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Delek Logistics Partners, LP
Investor Presentation
MLPA Investor Conference June 2017
2
Disclaimers
These slides and any accompanying oral and written presentations contain forward-looking statements by Delek Logistics Partners, LP (defined as “we”, “our”, or
”Delek Logistics”) that are based upon our current expectations and involve a number of risks and uncertainties. Statements concerning current estimates,
expectations and projections about our future results, performance, prospects and opportunities and other statements, concerns, or matters that are not
historical facts are "forward-looking statements," as that term is defined under United States securities laws.
Investors are cautioned that the following important factors, among others, may affect these forward-looking statements: our substantial dependence on Delek
US Holdings, Inc. (“Delek”) (NYSE: DK) or its assignees and their respective ability to pay us under our commercial agreements; risks and costs relating to the age
and operational hazards of our assets including, without limitation, costs, penalties, regulatory or legal actions and other affects related to releases, spills and
other hazards inherent in transporting and storing crude oil and intermediate and finished petroleum products; the timing and extent of changes in commodity
prices and demand for crude oil and refined products; the suspension, reduction or termination of Delek's or its assignees' or any third-party's obligations under
our commercial agreements; as it relates to potential future growth opportunities and other potential benefits for Delek Logistics, the risks and uncertainties
related to the expected timing and likelihood of completion of the proposed merger between Delek and Alon USA Energy, Inc. (“Alon”)(NYSE:ALJ), including the
timing, receipt and terms and conditions of any required governmental and regulatory approvals of the proposed merger that could reduce anticipated benefits
or cause the parties to abandon the transaction, the ability to successfully integrate the businesses of Delek and Alon, the occurrence of any event, change or
other circumstances that could give rise to the termination of the merger agreement, the possibility that stockholders of Delek may not approve the issuance of
new shares of common stock as consideration for the merger or that stockholders of Alon may not approve the merger agreement, the risk that the parties may
not be able to satisfy the conditions to the proposed transaction in a timely manner or at all, risks related to disruption of management time from ongoing
business operations due to the proposed transaction, the risk that problems may arise in successfully integrating the businesses of the companies, which may
result in the combined company not operating as effectively and efficiently as expected, 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 and other factors discussed in our other filings with the United States Securities
and Exchange Commission.
Forward-looking statements should not be read as a guarantee of future performance or results and will not be accurate indications of the times at, or by which
such performance or results will be achieved. Forward-looking information is based on information available at the time and/or management's good faith belief
with respect to future events, and is subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in
the statements. We undertake no obligation to update or revise any such forward-looking statements.
Non-GAAP Disclosures:
Delek Logistics believes that the presentation of EBITDA, distributable cash flow and distribution coverage ratio provide useful information to investors in
assessing its financial condition, its results of operations and cash flow its business is generating. EBITDA, distributable cash flow and distribution coverage ratio
should not be considered in isolation or 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, 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 and net cash provided by operating activities. Additionally, because EBITDA and distributable
cash flow may be defined differently by other partnerships in its industry, Delek Logistics' definitions of EBITDA and distributable cash flow may not be
comparable to similarly titled measures of other partnerships. Please see the appendix for a reconciliation of EBITDA, and distributable cash flow to their most
directly comparable financial measures calculated and presented in accordance with U.S. GAAP.
Investment Highlights
(1) Based on price per common limited unit as of close of trading on May 26, 2017.
(2) Annualized distribution based on quarterly distribution for quarter ended March 31, 2017, paid on May 12, 2017.
(3) For reconciliation please refer to pages 28 and 29.
(4) Annualized EBITDA estimates based on expected performance at the time of purchase. Actual results will and have changed based on among other things, market conditions, operating rates
and expenses.
(5) Currently 5.1% of the ownership interest in the general partner is owned by three members of senior management of Delek US (who are also directors of the general partner). The remaining
ownership interest is held by a subsidiary of Delek US.
3
• Current Price: $30.70/unit (1)
•Market Capitalization: $760.9 million (1)
• Current Distribution: $0.69/LP unit qtr.; $2.76/LP unit annualized(2)
• Current Yield: 9.0% (1)(2)
• Distribution per LP unit growth rate target = minimum of 10% annually through
2019
Overview (NYSE: DKL)
• 1Q17 Net income of $14.6 million and Distributable Cash Flow (DCF) coverage
ratio of 0.98x
• $300.5 million credit availability at March 31, 2017; leverage 3.83x
• 1Q17 DCF $20.6 million and EBITDA $23.9 million (3)
• $250 million 6.75% Sr. Notes due 2025 issued in May 2017; proceeds reduced
revolver balance
Conservative Financial Position
• Primarily traditional MLP assets/structure
• Inflation-indexed fees for most contracts
• Primarily long initial term fee-based contracts with minimum volume
commitments
Stable Cash Flow Focused
• Eight acquisitions since July 2013; generally in 8x-10x valuation range based on
initial annualized EBITDA(4)
• Two joint venture pipeline development projects - RIO in the Permian Basin
completed Sept. 2016; Caddo completed Jan. 2017
Growth Oriented
• Currently owns approximately 63.5%, incl. 2% GP interest (5)
•Majority of DKL assets support DK refining system
• $30 million DKL limited partner unit repurchase authorization in place
• Definitive agreement to acquire remaining shares in Alon USA
Sponsor - Delek US (NYSE: DK)
Delek US – A Growth Oriented, Financially Strong Sponsor
• 155,000 bpd of refining capacity in Texas and Arkansas
• Access to crude / product terminals, pipeline and storage assets
Operational Strength
(1) As of March 31, 2017 financial statements in the Delek US 10Q filed on May 9, 2017.
