Crossamerica Partners Lp · NYSE:CAPL
Crossamerica Partners Lp — Lehigh Gas Partners — Investor Presentation (May 2014)
20 slides from Crossamerica Partners Lp's investor presentation, May 21, 2014
Slide 1: Lehigh Gas Partners LP
+le 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 which may include, but are not limited to, statements regarding our plans, objectives, expectations and intentions and other stateme
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 owner Top 10 Distributor for(3): and lessee of real estate related to retail fuel distribution. Its Predecessor was founded in 1992 Focused on distributing fuels to and owning a
Slide 4: Investment Highlights
Investment Highlights • Stable Cash Flows from Rental Income and Wholesale Fuel Distribution • Established History of Completing and Integrating Acquisitions • Long-Term Relationships with Major Integrated Oil Companies and Refiners • Prime Real Estate Locations in Areas with High Traffic • Financia
Slide 5: Lehigh Gas Operations
Lehigh Gas Operations Qualifying MLP Income Industry Value Chain Non-Qualifying MLP Income Pipeline / Storage Wholesale Distribution (LGW) • Stable cash flow • Margin per gallon Wholesale Distributor • Limited commodity exposure • Multi-year contracts Retail Fuel Distribution (LGWS) Rental Income fr
Slide 6: Lehigh Gas Portfolio Overview
Lehigh Gas Portfolio Overview ) Sites Where Lehigh Gas Partners LP Supplies Wholesale Motor Fuels as of March 31, 2014 (1) (1) Pro forma for PMI acquisition 6
Slide 7: 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 • Increase motor fuel distribution business by expanding market share • Maintain strong relationships Shell Station Route 17, Hasbrouck He
Slide 8: Lehigh Gas Operating Model
Lehigh Gas Operating Model Master Limited Partnership Rental Income Lessee LGO(1) Dealer (affiliate of LGP) Wholesale Distribution Rental Income Commission Retail Distribution Agents Wholesale Distribution Independent Sub- Dealer Wholesaler Payment Terms / Payment for Fuel Discounts Motor Fuels Supp
Slide 9: Stable Cash Flows
Stable Cash Flows Wholesale Distribution Cash Flows Wholesale DistributionMargin Per Gallon (1)(2) • Lessee dealer agreements generally have 3 year initial terms Average Margin: $0.0654 and a remaining term of 2.5 years as of December 31, 2013 • LGO supply agreement had a 15-year initial term at the
Slide 10: Prime Real Estate Locations
Prime Real Estate Locations • We own and lease sites that provide LGP Controlled Sites by State(1) convenient fueling locations in areas of high consumer demand • We own or lease sites in fourteen states (1) Six of the states are in the top ten states for consumers of gasoline in the United States (
Slide 11: Branded Fuel Suppliers
Branded Fuel Suppliers • One of the ten largest independent distributors by LGP Fuel Distribution by Brand(1) volume in the U.S. for ExxonMobil, BP and Shell % of Total Motor Fuel branded fuels Supplier Distributed Also distribute Valero, Sunoco, Chevron and ExxonMobil 43% BP 25% Gulf-branded motor
Slide 12: Growth Through Acquisitions
Growth Through Acquisitions • Wholesale marketing remains a fragmented and local industry Acquisitions Since Our IPO(1) • Long history of successfully sourcing and Sites Acquired Total executing acquisitions (Fee & Consideration Acquisition Leasehold) ($ million) Predecessor completed over 12 acquis
Slide 13: PMI Acquisition Overview
PMI Acquisition Overview • The Partnership acquired PMI, a Roanoke, VA headquartered distributor of petroleum products and owner and operator of convenience stores, on April 30, 2014, for net total consideration of $61 million • The company operates 85 convenience stores under the Stop in Food Store
Slide 14: PMI Locations
PMI Locations Dealer Site (no real estate control) Company Operated Site 14
Slide 15: Atlas Acquisition Overview
Atlas Acquisition Overview • The Partnership has entered into a purchase agreement to purchase wholesale supply and certain other assets from Atlas Oil Company for total consideration of $36.1 million • Assets to be purchased primarily consist of: • 53 wholesale supply contracts • 11 fee or leasehol
Slide 16: Atlas Locations
Atlas Locations Commission Agent Independent Dealer Lessee Dealer Other 16
Slide 17: Capital Structure Overview
Capital Structure Overview • The Partnership completed in March the Capitalization syndications of a new $450 million credit Actual % of Book EBITDA facility ($ in millions) 3/31/2014 Cap Multiple • New facility provides for increased financial Cash 1.4 and operational flexibility and extends the te
Slide 18: Distributions
Distributions • Our primary business objective is to make Distributions Since Our IPO quarterly cash distributions to our unitholders and, over time, to increase our quarterly cash 4th 1st 2nd 3rd 4th 1st Quarter Quarter Quarter Quarter Quarter Quarter distributions 2012¹ 2013 2013 2013 2013 2014 •
Slide 19: Aligned Equity Ownership
Aligned Equity Ownership • Chairman and CEO Joe Topper owns approximately 39% of LGP (1) Board member John B. Reilly, III owns approximately 5% of LGP to bring combined ownership of the two of them to approximately 44%(1) Approximately 92% of ownership interest of Topper and Reilly is in the form of
Slide 20: Investment Highlights
Investment Highlights • Stable Cash Flows from Rental Income and Wholesale Fuel Distribution • Established History of Completing and Integrating Acquisitions • Long-Term Relationships with Major Integrated Oil Companies and Refiners • Prime Real Estate Locations in Areas with High Traffic • Financia
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