Skip to main contentCITIGROUP ONE ON ONE MASTER LIMITED PARTNERSHIP MIDSTRE INFRASTRUCTURE CONFERENCE – Exterran Partners Lp Investor Presentation | Shale Experts
Citigroup One-on-One MLP / Midstream Infrastructure Conference August 24, 2011 Michael Aaronson David Oatman Chief Financial Officer Investor Relations
Investment Highlights EXLP organic growth of 79 thousand horsepower in 2010 Organic horsepower growth equating to a 7.5% growth rate EXH and EXLP building 95 thousand horsepower for fleet to be deployed in 2011 and into 2012 Growth…
Partnership Overview Exterran Partners and its parent, Exterran Holdings, are the two largest contract compression providers in the United States1 with combined horsepower of 3.6 million Exterran Partners (NASDAQ: EXLP) Unit…
EXLP Highlights Last 12 Months Completed two acquisitions for aggregate consideration of 442 million Increased operating horsepower by 592,000 driven by acquisitions and organic growth1 Refinanced entire EXLP debt structure with new…
New Build Fleet Expansion Program Exterran has current plans to build 95,000 new horsepower for the North America fleet at an estimated cost of 67 million Expect to begin deploying these units starting in the third quarter and…
Compression Growth Has Outpaced Production Total U.S. Production1 Total U.S. Compression Fleet2 25 22.9 20 Million HP of compression 20 Trillion cubic feet 15 15 10 10.0 10 5 5 0 0 1994 1996 1998 2000 2002…
Emerging U.S. Shale Plays Drive Growth Marcellus and Eagle Ford Shale Plays: Robust activity levels enhance demand for compression services and production and processing equipment. With its extensive geographic footprint,…
Drop-Down Growth Strategy Total U.S. Available Horsepower of 3.6 Million as of June 30, 2011 EXH 47% 1.7 MM 1.9 MM EXLP 53% Together, EXH and EXLP comprise approximately half of the contract compression business in the…
Acquisition Track Record 5/29/2007 50 Announces acquisition of 1,000 270,000 HP from EXH for 233 million 45 900 7/27/2010 5/23/2011 40 Announces acquisition Announces acquisition 800 of 254,000 HP from EXH of compression…
June 2011 Contract Operations Acquisition EXLP completed an acquisition of compression and processing assets from EXH for approximately 228 million1 on June 10, 2011 Assets acquired included: An additional 8% (by then available…
Committed to Distribution Growth Distributions per Unit Announced plans for steady distribution increases and have increased distributions by 4% since June 2010 0.50 0.45 0.40 0.35 0.30 0.25 0.20 1Q07 2Q07 3Q07 4Q07…
Cash Distribution Coverage History1 Coverage reduced by timing of acquisition and related equity financing 1.40x Distribution Cash Flow Coverage 1.20x 1.00x 0.80x 0.60x 0.40x 0.20x 0.00x 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10…
Attractive Current Yield Fee-based business model with attractive current yield MLP Industry Current Yields August 20101 August 20112 9.0% 8.8% 9.0% 8.8% 7.9% 8.0% 8.0% 8.0% 8.0% 7.2% 6.5% 6.8% 7.0% 7.0% 6.0% 6.0% 5.0% 5.0% 4.0%…
Attractive Current Yield MLP Industry Current Yields1 10% 9% 8% 7% 6% 5% 4% Chart Title 3% 2% 1% 0% Yield Natural Gas & NGL Pipelines Group Natural Gas Gathering & Processing Group Exploration & Production Group…
Business Review
Summary Exterran Organizational Structure Market Equity1: 0.66 Billion Cons. Debt2: 1.70 Billion NACO International Ent. Value: 2.36 Billion (47% of Total Contract Fabrication AMS U.S. Business)3 Operations 33% LP 2% GP…
Exterran (NYSE: EXH) Company Overview Leading global provider Over 10,000 of full-service natural employees with gas compression and operations in surface production approximately 30 solutions countries EXH owns an equity…
Exterran Geographic & Product Diversification Segment Gross Margin Mix1,2 Geographic Gross Margin Mix1,2 International Latin America Contract 29% Operations 35% North North America America 46% Contract Operations Aftermarket…
COMPRESSIONSolutions Compressor packages Reciprocating Rotary screw Gas engine drive Electric motor drive Compressor units being set for operation in Pennsylvania Compressor Engine Cooler 22
Contract Operations Compression is a must-run service required at each phase of the natural gas production and transportation cycle Focus of Exterran Contract Operations Processing Wellhead Production Main Line…
Reasons for Customer Outsourcing to Exterran Speed to delivery Enhanced Superior run-time Eliminate hard Outsource asset production or asset management transportation Lower operating volumes investments costs Eliminate…
Contracts and Customers Typical contract structure Fixed monthly fee Limited direct exposure to natural gas prices EXLP / EXH customer relationships Strong, long-standing customer relationships Commitment to high-quality customer…
Natural Gas Processing Processing plant located in the northeastern U.S. that was part of the June 2011 contract operations acquisition 26
Growth Strategy Sources of EXLP Growth Opportunities Aging Drop-Down Shale Plays Reservoirs Acquisitions 27
Investment Highlights Organic horsepower growth Solid business trends Drop-down growth strategy Committed to distribution growth Attractive current yield / return 28
Non-GAAP Financial Measures EXLP With respect to Exterran Partners, EBITDA, as further adjusted, a non-GAAP measure, is defined as net income (loss) plus income taxes, interest expense (excluding debt extinguishment costs and gain or…
Non-GAAP Financial Measures - EXH EBITDA, as adjusted, a non-GAAP measure, is defined as income (loss) from continuing operations plus income taxes, interest expense (including debt extinguishment costs and gain or loss on termination…
Non-GAAP Financial Measures EXH (cont.)1 Three Months Ended March 31, June 30, Sept. 30, Dec. 31, March 31, June 30, Sept. 30, Dec. 31, March 31, June 30, ( millions) 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 Income (loss)…
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