Southcross Overview Traditional Gathering and Processing MLP South Texas and Eagle Ford Integrated business from gathering through NGL fractionation Proven ability to grow organically and through acquisitions Low commodity price…
Southcross History 2009 2010 2011 2012 2013 2014 Acquired core Expanded Won anchor Completed Completed Initiated Webb assets Gregory contracts for Woodsboro expansion of Pipeline processing plant Eagle Ford processing plant…
Investment Highlights Strategically Located Asset Base Integrated Top-Tier Midstream Value Management Chain in South Team Texas Southcross is a traditional MLP with an integrated midstream value chain and assets leveraged…
Strategically Located Asset Base Eagle Ford Shale 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 liquids producing shale in…
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…
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…
2013 Performance Adjusted EBITDA (in Millions) 16 14 14 12 10 10 8 6 6 5 4 2 0 Q1 2013 Q2 2013 Q3 2013 Q4 2013 NGL Barrels Sold per Day Processed Natural Gas Volumes (MMBtu/d) 8
2014 Accomplishments Announced official launch of Webb Pipeline with signing of anchor shipper contract January Completed 149 million follow-on equity offering February Announced hiring of John Bonn as President and Chief…
Onyx Pipeline Acquisition Investment Highlights Opportunities for Synergies 40 million purchase price Ability to source gas at a cheaper rate Expected to be accretive to distributable cash flow in 2014 Ability to use Onyx pipeline…
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…
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 90,000 9,000 700,000 Gas Production (MMcf / Month)…
Expansion of Southcross Eagle Ford Footprint 13
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 Conroe Southcross has advantaged footprint in expanding Gulf 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 US 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 10…
Comparative Yield Southcross trades at an attractive yield relative to other gathering and processing MLPs 10.0 9.4% 9.0 8.0% 7.9% 8.0 7.4% 7.3% 7.2% 7.1% 7.0 Gathering & Processing MLP Median Yield 6.6%* 6.2% 5.9% 6.0 5.4%…
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 Fact Sheet NYSE Ticker SXE Total Units 33.7 million units(1)(2) Unit Price 16.95(2) Market Capitalization 571 million(2) Debt at February 28, 2014 119 million Quarterly Distribution 0.40 per unit (1.60 per unit on an…
Appendix 20
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…
South Texas Contract Structure Typical Southcross Gas Supply Contract 2013 Gross Margin Equity NGL barrels from Commodity Processing processing recoveries in Sensitive Uplift excess of fixed producer 24% Commodity payments…
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 Acreage Dedication 14%…
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 not…
Reconciliation to Adjusted EBITDA (Dollars in Thousands) Three Months Ended, 12/31/12 3/31/13 6/30/13 9/30/13 12/31/13 Reconciliation of net loss to Adjusted EBITDA: Net Loss (8,622) (6,382) (6,192) (4,069) 674 Add (deduct):…
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