CSI Compressco LP Capital One Investor Meetings May 2016 Tim Knox President Elijio Serrano Chief Financial Officer www.CSICompressco.com 2016 CSI Compressco LP
2016 1Q Highlights Cash Flow Positive Operations in Challenging Business Climate Q1 2016 distribution coverage ratio [1] of 1.11x Q1 2016 adjusted EBITDA margin [1] of 31.1% Q1 2016 free cash flow of [1] 13.7M 1,380 Hp…
Company Profile Largest Vertically Integrated Compression Provider CSI Compressco LP (NASDAQ: CCLP) NASDAQ: CCLP Recent Unit Price [1] 8.19 45 years of growth supporting oil and gas industry infrastructure Market Capitalization [1]…
Investment Highlights Compression Services Shows Resiliency Throughout Industry Downturns Compared to Other OFS Compression services through fee-based service contracts provide predictable cash flow Stability in Asset Utilization…
Compression Overview Physical Requirement for Compression is Disassociated from the Price of Oil and Natural Gas Compression is required multiple times throughout the value-chain from production to consumption Diversity of customer…
Forecasted Demand and Production Growth Demand and Production Expected to Grow in the Near Term The U.S. produces 74 Bcf per day requiring 15 million horsepower [1] of compression to maintain current production levels New sources of…
Forecasted Infrastructure Demand and Growth Near and Long Term Infrastructure Demand Driving Continued Investment and Growth Shale gas supply and growth continues to be robust which will necessitate the need for infrastructure growth…
CCLP Business Model Vertically Integrated Flexibility for a Wide Range of Customer Compression Needs Fee-based services contracts utilizing CCLP Portion of Common management, inventory and compression services fleet equipment…
Compression Services Stability Most Profitable Product Line is also Most Stable Product Line Fleet Utilization and Composition [1] Fleet Application [1] Natural gas consumption in the U.S. continues to increase 0-100 Hp Compression…
Compression Services Geographic Diversity Operating in the Most Prolific Producing Basins in the U.S. Bakken Utica Niobrara HP Distribution by CCLP Region [1] International Monterey Marcellus 4% East 10% South Texas…
Equipment Sales and Manufacturing Scalable Manufacturing Proactively Rightsized for Current Market Conditions Experienced Over 5 million horsepower packaged Compression Over 10,000 compressor packages built Packager Internal design,…
Market Position Compression Services Competitive Landscape 4th Largest Revenue Generating Hp [3] Compression Services 4,000 Fleet by Hp 3,500 3,354 3,000 11% GCA Market share U.S. and Canada [1] Hp in thousands 2,500…
Growth Strategy Focused on Deploying More Efficient and Scalable Business Operations Ahead of Market Recovery Strategic geographic footprint expansion Strategic customer base expansion Acquisition Unwavering commitment to quality…
Financial Overview Predictable Cash Flow not as Susceptible to Commodity Price Downturns Compared to many Other OFS Revenues and compression services margins have been largely resilient despite 70% decline in activity since Q4 2014…
Distribution and Cash Management Business Model Generates Cash to Cover Operations and Distributions CCLP Cash Flow Distribution Coverage Ratio and Annualized Quarterly Distributions per Unit [3] 180 1.80x 3.50 160 Change in…
Covenants, Debt & Liquidity Pro Actively Reduced Distribution and Cut Costs to Protect Balance Sheet Minimal CapEx required to maintain cash flows Positive and predictable free cash flow generation No debt maturing before 2019…
Counterparty Risk Long Standing Relationships with Diverse, Strongly Rated Customer Base Length of Moodys / S&P Rank [1] Customer Type Relationship Credit Rating [2] 1 Very Large Public Independent E&P 15+ Years Baa2 / A 2 Large…
2016 Outlook Focused on Protecting Profits, Reducing Debt and Managing Liquidity in Challenging Market Proactively reduced annualized distributions by 25% [1] to position CCLP to reduce debt Reducing growth CapEx from 85M in 2015 to…
Appendix 2016 CSI Compressco LP 20
Non-GAAP Financial Measures CSI Compressco LP (the Partnership) includes in this presentation the non-GAAP financial measures Adjusted EBITDA, Adjusted EBITDA margin, enterprise value, distributable cash flow, distribution coverage ratio,…
Non-GAAP Reconciliations Distributable Cash Flow in millions Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Income (loss) before taxes 3.7 0.9 3.9 5.3 0.6 (0.1) 3.4 2.4 1.5 2.0 (152.6) (102.9) Depreciation…
Non-GAAP Reconciliations Adjusted EBITDA in millions Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Income (loss) before taxes 3.7 0.9 3.9 5.3 0.6 (0.1) 3.4 2.4 1.5 2.0 (152.6) (102.9) Depreciation and…
Non-GAAP Reconciliations Liquidity & Leverage Market Capitalization Reconciliation in millions Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 and Units in thousands CCLP Consolidated TTM EBITDA per Bank Agreement 136.7 138.5 135.9 129.0 122.4 Unit…
Loading...
