an anchor shipper on each project
Joint Venture Pipeline Projects
13
Caddo Pipeline
■ DKL (50%)/Plains (50%)
■ Est. total cost: $120 million (1)
■ Capacity: 80,000 bpd
■ Length: 80 miles
■ Expected Completion: Jan. 2017
Rio Pipeline
■ Rangeland (67%)/ DKL (33%)
■ Cost: $119 million
■ Capacity: 55,000 bpd
■ Length: 107 miles
■ Expected Completion: Aug. 2016
(1) Estimated investment pending any change due to construction revisions at Caddo. Actual will vary based on final construction cost of each project.
Segment Overview
Lion Pipeline System and SALA Gathering
15
SALA Gathering System
• Provides access to local Arkansas, east Texas
and north Louisiana crudes to Delek US’ El
Dorado refinery.
• 600 mile crude oil gathering system,
primarily within a 60-mile radius of the El
Dorado refinery.
15,813 15,900
17,676
20,747
22,152 22,656
20,673 21,421
18,645
-
5,000
10,000
15,000
20,000
25,000
30,000
2009 2010 2011 2012 2013 2014 2015 YTD
2Q15
YTD
2Q16
B
ar
re
ls
p
er
d
ay
SALA Gathering
Crude Volume (bpd) (1)
46,027 46,515 47,906
54,960 55,267
56,322
45,220
49,694
53,461
57,366 57,258 53,725
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2012 2013 2014 2015 YTD 2Q15 YTD 2Q16
B
ar
re
ls
p
er
d
ay
Lion Pipeline System
Crude Volume (bpd) Refined product (bpd)
Lion Pipeline System
• Provides non-gathered crude oil to Delek US’
El Dorado refinery and connects to
Enterprise TE Products Pipeline to move
finished products.
• Crude and light product throughput
benefitted from improvements at Delek US’
El Dorado refinery completed in 1Q14
turnaround that increased light crude
capability by 10,000 bpd.
(1) Delek US acquired majority ownership of Lion Oil in April 2011. Volumes in 2011 are based on 247 days of operations following the acquisition. Amounts in 2009 and 2010 are based on
previous ownership data.
Terminalling and West Texas Wholesale Business
16
West Texas Wholesale and Marketing
• Operates in an area around the Permian Basin
• Purchases refined products from third parties
for resale at owned and third party terminals in
west Texas.
• Includes ethanol blending activity.
18.5
12.6
75.4
96.8
106.5
90.6
122.6
2011 2012 2013 2014 2015 YTD
2Q15
YTD
2Q16
Volume, 000 bpd
Terminalling Assets
• Refined products terminalling services for Delek
and/or third parties.
• Comprised of terminals located in:
• Memphis and Nashville, TN;
• Tyler, Big Sandy (1) and Mt. Pleasant, TX;
• El Dorado and North Little Rock, AR
• Delek US’ Tyler refinery turnaround and
expansion lowered volumes in 1Q15
• DKL positioned to support 15 kbpd
expansion
(1) Was not operating during 2011, 2012 and majority of 2013, however, contract
with Delek has a minimum throughput requirement of 5,000 bpd along with a
minimum storage requirement.
Note: For reporting purposes, San Angelo and Abilene terminals are included in the west
Texas wholesale business. The remaining are in terminalling.
-
2
4
6
8
10
2011 2012 2013 2014 2015 1Q16
Increasing Terminal Count
Drop Down Terminals Other Terminals
West Texas Wholesale
$7.2 $7.6
$8.5
$15.5 $14.0
$28.5
$8.1
$4.2
$2.5
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
2009 2010 2011 2012 2013
(2)
2014
(2)
2015
(2)
YTD
2Q15
(2)
YTD
2Q16
(2)
Gross margin, $ in millions
13,377
bpd
14,353
bpd
15,493
bpd
16,523
bpd
18,156
bpd
16,707
bpd
16,357
bpd
17,070
bpd 13,482
bpd
(1) Includes effect of Delek US’ Tyler refinery turnaround during 1Q 2015.
