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| 8-K - DK 8-K INVESTOR PRESENTATION 3.22.18 - Delek US Holdings, Inc. | dk-8kxinvestorpresentation.htm |
March 27, 2018
Delek US Holdings, Inc.
Scotia Howard Weil Energy Conference
Disclaimers
2
Forward Looking Statements:
Delek US Holdings, Inc. (“Delek US”) and Delek Logistics Partners, LP (“Delek Logistics”; collectively with Delek US, 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 current expectations and involve a number of risks and
uncertainties. Statements concerning current estimates, expectations and projections about future results, performance, prospects, opportunities, plans, actions and events and other
statements, concerns, or matters that are not historical facts are “forward-looking statements,” as that term is defined under the federal securities laws. These forward-looking statements
include, but are not limited to, statements regarding a flexible financial position to support growth; cash returns to shareholders; WTI-Brent crude oil differentials including improvement
thereof and impact thereof on light crude oil refineries; global improvements and OPEC cuts; crude oil markets, production, quality, pricing, imports, global production decline, exports,
cuts, growth and transportation costs; light production from shale plays and Permian growth; differentials including increases, trends and the impact of thereof on crack spreads; crude oil
pricing; rig counts; Permian Crude capacity; pipeline takeaway capacity; pipeline projects; crack spreads and trends thereof, refinery complexity, configurations, utilization, crude oil slate
flexibility, capacities, equipment limits and margins; the ability to unlock value from the Alon USA Energy, Inc. (“ALJ”) and Alon USA Partners LP (“ALDW”) transactions from, among
other things, simplification of corporate structure, synergy capture, improved operations, logistics growth, future dropdowns, cash flows, debt refinancing, run rate synergies and reduced
public company costs; the ability to add flexibility and increase margin potential at the Krotz Springs refinery; improved product netbacks; our ability to complete the Alkylation project at
Krotz Springs successfully or at all and the benefits, flexibility, returns and EBITDA therefrom; our ability to divest non-core assets successfully or at all and the costs, cash flow and
benefits thereof; the ability to complete the sale of four asphalt terminals and other assets to a third party successfully or at all and the timing and benefits therefrom; logistic asset
growth; increases in drop down inventory and organic projects and the timing of and potential benefits therefrom; the Big Spring Dropdown and the expected benefits therefrom; a new
marking agreement between Delek US and Delek Logistics; the ability to close the Green Plains joint venture, and the timing and benefits thereof; increased capacity on the Paline
Pipeline and the impacts and benefits therefrom; potential logistics dropdowns and the benefits therefrom; future distribution growth; retail growth and the opportunities and value derived
therefrom; financial flexibility to support initiatives; long-term value creation from capital allocation; share repurchases and returning cash to shareholders; execution of strategic initiatives
and the benefits therefrom; valuation relative to peer group; long term shareholder returns; focus on growth; access to Midland crude oil and the benefits therefrom; potential Alky Unit
EBITDA. 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 related to the ability to successfully integrate the businesses of Delek US, ALJ and ALDW; the risk that the combined company may be unable to achieve cost-cutting
synergies, or it may take longer than expected to achieve those synergies; uncertainty related to timing and amount of value returned to shareholders; risks and uncertainties with respect
to the quantities and costs of crude oil we are able to obtain and the price of the refined petroleum products we ultimately sell; gains and losses from derivative instruments;
management's ability to execute its strategy of growth through acquisitions and the transactional risks associated with 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; changes in the scope, costs, and/or timing of capital and
maintenance projects; operating hazards inherent in transporting, storing and processing crude oil and intermediate and finished petroleum products; our competitive position and the
effects of competition; the projected growth of the industries in which we operate; general economic and business conditions affecting the geographic areas in which we operate; and
other risks contained in Delek US’ and Delek Logistics’ 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 and Delek Logistics believe that the presentation of earnings before interest, taxes, depreciation and amortization ("EBITDA"), adjusted EBITDA, adjusted net income (loss) per
share, distributable cash flow and distribution coverage ratio provides useful information to investors in assessing their financial condition, results of operations and cash flow their
business is generating. EBITDA, adjusted EBITDA, adjusted net income (loss) per share, distributable cash flow and distribution coverage ratio 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, adjusted EBITDA,
adjusted net income (loss) per share, distributable cash flow and distribution coverage ratio have important limitations as analytical tools because they exclude some, but not all, items
that affect net income. Additionally, because EBITDA, adjusted EBITDA, adjusted net income (loss) per share, distributable cash flow and distribution coverage ratio may be defined
differently by other companies in its industry, Delek US' and Delek Logistics’ definitions may not be comparable to similarly titled measures of other companies, thereby diminishing their
utility. Please see reconciliations of EBITDA, adjusted EBITDA, adjusted net income (loss) per share 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 share as of close of trading on March 21, 2018.
