Attached files
file | filename |
---|---|
8-K - 8-K INVESTOR PRESENTATION - Delek US Holdings, Inc. | dk-8kxinvestorpresentation.htm |
Investor Presentation
Delek US Holdings
August 2016
Disclaimers
2
Delek US Holdings, Inc. (“Delek US”) and Delek Logistics Partners, LP (defined as “we”, “our”) are traded on the New York Stock Exchange in the
United States under the symbols “DK” and ”DKL” respectively, and, as such, are governed by the rules and regulations of the United States
Securities and Exchange Commission. These slides and any accompanying oral and written presentations contain forward-looking statements 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. These factors include
but are not limited to: risks and uncertainties with the respect to the quantities and costs of crude oil, the costs to acquire feedstocks and the price
of the refined petroleum products we ultimately sell; losses from derivative instruments; management's ability to execute its strategy through
acquisitions and transactional risks in acquisitions and dispositions; acquired assets may suffer a diminishment in fair value as a result of which we
may need to record a write-down or impairment in carrying value of the asset; the effect on our financial results by the financial results of Alon
USA Energy, Inc., in which we hold a significant equity investment; our competitive position and the effects of competition; the projected growth
of the industry in which we operate; changes in the scope, costs, and/or timing of capital projects; 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; general economic and business conditions, particularly levels
of spending relating to travel and tourism or conditions affecting the southeastern United States; and other risks contained in our 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. Neither Delek US nor Delek Logistics Partners undertakes any obligation to
update or revise any such forward-looking statements.
Non-GAAP Disclosures:
Delek US believes that the presentation of EBITDA provides useful information to investors in assessing its financial condition, its results of
operations and cash flow its business is generating. EBITDA 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 has important limitations
as an analytical tool because it excludes some, but not all items that affect net income. Additionally, because EBITDA may be defined differently by
other companies in its industry, Delek US' definitions of EBITDA may not be comparable to similarly titled measures of other companies, thereby
diminishing its utility. Please see reconciliations of EBITDA to its most directly comparable financial measures calculated and presented in
accordance with U.S. GAAP in the appendix.
REFINING
Delek US Holdings Overview
3
(1) Rail supplied light crude capability consists of 25,000 bpd of light crude or 12,000 bpd heavy crude offloading that is available at a facility owned by Delek Logistics adjacent to the El Dorado refinery. In addition, 20,000
bpd light crude capability is currently available via a third party facility adjacent to the El Dorado refinery.
(2) Delek Logistics Partners, LP (NYSE:DKL) began operating on Nov. 7, 2012 and, from that date, 100% of its performance has been reported as a segment of Delek US. Delek US and its affiliates own approximately 62%,
including the 2.0% general partner interest, of DKL. Storage and pipeline amounts are based on total DKL assets.
Crude Sourcing/Logistics Flexibility
• Pipeline Access:
Midland (105,000 bpd in
system)
Gulf Coast and Cushing
• Gathered Barrels:
Local barrels in Arkansas/
North Louisiana
East and West Texas
• Rail Capability at El Dorado
Up to 45,000 BPD of light
crude(1) ;Ability to offload
heavy Canadian crude
Synergies Created through integration:
Logistics assets support
operations and create growth
options
Refinery locations allow
ability to optimize the system
Ability to support retail
locations enhances margins
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
TN, AL, GA, AR, KY, MS, VA
RETAIL
9 Terminals
Approx. 1,250 miles of pipelines
8.5 million bbls storage capacity
LOGISTICS (2)
Strategic crude oil supply point
that allows our refining system
access to domestic inland and
Gulf Coast feedstocks
LONGVIEW CRUDE OIL HUB
Mid-Continent Integrated Downstream Energy Company – Crude Gathering to Retail Locations
Delek US Investment Highlights
4
• Crude nameplate capacity increased by 15 kbpd to 155 kpbd in
2015
• Turnarounds completed and FCC reactors replaced at both
refineries
• Declining capital expenditure needs; No scheduled turnarounds
until 2019/2020
Refining
Increased capacity and improved
flexibility
• Achieved LTM Net Income of $68.2 million and EBITDA of $100.5
million as of 2Q 2016
• Distribution increased 14 consecutive quarters to $0.63/unit
• In 50%/50% IDR splits for amounts above $0.5625/unit
Logistics
Growing distribution
(Delek Logistics Partners (NYSE: DKL) (1)
• Cash balance of approximately $377 million
• Debt of approx. $941 million, including $363 million at DKL
• Net debt (excl. DKL) of $201 million
Conservative Financial
Position (2)
• 69 large format stores in 348 store network; expanding foot print
• Approximately 70% of fuel needs supplied by refining segment
Retail
Expanding large-format store base
• Acquired 48% of outstanding shares, of Alon USA Energy (NYSE:
ALJ) (“Alon USA”) on May 14, 2015.
• 4 third party logistics acquisitions; Exploring other opportunities
• Proven ability to buy at right time and integrate into system
Growth Focus Through
Acquisitions
1) Delek Logistics Partners, LP (NYSE:DKL) began operating on Nov. 7, 2012 and, from that date, 100% of its performance has been reported as a segment of Delek
US. Delek US and its affiliates own approximately 62%, including the 2.0% general partner interest, of DKL. EBITDA based on 2Q16 results.
