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SIMMONS ENERGY CONFERENCE – Exterran Holdings, Inc.

Exterran Holdings, Inc. · Mar 5, 2015 · 41 slides

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Slides

  1. SIMMONS ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 1
    SIMMONS ENERGY CONFERENCE MARCH 5, 2015 Jon Biro David Miller Senior Vice President and Chief Financial Officer Senior Vice President, Finance and CFO, EXLP Exterran Exterran Holdings, Inc. Holdings, All rights Inc. All rights…
  2. SIMMONS ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 2
    COMPANY OVERVIEW Exterran Holdings (NYSE: EXH) Share Price1 32.27 Market Capitalization1,2 2.2 billion Average Trading Volume3 1,074,000 shares Dividend (annualized rate)4 0.60 / share Yield1,5 1.9% 1Asof March 2, 2015…
  3. SIMMONS ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 3
    FOURTH-QUARTER 2014 HIGHLIGHTS Grew operating horsepower in North America and International contract operations and increased fabrication bookings Delivered solid margin performance in each of our operating segments Exterran Partners…
  4. SIMMONS ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 4
    IMPROVED FINANCIAL PERFORMANCE Exterran Holdings EBITDA, as adjusted1 Exterran Partners EBITDA, as further adjusted2 700 300 280 659 634 14 600 250 239 25 500 461 434 200 181 388 ( millions) ( millions) 400 25 140…
  5. SIMMONS ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 5
    ENHANCED CREDIT PROFILE Total Debt Outstanding Exterran Holdings Debt to Adjusted EBITDA1 2,500 5.0x 4.5x 4.3x 2,027 1,897 3.9x 2,000 4.0x 1,773 1,565 3.5x 449 1,502 1,500 546 3.0x ( millions) 1,300 2.4x 681 2.5x 758…
  6. SIMMONS ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 6
    BUSINESS OUTLOOK Impact of current reduced commodity price environment: U.S. rig count has declined sharply from 2014 highs and oil and natural gas producers have lowered capital spending budgets for 2015. However, oil and natural gas…
  7. SIMMONS ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 7
    SEPARATION PLAN Exterran Holdings, Inc. All rights reserved. www.exterran.com 7
  8. SIMMONS ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 8
    UNLOCKING VALUE: CREATING TWO INDEPENDENT COMPANIES RemainCo SpinCo Core Pure-play U.S. compression services International services & global fabrication Focus 1 1 2% GP and 35% LP interests & incentive Global fabrication…
  9. SIMMONS ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 9
    STRATEGIC SEPARATION EXPECTED TO DELIVER SIGNIFICANT VALUE Opportunity to create immediate and long-term value for shareholders Creates two industry-leading energy infrastructure companies Enhances overall long-term growth…
  10. SIMMONS ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 10
    SEPARATION SNAPSHOT RemainCo SpinCo Public Public Shareholders Shareholders SpinCo RemainCo 0.7 billion Debt2 U.S. Contract International International Public LP / GP U.S. Operations Contract Aftermarket Fabrication…
  11. SIMMONS ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 11
    REMAINCO Exterran Holdings, Inc. All rights reserved. www.exterran.com 11
  12. SIMMONS ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 12
    REMAINCO HIGHLIGHTS Growth Positive Industry Fundamentals Organic Growth at EXLP Third-Party and Drop-Down Acquisition Opportunities at EXLP Continued Profitability Stability Improvement Structure Fee-Based Contracts…
  13. SIMMONS ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 13
    REMAINCO WILL BE A LEADER IN U.S. CONTRACT OPERATIONS SERVICES U.S. Outsourced Compression Competitors1 U.S. Natural Gas Production by Source2 3,600 Operating HP 660 at RemainCo 3,000 2,400 Operating HP (000s)…
