Refiner Perspec+ve. Dan Gordon VP Fuel Supply Delek US

Similar documents
UBS Global Oil and Gas Conference May 22, Joe Gorder Executive Vice President Marketing and Supply

9M 2003 Financial Results (US GAAP)

Defining the Debate: Crude Oil Exports

CRUDE BY RAIL REFINER S PERSPECTIVES. Presented by Joseph Israel, February 2013

Valero History 1980s Started out in the natural gas industry Grew to become the largest intrastate pipeline in Texas

02/02/2011

Fuel Focus. Understanding Gasoline Markets in Canada and Economic Drivers Influencing Prices. Issue 20, Volume 8

B A K E R & O B R I E N

Investor Presentation

U.S. Rail Crude Oil Traffic

DOWNSTREAM PETROLEUM 2017 DOWNSTREAM PETROLEUM

Downstream & Chemicals

U.S. Rail Crude Oil Traffic

Changes to America s Gasoline Pool. Charles Kemp. May 17, Baker & O Brien, Inc. All rights reserved.

AN ECONOMIC ASSESSMENT OF THE INTERNATIONAL MARITIME ORGANIZATION SULPHUR REGULATIONS

A summary of national and global energy indicators. FEDERAL RESERVE BANK of KANSAS CITY

Analysts Briefing. 23 August 2016

2015 Interim Results Announcement

STATUS OF THE U.S. REFINING INDUSTRY

Investor Presentation

Doing business with Petrobras - Procurement Strategies and Local Content. Policy.

Monro, Inc. Second Quarter Fiscal 2019 Earnings Call. October 25, 2018

North American Storage and Transportation Trends

Changing Crude Qualities and Their Impacts on U.S. Refinery Operations AM-14-42

MONRO MUFFLER BRAKE, INC. PROVIDES FOURTH QUARTER AND FISCAL 2017 FINANCIAL RESULTS

Refining & Marketing. Mario Taraborrelli COO

Forward-Looking Statements

Forward-Looking Statements

Q Analyst Teleconference. 9 August 2018

Downstream Petroleum Sector The Growing Prominence of Asian Refining

Asphaltene Precipitation in Domestic Sweet. Ron Fisher BP, Refining and Logistics Technology June 11, 2015

Trond-Erik Johansen President ConocoPhillips Alaska

A New Proxy for Coking Margins Forget the Crack Spread

05/17/2011

DOING BUSINESS WITH PETROBRAS: PROCUREMENT STRATEGIES

PRISM TM Refining and Marketing Industry Analysis

Fuel Oil Sulfur Spreads Set to Widen Through 2020 Regulations upend bunker fuel market.

Market Report Series: Oil 2018 Analysis & Forecasts to Energy Community 10 th Oil Forum, Belgrade, 25 September 2018

May 2018 Short-Term Energy Outlook

U.S. Crude Exports and Impact on Trade

Regional Refining Outlook

2010 Interim Results Presentation. August 23, 2010 Hong Kong

ENERGY SLIDESHOW. Federal Reserve Bank of Dallas

Featuring: Tom Kloza, Oil Price Information Service (OPIS) SPONSORED BY.

HEAVY FUEL THE NARROWING LIGHT-HEAVY CRUDE OIL SPREAD

Sinopec Corp. Q Results Announcement. 29 October 2010

Downstream & Chemicals

Fuel Focus. National Overview. Recent Developments. In this Issue. Volume 11, Issue 13 June 24, 2016 ISSN

The Asphalt Oil Binder Business A Necessary Evil or a Godsend From a Refiner s Perspective

The Changing North American Crude Market: Impacts to/from the U.S. Refining Complex

Technological Pathways to Lower Carbon Transportation

Downstream & Chemicals

Highlights from the Argus Americas Crude Summit January 23-25, Dennis Sutton

The Shale Boom Heard Around the World

The effects of increasing access to the U.S. Gulf Coast on global and North American price spreads

Plug Power and Workhorse Provide FedEx Express With First ProGen Fuel Cell-Powered Electric Delivery Van

Implications of Residual Fuel Oil Phase Out

ENERGY SLIDESHOW. Federal Reserve Bank of Dallas

ABLC! Advancing Renewable Chemicals! November 10, 2014! Copyright 2014 Renewable Energy Group, Inc.

