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National Association of Publicly Traded Partnerships – Texstar Midstream Services

Texstar Midstream Services · May 21, 2014 · 28 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. National Association of Publicly Traded Partnerships – Texstar Midstream Services – slide 1
    National Association of Publicly Traded Partnerships Investor Presentation May 21-22, 2014
  2. National Association of Publicly Traded Partnerships – Texstar Midstream Services – slide 2
    Southcross Overview Traditional Gathering and Processing MLP South Texas and Eagle Ford Integrated business from gathering through NGL fractionation Proven ability to grow organically and through acquisitions Low commodity price…
  3. National Association of Publicly Traded Partnerships – Texstar Midstream Services – slide 3
    Southcross History 2009 2010 2011 2012 2013 2014 Acquired core Expanded Won anchor Completed Completed Initiated Webb assets Gregory contracts for Woodsboro expansion of Pipeline processing Eagle Ford processing Bonnie View…
  4. National Association of Publicly Traded Partnerships – Texstar Midstream Services – slide 4
    Investment Highlights Strategically Located Asset Base Integrated Top-Tier Midstream Value Management Chain in South Team Texas Southcross is a traditional MLP with an integrated midstream value chain and assets leveraged…
  5. National Association of Publicly Traded Partnerships – Texstar Midstream Services – slide 5
    Top Tier Management Team Name / Title Years of Experience Previous Experience David Biegler 45+ Chairman & CEO Estrella Energy Chairman & CEO Chairman & Co-Founder Regency Gas Services Vice Chairman, President & COO TXU Corp Chairman,…
  6. National Association of Publicly Traded Partnerships – Texstar Midstream Services – slide 6
    Strategically Located Asset Base Eagle Ford Shale 20% of over 115 Billion in 2014 US Lower 48 Spending Eagle Ford Production Forecast 7,000 6,000 Production (MMcf/d) Eagle Ford Spending 5,000 20% 4,000 Total U.S. E&P 3,000…
  7. National Association of Publicly Traded Partnerships – Texstar Midstream Services – slide 7
    Track Record of Growth Proven Ability to Develop Projects and Complete Acquisitions Pipeline Additions Plant Additions Acquisitions McMullen Pipeline (2011) Woodsboro Processing Plant (2012) Enterprise Alabama (2011) Moselle…
  8. National Association of Publicly Traded Partnerships – Texstar Midstream Services – slide 8
    2014 Accomplishments Announced launch of Webb Pipeline with signing of anchor shipper contract January Completed 149 million follow-on equity offering February Announced hiring of John Bonn as President and Chief Operating…
  9. National Association of Publicly Traded Partnerships – Texstar Midstream Services – slide 9
    Expansion of Southcross Eagle Ford Footprint 9
  10. National Association of Publicly Traded Partnerships – Texstar Midstream Services – slide 10
    Pipeline Acquisition Investment Highlights Opportunities for Synergies 39 million purchase price Ability to source gas at a cheaper rate Expected to be accretive to distributable cash flow in 2014 Ability to use pipeline capacity to…
  11. National Association of Publicly Traded Partnerships – Texstar Midstream Services – slide 11
    Western Eagle Ford Expansion Western Eagle Ford Production Eagle Ford Oil & Gas Volumes Counties: Dimmit, Webb and LaSalle Counties: Dimmit, Webb and LaSalle 90,000 9,000 800,000 Gas Production (MMcf / Month) 80,000 8,000…
  12. National Association of Publicly Traded Partnerships – Texstar Midstream Services – slide 12
    Strategically Located Asset Base When we have the Webb Pipeline completed, we will have in place an extensive pipeline system covering almost the entirety of the Eagle Ford gas condensate area. We really like the competitive…
  13. National Association of Publicly Traded Partnerships – Texstar Midstream Services – slide 13
    Integrated Midstream Value Chain Southcross Services Competitive Advantages Natural gas gathering, processing, treating, Integrated Midstream Business compression and transportation Gathering, processing and fractionation…
  14. National Association of Publicly Traded Partnerships – Texstar Midstream Services – slide 14
    Attractive Residue and Dry Gas Downstream Competitive Advantages of Dry Gas System Multiple gas sale outlets, including Southcross direct connections to industrial markets Diverse market outlets are an advantage in attracting…