(2) 2013 west Texas gross margin per barrel includes $0.99/ bbl associated with approximately $6.4 million of gross margin related to ethanol RINs sold during the period. 2014 gross margin
included $4.6 million or $0.75/ bbl. 2015 gross margin included $5.3 million or $0.89/ bbl from RINS. YTD 2Q15 had $3.4 million or $1.10/ bbl; YTD 2Q16 had $2.8m or $1.15/bbl from RINs.
Paline Pipeline
17
Approximately 195 mile crude oil pipeline -
Mainline pipeline flows from north to south
10,000 bpd of mainline capacity reserved for a third
party to use exclusively from July 1, 2016 to
December 31, 2016.
40-day hydro testing scheduled for 3Q16; required
every five years
Began in July and expected completion is
expected by the end of August
Flexibility to explore options for available capacity
on this pipeline
Evaluations of potential increases in
utilization and capacity of Paline system may
offer future growth
Explore ability to reverse to flow from the
Gulf Coast to allow potential shippers to take
advantage of crude oil price differentials
Note: The previous contract that expired on June 30, 2016 had 35,000 bpd of mainline capacity reserved for third parties to use exclusively during a term that began on
January 1, 2015. DKL elected to extend the contract in its current format from July 1, 2016 to December 31, 2016.
Going Forward
Several Visible Pathways for Potential Growth
19
Organic Growth
Acquisitive
Growth
Evaluate Paline Pipeline for potential future utilization and/or capacity increase
Increasing activity in Arkansas gathering system
Potential expansion of the North Little Rock terminal to 17,500 bpd
Proven ability to make 3rd party acquisitions (2 completed in 2013, 2 completed in 2014)
Ability to utilize relationship with Delek US to make acquisitions
Benefit from
Growth
Improvement in throughput capability and/or flexibility at Delek US’ refineries(1)
El Dorado refinery increased light crude processing capability by 10,000 bpd in 1Q’14
Tyler refinery expansion added 15,000 bpd crude throughput capacity in 1Q’15
Asset
Development
Delek US continues to develop assets to support its operations
Potential future drop downs could include: Retail, Trucking and Rail Cars
Ability to Leverage Relationship with Delek US
Ability to Grow Independently
(1) Based on Delek US’ announced changes for its refineries; actual results may vary based on each refinery’s respective operating rate.
Benefit from
Acquisitions
Delek US owns 48% of the outstanding common stock of Alon USA (NYSE:ALJ)
May create the potential for future DKL growth opportunities
Project
Development
Crude oil pipeline construction projects underway through two joint ventures
Creates platform for future projects
Peer Comparisons (1)
20
Current Yield as of 8/5/16
Distributable Cash Flow Coverage Ratio (1)
Leverage Ratio (2)
1.1x 1.1x 1.1x 1.2x 1.3x
1.4x 1.4x 1.4x 1.5x 1.5x 1.5x
1.8x
0.0x
0.5x
1.0x
1.5x
2.0x
HEP PAA SXL WNRL DKL TLLP EPD MPLX MMP PSXP PBFX VLP
2.5x 3.4x 3.5x 3.5x
4.0x 4.4x 4.7x
6.0x 6.0x 6.4x
7.2x
-
2.0
4.0
6.0
8.0
VLP WNRL DKL MMP HEP TLLP EPD SXL PSXP PAA MPLX
10.0% 9.9%
7.8% 7.1% 6.9% 6.8% 6.8% 6.2% 5.9% 4.7% 4.0% 3.6%
0.0%
5.0%
10.0%
15.0%
PAA DKL PBFX TLLP HEP WNRL SXL MPLX EPD MMP PSXP VLP
(1) DKL based on 2Q 2016 reported results. Peer information based on Q1 2016 data as reported by MLPdata.com. Peer information not updated due to timing of results reported during
earning season.
