Emerge Energy Services LP Investor Presentation June 2015 www.emergelp.com PAGE 1
Investment Considerations High Quality, Stable Strategically Cash Flow Located Assets Significant Intrinsic Organic Logistics Growth Advantages Capacity Strong Reputation w/ Low Cost Customers and Operating Suppliers…
Partnership Overview Sand Fuel Leading manufacturer of Northern Primarily consists of processing & White silica sand, 99% sold as a selling transportation mixture proppant for hydraulic fracturing (transmix) Diversified customer…
Strong Track Record of Growth Over the past three years, EMES has grown sand and fuel volumes at a substantial rate; consequently, total adjusted EBITDA has increased by a 142% CAGR from 2011 to 2014. Volume Growth: 2011 - 2014…
1Q15 Summary Performance Despite year-over-year volume declines in the fuel business and demand pressure in the sand segment, EMES performed well in 1Q15 driven by a year-over-year increase in sand volume. The energy market downturn has…
Pro Forma Capitalization EMES has a strong balance sheet, which provides financial stability in the current turbulent market conditions, and the Companys 350 million revolver has availability of 105.7 million. At 1.9x as of 1Q15, we…
Favorable MLP Structure Strong Distributable Cash Flow per Share Growth 1.41 1.50 1.38 1.25 1.17 1.13 1.00 1.00 1.00 0.86 0.75 0.37 (1) 0.50 0.25 (1) Pro rated distribution; 0.00 full quarter distribution equivalent of…
Strong Logistics Platform Our Wisconsin sand facilities have direct access on four Class One rail lines and can reach all major shale plays in North America on single-line hauls. Logistics Highlights Wide Geographic Presence Emerge…
Energy Cycle Downturns Comparison The current precipitous decline in rig count is one of the most severe of the recent market downturns as measured by rig count decline from peak to trough. However, many analysts believe that we are…
Economics By Producing Basin The sand segment sells product into oil and gas basins that have strong economics, even with the sharp decline in commodity prices over the past six months. WTI Oil Breakeven Price ( per Bbl) For 15% ATAX…
Proppant Usage is Expanding Emerge Energys key plays have increased The primary driver has been increased sand sand usage. intensity. Total Frac Sand Consumption Frac Sand Consumption Per Well (mm of pounds) (mm of pounds) 9,000…
The Strong Are Getting Stronger The downturn in the energy sector is favoring the large sand providers as customers are demanding competitive prices with complete logistics solutions. Taking the Lead Solid Long-Term Sales Customers…
Growing Sand Market Share in 1Q15 The EMES sand segment picked up market share amongst the four publicly-traded frac sand providers as our volume declined 6.7% in 1Q15 vs. 4Q14 while the total of the four declined 12.0% Our sand…
Current Sand Segment Initiatives In light of the current market downturn, the management team is working on a number of revenue and cost initiatives to help mitigate the impact of pricing and volume pressure. Customers are now keenly…
Fuel Segment Initiatives The recent volatility in fuel prices has created obstacles in the fuel segment, but the team has developed a number of answers for the current market conditions. Leverage strong relationships and existing…
APPENDIX www.emergelp.com PAGE 17
Management and Board of Directors Years of Name Title Professional Experience Senior Management Team Rick Shearer Chief Executive Officer of EMES; CEO of Sand Division 41 Warren B. Bonham Vice President, Fuel; President of Fuel…
APPENDIX: SAND SEGMENT www.emergelp.com PAGE 19
From Mine to Railcar Extract Wash Dry Ship www.emergelp.com PAGE 20
Diversified Sales Portfolio LTM 1Q15 Sales by Basin LTM 1Q15 Sales by Customer Eagle Ford Permian Marcellus Canada Bakken Mid-Con Cust A Cust B Cust C Cust D Barnett Rockies Haynesville Cust E Cust F Cust G Cust H 3rd Party…
Sand Asset Summary Proven Recoverable Primary Reserve Plant Capacity 2014 Production Wet Plant Location Reserves (1) Composition (Thousands of Tons) (Thousands of Tons) New Auburn, WI 27.8 mm tons 14-60 mesh 2,000 1,332 Thompson…
Current Operations Process Flow Thompson Hills FLS/Arland LP Mine Church Road Barron Arland CN New Auburn New Auburn MNNR BNSF, UP CN, CP, UP Kosse Kosse www.emergelp.com PAGE 23
North American Sand Markets EMES has single-line access to four Class One railroads, which provides direct rail access to every major basin in North America National Network BNSF CN/GTW CP/SOO CSX /NS KCS/KSCSM UP Basin…
APPENDIX: FUEL SEGMENT www.emergelp.com PAGE 25
Fuel Segment Operations Fuel Segment provides a stable base with meaningful growth opportunities. Transmix Terminal 2014 2014 Terminal 2014 Fuel from Pipeline Processing Tankage Wholesale Throughput Transmix Sold Connectivity…
Overview of Fuel Segment Business Fuel segment revenue comes from a diverse mix of stable margin and fixed-fee activities. Product Source EMES Consumer Wholesale and Terminal Gasoline Vapor Recovery Unit Diesel Truck…
Refined Product Pipelines in the US Transmix facilities are primarily located along major refined products pipelines Direct AEC Fuels Refined Products Pipeline Transmix Facilities EMES FP&D Facilities www.emergelp.com PAGE…
Recent Financial Results Unaudited Quarterly Financial Results for Emerge Energy (000s) Three Months Three Months Three Months Three Months Three Months Ended Mar 31, Ended Dec 31, Ended Sep 30, Ended Jun 30, Ended Mar 31, 2015 2014…
Non-GAAP Reconciliation The following table presents a reconciliation of Adjusted EBITDA to the most directly comparable GAAP financial measures for each of the periods indicated. Three Months Three Months Three Months Three Months…
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