Oiltanking Partners Inaugural Analyst Day Houston, TX June 24, 2014 www.oiltankingpartners.com
Todays Agenda Topic Presenter Introduction Ken Owen First, a Word From our Sponsor Marquard & Bahls Christian Flach Operations Quiet Excellence Kevin Campbell Minimizing Risks and Impacts Clayton Curtis Building on a Solid Foundation…
Marquard & Bahls AG June 2014 OILTANKING PARTNERS ANALYST DAY PRESENTATION CHRISTIAN FLACH CHAIRMAN OF EXECUTIVE BOARD AND CHIEF EXECUTIVE OFFICER OF MARQUARD & BAHLS AG
Content 1) Overview M&B-Group 2) Group Strategy 3) Oiltanking Group 4) Other Business Divisions Marquard & Bahls AG Presentation June 2014 Page 5
Company Facts Family-owned International Focus Controlled Growth 1.6 billion Equity in 40 Countries Headquartered in Hamburg with Corporate Responsibility More than 9,000 Employees 17 billion of Revenues since 1947…
Divisions Storage Logistics Aviation Fuelling Trading Renewable Energies Gas Supply Fuel Analysis Marquard & Bahls AG Presentation June 2014 Page 7
Strategic Approach Vision Mission To be the preferred partner in We provide our customers with tailor-made energy supply, trading and solutions ensuring high quality and safe logistics. operations. As a family-owned company we…
Key Indicators Revenues incl. energy tax (in million ) Equity (in million ) 1,591 18,565 18,236 16,977 1,343 1,377 1,190 13,778 1,038 10,305 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 EBITDA (in million )…
Storage & Logistics Tank Terminals Engineering, Procurement & Construction - EPC Dry Bulk Handling Upstream Services Marquard & Bahls AG Presentation June 2014 Page 11
Oiltanking Group Oiltanking is an independent logistic service provider to the energy and chemical industry specialised in tank storage and related logistics services. We provide our customers with tailor-made solutions ensuring…
Oiltanking Group at a Glance FY 2013 Oiltanking is one of the worlds largest providers of independent Revenues = 784 million storage for crude oil, petroleum products, liquid chemicals, gases EBITDA = 395 million and dry bulk…
Worldwide Tank Terminal Network Oil Terminal Chemical Terminal Dry Bulk Terminal Other Terminal National Terminal Network New Project Representative Office Corporate Centre Marquard & Bahls AG Presentation June 2014 Page…
Oiltanking Group Oiltanking Global Tank Capacity Development 2015 : 166.1 Million BBLS (current confirmed projects only) K BBLS 145,000 130,000 115,000 100,000 85,000 70,000 55,000 2006 2007 2008 2009 2010 2011…
Oiltanking Group Strategic focus for future growth Dry Bulk North America Optimizing volume existing facilities in the USA. Organic growth of existing facilities, leverage excellent locations in Houston Focus on China and India…
Oiltanking Group Principal secured projects driving future growth Name: OTB Crude Name: OTSA Lyondell Name: OTSA Zephir Cap.: 6.2 Million bbls Cap.: 82 k bbls Cap.: 113 k bbls Name: OTH LPG Dock. Cap.: n/a Name: UBT Capacity…
M&B Alignment with Oiltanking Partners Unitholders Largest M&B investment globally M&B CEO joined OILT Board Premier asset position in one of the world's strongest growth markets Relatively attractive regulatory environment…
We provide our customers with tailor-made solutions ensuring high quality and safe operations. As a family- owned company we care about our people, and strive for long-term profitability and controlled growth while maintaining our…
Operations Quiet Excellence Kevin Campbell Vice President, Operations www.oiltankingpartners.com 21
Deep and Experienced Organization VP Operations Terminal Manager Customer Pipeline Operations Terminal Maintenance HSSE Manager Service Compliance Purchasing Manager Engineer Manager Manager Manager Project Mgrs &…
Terminal Personnel Strength Houston & Appelt Beaumont 17 13 57 11 7 5 2 30 8 4 Texas City Joliet Port Neches 10 4 46 15 4 3 2 20 4 1 3 1 17 2 1 * OTNA Engineering group located at OT headquarters provides additional…
Profile of the Typical Oiltanker Always focused on Safety, Quality and Reliability Have been with the company for 10 years Demonstrated key personality traits Emotionally Stable: rationality, objectivity, and steadiness able to…
Overview of Our Assets Our Houston and Beaumont terminals are critical Gulf Coast hubs Houston Area Beaumont Area Houston Area Beaumont Area Total Pro forma storage capacity through 2016 23.2(1) 11.7(2) 34.9 (MMBbls) Additional…
