Crossamerica Partners Lp · NYSE:CAPL
Crossamerica Partners Lp — Lehigh Gas Partners — Investor Presentation (September 2013)
21 slides from Crossamerica Partners Lp's investor presentation, Sep 24, 2013
Slide 1: Lehigh Gas Partners LP
+16 LEHIGH GAS PARTNERS LP
Slide 2: Forward Looking and Cautionary Statements
Forward Looking and Cautionary Statements This presentation and oral statements made regarding the subjects of this presentation may contain forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, or the Reform Act, which may include, but are not limit
Slide 3: Lehigh Gas Overview
Lehigh Gas Overview • Lehigh Gas Partners LP (“LGP” or “Lehigh Gas”) is a leading wholesale distributor of motor fuels and Top 10 Distributor for (3): owner and lessee of real estate related to retail fuel distribution. Its Predecessor was founded in 1992 Focused on distributing fuels to and owning
Slide 4: Lehigh Gas Portfolio Overview
Lehigh Gas Portfolio Overview ) LGP Supplied Dunmore Acquisition Express Lane Acquisition (1) As of June 30 2013. Does not include the Rogers or Rocky Top portfolios. 4
Slide 5: Lehigh Gas Operations
Lehigh Gas Operations Qualified MLP Income Industry Value Chain Non-Qualifying Income Pipeline / Storage Wholesale Distribution • Stable cash flow • Margin per gallon Wholesale Distributor • Limited commodity exposure • Multi-year contracts Retail Distribution Rental Income (Realty) Concessions • St
Slide 6: Investment Highlights
Investment Highlights • Stable Cash Flows from Rental Income and Wholesale Fuel Distribution • Prime Real Estate Locations in Areas with High Traffic • Long-Term Relationships with Major Integrated Oil Companies and Refiners • Established History of Completing and Integrating Acquisitions • Aligned
Slide 7: U.S. Motor Fuel Consumption
U.S. Motor Fuel Consumption (1) (2) • Gasoline consumption in the U.S. has proven to be stable, Motor Fuel Consumption by PADD with growth in 52 of the last 66 years • Since 1985 gasoline consumption has increased from 2.5 to 3.2 billion barrels per year in 2012 (CAGR of 1%) Down years driven by his
Slide 8: Wholesale Industry Overview
Wholesale Industry Overview Wholesale Business Classes of Trade • Wholesale motor fuel distribution • Lessee dealers – Wholesale distributor consists of sales of branded and owns or leases sites and leases or unbranded gasoline and diesel to retail subleases sites to the lessee dealer gas station op
Slide 9: Lehigh Gas Strategy
Lehigh Gas Strategy • Own or lease sites in prime locations and seek to enhance cash flow • Expand within and beyond core geographic markets through acquisitions • Serve as a preferred distributor and dedicated supplier • Increase motor fuel distribution business by expanding Shell Station market sh
Slide 10: Lehigh Gas Operating Model
Lehigh Gas Operating Model Master Limited Partnership Lessee Independent Wholesale Dealer Dealer Distribution and Rental Income Distribution / Rental Agreement LGO(1) Sub- Wholesaler (affiliate of LGP) Payment Terms / Motor Fuels Payment for Fuel Discounts Suppliers Independent Motor Fuels Transport
Slide 11: Stable Cash Flows: Wholesale Distribution
Stable Cash Flows: Wholesale Distribution Stable cash flows from long-term wholesale motor fuel distribution contracts • Our supply agreements with independent dealers generally have 10-year terms • Lessee dealers generally have 3-year terms • LGO generally has a 15-year term (1)(2) (2)(3) Whole Dis
Slide 12: Stable Cash Flows: Rental Income
Stable Cash Flows: Rental Income Stable cash flows from rental income associated with long-term leases • Lease agreements with lessee dealers generally have 3-year terms and had an average of 2.8 years remaining as of June 30, 2013 • LGO agreements have 15-year terms and had an average of 14.4 years
Slide 13: Prime Real Estate Locations
Prime Real Estate Locations • We derive rental income from sites we own or lease that provide convenient fueling locations primarily in areas that are densely populated • We own or lease sites in nine states (1) Over 60% of US gasoline consumption is in the Midwest and Northeast (2) • Limited availa
Slide 14: Long-Term Relationships
Long-Term Relationships • One of the ten largest independent distributors by LGP Fuel Distribution by Brand (1) volume in the U.S. for Exxon, Mobil, and BP branded fuels % of Suppliers Supplier Total Since: Also distribute Shell, Valero, Sunoco, ExxonMobil 42% 2002 BP 26% 2009 Chevron and Gulf-brand
Slide 15: Established History of Acquisitions
Established History of Acquisitions • We have grown primarily through acquisitions Since 2004, LGP and our Predecessor, have grown the business from 9 owned sites to 210 owned sites, as of June 30, 2013 We have completed twelve acquisitions that included 10+ sites per transaction • Majority of our s
Slide 16: Overview of Rogers and Rocky Top Acquisitions
Overview of Rogers and Rocky Top Acquisitions • Announced two acquisitions during the third quarter of 2013 Rogers Petroleum (“Rogers”) – a 17 site portfolio in Tri-Cities, TN Region Rocky Top Markets, LLC (“Rocky Top”) – a 34 site portfolio in Knoxville, TN Region • Rogers portfolio purchase price
Slide 17: Risk Management Overview
Risk Management Overview • Liability on portfolio at IPO retained by predecessor entities • Rigorous diligence process to identify any issues prior to acquisition • Escrow funds at closing for identified liabilities Environmental • Purchase insurance to protect against cost overruns for known liabil
Slide 18: Aligned Equity Ownership
Aligned Equity Ownership • Topper Group and LGC(1) retain approximately 54.1% ownership in LGP 92.3% of units owned by Topper Group and LGC(1) are subordinated • Lehigh Gas GP (the general partner) has a non-economic general partner interest in Lehigh • 45.9% of LGP held by public Topper Group / LGC
Slide 19: Historical Performance
Historical Performance Revenue (1) EBITDA(1)(2) $50.0 $45.6 $42.7 $40.0 $34.4 $27.9 $26.9 $30.0 $20.0 $10.0 $- 2009 2010 2011 2011 PF PF 2012 LGP Predecessor LGP Predecessor Fuel Gross Profit(1) LGP Predecessor (1) Based on the December 31, 2012 pro forma as presented on Form 8-K filed with the SEC
Slide 20: Second Quarter Overview
Second Quarter Overview • Distributed 160.7 million gallons, a 4.4% Summary Second Quarter Metrics increase relative to 2012 (Dollars in thousands, except as noted) • Generated gross profit from fuel sales of $12 Fuel Gross Profit $ 11,986 million, a 12.1% increase relative to 2012 Gallons Distribut
Slide 21: Investment Highlights
Investment Highlights • Stable Cash Flows from Rental Income and Wholesale Fuel Distribution • Prime Real Estate Locations in Areas with High Traffic • Long-Term Relationships with Major Integrated Oil Companies and Refiners • Established History of Completing and Integrating Acquisitions • Aligned
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