Delek Logistics Partners Announces New Joint Venture Projects

Delek Logistics Partners, LP DKL ("Delek Logistics") announced that Delek Logistics, through wholly owned subsidiaries, has entered into two joint ventures that will construct logistics assets to serve third parties and subsidiaries of Delek US Holdings, Inc. DK ("Delek US"). Delek Logistics' total projected investment for the two joint ventures is approximately $91.0 million and will be financed through a combination of cash from operations and borrowings under its revolving credit facility. Uzi Yemin, Chairman and Chief Executive Officer of Delek Logistics' general partner, remarked: "These joint ventures mark our first development projects and should create additional growth for the partnership. In addition, these crude oil pipelines will improve our ability to serve Delek US, which will participate as a shipper in both projects, as well as, increasing our ability to provide logistics services to third parties. We look forward to working with our partners toward successful completion and operation of these joint ventures." The following provides highlights of each joint venture. Caddo Pipeline – This pipeline project will be a 50/50 joint venture with a subsidiary of Plains All American Pipeline, L.P. PAA ("Plains"). It will be a 12-inch, 80-mile crude oil pipeline originating in Longview, Texas with destinations in the Shreveport, Louisiana area, and will have a capacity of approximately 80,000 barrels per day of light sweet crude oil. Total estimated construction cost of this project is approximately $100.0 million and completion is expected in mid-2016. Upon successful completion of this project Delek US expects to be an anchor shipper on this pipeline. This pipeline will be able to supply crude to refineries in the Shreveport area and through additional connections to Delek US' refinery in El Dorado, Arkansas. Plains will build and operate this pipeline on behalf of the joint venture. RIO Pipeline (Delaware Basin to Midland Pipeline Project) – This project will be developed with Rangeland Energy, and Delek Logistics will be a 33 percent participant. It has an estimated construction cost of approximately $125.0 million, and consists of a 12-inch, 107-mile pipeline originating in north Loving County, Texas near the Texas-New Mexico border and terminating in Midland, Texas. This pipeline will have a capacity of 55,000 barrels per day, with the capability to expand to 85,000 barrels per day or more with additional capital investments. Also included in this project are terminals at each end of the pipeline, injection points and storage tanks to support this pipeline. Upon successful completion of this project Delek US expects to be an anchor shipper. Through connections in Midland, Texas, this project will deliver crude to take-away pipelines located in the Midland area. This project is expected to be completed in the first half of 2016. Rangeland will build and operate these assets on behalf of the joint venture.