(2) DKL based on 2Q 2016 reported results. Peer information based on Capital IQ 8/4/16. Peer information may not be updated due to timing of results reported during earning season.
21
Questions and Answers
Majority of assets support
Delek US‘ strategically
located inland refining
system
Inflation-indexed fees for
most contracts
Majority of all margin
generated by long term,
fee-based contracts with
volume minimums
Agreements with Delek US
cap maintenance capex and
limit Delek US force
majeure abilities
Limited commodity price
exposure
Primarily Traditional,
stable MLP assets
Appendix
Delek US' Refineries are Strategically Positioned and Flexible
23
Inland refinery located in East Texas
75,000 bpd, 8.7 complexity
Primarily processes inland light sweet crudes
(100% in 2014)
94% yield of gasoline, diesel and jet fuel in
2014
El Dorado Refinery (1) Tyler Refinery (1)
Inland refinery located in southern Arkansas
80,000 bpd, 10.2 complexity
(configured to run light or medium sour
crude)
Supply flexibility that can source West Texas,
locally produced, and/or Gulf Coast crude
89% yield of gasoline and diesel in 2014
Associated gathering system positioned for
Brown Dense development
(1) As reported by Delek US.
Summary of Certain Contracts (9)
24
Initial / Maximum Term (1) Service
6 Months Ended Jun. 30, 2016
Throughput (bpd)(2)
Minimum
Commitment (bpd) Current Tariff / Fee
Tariff / Fee
Index (11)
Refinery
Shutdown Force Majeure
July 1 to Dec. 31, 2016 N/A N/A $400,000/Month (6) FERC N/A N/A
N/A N/A
Five / Fifteen Years Crude Oil Transportation 56,322 46,000 (3) $0.9464/Bbl (4) FERC
Five / Fifteen Years
Refined Products
Transportation 53,725 40,000 $0.11130/Bbl FERC
Five / Fifteen Years Crude Oil Gathering 18,645 14,000 $2.50520/Bbl (4) FERC
Five / Fifteen Years Crude Oil Transportation 11,127 35,000 $0.44540/Bbl (5) FERC
Five / Fifteen Years Crude Oil Storage N/A N/A $278,370 per month FERC
Ten (7) Marketing - Tyler Refinery 68,301 50,000
$0.62480/bbl + 50% of the agreed
margin (8) CPI-U
Five / Fifteen Years
Dedicated Terminalling
Services 8,100 10,000 $0.55670/Bbl FERC
Eight / Sixteen Years
Dedicated Terminalling
Services 10,933 8,100 $0.2310/Bbl PPI-fg
Eight / Sixteen Years Storage N/A N/A $63,000 per month PPI-fg
Five / Fifteen Years
Dedicated Terminalling
Services 7,162 5,000 $0.5554/Bbl FERC
Four / Fourteen Years
Refined Products
Transportation 7,162 5,000 $0.5554/Bbl FERC
Five / Fifteen Years Storage N/A N/A $55,625 per month FERC
Eight / Sixteen Years
Dedicated Terminalling
Services 70,934 50,000 $0.3500/Bbl PPI-fg
Eight / Sixteen Years Storage N/A N/A $829,823 per month PPI-fg
Eight / Sixteen Years Crude Oil Storage N/A N/A $180,000 per month PPI-fg Not applicable to this asset
Eight / Sixteen Years
Dedicated Terminalling
Services 16,898 11,000 $0.5000/Bbl PPI-fg
Eight / Sixteen Years Storage N/A N/A $1.3 million per month PPI-fg
Nine / Fifteen Years Crude Oil Offloading (10) N/A N/A $1.00/bbl light; $2.25/bbl heavy PPI-fg
Tyler
Big Sandy Terminal & Pipeline
Lion Pipeline System (and SALA Gathering System)
El Dorado
Paline Pipeline
East Texas Marketing
Memphis Terminal
Termination Provision
East Texas Crude Logistics
North Little Rock Terminal
Crude Oil Capacity Usage
Agreement
After 1st two
years, 12
months
notice
required
After 3rd
year, 12
months
notice;
unless min.
payments
made then
cannot be
terminated
by Delek
Logistics
Summary of Certain Contracts - footnotes
25
(1) Maximum term assumes an extension of the commercial agreement pursuant to the terms thereof. Please note some terms began as early as Nov. 7,
2012.
