Summary Observations Regarding CVR's Campaign
A3 Enhancing Our Retail Network
High-Growth Opportunity Complementing Existing Operations
Serves as a natural fuel short while improving DK's cash flow
stability and reducing its Renewable Identification Number
("RIN") obligations
Three new-to-industry ("NTI") stores were recently constructed
and are significantly outperforming legacy stores by 4.8x in
terms of expected Adjusted Retail Segment Earnings
Organic Retail Expansion Offers Attractive Return Opportunity
Low build
multiple
5.0x
Substantial value
12.0x uplift potential
9.0x
•
25%+ projected IRR on NTI stores
Improving retail footprint by closing and discontinuing leases of
underperforming stores and upgrading legacy stores
Delek
(1)
US
(2)
Proven Track Record of Growth...
Adjusted Retail Segment Earnings Per Store
($ in thousands) (2)
18% CAGR
4.0x
NTI Build Multiple
Retail Trading
(1)
(TEV / NTM EBITDA) Multiple
...with High Growth Potential
Adjusted Retail Segment Earnings ($ in millions)
$187
~250 stores
$150
$132
$120
$95
$53
2016A
2017A
2018A
2019A
2020A
As of 4/9/2021; retail peer set: Alimentation Couche-Tard, Inc., Casey's General Stores, Inc., Murphy USA Inc.
Derived from dividing Adjusted Retail Segment Earnings by ending number of stores each period
~300 stores
~$100
2021E
2025E
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