Sprague Resources LP Investor Update May 6, 2016 1
Sprague Overview Sprague was founded in 1870 and has grown to become one of the largest suppliers of energy and materials handling services to commercial and industrial customers in the northeast United States and Quebec today…
Key Considerations Outstanding operating performance has resulted in 1.6x coverage on TTM basis(1) Financial Strength Naturally de-levering balance sheet, low permanent leverage and ample liquidity Ability to finance near term…
Spragues History of Growth Fueling Americas Evolving to Meet Expanding the New Geographies Investing to Drive Growth New Fuel Needs Product Offering and Capabilities Growth 1870 to 1950 1950 to 1985 1985 to 2000 2000 to 2010 2010…
Sprague Acquisition History Sprague has invested more than 445 million in acquisition growth since 2000 primarily through non-auction processes that leverage its network of relationships Metromedia Energy 22.0 mm Searsport, ME Mt.…
Refined Products Business Sprague purchases, transports, stores and markets distillates, unbranded gasoline, residual fuel oil and asphalt to wholesalers, resellers and commercial customers. Of our total volume sold in 2015, distillate…
Natural Gas Business Sprague sells natural gas and related delivery services to industrial, commercial, institutional and government customers. Exploration / Production Processing Storage Transportation Local Distribution…
Materials Handling Business Sprague utilizes its waterfront terminal network to offload, store and prepare for delivery a wide variety of liquid, bulk and break bulk materials on long-term, predominantly fee-based contracts.…
Earnings Diversity Adjusted Gross Margin for Year Ended 2015: 276 million Natural Gas 18% Refined Products 62% Materials Handling Refined Products Volume by 17% Product Segment: 2015 Other Other Distillates 3% Materials…
Refined Products Advantages Asset Network Spragues large and One of the largest independent wholesale distributors of refined strategically located physical products in the Northeast US and Canada system supports a marketing…
Refined Products Terminal Network Storage and Marketing Metrics (1) Storage Tanks 209 Tank Capacity(2) 14.2 MMbbl TTM Volume 34 million barrels (1) As of March 31, 2016 (2) Does not include 2.0 million barrels of storage…
Refined Products Growth Acquisition Growth leveraging existing expertise and customer service systems Castle Oil asset purchase completed December 8, 2014 907,000 barrel waterfront terminal asset in Bronx, NY established permanent…
Natural Gas Advantages Marketing Strength Sizeable market presence of approximately 15,000 commercial Sprague believes a and industrial service locations throughout the Northeast and marketing model built on Mid-Atlantic states…
Natural Gas Service Area (1) Supply and Marketing Metrics Pipelines 21 States/Utilities 13/42 TTM MMBtus 55,700,000 Customer Locations 16,000 Sprague transportation rights: (1) As of March 31, 2016 15
Natural Gas Growth Acquisition Growth leveraging existing expertise and customer service systems Metromedia Energy asset purchase completed October 1, 2014 15 Bcf of annual natural gas supply to additional 10,000 commercial, industrial…
Santa Buckley Energy Natural Gas Division Transaction Terms On 2/1/2016, Sprague Resources LP (NYSE: SRLP) announced that its operating subsidiaries, Sprague Operating Resources LLC and Sprague Energy Solutions Inc., had finalized the…
Sprague Natural Gas Service Area including Santa Buckley Key transaction considerations Purchase continues to build scale for Spragues commercial and industrial account base in existing New England footprint Transaction leverages…
Materials Handling Advantages Premier Asset Locations Network of waterfront terminals from New York to New England and Quebec, offering customers unparalleled import/export Spragues materials access to the densely populated Northeast…
Terminal Example - Searsport, Maine Available for Development Storage for Sprague or Third-Party Use Third Party Road Salt Clay Slurry Tanks Pads Coal / Petcoke Third Party Tanks Food Grade Warehouses Rail connection to…
Materials Handling Business Storage Metrics (1) Storage Tanks 209 Tank Capacity (2) 14.2 MMbbl 25 Pads: 1,647,000 ft2 9 Warehouses: 305,000 ft2 (1) As of March 31, 2016 (2) Does not include 2.0 million barrels of storage…
Materials Handling Growth Acquisition Growth leveraging existing expertise and customer service systems Castle Oil asset purchase completed December 8, 2014 Deepwater terminal asset in Bronx, NY provided direct access to New York Citys…
Sprague Resources LP (SRLP) Overview Investment Highlights as of May 6, 2016 (1) Distribution Per LP Unit / Unit 0.5325 0.5175 0.52 0.5025 Ticker SRLP 0.50 0.4875 Exchange NYSE 0.48 0.4725 0.4575 0.46 SRLP Price Per Unit…
Financial Strengths Outstanding operating performance has resulted in 1.6x coverage on TTM basis(1) Strong Coverage Eight consecutive quarterly distribution increases Maintained double-digit distribution growth guidance as of May…
Financial Performance Adjusted Gross Margin Key 2015 Events ( millions) 300 276.0 Refined Products Volume benefit from Castle acquisition, colder weather 245.0 in the first three months of the year; improved unit margins 250…
Sprague Consolidated and Condensed Balance Sheet As of March 31, 2016 (In thousands) 3/31/16 12/31/15 3/31/16 12/31/15 Liabilities and unitholders equity Assets Current liabilities: Current assets: Accounts payable and accrued…
Credit Facility, Liquidity and Leverage Total Facility Size - 1.67 billion (Committed 5 years, expiring December 2019) 1.12 billion Working Capital facilities (includes 120 million multicurrency Working Capital facility) 550 million…
Q1 2016 Selected Metrics Three Months Ended March 31, 2016 2015 (unaudited) (unaudited) ( and volumes in thousands) Volumes: Refined products (gallons) 477,372 726,432 Natural gas (MMBtus) 18,831 20,013 Materials handling (short…
Q1 2016 Adjusted EBITDA Reconciliation Three Months Ended March 31, 2016 2015 ( in thousands) Statement of Operations Data: Net sales 722,907 1,598,358 Operating costs and expenses: Cost of products sold (exclusive of depreciation…
Q1 2016 Distributable Cash Flow Reconciliation Three Months Ended March 31, 2016 2015 (unaudited) (unaudited) ( in thousands) Reconciliation of adjusted EBITDA to distributable cash flow: Adjusted EBITDA (1) 45,400 63,540…
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