(2) As of May 26, 2017 trading for Delek US stock.
(3) Consists of ownership in Delek Logistics Partners.
(4) Please see Delek US’ presentation from January 3, 2017 “Delek US Holdings to Acquire the Remaining Shares of Alon USA” that is posted on its website. Delek US expects this
transaction to close on July 1, 2017. Please see entire presentation and webcast for additional information related to this transaction.
Strategically Located Refineries Provide Crude Oil Supply Flexibility and Broad Product Distribution(1)
• Current DK $1.6 billion equity market value and $1.8 billion enterprise value(1)(2)
• $233.5 million net debt at March 31, 2017; $591.4 million in cash (1)
Financial Strength
REFINING SEGMENT
155,000 BPD in total
El Dorado, AR
80,000 BPD
10.2 complexity
Tyler, TX
75,000 BPD
8.7 complexity
9 Terminals
Approx. 1,250 miles of pipelines
8.5 million bbls storage capacity
LOGISTICS SEGMENT (3)
4
• Agreement to acquire the remaining 53% of the outstanding common stock of Alon USA (NYSE:ALJ) that
Delek US does not already own; special shareholder meeting on June 29, 2017 to vote on transaction;
Closing expected July 1, 2017.
• Creates the premiere Permian based refining system with approximately 300,000 bpd of refining
capacity and an estimated $78 million of logistics EBITDA for future potential dropdowns to DKL
Growth Oriented (4)
ALON TRASACTION (4)
147,000 BPD refining capacity – Big
Spring, TX and Krotz Springs, LA
Asphalt and Renewable operations
Approx. 300 Retail locations
Delek Acquisition of Alon to Create Premier Permian Based Refining System
DKL positioned to provide logistics support for 302,000 bpd of Crude Throughput Capacity (~69% Permian Basin Based)
5
• Creates the premier Permian based refining company
• 7th largest independent refiner with 302,000 barrels
per day crude throughput capacity
• Access to approximately 207,000 barrels per day of
Permian sourced crude
• Largest exposure to Permian crude of the independent
refiners as percentage of crude slate
• Permian Basin production expected to continue to
grow
• Improved drilling efficiencies have benefited
production economics
• DKL positioned to benefit by providing future
logistics support to a larger refining system
Permian Basin Crude Oil Production (2)
Combined Access to Permian Basin Crude
Permian Crude Access as % of Crude Slate (3)
1) Barclays research. Company reports. TSO includes WNR.
2) TPH Research report, “Oil Global Supply & Demand: Model Update”, Drillinginfo, EIA, - March 2017.
3) TPH Research; Crude slate - TSO includes WNR acquisition; WNR includes 100% of NTI; PBF includes both Chalmette & Torrance
Note: Information on this slide is derived from Delek US’ presentation from January 3, 2017 “Delek US Holdings to Acquire the Remaining Shares of Alon USA” that is posted on its
website. Delek US expects this transaction to close on July 1, 2017. Please see entire presentation and webcast for additional information related to this transaction.
90 117
207
61%
75%
69%
0%
20%
40%
60%
80%
0
50
100
150
200
250
ALJ DK Combined
%
o
f
Cr
u
d
e
Sl
at
e
In
0
0
0
b
p
d
Refining Peers by Crude Capacity (Mbbls) (1)
185 302
443
879
1,149
1,794
2,107
2,485
CVR Energy Delek + Alon Holly
Frontier
PBF Energy Tesoro Marathon
Petroleum
Phillips 66 Valero
0%
20%
40%
60%
80%
%
o
f
cr
u
d
e
sl
at
e
0
1,000
2,000
3,000
4,000
5,000
2009 2011 2013 2015 2017E 2019E
In
0
0
0
b
p
d
Delek Acquisition of Alon to Create Strong Platform for Logistics Growth
Increases Dropdown Inventory; Growing Logistics Assets Support Larger Crude Sourcing and Product Marketing System
6
• 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
1) 2017E based on sell-side consensus per Factset as of 12/30/16. 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, actual performance of the assets and Delek Logistics in the future.
2) Based on 7x multiple. Assumed for illustrative purposes. Will vary based on market conditions and valuations at the time of the dropdown of each asset.
3) Please see slide 30 for a reconciliation of EBITDA.
Note: This slide is derived from Delek US’ presentation from January 3, 2017 “Delek US Holdings to Acquire the Remaining Shares of Alon USA” that is posted on its website. Delek US
expects this transaction to close on July 1, 2017. Please see entire presentation and webcast for additional information related to this transaction.
