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DECEMBER 2014 WELLS MLP AND ENERGY CONFERENCE – Exterran Partners Lp

Exterran Partners Lp · Dec 10, 2014 · 30 slides

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Slides

  1. DECEMBER 2014 WELLS MLP AND ENERGY CONFERENCE – Exterran Partners Lp – slide 1
    WELLS MLP AND ENERGY CONFERENCE DECEMBER 10, 2014 Brad Childers David Miller Chairman, President and Chief Executive Officer Senior Vice President and Chief Financial Officer Exterran Exterran Partners, L.P. Holdings, All…
  2. DECEMBER 2014 WELLS MLP AND ENERGY CONFERENCE – Exterran Partners Lp – slide 2
    PARTNERSHIP OVERVIEW Exterran Partners (NASDAQ: EXLP) Unit Price1 22.07 Market Capitalization1,2 1.23 billion Average Trading Volume3 146,000 units Distribution (annualized rate)4 2.21 / unit Yield1,5 10.0% Distributable cash…
  3. DECEMBER 2014 WELLS MLP AND ENERGY CONFERENCE – Exterran Partners Lp – slide 3
    EXTERRAN HOLDINGS SEPARATION PLAN Exterran Partners, L.P. All rights reserved. www.exterran.com 3
  4. DECEMBER 2014 WELLS MLP AND ENERGY CONFERENCE – Exterran Partners Lp – slide 4
    UNLOCKING VALUE: CREATING TWO INDEPENDENT COMPANIES RemainCo SpinCo Core Pure-play U.S. compression services International services & global fabrication Focus 2% GP and 35% LP interests & incentive Global fabrication 1 1…
  5. DECEMBER 2014 WELLS MLP AND ENERGY CONFERENCE – Exterran Partners Lp – slide 5
    STRATEGIC SEPARATION EXPECTED TO DELIVER SIGNIFICANT VALUE Opportunity to create immediate and long-term value for shareholders Creates two industry-leading energy infrastructure companies Enhances overall long-term growth…
  6. DECEMBER 2014 WELLS MLP AND ENERGY CONFERENCE – Exterran Partners Lp – slide 6
    SEPARATION SNAPSHOT RemainCo SpinCo Public Public Shareholders Shareholders SpinCo RemainCo 0.7 billion Debt2 U.S. Contract International International Public LP / GP U.S. Operations Contract Aftermarket Fabrication…
  7. DECEMBER 2014 WELLS MLP AND ENERGY CONFERENCE – Exterran Partners Lp – slide 7
    REMAINCO HIGHLIGHTS Growth Positive Industry Fundamentals Organic Growth at EXLP Third-Party and Drop-Down Acquisition Opportunities at EXLP Continued Profitability Stability Improvement Structure Fee-Based Contracts…
  8. DECEMBER 2014 WELLS MLP AND ENERGY CONFERENCE – Exterran Partners Lp – slide 8
    SPINCO HIGHLIGHTS Growth Global Energy Infrastructure Build Out Redevelopment in U.S. Energy Markets Target New Customers for Fabricated Compressors Stability Structure Long-Term Fee-Based Low Debt Levels International Contract…
  9. DECEMBER 2014 WELLS MLP AND ENERGY CONFERENCE – Exterran Partners Lp – slide 9
    PROCESS OUTLINE Initial board authorization has been received No shareholder approval required Next steps Determine detailed allocation of assets & liabilities Complete necessary regulatory filings, including SpinCo Form 10 Obtain…
  10. DECEMBER 2014 WELLS MLP AND ENERGY CONFERENCE – Exterran Partners Lp – slide 10
    FAVORABLE INDUSTRY MARKET FUNDAMENTALS Exterran Holdings, Inc. All rights reserved. www.exterran.com 10
  11. DECEMBER 2014 WELLS MLP AND ENERGY CONFERENCE – Exterran Partners Lp – slide 11
    CONTRACT OPERATIONS Focus of Exterran Contract Operations Processing Wellhead Production Main Line Transmission Gas compression is an essential service utilized all along the production cycle to transport gas to the end…
  12. DECEMBER 2014 WELLS MLP AND ENERGY CONFERENCE – Exterran Partners Lp – slide 12
    OIL & GAS SPENDING AND GAS PRODUCTION OUTLOOK U.S. Drilling & Completion Spending 1 U.S. Natural Gas Production (bcfd) 80 200 Expected to increase 4.3% in 2014 2% CAGR from 70 and 2.1% in 2015 2014 through 2020 160 60 50 120…
  13. DECEMBER 2014 WELLS MLP AND ENERGY CONFERENCE – Exterran Partners Lp – slide 13
    LEADER IN U.S. CONTRACT OPERATIONS SERVICES 3,600 U.S. Outsourced Compression Operating Competitors1 EXLP is the largest contract 641 horsepower at Exterran Parent compression provider in the U.S. 3,000 with 2.9 million1…
  14. DECEMBER 2014 WELLS MLP AND ENERGY CONFERENCE – Exterran Partners Lp – slide 14
    U.S. NATURAL GAS MARKET U.S. Natural Gas Production by Source U.S. Natural Gas Consumption by Sector (trillion cubic feet) (trillion cubic feet) Optimistic outlook driven by growth in U.S. shale gas and oil production…
  15. DECEMBER 2014 WELLS MLP AND ENERGY CONFERENCE – Exterran Partners Lp – slide 15