(2) Currently 5.4% 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) Please see page 33 for reconciliation of GAAP to non GAAP amounts 3
• Current Price: $39.50/share (1)
• Market Capitalization: $3.3 billion (1)
• NYSE: DKL: (Market cap $670.5 mm) Own 63.5%, including 2% GP(2)
Overview (NYSE: DK)
•Net income of $2.56/share
•Adjusted net income of $0.50 /share
•Adjusted EBITDA of $154.0 million
Strong Fourth Quarter 2017
Performance (3)
• Repurchased $120 million of stock from Nov. 2017 to Feb. 28, 2018
• Approved new $150.0 million authorization
• Increased regular quarterly dividend by 33% to $0.20/share from
$0.15/share
Cash Returns to Shareholders
• Closed Alon USA Energy transaction on July 1, 2017 to purchase
remaining 53%
• Closed purchase remaining 18.4% Alon USA Energy Partners LP units
on February 7, 2018
• Executing on strategic initiatives to unlock value
• Simplified corporate structure
Alon Acquisition
•December 31, 2017 balance sheet:
•Delek US: $931.8 million of cash; $1,465.6 million of debt
•Includes $4.7 million cash and $422.6 million debt of DKL
Flexible Financial Position to Support
Growth
Integrated Company with Asset Diversity and Scale
Strategically Located Assets with Permian Basin Exposure
4
Retail
• Approximately 300
stores
• Southwest US locations
• Largest licensee of 7-
Eleven stores in the US
• West Texas wholesale
marketing business
Asphalt (3)
• 14 asphalt terminals
located in TN, OK, TX,
WA, CA and NV
• 5 terminals in CA, NV
and AZ in process of
being sold
• Largest asphalt supplier
in CA and second
largest asphalt supplier
in TX
Refining (1)
• 7th largest independent
refiner
• 302,000 bpd in total
• El Dorado, AR
• Tyler, TX
• Big Spring, TX
• Krotz Springs, LA
• Crude oil supply: 262,000
bpd WTI linked (207,000
bpd of Permian access)
Logistics (2)
• 10 terminals
• Approximately 1,290
miles of pipeline
• 11.4 million bbls of
storage capacity
• West Texas wholesale
• Joint venture crude oil
pipelines: RIO / Caddo
• Own 63.5%, incl. 2% GP,
of DKL
1) California refineries located in Long Beach and Bakersfield, which are not shown on the map, have not operated since 2012
2) Amounts include the Big Spring drop down that closes in March 2018 with an effective date of March 1, 2018.
3) On February 12, 2018, Delek announced definitive agreement to sell the Mojave, Elk Grove, Phoenix, Fernley and Bakersfield terminals for $75.0 million; not included on map above.
Renewables
Approx. 23m gallons
Biodiesel:
• Crossett, AR
• Cleburne, TX
Delek US Permian Focused WTI-Linked Crude Oil
Refining System
Current Refining Market Environment
System with Over 300,000 bpd of Crude Oil Throughput Capacity (~69% Permian Basin Based)
WTI-Linked Refining System with Permian Based Crude Oil Slate
6
Tyler, Texas
• 75,000 bpd crude
throughput
• 8.7 complexity
• Light crude refinery
• Permian Basin and
east Texas sourced
crude
El Dorado, Arkansas
• 80,000 bpd crude
throughput
• 10.2 complexity
• Flexibility to process
medium and light
crude
• Permian Basin, local
Arkansas, east Texas
and Gulf Coast crudes
Big Spring, Texas
• 73,000 bpd crude
throughput
• 10.5 complexity
• Process WTI and WTS
crude
• Located in the Permian
Basin
Krotz Springs, Louisiana
• 74,000 bpd crude
throughput
• 8.4 complexity
• Permian Basin, local
and Gulf Coast crude
sources
Crude Oil Supply is Primarily WTI Linked barrels -
• Currently approximately 262,000 bpd/95.6 million barrels per year; $1/bbl. change in WTI-Brent differential is approximately $96 million of
EBITDA
• Of this amount, access to Permian crude oil accounts for 207,000 bpd/ 75 million barrels per year of crude oil supply; $1/bbl. in WTI
Midland-Brent differential is approximately $75.0 million
• Krotz Springs – Midland vs LLS - Ability to increase Midland barrels by 10,000 bpd
Big Spring
73 kbpd
26.6 m bbls
100% WTI
linked
Tyler
75 kbpd
27.4 m bbls
100% WTI
linked
El Dorado
80 kbpd
29.2 m bbls
100% WTI
linked
Krotz
74 kbpd
27.0 m bbls
46% WTI
linked
Differential is additive to crack spread trends in the current market environment
Midland WTI-Brent Crude Oil Price Differential Trends Improving
71) Differential source: Argus – March 21, 2018; futures based on ICE/NYMEX
curve.
• WTI versus Brent has widened
• Began in early 2017
• Primary drivers of this change
include:
• Global market improvement -
OPEC cuts
• Current WTI price supports
production in U.S.
• Increased light production from
Shale plays
• Permian production has
continued to grow
• Transportation cost to clear
light crude oil in the export
market
-$25
-$20
-$15
-$10
-$5
$0
$5
Jan-14
A
pr-14
Jul-14
O
ct-14
Jan-15
A
pr-15
Jul-15
O
ct-15
Jan-16
A
pr-16
Jul-16
O
ct-16
Jan-17
A
pr-17
Jul-17
O
ct-17
Jan-18
A
pr-18
Jul-18
O
ct-18
Jan-19
A
pr-19
Jul-19
O
ct-19
S
pe
r
bb
l.
Cushing-Brent Differential Midland-Cushing Differential
WTI Midland vs Brent, $/bbl (1) Outlook
Futures curve
1) EIA production data through February 2018, March 12, 2018 Drilling Productivity Report; Baker Hughes rig count as of Mar. 16, 2018.
2) Company estimates; current production based on EIA for February 2018.