Strong EBITDA Growth Profile Supporting Distribution Growth (1)
$112
$12
$34
$32 $190
$-
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
$140.0
$160.0
$180.0
$200.0
2017 DKL
EBITDA (1)
Asphalt Drop
down Inventory
Big Spring Drop
Down Inventory
Krotz Springs
Drop Down
Inventory
Total EBITDA
Potential
• Drop downs, excluding Krotz Springs, create significant cash flow to Delek US
• $42-$50m EBITDA equates to ~$300-350m cash proceeds to DK (2)
• Provides visibility for continued DKL LP double digit distribution growth
• Significant GP benefits
Dropdown Item
Estimated EBITDA
($ million / year)
Asphalt Terminals $11-13
Big Spring Asphalt Terminal $9-11
Big Spring assets $8-10
Big Spring Wholesale Marketing $14-16
Total Excluding Krotz Springs $42-50
Krotz Springs assets $30-34
Total $72-84 (3)
($ in millions)
Delek Logistics Partners, LP
Overview
NY008LRP - 912119_1.wor -L r - r- rLL P 912119_1.wo
San Angelo
Fort Worth Dallas
Waco
Tyler
Shreveport
Monroe
El Dorado
Beaumont New Orleans
Little Rock Memphis
Brentwood
Nashville
Knoxville
Abilene
Big Spring
Krotz Springs
NY008LRP - 912119_1.wor - rL 1.P 912119_
SALA GATHERING SYSTEM
AR
LA
Magnolia El Dorado
~765 miles (1) of crude and
product transportation
pipelines, including the 195
mile crude oil pipeline from
Longview to Nederland, TX
~ 600 mile crude oil gathering
system in AR
Storage facilities with 7.3
million barrels of active shell
capacity
Rail Offloading Facility
Pipelines/Transportation Segment
Wholesale and marketing
business in Texas
9 light product terminals: TX,
TN, AR
Approx. 1.2 million barrels of
active shell capacity
Wholesale/Terminalling Segment
8
Stable Asset Base Positioned for Growth
Growing logistics assets support crude sourcing and product marketing for customers
(NY008LRP) 912119_1.wor1. r) 912119 rr) 912119 1.1.) 912119(NY008LRP _ o
EAST TEXAS LOGISTICS SYSTEM
Mt. Pleasant
Big Sandy
Longview
Kilgore
Henderson
Tyler
DELEK THIRD-PARTY ASSETS
Enterprise Pipeline (Product)
Delek US Refinery
DELEK LOGISTICS (DKL)
Product Terminal
Product Tank Farm
Product Pipeline
Corporate Headquarters
Crude Tank Farm
Crude Pipeline
ALON THIRD-PARTY ASSETS (2)
Alon Asphalt Terminal
Alon USA Refinery
Alon Terminal
Third Party Terminal
ALJ West Coast Asphalt Terminals (2)
Mojave, Phoenix, Flagstaff, Elk Grove and
Bakersfield
NY008LRP - 912119_1.wor - .P rL - .- .P rP r008L 912119_1LY R - . o - .
Paramount/
Long Beach
Mojave
CA
Bakersfield
Elk Grove
Flagstaff
Phoenix
NV
AZ
(1) Includes approximately 240 miles of leased pipeline capacity.
(2) DK should acquire assets through the pending ALJ acquisition which creates potential for drop-down assets to DKL. Drop-down subject to Delek Logistics' conflicts committee review and
approval.
Contract Highlights
• The Lion Pipeline System and SALA Gathering
System are supported by a long-term contract that
includes three take-or-pay commitments
• Initial term of 5 years, maximum term of 15
years (2)
• Crude oil transportation throughput of 59
MBbl/d in Q1 2017, supported by a MVC of
46 MBbl/d (3)
• Refined products transportation throughput
of 51 MBbl/d in Q1 2017, supported by a
MVC of 40 MBbl/d
• Crude oil gathering throughput of 17 MBbl/d
in Q1 2017, supported by a MVC of 14
MBbl/d
• East Texas Wholesale Marketing: contractual
agreement with DK with MVC of 50 MBbl/d
1) Based on percentage of Q1 2017 gross margin earned from contracts. Duration
excludes automatic renewal at Delek US’ option.
2) Maximum term assumes an extension of the commercial agreement pursuant to
terms thereof.
3) Volumes gathered on the SALA Gathering System will not be subject to an additional
fee for transportation on the Lion Pipeline System.
4) Gross margin generated from the minimum volume commitment provisions of each
contract.
5) Gross margin generated by throughput volumes above the minimum volume
commitment provision of each contract.
6) Gross margin generated by assets without contracts.
9
$23 $25 $26 $25
$28 $31 $32 $31 $32 $31 $28 $28 $29
$3
$4 $4 $4
$3
$4 $5 $4 $4 $4
$4 $4 $3 $6
$11
$4
$10 $4
$4 $4 $2 $1 $3
$2 $3
$5 $31
$37 $37
73%
62%
76% 65%
81% 78% 77% 82% 85% 79% 81% 79% 78%
$0
$10
$20
$30
$40
$50
1Q142Q143Q144Q141Q152Q153Q154Q151Q162Q163Q164Q161Q17
$
in
m
ill
io
n
s
Contracted Min Gross Margin Contracted Excess Gross Margin
Uncontracted Gross Margin Contracted Min Gross Margin (% of total)
78% of 1Q17 Gross Margin from Minimum Volume
Commitments
2014 2015
15%
1%
28% 56%
< 1 Year 1 to 3 Years 3 to 5 Years > 5 Years
Duration of Contracts (1)
(4) (5)
(6)
Multi-Year Contracts with Firm Commitments / MVCs
2016 2017
Improving Performance and Financial Flexibility to Support Growth
10
1) Amounts provided in the Nov. 1, 2012 IPO prospectus showing pro forma results forecasted performance for 12 months ending Sept. 30, 2013. Reconciliation on pg. 25
2) Reconciliation provided on page 28. Results in 2013 and 2014 are as reported excluding predecessor costs related to the drop down of the tank farms and product terminals at both Tyler and El Dorado
during the respective periods. Also, excluded are predecessor costs related to the crude oil storage tank and rail offloading racks acquired in March 2015. Tyler assets were acquired in July 2013 and El
Dorado assets acquired Feb. 2014.
3) Reconciliation on pg. 28.
4) Reconciliation on pg. 29.
