Investor Presentation June 2016 1 Delivering Energy Infrastructure Solutions
Overview of USD Partners LP NYSE: USDP 3 Delivering Energy Infrastructure Solutions
A Growth-Oriented Logistics MLP with High-Quality Cash Flows Other Fee-Based Formed in 2014 by US Development Group, LLC to 4% acquire, develop and operate energy-related logistics assets Including rail terminals and other…
Hardisty Terminal at Canadas Largest Crude Oil Storage Hub Crude oil origination terminal that loads various grades of Canadian crude oil onto railcars for transportation to end markets Capacity to load up to two 120-railcar unit…
Casper Terminal Provides Competitive Access to Coastal Refiners Recently acquired crude oil terminal located in Casper, Wyoming Unit train-capable terminal with loading capacity in excess of 100,000 bpd Six customer-dedicated storage…
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 Average 2016 2017 2018 2019 Customer Today…
Financial Flexibility to Execute on Growth Opportunities 167 million of available liquidity, including: Leverage and Liquidity (in millions, as of 3/31/2016) 9 million of cash Cash and Cash Equivalents 8.6 159 million of revolver…
Current Market Dynamics and Opportunities 9 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 Production Type Heavy Crude Crude,…
Steady Growth in Western Canada Crude Oil Production Western Canada Crude Oil Production Outlook (April 2016) 6.0 5.2 5.1 4.9 5.0 4.6 4.3 4.1 3.9 3.8 4.0 (millions of barrels per day) 3.5 3.4 2.9 3.0 2.0…
Canadian Production Growth is Directed to Hardisty Storage Hub Our Hardisty and Casper terminals are scalable and strategically positioned to meet upcoming transportation needs 500,000 to 570,000 bpd of new volumes expected by 2017…
Additional Pipeline Capacity is Still Unclear Proposed long haul pipeline additions from Western Canada have faced meaningful delays Capacity 2013 CAPP Est. 2014 CAPP Est. 2015 CAPP Est. Current Est. Proposed Pipeline (mbpd) In…
Spreads Suggest Market is Currently in Balance Forecasted production growth expected to push WCS discounts wider and incentivize additional WCS barrels to move by rail to the U.S. Gulf Coast 10 5 0 Incentive to (5) Move by…
Growing Canadian Crude Oil Exports Headed to U.S. Gulf Coast U.S. Gulf Coast is the largest refining center in North America and likely destination for growing Canadian crude U.S. is effectively the sole export market for U.S. Crude…
Growth Opportunity: U.S. Gulf Coast Terminal on the Houston Ship Channel In October 2015, USDG and Pinto Realty Partners LP formed a joint venture to develop a premier logistics terminal on the Houston Ship Channel and are currently…
Growth Opportunity: Improving the Model by Railing a Heavier Canadian Barrel USDG is leading the development of a better industry solution for transporting bitumen barrels expected to maximize economics across the value chain through…
USD Partners LP Highlights Attractive 11% Yield plus 2016 Distribution Growth Guidance of 10% Take-or-Pay Cash Flows High Quality, Primarily Investment Grade Customers Strategically Located Assets Positioned for Organic…
Appendix 19 19 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) Houston Ship Channel, TX Development Projects 100% 49.9% LP Interest…
Attractive Yield Relative to Expected Distribution Growth USDP appears undervalued based on managements guidance of at least 10% distribution growth in 2016 Current Yield vs. 2016 2018 Expected Distribution CAGR (Midstream MLPs)…
Rail Provides Scalable and Flexible Market Access at a Relatively Low Fixed Cost Long-term, sustainable energy infrastructure solution with benefits for both producers and refiners Cost Quality Speed Market Optionality…
Strategically Located Ethanol Destination Terminals Multiple Industry Infrastructure Needs Addressed Fragmented production Significant regional imbalances Pipelines disadvantaged and trucks uneconomical Regulatory pressures…
Managing a Modern Railcar Fleet for Our Customers We provide customers with leased railcars and fleet services related to the transportation of liquid hydrocarbons and biofuels by rail on a multi-year, take-or-pay basis Services…
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…
Adjusted EBITDA and Distributable Cash Flow Reconciliation 1. The amounts presented represent the gross proceeds received at the time the derivative contracts were settled and do not consider the amounts paid in connection with the…
Adjusted EBITDA and Distributable Cash Flow Reconciliation Year Ended December 31, 2015 (in thousands) 1. The amounts presented represent the gross proceeds received at the time the derivative contracts were settled and do not…
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