  14. SIMMONS ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 14
    REMAINCOS GEOGRAPHIC DIVERSITY Operating horsepower growth of 816,000 in 20141 Source: Energy Information Administration 1Includes acquisitions of compression assets from MidCon Compression LLC closed April 10, 2014 and August 8,…
  15. SIMMONS ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 15
    REMAINCOS STABLE REVENUES & CASH FLOWS Services Revenue and Oil & Gas Prices1,2 800 200% 700 150% 600 Indexed to 12/31/08 Revenue (millions) 100% 500 400 50% 300 0% 200 -50% 100 0 -100% 2009 2010 2011 2012…
  16. SIMMONS ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 16
    REMAINCOS FAVORABLE PROFITABILITY TREND Gross Margin per Horsepower per Month1,2 12.00 10.60 10.42 10.30 10.50 9.82 10.00 9.58 9.92 9.84 10.00 9.10 8.87 8.79 8.43 8.37 8.45 7.91 8.00 6.00 4.00 2.00 0.00 Q2-11…
  17. SIMMONS ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 17
    EXLP DISTRIBUTIONS Distributable Cash Flow Coverage1 Distributions Declared to EXH 1.80x 70 1.60x 1.60x 1.51x 1.47x 60 58 1.40x 1.34x 1.31x 1.31x 1.28x 1.26x 1.22x 50 1.20x 1.20x 1.17x 50 1.20x 1.00x 40 ( millions) 34…
  18. SIMMONS ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 18
    EXLP GP IS LEVERAGED TO GROWTH AT EXLP EXLP GP GROWTH IS 7.3X EXLP GROWTH (AT CURRENT EXLP LEVEL) EXLP GP Distribution Leveraged to Underlying LP EXLP GP Distribution Also Grows as EXLP Unit Count Grows Distribution Growth (Linear…
  19. SIMMONS ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 19
    REMAINCO GROWTH STRATEGY Organic growth of 260,000 operating horsepower in 2014 Organic horsepower growth Adding new large and small horsepower compression units to fleet Exterran Holdings strategy to drop-down additional…
  20. SIMMONS ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 20
    SPINCO Exterran Holdings, Inc. All rights reserved. www.exterran.com 20
  21. SIMMONS ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 21
    SPINCO HIGHLIGHTS Growth Global Energy Infrastructure Build Out Redevelopment in U.S. Energy Markets Target New Customers for Fabricated Compressors Stability Structure Long-Term Fee-Based Low Debt Levels International Contract…
  22. SIMMONS ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 22
    SPINCO BUSINESSES International Services Product Sales International contract operations Seven fabrication facilities in North provided with SpinCo-owned fleet America and four in international Leader in Latin America locations…
  23. SIMMONS ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 23
    SPINCOS GLOBAL PRESENCE Revenue Mix1 Gross Margin Mix1,2 Eastern Eastern Hemisphere Hemisphere 34% 28% Latin America North 43% America Latin 42% North America America 24% 29% Kazakhstan Switzerland United States China…
  24. SIMMONS ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 24
    SPINCOS STABLE REVENUE & CASH FLOWS Services Revenue and Oil & Gas Prices1 600 200% 500 150% Indexed to 12/31/08 Revenue (millions) 400 100% 300 50% 200 0% 100 -50% 0 -100% 2009 2010 2011 2012 2013 2014…
  25. SIMMONS ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 25
    SPINCOS PRODUCT SALES TRENDS Fabrication Backlog and Revenue 1 By Region By Product Line 1,200 1,800 1,200 1,800 1,600 1,600 Revenue 1,000 Revenue 1,000 1,400 1,400 800 1,200 800 1,200 Revenue ( millions)…
  26. SIMMONS ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 26
    SPINCO GROWTH PROFILE Attractive play on the build-out of global energy infrastructure Leader in contract operations in international markets Support customer owned equipment through international aftermarket services business…
  27. SIMMONS ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 27
    SUMMARY Exterran Holdings, Inc. All rights reserved. www.exterran.com 27
