Chart Industries, Inc. · NYSE:GTLS
Chart Industries — Merger or Acquisition (May 2019)
13 slides from Chart Industries's merger presentation, May 9, 2019
Slide 1: Chart's Acquisition of Harsco's Air-X-Changers Business
Chart’s Acquisition of Harsco’s Air-X-Changers Business May 9, 2019 Exhibit 99.2
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements made in this presentation are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning the Company’s business plans, including statements regarding the
Slide 3: Agenda
Agenda INDUSTRY DYNAMICS DEAL ECONOMICS & SYNERGIES CHART BUSINESS UPDATE HARSCO AIR-X-CHANGERS UPDATED GUIDANCE STRATEGIC RATIONALE
Slide 4: Staying Focused on Our Strategy
Build upon our core competency of cryogenic engineering and product expertise in our industrial gas and energy applications Staying Focused on Our Strategy Acquisition of Hudson Products Acquisition of Skaff Resegmentation and Leadership Changes Purchase of VRV Sale of CAIRE Medical September 2017Ja
Slide 5: Harsco Air-X-Changer Products and Applications
Harsco Air-X-Changer Products and Applications ~$20mm of 2018 Revenue Replacement bundles, parts and service ~$10mm of 2018 Revenue Refineries, LNG processing and natural gas power facilities Upstream ~$95mm of 2018 Revenue E&P gathering and compressor stations Revenue & Gross Margin(1) Key Products
Slide 6: Our Focused Gas to Liquids Offering
Our Focused Gas to Liquids Offering E&C D&S Exploration, Production & Pipeline Processing/ Liquefaction Treatment Transportation Storage Lifecycle Services Value Proposition/ Application Re- gasification Industrial Gas Energy Engineered Tanks Engineered Tanks VJ Pipe Engineered Tanks VJ Pipe Trailer
Slide 7: Compression Drivers & Activity
Compression Drivers & Activity Associated gas from oil shale plays forecasted to drive ~50% of growth in US nat gas production Gas from shale oil has lower initial pressure vs. dry gas wells; requires more compression Compressors economically advantaged in gas lift High probability manufacturing-sty
Slide 8: What Are the Compression Players Saying?
What Are the Compression Players Saying? Compression Players Wall Street “Natural gas production serves as one of the best proxies for compression demand and our team models an increase of 7% in 2019 and 6% in 2020.” “Pricing for small horsepower gas lift units is increasing and has now surpassed a
Slide 9: Deal Economics & Synergies
Deal Economics & Synergies Continued Balance Sheet Strength Significant Cost Synergies Transaction Specifics $592M purchase price Expected $90M of tax benefits 9.9X forecasted 2019 EBITDA multiple Gross margin, operating margin and adjusted EPS accretive in year one Strong free cash flow generation
Slide 10: Future Segments 2019F Full Year Pro Forma Post Close
Future Segments 2019F Full Year Pro Forma Post Close of Harsco AXC Acquisition (1) EBITDA, which is defined as earnings before interest, tax, depreciation and amortization, is not a measure of financial performance under U.S. GAAP and should not be considered as an alternative to net income. The Com
Slide 11: Business Update Q2 2019
Business Update Q2 2019 Updates are in Bold Italics Industry Trends Increased petrochemical activity Big LNG operator activity Driftwood received DOE approval Venture Global Plaquemines final EIS issued Piedmont Natural Gas LNG facility FERC + on Transco’s N.East pipeline project Increasing activity
Slide 12: 2019 Updated Guidance, with AXC
2019 Updated Guidance, with AXC Prior Full Year 2019 (Pre Harsco AXC) Sales $1.29B - $1.34B Inclusive of 2019 portion of Calcasieu Pass and Golar Gimi Adjusted EPS (1) $2.70 - $3.05 Assumes 22-23% full year tax rate Capital Expenditures $35M - $40M Full Year 2019 (Post Harsco AXC) Sales $1.41B - $1.
Slide 13: 2020 Outlook
2020 Outlook Ref # Description Revenue ($M) Adjusted EPS(1) 1 2020 Base Outlook as of June 2018 $1,380 - $1,400 $3.60 - $3.70 2 Calcasieu Pass, Gimi, ACHX for Bechtel 125 0.90 - 1.00 3 Additional restructuring completed 0.15 - 0.20 4 +VRV, - CAIRE, +/- Other (45) – (25) (0.15) – (0.13) 5 Harsco AXC