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CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Exterran Partners Lp

Exterran Partners Lp · Jun 24, 2015 · 31 slides

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Slides

  1. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Exterran Partners Lp – slide 1
    CREDIT SUISSE MLP & ENERGY LOGISTICS CONFERENCE JUNE 24, 2015 David Miller Senior Vice President and Chief Financial Officer Exterran Exterran Partners, L.P. Holdings, All rights Inc. All rights reserved. reserved.…
  2. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Exterran Partners Lp – slide 2
    PARTNERSHIP OVERVIEW Exterran Partners (NASDAQ: EXLP) Unit Price1 24.22 Market Capitalization1,2 1.4 billion Average Trading Volume3 174,000 units Distribution (annualized rate)4 2.25 / unit Yield1,5 9.3% Distributable cash…
  3. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Exterran Partners Lp – slide 3
    EXTERRAN HOLDINGS SEPARATION PLAN Exterran Partners, L.P. All rights reserved. www.exterran.com 3
  4. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Exterran Partners Lp – slide 4
    UNLOCKING VALUE: CREATING TWO INDEPENDENT COMPANIES RemainCo SpinCo Core Pure-play U.S. compression services International services & global fabrication Focus 2% GP and 39% LP interests & incentive Global product sales 1…
  5. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Exterran Partners Lp – slide 5
    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…
  6. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Exterran Partners Lp – slide 6
    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…
  7. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Exterran Partners Lp – slide 7
    REMAINCO HIGHLIGHTS Fee-based contracts Production-related business model Stability Largest compression services company in the U.S. with coverage in all major producing basins Positive industry fundamentals Organic growth at…
  8. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Exterran Partners Lp – slide 8
    SPINCO HIGHLIGHTS Long-term fee-based international contract operations Attractive returns on capital Stability Unmatched footprint Fabrication backlog of 730 million at 3/31/15 Global energy infrastructure build out Growth…
  9. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Exterran Partners Lp – slide 9
    PROCESS OUTLINE Initial board authorization has been received Five new directors were nominated and elected to the EXH board in contemplation of the separation transaction Named management teams and chairs of RemainCo and SpinCo…
  10. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Exterran Partners Lp – slide 10
    FAVORABLE INDUSTRY MARKET FUNDAMENTALS Exterran Holdings, Inc. All rights reserved. www.exterran.com 10
  11. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Exterran Partners Lp – slide 11
    CONTRACT OPERATIONS Focus of Exterran Contract Operations Processing Wellhead Production Main Line Transmission Gas compression is an essential service utilized all along the production cycle to transport gas to the end…
  12. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Exterran Partners Lp – slide 12
    OIL & GAS SPENDING AND GAS PRODUCTION OUTLOOK U.S. Drilling & Completion Spending 1 2 U.S. Natural Gas Production (bcfd) We believe that the long-term oil and gas infrastructure build-out in shale and liquids-rich plays will…
  13. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Exterran Partners Lp – slide 13
    LEADER IN U.S. CONTRACT OPERATIONS SERVICES U.S. Outsourced Compression 3,600 Competitors1 EXLP is the largest contract 509 Operating horsepower at Exterran Holdings compression provider in the U.S. 3,000 with 3.2 million1,2…
  14. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Exterran Partners Lp – slide 14
    U.S. NATURAL GAS MARKET U.S. Natural Gas Production by Source (billion cubic feet per day) (trillion cubic feet) Optimistic outlook driven by growth in U.S. shale gas and tight oil plays Source: EIA, Annual Energy Outlook…
  15. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Exterran Partners Lp – slide 15
    GEOGRAPHIC DIVERSITY 1,2 Operating horsepower growth of 762,000 over the past year1 Source: Energy Information Administration 1As of 3/31/15; includes acquisitions of compression assets from MidCon Compression LLC closed April…
  16. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Exterran Partners Lp – slide 16