2) Based on 6/30/16 balance sheet.
5
0 122 176
146 208 80
0 176 80
255 192 0
0 128 0
127 211 141
158 211 215
185 58 7
127 127 127
Alon USA Investment
On May 14, 2015, Delek completed the
acquisition of approximately 33.7 million shares,
or approximately 48% of the outstanding shares,
of Alon USA Energy (NYSE: ALJ) (“Alon USA”)
common stock from Alon Israel Oil Company, Ltd.
(“Alon Israel”).
Five seats on the eleven-member Alon USA
board of directors, including chairman of
the board
Total consideration of approximately
$564.5 million(1); $200.0m cash(2), $145.0m
seller note; 6.0m DK shares
Potential next steps, including:
Acquire remaining 52% for 100%
ownership
Stock ratio (ALJ/DK) (4)
May 14, 2015 = 0.45x (deal closed)
August 5, 2016 = 0.52x
Focus on long term value creation
Shareholder agreement expired May 2016
No limitation on DK’s ownership interest of
ALJ after expiration
(1) Based upon a closing price of $36.59 per share of Delek US common stock on May 13, 2015.
(2) Payment was funded through a combination of cash on hand and an increase in Lion Oil’s term loan credit facility from $99.0 million to $275.0 million. The interest rate is based on LIBOR or
base rate plus applicable margins, subject in each case to an all-in interest rate floor of 5.5%
(3) Based on Alon USA publicly available information. Refineries in California are not currently operating.
(4) Ratio based on daily closing price. May 14, 2015 DK $38.46/shr and ALJ $17.16/shr = 0.446; August 5, 2016 DK $14.25/shr and ALJ $7.41/shr = 0.52
Key Retail Cities
Asphalt Terminal
Third-Party Terminal
Alon USA Terminal
Exchange Terminal
Refinery
Third-Party Pipelines
ALON USA
Alon Pipelines (idled)
Oklahoma
638167_1.wor [NY0086JT]
Texas
California
New Mexico
Arizona
Nevada
Oregon
Washington
Arkansas
Louisiana
Midland/i l /aidl ndi li li li la /i l /ai ld ndd ndi li li l
Odessassde assassadedeO
Corpus Christi i ir s r stpu hCo C i i i i i i i ir r tr r ts is i i is s i iCo pu Chpu hCo Cr ri ti i ir r t i i
Abileneilb eneA ilililililililAb eneb eneA ilililEl Pasol sE Pal ol l l l asl sal E P oE P ol l l
Bakersfieldfi lrsake e dB fi li li li lr fr fak s i li lsak i lB e e de e dB r fi lfi lr fi l
Mojavejaveojjjavavoj ej eoj
Long Beach L g eacon B h L g ac L g ac on Be heon B h PhoenixiPh en xo iiiiixixiPhoenPh eno iii
TucsonsTuc nocsscTu onTu no
Paramountr tPa a unor tr ta aa aP ounP unor tr t
SouthtS u ho ttSSou hu ho tt
Marshrsa hrrssa ha hrr
IslandI ls andI llllIIsllslandandI lI lI l
Nederlandlrede andllllrrlalalede ndede ndN rllrl
Houstonstu nHo ottssou onu no oH ttH
LoopL pooLLooppoo
Orlalr allllrrlalalOrllrl
Moriartyir rta yo iiiir rtr rti yi yio aaori rtir rti
LubbockLubb ckoL ckL ckubboubbo
Big Springi irg Sp ngBi ii ii ii irrig S i gi ig S gi iB p np nBi rii iri i
Wichita Fallsi i llt sc a Fai hi lli i lli i lli i llttic i a Fallsi i llsc a Fai i llhhi it li i lti i l
Fort Worth rt rtF ho o rt rtrt rtF F o o hho ort rt rt rt
Dallasll sa aD llllllllallasll sa allD llD l
DuncancaDun ncacaun nun nDD
Albuquerquel re eAlbuqu qulll rrlllA buque quee eA buqu qul rl rl
EmpireirE p eiiiirriiiE p eE p eiriri
Flagstaffl ffstF ag al fflll t fft ffFlags al sF ag all t fl ftl f
Elk Grovel rE k vel ol l l rrlk vl k vl E o eE eol Grl rl FemleylFe eyllllF l ylF yle ee elll
Richmond Beachi ch nd eachRi o Bi i i ic aci c aci R h ond Be hh nd e hR o Bi i i
Krotz Springs ir tz r sK Sp ngo i i i ir t rr t rz S i gs iz sS g iK o p nK p nor t ri ir t r i
Bloomfieldl fi leBloo fi ldl i ll i ll i lffl i ll i ll i lB oo e deB oo dl fi ll fi ll fi l
TulsalsT aulllllsalsalTuTulll
217,000 bpd of capacity
Big Spring
73,000 bpd
10.5 complexity
Krotz Springs
74,000 bpd
8.4 complexity
California (3)
70,000 bpd
9.2 complexity
Refining
Approx. 306 stores
Southwest US locations
Largest licensee of 7-
Eleven stores in the US
Retail
11 asphalt terminals
located in TX, WA, CA, AZ
and NV