8
Crude Oil Production Grew Despite Rig Decline (1)
-
500
1,000
1,500
2,000
2,500
3,000
3,500
Ja
n-
07
Ju
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Pr
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A
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ig
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ou
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Rig Count Oil Prod. (MBbl/d)
Production continued to grow through crude oil price volatility
Permian Basin Attractive Drilling Economics Support Growth
• Crude oil production benefited by low
breakeven costs and improved
efficiencies
• As crude oil prices have increased, rig
count has followed
• Expected crude oil production
growth to average approximately
700,000 bpd in 2018 and 2019
• Delek US has access to approximately
207,000 bpd of Permian Crude
Permian Basin Crude Oil Production Growth (2)
0.9 0.9 1.0 1.2
1.4 1.6
1.9 2.0
2.5
3.3
3.9
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018E 2019E
Current production Feb. 2018: 3.0 m bpd
Permian Basin Outlook - Production versus Pipeline Takeaway Capacity
Current pipeline takeaway capacity adequate, but production growth may tighten balance
9
($13.50)
($11.50)
($9.50)
($7.50)
($5.50)
($3.50)
($1.50)
$0.50
$2.50
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
Jan-11
A
pr-11
Jul-11
O
ct-11
Jan-12
A
pr-12
Jul-12
O
ct-12
Jan-13
A
pr-13
Jul-13
O
ct-13
Jan-14
A
pr-14
Jul-14
O
ct-14
Jan-15
A
pr-15
Jul-15
O
ct-15
Jan-16
A
pr-16
Jul-16
O
ct-16
Jan-17
A
pr-17
Jul-17
O
ct-17
Jan-18
A
pr-18
Jul-18
O
ct-18
Jan-19
A
pr-19
Jul-19
O
ct-19
W
TI
M
id
la
nd
D
iff
er
en
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(
$/
bb
l)
Pr
od
uc
ti
on
V
ol
um
e
00
0
ba
rr
el
s
pe
r
da
y
Existing Capacity Enterprise Permian - 550 MBD Sunoco PE III - 300 MBD
Plains Sunrise - 120 MBD Plains Cactus II - 585 MBD EPIC - 590 MBD
Prodcution - Actual Production - High Case Production - Low Case
Midland-Cushing Diff Index Midland-Cushing Diff Forward Curve
Existing capacity
Capacity ramping up
Capacity under construction
• Outlook assumes production growth to average approximately 700,000 bpd in 2018 and 2019
• Permian pipeline take-away utilization should remain >90% during 2018
• Plains Sunrise Expansion, Cactus II and EPIC are 2019 projects currently under construction out of the announced
pipelines
Source: Delek US, company reports. Takes into consideration pipelines that are currently being constructed and does not take into account announced potential
pipelines that may be constructed in the future.
Crack Spread Cycle Turning Up
Crack spread expected to continue upward trend
10
-$30
-$20
-$10
$0
$10
$20
$30
$40
$50
10
-J
an
-1
0
10
-M
ar
-1
0
10
-M
ay
-1
0
10
-J
ul
-1
0
10
-S
ep
-1
0
10
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ov
-1
0
10
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-1
1
10
-M
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-S
ep
-1
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ov
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an
-1
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10
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ar
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2
1-
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ay
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2
1-
Ju
l-1
2
1-
S
ep
-1
2
1-
N
ov
-1
2
2-
Ja
n-
13
2-
M
ar
-1
3
2-
M
ay
-1
3
2-
Ju
l-1
3
2-
S
ep
-1
3
2-
N
ov
-1
3
2-
Ja
n-
14
2-
M
ar
-1
4
2-
M
ay
-1
4
2-
Ju
l-1
4
2-
S
ep
-1
4
2-
N
ov
-1
4
2-
Ja
n-
15
2-
M
ar
-1
5
2-
M
ay
-1
5
2-
Ju
l-1
5
2-
S
ep
-1
5
2-
N
ov
-1
5
2-
Ja
n-
16
2-
M
ar
-1
6
2-
M
ay
-1
6
2-
Ju
l-1
6
2-
S
ep
-1
6
2-
N
ov
-1
6
2-
Ja
n-
17
2-
M
ar
-1
7
2-
M
ay
-1
7
2-
Ju
l-1
7
2-
S
ep
-1
7
2-
N
ov
-1
7
2-
Ja
n-
18
2-
M
ar
-1
8
2-
M
ay
-1
8
Q
3
20
18
20
19
Brent-WTI Cushing Spread Per Barrel WTI 5-3-2 Gulf Coast Crack Spread Per Barrel
(1) Source: Platts as of March 21, 2018; 5-3-2 crack spread based on HSD. Mitsui Forward Curve as of March 21, 2018
(2) Crack Spreads: (+/-) Contango/Backwardation
2010
Avg:
$9.08
2011
Avg:
$23.78
2012
Avg:
$26.91
2013
Avg:
$18.08
2014
Avg:
$12.60
2015
Avg:
$15.67
2016
Avg:
$10.36
2017
Avg:
$13.51
2018F
Avg:
$13.53
2010 Brent-
WTI Diff:
$(0.67)
2011 Brent-
WTI Diff:
$(15.81)
2012 Brent-
WTI Diff:
$(17.57)
2013 Brent-
WTI Diff:
$(10.77)
2014 Brent-
WTI Diff:
$(6.48)
2015 Brent-
WTI Diff:
$(4.86)
2016 Brent-
WTI Diff:
$(1.71)
2017 Brent-
WTI Diff:
$(3.88)
2018F Brent-
WTI Diff:
$(4.11)
Initiatives Underway to Create Sustainable Value
Following Alon USA acquisition initiatives have been underway to unlock value.
Simplifying Corporate Structure and Divesting non-core Assets
12
• Simplified Corporate Structure
• On February 7, 2018, acquired remaining limited partner units of Alon USA Partners (ALDW); Delek US owned 81.6% of
the outstanding common units
• All stock for unit transaction for remaining 18.4% of the outstanding common units
• Exchange ratio of 0.49 shares of Delek US for each ALDW common unit not already owned by Delek US
• Reduces number of public companies to 2 (DK and DKL) lowering public company costs and simplifying corporate
structure
• Divesting non core West Coast Assets - $147 million of asset sales in 1Q18
• Paramount, California/AltAir Renewables (1) - Sold for approximately $72.0 million on March 19, 2018
• Proceeds included estimated working capital, Delek US’ portion of the biodiesel tax credit for 2017 and deal costs
• West Coast Asphalt Terminals - On February 12, 2018 announced definitive agreement to sell West Coast terminals
• $75 million in cash plus working capital
• Expected to close in first half 2018 subject to customary closing conditions, certain preferential rights under the
joint venture arrangement and regulatory approval.
• Evaluating options for Long Beach (1) and Bakersfield, California locations
• Goal to achieve $40-$45 million potential cost savings by divesting all California assets (2) and cash flow from asset sales
• Target to exit J Aron financing agreement for California mid-2018 that should reduce interest and fees
• Evaluating Options to Simplify Debt Structure
• Consolidate debt at the DK level
• Reduce number of debt facilities and lower overall interest cost
1) At Sept. 30, 2017 Paramount and Long Beach were moved to discontinued operations per accounting requirements due to efforts to divest the operations. Bakersfield
remains as part of continuing operations.
