National Association of Publicly Traded Partnerships 2015 MLP Investor Conference May 2015 NAPTP MLP Conference Presentation AprilMay 30, 2014 2015
Southcross Fact Sheet Southcross Energy Partners, L.P. (Southcross) is a master limited partnership that provides natural gas gathering, processing, treating, compression and transportation services and NGL fractionation and…
Partnership Structure Financial sponsor ownership through various holding companies Southcross Holdings LP (Holdings) 100% Interest Southcross Energy 61% LP Interest Partners GP, LLC Operating Assets Southcross…
The Southcross Advantage Transportation Lines / Storage Natural Gas End Users NGL End Users Wellhead Gathering and Compression Gas Processing and Y-Grade Fractionation Facilities NGL & Residue Marketing Treating Plants…
Southcross Focus Deliver on Our Core Values Execute on Our Strategy Outstanding Operational Aggressively Growing Performance Our Business Growth in Distributions May 2015 NAPTP MLP Conference Presentation 5
Premier Strategic Footprint with Scale to Succeed in the Eagle Ford South Texas Assets Conroe Holdings SXE Pipeline (miles) 559 3,126 Gas Processing Capacity (MMcf/d) - 685 Fractionation Capacity (MBbls/d) 63 27 Houston San…
Eagle Ford Shale Core Eagle Ford remains one of the countrys most economic plays Breakeven Oil Prices (/Bbl) 75 73 73 70 69 68 67 68 12 Month WTI Strip (5/18/15) 66 67 67 Breakeven Oil Price (/Bbl) 65 63 63 63 60…
Eagle Ford Shale Eagle Ford has significant opportunity for growth in production Large Inventory of Wells Drilled But Not Yet Completed Among the Largest Undrilled Reserve Potential in the U.S. 12,000 Remaining Undrilled…
Texas Gulf Coast Gas Production Expected to Continue to Grow BTU Analytics' forecast anticipates that Gulf Coast gas production will continue to grow, adding an additional 2 Bcf/d by 2019 Texas Gulf Coast Region Gas Production per…
Processing Volume Ramp Volumes have been increasing significantly since combination transaction closed in August 2014 600 550 Quarterly Average Processing Volumes (BBtu/d) 500 450 400 350 300 250 200…
Full Spectrum of Services Creates Competitive and Economic Advantages Transportation Lines / Storage Natural Gas End Users NGL End Users Wellhead Gathering and Compression Gas Processing Plants Y-Grade Fractionation Facilities…
Southcross is Well-Positioned in the Eagle Ford Region Karnes / De Witt Region Frio / La Salle Region Webb / Dimmit McMullen Region Region Corpus Christi Region Woodsboro Bonnie View Gregory Holdings…
Blue Chip Customer and Contract Base Minimum volume commitments, acreage dedications and captive volumes should provide a solid and growing base of gas supply Commodity Exposure Southcross 23% Processing Capacity October…
Southcross Delivers Gas to Attractive End-use Markets System provides interconnects to every interstate pipeline in the region and diverse market outlets Local markets provide incremental downstream margins Multiple gas sale outlets…
Lower Gulf Coast Projects Fuel Growth Lyondell / Equistar Ethylene Capacity Expansion Lyondell to add 800 million lbs/year of ethylene capacity at Corpus Christi plant by 2016 20,000 Bbl/d of estimated increase in ethane demand by…
Southcross Connects to Multiple NGL Markets in Corpus Christi Area Advantaged Southcross footprint in expanding Gulf Coast Fractionator petrochemical infrastructure and NGL markets Markets Export Terminal End-use NGL markets provide…
Robstown Fractionator Overview Train B of the two-train 63,000 Bbl/d Robstown Fractionator began fractionating Y-grade in March 2015 Performance testing for Train B is completed Train A is expected to begin operating by July 2015…
Significant Growth Achievable From Existing Capacity Significant available processing capacity presents cash flow growth opportunity Adding 200 MMcf/d of gas represents approximately 685 36 million to 73 million of MMcf/d…
Two New Fractionation Facilities Available for Purity NGL Production Available fractionation capacity to accommodate a new processing plant 90 MBbls/d Fractionation Capacity Available for Future Processing Plant 63 MBbls/d…
Drop-Down Acquisition Summary Drop-Down Transaction Asset Summary On May 8, 2015, Southcross announced the acquisition of Valley Wells gathering system in La Salle County gathering, treating, compression, and transportation assets -…
Map Mapof ofDrop Down Assets Drop-Down Assets Compression Assets Valley Wells System NGL Pipelines Note: Compression icons are for illustrative purposes and not indicative of precise location. 21
Drop-Down Inventory Lancaster System 600 miles of sweet and sour gas gathering lines 100 MMcf/d sour gas treating facility; expandable to 300 MMcf/d 300,000 acres dedicated from 18 producers NGL Pipeline System 36mile NGL…
Rapidly Building Our Footprint Eagle Ford Gathering Reported 40% Volume Acquisition Growth Completed bolt-on acquisition of a Reported 40% growth in Q1 natural gas gathering system in processed gas volumes since McMullen County,…
Investment Investment Merits Merits High quality assets Premier midstream platform in the prolific Eagle Ford and South Texas area Fully integrated midstream platform with connectivity to quality end-use markets Well-positioned…
Reconciliation to Adjusted EBITDA (Dollars in Thousands) Three Months Ended Reconciliation of net (loss) income to Adjusted EBITDA 12/31/2013 3/31/2014 6/30/2014 9/30/2014 12/31/2014 3/31/2015 Net (loss) income 674 (1,289) (2,961)…