Dakota Plains — Investor Presentation (March 2015)
22 slides from Dakota Plains's investor presentation, Mar 23, 2015
Slide 1: Corporate Presentation March 23, 2015
WWW.DAKOTAPLAINS.COM WWW.DAKOTAPLAINS.COM NYSE MKT: DAKP NYSE MKT: DAKP CORPORATE PRESENTATION MARCH 23, 2015 CORPORATE PRESENTATION MARCH 23, 2015
Slide 2: Forward Looking Statements
Statements made by representatives of Dakota Plains Holdings, Inc. (“Dakota Plains”or the “Company”) during the course of this presentation that are not historical f acts, are forward-looking statements. These statements are based on certain assumptions and expectatio ns made by the Company which re
Slide 3: Overview
»Corporate Overview: □ Operate the Pioneer Terminal in New Town, ND transloading outbound crude and inbound frac sand »Current Environment □ Evaluating demand for crude-by-rail vs. pipeline in lower commodity price environment »December 2014 Buyout of JV Partner: □ Created value in earnings per shar
Slide 4: Information
Dakota Plains Holdings, Inc. is an integrated midstream energy company operating the Pioneer Terminal with services that include outbound crude oil storage, logistics, and rail transportation and inbound frac sand logistics. The Pioneer Terminal is located in Mountrail County, North Dakota, where it
Slide 5: Location
5 Bakken Heat Map – November 14, 2014 publication Crude By Rail Terminals □One of 3 rail terminals not on BNSF □Only non-BNSF terminal that accepts third party volumes □Capacity for 5 inbound pipelines; two connected □Access to only Missouri River bridge crossing for 70 miles Location Highlights: LO
Slide 6: Business
6 BUSINESS Frac Sand Storage & Transloading Crude Oil Storage & Transloading Crude Oil Logistics & Transport Oil Outbound Oil Outbound Sand Inbound Sand Inbound
Slide 7: Transformation
TRANSFORMATIO N 2 Years Ago 2015 indirect investment in 350/50 JVs 0 operating control 26k b/d average throughput 4ladder tracks 0 crude oil storage $28m in debt at 12% 100%ownership and operating control >50k b/d average throughput 2loop tracks and 8ladder tracks 180k bbls crude oil storage; 270k b
Slide 8: Governance
8 GOVERNANCE ADAM KROLOFF CHAIRMAN OF THE BOARD GARY ALVORD LEAD INDEPENDENT DIRECTOR STEVEN BLANK INDEPENDENT DIRECTOR DAVID FELLON INDEPENDENT DIRECTOR CRAIG MCKENZIE CEO & EXECUTIVE DIRECTOR BOARD OF DIRECTORS GABE CLAYPOOL PRESIDENT & COO TIM BRADY CFO JIM THORNTON GENERAL COUNSEL MANAGEMENT Boa
Slide 9: Growth
99 GROWTH Phase 4 Phase 5 Phase 6 Phase 1 Phase 2 Phase 3 2010 2017E Tank #3 under construction; operational July 2015 $6m fully funded Loop Track #3 under evaluation $5m est. Tanks #4, #5, & loading expansion $25m est. Tank #6 & infrastructure $6m est. k b/d oil 20 40 80 160 Oil
Slide 10: Strategic Alternatives
STRATEGIC ALTERNATIVES Combination Acquisition Recapitalization Sale with other company or MLP of strategic & accretive assets (or company) of debt/equity/structure to buyer pending level of interest Phased expansions based on demand Oil Sand 2015 – 2017 Plan Opportunity Set Destination terminals Or
Slide 11: Rail vs. Pipe
11 RAIL VS. PIPE Sources: North Dakota Pipeline Authority (NDPA) with data through December 2014 and the Energy Information Administration (EIA) Brent/WTI spread $/bbl Brent/WTI spread $/bbl North Dakota production bbl/day Rail Volume 58% Pipeline Volume Pipeline Capacity
