NYSE MKT: DAKP CORPORATE PRESENTATION JUNE 24, 2014 WWW.DAKOTAPLAINS.COM
COMPANY OVERVIEW Corporate: HQ Wayzata, MN 10 person staff Financial: market cap: 140m net debt: +2m NYSE MKT: DAKP Bakken rig activity June 2014 Frac Sand-by-Rail: transloading for UNIMIN Corp Pioneer Terminal: New…
RECENT HEADLINES UNIMIN frac sand operations commenced on June 12, 2014 Listed on NYSE MKT exchange; trading commenced on June 17, 2014 On June 19, 2014, Canadian class action related to Lac Megantic train incident dismissed Dakota…
PIONEER LOCATION & ACCESS avg. service radius 25 miles key competitors Bakken Heat Map January 2014 publication 5
NEW TOWN AREA WELLS MAY 2012 6
NEW TOWN AREA WELLS MAY 2014 7
PIONEER TERMINAL IN NEW TOWN, ND UNIMIN FRAC SAND TERMINAL FOUR LADDER TRACKS FOR FUTURE INBOUND 70 ACRE INDUSTRIAL YARD SPACE 10 TRUCK OFFLOAD STATIONS 180K BBLS STORAGE, INBOUND 270K PERMITTED PIPELINES DOUBLE LOOP TRACK…
PIONEER TERMINAL 9
RAIL INFRASTRUCTURE AND DESTINATIONS WEST COAST EAST COAST RAIL TERMINALS RAIL TERMINALS GULF COAST JEFFERSON RAIL TERMINALS 10
UNIMIN FRAC SAND TRANSLOADING Land is owned by Dakota Plains Holdings, Inc. LOOP TRACKS FOUR UNIMIN All CAPEX provided, and assets are owned, by Unimin LADDER TRACKS Operations for Dakota Plains sand joint venture commenced June 12,…
WHERE ARE WE Events Today Marketing margins remain low Repositioning DAKP Transition from passive to operating company Focused growth strategy Manage cash amidst poor marketing margins Lac Megantic legal recourse Manage response…
HISTORICAL MARKETING JV PERFORMANCE Right Scale Barrels marketed, bbl oil/month Net Income Margin, /bbl Left Scale 13
CONSOLIDATED BALANCE SHEET Dakota Plans Holdings, Inc. and Subsidiaries Consolidated Balance Sheet (million) 3/31/2013 3/31/2014 Pro-forma Actual Current Assets 15.1 * 16.0 * Property and Equipment 9.2 55.3 Investment in DPTS…
FORWARD STRATEGY Strategic Objectives 2014 Plan 1. Grow Pioneer 45 kbpd throughput 2. Focus on Transloading as core business Control costs (maintain efficiency) 3. Continue to strengthen balance sheet Approve Tank 3 (deferred by…
WILLISTON BASIN LONG-TERM RAIL PROPOSITION Brent/WTI spread /bbl General shape of future Goldman forecast North Dakota production NDPA forecast bbl/day Rail volume with constant % Pipeline Volume Sources:…
JOINT VENTURE CRUDE OIL VOLUMES 40 35 Millions of barrels per year 30 Trucking Planned volumes 25 Marketing 20 15 Third Party volumes 10 5 Transloading - 2010 2011 2012 2013 2014E 2014E revised 18
FINANCIAL OUTLOOK 2014 Transloading Marketing Trucking Sand Total Income/bbl from the JVs to DAKP, /bbl Conservative 0.55 0.30 0.25 1.10 High Side 0.55 1.35 0.25 2.15 Expected volume, bpd 45000 30000 16000 UPSIDE POTENTIAL Income…
CONCLUSIONS Pioneer Oil & Sand Terminal: state-of-the-art, heart of the Bakken/Three Forks Transloading is core business Short-term: increase Pioneer throughput and maintain safety & efficiency Long-term: grow Pioneer & beyond;…
APPENDIX
2013 REPOSITIONING OF DAKP Notwithstanding missed performance targets of volumes and EBITDA, due primarily to poor marketing margins, management has overcome challenges to reposition the company. Challenge Accomplishment Inability…
2014 QUARTERLY PERFORMANCE million 1Q Cash and Restricted Cash 13.45 Outstanding Promissory Notes 7.70 WFS 20M Credit Facility Utilization 7.50 REVENUES Transloading Revenue 5.46 Rental Income 0.03 Total Revenue 5.49 Cost of…
ADJUSTED EBITDA Dakota Plains Holdings, Inc. Reconciliation of Adjusted EBITDA March 31, 2014 Net Loss (445,399) Add Back: Income Tax Provision (Benefit) (514,885) Depreciation and Amortization 1,035,215 Share Based Compensation…
NORTH AMERICAN OIL PIPELINE INFRASTRUCTURE 25
NORTH DAKOTA RAIL TERMINALS Global/Basin ND April 2014 Stampede - CP Plains All American c. 70k bpd Production = 1,001k bpd 3rd Party OK Crestwood Partners Hess Ross BNSF Storage 200k Pipeline = 300k bpd Tioga - BNSF c. 65k bpd…
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