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 4045% (1) of the frac sand market Delivered cost of sand to the Eagle Ford…
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…
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 13
Favorable Location in MidContinent There are currently 144 rigs drilling in Oklahoma, of which half are located within a 75 mile radius of our site. New plants under construction are further west than our facility. Three legacy…
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) 14.0 13.4 MidCon demand…
Agenda I. Strategic Initiatives Update II. Oklahoma Details III. San Antonio Details IV. Appendix www.emergelp.com PAGE 16
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 Minimal overburden All production operations located on site…
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 21
Summary Quarterly Performance in thousands, except per ton 2018 2017 2016 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Continuing Operations: Total Tons Sold (tons in 000's) 1,073 1,589 1,503 1,410 1,480 1,392 1,251 826 Revenue 62,961 101,842 106,750…
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…
MLP Structure Historical Earned Distributions per Unit 1.50 1.381.41 1.25 1.131.17 1.00 1.00 1.00 0.86 (1) 0.70 0.67 0.75 0.50 0.25 (1) Fullquarter 0.00 results based on pro 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q…
From Mine to Railcar 1) Extract 2) Wash 3) Dry 4) Ship www.emergelp.com PAGE 25
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 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Net income (3,853) 9,428 1,486 5,626 5,014 (6,082) (11,390) (20,775) Depreciation, depletion and amortization 5,316 5,355…
2018 Guidance: Net Income to Consolidated Adjusted EBITDA ( in millions) Low End 2018 High End 2018 Net income (4.5) 10.0 Interest expense, net 31.6 32.0 Depreciation, depletion, and amortization 20.4 20.5 Provision for income…
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