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2014 NAPTP MLP Investor Conference – Cypress Energy Partners, L.P.

Cypress Energy Partners, L.P. · May 21, 2014 · 27 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. 2014 NAPTP MLP Investor Conference – Cypress Energy Partners, L.P. – slide 1
    Peter C. Boylan III Chairman & CEO Les Austin Vice President & CFO 2014 NAPTP MLP Investor Conference May 21st, 2014 Confidential
  2. 2014 NAPTP MLP Investor Conference – Cypress Energy Partners, L.P. – slide 2
    LEGAL INFORMATION Some of the statements in this presentation concerning future performance are forward-looking within the meaning of U.S. securities laws. Forward-looking statements discuss the Issuers future expectations, contain…
  3. 2014 NAPTP MLP Investor Conference – Cypress Energy Partners, L.P. – slide 3
    IPO SUMMARY JANUARY 21ST, 2014 Issuer: Cypress Energy Partners, L.P. (NYSE: CELP) Common units sold: 4,312,500 units ( 4.5X oversubscribed) Offering size: 86.25 million IPO Price per unit: 20.00 (Yield of 7.75%); Current Yield 6.9% 22.31…
  4. 2014 NAPTP MLP Investor Conference – Cypress Energy Partners, L.P. – slide 4
    CYPRESS ENERGY PARTNERS OVERVIEW Serves Energy Companies Water & Environmental Services (W&ES) Pipeline Inspection & Integrity Services (PI&IS) Founded in 2012 Tulsa Inspection Resources, Inc. (TIR) 50.1% interest in TIR entities…
  5. 2014 NAPTP MLP Investor Conference – Cypress Energy Partners, L.P. – slide 5
    INVESTMENT HIGHLIGHTS Independent Cypress/TIR team High quality new inspection & integrity has significant SWD facilities in business serving industry experience active U.S. oil & gas large andpipeline owners connections…
  6. 2014 NAPTP MLP Investor Conference – Cypress Energy Partners, L.P. – slide 6
    WATER & ENVIRONMENTAL SERVICES Production of Water Fracturing Fracturing Well Completion Oil/Gas And Acquisition Fluid Mixing Fluid Injection Saltwater Flowback: up to 47% of injected water within 10 days(1) Flowback Water…
  7. 2014 NAPTP MLP Investor Conference – Cypress Energy Partners, L.P. – slide 7
    WASTEWATER (OR SALTWATER) Water is a byproduct of oil & gas operations, with virtually all wells producing wastewater for lifespan of well Brinish fluid (saltwater) returns to the surface during well completion (flowback water) and…
  8. 2014 NAPTP MLP Investor Conference – Cypress Energy Partners, L.P. – slide 8
    SWD FACILITY OVERVIEW(1) Subsurface injection at an SWD facility is industry standard method of saltwater disposal SWD facility: unload, filtration, separation, treatment, tanks (water and oil), pumps, disposal well(s) and…
  9. 2014 NAPTP MLP Investor Conference – Cypress Energy Partners, L.P. – slide 9
    TRANSPORTATION, CUSTOMERS, REVENUE 2 methods of saltwater transport Trucking is primary method of transporting saltwater today(1) Pipeline is alternative method for transporting saltwater from oil & gas well to SWD facility(2)…
  10. 2014 NAPTP MLP Investor Conference – Cypress Energy Partners, L.P. – slide 10
    SWD DEMAND DRIVERS AND TRENDS 25 23 20 Lower 48 Oil & Gas Production (MMBoe/d)(1) 1. Increasing levels of U.S. onshore oil & gas production 18 Increasing production equates to increasing saltwater volumes 15 13 EIA forecasts 15+%…
  11. 2014 NAPTP MLP Investor Conference – Cypress Energy Partners, L.P. – slide 11
    PIPELINE INSPECTION & INTEGRITY SERVICES Regulations require pipeline operators to develop an integrity management program and conduct inspection, with operators outsourcing elements In-line Inspection Smart pigs Pig tracking…
  12. 2014 NAPTP MLP Investor Conference – Cypress Energy Partners, L.P. – slide 12
    INFRASTRUCTURE BY USER/SECTOR Natural Gas Natural Gas Distribution Transmission Pipelines Local Lines Gas Gathering Distribution Company Residential Gas Processing & Compression Compression Treating Plants Natural Electric…
  13. 2014 NAPTP MLP Investor Conference – Cypress Energy Partners, L.P. – slide 13
    CUSTOMERS AND REVENUE Midstream pipeline companies are historically the largest consumers of independent inspection & integrity services Oil & gas producers with gathering systems are customers that are subject to Customers…
  14. 2014 NAPTP MLP Investor Conference – Cypress Energy Partners, L.P. – slide 14