  28. SIMMONS ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 28
    PROCESS OUTLINE Initial board authorization has been received No shareholder approval required Next steps Determine detailed allocation of assets & liabilities Complete necessary regulatory filings, including SpinCo Form 10 Obtain…
  29. SIMMONS ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 29
    RE-CAP OF STRATEGIC RATIONALE RemainCo SpinCo Pure-play yield investment leveraged to Focused company leveraged to growth in significant U.S. energy infrastructure global energy infrastructure build-out redevelopment and increased…
  30. SIMMONS ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 30
    ADDENDUM Exterran Holdings, Inc. All rights reserved. www.exterran.com 30
  31. SIMMONS ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 31
    CONSOLIDATED REMAINCO HISTORICAL PERFORMANCE Consolidated RemainCo Revenue Consolidated RemainCo Gross Margin1 ( in millions) ( in millions) 1,000 959 500 455 837 863 780 392 42 800 230 400 356 241 235 305 47 209 45 600 300 28…
  32. SIMMONS ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 32
    SPINCO HISTORICAL PERFORMANCE SpinCo Revenue SpinCo Gross Margin1 ( in millions) ( in millions) 2,500 2,298 600 571 577 1,957 1,941 474 2,000 1,833 500 416 226 252 400 157 1,500 1,661 123 1,348 1,284 43 1,226 300 38 40 32…
  33. SIMMONS ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 33
    PRO FORMA DEBT STRUCTURE Pro Forma Debt Structure as of December 31, 2014 ( millions) Existing Current Funded Funded Funded S&P/Moodys Pro Forma Pro Forma 2 Type Amount Size Maturity Rating RemainCo SpinCo 1 Senior Secured Facility…
  34. SIMMONS ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 34
    NON-GAAP FINANCIAL MEASURES Exterran Holdings, Inc.: EBITDA, as adjusted, a non-GAAP measure, is defined as net income (loss) excluding income (loss) from discontinued operations (net of tax), cumulative effect of accounting changes…
  35. SIMMONS ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 35
    NON-GAAP FINANCIAL MEASURES EXTERRAN HOLDINGS, INC. 4Q-14 NET INCOME FROM CONTINUING OPERATIONS ATTRIBUTABLE TO EXTERRAN STOCKHOLDERS, EXCLUDING ITEMS 4Q-14 Net Income attributable to Exterran stockholders 19,143 Income from…
  36. SIMMONS ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 36
    NON-GAAP FINANCIAL MEASURES (CONT.)1,2,3 EXTERRAN HOLDINGS, INC. ( in millions) Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Revenues North America Contract Operations 142.1 142.1…
  37. SIMMONS ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 37
    NON-GAAP FINANCIAL MEASURES (CONT.) EXTERRAN HOLDINGS, INC. (in thousands, except per HP amounts) 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 NACO Gross margin1 66,079 70,364 69,744 70,783 74,502 77,015…
  38. SIMMONS ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 38
    NON-GAAP FINANCIAL MEASURES (CONT.)1,2,3 EXTERRAN HOLDINGS, INC. 2010 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 ( millions) Net income (loss) (113.2) (30.4) (30.2) (214.5) (64.4)…
  39. SIMMONS ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 39
    NON-GAAP FINANCIAL MEASURES (CONT.) EXTERRAN PARTNERS, L.P. ( in thousands) 1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q 10 Net income (loss) 2,343 2,264 7,482 7,312 6,547 6,079 9,411…
  40. SIMMONS ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 40
    NON-GAAP FINANCIAL MEASURES (CONT.) EXTERRAN PARTNERS, L.P. PRO FORMA EXLP Q1-14 DISTRIBUTABLE CASH FLOW COVERAGE1 ( thousands) Coverage Coverage with without Cost Caps Cost Caps Q1-14 distributable cash flow as reported 36,143…
  41. SIMMONS ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 41

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