Oiltanking Houston: Our Past Established in 1974: Celebrating 40 years Steady growth that focused on local refineries and petrochemical plants for a customer base One barge / week One crude vessel / month Sporadic LPG…
Oiltanking Houston: Our Present Strong waterfront assets and pipeline connections to serve mix of refiner, marketer, and producer customers Intense focus on customer service to differentiate ourselves from the competition…
40 Years of Progress www.oiltankingpartners.com 28
OTH and Appelt Throughput By Mode 1,200,000 Highlights 1,000,000 Pipeline flows have increased 800,000 and continue to grow BBLS / Day 600,000 More tank transfers and intensity of 400,000 movements Vessels traffic…
Houston Vessel Activity Our waterfront capabilities are ideally positioned to handle changing energy logistics 500,000 400,000 300,000 200,000 100,000 BBLS / DAY 0 100,000 200,000 300,000 400,000…
OTH Tank Transfer Activity We are meeting our customers needs for greater product flows and flexibility 160,000 140,000 120,000 100,000 BBLS / Day 80,000 60,000 40,000 20,000 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1…
Oiltanking Beaumont Acquired 50% ownership in 1998 and became 100% owner in 2000 Located on the Neches River in Jefferson County, TX Current capacity of 5.5 MMBbls Announced crude expansion up to 6.2 MMBbl Currently serves as a…
Beaumont Throughput By Mode 180,000 160,000 140,000 Highlights 120,000 Premier position 100,000 to expand BBLS / Day 80,000 Multi-modal throughput 60,000 growth potential 40,000 Consistent growth in vessel 20,000…
Beaumont Vessel Activity 140,000 120,000 Highlights 100,000 Experienced marine operator BBLS / Day 80,000 New finger pier 60,000 creates movement 40,000 optionality across all 20,000 products 0 Q1 Q2 Q3 Q4…
Unparalleled Customer Service Team 7 deep water vessel 4 deep water vessel docks at OTH (plus docks at OTB (plus barge positions) barge positions) Multiple pipeline Schedules activities for deliveries and receipts 30 different…
Streamline Order Process Customer Customer officially requests activity; typically electronic form Nomination followed by verbal communication Scheduled Oiltankings Customer Service group acknowledges the activity and enters it…
HSSE Organization VP Regulatory Affairs Consultants, Legal and Strategic Assistance Contractor Terminal HSSE Environmental Safety HSSE Training Safety Safety personnel at each site focusing on site-specific safety as…
Responding to Multiple Stakeholders Safety/Security Regulatory Environmental www.oiltankingpartners.com 39
Safety First Culture Total Recordable Incident Rates 4.0 Focus on Safety 3.5 Injuries per 200,000 man-hours Incident rates lower than 3.0 industry and sector rates 2.5 With a safety first culture 2.0 and ample training,…
Focus on Training and Preparedness Annual Rescue Training Spill Response Training National Preparedness for Response Exercise Program (PREP) - Oil Pollution Act 1990 Root Cause Analysis Training Safety Monitoring Focus on…
Emergency Response Training Channel Industries Mutual Aid (CIMA) is a non-profit organization combining the fire-fighting, rescue, hazardous material handling and emergency medical capabilities of the refining and petrochemical…
Contractor Management Over 300 contractors working in our facilities Set training standards for all personnel on-site Initiated process to monitor contractors performance Utilize leading indicators such as training and safety…
Securing Our Facilities Maritime Transportation Security Act of 2002 established security, credentialed access (TWIC card) and training requirements for marine facilities Regulatory oversight by Homeland Security, administered by the…
Environmental Focal Points Land Water Air All liquid storage built on Maintain our own spill All the terminals are Title V several feet of impermeable response team and complete Major Source Facilities clay and located inside annual…
Shape of Tanks Today Completed 390 kBbl tank (Appelt Terminal) Domed External Floating Roof www.oiltankingpartners.com 46
Domed Roofs Reduce Emissions Improvements in control technologies have led to emissions reductions 10.0 9.0 8.0 Emission Tons/year 7.0 Condensate 6.0 Crude 5.0 Naptha 4.0 3.0 2.0 1.0 0.0 Internal Floating…
Improving Vapor Recovery Converting the flares at OT Houston terminal to vapor combustors provides a 20x reduction in loading emissions Vapor combustors have a 99.9% efficiency of emission destruction compared to flares that have a…
