Delek Logistics Partners Completes Purchase of El Dorado Storage Tanks and Product Terminal

Delek Logistics Partners, LP (NYSE: DKL) ("Delek Logistics") announced that a subsidiary of Delek Logistics has acquired, from a subsidiary of Delek US Holdings, Inc. (NYSE:DK) (“Delek US”), certain storage tanks and the products terminal located at Delek US’ El Dorado, Arkansas refinery for $95.9 million in cash. Delek Logistics financed the purchase price for these assets through new borrowings on its revolving credit facility.

Uzi Yemin, Chairman and Chief Executive Officer of Delek Logistics' general partner, remarked: “This purchase of logistics assets from Delek US, and as with the Tyler assets purchased in July 2013, was done without issuing equity. The combination of the Tyler and El Dorado assets is expected to add approximately $20.0 million of EBITDA to our operations on an annual basis, which should provide additional growth in 2014.”

Assets acquired by Delek Logistics as part of this transaction include substantially all active storage tanks and the sole refined products terminal at the El Dorado refinery. These assets are expected to contribute an approximately $10.1 million of EBITDA (earnings before interest, taxes, depreciation and amortization) annually. The storage tanks acquired have approximately 2.5 million barrels of aggregate shell capacity and consist of 158 tanks and ancillary assets, including piping and pumps. The products terminal operated at an approximate average throughput of 12,500 barrels per day during the nine months ended September 30, 2013 and has an estimated capacity of 26,700 barrels per day. These assets are located adjacent to and within Delek US’ El Dorado, Arkansas refinery and will continue to support that operation in the future. The transaction was approved by the Conflicts Committee of Delek Logistics’ general partner, which is comprised solely of independent directors.

In connection with the closing of the transaction, Delek US, Delek Logistics and various of their subsidiaries entered into, among other agreements, a throughput and tankage agreement for the terminal assets, storage tanks and related assets. This agreement includes minimum throughput commitments for the products terminal, an annual storage fee, annual inflation based price escalations and an eight year initial contract term.

Non-GAAP Disclosures:

(a) Delek Logistics defines EBITDA as net income (loss) before net interest expense, income tax expense, depreciation and amortization expense.

EBITDA is a non-U.S. GAAP supplemental financial measure that management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess, among other things:

• Delek Logistics’ operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or financing methods;
• the ability of Delek Logistics’ assets to generate sufficient cash flow to make distributions to our unitholders;
• Delek Logistics’ ability to incur and service debt and fund capital expenditures; and
• the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.

Delek Logistics’ management believes that the presentation of EBITDA provides useful information to investors in assessing Delek Logistics’ financial condition, Delek Logistics’ results of operations and the cash flow Delek Logistics’ business is generating. EBITDA should not be considered as an alternative to net income, operating income, or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP. EBITDA has important limitations as an analytical tool because it excludes some, but not all items that affect net income. Additionally, because EBITDA may be defined differently by other companies in our industry, Delek Logistics' definitions of EBITDA may not be comparable to similarly titled measures of other companies, thereby diminishing its utility.

About Delek Logistics Partners, LP

Delek Logistics Partners, LP, headquartered in Brentwood, Tennessee, is a growth-oriented master limited partnership formed by Delek US Holdings, Inc. (NYSE: DK) to own, operate, acquire and construct crude oil and refined products logistics and marketing assets.

Safe Harbor Provisions Regarding Forward-Looking Statements

This press release contains “forward-looking” statements within the meaning of the federal securities laws. These statements contain words such as “possible,” “believe,” “should,” “could,” “would,” “predict,” “plan,” “estimate,” “intend,” “may,” “anticipate,” “will,” “if,” “expect” or similar expressions, as well as statements in the future tense, and can be impacted by numerous factors, including the fact that a substantial majority of Delek Logistics' contribution margin is derived from commercial arrangements with Delek US, thereby subjecting Delek Logistics to Delek US’s business risks, in addition to risks relating to the securities markets generally, the impact of adverse market conditions affecting the business of Delek Logistics, adverse changes in laws including with respect to tax and regulatory matters and other risks as disclosed in the annual reports on Form 10-K, quarterly reports on Form 10-Q and other reports and filings with the United States Securities and Exchange Commission for both Delek US and Delek Logistics. There can be no assurance that actual results will not differ from those expected by management or described in forward-looking statements of Delek Logistics or Delek US. Neither Delek Logistics nor Delek US undertake any obligation to update or revise such forward-looking statements to reflect events or circumstances that occur, or of which Delek Logistics or Delek US become aware, after the date hereof.