Niska Gas Storage Partners LLC NAPTP Annual Conference Bill Shea Chairman, President and Chief Executive Officer Vance Powers Chief Financial Officer Rick Staples EVP and Chief Commercial Officer May 21, 2014
Table of Contents I. Company Overview II. Storage Operations III. Financial Summary IV. Questions V. Appendix
I. Company Overview
Executive Management Team Bill Shea Over 25 years of business leadership experience Chairman, President and 18 years of MLP leadership experience across a broad spectrum of midstream operations with CEO Buckeye Partners, PVR Partners…
Niska Gas Storage Partners LLC (NYSE: NKA) Largest independent natural gas storage owner and operator in North America with 250 Bcf of working gas capacity, serving most of North Americas key markets Storage assets reallocate excess…
The Niska Story May 2014 Strong Assets Track record of safe and reliable delivery of essential natural gas storage services for over 25 years Very Supportive Private Equity Sponsor Strong sponsorship support through Riverstone…
Niska Looks Forward: The Next Phase of Growth & Value Creation Continued growth through expansion and diversification of existing operations Increased emphasis on midstream acquisitions Management depth of experience in natural gas…
II. Storage Operations
Natural Gas Storage Fundamentals Capitalizes on the seasonal, monthly and daily imbalance between natural gas supply and demand Provides customers with the ability to store natural gas for use or resale in a higher value period…
High Quality, Strategically Located Assets North American Niska Market Marketplace Access Western Canada Canadian Operations (AECO HubTM) 154 Bcf Eastern Canada West Countess (Alberta) 70.5 Bcf Central Midwest Suffield…
Proven Low-Cost Organic Growth Track Record 25 Bcf added at Wild Goose in California at an average cost of 0.10/Mcf, accretive even in a weak spread environment 251 Capacity (Bcf) Organic Growth of 21 Bcf in Fiscal 2012/13 at…
Strong and Diversified Customer Base Producers - Operational Simplicity 11% Marketers & Hedge Funds Power Generators - Commodity Price Arbitrage - Operational Reliability 8% 36% % of Contracted Volume (FY15) Pipelines &…
Niskas Storage Portfolio Strategy: Strategic Competitive Differentiator 1. Long Term Firm Contracting (35 - 45%) Tenor usually 1-3 years, can be longer, and are multi cycle storage contracts with diverse customers Storage Capacity…
Risk and Reward in Varying Market Conditions Risk / Reward Matrix Captures superior value Can provide larger Optimization vs. Long Term Firm margins Minimal opportunity Higher opportunity cost cost Long Term Firm Value…
Largest Refill Challenge in History Fiscal 2015 Summer Injection Season, Starting and Ending Inventories US Lower 48, mmbtu 4,500 3,929 Forecast 4,000 3,810 3,851 3,804 3,818 3,565 3,452 3,399 3,420 3,500 3,302 3,194 3,116…
III. Financial Summary
Summary Financials Adjusted EBITDA ( Millions)(1) Cash Available for Distribution/ Distributed Cash ( Millions) (1) 250 140 196 117.5 200 120 in millions in millions 100 136 139 140 46.5 150 74.4 74.0 80 63.7 100 60…
Balance Sheet Management As at March 31, 2011 2012 2013 2014 millions Cash 117.7 13.3 10.6 7.7 Debt: 8.875% Senior Notes due 2018 800.0 643.8 643.8 6.5% Senior Notes due 2019 575.0 Revolving Credit Agreement - 150.0 65.0 119.5…
Fiscal 2015 Guidance Low Estimate ( Millions) High Estimate ( Millions) 160 160 140 140 140 120 120 120 * 26 100 * 26 100 114 85 in millions in millions 80 94 80 65 26 60 60 26 59 40 40 39 20 20 0 0 Adjusted…
Niskas Recent Financial Accomplishments Date Action Notes April, 2013 Equity Restructuring - Eliminated subordinated unit over-hang - Improved distribution growth prospects for all common unitholders August, 2013 Distribution…
IV. Questions
For Further Information Contact: Investor Relations Kate Walsh or Brandon Tran 403-513-8600 irniskapartners.com 400 - 607 8th Ave SW Calgary, AB T2P 0A7
V. Appendix
Reconciliation of Non-GAAP Financial Measures Fiscal Years Ended March 31, 2011 2012 2013 2014 millions Net (loss) earnings 57.5 (165.8) (43.6) (9.0) Adjustments: Interest 77.0 74.6 67.0 66.3 Income tax (benefit) expense (30.1)…
Historical Income Statements LTM Ended Fiscal Years Ended March 31, 2011 2012 2013 2014 31/12/2013 millions REVENUES Long-term contract revenue 160.6 146.0 163.3 135.4 139.2 Optimization, net 69.5 122.6 (22.6) 72.0 25.8 230.1…
Historical Balance Sheets As at March 31, 2011 2012 2013 2014 millions Cash 117.7 13.3 10.6 7.7 Margin deposits 79.1 - 18.5 32.6 Receivables 47.7 51.5 109.4 156.4 Inventory 133.6 230.7 83.4 75.1 Prepaids and other 5.8 3.2 4.7…
Explanation of Non-GAAP Financial Measures Niska uses and discloses the financial measures Adjusted EBITDA and Cash Available for Distribution in this presentation as follows: Non-GAAP Financial Measure Adjusted EBITDA Niska defines…
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