Air Permitting Developments A bill has been approved to allow the Texas Commission on Environmental Quality (TCEQ) to expedite permitting in Texas to facilitate industry and infrastructure expansion TCEQ Air Permit Applications…
Oiltankings Permitting Strategy Oiltanking understands regulatory landscape and proactively plans its projects with permitting forethought On new projects/expansions, HSSE: Early coordination with Engineering to develop project…
Building on a Solid Foundation Javier del Olmo Vice President, Engineering www.oiltankingpartners.com 51
Engineering Expertise at Every Level VP Engineering Regional Terminal Project Construction Drafting and Engineering Engineers Engineers Management I&E Group Project Civil Marine Pipeline Management 36 experienced…
OTNA Engineering Guiding Principles Team approach collaborative in design, planning, and execution and meets objectives of each functional team Commercial HSSE Operations Broad Capabilities Major projects Procurement…
Engineering Project Flow 1 1 2 Commercial Commercial Concept Lays Framework for the Concept Project 2 Scope Engineering Scope with Operational Review & HSSE Input 3 3 4 Process Designs Flows Capital Estimates 4 Engineering…
Succeeding in the New Normal Challenge Oiltanking Approach Customer-driven focus and collaboration Creating Nimble and Adaptable Infrastructure Develop understanding of trends to anticipate needs and flows Develop a partnership…
Appelt Multiphase Expansion Phase I Completed in January 2014 Fully contracted and Appelt Phase III operational Phase II Fully contracted 3.5 MMBbls First tanks in service May 2014 Expected completion by 101MM October 2014 Appelt…
From Design to Domes All tanks equipped with: External floating roofs and geodesic domes Off-center cone down bottoms Overfill protection Automated gauges for level monitoring Heating, recirculating, and blending…
Additional Growth with Beaumont Crude Initiative Dock engineering, ROW assessment and acquisition, pipeline interconnection 6.2 MMBbls agreements being developed 340MM Unlike prior Beaumont market build-outs, influx of producer…
Logistics to Support Growth: Dock 8/9 Dock 8/9 project adds much needed deep-water capacity and upgrades to existing infrastructure Managed construction process and timelines to minimize customer disruptions Proactive approach…
Enhancing Connectivity Crossroads 24 Line Investment: 39 MM USD Seamless connectivity for metering and reliable tie-in to long-haul systems Right-of-way assessment and acquisition team philosophy and structure Tiered approach Last…
Delivering Long-Haul Barrels at Mainline Rates Crossroads 36 Line 59 MM USD investment First TransCanada Gulf Coast recipient in Houston market Ability to receive mainline flows from long-haul origination system with flying switches…
Houston Ship Channel Port Property Lease agreement with Port of Houston Authority Currently identifying and delineating all potential uses for 58 acres immediately adjacent to the west fence of the Oiltanking Houston facility…
Q&A Session www.oiltankingpartners.com 65
Capitalizing On Our Premier Position to Deliver Growth Ken Owen President & Chief Executive Officer www.oiltankingpartners.com 66
Business Overview We are a critical logistic link between the upstream and downstream segments of the crude oil, chemical and natural gas liquids industries Terminaling, storage and transportation services for crude oil, refined…
Capitalizing on Our Premier Position to Deliver Growth Houston and Beaumont terminals serve as distribution hubs for Gulf Coast crude oil Strategically flows Located Assets Highly connected Significant deep water docks capacity…
Doing it the Oiltanking Way Independent and customer focused Nimble, adaptable, flexible in our execution and our planning Reliability our customers know we will deliver and exceed expectations Safety First For our employees,…
Building on a Track Record of Growth What We Organic story Said At 200-300 million of organic capex over the next 3-5 years IPO Announced approximately 850 million of organic projects What Placed in service approximately 300…
Market View and Opportunities www.oiltankingpartners.com 71
Major Macro Themes Impacting OILT OILT assets stand to benefit from trends in North American petroleum flows Increasing Shale Surging domestic light production growth Production New crudes and changing flows Substantial need for…
North American Crude Production Growth We expect a significant amount of this growth will end up on the Gulf Coast Production Crude Type Changing Flow (MMBbl/d) CAGR = 10% Moving by pipeline and rail to US 3.0 Canadian 1.5…
