Skip to main content Citi MLP Conference – Tesoro Logistics Lp Investor Presentation | Shale Experts
Loading...
Pm

Citi MLP Conference – Tesoro Logistics Lp

Tesoro Logistics Lp · Aug 19, 2015 · 32 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Citi MLP Conference – Tesoro Logistics Lp – slide 1
    Driving Distinctive Growth Citi 2015 MLP/Midstream Infrastructure Conference August 2015
  2. Citi MLP Conference – Tesoro Logistics Lp – slide 2
    Key Investment Highlights Leading provider of upstream and downstream logistics services in Western United States Growth driven by integrated value chain from wellhead to end users Capturing opportunities from asset optimization,…
  3. Citi MLP Conference – Tesoro Logistics Lp – slide 3
    Well Positioned Assets 4
  4. Citi MLP Conference – Tesoro Logistics Lp – slide 4
    Strategic Initiatives Focus on Focused fee-based business with long-term minimum commitments Stable, Fee- Maintain minimal commodity price exposure Based Business Provide full-service logistics offering Optimize Improve operational…
  5. Citi MLP Conference – Tesoro Logistics Lp – slide 5
    Strong Sponsor Support Feedstock Inbound Logistics Refining Outbound Logistics Product Sales Acquisition Integration across Tesoros value chain provides competitive advantage and unique strategic support Tesoro provides anchor…
  6. Citi MLP Conference – Tesoro Logistics Lp – slide 6
    Proven Track Record of Delivering Value Adjusted EBITDA Growth Distributions Per LP Unit in millions annualized 2.89 670 1.35 151 319 87 39 42 1Q15 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13…
  7. Citi MLP Conference – Tesoro Logistics Lp – slide 7
    Committed and Diversified Business Model 2Q 2015 Revenue Covered By 2015E Business Mix MVCs or Acreage Dedications by EBITDA Crude Oil Above Gathering MVCs or Acreage 15% Dedications 30% Terminalling & Transportation Covered…
  8. Citi MLP Conference – Tesoro Logistics Lp – slide 8
    Crude Oil Gathering Asset Overview 700 miles of crude oil gathering and trunkline pipeline High Plains Pipeline throughput capacity of 190MBD Bakken Area Storage Hub storage capacity of 780 thousand barrels Strategy Support…
  9. Citi MLP Conference – Tesoro Logistics Lp – slide 9
    North Dakota Crude Oil Production Outlook Williston Basin Production Outlook MBD 2,250 2,000 1,750 1,500 1,250 1,000 750 500 37% slowdown in well completions 50% slowdown in well completions 250 Actual 0 Jan-07…
  10. Citi MLP Conference – Tesoro Logistics Lp – slide 10
    High Plains Pipeline Well Positioned Current Wellhead Breakeven Prices /barrel Tier 3 60+ Tier 2 35 - 40 Bakken Core 20 - 30 Source: North Dakota Department of Mineral Resources, July 2015 11
  11. Citi MLP Conference – Tesoro Logistics Lp – slide 11
    Crude Oil Gathering Growth North Dakota Rigs Investing approximately 260 by county million in crude oil gathering opportunities in 2015 Expand Bakken Area Storage Hub to over 1 million barrels Focused expansions to enhance…
  12. Citi MLP Conference – Tesoro Logistics Lp – slide 12
    Crude Oil Gathering Committed Customers 2Q15 Revenue 2Q15 Revenue by Covered Under MVCs Customer Credit Rating Investment High Yield Grade 20% 15% Above MVCs 40% Covered Under MVCs 60%1 Tesoro 65% Strong MVCs…
  13. Citi MLP Conference – Tesoro Logistics Lp – slide 13
    Rockies Natural Gas Business Asset Overview Approximately 2,000 miles of natural gas gathering pipeline Natural gas gathering capacity of over 2,900 MMcf/d Four natural gas processing complexes and one fractionation facility Over…
  14. Citi MLP Conference – Tesoro Logistics Lp – slide 14
    Rockies Natural Gas Growth Investing approximately 90 million in natural gas opportunities in 2015 Investing 40-60 million to expand compression in the Pinedale basin Investing 50-75 million to expand gathering, compression and…
  15. Citi MLP Conference – Tesoro Logistics Lp – slide 15
    Natural Gas Committed Customers 2Q15 Revenue Covered Under Credit Rating by Acreage Dedications and MVCs Number of 2Q15 Customers Above Acreage Dedications and MVCs 10% Covered Under Acreage High Yield Dedications 30% Covered…
  16. Citi MLP Conference – Tesoro Logistics Lp – slide 16
    Terminalling & Transportation Asset Overview 24 refined product and storage terminals with over 955MBD throughput capacity Four marine terminals with 795MBD throughput capacity 760 mile Northwest Products System pipeline Over 100…