the largest asphalt
supplier in CA and second
largest asphalt supplier in
TX
Asphalt
ALJ also owns 100% of the general partner and
81.6% of the limited partner interests in ALDW
ALDW owns the Big Spring refinery (aggregate
crude oil throughput capacity of 73,000 bpd)
Alon USA Partners (NYSE: ALDW)
Alon USA Asset Overview (3)
Refining Segment
Operational Update
Supports High Refining Utilization
Refineries Serve Local Niche Markets
7
0
50
100
150
200
250
300
350
400
450
500
1Q1
3
2Q1
3
3Q1
3
4Q1
3
1Q1
4
2Q1
4
3Q1
4
4Q1
4
1Q1
5
2Q1
5
3Q1
5
4Q1
5
1Q1
6
2Q1
6
Delek Logistics Partners terminals support
refining system:
Tyler primarily serves a 100 mile radius
El Dorado has access to local markets, as
well as Little Rock and Memphis
Local market netbacks higher than Gulf Coast
basis
Colonial Pipeline space has increased access to
Southeastern market
$0.00
$0.05
$0.10
$0.15
$0.20
$0.25
$0.30
$0.35
Ja
n
-1
3
Ap
r-1
3
Ju
l-
13
O
ct-1
3
Ja
n
-1
4
A
p
r-14
Ju
l-
14
O
ct-1
4
Ja
n
-1
5
Ap
r-1
5
Ju
l-
15
O
ct-1
5
Ja
n
-1
6
Ap
r-1
6
Ju
l-
16
Delek US – Monthly Colonial Pipeline Space, (000 bbls) Gasoline Price Differential – NYMEX less Gulf Coast(1)
Improving Niche Markets
1) Source for gasoline price differential is Platts with NYMEX RBOB and Gulf Coast CBOB average posted prices through August 5, 2016.
Approximately 80% of crude slate consists of Midland and local crude supply
Increased Access to Cost Advantaged Crude
8
45.0 45.0
87.0 105.0 107.0 17.2 17.9
18.6
17.2 16.0
0
50
100
150
200
2012 2013 2014 2015 2016E
In
0
0
0
b
p
d
Midland Local Crude Throughput Capacity
$(3.31)
$(2.71)
$(6.11)
$(1.43)
$(1.67)
$(1.61) $(1.25)
$(1.20) $(1.21)
2012 2013 2014 2015 1Q16 2Q16 Jul. Aug. Sep.
Improved access to cost advantaged crude
(Midland/local) in refining system
Midland recently trading near parity with Cushing
Long term outlook for Midland approximately $1-
$2/bbl under Cushing
Ability to access Gulf Coast crude for El Dorado
Refining margin competitive due to:
Cost advantaged crude supply
Serve niche markets
Target to reduce operating expenses per barrel
WTI Midland vs WTI Cushing, $/bbl (1)
Increasing Access to Cost Advantage Crude
1) Differential includes contango of $0.40/bbl (2012); contango of $0.07/bbl (2013); backwardation of $0.77/bbl (2014); contango of $0.97/bbl (2015); $1.80 (1Q16).; $1.43 (2Q16); $0.72
(Jul), $0.90 (Aug.); $1.01(Sep) Source: Argus – as of August 5, 2016; NYMEX futures settle prices.
2) Crack spread based on WTI crude oil and Gulf Coast pricing, using HSD. Current crack spread based on August 5, 2016.
WTI Gulf Coast 5-3-2 Crack Spread(2)
Periods incl. backwardation/contango
$0
$5
$10
$15
$20
$25
Ju
l-
1
4
A
u
g-
1
4
Se
p
-1
4
O
ct
-1
4
N
o
v-
1
4
D
ec
-1
4
Ja
n
-1
5
Fe
b
-1
5
M
ar
-1
5
A
p
r-
1
5
M
ay
-1
5
Ju
n
-1
5
Ju
l-
1
5
A
u
g-
1
5
Se
p
-1
5
O
ct
-1
5
N
o
v-
1
5
D
ec
-1
5
Ja
n
-1
6
Fe
b
-1
6
M
ar
-1
6
A
p
r-
1
6
M
ay
-1
6
Ju
n
-1
6
Ju
l-
1
6
A
u
g-
1
6
Cu
rr
en
t
$
p
er
b
b
l.
Increased crude throughput capacity and operating flexibility
Refining Capital Investment Program Improved Operations
9
Large investment cycle in refining now
completed
Capital expenditure needs declining from 2015
level
2016E based on maintenance and regulatory
spending
Projects completed during 2014 and 2015
included:
Turnarounds completed at both refineries
Improved crude oil processing flexibility
Increased crude throughput capacity
Since 2012 increased light crude processing
capability by 27% based on 2015 capacity
ULSD capability improve by 37% by expanding
the DHT
$46.1
$123.6
$199.1
$164.5
$27.8
2012A 2013A 2014A 2015 2016E*
Historical Capital Spending
($ in millions)
Note: Amounts represent spending in the refining segment. Periods have been restated to reflect logistic assets that were dropped down to Delek
Logistics Partners since its inception in 2012 including tank farms, terminals and rail offloading racks.