Crude Supply and Demand Dynamics Inflows of light crude to U.S. Gulf Coast will lead to more PADD III exports 10,500 API 40 accounted for 90% of production US Crude Production (MBPD) 9,000 growth between 2011-2013 7,500 API…
Gulf Coast Growing Supply PADD III Crude Inventories 220 200 MMBbbls 180 160 140 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: EIA Last 5 years - Range Last 5 years - Average 2014 Gulf Coast Light Crude…
US Refined Products Finding Way to Foreign Markets US Finished Motor Gasoline Exporter 9,500 9,000 MMBPD 8,500 8,000 7,500 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Demand Net…
Changing Crude Logistics Pipeline capacity into the Gulf coast increased by 775 MBPD through 2013, with another 1,875 MBPD projected increase in 2014 www.oiltankingpartners.com 78
Gulf Coast Supply and Demand Without additional refining capacity, volumes will move to either foreign or domestic markets Houston & Texas City Market Beaumont Market Inbound Inbound Capacity Capacity 5 MMBbl 4 MMBbl…
Increasing North American NGL Supply We anticipate increasing supply will keep our docks busy NGLs 2,900 forecasted 2,700 2,500 MBPD 2,300 2,100 1,900 1,700 1,500 Source: EIA 2008 2009 2010 2011 2012 2013 2014 2015…
Premier LPG Exporting Facility LPG Customer has 2,000 cargoes scheduled through 2024 2013 Propane Export By Country 2013 Exports by Destination Region 120 100 % of Cargoes % of Destination Loaded Market 80 North America 36% 54%…
Ethane Export Market Potential Supplies Significant Growth Already significantly oversupplied; ethane from gas processing to increase by 1.5 MMBbl/d by 2020 Most shale plays have much higher ethane content than conventional…
Growth Strategy We are keenly focused on delivering long-term value for our unitholders and stakeholders Capitalizing on our premier footprint Waterfront Organic Pipelines Opportunities Storage capacity Rail Processing Other…
Delivering Growth on Significant Organic Opportunities Bo McCall Senior Vice President, Commercial & Business Development www.oiltankingpartners.com 85
Commercial and Business Development Strategy Develop a deep understanding of our customers needs and value drivers Building trust through long-term relationships Creating unique solutions and approaches that embed Oiltanking in…
Customer Relationships and Growth Evolving Customer Needs Houston Deliveries Top 5 Customers (Revenue Weighted) Around IPO Current 1% Houston Refinery/Plant 14% Pipe - Texas City Refinery Pipe - Long-Haul Vessel / Barge 85%…
Houston and Appelt www.oiltankingpartners.com 88
Substantial Growth Since IPO Houston New Customers Refiners, Producers and Traders Truck 600 Manifold 1,100,000 bbls capacity Rack Truck racks with six unloading bays and associated pipelines (re-commissioning & new) Enterprise…
Commercializing Appelt III Phase III Phase I & II Phase III Overview 3.5 MMBbls capacity First tanks estimated to be operational by Summer 2015 Commercialization Update Combination of new and existing customers Mix of…
Port of Houston Property Potential Entered in to lease for 58 acres in Q1 2014 Lease term ends October 2038 Secured an additional 30 acres for Enterprise three year term Multiple Options for Growth Up to 5 MMbbls of storage with…
LPG Export Agreement and Dock Expansion New 50-year contract beginning February 1, 2014 Monthly Loading Capacity (MMBbls) PreMarch March 2013 Q1 2015 EOY 2015 2013 Expansion 16.0 9.0 7.5 4.0 Revenue sharing mechanism,…
Enterprise LPG Expansion Upon completion of expansion, total export capacity will be approximately 192 MMBbls per year Existing (7.5 MMBbls/mo) Q1 2015 Dock 8/9 (1.5 MMBbls/mo) Expansion Q4 2015 Site (7.0 MMBbls/mo) Q4 2015…
Beaumont www.oiltankingpartners.com 95
Beaumont Crude Project Project to include up to 6.2 MMBbls of crude storage, and two new deep water docks Modeled after Houston connectivity, optionality, and reliability 7-10 year contracts Connectivity Plan: Inbound: TransCanada,…
Texas City Facility Oiltanking Texas City is strategically located in the middle of an industrial complex, including three refineries and three major chemical plants The facility, with a diversified customer and product mix, has…
Our Growth Pipeline Is Robust Initiatives Opportunities New Port of Houston lease property provides additional footprint Additional Storage Additional opportunities in Beaumont with infrastructure additions for crude expansion…
Loading...
