Stabilis Solutions, Inc. · NASDAQ:SLNG
Stabilis Solutions — Stabilis Energy — Investor Presentation (December 2019)
27 slides from Stabilis Solutions's investor presentation, December 2019
Slide 1: Investor Presentation
Investor Presentation December 2019
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward‐Looking Statements This presentation contains “forward‐looking statements” which express our expectations concerning future events, plans, results and objectives. All statements based on future expectations rather than on historical facts are forward‐looking st
Slide 3: Stabilis at a Glance
Stabilis at a Glance Company Snapshot Business Highlights Liquefaction Plant Stabilis produces and supplies LNG to a diverse set of end markets offering a unique George West, TX portfolio of turnkey solutions, including LNG production, storage, transportation and logistics, fueling and delivery sy
Slide 4: Investment Highlights
Investment Highlights 1 Large and growing market opportunity as the global economy transitions away from traditional energy sources to cleaner and cheaper natural gas 2 Largest and most experienced small‐scale LNG operator in North America 3 Complete North American footprint offers customers a full
Slide 5: Natural Gas and Liquefied Natural Gas Basics
Natural Gas and Liquefied Natural Gas Basics LNG Enables Customers to Access Natural Gas Without Direct Pipeline Infrastructure Natural gas is abundant in North America and is used for utility, industrial, residential, commercial and transportation applications LNG is natural gas chilled LNG is no
Slide 6: Small-Scale Production Offers Large Opportunity for LNG
Small‐Scale Production Offers Large Opportunity for LNG Small‐Scale LNG offers a scalable method for replacing energy sources such as petroleum and coal What is Small‐Scale LNG Production? How Does Small‐Scale LNG Reach End‐Users? Small‐scale liquefaction plants are developed to service specific mar
Slide 7: LNG Adoption in North America Is Rapidly Accelerating
LNG Adoption in North America Is Rapidly Accelerating LOWER COST PRICE STABILITY SUPPLY STABILITY IMPROVED OPERATING REDUCED ENVIRONMENTAL PERFORMANCE EMISSIONS Attractive and Stable LNG Prices Catalyzing Demand ULSD, Propane & LNG Pricing(1) Projected North American Small‐Scale LNG Demand ($ per MM
Slide 8: Company History
Company History Since its inception, Stabilis has undergone a series of transformational initiatives and achieved key strategic partnerships to capitalize on the North American LNG market 2017 Purchases Flint 2003 Hills ownership of Prometheus Energy George West 2019 is founded facility 2018 Forms J
Slide 9: Stabilis Offers Industry-Leading Fuel Programs and Reach
Stabilis Offers Industry‐Leading Fuel Programs and Reach Production Distribution LNG LNG Transportation & Equipment Rental & Production Supply Network Logistics Field Service Support Agreements with carriers Comprehensive Lease, install and Build and operate for national distribution Overview North
Slide 10: Our Small-Scale Liquefier in George West, TX
Production Facility | George West, TX Our Small‐Scale Liquefier in George West, TX State‐of‐the‐art liquefaction facility with nameplate production capacity of 100,000+ LNG gallons per day Construction completed on time and on budget – incorporated over 500 changes from standard design during co
Slide 11: Extensive Distribution Network Across North America
Extensive Distribution Network Across North America Over 1.5 million gallons available daily Only LNG producer with complete North American footprint Mobile and flexible fleet addresses diverse geographic regions ( Canada x 2 ) George West, TX Plant LNG Supply Source Mexico x 1 11
Slide 12: Growing Customer Demand for LNG
Growing Customer Demand for LNG Total volume of Stabilis’ LNG production and distribution 5,000 5 ,0 0 0 4,500 4 ,5 0 0 LNG Gallons per Month (in thousands) 4,000 4 ,0 0 0 3,500 3 ,5 0 0 3,000 3 ,0 0 0 2,500 2 ,5 0 0 2,000 2 ,0 0 0 1,500 1 ,5 0 0 1,000 1 ,0 0 0 500 5 0 0 ‐ ‐ Jan'17 May'17 Sep'17 Jan
Slide 13: Proven Ability to Serve Customers Across Diverse End Markets
Proven Ability to Serve Customers Across Diverse End Markets Revenue Composition % by End Market 54% 33% 8% 3%2% Industrial & Oil & Gas Pipeline & Mining OTR Trucks Remote Power Utilities Key Metrics Since Inception 20,000+ 200M+ 200+ gallons deliveries made projects served delivered 13
Slide 14: Growth Opportunity: Mexican LNG Market
Growth Opportunity: Mexican LNG Market Mexico’s need for more reliable energy makes it an attractive market for LNG production and distribution Strong Fundamentals for Small‐Scale LNG in Mexico Mexico Natural Gas Supply Shortfall Expected to Increase Projected Mexican Natural Gas Demand by Sector vs
Slide 15: Mexico Market Fundamentals
Mexico Market Fundamentals Actual Equivalent Estimated LNG Potential Barrels LNG Gallons % Market Penetration LNG Gallons % per Day per Day Total Base High per Day Total Road Transport 370,200 29,679,339 56% 2.5% ‐ 5.0% 741,983 ‐ 1,483,967 27% ‐ 32% Power Generation 162,400 14,861,774 28% 5.9% ‐ 11.