(1) 2012 and 2013 volume based on actual crude throughput. 2014 and 2015 based on total capability of the system.
122 124
140
155
52 52 60
71
2012 2013 2014 2015
Light Crude Processing DHT
(in 000 bpd)
Light Crude Processing and DHT Capacity Increased (1)
*2016 includes sustaining maintenance, regulatory and discretionary related spending. No significant growth related capital
expenditures in the forecast.
54% 55% 54% 52% 54%
39% 39% 40% 41% 39%
7% 6% 6% 7% 7%
0%
20%
40%
60%
80%
100%
120%
2013 2014 2015 2Q15 2Q16
Gasoline Diesel Petro/Other
62,304 65,523 60,704 72,358 74,130
Tyler Refinery Overview
10
Overview
Niche market generally priced above Gulf Coast;
supported by Delek Logistics' terminals
Crude slate consists of approx. 65 kbpd Midland
sourced crude; plus east Texas and Cushing crudes
Completed schedule turnaround in March 2015;
FCC reactor replaced; next scheduled turnaround
2020
15 kbpd crude processing expansion completed in
March 2015
Achieved 75 kbpd crude throughput rate
Product yield in line with pre-expansion level
Focus on balancing expanded production level
with refining margin to maximize capture rate
75,000 bpd niche refinery serving Tyler, Texas and surrounding area
Total Production, bpd
$4.63 $4.41 $4.52
$3.82
$3.29
2013 2014 2015 2Q15 2Q15
Operating Expense Per Barrel Sold
Note: Delek US capture rate is defined as refining gross margin per barrel divided by WTI Gulf Coast 5-3-2 crack spread.
*1Q15 affected by scheduled turnaround that reduced throughput
and barrels sold.
80,000 bpd refinery with crude slate flexibility to process light and medium gravity crudes
El Dorado Refinery Overview
11
Overview
Inland PADD III refinery located in Southern
Arkansas
Flexible crude sourcing
Access to Gulf Cost crudes beginning
in August 2016
Midland, local Arkansas, east Texas
Rail offloading capability
Mid Valley and Exxon North crude oil
pipeline access
Ability to support a portion of retail fuel
needs on direct/indirect
Improved flexibility and throughput in 1Q 2014
turnaround; next scheduled turnaround 2019
Pre-flash tower project improved light
crude processing capability to
approximately 80,000 bpd
Replaced FCC reactor with state of the art
technology
49% 50% 52% 51% 54%
38% 39% 37% 37%
37%
11% 9% 8% 9% 6%
3% 2% 3% 3% 2%
0
0
0
1
1
1
1
2013 2014 2015 2Q15 2Q16
Gasoline Diesel Asphalt Petro/Other
71,642 71,286 77,806 78,789 73,460
Total Production, bpd
$4.06 $3.94 $3.97 $4.23
$3.52
2013 2014 2015 2Q15 2Q16
Operating Expense Per Barrel Sold
Logistics
Operational Update
Strategic Partner in Delek Logistics Partners, LP (NYSE: DKL)
13
Delek Logistics Partners , LP (NYSE:DKL) began operating on Nov. 7, 2012 and 100% of its performance is reported as a segment of Delek US beginning 4Q12. Delek US and its affiliates own
approximately 62%, including the 2.0% general partner interest, of DKL. Please see the public filings of DKL for additional information and risks associated with DKL.
Note: Storage and pipeline amounts based on the pipeline and transportation segment and wholesale marketing and terminalling segment.
1. Includes approximately 240 miles of leased pipeline capacity
~ 765 miles (1) of
crude/product
transportation
pipelines, includes
the 195 mile crude
oil pipeline from
Longview to
Nederland, TX
~ 600 mile crude oil
gathering system in
AR/North LA
Rail offloading facility
Pipelines Assets
Storage facilities
with 8.5 million
barrels of active
shell capacity
Storage Assets
Wholesale and
marketing business
in Texas
9 light product
terminals:
TX, TN,AR
Wholesale/
Terminal Assets
Growing logistics assets support crude sourcing and product marketing
DKL: Joint Venture Pipeline Projects
14
Caddo Pipeline
■ DKL (50%)/Plains (50%)
■ Est. total cost: $120 million (1)
■ Capacity: 80,000 bpd
■ Length: 80 miles
■ Expected Completion: January
2017
Rio Pipeline
■ Rangeland (67%)/ DKL (33%)
■ Est. total cost: $119 million (1)
■ Capacity: 55,000 bpd
■ Length: 107 miles
■ Expected Completion: Aug. 2016
(1) Estimated investment, pending changes due to revisions in construction schedule and final construction cost of Caddo. Based latest information provided by Delek Logistics Partners in its
August 2016 investor presentation.
Increased Distribution with Conservative Coverage and Leverage
15
(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 33 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 from DKL investor presentation.