    GEOGRAPHIC DIVERSITY Operating horsepower growth of 700,000 YTD 2014 1 Source: Energy Information Administration 1As of 9/30/14. Includes acquisitions of compression assets from MidCon Compression LLC closed April 10, 2014 and…
  16. DECEMBER 2014 WELLS MLP AND ENERGY CONFERENCE – Exterran Partners Lp – slide 16
    STABLE REVENUES & CASH FLOWS Exterran Holdings U.S. Contract Operations 800 Revenue and Oil & Gas Prices1,2 150% 700 100% 600 Revenue ( millions) Indexed to 12/31/08 500 50% 400 300 0% 200 -50% 100 0 -100%…
  17. DECEMBER 2014 WELLS MLP AND ENERGY CONFERENCE – Exterran Partners Lp – slide 17
    GROWTH STRATEGY Organic growth of 170,000 operating horsepower over the Organic horsepower growth past year1 Adding new large and small horsepower compression units to fleet Exterran Holdings strategy to drop-down additional…
  18. DECEMBER 2014 WELLS MLP AND ENERGY CONFERENCE – Exterran Partners Lp – slide 18
    FINANCIAL REVIEW Exterran Holdings, Inc. All rights reserved. www.exterran.com 18
  19. DECEMBER 2014 WELLS MLP AND ENERGY CONFERENCE – Exterran Partners Lp – slide 19
    THIRD-QUARTER 2014 HIGHLIGHTS Organic horsepower growth of 47,000 Achieved record level of quarterly distributable cash flow Distributable cash flow coverage of 1.24x, excluding cost cap reimbursements1 Closed acquisition with…
  20. DECEMBER 2014 WELLS MLP AND ENERGY CONFERENCE – Exterran Partners Lp – slide 20
    FAVORABLE PROFITABILITY TREND Gross Margin per Horsepower per Month1 12.00 11.13 10.57 10.58 9.75 9.92 9.97 9.67 9.84 10.00 9.00 8.78 8.43 8.10 7.93 7.61 7.40 8.00 6.00 4.00 2.00 0.00 1Q-11 2Q-11 3Q-11 4Q-11 1Q-12…
  21. DECEMBER 2014 WELLS MLP AND ENERGY CONFERENCE – Exterran Partners Lp – slide 21
    FEE-BASED BUSINESS WITH TRACK RECORD OF GROWTH Period Ending Operating Horsepower EBITDA, as further adjusted1,2 3,200 2,947 275 259 2,800 250 239 2,400 2,264 225 1,991 200 181 2,000 1,728 175 ( millions)…
  22. DECEMBER 2014 WELLS MLP AND ENERGY CONFERENCE – Exterran Partners Lp – slide 22
    CASH DISTRIBUTIONS Distributable Cash Flow Coverage1 1.80x 1.60x 1.60x 1.47x 1.28x 1.34x 1.31x 1.31x 1.40x 1.26x 1.20x 1.20x 1.17x 1.20x 1.09x 1.00x 0.80x 1.46x 1.31x 1.24x 0.60x 1.15x 1.22x 0.98x 1.02x 0.85x 0.92x…
  23. DECEMBER 2014 WELLS MLP AND ENERGY CONFERENCE – Exterran Partners Lp – slide 23
    DEBT STRUCTURE Debt Structure as of September 30, 2014 ( millions) Funded S&P/Moodys Type Amount Size Maturity Rating Secured Revolver 380 650 2018 NR 3 3 Secured Term Loan 150 150 2018 3 NR 1 EXLP 6% Senior Notes 345 345 2021…
  24. DECEMBER 2014 WELLS MLP AND ENERGY CONFERENCE – Exterran Partners Lp – slide 24
    ATTRACTIVE CURRENT YIELD MLP Industry Yields December 20141 20.0% 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Natural Gas & Natural Gas EXLP Exploration & NGL Pipelines Gathering & Production Group Group…
  25. DECEMBER 2014 WELLS MLP AND ENERGY CONFERENCE – Exterran Partners Lp – slide 25
    INVESTMENT MERITS Well-positioned to benefit from favorable industry fundamentals with leading market position Services business model tied to production Solid capital position with proven growth strategy Fee-based revenues…
  26. DECEMBER 2014 WELLS MLP AND ENERGY CONFERENCE – Exterran Partners Lp – slide 26
    NON-GAAP FINANCIAL MEASURES EXLP EBITDA, as further adjusted, a non-GAAP measure, is defined as net income (loss) (a) excluding income taxes, interest expense (including debt extinguishment costs and gain or loss on termination of…
  27. DECEMBER 2014 WELLS MLP AND ENERGY CONFERENCE – Exterran Partners Lp – slide 27
    NON-GAAP FINANCIAL MEASURES EXLP (CONT.) ( in thousands) 1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q 10 Net income (loss) 2,343 2,264 7,482 7,312 6,547 6,079 9,411 7,810 6,721 2,738 2,008…
  28. DECEMBER 2014 WELLS MLP AND ENERGY CONFERENCE – Exterran Partners Lp – slide 28
    NON-GAAP FINANCIAL MEASURES EXLP (CONT.) (in thousands) 1Q 10 2Q 10 3Q 10 4Q 10 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 Gross margin1 26,859 24,664 28,902 32,969 31,677 32,017 41,082 40,573 44,584 51,725 50,672 57,352 Average…
  29. DECEMBER 2014 WELLS MLP AND ENERGY CONFERENCE – Exterran Partners Lp – slide 29
    ESTIMATED VALUE OF EXH OWNERSHIP POSITION IN EXLP ( millions, except EXLP unit price) Q3 2014 EXLP LP Units Owned by EXH1 19.6 EXLP Unit Price2 22.07 LP Value 433.0 Annualized EXLP GP Cash Distributions3 15.8 Peer Multiple4…
  30. DECEMBER 2014 WELLS MLP AND ENERGY CONFERENCE – Exterran Partners Lp – slide 30

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