Delek US Holdings, Inc. ("Delek US") and Delek Logistics Partners, LP ("Delek Logistics"; and collectively with Delek US, "we" or "our") are traded on the New York Stock Exchange in the United States under the symbols "DK" and "DKL", respectively. These slides and any accompanying oral and written presentations contain forward-looking statements within the meaning of federal securities laws 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, the statements regarding the following: financial and operating guidance for future and uncompleted financial periods; financial strength and flexibility; potential for and projections of growth; return of cash to shareholders, stock repurchases and the payment of dividends, including the amount and timing thereof; cost reductions; crude oil throughput; crude oil market trends, including production, quality, pricing, demand, imports, exports and transportation costs; light production from shale plays and Permian growth; the performance of our joint venture investments, including Red River and Wink to Webster, and the benefits, flexibility, returns and EBITDA therefrom; the potential for, and estimates of cost savings and other benefits from, acquisitions, divestitures, dropdowns and financing activities; divestiture of non-core assets and matters pertaining thereto; the attainment of certain regulatory benefits; long-term value creation from capital allocation; execution of strategic initiatives and the benefits therefrom, including cash flow stability from business model transition; and access to crude oil and the benefits therefrom. Words such as "may," "will," "should," "could," "would," "predicts," "potential," "continue," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "appears," "projects" and similar expressions, as well as statements in future tense, identify forward-looking statements.
Investors are cautioned that the following important factors, among others, may affect these forward-looking statements: 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, including uncertainties regarding future decisions by OPEC regarding production and pricing disputes between OPEC members and Russia; uncertainty relating to the impact of the COVID-19 outbreak on the demand for crude oil, refined products and transportation and storage services; Delek US' ability to realize cost reductions; risks related to Delek US' exposure to Permian Basin crude oil, such as supply, pricing, production and transportation capacity; 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; the ability of the Wink to Webster joint venture to construct the long-haul pipeline; the ability of the Red River joint venture to expand the Red River pipeline; the ability to grow the Big Spring Gathering System; 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 undertakes any obligation to update or revise any such forward-looking statements.
Delek US and Delek Logistics believe that the presentation of adjusted net income (loss), adjusted net income (loss) per share ("adjusted EPS"), earnings before interest, taxes, depreciation and amortization ("EBITDA") and adjusted EBITDA provide useful information to investors in assessing their financial condition, results of operations and cash flow their business is generating. Adjusted net income (loss), adjusted EPS, EBITDA and adjusted EBITDA should not be considered as alternatives to net income (loss), operating income (loss), cash from operations or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP. Adjusted net income (loss), adjusted EPS, EBITDA and adjusted EBITDA have important limitations as analytical tools because they exclude some, but not all, items that affect net income. Additionally, because adjusted net income (loss), adjusted EPS, EBITDA and adjusted EBITDA 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 adjusted net income (loss), adjusted EPS, EBITDA and adjusted EBITDA to their most directly comparable financial measures calculated and presented in accordance with U.S. GAAP in the appendix.
First Quarter 2021
• Reported EPS of $(1.34) and adjusted EPS of $(1.69) (1)
Transforming to More Diversified EBITDA
◦ Adjusted net loss of $125 million and adjusted EBITDA loss of $41 million (1)
▪ Adjusted quarterly results were impacted by net headwinds
totaling approximately $21 million (after-tax) or $(0.28) per share (2)
• Improved sequential EBITDA despite various headwinds; headline earnings reflect a lower tax benefit attributable to a more favorable internal outlook and corresponding impact on estimated annual effective tax rates
Balance Sheet Flexibility
Record first quarter retail segment results versus comparable periods providing stability and diversity
Improving crack spreads prompted a re-start of the Krotz Springs refinery
All major planned refinery turnaround activities for the year are now complete, paving the way for higher utilization rates
Maintain strong balance sheet with $794 million of cash as of March 31, 2021
See slides 10, 11 and 12 for a reconciliation of adjusted net income to net income, adjusted net income per share to net income per share, and adjusted EBITDA to net income.
2) See earnings release for composition of headwinds
First Quarter 2021
Strong financial position with $794 million of cash on the balance sheet
Cash flow from operating activities of approx. $(34) million
Cash flow from operating activities (excluding working capital) of approx. $(13) million
Working capital impacted cash flow by approx. $(21) million
Total investing activities of approx. $(46) million:
Cash capital expenditures of approx. $67.0 million
Financing activities of approx. $86 million
Delek US Consolidated at March 31, 2021
Cash of $794 million
Net debt of $1.57 billion
Excluding Delek Logistics at March 31, 2021
Cash of $781 million
Net debt of $604 million
Balance sheet provides financial flexibility
Note: $156 million Federal Tax Income Tax Receivable
$136 million federal income tax receivable expected in 2021
Remainder expected within 12-18 months
($ in millions)
March 31, 2021
December 31, 2020
Current Portion of Long-Term Debt
Net Debt Delek US Consolidated
Net Debt Delek Logistics
Delek US, excel. Delek Logistics
Net Debt Delek US excluding DKL
Net Debt to Cap Delek US Consolidated
Net Debt to Cap (excluding DKL Debt)
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Delek US Holdings Inc. published this content on 05 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 May 2021 13:08:02 UTC.