    SERVICES FOR LIFESPAN OF ASSETS % Of U.S. Pipe Mileage Installed North American oil & gas wells By Decade(1) can produce for decades, 25% including U.S. onshore wells Wells can produce higher % 20% water as they age 15%…
  15. 2014 NAPTP MLP Investor Conference – Cypress Energy Partners, L.P. – slide 15
    INSPECTION DEMAND DRIVERS AND TRENDS 1. Substantial existing infrastructure is aging 2011-2035 Infrastructure Investment(2) (U.S. Dollars in Billions) 2.3+ million miles of transmission and Offshore, Western, distribution pipelines…
  16. 2014 NAPTP MLP Investor Conference – Cypress Energy Partners, L.P. – slide 16
    COMPETITIVE LANDSCAPE Water & Environmental Services Pipeline Inspection & Integrity Services (W&ES) (PI&IS) Certain producers with private SWD In-house personnel facilities serving own production Engineering & construction (E&C)…
  17. 2014 NAPTP MLP Investor Conference – Cypress Energy Partners, L.P. – slide 17
    CYPRESS OWNED SWD FACILITIES 7 Owned ND Facilities SWD facility SWD facility with piped water 2 Owned TX Facilities Mountrail County, ND Facility (2 Wells) Opened June 2012 10 acres(1) 4,000+ feet deep SWD injection zone 1st…
  18. 2014 NAPTP MLP Investor Conference – Cypress Energy Partners, L.P. – slide 18
    LEADER IN INDEPENDENT INSPECTION Strong long-term relationships with Average TIR Inspector Headcount Per Quarter customers and inspectors Number of 2011 2012 2013 2014 Inspectors Proprietary database of 1,800 1,506 average for 1Q14…
  19. 2014 NAPTP MLP Investor Conference – Cypress Energy Partners, L.P. – slide 19
    HEIGHTENED REGULATORY LANDSCAPE Evolving environmental and safety regulations for both business segments High profile spills and incidents with pipelines in California, NYC, and Michigan have lead to heightened government and media…
  20. 2014 NAPTP MLP Investor Conference – Cypress Energy Partners, L.P. – slide 20
    EXPERIENCED MANAGEMENT TEAM Peter C. Boylan, III Co-Founder of Cypress Energy Partners Chairman, CEO and Director of MRC Global* and BOK Financial* President Former Director and Officer of Liberty Media* companies CFO of RAM Energy…
  21. 2014 NAPTP MLP Investor Conference – Cypress Energy Partners, L.P. – slide 21
    VERY EXPERIENCED BOARD OF DIRECTORS Charles C. Co-Founder of Cypress Energy Partners Stephenson, Jr. Director & Sponsor Founded Vintage Petroleum* (sold to Oxy in 2006) Co-Founder and Chairman of Premier Natural Resources Retired…
  22. 2014 NAPTP MLP Investor Conference – Cypress Energy Partners, L.P. – slide 22
    CELP GROWTH OPPORTUNITIES Organic Growth And Existing Opportunities Increased utilization of existing assets (W&ES) and personnel (PI&IS) Sponsor owns additional 49% interests in TIR entities (U.S.; Canada; NDE) Partnering…
  23. 2014 NAPTP MLP Investor Conference – Cypress Energy Partners, L.P. – slide 23
    CONSOLIDATED CELP FINANCIAL PERFORMANCE W&ES Summary PI&IS Summary(1) 35 Disposal Volume 22.4 25 2,000 Avg. of Inspectors 379.9 400 Average Number of Inspectors Revenue (Dollars in Millions) Disposed Saltwater (MMBbl)…
  24. 2014 NAPTP MLP Investor Conference – Cypress Energy Partners, L.P. – slide 24
    CONSOLIDATED CELP FINANCIAL PERFORMANCE W&ES Summary PI&IS Summary(1) 10 10 Avg. of Inspectors Disposal Volume 2,000 92.3 100 Revenue Revenue (Dollars in Millions) Average Number of Inspectors Disposed Saltwater…
  25. 2014 NAPTP MLP Investor Conference – Cypress Energy Partners, L.P. – slide 25
    FINANCIAL FLEXIBILITY CREDIT FACILITY Credit Facility of 120 MM CELP Capitalization (U.S. Dollars In Thousands) Arrangers: Deutsche Bank, BMO March 31, 2014 65 MM Borrowing Base Facility & Cash and Cash Equivalents 24,032 55 MM…
  26. 2014 NAPTP MLP Investor Conference – Cypress Energy Partners, L.P. – slide 26
    EBITDA RECONCILIATION Adjusted EBITDA as presented below may not be comparable to similarly titled measures of other companies. The following table presents a reconciliation of Adjusted EBITDA to net income attributable to CELP, on a…
  27. 2014 NAPTP MLP Investor Conference – Cypress Energy Partners, L.P. – slide 27
    THANK YOU Independent Cypress/TIR team High quality new inspection & integrity has significant SWD facilities in business serving industry experience active U.S. oil & gas large andpipeline owners connections producing…

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