2014 MASTER LIMITED PARTNERSHIP INVESTOR CONFERENCE MAY 22, 2014 David Miller Senior Vice President and Chief Financial Officer Exterran Exterran Holdings, Inc. Holdings, All rights Inc. All rights reserved. reserved.…
PARTNERSHIP OVERVIEW Exterran Partners (NASDAQ: EXLP) Unit Price1 29.23 Market Capitalization1,2 1.6 billion Average Trading Volume3 133,000 units Distribution (annualized rate)4 2.15 / unit Yield1,5 7.36% Distribution cash flow…
FUNDAMENTALS Exterran Holdings, Inc. All rights reserved. www.exterran.com 3
CONTRACT OPERATIONS Focus of Exterran Contract Operations Processing Wellhead Production Main Line Transmission Exterran Holdings, Inc. All rights reserved. www.exterran.com 4
LEADER IN U.S. NATURAL GAS CONTRACT OPERATIONS SERVICES EXLP is the largest contract U.S. Outsourced Compression Competitors1 compression provider in the U.S. 3,500 3,345 with 2.7 million1 operating horsepower. 3,000 631 EXH…
EXTERRAN ORGANIZATIONAL STRUCTURE Market Equity1: 2.8 Billion North America Estimated current value of 35% LP1 Contract Operations EXHs ownership in EXLP of 3.9 MM HP2 886 million1,3 2% GP1 U.S. Contract Operations (74%…
FAVORABLE INDUSTRY MARKET TRENDS Exterran Holdings, Inc. All rights reserved. www.exterran.com 7
U.S. NATURAL GAS MARKET U.S. Natural Gas Production by Source U.S. Production of Natural Gas Liquids by Type (millions of barrels per day) (trillion cubic feet) Growth in U.S. production is expected to drive compression…
OIL & GAS DRILLING AND PRODUCTION SPENDING OUTLOOK U.S. Capital Spending Projected to Increase 200 4% CAGR from 2013 through 2019 160 120 ( billions) 80 40 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016…
U.S. SHALE PLAYS Strong opportunities for organic contract operations growth in North America Source: Energy Information Administration Exterran Holdings, Inc. All rights reserved. www.exterran.com 10
KEY INITIATIVES AND GROWTH STRATEGY Exterran Holdings, Inc. All rights reserved. www.exterran.com 11
KEY INITIATIVES Performance Initiatives Multi-year plan to deliver better returns to investors Achieved improved profitability over the last two years Ongoing field initiatives to improve the operating efficiency of our business…
GROWTH STRATEGY EXLP organic growth of 31 thousand operating horsepower over the Organic horsepower growth past year1, equating to a 1% growth rate Adding new large- and small-horsepower compression units to fleet Successful…
EXECUTION OF DROP-DOWN GROWTH STRATEGY Total Combined U.S. Available Horsepower of 3.9 Million as of March 31, 20141 EXH 26% 1.0 MM 2.9 MM EXLP 74% We believe that substantially all of the U.S. horsepower owned by…
MIDCON COMPRESSION ASSET ACQUISITION In April 2014, Exterran Partners acquired compression assets from MidCon Compression (MidCon) for approximately 363 million1 Assets include 337 compression units, with a total horsepower of…
FINANCIAL REVIEW Exterran Holdings, Inc. All rights reserved. www.exterran.com 16
FAVORABLE PROFITABILITY TREND Gross Margin per Horsepower1,2 12.00 Contribution from 11.13 11.00 sale of two processing plants3 0.97 10.00 9.92 9.84 9.97 9.75 9.67 9.00 9.00 8.78 8.43 8.00 7.93 7.00 6.00 5.00 4Q…
FEE-BASED BUSINESS WITH TRACK RECORD OF GROWTH Period Ending Operating Horsepower Rolling LTM EBITDA, as further adjusted1,2 3,000 250 242 239 2,714 229 219 2,500 444 2,264 200 193 181 1,991 169 2,000 162 149 1,728 150 140…
DEBT STRUCTURE Pro Forma Debt Structure as of March 31, 20141 ( millions) Funded Type Amount Size Maturity Rating Secured Revolver 133 650 2018 n/a 3 Secured Term Loan 150 150 2018 n/a EXLP 6% Senior Notes2 345 345 2021 B/B1…
ATTRACTIVE CURRENT YIELD MLP Industry Yields May 20141 10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Natural Gas & Natural Gas EXLP Exploration & NGL Pipelines Gathering & Production Group Group Processing…
INVESTMENT MERITS Leveraged to favorable industry trends with leading fee-based market position Solid capital position with proven growth strategy and performance improvement capability Executing on additional process-driven…
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…
VALUE OF EXH OWNERSHIP POSITION IN EXLP ( millions) Q1 2014 EXLP LP Units Owned by EXH 19.6 EXLP Unit Price1 29.23 LP Value 573.5 Annualized EXLP GP Cash Distributions 12.5 Peer Multiple2 25.0x GP Value 312.5 Total EXH Value…
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