Solid Net Income and EBITDA performance since IPO in Nov. 2012
$36.0
$47.8
$72.0 $66.8 $62.8 $62.0
$48.9
$63.8
$95.4 $96.5 $97.3 $97.5
$0.0
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
Forecast 12 Months
Ended 9/30/13(1)
2013 (2) 2014 (2) 2015 (3) 2016 (3) 2017 LTM
$
in
m
ill
io
n
s
Net Income EBITDA
$52.9
$80.3 $81.1 $81.7 $81.9
$0.0
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
$70.0
$80.0
$90.0
2013 2014 2015 2016 2017 LTM
$
in
m
ill
io
n
s
Distributable Cash Flow
DCF supported distribution growth (4)
$242.0 $251.8
$351.6 $392.6 $392.0
$150.0
$440.8
$347.0 $301.4 $300.5
$542.5
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
12/31/14 12/31/15 12/31/16 3/31/17 3/31/17 PF
$
in
m
ill
io
n
s
Revolver Excess Capacity
Revolver Borrowings
6.75% Sr. Notes (net of discount)
Financial Flexibility to support continued growth
Increased Distribution with Conservative Coverage and Leverage
11
Distribution per unit has been increased seventeen consecutive times since the IPO
$0.375 $0.385 $0.395 $0.405 $0.415 $0.425
$0.475 $0.490 $0.510 $0.530 $0.550
$0.570 $0.590 $0.610 $0.630
$0.655 $0.680 $0.690
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
Increased 84% through 1Q 2017 distribution
1.39x 1.32x 1.35x 1.30x
1.61x 2.02x 1.42x 1.67x
1.23x 1.47x 1.50x 1.17x 1.19x 1.31x 0.99x 0.90x 0.98x
1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 3Q 15 4Q15 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17
Distributable Cash Flow Coverage Ratio (2)(3)
1.70x 1.58x
2.28x 2.40x
3.21x 2.69x 2.55x 2.56x 3.00x
3.14x 3.11x 3.49x 3.48x 3.47x 3.70x 3.85x 3.83x
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17
Revolver Leverage Ratio (4)
(1) MQD = minimum quarterly distribution set pursuant to the Partnership Agreement.
(2) Distribution coverage based on distributable cash flow divided by distribution amount in each period. Please see page 29 for reconciliation.
(3) 1Q17 based on total distributions payable on May 12, 2017.
(4) Leverage ratio based on LTM EBITDA as defined by credit facility covenants for respective periods.
Avg. 1.35x in 2013
Avg. 1.68x in 2014
Avg. 1.37x in 2015
Avg. 1.09x in 2016
Going Forward
Assets Positioned for Permian
Basin Growth
1) Deutsche Bank Research, Permian Basin: “You are still the one” 11/28/16, breakeven based on flat natural gas of $3.00/MMbtu; NGLs priced 35% of WTI; regional
commodity differential and 25% royalty.
2) EIA production data through May 15, 2017, Drilling Productivity Report; Baker Hughes rig count as of May 26, 2017.
3) WTI spot price as of May 29, 2017.
4) EIA production data through May 15, 2017, Drilling Productivity Report.
13
Crude Oil Production Grew Despite Rig Decline (2)
Permian Basin Estimated Breakeven Crude Oil Price(1)
Crude Oil Production % Change since Jan. 2015 (4)
$37.77
$37.95
$36.55
$39.57
$39.60
$39.86
$41.76
$42.39
$43.90
$45.20
$45.42
$45.51
$47.57
$47.68
$47.87
$49.27
$52.01
$52.45
$53.87
$54.83
$56.96
$59.52
$70.80
$- $20 $40 $60 $80
Lower Sprayberry - N Midland
Eagle Ford - Oil Window
Upper Wolfcamp - S Midland
Upper Wolfcamp - N Midland
STACK - Oil Window
Bakken - Core - McKenzie
Upper Wolfcamp - C Reeves
Avalon Oil - New Mexico
Upper Wolfcamp - S Reeves
Niobrara - Middle Core MRL
SCOOP -- Springer
Bone Spring - NM
Jo Mill - N Midland
Middle Sprayberry - N Midland
Niobrara - Middle Core XRL
Bone Spring, TX
Wolfcamp - NM
Bakken - non core
Eagle Ford - Condensate
Lower Wolfcamp - C Reeves
STACK - Condensate
Brushy Canyon - NM
Cline - N Midland
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
Jan-15 May-15 Sep-15 Dec-15 May-16 Aug-16 Dec-16 May-17
%
C
h
an
ge
s
inc
e
Ja
n
. 2
0
1
5
Permian Eagle Ford Bakken
0
100
200
300
400
500
600
-
500
1,000
1,500
2,000
2,500
3,000
Jan-07 Jan-09 Feb-11 Mar-13 Apr-15 May-17
Ac
tive
Ri
g
C
o
u
n
t
C
ru
d
e
O
il
P
ro
d
. (
MB
b
l/
d
)
Rig Count Oil Prod. (MBbl/d)
Permian WTI $49.80 (3)
Production continued to grow through the downturn in crude oil prices; Improved Efficiencies
Permian Basin Attractive Drilling Economics Support Growth
Caddo Pipeline
■ Delek Logistics (50%)/Plains (50%)
■ Est. total cost: $123 million (1)
■ Capacity: 80,000 Bbl/d
■ Length: 80 miles
■ Completed: January 2017
■ Provides additional logistics support to El
Dorado refinery with third crude supply source
Rio Pipeline (Delaware Basin)
■ Rangeland (67%)/ Delek Logistics (33%)
■ Cost: $119 million
■ Capacity: 55,000 Bbl/d
■ Length: 107 miles
■ Completed: September 2016
■ Benefiting from increased drilling activity in the
area; offers connection to Midland takeaway
pipelines
(1) Estimated investment pending final construction amounts at Caddo.
