Benefits of AMID Combination Merger with AMID provides significant benefits to SXE unitholders Unitholders will have ownership in a combined entity with a strong balance sheet, capable of pursuing significantly larger growth…
Background and Context Q3 2016 SXE Default Issues For the quarter ended September 30, 2016, SXE was not in compliance with the financial covenant in its revolving credit agreement requiring it to maintain a consolidated total leverage…
Covenant Window The current Consolidated Total Leverage Ratio as of September 30, in Millions 2016A 2017(1) 2018E 2017 was 7.81x; by year-end 2018, the ratio is anticipated to be 7.0x SXE Adjusted EBITDA 69.5 68.9 72.2 Total Debt…
Going Concern Assessment Managements assessment of SXEs ability to continue as a Going Concern It is improbable that SXE could comply with its financial covenants as a stand-alone entity This would lead to an event of default under…
Strategic Options Two paths forward were evaluated by the Boards to bridge the gap: seek a significant equity infusion or pursue a sale/merger that could create additional unitholder value over time Sponsors not in a position to…
Offer Highlights SXE Offer Highlights Offer to publicly-owned common unitholders represents 11% premium to January 26, 2018 closing SXE unit price; implied SXE value is currently 2.42/unit Common, Subordinated, and Class B…
Appendix: GAAP to Non-GAAP Reconciliation Southcross Energy Partners, L.P. Reconciliation to Net Loss (in millions) (Unaudited) Year Ended December 31, 2016 2017(1) 2018E Net Loss (94.9) (89.8) (51.0) Add: Depreciation and…
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