Distribution has been increased fourteen consecutive times since the IPO
Distributable Cash Flow Coverage Ratio (2)(3)
DKL Revolver Leverage Ratio (4)
$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
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
$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
DKL: Potential Growth (1)
16
• Options for Growth Provide Potential for EBITDA Increase in Coming Quarters (1)
Estimated EBITDA
range.
Currently evaluating
feasibility of a
potential drop down
with DKL.
DK has stated it is
evaluating options to unlock
the value of retail, one
of which could be a drop
down
Caddo Pipeline
DKL 50%/
Plains 50%
RIO Pipeline
DKL 33%/
Rangeland 67%
Exp. Inv. $99.0m
(1) Information provided in Delek Logistics Partners, LP (NYSE: DKL) August 2016 Investor presentation available at www.delekogistics.com. LTM 6/30/16 net income and EBITDA based on
information provided in that presentation. Please see public filings with the Securities and Exchange Commission for additional information and risks associated with DKL. Estimates based on
DKL information. Please see page 34 for reconciliation.
(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) Represents a potential EBITDA range as Delek US considers ways to unlock the value of the retail segment one of which could include a potential retail asset drop down. DK and DKL are
currently evaluating the feasibility of this transaction, although there is no guarantee that an agreement will be entered into or completed. 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.
17
Marginal Percentage Interest in Distributions
Assumed Distribution per Limited Partner Unit if
Delek Logistics Meets 15% Annual Growth Target (1)
Delek Logistics GP Incentive Distribution Rights
Total Quarterly Distribution Per Unit
Target Amount
Unitholders General Partner
Minimum Quarterly Distribution below $0.37500 98.0% 2.0%
First Target Distribution $0.37500 to $0.43125 98.0% 2.0%
Second Target Distribution $0.43125 to $0.46875 85.0% 15.0%
Third Target Distribution $0.46875 to $0.56250 75.0% 25.0%
Thereafter above $0.56250 50.0% 50.0%
Paid Distribution $0.63
for 2Q 2016
Delek US Ownership:
LP Units: 14,798,516
GP Units: 495,975
(1) Based on no change in number of units and assumes all units are paid distribution, including IDRs to Delek US and its affiliates. Targeted annual growth rate in distribution based on 15%
(per DKL target in 4Q15 earnings press release) from 2015 4Q distribution of $0.59 per unit ($2.36 annualized) to 2016. Delek US and affiliates own approximately 60% of limited partner
units and 100% of the general partner units. Information for illustrative purposes only, actual amounts will be determined by Delek Logistics based on future performance and pursuant to
its partnership agreement.
Assumed Annual Distribution (LP and GP) to Delek US
if Delek Logistics Meets 15% Annual Growth Target (1)
$1.50 $1.60
$1.90
$2.24
$2.58
$-
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
MQD
annualized
2013A 2014A 2015A 2016E
Distribution per LP unit
$28.1
$33.1 $37.4
$1.9
$5.0
$12.4
$-
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
2014 2015 2016E
Distribution - LP Distribution - GP
$ in millions
+7%
+19%
+18%
+15%
Retail
Operational Update
Fuel Gallons Sold Per Store (000’s)
1,112
1,204 1,274
623 640
2013 2014 2015 2Q15 YTD 2Q16 YTD
1,037
1,106 1,169
564 594
2013 2014 2015 2Q15 YTD 2Q16 YTD
Retail Locations Create Synergies for Product Marketing
19
Expanding Market Footprint in Markets Capable of Being Supplied by El Dorado
Merchandise Sales Per Store ($000’s)
Tennessee
187 locations
Virginia
8 locations
Kentucky and
Mississippi
10 locations
Arkansas
12 locations
Tyler
Georgia
42 locations El Dorado
Red border indicates
region for future growth
Alabama
89 locations
Markets gasoline, diesel and merchandise
through a network of retail fuel and convenience
stores throughout the southeastern U.S.
Operates 348 stores throughout seven states
Ability to supply fuel gallons to stores from
refining and product logistics at Delek US
Currently undergoing multi-year store
enhancement initiative
62% of stores re-imaged or newly
constructed
Focused on Organic Growth
20
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 and $2+million
inside sales once market penetrated
3 year growth trajectory for market penetration
69 large format stores in portfolio as of 1Q16
11 stores built in 2014
3 new stores opened in December 2015 and 2 in January 2016
Current store mix of reimage, truck stops, new builds
New Builds
2,600,000
3,400,000
4,000,000
Year 1 Year 2 Year 3
Large Format Store Fuel Gallons Sold
Projected Performance Year 1-3 (1)
(1) Projected fuel gallons sold. Actual amount will vary based on individual store location and performance over time.