2) This amounts excludes any benefit from the biodiesel tax credit at AltAir and including a biodiesel tax credit at AltAir the estimated range would be $20.0 to $25.0 million.
Robust Synergy Opportunity from DK/ALJ Combination
13
Expect to achieve run-rate synergies of approximately $105-$120 million in 2018;
Increased from original target of $85-$105 million
$89 million of annualized synergies captured as of Dec. 31, 2017
Type Description
New
Estimate
Previous
Estimate
Commercial
• Logistics, purchase and
trading benefits from a
larger platform
• $20-$30 m • $20-$35 m
Operational
• Sharing of resources
across the platform;
improved insurance
and procurement
efficiencies
• $19-$22 m • $13-$15 m
Cost of
Capital
• Benefit from Delek US’
financial position to
reduce interest
expense through
refinancing efforts
• $30-$31 m • $19-$20 m
Corporate
• Reducing the number
of public companies;
consolidating functions
to improve efficiencies
• $36-$37 m • $33-$35 m
Corporate
Cost of Capital
Operational
Commercial
Target
$105-$120
($ in millions)
On track to capture targeted synergies from transaction
To Date 12/31/17
Commercial
Operational
Corporate
$89
Cost of Capital
Areas of focus to add flexibility and increase margin potential from refinery
Krotz Springs Improvement Initiatives
14
Improve Units to Add Product Flexibility
• Alkylation Project – approx. $103.0 million cost;
1Q19 expected completion
• Estimated annual EBITDA(1) $35-$40 million
• Converts lower priced iso-butane into higher
value alkylate; reduces dependency on crack
spread environment for project return
Crude – Transportation and Flexibility
• Transportation – focus on reducing the cost of crude
oil delivered into Krotz Springs
• Flexibility – Working with DKL to explore ways to
increase ability to access lower cost crude oil
• Create ability to adjust crude slate between
LLS and Midland based on market conditions
and refinery runs
Product Netback Improvement
• Build out wholesale business along the Colonial
Pipeline system
1) Please see page 35 for a reconciliation of forecasted EBITDA to forecasted net income.
Logistics Assets Positioned for
Growth
• ~805 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 10
million barrels (2) of
active shell capacity
• Rail Offloading Facility
Pipelines/Transportation
Segment
• Wholesale and
marketing business in
Texas
• 10 light product
terminals: (2) TX, TN, AR
• Approx. 1.4 million
barrels (2)of active shell
capacity
Wholesale/Terminalling
Segment
16
Logistics Assets Positioned to Benefit from Permian Basin Activity
Growing logistics assets support crude sourcing and product marketing for customers
(1) Includes approximately 240 miles of leased pipeline capacity.
(2) Amounts include the Big Spring drop down that is expected to close in March 2018 with an effective date of March 1, 2018.
Increased Drop Down Inventory plus Organic Project Creates Platform to
Support Logistics Growth
17
Potential Growth for DKL
• Delek Logistics Partners provides platform
to unlock logistics value
• Increased access to Permian and Delaware
basin through presence of Big Spring
refinery
• Improves ability to develop crude oil
gathering and terminalling assets
• Big Spring Logistics assets dropdown
closed in March 2018, effective March 1
• $40 million est. annualized EBITDA(2)
• Completed Paline Pipeline expansion in
early March 2018
• Capacity to 42,000 bpd from 35,000
bpd
• $8 million est. annualized EBITDA
uplift
• Potential Drop Down Inventory:
• Krotz Springs Assets - $30 to $34
million EBITDA/ year (2)
1) Information for illustrative purposes only to show potential based on estimated dropdown assets listed. Actual amounts will vary based on market conditions, which assets
are dropped, timing of dropdowns, timing of Paline Pipeline 7,000 bpd capacity expansion, actual performance of the assets and Delek Logistics in the future.
2) Please see page 36 and 37 for a reconciliation of EBITDA of Big Spring and Krotz Springs.
Strong EBITDA Growth Profile Supporting Distribution Growth (1)
$115 $8 $40
$32
$196
$-
$50.0
$100.0
$150.0
$200.0
$250.0
DKL EBITDA
2017
Annualized
EBITDA - Paline
expansion
March 2018
Big Spring Drop
Down Inventory
March 2018
Krotz Springs
Drop Down
Inventory
Total EBITDA
Potential
($ in millions)
Note: based on DKL LTM EBITDA + potential
dropdowns + Paline expansion
Target
2019
18
1) Please see page 37 for a reconciliation of EBITDA.
Big Spring Dropdown and Green Plains JV Should Provide Growth
• Closed in March with an effective date of March 1, 2018
• Purchase price of $315.0 million which equates to a
7.8x EBITDA multiple.
• Expected annualized EBITDA of $40.2 million(1)
• Financed through a combination of cash on hand
and borrowings on the revolving credit facility.