(2) Represents average daily throughput for the period indicated.
(3) Excludes volumes gathered on the SALA Gathering System.
(4) Volumes gathered on the SALA Gathering System will not be subject to an additional tariff fee for transportation on the Lion Pipeline System to the El
Dorado refinery.
(5) For any volumes in excess of 50,000 bpd, the throughput fee will be $0.6819/bbl.
(6) Capacity lease agreement for 35,000 bpd equates to approximately $1,700,000 per month from Jan. 1, 2015 to Jun. 30, 2016 that entitles third parties to
their respective capacities on this pipeline. From July 1, 2016 to December 31, 2016 the capacity lease agreement is for 10,000 bpd and equates to
approximately $400,000 per month. Additional volume above 10,000 bpd may be used by shippers as needed.
(7) Following the primary term, the marketing agreement automatically renews for successive 1-yr terms unless either party provides notice of non-renewal
10 months prior to the expiration of the then-current term.
(8) Delek US has agreed to pay the Partnership 50% of the margin, if any, above an agreed base level generated on the sale as an incentive fee, provided that
the incentive fee will be not less than $175,000 nor greater than $500,000 per quarter.
(9) For more detailed information regarding certain contracts, refer to documents filed with the SEC, including the Annual Reports filed on Form 10-K,
Quarterly Report filed on Form 10-Q, Current Reports on Form 8-K and 8-K/A filed on Nov. 7, 2012, Jul. 31, 2013, Aug. 1, 2013, Feb. 14, 2014 and Apr. 6,
2015.
(10) Crude oil offloading throughput agreement includes an obligated minimum quarterly throughput fee of $1.5 million for throughput of a combination of
light and heavy crude.
(11) The tariff/fee index can increase or decrease based on the index change pursuant to each contract.
Amended and Restated Omnibus Agreement
26
Key Provisions
Delek US will indemnify Delek Logistics for certain liabilities, including environmental and other liabilities, relating to
contributed assets.
Delek US has a ROFR if Delek Logistics sells any assets that serves Delek US' refineries or the Paline Pipeline.
GP will not receive a management fee from the Partnership; Delek Logistics will pay Delek US an annual fee for G&A
services and will reimburse the GP and/or Delek US for certain expenses.
Limitations on exposure to assets contributed by Delek US relative to maintenance capital expenditures and certain
expenses associated with repair/clean-up related events.
For additional detailed information regarding this agreement, please refer to documents filed with the SEC, including the
Current Report on Form 8-K filed Apr. 6, 2015 and the quarterly report 10Q filed August 6, 2015, as amended on
November 6, 2015.
Summary Organization Structure
27
38.3% interest
Limited partner-common
95.10%
ownership interest (1)
2.0% interest
General partner interest
Incentive distribution rights
Delek Logistics Partners, LP
NYSE: DKL
(the Partnership)
100% ownership interest
Public Unitholders
Operating Subsidiaries
59.7% interest
Limited partner-common
Delek Logistics GP, LLC
(the General Partner)
Delek US Holdings, Inc.
NYSE: DK
(1) Currently a 4.90% interest in the Delek US ownership interest in the general partner is held by three members of senior management of Delek US. The remaining ownership interest will be
indirectly held by Delek.
Income Statement and Non-GAAP EBITDA Reconciliation
28
(1) Includes approximately $2.0 million of estimated annual incremental general and administrative expenses expected to incur as a result of being a separate publicly traded partnership.
