Summary Observations Regarding CVR's Campaign
Benefits of Maintaining Interest in and Structure of DKL
CVR Proposal: Halt Dropdowns to DKL and Buy-In Public Interest in DKL
Substantial Value since
IPO in 2012
+
Alternative Financing
Vehicle
+
Attractive Acquisition
Currency
Total Shareholder Return since IPO
240%
24%
Delek
US
Latest Dropdown Transaction
Dropdown of Big Spring Gathering
System (March 2020)
$100 million cash &
5 million DKL units
Delek
LOGISTICS
(72%)
DKL
■UAN MLP (CVR) ■Peer Average (¹)
✓ Bolster DK liquidity during market dislocation
✓ The value of the equity consideration has
increased by ~$145 million, implying an EBITDA
transaction multiple of ~9x
"[DK's] MLP subsidiary offers additional growth while its retail ops offer consistent performance." – Wells Fargo (2) (6/9/2020)
Alternatives for value creation are regularly reviewed, but we believe our current structure
provides the most value for shareholders at this time
Delek
US
Source: FactSet as of 4/9/2021
(1)
(2)
Peer set includes: Enterprise Products Partners L.P., Holly Energy Partners, L.P., Magellan Midstream Partners, L.P., MPLX LP, Plains All American Pipeline, L.P., PBF Logistics LP and Phillips 66 Partners
LP. TSR calculated based on price performance of stock over given time period and assumes all dividends are reinvested
Permission to quote was neither sought nor provided
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