Continued integration with refining system
supports higher fuel margins
31%
69%
2013
49% 51%
2014
66%
34%
2015
Financial Update
Financial Highlights
At June 30, 2016
Cash of $377.1 million; Debt of $941.1 million
Includes $362.6 million of debt at Delek Logistics
(DKL)
Excluding DKL, Delek US’ net debt position was
approximately $201.7 million
Capital allocation focused on cash returned to
shareholders, acquisitions and capital program
$125 million share repurchase plan authorized in
2016
Repurchase programs in 2013 to 2015
Total of $37 million of dividends paid in 2015
Completed large capital spending program in
2015
Invested in operations for long term growth;
$257 million of capital expenditures in 2014;
$219 million in 2015
Forecast 2016 capital spending of
$63.9million
Cash Balance ($MM)
Capital Invested in the Business and Returned to Shareholders
22
$68 $49
$226
$602
$400 $444
$302
$350
$377
2009 2010 2011 2012 2013 2014 2015 1Q16 2Q16
Dividends Declared ($/share)
$0.15 $0.15 $0.15 $0.21
$0.40
$0.60 $0.60 $0.60
$0.18
$0.39
$0.55
$0.40
$0.15 $0.15
$0.33
$0.60
$0.95 $1.00
$0.60 $0.60
2009 2010 2011 2012 2013 2014 2015 2Q16 LTM
Regular Special
$37
$75
$42
$6
2013 2014 2015 YTD 2Q16
Share Repurchases ($MM)
Increases potential free cash flow generation from operations
$18.8
$74.9
$61.6
$82.9
$155.1
$42.3 $36.0
$46.1
$123.6
$199.1
$164.5
$27.8
$0.2
$0.3
$0.9
$0.5
$0.9
$30.3
$25.8
$9.2
$18.6
$14.3
$10.4
$21.4
$23.3
$18.6
$14.3
$14.4
$36.5
$29.1
$37.9
$26.2
$18.3
$13.2
$2.0
$0.1
$0.1
$7.6
$26.5
$35.0
$22.4
$17.2
$8.6
2005A 2006A 2007A 2008A 2009A 2010A 2011A 2012A 2013A 2014A 2015A 2016E
Refining Logistics (Marketing) Retail Other
Declining Capital Needs
23
$56.8
$81.0
$132.0
$222.3
Source: Company filings.
$256.9
$218.6
$170.0
$102.4
$87.2 $96.5
$29.2
($ in millions)
*2016 estimate represents sustaining maintenance, regulatory and some discretionary related spending projects. No
significant growth related capital expenditures are included in the current forecast.
$63.9
Delek US Capital Allocation Options
24
Invest in Business
• Safe and efficient operations
• Maintenance level spend in
refining
• Building new stores in retail
• JV pipeline projects in logistics
Acquisitions
• Focus on Logistics
• Environment more attractive
• Build off existing platform
• Acquire remaining interest in Alon
USA (48% purchased in May 2015)
Share Repurchases
• $6 million repurchased in 2016 (1)
• $42 million repurchased in 2015
• $75 million repurchased in 2014
Dividend policy
• Regular Quarterly Dividend
$0.15/share
• Special dividends paid in past
• Policy evaluated regularly
Long Term
Value
Creation
Target the most attractive value based on market conditions, expected returns and growth strategies
1. Year to date purchases through June 30, 2016.
Limited Value Attributed to Delek US Refining Assets in Current Environment
25
Creates attractive capital allocation opportunity
Refining, ($0.29) to
($0.02)
Retail, $0.32 to
$0.45
GP, $0.10 to $0.24
ALJ, $0.30
DKL, $0.40
-$0.3
$0.0
$0.3
$0.6
$0.9
$1.2
V
al
u
e,
$ in
b
ill
ion
s Delek US
Price: $14.25
X Shares: 62.1m
Market Cap: $0.9 B
+Debt (excl. DKL): $0.6
- Cash: $0.4
Enterprise Value: $1.1 B
DKL Value:
Price: $25.33
X Shares: 24.3m
Market Cap: $0.6 B
X 60% Ownership $0.4 B
ALJ Value:
Price: $7.41
X Shares: 70.9m
Market Cap: $0.5 B
X 48% Ownership $0.3 B
General Partner Estimated Value:
Est. Annual Distribution: $10.0m to $20.0m range
X Est. Multiple: 10.0x-12.0x
Estimated Value $0.10 B to $0.24 B
Retail Estimated Value:
Est. Annual EBITDA $40m to $45m range
X Est. Multiple: 8.0x to 10x
Estimated Value $0.32 B to $0.45 B
Remaining Value to refining
$1.1B EV
Notes:
• Share prices based on August 5, 2016 and shares outstanding, debt and cash balances as of June. 30, 2016. DKL debt of $362.6 million excluded from DK
enterprise value.
• Retail valuation based on estimated EBITDA range. Actual results will vary based on market conditions.
• GP Distribution range based on estimated amount if Delek Logistics (NYSE: DKL) meets its target of 15% annual growth in limited partner distributions in the
future based on DKL 2Q16 earnings release. Actual amounts paid in the future based on DKL performance and partnership agreement.
• Multiple ranges based on internal estimates.
26
Large, Complementary
Logistics and Marketing
Retail Systems
Significant Organic
Growth / Margin
Improvement
Opportunities
Focus on Shareholder
Returns
Strong Balance Sheet
Strategically Positioned
Refining Platform
Questions and Answers
Appendix
Additional Data
28
Summary Organization Structure
(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.
Market cap based on share prices on August 5, 2016.
95.10%
ownership interest (1)
2.0% interest
General partner interest
Incentive distribution
rights
Delek Logistics Partners, LP
NYSE: DKL
Market Cap: $615 million
Delek Logistics GP, LLC
(the General Partner)
Delek US Holdings, Inc.