• This acquisition consists of:
• Storage tanks and salt wells – ~2.9 million barrels of
aggregate shell capacity
• Product terminals – Consists of an asphalt terminal
that operated at 3,900 bpd during 2H17 and a light
products terminal with 54,000 bpd throughput
capacity, which operated at 28,000 bpd during 2H17
• Marketing agreement –Delek Logistics will provide
services necessary to market various refinery
products produced at the refinery. 2H17 total sales
volume for products to be covered by this
agreement was ~74,700 bpd
• Announced February 20, 2018 to purchase third party logistics
assets
• Acquisition
• Two light products terminals – Caddo Mills, TX and North
Little Rock, AR – to be purchased from an affiliate of
American Midstream for $138.5 million in cash
• Subject to customary closing conditions and regulatory
approval, the transaction is expected to close in the first half
of 2018
• Joint venture structure
• DKL will contribute its North Little Rock, Arkansas terminal
and the Greenville tank farm located in Caddo Mills, Texas
plus approximately $57.25 million in cash
• Green Plains will contribute approximately $81.25 million in
cash
• Delek Logistics will be the operator
• Strategic Rationale
• Assets are complementary creating synergy opportunities
• Positioned to support Delek US’ Tyler, Texas and El Dorado,
AR refineries
• Expected annualized EBITDA of $19.2 million (1) in 2019 at
joint venture level
Big Spring Dropdown Green Plains Partners Joint Venture
Positive Outlook for Paline Pipeline and West Texas Wholesale
19
• Approximately 195-mile 42 kbpd crude oil pipeline from
Longview, TX south to Beaumont
• Allows shippers the ability to ship Midland or Cushing
crude barrels to the Gulf Coast
• Increased capacity in March 2018
• Added pump capacity to achieve 42,000 bpd from
35,000 bpd
• Evaluating potential for additional capacity
1) Source: Baker Hughes Drilling Rig report through Mar. 16, 2018.
2) RINs gross margin benefit included in the 2013 west Texas gross margin per barrel was approximately $6.4 million, or $0.99/Bbl, 2014 gross margin included $4.6 million, or $0.75/Bbl,
2015 gross margin included $5.3 million, or $0.89/Bbl, 2016 gross margin included $6.7 million, or $1.39/bbl, 2017 gross margin included $5.6 million, or $1.11/bbl
Paline Pipeline West Texas Wholesale
• Operates in an area around the Permian Basin;
Complementary to Delek US refining / retail in region:
• Purchases refined products from third parties for resale
at owned and third party terminals in west Texas
• Includes ethanol blending activity
• Drilling rig count has increased since May 2016; there
are currently 437 rigs operating in the Permian Basin(1)
West Texas Wholesale and Marketing Gross Margin
13,377
Bbl/d
14,353
Bbl/d
15,493
Bbl/d
16,523
Bbl/d 18,156
Bbl/d
16,707
Bbl/d
16,357
Bbl/d
13.482
Bbl/d
(2) (2) (2) (2)
($ in millions)
13.942
Bbl/d13,257
Bbl/d
(2) (2)
$7.2 $7.6
$8.5
$15.5
$14.0
$28.2
$8.0
$6.9
$20.3
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
2009 2010 2011 2012 2013 2014 2015 2016 2017
13,377
bpd
14,353
bpd
15,493
bpd
16,523
bpd 18,156
bpd
16,707
bpd
16,357
bpd
13,257
bpd
13,817
bpd
20
Delek US GP and IDR Ownership is in DKL in the high splits
Future Potential Dropdowns to DKL Benefit Delek US Cash Flow
Supports Long Term Distribution Growth at Delek Logistics
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%
• DKL Distribution was
$0.725/unit for 4Q 2017
• DKL distribution growth
target per LP unit of at least
10% annually through 2019
• Delek US Ownership:
• 61.5% of LP Units
• 2% GP Interest
(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 10% through 2019 per Delek Logistics guidance in 4Q16 earnings release. Growth based on declared amounts. Growth from 2019 to 2020 based on 10% per year.
Delek US and affiliates own approximately 61% 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 were to have a long term distribution
growth of 10% per year.(1)
$28.1 $33.1
$38.3 $42.7 $47.0
$51.7 $56.8
$1.9 $5.0
$12.4
$18.8
$24.0
$31.5
$39.6
$-
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
2014 2015 2016 2017E 2018E 2019E 2020E
Distribution - LP Distribution - GP
$ in millions 2016 – 2020E GP distribution CAGR +33%
21
(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 38 for reconciliation.
(3) 4Q17 based on total distributions paid on February 12, 2018.
(4) In 4Q17, the reimbursed capital expenditure amounts in the determination of distributable cash flow were revised to reflect the accrual of reimbursed capital expenditures from Delek rather than the cash
amounts received for reimbursed capital expenditures during the years ended December 31, 2017, 2016 and 2015.
(5) Leverage ratio based on LTM EBITDA as defined by credit facility covenants for respective periods.
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 3.70x
3.85x 3.83x 3.88x 3.72x
3.77x
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17
DKL: Increased Distribution with Conservative Coverage and Leverage
Distribution per unit has been increased twenty consecutive times since the IPO
Distributable Cash Flow Coverage Ratio (2)(3)(4)
Leverage Ratio (5)
$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 $0.655 $0.680
$0.690 $0.705 $0.715 $0.725
MQD (1)1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17
Increased 93.3% through 4Q 2017 distribution
1.39x 1.32x 1.35x 1.30x
1.61x 2.02x 1.42x 1.67x
1.25x 1.49x 1.47x 1.18x 1.20x 1.29x 0.98x 1.00x 0.88x
1.06x
0.97x 0.96x
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 3Q 16 4Q16 1Q17 2Q17 3Q17 4Q17
Avg. 1.35x in 2013
Avg. 1.68x in 2014
Avg. 1.35x in 2015
Avg. 1.11x in 2016 Avg. 0.97x in 2017
Opportunities for Retail
Integrated wholesale marketing and retail network at Big Spring; complementary to DKL west Texas
22
Current Retail Operations
• Approximately 300 store retail system in
central/west Texas and New Mexico
• Big Spring refinery supplies ~635
branded sites, including
substantially all of Alon’s retail sites
• Opportunity to invest in business to
improve store base and grow over time to
increase retail system value
Refineries
Legend:
Big Spring
Krotz
Springs
Branded license agreement and payment card location
Branded company-operated and distributor location
Unbranded supply available
Phoenix
Tucson
El Paso
Abilene
Wichita
Falls
Albuquerque
DKL served terminals
El Dorado
Tyl
er
Prior Retail Experience
• Built Southeast U.S. retail system
with 348 stores
• In November 2016 sold the network
for $535.0 million, net cash proceeds
of $377.3 million before tax
• Deal value of approximately 12.7x
EBITDA multiple
13.6x
16.4x
6.9x 7.9x
19.3x
7.8x 10.4x
12.7x
Susser
(2014)
Hess
(2014)
Pioneer
(2014)
Aloha
(2014)
Warren
(2014)
Pantry
(2014)
CST
Brands
(2016)
DK
Retail
(2016)
Comparative Retail Transaction EBITDA Multiples
Median: 10.4x
Solid Financial Position
Financial Strength and Flexibility to Support Initiatives
At December 31, 2017 approximately $932 million of cash
24
• Focused on growing business, while maintaining
financial flexibility
• Sold retail assets in Nov. 2016 for $535
million
• Closed Alon transaction on July 1, 2017
• At December 31 cash balance of $932 million
and net debt of $534 million
• Net debt of $116 million excluding DKL
related cash/debt
• Current balance sheet should have financial
flexibility to support:
• Opportunity for cost of capital benefits from
combination estimated to be approximately
$30 million
• Capital allocation program focused on
investment, return to shareholders and
growth over cycle
1) Amounts prior to 4Q16 have been adjusted to remove cash associated the retail operations that were sold in November 2016.