(2) Actual performance will vary based on market conditions and operations which may change the actual multiple in future periods.
■ Delek Logistics target EBITDA multiple is 8x to 10x investment at the joint venture level (2)
■ Delek US is an anchor shipper on both projects
■ Delek Logistics received $780,000 distribution from Rio Pipeline and Caddo Pipeline JVs in 2Q 2017 for past performance
14
Joint Venture Pipeline Projects
Create platforms for future growth; Ability to leverage Permian position
Approximately 195 mile crude oil pipeline -
Mainline pipeline flows from north to south
Capacity of ~36,000 bpd
Pipeline has been at capacity since March
Temporary FERC tariff in place to encourage spot
shippers
Intend to move to base tariff as Permian
activity increases and differentials weaken
Base at $1.50/Bbl and effective June 1
temporary incentive tariffs of $1.25/Bbl at
1,000 Bbl/d to 9,999 Bbl/d; $1.00/Bbl at
10,000 Bbl/d or greater
Flexibility to explore options for available capacity
on this pipeline
Evaluations of potential increases in
utilization and capacity of Paline system may
offer future growth
Explore ability to reverse to flow from the
Gulf Coast to allow potential shippers to take
advantage of crude oil price differentials
Note: The previous contract that expired on June 30, 2016 had 35,000 Bbl/d of mainline capacity reserved for third parties to use exclusively during a term that began on January 1, 2015.
Delek Logistics elected to extend the contract at 10,000 Bbl/d from July 1, 2016 to December 31, 2016. Following the December 31, 2016 expiration, volume shipped is subject to the FERC
tariff and incentive rates that are currently in place.
15
Asset Overview: Paline Pipeline
16
Asset Overview: West Texas Wholesale Business
1) 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, 1Q16 gross margin included $1.5
million, or $1.18/Bbl, and 1Q17 gross margin included $1.1 million, or $0.86/Bbl.
2) Source: Baker Hughes Drilling Rig report through May 26, 2017.
3) TPH research report, “Oil Global Supply & Demand” March 2017.
$0
$10
$20
$30
$40
$50
$60
$70
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100
200
300
400
500
600
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ct
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Feb-
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1
6
Sep-
1
6
O
ct
-1
6
No
v-
1
6
D
ec-1
6
Ja
n
-1
7
Feb-
1
7
M
ar
-1
7
Ap
r-
1
7
M
ay
-1
7
W
TI
(
$
/Bb
l)
Ri
g Co
u
n
t
Rig Count WTI, $/bbl
$7.2 $7.6
$8.5
$15.5
$14.0
$28.2
$8.0
$6.9
$0.7 $3.5
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
2009 2010 2011 2012 2013 2014 2015 2016 Q1'16 Q1'17
West Texas Wholesale and Marketing Gross Margin
13,377
Bbl/d
14,353
Bbl/d
15,493
Bbl/d
16,523
Bbl/d 18,156
Bbl/d
16,707
Bbl/d
16,357
Bbl/d
14,370
Bbl/d
West Texas Wholesale and Marketing
• Operates in an area around the Permian Basin
• Purchases refined products from third parties for resale at owned and
third party terminals in west Texas
• Includes ethanol blending activity
• Positioned to benefit from positive industry dynamics:
• Drilling rig count has increased since May 2016, there are currently
349 rigs operating in the Permian Basin(2)
• Improved efficiencies in the Permian Basin have benefitted
rig production levels
• Forecast for continued production growth
• Current takeaway pipeline capacity is adequate
• Potential for tight production/takeaway capacity in future (1) (1) (1) (1)
($ in millions)
Permian Basin Drilling Rig Count(2) and WTI Price
1.9 2.0
2.5
3.3
3.7
3.9
0.0
1.0
2.0
3.0
4.0
5.0
2015A 20 A 2017E 2018E 2019E 2020E
Substantial Increase in Permian Production Expected(3)
(MMBbl/d)
14,467
Bbl/d
13,257
Bbl/d
(1) (1)
Several Visible Pathways for Potential Growth
17
Distribution
Acquisitive
Growth
Target 10% minimum distribution per LP unit annual growth through 2019
Driven by organic growth at DKL and potential increased drop down inventory at sponsor
Contracts expiring in 2017 have been extended by Delek US for additional five year option
Proven ability to make 3rd party asset acquisitions (4 since 2013)
Ability to utilize relationship with Delek US to make acquisitions (asset/corporate)
Focus on continued distribution growth
(1) Please see Delek US’ presentation from January 3, 2017 “Delek US Holdings to Acquire the Remaining Shares of Alon USA” that is posted on its website. Delek US
expects this transaction to close on July 1, 2017. Please see entire presentation and webcast for additional information related to this transaction.
(2) Please see slide 5 for additional information related to Delek US’ position in the Permian based on the agreement to acquire Alon USA.
(3) Please see slide 6 for additional information related potential drop down assets at Delek US based on the agreement to acquire Alon USA.
(4) Based on Delek US’ announced changes for its refineries; actual results may vary based on each refinery’s respective operating rate.