(2) Interest expense and cash interest both include commitment fees and interest expense that would have been paid by the predecessor had the revolving credit facility been in place during the 12
months ended 9/30/13 period presented and Delek Logistics had borrowed $90.0 million under the facility at the beginning of the period. Interest expense also includes the amortization of debt
issuance costs incurred in connection with our revolving credit facility.
(3) Forecast provided in the IPO prospectus on Nov. 1, 2012.
(4) Results in 2013 and 2014 are as reported excluding predecessor costs related to the drop down of the tank farms and product terminals at both Tyler and El Dorado during the respective periods.
(5) Results for 1Q15 are as reported excluding predecessor costs related to the 1Q15 drop downs.
Note: May not foot due to rounding.
Forecast12 Months
9/30/13
(1)(2)(3) 1Q13 (4) 2Q13(4) 3Q13(4) 4Q13(4) 2013(4) 1Q14(4) 2Q14 3Q14 4Q14 2014 1Q15(5) 2Q15 3Q15 4Q15 2015 1Q16 2Q16
Total Net Sales $797.1 $210.9 $230.1 $243.3 $223.1 $907.4 $203.5 $236.3 $228.0 $173.3 $841.2 $143.5 $172.1 $165.1 $108.9 $589.7 $104.1 $111.9
Cost of Goods Sold (721.8) (187.9) (208.0) (218.2) (197.3) (811.4) (172.2) (196.6) (194.1) (134.3) (697.2) (108.4) (132.5) (124.4) (71.0) (436.3) (66.8) (73.1)
Operating Expenses (18.7) (5.9) (6.1) (6.6) (7.2) (25.8) (8.5) (9.5) (10.2) (9.7) (38.0) (10.6) (10.8) (11.6) (11.7) (44.8) (10.5) (8.7)
Contribution Margin $56.6 $17.2 $16.1 $18.4 $18.6 $70.3 $22.8 $30.2 $23.7 $29.3 $106.0 $24.5 $28.8 $29.1 $26.2 $108.6 $26.8 $30.0
Depreciation and Amortization (9.3) (2.4) (2.4) (2.6) (3.4) (10.7) (3.4) (3.5) (3.7) (3.9) (14.6) (4.0) (4.7) (4.5) (5.9) (19.2) (5.0) (4.8)
General and Administration Expense (7.7) (1.7) (1.1) (1.8) (1.7) (6.3) (2.6) (2.2) (2.5) (3.3) (10.6) (3.4) (3.0) (2.7) (2.3) (11.4) (2.9) (2.7)
Gain (Loss) on Asset Disposal - - - - (0.2) (0.2) - (0.1) - - (0.1) - - - (0.1) (0.1) 0.0 -
Operating Income $39.6 $13.1 $12.6 $14.0 $13.3 $53.2 $16.8 $24.4 $17.5 $22.1 $80.8 $17.1 $21.1 $21.8 $17.9 $77.9 $19.0 $22.5
Interest Expense, net (3.6) (0.8) (0.8) (1.2) (1.8) (4.6) (2.0) (2.3) (2.2) (2.1) (8.7) (2.2) (2.6) (2.8) (3.0) (10.7) (3.2) (3.3)
Loss on Equity Method Invesments (0.1) (0.3) (0.1) (0.6) (0.2) (0.2)
Income Taxes - (0.1) (0.1) (0.3) (0.2) (0.8) (0.1) (0.3) (0.2) 0.5 (0.1) (0.3) (0.1) (0.1) 0.6 0.2 (0.1) (0.1)
Net Income $36.0 $12.2 $11.8 $12.5 $11.3 $47.8 $14.7 $21.8 $15.1 $20.5 $72.0 $14.6 $18.3 $18.6 $15.3 $66.8 $15.4 $18.9
EBITDA:
Net Income $36.0 $12.2 $11.8 $12.5 $11.3 $47.8 $14.7 $21.8 $15.1 $20.5 $72.0 $14.6 $18.3 $18.6 $15.3 $66.8 $15.4 $18.9
Income Taxes - 0.1 0.1 0.3 0.2 0.8 0.1 0.3 0.2 (0.5) 0.1 0.3 0.1 0.1 (0.6) (0.2) 0.1 0.1
Depreciation and Amortization 9.3 2.4 2.4 2.6 3.4 10.7 3.4 3.5 3.7 3.9 14.6 4.0 4.7 4.5 5.9 19.2 5.0 4.8
Interest Expense, net 3.6 0.8 0.8 1.2 1.8 4.6 2.0 2.3 2.2 2.1 8.7 2.2 2.6 2.8 3.0 10.7 3.2 3.3
EBITDA $48.9 $15.5 $15.0 $16.6 $16.7 $63.8 $20.2 $27.9 $21.2 $26.1 $95.4 $21.1 $25.7 $26.1 $23.6 $96.5 $23.7 $27.1
Delek Logistics Partners LP Income Statement and EBITDA Reconciliation
Reconciliation of EBITDA and Cash Available for Distribution
29
(1) Forecast period for twelve month period ending 9/30/2013 EBITDA is reconciled to net income on page 28.
