2011 Master Limited Partnership Investor Conference Ernie Danner Michael Aaronson President and Chief Executive Officer Chief Financial Officer
Exterran Partners (NASDAQ: EXLP) - Overview Exterran Partners and its parent, Exterran Holdings (Exterran or EXH), are the two largest contract compression providers in the United States1 Relatively stable cash flow business…
EXLP Investment Facts Exterran Partners (NASDAQ: EXLP) Unit price1 26.83 Market capitalization1,2 880 Million Average trading volume3 146,000 units Distribution 1.91 / unit (annualized rate)4 Yield1,5 7.1% Distribution cash flow…
Contract Operations Acquisition Announced in May 2011 On May 23rd, EXLP announced an agreement to acquire compression and processing assets from EXH for approximately 228 million Assets to be acquired include: An additional 8% (by…
Exterran U.S. Available Horsepower Total Available Horsepower of 3.6 Million as of March 31, 20111 1.7 MM 1.9 MM Together, EXH and EXLP comprise approximately half of the contract compression business in the United…
Natural Gas Processing Processing plant located in the northeastern U.S. that is part of the contract operations acquisition announced in May 2011 7
Contract Operations Overview Leading service provider in the United States Operate in the vast majority of the major natural gas producing regions in the United States including developing shale plays Positive trends in United…
COMPRESSIONSolutions Compressor packages Reciprocating Rotary screw Gas engine drive Electric motor drive Compressor units being set for operation in Pennsylvania Compressor Engine Cooler 9
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…
Growth Strategy Sources of EXLP Growth Opportunities Aging Drop-Down Shale Plays Reservoirs Acquisitions 13
Favorable Long-Term Market Trends 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 2004 2006…
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,…
Shale Field Development Exterran has a strong market position in the Eagle Ford Shale 16
Drop-Down Transaction History 5/29/2007 Announces acquisition of 270,000 HP from EXH for 233 million 7/27/2010 Announces acquisition 5/23/2011 of 254,000 HP from EXH Announces acquisition for 214 million of compression and…
Financial Overview Relatively stable and growing cash flow business Long-term distribution growth potential driven by: Organic horsepower growth Opportunity to acquire additional assets from EXH Successfully refinanced all EXLP…
EXLP Distribution Coverage & Capitalization Distribution Distribution Coverage Coverage Three Months Ended March31, Three Months Ended March 31,2011 2010 ( in millions) EBITDA, as further adjusted1 31.2 Add: Expensed acquisition…
Operating Horsepower and Distribution Increases Operating Horsepower and Distributions per Unit In Q1 2011 increased distribution by 0.005 for the third consecutive quarter. Objective of measured and steady distribution…
Attractive Valuation Fee-based business model with attractive current yield MLP Industry Current Yields1 1 Source: Barclays Capital MLP Trader Weekly, May 23, 2011. EXLP yield based on May 20, 2011 unit price. 21
Investment Merits Fee-based business model with unique asset class in MLP space Large compression fleet with assets across the major producing regions of the United States Well-positioned to benefit from emerging shale plays and…
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…
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