2) Based on company filings as of 12/31/17.
Capitalization as of December 31, 2017 (2)
Cash Balance ($MM) (1)
$40
$219
$590
$383
$430
$287
$689 $932
2010 2011 2012 2013 2014 2015 2016 2017
($ in millions)
Current Debt $590.2
Long-Term Debt 875.4
Total Debt $1,465.6
Cash ($931.8)
Net Debt Delek US Consolidated $533.8
Delek Logistics
Total Debt $422.6
Cash ($4.7)
Net Debt Delek Logistics $417.9
Net Debt Delek US excluding DKL $115.9
• Invest in the business
• 2018 spending includes the Alky unit project at Krotz
Springs
• 1Q 2019 El Dorado Turnaround planning underway
• Programs in place allow different options to return cash to
shareholders
• Increased regular dividend by 33% to $0.20/qtr
• $150 million DK share repurchase plan(1) with
approximately $30 million remaining as of 2/28/18
• New $150 million DK share repurchase plan(1)
approved; total authorization of $180 million
• Announced $147 million of asset divestitures in 1Q18
Capital Allocation Focused on Long-Term Value Creation
25
Dividends Declared ($/share)
$0.15 $0.15 $0.21
$0.55 $0.60
$0.39
$0.40
$0.40
$0.15
$0.33
$0.60
$0.95 $1.00
$0.60 $0.60 $0.60
$0.80
2010 2011 2012 2013 2014 2015 2016 2017 2018F
Regular Special
$37.0
$74.6
$42.3
$6.0
$25.0
$95.3
2013 2014 2015 2016 4Q17 1Q18 to date
- 2/28/18
DK Share Repurchases ($MM)
1) These plans do not have expiration dates.
2) Based on annualized quarterly dividend of $0.20/share declared on 2/26/18. Actual amount for 2018 subject to approval by the Board of Directors during the year.
3) In addition to 2018 capital expenditures shown, there is approximately $40.0 million of midstream projects to enhance Delek’s Permian position in 2018.
$88.6
$157.1
$213.6 $191.0
$46.3
$177.5
$211.5
2012A 2013A 2014A 2015A 2016A 2017A 2018E
Historical Capital Spending (3)
($ in millions)
(2)
Initiatives Underway to Create Sustainable Value
Execution of strategic initiatives
26
• $89 million captured on annualized basis in 4Q17
• Increased annualized target range to $105 million to $120 million
• On track to reach annualized goal in 2018
Synergies
• Improve Krotz Springs refinery flexibility
• $103 million project; expected completion in 1Q19
• $35 to $40 million annual EBITDA potential
Invest in the Business
(Alky Project)
• Increase capacity to 42,000 bpd from 35,000 bpd
• $8.0 million potential EBITDA uplift on annual basis
Invest in the Business
(Paline Capacity Increase)
• Divest assets to create cash flow to Delek US
• $40 to $45 million(1) potential savings from CA assets
• Announced $147 million of asset sales in 1Q18
Divest Non core assets
• Announced $315 million Big Spring drop down to DKL- $40 million
annualized EBITDA
• Approximately $32 million of potential logistics annualized EBITDA
in dropdown inventory
• Supports growth at DKL
Unlock Logistics Value
1) This amounts excludes any benefit from the biodiesel tax credit at Alt Air. Including a biodiesel tax credit at Alt Air the estimated range would be $20.0 to $25.0 million.
27
Complementary
Logistics Systems
Significant Organic
Growth / Margin
Improvement
Opportunities
Focus on Long Term
Shareholder Returns
Financial Flexibility
Permian Focused
Refining System
Questions and Answers
An Integrated and
Diversified Refining,
Logistics and Marketing
Company
Appendix
Delek US Focused on Growth through Acquisitions
(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 SegmentRefinery 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
A
ss
et
s
Pu
rc
ha
se
d
Increased Gathering
East and West Texas
29
2014
Mt. Pleasant
System
$11.1 mm (2)
2014
Frank
Thompson
Transport
$11.9 mm
DKL Joint Ventures
RIO Pipeline
Caddo Pipeline
Exp. Inv.: ~$104 mm
2015
47%
ownership
in Alon USA
2015
47%
ownership
in Alon USA
2016
Sold MAPCO
for $535mm
2017
Acquired rest
of Alon USA
2017
Acquired rest
of Alon USA
2018
Acquired rest
of Alon USA
Partners
30
Current Delek US Corporate Structure
(1) As of December 31, 2017, a 5.4% 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 is indirectly held by Delek US.
(2) Market cap based on share and unit prices on March 21, 2018.
94.6%
ownership interest (1)
2.0% interest
General partner interest
Incentive distribution
rightsDelek Logistics Partners, LP
NYSE: DKL
Market Cap: $670.5 million
Delek Logistics GP, LLC
(the General Partner)
Delek US Holdings, Inc.
