Agenda I. Strategic Initiatives Update II. San Antonio Transaction Recap III. Appendix www.emergelp.com PAGE 3
Competitive Strengths High Quality, Technology Strategically Driven New Located Assets Products Diversified Intrinsic Product Logistics Offering Advantages Trusted Reputation w/ Low Cost Customers and Operating…
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 site provides a more balanced footprint with a diversified mix of northern white and inbasin sands. Before San Antonio After San Antonio Reserves(1) Inbasin…
San Antonio Offers Attractive InBasin Model Local inbasin & regional sands have proven effective for certain completion designs and are now approximately 3540% of the frac sand market Delivered cost of sand to the Eagle Ford basin is…
The New San Antonio Plant Is On Track 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…
Building a 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…
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. San Antonio Transaction Recap III. Appendix www.emergelp.com PAGE 13
Overview of the San Antonio Site Located 25 miles south of San Antonio, TX 650 total owned acres (surface and sand mineral Property Details rights) Estimated over 80 million(1) tons of sand resources Old wet plant: 600k tpy New…
San Antonio Plant: Best in Class Business Model High quality reserves Large property and deposit In-basin location Dual rail service Minimal overburden All production operations located on site (avoids trucking) Owned reserves…
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…
Industrial Sands End Market Central Texas (San Antonio and Austin metro areas) is one of the fastest growing regions in the country Approximately 4.5 million residents estimated as of 2016 Our San Antonio plant currently…
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. San Antonio Transaction Recap III. Appendix www.emergelp.com PAGE 20
Summary Quarterly Performance in thousands, except per ton 2018 2017 2016 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Continuing Operations: Total Tons Sold (tons in 000's) 1,503 1,410 1,480 1,392 1,251 826 493 399 Revenue 106,750 103,141 103,215 82,602…
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 24
Asset Summary Wet Plant Location Proven Recoverable Plant Capacity 2017 Wet Production 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 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Net income 1,486 5,626 5,014 (6,082) (11,390) (20,775) 5,117 (22,897) Depreciation, depletion and amortization 4,861 5,490…
Guidance: Net Income to Consolidated Adjusted EBITDA ( in millions) Full Year 2018 Net income 60.0 Interest expense, net 34.0 Depreciation, depletion, and amortization 23.5 Provision for income taxes 0.6 EBITDA 118.1 Equitybased…
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