The Alliance October 23, 2008

MEDIA STATEMENT - FOR RELEASE ON 31 JULY 2015 RELEASED BY CEF (SOC) LTD ON BEHALF OF THE DEPARTMENT OF ENERGY ENQUIRIES: MR J MOKOBANE

California s Petroleum Infrastructure Overview and Import Projections

Methodology. Supply. Demand

April Título da apresentação DD.MM.AAAA

Adam Bedard, CEO ARB Midstream, LLC Midstream View on Rail. June 2, 2015

Crude Export and the New Dynamics

US Shale Liquids Surge: Implications for the Crude Oil Value Chain

KIRBY CORPORATION ANNOUNCES 2017 FIRST QUARTER RESULTS first quarter earnings per share of $0.51 compared with $0.71 in the 2016 first quarter

Wyoming: At the Crossroads of the Boom

Welcome Welcome... 1

THE THUNDER ROLLS IMO 2020 S MARKET IMPACTS AND CHALLENGES TO REFINERS (PART 2)

CERI Commodity Report Crude Oil

Downstream. Mike Wirth. Executive Vice President Downstream Chevron Corporation

The Impact of Shale Oil Production Growth in the US

AN ECONOMIC AND ENVIRONMENTAL ASSESSMENT OF EASTERN CANADIAN CRUDE OIL IMPORTS

Trinidad and Tobago Energy

Weekly Fuel Monitor Update

Results Certified by Core Labs for Conoco Canada Ltd. Executive summary. Introduction

PREVIEW FundamentalEdge Report October 2018

For more information on Marathon Petroleum Company LLC, visit its Web sites at or

Certification Experience from A Biofuels Processor. ISCC Technical Committee South East Asia Meeting Bangkok, 9 April 2012

EURONAV TALKS IMO 2020 FROM THE VIEW OF A SHIPOWNER JUNE

Martin Laubscher Barloworld Automotive

Challenges to Ethanol Blending in the Southeast

Basics of Market Fundamentals. March 7, 2007

PERSPECTIVES FOR THE BRAZILIAN REFINING INDUSTRY

TANK BARGE OPPORTUNITIES RELATED TO CRUDE OIL PRODUCTION & MOVEMENT

WEEKLY REFINING INDICATORS REPORT WEEK ENDING 06/17/2016

Golden State Gouge The Summer of Record Refining Profits

Fuel Focus. Understanding Gasoline Markets in Canada and Economic Drivers Influencing Prices. Volume 6, Issue 23

The company s sales have averaged $3-5 million since 2011, however, because of the doubling of the cost of product over the past 2 years, it is

Downstream & Chemicals

Growing U.S. Oil and Gas Production Set to Reshape Competitive Position of U.S. Refineries

Global Downstream Petroleum Outlook

Energy Security of APEC Economies in a Changing Downstream Oil Environment

Pakistan Refining Industry An Overview

Exxon Bets on Downstream U.S. Returns Beaumont refinery expansion complements Permian investment.

Investor Presentation. September 2015

Emerging Trends in Petroleum Markets

1H 2003 Financial Results (US GAAP)

Transcription:

Refiner Perspec+ve Dan Gordon VP Fuel Supply Delek US

Safe Harbor Provision Delek US Holdings is traded on the New York Stock Exchange in the United States under the symbol DK and, as such, is governed by the rules and regulaions of the United States SecuriIes and Exchange Commission. This presentaion may contain forward- looking statements that are based upon current expectaions and involve a number of risks and uncertainies. Statements concerning our current esimates, expectaions and projecions about our future results, performance, prospects and opportuniies and other statements, concerns, or mapers that are not historical facts are forward- looking statements, as that term is defined under United States securiies laws. Investors are cauioned that the following important factors, among others, may affect these forward- looking statements. These factors include but are not limited to: risks and uncertainies with the respect to the quaniies and costs of crude oil, the costs to acquire feedstocks and the price of the refined petroleum products we ulimately sell; management's ability to execute its strategy through acquisiions and transacional risks in acquisiions; our compeiive posiion and the effects of compeiion; the projected growth of the industry in which we operate; changes in the scope, costs, and/or Iming of capital projects; losses from derivaive instruments; general economic and business condiions, paricularly levels of spending relaing to travel and tourism or condiions affecing the southeastern United States; potenial conflicts of interest between our majority stockholder and other stockholders; and other risks contained in our filings with the United States SecuriIes and Exchange Commission. Forward- looking statements should not be read as a guarantee of future performance or results and will not be accurate indicaions of the Imes at, or by which such performance or results will be achieved. Forward- looking informaion is based on informaion available at the Ime and/or management s good faith belief with respect to future events, and is subject to risks and uncertainies that could cause actual performance or results to differ materially from those expressed in the statements. Delek US undertakes no obligaion to update or revise any such forward- looking statements. 2