Organic Growth
Joint venture pipeline projects expected to contribute DCF growth in 2017
Focus on incremental improvements in existing asset base
Financial Flexibility provides ability to be opportunistic
Opportunities
Potential growth in RIO and Caddo joint venture projects
Greenfield pipeline projects in Midland
Benefit from
Growth
Improvement in throughput capability and/or flexibility at Delek US’ refineries(4) in 2014 and 2015
was supported by DKL logistics assets.
Ability to Leverage Relationship with Delek US
Potential
Benefits from
DK Acquisition
of ALJ (1)
Delek US has a definitive agreement to acquire the remaining 53% of the outstanding common
stock of Alon USA (NYSE:ALJ) that it does not already own; expected to close on July 1, 2017
Creates the premier Permian based refining system with ~200,000 bpd of Permian crude access (2)
DKL well positioned to support future logistics projects in the Permian Basin for this system
Potential for $72 to $84 million of logistics EBITDA to be dropped down to DKL in the future(3)
Peer Comparisons(1)
18
Current Yield as of 5/26/17
Leverage Ratio (1)
2.5x
3.1x 3.7x
3.8x 3.8x 4.0x 4.3x
4.6x 4.7x
5.4x
6.1x
-
1.0
2.0
3.0
4.0
5.0
6.0
7.0
WNRL VLP MMP PSXP DKL MPLX EPD ETP HEP TLLP PAA
9.4% 9.3% 9.0% 8.2% 7.2% 7.1% 7.0% 6.3% 6.2%
4.7% 4.6% 3.8%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
ETP PBFX DKL PAA HEP WNRL TLLP MPLX EPD MMP PSXP VLP
(1) Based on 1Q 2017 reported results. Peer information based on company reports and Factset/NASDAQ 5/29/17.
19
Questions and Answers
Majority of assets support
Delek US‘ strategically
located inland refining
system
Inflation-indexed fees for
most contracts
Majority of all margin
generated by long term,
fee-based contracts with
volume minimums
Agreements with Delek US
related to capex/opex
reimbursement and limit
Delek US force majeure
abilities
Limited commodity price
exposure
Primarily Traditional,
stable MLP assets
Appendix
Delek US' Refineries are Strategically Positioned and Flexible
21
Inland refinery located in East Texas
75,000 bpd, 8.7 complexity
Primarily processes inland light sweet crudes
(100% in 2016)
94% yield of gasoline, diesel and jet fuel in
2016
El Dorado Refinery (1) Tyler Refinery (1)
Inland refinery located in southern Arkansas
80,000 bpd, 10.2 complexity
(configured to run light or medium sour
crude)
Supply flexibility that can source West Texas,
locally produced, and/or Gulf Coast crude
90% yield of gasoline and diesel in 2016
Associated gathering system positioned for
Brown Dense development
(1) As reported by Delek US.
Asset Overview: Lion Pipeline System and SALA Gathering
22
SALA Gathering System
• Provides access to local Arkansas, east Texas
and north Louisiana crudes to Delek US’ El
Dorado refinery.
• 600 mile crude oil gathering system,
primarily within a 60-mile radius of the El
Dorado refinery.
• Crude price environment plays role in
production from local producers.
15,900
17,676
20,747 22,152
22,656
20,673
17,756 19,001 16,531
-
5,000
10,000
15,000
20,000
25,000
30,000
2010 2011 2012 2013 2014 2015 2016 1Q16 1Q17
B
ar
re
ls
p
er
d
ay
SALA Gathering
Crude Volume (bpd) (1)
46,515 47,906
54,960 56,555 56,342
58,744
49,694 53,461
57,366
52,071 53,799 51,355
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2013 2014 2015 2016 Q1 2016 Q1 2017
B
ar
re
ls
p
er
d
ay
Lion Pipeline System
Crude Volume (bpd) Refined product (bpd)
Lion Pipeline System
• Provides non-gathered crude oil to Delek US’
El Dorado refinery and connects to
Enterprise TE Products Pipeline to move
finished products.
• Crude and light product throughput
benefitted from improvements at Delek US’
El Dorado refinery completed in 1Q14
turnaround that increased light crude
capability by 10,000 bpd.
(1) Delek US acquired majority ownership of Lion Oil in April 2011. Volumes in 2011 are based on 247 days of operations following the acquisition. Amount in 2010 are based on previous
ownership data.
19 13
75
97
107
122 118 115
2011 2012 2013 2014 2015 2016 Q1 2016 Q1 2017
Terminalling Assets (1)
• Refined products terminalling services for Delek US
and/or third parties
• Comprised of terminals located in:
• Memphis and Nashville, TN;
• Tyler, Big Sandy (1) and Mt. Pleasant, TX;
• El Dorado and North Little Rock, AR
• Delek US Tyler refinery turnaround and expansion
lowered volumes in 1Q15
-
3
6
9
12
2011 2012 2013 2014 2015 2016
West Texas Wholesale Other Terminals Drop Down Terminals
(1) Big Sandy was not operating during 2011, 2012 and the majority of 2013. However, contract with Delek US has a minimum throughput requirement of 5,000 Bbl/d along with a
minimum storage requirement. For reporting purposes, San Angelo and Abilene terminals are included in the west Texas wholesale business. The remaining are in terminalling.
(2) Excludes approximately 10 MBbls of shell capacity that is not currently in service.
(3) Includes effect of Tyler refinery turnaround during 1Q 2015.
