Arc Logistics Overview Arc Logistics is a fee-based, independent logistics service Pro Forma Partnership Structure provider formed by Lightfoot Capital Partners, LP (Lightfoot Capital) to acquire, operate and grow energy logistics…
Acquisition Overview
Transaction Summary Overview of the Acquisition Agreement JBBR Joint Venture Company Overview Arc Logistics has executed a definitive purchase agreement to Arc Logistics will form a 60/40 joint venture company acquire all of the…
The Joliet Terminal Summary Key Highlights Facility Site The Joliet Terminal, at closing, will be a multi-modal crude oil unloading terminal in Joliet, IL Rail unloading infrastructure Capable of unloading approximately 85,000…
JBBR Transaction Highlights The transaction is aligned with the Partnership's core business strategy, providing independent logistics services to new and existing customers while generating stable fee-based cash flow to support…
Acquisition Rationale Long-Term Demand for Heavy Crude Barrel Over the last three years, the Midwest crude oil market has faced major misalignment due to shifting crude oil production and refining demand dynamics PADD II supply /…
Pending Financing Plan The definitive acquisition agreement requires Arc Logistics to have committed financing in place The Partnerships financing plan is centered around maintaining what it believes to be a conservative balance sheet…
Illustrative Transaction Timeline In order to minimize the Partnership's exposure to construction and commissioning risk, as well as risk under JBBRs sole terminal services agreement, the Partnership will not be obligated to close the…
Growth-Oriented Partnership Growth from organic expansion of existing terminals, third-party acquisitions and development of customer base CPI escalators in various terminalling agreements Built in Throughput incentive structures to…
Contracted, Stable Cash Flow Profile The Partnerships contract portfolio generates cash flows through minimum service fees, while providing for upside exposure to throughput and ancillary service fees Typically contract with customers…
Operations Summary
Diversified Portfolio of Logistics Assets Flexible logistics assets serve as a critical link between supply and local demand Location Capacity Products Terminals The Partnership has increased its storage capacity by Baltimore, MD (1)…
Well Positioned Assets The Partnerships assets have multiple supply / receipt modes that provide flexibility to new and existing customers Buckeye Pipeline West Shore Pipeline Connections to major Colonial Pipeline U.S. pipeline…
Arc Logistics Financial Overview
Financial Flexibility The Partnership is positioned to achieve growth objectives Committed 275.0 million amended and restated credit facility to fund a portion of Arc Logistics 60% interest in the JBBR acquisition Capitalize on…
Proven and Resilient Business Model The Partnership has achieved a track record of organic and acquisitive growth in spite of volatile commodity markets and economic headwinds Shell Capacity (mmbbls) Throughput (mbbls/d) 7.0 6.7 80.0…
Investment Highlights Arc Logistics Partners LP is a fee-based, growth-oriented, independent logistics service provider Diversified and well positioned asset portfolio to capitalize on organic and third party growth opportunities…
Questions
Appendix
Non-GAAP Financial Measures The Partnership defines Adjusted EBITDA as net income before interest expense, income taxes and depreciation and amortization expense, as further adjusted for other non-cash charges and other charges that are…
Standalone Reconciliation to Adjusted EBITDA Year Ended December 31, YTD Ended 2011 2012 2013 09/30/13 09/30/14 Net Income 5,366 5,423 12,831 12,470 6,239 Income taxes 25 43 20 18 54 Interest expense 491 1,320 8,639 4,889 2,730…
Reconciliation to Adjusted EBITDA and DCF JBBR JVCO Pro Forma FYE YTD Ended JBBR Est. JBBR Est. Arc Logistics YTD (5) (10) (11) 12/31/13 09/30/13 09/30/14 Annualized 9 Months Adjustments 09/30/14 (6) Net Income 12,831 12,470…
Reconciliation to LTM Adjusted EBITDA Pro Forma FYE YTD Ended LTM JBBR JVCO Arc Logistics LTM (5) (9) 12/31/13 09/30/13 09/30/14 09/30/14 Annualized Adjustments 09/30/14 (6) Net Income 12,831 12,470 6,239 6,600 10,297 (6,212)…
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