NYSE: DK
Market Cap: $881million
59.7% interest
Alon USA
NYSE: ALJ
Market Cap: $521 million
48% interest
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
(1) Includes logistic assets in purchase price. Purchase price includes working capital for refineries.
(2) Mt. Pleasant includes $1.1 million of inventory.
2006
Abilene & San Angelo
terminals
$55.1 mm
2012
Nettleton
Pipeline
$12.3 mm
2011
Paline Pipeline
$50 mm
Acquisition Completed
171 retail fuel &
convenience stores
& related assets
$157.3 mm
2005 to 2007 2011 to 2012 2013 to Current
Crude
Gathering
2013
Biodiesel
Facility
$5.3 mm
2011
Lion refinery &
related pipeline & terminals
$228.7 mm(1)
2005
Tyler refinery &
related assets
$68.1 mm(1)
2011 - 2014
Building new large format convenience stores
2013
Tyler-Big Sandy
Pipeline
$5.7 mm
2014
Biodiesel
Facility
$11.1 mm
Logistics Segment Retail Segment Refinery Segment
Crude
Logistics
Refining
Product
Logistics
Retail
2012
Big Sandy
terminal & pipeline
$11.0 mm
2013
North Little Rock
Product Terminal
$5.0 mm
2011
SALA Gathering
Lion Oil acquisition
Asset
In
te
gr
at
io
n
Increased Gathering
East and West Texas
29
2014
Mt. Pleasant
System
$11.1 mm (2)
2014
Frank
Thompson
Transport
$11.9 mm
2016 Completion
DKL Joint Ventures
Caddo Pipeline
RIO Pipeline
Exp. Inv.: ~$96.0 mm
2015
48%
ownership
in Alon USA
2015
48%
ownership
in Alon USA
-$30
-$20
-$10
$0
$10
$20
$30
$40
$50
J
a
n
-1
0
F
e
b
-1
0
M
a
r-
1
0
A
pr
-1
0
M
a
y
-1
0
J
u
n
-1
0
J
u
l-
1
0
A
u
g
-1
0
S
e
p
-1
0
O
c
t-
1
0
No
v
-1
0
De
c
-1
0
J
a
n
-1
1
F
e
b
-1
1
M
a
r-
1
1
A
pr
-1
1
M
a
y
-1
1
J
u
n
-1
1
J
u
l-
1
1
A
u
g
-1
1
S
e
p
-1
1
O
c
t-
1
1
No
v
-1
1
De
c
-1
1
J
a
n
-1
2
F
e
b
-1
2
M
a
r-
1
2
A
pr
-1
2
M
a
y
-1
2
J
u
n
-1
2
J
u
l-
1
2
A
u
g
-1
2
S
e
p
-1
2
O
c
t-
1
2
No
v
-1
2
De
c
-1
2
J
a
n
-1
3
F
e
b
-1
3
M
a
r-
1
3
A
pr
-1
3
M
a
y
-1
3
J
u
n
-1
3
J
u
l-
1
3
A
u
g
-1
3
S
e
p
-1
3
O
c
t-
1
3
No
v
-1
3
De
c
-1
3
J
a
n
-1
4
F
e
b
-1
4
M
a
r-
1
4
A
pr
-1
4
M
a
y
-1
4
J
u
n
-1
4
J
u
l-
1
4
A
u
g
-1
4
S
e
p
-1
4
O
c
t-
1
4
No
v
-1
4
De
c
-1
4
J
a
n
-1
5
F
e
b
-1
5
M
a
r-
1
5
A
pr
-1
5
M
a
y
-1
5
J
u
n
-1
5
J
u
l-
1
5
A
u
g
-1
5
S
e
p
-1
5
O
c
t-
1
5
No
v
-1
5
De
c
-1
5
J
a
n
-1
6
F
e
b
-1
6
M
a
r-
1
6
A
pr
-1
6
M
a
y
-1
6
J
u
n
-1
6
J
u
l-
1
6
A
u
g
-1
6
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 Barrel
U.S. Refining Environment Trends
Refined Product Margins and WTI-Linked Feedstock Favor Delek US
(1) Source: Platts; 2016 data is as of August 5, 2016; 5-3-2 crack spread based on HSD
(2) Crack Spreads: (+/-) Contango/Backwardation
(1) (2) (2)
30
($14.00)
($12.00)
($10.00)
($8.00)
($6.00)
($4.00)
($2.00)
$0.00
$2.00
Ja
n
-1
1
Fe
b
-1
1
M
ar
-1
1
A
p
r-
11
M
ay
-1
1
Ju
n
-1
1
Ju
l-1
1
A
u
g-
1
1
Se
p
-1
1
O
ct-1
1
N
o
v-
1
1
De
c-
1
1
Ja
n
-1
2
Fe
b
-1
2
M
ar
-1
2
A
p
r-
12
M
ay
-1
2
Ju
n
-1
2
Ju
l-1
2
A
u
g-
1
2
Se
p
-1
2
O
ct-1
2
N
o
v-
1
2
De
c-
1
2
Ja
n
-1
3
Fe
b
-1
3
M
ar
-1
3
A
p
r-
13
M
ay
-1
3
Ju
n
-1
3
Ju
l-1
3
A
u
g-
1
3
Se
p
-1
3
O
ct-1
3
N
o
v-
1
3
De
c-
1
3
Ja
n
-1
4
Fe
b
-1
4
M
ar
-1
4
A
p
r-
14
M
ay
-1
4
Ju
n
-1
4
Ju
l-1
4
A
u
g-
1
4
Se
p
-1
4
O
ct-1
4
N
o
v-
1
4
De
c-
1
4
Ja
n
-1
5
Fe
b
-1
5
M
ar
-1
5
A
p
r-
15
M
ay
-1
5
Ju
n
-1
5
Ju
l-1
5
A
u
g-
1
5
Se
p
-1
5
O
ct-1
5
N
o
v-
1
5
De
c-
1
5
Ja
n
-1
6
Fe
b
-1
6
M
ar
-1
6
A
p
r-
16
M
ay
-1
6
Ju
n
-1
6
Ju
l-1
6
A
u
g-
1
6
Se
p
-1
6
WTI Midland vs. WTI Cushing Crude Pricing
Access to Midland Crudes Benefits Margins
($ per barrel)
105,000 bpd of
Midland crude in
DK system
31
Source: Argus – as of August 5, 2016
Delek US Consolidated Income Statement
32
Source: Company filings.