NYSE: DK
Market Cap: $3.3 billion
61.5% interest in
LP units
($14.00)
($12.00)
($10.00)
($8.00)
($6.00)
($4.00)
($2.00)
$0.00
$2.00
Ja
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-1
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Ja
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Ju
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A
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Se
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ct
-1
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ov
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Ja
n-
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Fe
b-
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M
ar
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6
A
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M
ay
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Ju
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ct
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Ja
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Se
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ct
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N
ov
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7
D
ec
-1
7
Ja
n-
18
Fe
b-
18
M
ar
-1
8
A
pr
-1
8
WTI Midland vs. WTI Cushing Crude Oil Pricing
Access to Midland Crude Oil Benefits Margins
($ per barrel)
Approx. 207,000
bpd of Midland
crude oil in DK
system
31Source: Argus – as of March 21, 2018
-$30
-$20
-$10
$0
$10
$20
$30
$40
$50
Ja
n-
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A
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Fe
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14
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4
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4
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Fe
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15
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-1
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A
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Fe
b-
16
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-1
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A
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-1
6
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-1
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16
Ju
l-1
6
A
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6
S
ep
-1
6
O
ct
-1
6
N
ov
-1
6
D
ec
-1
6
Ja
n-
17
Fe
b-
17
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-1
7
A
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7
M
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-1
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17
Ju
l-1
7
A
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7
S
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O
ct
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7
N
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-1
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7
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n-
18
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18
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-1
8
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 as of March 21, 2018; 5-3-2 crack spread based on HSD
(2) Crack Spreads: (+/-) Contango/Backwardation
(1) (2) (2)
32
Non GAAP Reconciliations Delek US EPS and EBITDA
33
Reconciliation of U.S. GAAP Net Income
(Loss) to Adjusted Net Income (Loss)
2017 2016 2017 2016
Reported net income (loss) per share
attributable to Delek
$2.56 $0.72 $4.00 ($2.49)
Adjustments, after tax (per share) (13)
Net inventory valuation gain (0.11) (0.08) (0.12) (0.35)
Alon goodwill impairment — — — —
Asset write offs — 0.03 0.01 0.05
Business interruption proceeds — — — (0.44)
Unrealized hedging loss 0.02 0.13 0.12 0.36
Loss on impairment of equity method
investment
— — — 2.50
Inventory fair value adjustment — — 0.26 —
Transaction related expenses 0.03 0.06 0.24 0.09
Gain on remeasurement of equity method
investment in Alon
— — (1.67) —
Deferred tax write-off — — 0.65 —
Tax Cuts and Jobs Act adjustment (2.02) — (2.31) —
Discontinued operations loss (gain) 0.02 (1.31) 0.08 (1.39)
Total adjustments (2.06) (1.17) (2.74) 0.81
Adjusted net income (loss) per share $0.50 ($0.45) $1.26 ($1.68)
Three Months Ended
December 31,
Year Ended
December 31,
(Unaudited) (Unaudited)
Reconciliation of U.S. GAAP Net Income (Loss) to Adjusted
EBITDA 2017 2016 2017 2016
Reported net income (loss) per share attributable to Delek $ 211.1 $ 44.2 $ 288.8 $ (153.7)
Add:
Interest expense, net 30.0 13.1 89.8 52.9
Income tax expense - continuing operations (140.7) (34.7) (29.2) (171.5)
Depreciation and amortization 47.9 29.8 153.3 116.4
EBITDA 148.3 52.4 502.7 (155.9)
Adjustments
Net inventory valuation gain (14.4) (7.8) (14.0) (33.8)
Alon goodwill impairment — — — —
Asset write offs — 2.7 0.7 4.9
Business interruption proceeds — — — (42.4)
Unrealized hedging loss 2.0 12.5 13.0 34.2
Loss on impairment of equity method investment in Alon — — — 245.3
Inventory fair value adjustment — — 33.2 —
Transaction related expenses 2.3 6.0 24.7 8.9
Gain on remeasurement of equity method investment in
Alon
— — (190.1) —
Non controlling interest 14.0 4.6 33.8 20.3
Discontinued operations loss (gain), net of tax 1.8 (80.8) 5.9 (86.3)
Total adjustments 5.7 (62.8) (92.8) 151.1
Adjusted EBITDA $ 154.0 $ (10.4) $ 409.9 $ (4.8)
(Unaudited) (Unaudited)
Three Months Ended
December 31,
Year Ended December
31,
Expected annual EBITDA $35 to $40 million; Target completion in 1Q19
Krotz Springs Alkylation Project
34
• Alkylation unit with 6,000 bpd capacity
• Approx. $103.0 million estimated capital costs
with $29.0 million spent as of Dec. 31, 2017
• Improves refinery flexibility
• Converts lower priced iso-butane into higher
value alkylate
• Enables multiple summer grades of gasoline to
be produced
• Increases octane to produce premium gasoline
• Ability to access local markets
• Estimated project returns
• Estimated annual EBITDA(1) $35-$40 million
• Driven by the conversion/Reduces
dependency on crack spread environment for
project return
• Economics based on 67 cents/gallon spread
between CBOB 7.8 and iso-butane
• Sensitivity: each 10 cents/gallon change equals
$3.2 million EBITDA change
$0.69
$0.97
$1.23 $1.21
$0.90
$0.61 $0.65
$0.69
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
Sp
re
ad
, C
PG
Gulf Coast CBOB 7.8 – Isobutane Spread
38.4 44.0
22.2
22.2
8.0
8.0
11.1 8.7
Base Alky
Change in Yields, in 000 bpd
Gasoline Diesel/Jet Heavy Oils Other
1) Please see page 37 for a reconciliation of forecasted EBITDA to forecasted net income.
Non GAAP Reconciliations of Potential Alky Unit EBITDA (1)
35
(1) Based on projected range of potential future performance from the alkylation unit project at Krotz Springs. Amounts of EBITDA, net income and timing will vary. Actual
amounts will be based on timing of completion, performance of the project and market conditions.
