Summary Observations Regarding CVR's Campaign
DKL Incentives Aligned with Significant Value Creation
☐ The original grant of DKL GP interests
to Mr. Yemin, which took place nearly
eight years ago, was disclosed in our
2014 proxy statement
☐ The grant was designed to incentivize
Mr. Yemin, as Chairman and CEO of
Delek and DKL, to increase the value of
DKL which he did
-
DKL EBITDA Growth ($ in millions)
23% CAGR
$245
$59
2013
2020
Under Mr. Yemin's management, DKL has significantly
outperformed, on a TSR basis, since the IPO and
provided substantial value to Delek shareholders (1)
240%
□ In August 2020, Delek and DKL
eliminated the incentive distribution
rights ("IDRS") in a transaction that
was similar to those that have been
executed by most MLPs
DKL
24%
Peer Average
CVR's claims about Delek's IDRs are a transparent attempt to distract shareholders from its own contradictory
arguments and self-serving objectives. Delek believes CVR's litigation related to the IDRS is a campaign tactic to
generate interest in its unnecessary proxy contest and is without merit. We intend to vigorously defend the Company
and Delek shareholders should not be fooled by such disingenuous and spurious attacks
Delek
US
(1) TSR is calculated from 11/2/2012 to 4/9/2021; peer set includes: Enterprise Products Partners LP., 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
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