US Crude Refining Currently ~115 Refiners / Refining Complexes, Compared to 158 a Decade Ago 54 of those Refineries have Coking Capacity Refineries 15 Refineries 4 Coking Capacity Refineries Refineries Refineries 25 Refineries 11 Coking Capacity 25 Refineries 12 Coking Capacity 7 Refineries 1 Coking Capacity Refineries 43 Refineries 26 Coking Capacity

Integrated Downstream Energy Company Breadth of Exposure Across Refining, Wholesale Marke+ng and Retail Distribu+on Refining Segment Operates 140,000 BPD of combined refined producion capacity in Texas and Arkansas Delek ) LogisIcs Segment Owned crude/product terminals and pipeline assets in Texas, Arkansas and Tennessee Retail Segment Approximately 372 convenience stores - - primarily in Tennessee, Alabama and Georgia Strategically Located Refineries Allow For Broad Wholesale and Retail Product Distribu+on Opportuni+es Longview Crude Oil Hub Retail Strategic crude oil supply point that allows our refining system access to domesic inland and Gulf Coast feedstock Delek LogisIcs 372 Stores LocaIons in 7 states El Dorado Refinery 80,000 BPD 9.0 complexity Memphis Terminal Nashville Terminal Abilene Terminal San Angelo Terminal Big Sandy Terminal Tyler Refinery 60,000 BPD 9.4 complexity (1) As of September 30, 2012 4

Crude Slate Transi+on at El Dorado Underway We An+cipate El Dorado s Crude Slate Will Be Weighted Toward WTI- linked Crude In Early 2013 El Dorado Has A Diverse Crude Slate Supplying More WTI- Linked Barrels Focus Is On First Half of 2013 Historically processed local Arkansas, domesic offshore and foreign crude oils Ability to displace expensive foreign and GC crudes with discounted local, inland crudes TargeIng 80,000 bpd of non- Gulf Coast crude deliveries to El Dorado El Dorado Refinery Crude Slate (3Q12) Receiving More WTI- Linked Barrels (BPD) Local Arkansas Crude WTI/WTS - Midland Rail Midland Crude, 14% Rail, 24% Local Crude, 27% Other Crude, 35% ~27k bpd ~21k bpd ~25k bpd ~25k bpd ~28k bpd ~28k bpd Rail 35k bpd 18k bpd June- 11 3Q11 4Q11 1Q12 2Q12 3Q12 1H13 5

Improved Access to Rail Supplied Crude to El Dorado Rail capabili+es improve access to more economical types of crude Access to addiion types of crude Expected increase in Q4 total throughput Flexibility to process wider range Including Bakken, Canada, Eagle Ford, and Cushing Allows increased throughput to above 70,000 bpd at the El Dorado Refinery Allows for the potenial of heavier crude in 2013 Actual Crude Delivered Via Rail (BPD) Rail Unloading Capability (BPD) 2012 Light to Medium Sour Crude Heavy Crude 10,000 9,405 11,905 13,636 18,000 18,000 1,038 2,816 May Jun Jul Aug Sep 0 2011 3Q 2012 1Q 2013 (1) Heavy Crude capability has the opion of up to 10k bpd of heavy crude or up to 32k bpd of light crude 6

Rail Line Access El Dorado on the UP via EDW Canadian Rail Access Direct access to UP provides direct access to a variety of crude markets Easy connecion between US Class 1 rail roads and Canadian Class 1 rail roads Union Pacific System Map El Dorado Refinery 80,000 BPD 9.0 complexity

Op+ons Galore Canada Wide range of crudes, from ultra heavy bitumen to Canadian Bakken and everything in between United States Greater concentraion of lighter barrels, both sweet and sour

Delek US Approach to Crude by Rail El Dorado Crude Flexibility UIlize Wide Variety of Crude Types Merchant refiner orientaion, seeking to opimize crude pricing Assay limitaions, paricularly Canadian, makes managing variety difficult

Op+ons Come With A Price Key Issues Manifest traffic is considerably more difficult to manage than unit trains Managing Iming on delivery becomes more difficult when changing origins Handling heavy cars is more cumbersome and Ime consuming than light cars Outside forces add to uncertainty: weather, derailment, congesion Management of back office operaions becomes more difficult with increased variability and higher volume of disinct transacions