Reconciliation of Forecast U.S. GAAP Net Income (Loss) to Forecast
EBITDA for Alkylation Project
Forecasted
Range
Forecasted Net Income $ 17.8 $ 21.0
Add:
Interest Expense, net — —
Income tax expense 10.3 12.1
Depreciation and amortization 6.9 6.9
Forecasted EBITDA $ 35.0 $ 40.0
Non GAAP Reconciliations of Potential Dropdown EBITDA (1)
36
(1) Based on projected range of potential future logistics assets that could be dropped to Delek Logistics from Delek US in the future. Amounts of EBITDA, net income and timing
will vary, which will affect the potential future EBITDA and associated deprecation and interest at DKL. Actual amounts will be based on timing, performance of the assets,
DKL’s growth plans and valuation multiples for such assets at the time of any transaction.
Reconciliation of Forecasted Logistics Dropdown EBITDA to Forecasted Amounts under US GAAP
Delek Logistics Partners LP
($ in millions)
Forecasted Net Income Range 2.9$ 3.3$
Add: Depreciation and amortization expenses 15.6$ 17.7$
Add: Interest and financing costs, net 11.5$ 13.0$
Forecasted EBITDA Range 30.0$ 34.0$
Potential Dropdown Range
Non GAAP Reconciliations of EBITDA (1)
37
(1) Amounts of EBITDA, net income and timing will vary, which will affect the potential future EBITDA and associated deprecation and interest at DKL. Actual amounts will be
based on timing, performance of the assets, DKL’s growth plans and valuation multiples for such assets at the time of any transaction.
(2) This amount represents the forecasted 2019 performance for the total joint venture. Each partner will record performance based on their respective percentage ownership in
the joint venture.
($ in millions)
Tanks, Terminals
and Marketing
Agreement
Forecasted Net income $ 20.5
Add:
Income tax expense -
Depreciation and amortization 5.1
Interest expense, net 14.6
Forecasted EBITDA $ 40.2
Big Spring Logistics Drop Down and Marketing Agreement
Reconciliation of Forecasted Annualized EBITDA to Forecasted Net Income
($ in millions)
DKGP Joint
Venture (2)
Forecasted Net income $ 11.0
Add:
Income tax expense -
Depreciation and amortization 8.2
Interest expense, net -
Forecasted EBITDA $ 19.2
DKGP Energy Terminals LLC
Reconciliation of Forecasted 2019 EBITDA to Forecasted Net Income
DKL: Reconciliation of Cash Available for Distribution
38
(1) Distribution 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.
(2) Results in 2013, 2014 and 2015 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.
(3) In 4Q17, the reimbursed capital expenditure amounts in the determination of distributable cash flow were revised to reflect the accrual of reimbursed capital expenditures from Delek rather
than the cash amounts received for reimbursed capital expenditures during the years ended December 31, 2017, 2016 and 2015.
Note: May not foot due to rounding and annual adjustments that occurred in year end reporting.
DKL: Income Statement and Non-GAAP EBITDA Reconciliation
39
(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.
2013(4) 1Q14(4) 2Q14 3Q14 4Q14 2014 (4) 1Q15(5) 2Q15 3Q15 4Q15 2015 1Q16 2Q16 3Q16 4Q16 2016 1Q17 2Q17 3Q17 4Q17 2017
Total Net Sales $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 $107.5 $124.7 $448.1 $129.5 $126.8 $130.6 $151.2 $538.1
Cost of Goods Sold (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) ($73.5) ($88.8) (302.2) (92.6) (85.0) ($89.1) ($106.1) (372.9)
Operating Expenses (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) ($9.3) ($8.8) (37.2) (10.4) (10.0) ($10.7) ($12.3) (43.3)
Contribution Margin $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 $24.7 $27.2 $108.7 $26.5 $31.8 $30.8 $32.8 $121.9
Depreciation and Amortization (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) ($5.4) ($5.6) (20.8) (5.2) (5.7) ($5.5) ($5.5) (21.9)
General and Administration Expense (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) ($2.3) ($2.3) (10.3) (2.8) (2.7) ($2.8) ($3.6) (11.8)
Gain (Loss) on Asset Disposal (0.2) - (0.1) - - (0.1) - - - (0.1) (0.1) 0.0 - ($0.0) $0.0 0.0 (0.0) 0.0 ($0.0) ($0.0) (0.0)
Operating Income $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 $17.0 $19.2 $77.7 $18.5 $23.4 $22.6 $23.7 $88.1
Interest Expense, net (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) ($3.4) ($3.7) (13.6) (4.1) (5.5) ($7.1) ($7.3) (23.9)
(Loss) Income from Equity Method Invesments (0.1) (0.3) (0.1) (0.6) (0.2) (0.2) ($0.3) ($0.4) (1.2) 0.2 1.2 $1.6 $1.9 5.0
Income Taxes (0.8) (0.1) (0.3) (0.2) 0.5 (0.1) (0.3) (0.1) (0.1) 0.6 0.2 (0.1) (0.129) ($0.1) $0.3 (0.1) (0.1) (0.1) ($0.2) $0.6 0.2
Net Income $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 $13.2 $15.3 $62.8 $14.6 $19.0 $16.9 $18.9 $69.4
EBITDA:
Net Income $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 $13.2 $15.3 $62.8 $14.6 $19.0 $16.9 $18.9 $69.4
Income Taxes 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 $0.1 ($0.3) 0.1 0.1 0.1 0.2 (0.6) (0.2)
Depreciation and Amortization 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 $5.4 $5.6 20.8 5.2 5.7 5.5 5.5 21.9
Interest Expense, net 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 $3.4 $3.7 13.6 4.1 5.5 7.1 7.3 23.9
EBITDA $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 $22.0 $24.4 $97.3 $23.9 $30.3 $29.7 $31.1 $115.0
Investor Relations Contact:
Kevin Kremke Keith Johnson
Executive Vice President, CFO Vice President of Investor Relations
615-224-1323 615-435-1366