  15. National Association of Publicly Traded Partnerships – Texstar Midstream Services – slide 15
    Direct Access to Attractive NGL Markets Competitive Advantages of NGL System Advantaged footprint in expanding Gulf Coast petrochemical infrastructure and NGL markets End-use NGL markets provides attractive pricing and market…
  16. National Association of Publicly Traded Partnerships – Texstar Midstream Services – slide 16
    Growing Corpus Christi Market 6th largest port in US in terms of total tonnage Infrastructure projects and expansions are underway Proximate to Eagle Ford Shale Corpus Christi is 13% of Texas refining capacity Access to Gulf of…
  17. National Association of Publicly Traded Partnerships – Texstar Midstream Services – slide 17
    Lower Gulf Coast Projects Present Opportunities Petrochemical Projects Lyondell to add 800 million lbs/year of ethylene capacity at Corpus Christi plant by late 2015 OxyChem and MexiChem to build 1.2 billion lbs/year ethylene cracker…
  18. National Association of Publicly Traded Partnerships – Texstar Midstream Services – slide 18
    Growing NGL Markets in US and for Export The US is Now the Top Propane Exporter 70 YTD 2013 Propane Exports United States NGL Growth 60 (MBbls/d) 50 (MMbls) 40 30 NGL Export Ethane Demand 20 Demand 10 0 2,004 626…
  19. National Association of Publicly Traded Partnerships – Texstar Midstream Services – slide 19
    Recent Southcross Performance Adjusted EBITDA (in Millions) NGL Barrels Sold per Day (in Thousands) Processed Natural Gas Volumes (Bbtu/d) 19
  20. National Association of Publicly Traded Partnerships – Texstar Midstream Services – slide 20
    Southcross Path to Distribution Growth Today Fill Processing Capacity Future Growth Potential 335 MMcf/d South Texas processing Utilize new Webb Pipeline to fill Current pipeline capacity enables additional capacity processing…
  21. National Association of Publicly Traded Partnerships – Texstar Midstream Services – slide 21
    Comparative Yield Southcross trades at an attractive yield relative to other gathering and processing MLPs 10.0% 9.3% 9.0% 7.8% 7.8% 7.7% 8.0% 7.5% 6.9% 6.7% 7.0% 6.6% 6.0% 5.6% 5.5% Barclays Gathering & Processing MLP Median…
  22. National Association of Publicly Traded Partnerships – Texstar Midstream Services – slide 22
    Southcross Investment Summary Strategically located asset base leveraged to Eagle Ford shale growth Proven ability to develop projects and complete acquisitions Integrated midstream assets from gathering through NGLs in South…
  23. National Association of Publicly Traded Partnerships – Texstar Midstream Services – slide 23
    Southcross Fact Sheet NYSE Ticker SXE Total Units 33.7 million units(1)(2) Unit Price 17.27(2) Market Capitalization 582 million(2) Debt at March 31, 2014 171 million Quarterly Distribution 0.40 per unit (1.60 per unit on an…
  24. National Association of Publicly Traded Partnerships – Texstar Midstream Services – slide 24
    Appendix 24
  25. National Association of Publicly Traded Partnerships – Texstar Midstream Services – slide 25
    Alabama & Mississippi Alabama Alabama Primarily fixed-fee compression and transportation Interconnect services Compressor 100% non-commodity price sensitive margins Deliveries to end-users and interstate pipelines Acquired…
  26. National Association of Publicly Traded Partnerships – Texstar Midstream Services – slide 26
    South Texas Contract Structure Typical Southcross Gas Supply Contract 2013 Gross Margin Commodity Processing Equity NGL barrels Sensitive Uplift from processing recoveries in excess 24% Commodity of fixed producer Sensitive…
  27. National Association of Publicly Traded Partnerships – Texstar Midstream Services – slide 27
    Non-GAAP Measures We believe that Adjusted EBITDA and distributable cash flow are widely accepted financial indicators of our operational performance and our ability to incur and service debt, fund capital expenditures and make…
  28. National Association of Publicly Traded Partnerships – Texstar Midstream Services – slide 28
    Reconciliation to Adjusted EBITDA (Dollars in Thousands) Three Months Ended, 3/31/13 6/30/13 9/30/13 12/31/13 3/31/14 Reconciliation of net loss to Adjusted EBITDA: Net (loss) income (6,382) (6,192) (4,069) 674 (1,289) Add (deduct):…

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