($ in millions)
2008 2009 2010 2011 2012 2013 2014 2015 YTD2Q15 YTD2Q16 2Q16 LTM
Net sales $4,723.7 $2,666.7 $3,755.6 $7,198.2 $8,726.7 $8,706.8 $8,324.3 $5,762.0 $2,843.7 $2,532.3 $5,450.6
Cost of goods sold 4,308.1 2,394.1 3,412.9 6,429.9 7,708.2 7,880.7 7,315.2 5,015.6 2,444.3 2,245.0 4,816.3
Operating expenses 240.8 219.0 229.5 320.9 363.3 387.4 398.8 406.6 197.4 192.2 401.4
Impairment of goodwill 11.2 7.0 0.0 2.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Insurance proceeds - business interruption 0.0 (64.1) (12.8) 0.0 0.0 0.0 0.0 0.0 0.0 (42.4) (42.4)
Property damage proceeds, net 0.0 (40.3) (4.0) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
General and administrative expenses 57.0 64.3 59.0 81.4 99.7 111.2 133.4 126.0 67.0 63.9 122.9
Depreciation and amortization 41.3 52.4 61.1 74.1 82.5 89.8 111.5 134.0 63.2 73.4 144.2
Other operating (income) expenses, net (6.8) 2.9 0.7 3.6 (0.1) 0.0 (1.1) (0.9) (0.1) 0.0 (0.8)
Operating income $72.1 $31.4 $9.2 $286.1 $473.1 $237.7 $366.5 $80.7 $71.9 $0.2 $9.0
Interest expense 23.7 25.5 34.1 51.2 45.7 37.7 40.6 58.3 27.4 30.4 61.3
Interest income (2.1) (0.1) 0.0 0.0 (0.2) (0.3) (0.8) (1.1) (0.6) (0.7) (1.2)
Income from equity method investments 0.0 0.0 0.0 0.0 0.0 0.0 0.0 (2.0) (7.4) 28.9 34.3
Loss on minority investment 7.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
(Gain) loss on investment in Lion Oil 0.0 0.0 60.0 (12.9) 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Gain on extinguishment of debt (1.6) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Other income, net 1.0 0.6 0.0 0.0 0.0 (6.3) (0.9) (1.6) (1.0) 0.5 (0.1)
Total non-operating expenses, net $28.9 $26.0 $94.1 $38.3 $45.5 $31.1 $38.9 $53.6 $18.4 $59.1 $94.3
Income before income tax (benefit) expense 43.2 5.4 (84.9) 247.8 427.6 206.6 327.6 27.1 53.5 (58.9) (85.3)
Income tax (benefit) expense 18.6 3.1 (5.0) 84.7 151.6 70.9 101.6 (16.6) 9.1 (34.2) (59.9)
Net Income 24.6 2.3 (79.9) 163.1 276.0 135.7 226.0 43.7 44.4 (24.7) (25.4)
Net income attributable to non-controlling interest (1.9) 1.6 0.0 0.0 0.0 18.0 27.4 24.3 12.2 11.7 23.8
Net income attributatble to Delek $26.5 $0.7 ($79.9) $163.1 $276.0 $117.7 $198.6 $19.4 $32.2 ($36.4) ($49.2)
Delek US Income Statement
Year Ended 12/31
DKL: Reconciliation of EBITDA and Cash Available for Distribution
33
(1) Forecast period for twelve month period ending 9/30/2013 EBITDA is reconciled to net income on page 34.
(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
DKL: Income Statement and Non-GAAP EBITDA Reconciliation
34
(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
Investor Relations Contact:
Assi Ginzburg Keith Johnson
Chief Financial Officer Vice President of Investor Relations
615-435-1452 615-435-1366