  17. Citi MLP Conference – Tesoro Logistics Lp – slide 17
    Favorable Refined Products Market Outlook PADD5 Operable Utilization (%) PADD5 Gasoline Demand (MBD) 95 1,800 90 1,700 85 1,600 80 1,500 75 70 1,400 5 Yr Range 2015 2014 5 Yr Avg. 5 Yr Range 2015 2014 5 Yr Avg. 65…
  18. Citi MLP Conference – Tesoro Logistics Lp – slide 18
    Terminalling & Transportation Growth Investing approximately 40 million in 2015 New Anacortes, WA products truck-loading terminal Adding additional Tesoro volumes in Southern California through new pipeline interconnects Increasing…
  19. Citi MLP Conference – Tesoro Logistics Lp – slide 19
    Terminalling & Transportation Committed Customers 2Q 2015 Revenue 2Q 2015 Revenue by Covered Under MVCs Customer Credit Rating Investment Grade 10% Above MVCs 30% Covered Under MVCs 60%1 Tesoro 90% Common Carrier…
  20. Citi MLP Conference – Tesoro Logistics Lp – slide 20
    Organic Investment Drives EBITDA Growth in millions Consolidated Capital Spend Expected EBITDA Growth Net Maintenance Capital Net Growth Capital 380 370 350 225 200 200 150 70 37 40 50 50 2014 2015E 2016E 2017E 2015E…
  21. Citi MLP Conference – Tesoro Logistics Lp – slide 21
    Tesoro Driven Logistics Opportunities Feedstock Inbound Logistics Refining Outbound Logistics Product Sales Acquisition Marine Refinery tank Refined products Wholesale terminals terminals distribution distribution terminals system…
  22. Citi MLP Conference – Tesoro Logistics Lp – slide 22
    Distinctive Growth Strategy in millions 2014 2015E 2016E 2017E Gathering (Incl. natural gas) 71 250-270 310-340 335-395 Processing 8 140-160 140-160 150-180 Terminalling and Transportation 260 285-315 300-330 310-340 Drop Downs…
  23. Citi MLP Conference – Tesoro Logistics Lp – slide 23
    Financial Discipline Conservative 900 million revolving credit facility, expandable to 1.5 billion Leverage and Long-term leverage target of 3x to 4x EBITDA Ample Liquidity Expect leverage ratio within target range by end of 2015…
  24. Citi MLP Conference – Tesoro Logistics Lp – slide 24
    Value Proposition to Unitholders Distributions Per LP Unit Distributable Cash Flow 113 1082 annualized in millions 114% Target coverage ratio Since IPO in 2Q 2011 2.89 1.1x 561 53 51 51 2.78 39 2.67 36 2.57 25 26 2.46 2.36…
  25. Citi MLP Conference – Tesoro Logistics Lp – slide 25
    Continuing to Drive Unitholder Value Stable Cash Flow Well-Positioned Strong Sponsorship Assets Attractive, Visible Experienced Growth Opportunities Management Team 26
  26. Citi MLP Conference – Tesoro Logistics Lp – slide 26
    Appendix
  27. Citi MLP Conference – Tesoro Logistics Lp – slide 27
    Non-GAAP Financial Measures The financial information contained herein has been retrospectively adjusted to include the historical results of assets acquired from Tesoro and its affiliates. We refer to the historical results of the Los…
  28. Citi MLP Conference – Tesoro Logistics Lp – slide 28
    Non-GAAP Financial Measures (a)We believe that this presentation of our results of operations excluding results of our Predecessors will provide useful information to investors in assessing our results of operations. We believe investors…
  29. Citi MLP Conference – Tesoro Logistics Lp – slide 29
    Non-GAAP Financial Measures (In millions) Tesoro Logistics LP Annual EBITDA 2011 2012 Net earnings 26 48 Add loss attributable to Predecessor 8 9 Add depreciation and amortization expense, net of Predecessor expense 6 11 Add…
  30. Citi MLP Conference – Tesoro Logistics Lp – slide 30
    Non-GAAP Financial Measures (In millions) Gathering: Reconciliation of Forecasted EBITDA to Forecasted Net Income Tesoro Logistics LP Gathering Segment Forecasted EBITDA 2015E 2016E 2017E Forecasted Net Income 143 - 163 195 - 225…
  31. Citi MLP Conference – Tesoro Logistics Lp – slide 31
    Non-GAAP Financial Measures (In millions) Reconciliation of Forecasted annual EBITDA to Forecasted Net Income: Annual EBITDA Contributions from Drop Downs from Tesoro 2015E 2016E 2017E Forecasted Net Income 28 - 53 56 - 106 84 - 159…
  32. Citi MLP Conference – Tesoro Logistics Lp – slide 32
    Commercial Agreements With Tesoro Termination Provisions Fixed Minimum Initation Volume Tarrif/Fee Force Date Term Renewals Commitment Escalators Refinery Shutdown Majeure Transportation Agreement (High Plains System) Apr-11 10…

From the store

Browse maps, data & reports in the Shale Experts store