Energy Prospectus Group Investor Presentation December 2013 0
Southcross Overview Traditional Gathering and Processing MLP South Texas and Eagle Ford Integrated business from gathering through NGL fractionation Proven ability to develop organic projects and complete acquisitions Low…
Southcross History 2009 2010 2013 2011 2012 Acquired core assets Expanded Gregory Won anchor Completed Completed processing plant contracts for Eagle Woodsboro expansion of Bonnie Ford expansion processing plant View…
Investment Highlights Strategically Located Asset Base Proven Ability to Top-Tier Develop Projects and Management Team Complete Acquisitions Southcross is a traditional MLP with an integrated midstream value chain and…
Senior Management Team Name / Title Years of Experience Previous Experience David Biegler 45+ Chairman & CEO Estrella Energy Chairman, President & CEO Chairman & Co-Founder Regency Gas Services Vice Chairman, President & COO TXU Corp…
Strategically Located Asset Base Eagle Ford Shale Expected to Comprise Over 25% of 100 Billion in 2013 US Lower 48 Spending Eagle Ford Production Forecast 7,000 Eagle Ford is the top 6,000 Production (MMcf/d) Eagle Ford…
Track Record of Growth Proven Ability to Develop Projects and Complete Acquisitions Pipeline Additions Plant Additions Acquisitions McMullen Pipeline (2011) Woodsboro Processing Plant (2012) Enterprise Alabama (2011) Moselle…
Integrated Midstream Value Chain Southcross Services Competitive Advantages Natural gas gathering, processing, treating, Location compression and transportation Proximate to prolific Eagle Ford shale production Proximate to Gulf…
Alabama & Mississippi Alabama Alabama Primarily fixed-fee compression and transportation Interconnect services Compressor 100% non-commodity price sensitive margins Deliveries to end-users and interstate pipelines Acquired…
Attractive Contract Structure and Customer Base Minimum volume commitments, acreage dedications and captive volumes provide a solid base of gas supply for Southcross South Texas processing volumes Other 11% Captive Volumes…
South Texas Contract Structure Typical Southcross Gas Supply Contract 2013 YTD Gross Margin Equity NGL barrels from Commodity Processing processing recoveries in Sensitive Uplift 18% Commodity excess of fixed producer payments…
Attractive Residue and Dry Gas Downstream Competitive Advantages of Dry Gas System Multiple gas sale outlets, including Southcross direct connections to industrial markets Diverse market outlets are an advantage in attracting…
Direct Access to Attractive NGL Markets Southcross has advantaged footprint in expanding Gulf Conroe Coast petrochemical infrastructure and NGL markets Southcross presence in end-use NGL markets provides attractive pricing…
Growing NGL Markets in US and for Export The U.S. is Now the Top Propane Exporter 70 YTD 2013 Propane Exports United States NGL Growth 60 (Millions of Bbls/d) 50 (MMbls) 40 30 Ethane Demand NGL Export Demand 20 661…
Lower Gulf Coast NGL Projects Present Opportunities Trafigura - November 14 , 2013 Press Release Trafigura spending 500 million to expand dock facilities at Corpus Christi Expansion to meet increasing demand for water access for Eagle…
Focused on Growth Focus on increasing profits and distributable cash flow Strengthen Expand Filling Building foundation downstream current new for future business processing capacity as growth capacity Eagle Ford grows 16
Growth Focus Filling Current Capacity Pipeline laterals to add rich gas supply Karnes extension McMullen lateral Downstream gas market Adding Corpus Christi markets for residue off-take Building New Capacity Western Eagle Ford…
Expansion of Southcross Eagle Ford Footprint PIPELINE COMPLETON NEW GAS SUPPLY New 9.5-mile,16-inch pipeline that extends New 3.5-mile pipeline addition to Southcross Bee Line pipeline further into Karnes County. McMullen County…
Western Eagle Ford Expansion Western Eagle Ford Production Oil and Gas Volumes from Eagle Ford Production Counties: Dimmit, Webb and Lasalle Counties: Dimmit, Webb and Lasalle 3,000 9,000 8,000 Gas Production (MMcf / Day)…
Third Quarter Performance Adjusted EBITDA (in Thousands) Processing Gas Volumes (MMBtu/d) Increase of 55% Increase of 9% NGL Barrels Sold per Day Realized NGL Prices per Gallon Increase of 19% Increase of 13% 20
2013 Adjusted EBITDA Growth(1) (MM) 16 14 12 10 8 6 4 2 0 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 E Adjusted EBITDA Guidance of 14 million for Q4 2013 (1) For definition of Adjusted EBITDA and a reconciliation of…
Comparative Yield Southcross trades at an attractive yield relative to other gathering and processing MLPs 9.55% 9.18% 7.85% 7.75% 7.30% Barclays G&P MLP Average Yield 6.04% 5.40% 5.23% 5.14% Southcross Crestwood…
Southcross Investment Summary Strategically located asset base leveraged to Eagle Ford shale growth Proven ability to develop projects and complete acquisitions Integrated midstream assets from gathering through NGLs in South…
Southcross Energy Partners Fact Sheet NYSE Ticker SXE Total Units 24.5 million units(1)(2) Unit Price 16.75(2) Market Capitalization 441 million(2) Debt at September 30, 2013 259 million Quarterly Distribution 0.40 per unit…
Appendix 25
Non-GAAP Measures We believe that Adjusted EBITDA is a widely accepted financial indicator of our operational performance and our ability to incur and service debt, fund capital expenditures and make distributions. Adjusted EBITDA is…
Reconciliation to Adjusted EBITDA (Dollars in Thousands) Three Months Ended, 12/31/12 3/31/13 6/30/13 9/30/13 Reconciliation of net loss to Adjusted EBITDA: Net Loss (8,622) (6,382) (6,192) (4,069) Add: Depreciation and amortization…
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