Slide 16: Our Go-To Market Strategy in Mexico
Our Go‐To Market Strategy in Mexico Joint Venture with Grupo CLISA Diversenergy Acquisition August 2019 August 2019 Pursue investments in small‐scale LNG Enables Stabilis to rapidly expand LNG market development in Mexico with a distribution in Mexico locally established player Leading Position in M
Slide 17: Target 2020 Milestones
Target 2020 Milestones Complete construction of Monterrey liquefaction plant and commence operations Secure one additional LNG supply source in Mexico Increase utilization of existing plant (90%+) and rolling stock assets (60%+) Execute initial marine bunkering project 17
Slide 18: Industry-Leading Senior Management Team
Industry‐Leading Senior Management Team Jim Reddinger, Chief Executive Officer • Multiple leadership positions with Stabilis since co‐founding in 2013, including CFO, COO and CEO • Led construction of the George West facility as well as several acquisitions and partnerships Jim Aivalis, Chief Operat
Slide 19: Financial Overview
Financial Overview 19
Slide 20: Recent Financial Highlights
Recent Financial Highlights Commentary Key Financial Metrics Revenue ramp driven by organic growth 2017 2018 LTM 9/30/19 ($ in millions) across both our production and distribution businesses Revenue $20.4 $37.3 $45.4 Utilization of the George West liquefier (2) Revenue Growth % 82.6% 21.6% aver
Slide 21: Attractive Business Model
Attractive Business Model Pathway to Sustainable and Profitable Growth Increase utilization of George West facility – Demonstrated ability to produce above nameplate – Minimal maintenance expense/capex Improve asset utilization of transportation and logistics operations to enhance distribution R
Slide 22: Appendix
Appendix 22
Slide 23: Income Statement
Income Statement ($ in thousands, except per share data) Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Revenue LNG product $7,919 $6,914 $26,872 $21,812 Rental, service and other 2,595 1,087 7,712 4,754 Total Revenue $10,514 $8,001 $34,584 $26,566 Operating Exp
Slide 24: Balance Sheet
Balance Sheet ($ in thousands) September 30, December 31, September 30, December 31, 2019 2018 2019 2018 ASSETS LIABILITES Current Assets: Current Liabilities: Cash and cash equivalents $4,516 $1,247 Current portion of long‐term notes payable $1,000 $2,500 Accounts receivable, net 4,707 4,359 Curren
Slide 25: Cash Flow Statement
Cash Flow Statement ($ in thousands) Nine Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Cash Flow from Operating Activities: Cash Flow from Financing Activities: Net loss ($4,952) ($8,164) Proceeds on long‐term borrowings from related parties $5,000 $4,603 Adjustment
Slide 26: Capitalization
Capitalization Cash and Cash Equivalents (as of September 30, 2019) $4.5 million Debt (as of September 30, 2019) $7.9 million Secured Promissory Note with Related Party, 6.0%, Matures December 2022(1) $5.0 million Secured Term Note Payable with Chart Industries, 3.0% + LIBOR, Matures August 2024 $2.
Slide 27: Thank you.
Thank you. www.stabilisenergy.com
Stabilis Energy — Investor Presentation (December 2019) on 6ix