23
Asset Overview: Terminalling
Terminal Count
Volume (MBbl/d) (3)
Location
Number of
Tanks
Active Shell
Capacity (MBbls)
Number of Truck
Loading Lanes
Truck Loading
Capacity (MBbl/d)
Big Sandy, TX --- --- 3 25
Memphis, TN 12 126 3 20
Nashville, TN (2) 10 128 2 15
Tyler, TX --- --- 11 91
North Little Rock, AR --- --- 2 17
El Dorado, AR --- --- 3 35
Mount Pleasant, TX 7 175 3 10
Terminalling Asset Detail
Summary of Certain Contracts (8)
24
`
Initial / Maximum Term (1) Service
Three Months Ended March
31, 2017 Throughput (bpd)(2)
Minimum
Commitment (bpd) Current Tariff / Fee
Tariff / Fee
Index (10)
Refinery
Shutdown Force Majeure
N/A N/A FERC N/A N/A
N/A N/A
Five / Fifteen Years Crude Oil Transportation 58,744 46,000 (3) $0.9464/Bbl (4) FERC
Five / Fifteen Years
Refined Products
Transportation 51,355 40,000 $0.1113/Bbl FERC
Five / Fifteen Years Crude Oil Gathering 16,531 14,000 $2.5452/Bbl (4) FERC
Five / Fifteen Years Crude Oil Transportation 16,176 35,000 $0.4454/Bbl (5) FERC
Five / Fifteen Years Crude Oil Storage N/A N/A $278,370 per month FERC
Ten (7) Marketing - Tyler Refinery 63,396 50,000
$0.7636/Bbl<50 kbpd;
$0.7245/Bbl>50 kbpd (7) CPI-U
Five / Fifteen Years
Dedicated Terminalling
Services 6,360 10,000 $0.5567/Bbl FERC
Eight / Sixteen Years
Dedicated Terminalling
Services 8,768 8,100 $0.2310/Bbl PPI-fg
Eight / Sixteen Years Storage N/A N/A $63,000 per month PPI-fg
Five / Fifteen Years
Dedicated Terminalling
Services 7,194 5,000 $0.5554/Bbl FERC
Four / Fourteen Years
Refined Products
Transportation 7,278 5,000 $0.5554/Bbl FERC
Five / Fifteen Years Storage N/A N/A $55,625 per month FERC
Eight / Sixteen Years
Dedicated Terminalling
Services 64,666 50,000 $0.3500/Bbl PPI-fg
Eight / Sixteen Years Storage N/A N/A $829,823 per month PPI-fg
Eight / Sixteen Years Crude Oil Storage N/A N/A $180,000 per month PPI-fg Not applicable to this asset
Eight / Sixteen Years
Dedicated Terminalling
Services 14,744 22,500 $0.5000/Bbl PPI-fg
Eight / Sixteen Years Storage N/A N/A $1.3 million per month PPI-fg
Nine / Fifteen Years Crude Oil Offloading (9) N/A N/A $1.00/bbl light; $2.25/bbl heavy PPI-fg
El Dorado
Paline Pipeline
East Texas Marketing
Memphis Terminal
Termination Provision
East Texas Crude Logistics
North Little Rock Terminal
Crude Oil Transportation
Base tariff of $1.50/Bbl with
volume incentive rates available
(6)
Tyler
Big Sandy Terminal & Pipeline
Lion Pipeline System (and SALA Gathering System)
After 1st two
years, 12
months
notice
required
After 3rd
year, 12
months
notice;
unless min.
payments
made then
cannot be
terminated
by Delek
Logistics
Summary of Certain Contracts - footnotes
25
(1) Maximum term assumes an extension of the commercial agreement pursuant to the terms thereof. Please note some terms
began as early as Nov. 7, 2012.
(2) Represents average daily throughput for the period indicated.
(3) Excludes volumes gathered on the SALA Gathering System.
(4) Volumes gathered on the SALA Gathering System will not be subject to an additional tariff fee for transportation on the Lion
Pipeline System to the El Dorado refinery.
(5) For any volumes in excess of 50,000 bpd, the throughput fee will be $0.682/Bbl.
(6) Current base FERC tariff of $1.50 per barrel. A temporary incentive tariff of $1.25/bbl if a shipper volume is 1,000 bpd to 9,999
bpd and $1.00/bbl if a shipper volume is above 10,000 bpd are in currently in place. Previous capacity lease agreement for
35,000 bpd equates to approximately $1,700,000 per month from Jan. 1, 2015 to Jun. 30, 2016 that entitled third parties to their
respective capacities on this pipeline. From July 1, 2016 to December 31, 2016 the capacity lease agreement was for 10,000 bpd
and equates to approximately $410,000 per month. The pipeline now has a FERC tariff for potential shippers.
(7) Following the primary term, the marketing agreement automatically renews for successive 1-yr terms unless either party
provides notice of non-renewal 10 months prior to the expiration of the then-current term. The tariff per barrel is based on
volume in each period.
(8) For more detailed information regarding certain contracts, refer to documents filed with the SEC, including the Annual Reports
filed on Form 10-K, Quarterly Reports filed on Form 10-Q, Current Reports on Form 8-K and 8-K/A filed on Nov. 7, 2012, Jul. 31,
2013, Aug. 1, 2013, Feb. 14, 2014 and Apr. 6, 2015.
(9) Crude oil offloading throughput agreement includes an obligated minimum quarterly throughput fee of $1.5 million for
throughput of a combination of light and heavy crude.
(10) The tariff/fee index can increase or decrease based on the index change pursuant to each contract.
Amended and Restated Omnibus Agreement
26
Key Provisions
Delek US will indemnify Delek Logistics for certain liabilities, including environmental and other liabilities, relating to contributed
assets.
Delek US has a ROFR if Delek Logistics sells any assets that serves Delek US' refineries or the Paline Pipeline.
