Citi MLP and Midstream Infrastructure Conference Investor Presentation August 20-21, 2014 www.oiltankingpartners.com
Key Investment Highlights Prime location in the Gulf Coast Strategically located Superior deep water access and dock infrastructure assets with unmatched connectivity Pipeline connectivity to 23 key facilities Truck and rail unloading…
Overview of Our Sponsor Oiltanking Group is the worlds second largest independent storage provider for crude oil, refined products, liquid chemicals and gases Marquard & Bahls Privately owned for more than 65 years Over 9,000…
Business Overview We are a critical logistic link between the upstream and downstream segments of the crude oil, chemical and natural gas liquids industries Terminaling, storage and transportation services for crude oil, refined…
Overview of Our Assets Our Houston and Beaumont terminals are critical Gulf Coast hubs Houston Area Beaumont Area Houston Beaumont Total Pro forma storage capacity through 2016 (MMBbls) 23.2(1) 11.7(2) 34.9 Additional expansion…
Stable Cash Flow Profile Our 100% fee-based business model delivers stability and growth 5% Storage Service Fees 41% LTM Total Revenues Throughput Revenue Fees (as of 6/30/2014) 54% 247.7 million Ancillary Services Fees…
Stability of Cash Flows Our business model has delivered steady growth regardless of market conditions Revenue (million) Terminal Throughput (kbpd) 250.0 247.7 CAGR = 21.7% 1,400 211.0 1,256 200.0 1,064 1,050 150.0 135.5 785…
Growth In All Service Lines The Partnership has realized strong growth in all service lines (Revenue millions) CAGR = 21.7% Strong growth in core storage business drives opportunities in other service lines Throughput…
Diversified Revenue Mix Our long-term relationships with high-quality customers are a key asset Average contract life 7 years with excellent re-contracting history More than 80% of our customers are investment grade Average length of…
Major Macro Themes Impacting OILT OILT assets stand to benefit from trends in North American petroleum flows Increasing Shale Surging domestic light production growth Production New crudes and changing flows Substantial need for…
Changing Crude Logistics Pipeline capacity into the Gulf coast increased by 775 MBPD through 2013, with another 1,875 MBPD projected increase in 2014 www.oiltankingpartners.com 12
Crude Oil Expansion Footprint Crossroads Appelt III (1) Future Oiltanking Pipelines (3.5 MMBbls) Existing Oiltanking Pipelines Pipelines Appelt I (3.2 MMBbls) Appelt II (3.3 MMBbls) Oiltanking Houston (13.2…
Crude Oil Expansion Projects Project Appelt II Appelt III 70 million project investment 3.3 MMBbls of new crude storage capacity 101 million project investment at OTH on land adjacent to Appelt I 3.5 MMBbls of storage and a new…
Port of Houston Property Potential Entered in to lease for 58 acres in Q1 2014 Lease term ends October 2038 Secured an additional 30 acres for Enterprise three year term Multiple Options for Growth Up to 5 MMbbls of storage with…
Crossroads Pipeline Projects 24-inch and 36-inch pipelines connecting the Houston terminal and Crossroads Junction provide unmatched access for our customers 24-inch Pipeline (Northbound) Will provide additional connectivity between OTH…
LPG Export Agreement and Dock Expansion New 50-year contract beginning February 1, 2014 Monthly Loading Capacity (MMBbls) PreMarch March 2013 Q1 2015 EOY 2015 2013 Expansion 18.0 16.0 16.0 14.0 12.0 10.0 9.0 7.5 8.0 6.0…
Ethane Export Option Enterprise Products Partners, L.P. has announced its intention to build an ethane export terminal at Morgans Point on the Houston Ship Channel and is expected to be operational beginning Q3 2016 Enterprise has…
Beaumont Crude Project Project to include up to 6.2 MMBbls of crude storage, and two new deep water docks Modeled after Houston connectivity, optionality, and reliability 7-10 year contracts Connectivity Plan: Inbound: TransCanada,…
Beaumont Property Beaumont Waterfront 4.0 MMBbls of Storage 5-6 MMBbls of Expansion Land Beaumont Remote 1.5 MMBbls of Storage 20 MMBbls of Expansion Land www.oiltankingpartners.com 24
Strategic Growth www.oiltankingpartners.com 25
Growth Strategy We are keenly focused on delivering long-term value for our unitholders and stakeholders Capitalizing on our premier footprint Waterfront Organic Pipelines Opportunities Storage capacity Rail Processing Other…
Additional Avenues of Organic Growth Our locations and connectivity provide an attractive platform for additional growth Current Trends OILT Growth Initiatives Fewer import cargos Potential further waterfront expansions Crude…
Financials www.oiltankingpartners.com 28
Funding Our Growth Oiltankings strong balance sheet and financial flexibility supports our exciting growth plan More than 300 million of liquidity to fund growth Ample Conservatively levered with net debt / EBITDA less than 1.1x at…
Proven Track Record of Growth Tank Capacity at Year End (MMBbls) EBITDA (mm)(1) CAGR = 8.3% CAGR = 31.5% 30.0 180.0 172.4 28.7 25.6 150.0 145.3 24.0 21.7 120.0 17.3 17.7 18.0 16.8 16.4 15.2 90.0 80.6 12.0 65.3 67.5…
Strong Distribution Growth Evaluate distribution each quarter, striking a balance between sustained distribution growth and retaining excess coverage as low-cost source of equity OILTs long-term distribution coverage ratio target is…
Financial Data Net income and adjusted EBITDA continue to see record growth, while maintaining conservative leverage (in thousands) Years Ended December 31, 2008 2009 2010 2011 2012 2013 LTM Reconciliation of Adjusted EBITDA from…
Current Summary Organizational Structure Marquard & Bahls AG Oiltanking Holding Americas 15,899,802 OILT Common Units Public Unitholders 38,899,802 OILT Subordinated Units 28,200,000 Common Units Incentive Distribution…
Oiltanking Partners, L.P. Doing the Common Uncommonly Well www.oiltankingpartners.com 34
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