(2) Distribution for forecast period based on $1.50 per unit; Distribution for year ended December 31, 2013 , 2014 and 2015 and year to date 2016 based on actual amounts distributed during the
periods; does not include a LTIP accrual. Coverage is defined as cash available for distribution divided by total distribution.
(3) Forecast for twelve month period ending 9/30/2013 as provided in the Nov. 1, 2012 prospectus.
(4) Results in 2013 and 2014 are as reported excluding predecessor costs related to the drop down of the tank farms and product terminals at both Tyler and El Dorado during the respective
periods.
(5) Results for 1Q15 are as reported excluding predecessor costs related to the 1Q15 drop downs.
Note: May not foot due to rounding.
Forecast
(dollars in millions)
12 Months
9/30/13 (1)(3) 1Q13 (4) 2Q13(4) 3Q13(4) 4Q13(4) 2013 (4) 1Q14 (4) 2Q14 3Q14 4Q14 2014 (4) 1Q15(5) 2Q15 3Q15 4Q15 2015 (5) 1Q16 2Q16
Reconciliation of EBITDA to net cash from operating activities
Net cash provided by operating activities $2.0 $18.7 $19.9 $8.9 $49.4 $14.4 $31.2 $20.1 $20.8 $86.6 $15.9 $30.8 $20.2 $1.3 $68.2 $26.4 $31.2
Amortization of unfavorable contract liability to revenue 0.7 0.7 0.6 0.7 2.6 0.7 0.7 0.7 0.7 2.7 - - - - - - -
Amortization of deferred revenue - - - - - - - - 0.1 0.1 0.1 0.1 - 0.3 0.5 0.2 0.4
Amortization of deferred financing costs (0.2) (0.2) (0.2) (0.4) (1.0) (0.3) (0.3) (0.3) (0.3) (1.3) (0.4) (0.4) (0.4) (0.4) (1.5) (0.4) (0.4)
Accretion of asset retirement obligations (0.0) (0.1) (0.0) (0.1) (0.2) (0.1) (0.1) (0.1) 0.0 (0.2) (0.1) (0.1) (0.1) (0.1) (0.3) (0.1) (0.1)
Deferred income taxes 0.0 0.0 (0.1) (0.3) (0.3) 0.0 (0.1) (0.0) 0.2 0.1 (0.2) 0.2 0.0 0.0 (0.0) - -
Loss on equity method investments - - - - - - - - - - - (0.1) (0.3) (0.1) (0.6) (0.2) (0.2)
Gain (Loss) on asset disposals - - - (0.2) (0.2) - (0.1) - (0.0) (0.1) (0.0) 0.0 - (0.1) (0.1) 0.0 -
Unit-based compensation expense - (0.1) (0.1) (0.3) (0.5) (0.1) (0.1) (0.1) (0.1) (0.3) (0.1) (0.1) (0.1) (0.1) (0.4) (0.1) (0.1)