GP will not receive a management fee from the Partnership; Delek Logistics will pay Delek US an annual fee for G&A services and
will reimburse the GP and/or Delek US for certain expenses.
Limitations on exposure to assets contributed by Delek US relative to maintenance capital expenditures and certain expenses
associated with repair/clean-up related events.
For additional detailed information regarding this agreement, please refer to documents filed with the SEC, including the Current
Report on Form 8-K filed Apr. 6, 2015 and the quarterly report 10Q filed August 6, 2015, as amended on November 6, 2015.
Summary Organization Structure
27
36.5% interest
Limited partner-common
94.9%
ownership interest (1)
2.0% interest
General partner interest
Incentive distribution rights
Delek Logistics Partners, LP
NYSE: DKL
(the Partnership)
100% ownership interest
Public Unitholders
Operating Subsidiaries
61.5% interest
Limited partner-common
Delek Logistics GP, LLC
(the General Partner)
Delek US Holdings, Inc.
NYSE: DK
(1) Currently a 5.1% interest in the Delek US ownership interest in the general partner is held by three members of senior management of Delek US. The remaining ownership interest will be
indirectly held by Delek.
Income Statement and Non-GAAP EBITDA Reconciliation
28
(1) Includes approximately $2.0 million of estimated annual incremental general and administrative expenses expected to incur as a result of being a separate publicly traded partnership.
(2) Interest expense and cash interest both include commitment fees and interest expense that would have been paid by the predecessor had the revolving credit facility been in place during the 12
months ended 9/30/13 period presented and Delek Logistics had borrowed $90.0 million under the facility at the beginning of the period. Interest expense also includes the amortization of debt
issuance costs incurred in connection with our revolving credit facility.
(3) Forecast provided in the IPO prospectus on Nov. 1, 2012.
(4) Results in 2013 and 2014 are as reported excluding predecessor costs related to the drop down of the tank farms and product terminals at both Tyler and El Dorado during the respective periods.
(5) Results for 1Q15 are as reported excluding predecessor costs related to the 1Q15 drop downs.
Note: May not foot due to rounding.
Reconciliation of Cash Available for Distribution
29
(1) Distribution for forecast period based on $1.50 per unit; Distribution for year ended December 31, 2013, 2014, 2015 and 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.
(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.
Note: May not foot due to rounding and annual adjustments that occurred in year end reporting.
(dollars in millions, except coverage) 1Q13 (2) 2Q13(2) 3Q13(2) 4Q13(2) 2013 (2) 1Q14 (2) 2Q14(2) 3Q14(2) 4Q14(2) 2014 (2) 1Q15(2) 12Q15(2 3Q15(2) 4Q15(2) 2015 (2) 1Q16 2Q16 3Q16 4Q16 2016 (2) 1Q17
Reconciliation of Distributable Cash Flow 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 $29.2 $13.9 $100.7 $23.5
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) (0.1) (0.1) (0.3) (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) - - - 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 - (0.0) - 0.0 (0.0)
Ch nges in assets and liabilities 12.1 (4.9) (5.1) 6.3 8.3 3.4 (6.0) (1.6) 3.0 (1.2) 3.3 (7.3) 3.6 20.5 20.1 (5.4) (7.1) (10.0) 7.7 (14.9) (3.6)
Maint. & Reg. Capital Expenditures (1.3) (1.1) (1.3) (1.8) (5.1) (0.8) (1.0) (0.8) (3.9) (6.5) (3.3) (3.9) (3.5) (2.7) (11.8) (0.7) (0.9) (0.7) (3.6) (5.9) (2.2)
Reimbursement for Capital Expenditures 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 0.7 0.4 1.9 3.1
Distributable Cash Flow $13.1 $12.8 $13.4 $13.3 $52.9 $17.0 $24.0 $17.7 $21.8 $80.3 $16.8 $21.1 $22.6 $18.9 $81.3 $20.4 $23.7 $19.1 $18.5 $81.7 $20.6
Coverage (1) 1.39x 1.32x 1.35x 1.30x 1.35x 1.61x 2.02x 1.42x 1.67x 1.68x 1.23x 1.47x 1.50x 1.17x 1.37x 1.19x 1.31x 0.99x 0.90x 1.09x 0.98x
Total Distribution (1) $9.4 $9.7 $9.9 $10.2 $39.3 $10.5 $11.9 $12.4 $13.1 $47.9 $13.7 $14.4 $15.1 $16.1 $59.3 $17.1 $18.1 $19.3 $20.5 $75.0 $21.0
Non GAAP Reconciliations of Potential Dropdown EBITDA (1)
30
(1) Based on projected range of potential future logistics assets that could be dropped to Delek Logistics from Delek US in the future. Amounts of EBITDA, net income and timing
will vary, which will affect the potential future EBITDA and associated deprecation and interest at DKL. Actual amounts will be based on timing, performance of the assets,
DKL’s growth plans and valuation multiples for such assets at the time of any transaction.
Reconciliation of Forecasted Logistics Dropdown EBITDA to Forecasted Amounts under US GAAP
Delek Logistics Partners LP
($ in millions)
Forecasted Net Income Range 13.6$ 15.9$
Add: Depreciation and amortization expenses 33.6$ 39.2$
Add: Interest and financing costs, net 24.8$ 28.9$
Forecasted EBITDA Range 72.0$ 84.0$
Potential Dropdown Range
31
Investor Relations Contact:
Kevin Kremke Keith Johnson
Executive Vice President Vice President of Investor Relations
615-224-1323 615-435-1366