    STABLE REVENUES & CASH FLOWS Exterran Holdings U.S. Contract Operations Revenue and Oil & Gas Prices1,2 Fee-based Compression Services provide stable cash flow 1Henry Hub indexed to 5.63 per million BTU at December 31, 2008; WTI…
  17. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Exterran Partners Lp – slide 17
    GROWTH STRATEGY Organic growth of 210,000 operating horsepower over the Organic horsepower growth past year1 Adding new large and small horsepower compression units to fleet Exterran Holdings strategy to drop-down additional…
  18. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Exterran Partners Lp – slide 18
    FINANCIAL REVIEW Exterran Holdings, Inc. All rights reserved. www.exterran.com 18
  19. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Exterran Partners Lp – slide 19
    RECENT HIGHLIGHTS At the end of 2014, eliminated the need for cost caps reimbursement and terminated cost caps provisions in the omnibus agreement First quarter 2015 financial results Solid financial performance highlights the…
  20. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Exterran Partners Lp – slide 20
    FAVORABLE PROFITABILITY TREND Gross Margin per Horsepower per Month1 12.00 11.13 10.94 10.89 9.9710.57 10.58 9.75 9.92 9.67 9.84 10.00 9.00 8.78 8.43 8.10 7.93 7.61 7.40 8.00 6.00 4.00 2.00 0.00 1Q-11 2Q-11…
  21. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Exterran Partners Lp – slide 21
    FEE-BASED BUSINESS WITH TRACK RECORD OF GROWTH Period Ending Operating Horsepower EBITDA, as further adjusted2,3 350 303 300 280 250 239 ( millions) 200 181 150 140 105 100 86 85 59 50 1 0 2007 2008 2009 2010…
  22. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Exterran Partners Lp – slide 22
    CASH DISTRIBUTIONS 1.80x Distributable Cash Flow Coverage1 1.60 1.60x 1.51x 1.47x 1.42x 1.40x 1.34x 1.28x 1.31x 1.31x 1.26x 1.20x 1.20x 1.20x 1.17x 1.09x 1.00x 0.80x 1.46x 1.41x 1.42x 1.31x 0.60x 1.22x 1.24x 1.15x…
  23. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Exterran Partners Lp – slide 23
    DEBT STRUCTURE Debt Structure as of March 31, 2015 ( millions) Funded S&P/Moodys Type Amount Size Maturity Rating Secured Revolver 502 900 2018 NR3 Secured Term Loan 150 150 2018 NR3 EXLP 6% Senior Notes 1 346 346 2021 B/B1 EXLP…
  24. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Exterran Partners Lp – slide 24
    ATTRACTIVE CURRENT YIELD MLP Industry Yields June 20151 Fee-based business model with attractive current yield 1 Source: Barclays Capital Energy Infrastructure Weekly June 12, 2015; EXLP as of June 16, 2015. Exterran Partners,…
  25. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Exterran Partners Lp – slide 25
    INVESTMENT MERITS Well-positioned to benefit from favorable industry fundamentals with leading market position Services business model tied to production Solid capital position with proven growth strategy Fee-based revenues…
  26. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Exterran Partners Lp – slide 26
    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…
  27. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Exterran Partners Lp – slide 27
    NON-GAAP FINANCIAL MEASURES EXLP (CONT.) ( in thousands) 2007 2008 2009 2010 2011 2012 2013 2014 Net income (loss) 19,401 29,847 14,784 (23,333) 6,053 10,509 64,023 61,719 Depreciation and amortization 16,570 27,053 36,452 52,518…
  28. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Exterran Partners Lp – slide 28
    NON-GAAP FINANCIAL MEASURES EXLP (CONT.) ( in thousands) 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 Net income (loss) 223 (1,938) 3,253 4,515 4,505 (19,050) 10,380 14,674 14,733…
  29. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Exterran Partners Lp – slide 29
    NON-GAAP FINANCIAL MEASURES EXLP (CONT.) (in thousands) 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 Gross margin1 31,677 32,017 41,082 40,573 44,584 51,725 50,672 57,352 59,010 74,644 64,330 66,164 Average…
  30. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Exterran Partners Lp – slide 30
    ESTIMATED VALUE OF EXH OWNERSHIP POSITION IN EXLP ( millions, except EXLP unit price) Q1 2015 EXLP LP Units Owned by EXH1 23.6 EXLP Unit Price2 24.22 LP Value 571.2 Annualized EXLP GP Cash Distributions3 18.1 Peer Multiple4…
  31. CREDIT SUISSE MLP AND ENERGY LOGISTICS CONFERENCE – Exterran Partners Lp – slide 31

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