Changes in assets and liabilities 12.1 (4.8) (5.1) 6.3 8.6 3.4 (6.0) (1.5) 3.0 (1.0) 3.3 (7.3) 3.7 20.5 20.2 (5.4) (7.1)
Income tax expense 0.1 0.1 0.3 0.2 0.8 0.1 0.3 0.2 (0.5) 0.1 0.3 0.1 0.1 (0.6) (0.2) 0.1 0.1
Interest expense, net 0.8 0.8 1.2 1.8 4.6 2.0 2.3 2.2 2.1 8.7 2.2 2.6 2.8 3.0 10.7 3.2 3.3
EBITDA $15.5 $15.0 $16.6 $16.7 $63.8 $20.2 $27.9 $21.2 $26.1 $95.4 $21.1 $25.7 $26.1 $23.6 $96.5 $23.7 $27.1
Reconciliation of distributable cash flow to EBITDA
EBITDA $48.9 $15.5 $15.0 $16.6 $16.7 $63.8 $20.2 $27.9 $21.2 $26.1 $95.4 $21.1 $25.7 $26.1 $23.6 $96.5 $23.7 $27.1
Cash Interest (3.1) (0.6) (0.6) (1.0) (1.4) (3.6) (1.7) (2.0) (1.9) (1.8) (7.4) (1.8) (2.3) (2.5) (2.7) (9.2) (2.8) (2.9)
Capital Improvement Expenditures (5.7) - - - - - - - - - - - - - - - - -
Maint. & Reg. Capital Expenditures (10.8) (1.3) (1.1) (1.0) (1.8) (5.1) (0.8) (1.0) (0.8) (3.9) (6.0) (3.3) (3.9) (3.5) (2.7) (11.8) (0.7) (0.9)
Reimbursement for Capital Expenditures 11.9 0.3 0.2 - 0.4 0.8 - - - 1.6 1.6 1.2 1.4 2.3 0.0 5.2 0.2 0.6
Loss on equity method investments - - - - - - - - - - - - 0.1 0.3 0.1 0.6 0.2 0.2
Income Taxes - (0.1) (0.1) (0.3) (0.2) (0.8) (0.1) (0.3) (0.2) 0.5 (0.1) (0.3) (0.1) (0.1) 0.6 0.2 (0.1) (0.1)
Non-cash Unit-Based Compensation Expense - - 0.1 0.1 0.3 0.5 0.1 0.1 0.1 0.1 0.3 0.1 0.1 0.1 0.1 0.4 0.1 0.1
Amortization of Deferred Revenue - - (0.1) (0.1) (0.1) (0.2) (0.1) (0.1) (0.1) (0.1) (0.3) (0.1) (0.1) (0.1) (0.3) (0.6) (0.2) (0.4)
Amortization of Unfavorable Contract Liability - (0.7) (0.7) (0.6) (0.7) (2.6) (0.7) (0.7) (0.7) (0.7) (2.7) - - - - - - -
Cash Available for Distributions $41.2 $13.1 $12.8 $13.7 $13.3 $52.9 $16.9 $23.9 $17.7 $21.8 $80.7 $16.8 $21.1 $22.6 $18.9 $81.3 $20.4 $23.7
Coverage (2) 1.10x 1.39x 1.32x 1.38x 1.30x 0.59x 1.61x 2.01x 1.42x 1.67x 1.69x 1.23x 1.47x 1.50x 1.17x 1.37x 1.19x 1.31x
Total Distribution (2) $37.4 $9.4 $9.7 $9.9 $10.2 $89.0 $10.5 $11.9 $12.4 $13.1 $47.9 $13.7 $14.4 $15.1 $16.1 $59.3 $17.1 $18.1
30
Investor Relations Contact:
Assi Ginzburg Keith Johnson
Executive Vice President, CFO Vice President of Investor Relations
615-435-1452 615-435-1366