Agenda I. Strategic Initiatives Update II. Oklahoma Details III. San Antonio Details IV. Appendix www.emergelp.com PAGE 3
Competitive Strengths High Quality, Low Cost Strategically Operating Located Assets Structure Diversified Intrinsic Product Logistics Offering Advantages Trusted Reputation w/ Balanced Mix Customers and of Assets…
Accomplishing Our Strategic Initiatives Refinanced 1 Reduced Costs 3 Raised Equity 5 7 2018 Next Steps Balance Sheet Implemented lower Approximately 60mm Amended 75mm Ramp up San Antonio cost mining methods gross equity raised…
Expanding Footprint and Diversifying Product Mix The San Antonio and Oklahoma sites provide a more balanced footprint with a diversified mix of northern white and in-basin sands. Before San Antonio After San Antonio and Oklahoma and…
San Antonio Offers Attractive InBasin Model Local inbasin & regional sands have proven effective for certain completion designs and are now approximately 40% (1) of the frac sand market Delivered cost of sand to the Eagle Ford basin…
San Antonio New Plant Progress Old Production New Plant, New Plant, Circuit Existing Permit New Permit 4,000 Frac Sand Production 2,400 Cumulative Capacity (000 tons per year) 300 Timing Completed Q4 2017…
Oklahoma Offers Attractive InBasin Model Demand for inbasin sand in the MidContinent Basin (MidCon) is strong as indicated by several large operators in the area We are in the process of signing up customers under contract Delivered…
Comprehensive Logistics Platform Our sand facilities have direct access to four Class One rail lines and can reach all major shale plays in North America on single-line hauls. Logistics Highlights Wide Geographic Presence As of…
Diversified Sales by Basin We have diversified our sales across multiple basins in North America. Our logistics capabilities and access to multiple class I railroads provide attractive economics into several regions. Given this…
Deleveraging Our Balance Sheet The refinancing transactions announced on January 5th, 2018 dramatically improved our balance sheet and liquidity position. Refinancing Sources and Uses ( in mm) Change in Debt Balance and Liquidity (…
Financial Performance Estimates We experienced a strong recovery in volume and Adjusted EBITDA during 2017. For 2018, we are projecting further improvements in volume and Adjusted EBITDA based on the strong market demand and the…
Capitalizing on a Strong End Market: Robust Demand for Frac Sand Frac sand demand in 2017 surpassed historical peak levels, and further growth is expected for 2018 and 2019. Average proppant intensity per horizontal well continues to…
Agenda I. Strategic Initiatives Update II. Oklahoma Details III. San Antonio Details IV. Appendix www.emergelp.com PAGE 15
Favorable Location in MidContinent There are currently 137 rigs drilling in Oklahoma, of which half are located within a 75 mile radius of our site. Three legacy regional plants are currently operating in southern OK, but these sites…
MidContinent Market Research The Mid-Continent basin is an attractive drilling and growing region due to the stacked layers of oil and gas producing zones. MidCon Annual Frac Sand Demand (tons in millions) 12.0 MidCon demand was 7…
Agenda I. Strategic Initiatives Update II. Oklahoma Details III. San Antonio Details IV. Appendix www.emergelp.com PAGE 18
San Antonio Plant: Best in Class Business Model Early-mover advantage Take-or-pay contracts in place High quality reserves Large property and deposit In-basin location Dual rail service Minimal overburden All production…
Growing Demand for Frac Sand in Eagle Ford Basin While the Permian basin receives most of the attention, activity in the Eagle Ford basin, the second most active shale play, is gaining momentum with several notable operators in the…
San Antonio Plants Strategic Location Major drilling activity is clustered in South and West Texas Overview Most of the Eagle Ford activity is within 40100 miles of the plant for direct to wellhead trucking One of the closest…
Attractive Valuation for InBasin Sand Acquisition ( in mm's, except per EMES San ton metrics) Competitor A Competitor B Competitor C Antonio Site (1) (2) Announced Purchase Price 20 145 275 214 (3) (1) (4) Est. Capex for Plant…
Agenda I. Strategic Initiatives Update II. Oklahoma Details III. San Antonio Details IV. Appendix www.emergelp.com PAGE 23
Summary Quarterly Performance in thousands, except per ton 2018 2017 2016 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Continuing Operations: Total Tons Sold (tons in 000's) 1,589 1,503 1,410 1,480 1,392 1,251 826 493 Revenue 101,842 106,750 103,141…
Management and Board of Directors Years of Name Title Professional Experience Senior Management Team Rick Shearer Chief Executive Officer of EMES; CEO of SSS 44 Warren B. Bonham Vice President of EMES 33 Deborah Deibert Chief…
From Mine to Railcar 1) Extract 2) Wash 3) Dry 4) Ship www.emergelp.com PAGE 27
Asset Summary Proven Recoverable Plant Capacity 2017 Wet Production Wet Plant Location Reserves (1) (Thousands of Tons) (Thousands of Tons) New Auburn, WI 16.4 mm tons 2,000 1,276 Thompson Hills, WI 38.2 mm tons 1,600 1,394 FLS…
North American Sand Markets We have single-line access to four Class One railroads, which provide direct rail access to every major basin in North America Railroad Network BNSF CN/GTW CP/SOO CSX /NS KCS/KSCSM UP FWWR /…
Consolidated Net Income to Adjusted EBITDA Reconciliation in thousands 2018 2017 2016 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Net income 9,428 1,486 5,626 5,014 (6,082) (11,390) (20,775) 5,117 Depreciation, depletion and amortization 5,355 4,861…
Guidance: Net Income to Consolidated Adjusted EBITDA ( in millions) Full Year 2018 Net income 50.0 Interest expense, net 32.0 Depreciation, depletion, and amortization 23.0 Provision for income taxes 0.5 EBITDA 105.5 Equitybased…
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