1 J.P. Morgan Energy Distribution Day June 9, 2015 Andrew Lane Chairman, President & CEO TM Jim Braun Executive Vice President & CFO
3 Company Snapshot By the Numbers1 Industry Sectors Product Categories Upstream Line Pipe & OCTG TTM Sales 5.920B TTM Adjusted EBITDA 427M Employees 4,700 Projects 28% Locations 400+ Midstream Valves Countries…
4 Revenue by Industry Sector Downstream 25% Gas Utility Other/ 10% Industrial 12% Gas Chemical Chemicals & Utility Transmission 9% Refining 9% 19% Refining13% Midstream 9% Transmission Drilling & 29% 17%…
5 Revenue by Geography and Product Line By Geography By Product Line Gulf Coast 27% Valves 32% Western 25% Fittings & Flanges 21% Eastern 23% Line Pipe 20% General Oilfield Asia / Europe 15% 18% Products Canada 10% OCTG…
7 MRC Global is a leading provider of Integrated Supply Services to the Energy Industry Integrated Supply Statistics Supplying Integrated Supply services since 1988 Accounts for sales in excess of 830 million and growing…
8 Strategic Objectives Execute Global Preferred Supplier Contracts Organic Growth Focus on multi-year Top 25 MRO agreements & Targeted Growth Accounts: adding scope to current agreements develop the next 75 customers Recently…
9 Strategic Shift in Product Mix to Higher Margin Products Total Revenue less Carbon Energy Tubulars (OCTG & Line Pipe) ( millions) 4,238 3,697 3,705 2,989 2,384 2010 2011 2012 2013 2014 15% CAGR for Higher…
10 Product Mix Shift from 2008 to 2014 Stable, higher margin valves are a larger percentage of revenue. More volatile carbon pipe is a smaller percentage of revenue. The prices of higher margin products are more stable.…
11 Carbon Steel Prices in 2008/2009 as Compared to Today Inflation impacted both OCTG and LP in 2008resulting in a significant reduction in prices in 2009. Today, prices are lower and have less to fall in a downturn. OCTG…
12 Strategic Expansion into Offshore Production Platform MRO Top 4 largest offshore markets 140 billion E&P spend Norway is the largest we are positioned in 4 of the 5 largest offshore markets. MRC Global revenue mix Pre Stream…
13 Building an International Platform for Growth International Segment Revenue 873 ( millions) 567 554 330 256 52 0 2008 2009 2010 2011 2012 2013 2014 Estimated Percentage of PVF Spend1 MRC Gas MRC Global Chemical…
16 Balance Sheet Metrics ( millions) Total Debt Capital Structure Pro forma March 31, 2015 March 31, 1,527 2015 1,360 1,454 1,373 1,257 Cash and Cash Equivalents 49 49 987 Total Debt (including current portion): 690 - 790…
17 Summary of Key Terms - Convertible Preferred Stock Conversion price: 17.88. Convertible into approximately 20.3 million shares or 16.6% of shares outstanding after conversion. 6.5% annual dividend, payable quarterly…
18 Current 2015 Outlook Updated May 2015 Upstream market indicators North American E&P capital expenditure budgets down 30 - 35%, with Canada impacted the most International spending is expected to be 10-20% lower US rig count…
19 Investment Thesis Highlights Macro drivers MRC Global attributes Growth in global energy consumption Market leader driving investment Exposed to all sectors of global energy Increased global production Long term global…
20 Appendix
21 MRC Global // North America Canada Western Eastern Corporate Headquarters Branch Locations Regional Distribution Centers Valve Automation Centers Gulf Coast
22 Global Footprint to Serve Customers - North America Munster, IN Nisku, AB By the Numbers As of 3/31/2015 Branches 160+ RDCs 10 VACs 14 Cheyenne, WY Pittsburg, PA Employees 3,300 Odessa, TX Nitro, WV…
23 Global Footprint to Serve Customers - Europe Stavanger, NO Bradford, UK Rotterdam, NL By the Numbers As of 3/31/2015 Branches 35 RDCs 3 VACs 14 Branch Locations Countries 12 Regional Distribution Centers…
24 Global Footprint to Serve Customers - Asia Pacific & Middle East Dubai, UAE Singapore Perth, WA By the Numbers As of 3/31/2015 Branches 28 RDCs 4 Brisbane, QLD VACs 7 Countries 8 Branch Locations Regional…
25 M&A - Track Record of Strategic Acquisitions Acquisition Priorities International branch platform for super majors E&P spend Branch platforms/infrastructure for North American shale plays Global valve and valve automation…
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