Emerge Energy Services LP Investor Presentation September 2015 www.emergelp.com PAGE 1
Competitive Strengths High Quality, Stable Strategically Cash Flow Located Assets Significant Intrinsic Organic Logistics Growth Advantages Capacity Strong Reputation w/ Low Cost Customers and Operating…
Strengthening the Partnership Formed by the sand and fuel segments, the Emerge Energy Services partnership provides significant EBITDA scale and balance, while also enhancing diversification benefits as the market evolves. Sand…
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…
2Q15 Summary Performance The energy market downturn has created difficult market conditions for frac sand in 2Q15 compared to those in 1Q15 and 2014. However, the fuel division experienced stronger performance sequentially in 2Q15 vs.…
Conservative 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 86.8 million as of 2Q15 end. At…
Favorable MLP Structure Strong Distributions per Unit Growth 1.50 1.38 1.41 1.25 1.13 1.17 1.00 1.00 1.00 0.86 (1) 0.70 0.67 0.75 0.50 0.25 0.00 (1) Fullquarter results based on 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014…
Expanding 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…
Weathering the Cycle - Downturns Comparison The current precipitous rig count decline is one of the most severe of the recent downturns as measured by decrease from peak to trough. However, many analysts believe that we are nearing…
Focusing on Basins with Strong Economics 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)…
Driving Proppant Usage Emerge Energys key plays have experienced The primary driver has been increased sand increased sand usage. intensity. Total Frac Sand Consumption by Basin Frac Sand Consumption per Horizontal Well (mm pounds)…
Improving Market Share The downturn in the energy market is favoring the large sand providers as customers are demanding competitive prices with complete logistics solutions. Taking the Lead Solid Long-Term Sales Customers are…
Improving Market Share (cont.) 1H15 vs. Peers The EMES sand segment picked up market share amongst the four publicly-traded frac sand providers as our volume declined 15.4% in 1H15 vs. 2H14 while the total of the four declined 16.3%.…
Significant Capital Invested & Underutilized Assets The company has invested a significant amount of capital in its sand facilities. With moderate utilization in the current market, the sand segment has a tremendous amount of room for…
Summary of 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…
Summary of 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…
APPENDIX www.emergelp.com PAGE 18
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 20
From Mine to Railcar Extract Wash Dry Ship www.emergelp.com PAGE 21
Sand Asset Summary Wet Plant Location Proven Recoverable Primary Reserve Plant Capacity 2014 Production 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 24
North American Sand Markets EMES has single-line access to four Class One railroads, which provide 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 26
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 Quarter Ended, June 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014 Revenue 200,852 203,961 242,562 296,338 298,273…
Non-GAAP Reconciliation: Adjusted EBITDA The following table presents a reconciliation of Adjusted EBITDA to the most directly comparable GAAP financial measures for each of the periods indicated. Quarter Ended, June 30, 2015 Mar…
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