Slide 12: Four Ladder Tracks = 10,000 Feet
12 FOUR LADDER TRACKS = 10,000 FEET FOUR LADDER FOUR LADDER TRACKS = 10,000 TRACKS = 10,000 FEET FEET UNIMIN FRAC SAND TERMINAL UNIMIN FRAC SAND UNIMIN FRAC SAND TERMINAL TERMINAL 10 STATION RAIL LOADING 10 STATION RAIL LOADING 10 STATION RAIL LOADING 10 TRUCK OFFLOAD STATIONS 10 TRUCK 10 TRUCK OFFL
Slide 13: Operations - Oil
13 □Land is owned by Dakota Plains Holdings, Inc. □Commenced operations August 2010 □Generates revenue through fee/bbls □Double loop track, each 120 car capable □180,000 bbls of storage, third 90,000 bbls tank expected to be completed by Summer 2015 □Third loop track and incremental storage under co
Slide 14: Operations - Sand
14 □Land is owned Dakota Plains Holdings, Inc. □Commenced frac sand transloading operations June 2014 □Generates revenue through fee/ton paid by Unimin □8,500 feet of dedicated track space □8,000 tons of storage □Track expansion and additional storage under consideration OPERATIONS - SAND
Slide 15: 2015 Pioneer Transloading Plan
15 k tons per month of frac sand Actual k b/d of crude oil 2014 2015 PIONEER TRANSLOADING PLAN ToP vol = 49.1 kbpd
Slide 16: Priorities
PRIORITIES Guidance Delivery Tank #3 Construction Operations Efficiency Throughput Contracts Debt Syndication Strategic Alternatives new customers and renewals with current customers bring outsourced operations in-house 57.5 k b/d oil; 97.5 k tons/q sand; $23.4 m EBITDA commission by July 2015 Strat
Slide 17: Appendix
17 APPENDIX
Slide 18: Crude by Rail Terminals – End of 2014
18 CRUDE BY RAIL TERMINALS –END OF 2014 Dakota Plains Dakota Plains New Town -CP c. 80k bpd 3 rd Party OK Storage = 180k BOE Midstream Dickinson -BNSF c. 200k bpd Belle Fourche Pipe Storage ≈650k Global/Basin Zap -BNSF c. 60k bpd 3 rd Party OK Storage ≈ 140k Savage Trenton -BNSF c. 175K bpd 2-Gather
Slide 19: 4Q 2014 Results
4Q 2014 RESULTS 19 all results in $mm 4q 2014 4q 2013 Consolidated Net Income $ (0.9) $ 0.3 EBITDA $ 1.9 $ 0.1 Oil Transloading JV Revenue $ 7.7 $ 4.6 Income $ 2.5 $ 0.9 Sand Transloading JV (a) Revenue $ 0.6 Income $ 0.2 Discontinued Operations Income from Marketing JV $ 0.4 $ 1.4 Income from Truck
Slide 20: FY 2014 Results
FY 2014 RESULTS 20 all results in $mm FY 2014 FY 2013 Consolidated Net Income $ (3.3) $ (1.7) EBITDA $ 3.4 $ 2.4 Oil Transloading JV Revenue $ 26.8 $ 17.5 Income $ 6.7 $ 4.3 Sand Transloading JV (a) Revenue $ 1.4 Income $ 0.4 Discontinued Operations Income from Marketing JV $ ( 0.4) $ 3.0 Income fro
Slide 21: EBITDA Reconciliation - 4Q and FY 2014 Results
EBITDA RECONCILIATION-4Q AND FY 2014 RESULTS 21 2014 2013 2014 2013 2012 Net Income (Loss) 185,474$ 337,304$ 2,256,678$ (1,725,364)$ (2,000,670)$ Add Back: Income Tax Provision (Benefit) 287,155 228,000 (854,993) (1,054,000) (1,380,541) Depreciation and Amortization 1,103,066 47,623 4,332,900 179,54
Slide 22: EBITDA Reconciliation - 2015 Guidance
EBITDA RECONCILIATION-2015 GUIDANCE 22 (expressed in USD millions, unless otherwise indicated) Twelve Months Ended December 31, 2015 Net Income 8.5$ Add back: Interest Expense 7.6$ o/w Contingent payment interest 4.2$ Term loan and revolver interest 3.1$ Fees / amortization associated with loans 0.4
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