Delivering Energy Infrastructure Solutions April 2016 Investor Presentation
A Growth-Oriented Logistics MLP with High-Quality Cash Flows Formed in 2014 by US Development Group, LLC to acquire, develop and operate energy-related logistics assets, including rail terminals and other high-quality and complementary…
Hardisty Terminal at Canadas Largest Crude Storage Hub Crude origination terminal that loads various grades of Canadian crude oil onto railcars for transportation to end markets Only unit train-capable terminal servicing the Hardisty…
Casper Terminal Provides Competitive Access to Canadian Crude Crude oil storage, blending and railcar loading Located at the Intersection of the Express and Platte Pipelines terminal located in Casper, Wyoming Unit train-capable railcar…
Casper Terminal Tankage Adds to Value Proposition Customer-dedicated onsite tankage provides unique value Casper Terminal Crude Oil Storage Tanks proposition by enabling customers to: Preserve specific quality of crude oil Blend…
Cash Flows from High-Quality Take-or-Pay Contracts High-quality, primarily investment grade customers provide stable and predictable cash flows through current commodity price cycle (Asset - % of Pro Forma Average 2016 2017 2018 2019…
Financial Flexibility to Execute on Growth Opportunities Partnership has 168 million of available liquidity USDP Leverage and Liquidity Exercised 100 million senior secured credit facility As of accordion in November 2015 (US in…
Current Market Dynamics and Opportunities DELIVERING ENERGY INFRASTRUCTURE SOLUTIONS
Western Canadian Oil Sands are Unlike U.S. Shale Oil sands production has unique qualities that make it less sensitive to temporary commodity price movements Western Canada Oil Sands U.S. Shale Crude, natural gas and Production Type…
Steady Growth in Western Canada Crude Oil Production The industry has recently added nearly one million barrels per day of new gathering capacity into the Hardisty hub Gibson Energy, USDPs partner at Hardisty, is constructing 2.9…
Spreads Suggest Market is Currently in Balance Forecasted production growth likely to push discounts wider and create a call on rail 10 WCS unattractive relative to Maya on a transportation cost adjusted basis 5 0 WCS an…
Additional Pipeline Capacity is Still Unclear Proposed Long Haul Pipeline Additions from W. Canada Have Faced Meaningful Delays Capacity 2013 CAPP Est. 2014 CAPP Est. 2015 CAPP Est. Current Est. Proposed Pipeline (mbpd) In Service Date…
U.S. Gulf Coast Destination on the Houston Ship Channel In October 2015, USDG and Pinto Realty Partners LP formed a joint venture to develop a premier U.S. Gulf Coast logistics terminal on the Houston Ship Channel The 988-acre property…
Improving the Model: Railing a Heavier Canadian Barrel Transporting a heavier grade of crude oil from Western Canada (bitumen) is expected to improve economics on both ends of the value chain, in a safer and more efficient way Expected…
Building on Our Network Strategy Western Canada Origination 700,000 1,000,000 bpd expected increase in crude oil production through 2020, primarily from projects already operating or under construction Sample crude oil routes to…
Partnership Highlights Strategically Located Assets Stable and Predictable Cash Flows Multiple Growth Levers Financial Flexibility Relationship with Sponsor & ECP 18 DELIVERING ENERGY INFRASTRUCTURE SOLUTIONS
Appendix DELIVERING ENERGY INFRASTRUCTURE SOLUTIONS
USD Partners LP Structure Energy Capital USD Holdings LLC Goldman Sachs Partners & Management Hardisty Terminal Expansions USD Group LLC (the Sponsor) Development Projects Houston Ship Channel, TX 100% Philadelphia, PA…
Attractive Yield Relative to Expected Distribution Growth USDP appears undervalued based on managements guidance of 10% distribution growth in 2016 Current Yield vs. 2016 2018 Expected Distribution CAGR (Midstream MLPs) 35.00%…
Rail Provides Scalable and Flexible Market Access Rail enables a number of advantages for both producers and refiners Cost Quality Speed Market Optionality Preservation Less upfront investment Shorter development time Option to…
Strategically Located Ethanol Destination Terminals Industry Infrastructure Needs Addressed: Fragmented production Significant regional imbalances Pipelines disadvantaged and trucks uneconomical Regulatory pressures regarding gasoline…
Our Modern Railcar Fleet We provide customers with railcars and fleet services related to the transportation of liquid hydrocarbons and biofuels by rail on a multi-year, take-or-pay basis Services include administrative and billing,…
Strong Safety Record Distinguishes USD in the Marketplace We are committed to safe, efficient and reliable operations that comply with environmental and safety regulations All USDP facilities currently meet or exceed applicable…
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