Usd Partners Lp · OTC:USDP
Usd Partners Lp — May 2015 NAPTP MLP Investor Conference
21 slides from Usd Partners Lp's conference presentation, May 19, 2015
Slide 1: May 2015 NAPTP MLP Investor Conference
May 2015 NAPTP MLP Investor Conference
Slide 2: Cautionary Statements
Cautionary Statements This presentation may contain forward-looking statements within the meaning of U.S. federal securities laws. These statements can be identified by the use of forward-looking terminology including “may,” “believe,” “will,” “expect,” “anticipate,” “estimate,” “continue,” or other
Slide 3: Proven Developer and Industry Innovator
• A pioneer of the hydrocarbon-by-rail concept, USD Group (“USDG”) has always focused on providing sustainable industry solutions • USDG has a proven history, having developed unit train-capable terminals with an aggregate capacity of over 725,000 bpd and safely and efficiently handled over 155 mill
Slide 4: Sustainable Advantages of Rail
Rail enables a number of advantages for both producers and refiners Sustainable Advantages of Rail A Long-Term, Sustainable Energy Infrastructure Solution Cost Speed Market Optionality Quality Preservation • Less upfront investment and maintenance capital required • Reduced financial commitments – 5
Slide 5: Industry Dynamics
Industry Dynamics • U.S. and Canadian crude oil production has increased significantly in recent years • Increased crude oil production will lead to logistics infrastructure opportunities across multiple products, including: – Refined petroleum products – Natural gas liquids (“NGLs”) – Frac sand – B
Slide 6: Significant Rail-Related Energy Opportunities
Developing Our Terminal Network • USDG believes there are substantial opportunities in the U.S. and Canada to develop a network of both origination and destination terminals for crude oil, refined products and NGLs • Current regional imbalances have created multiple unit train terminal opportunities
Slide 7: Hardisty Rail Terminal Expansion
Hardisty Rail Terminal Expansion • Initial expansion will add capacity for two additional unit trains per day and the ability to handle both WCS and heavier grades of crude oil from Western Canada • Currently in process of contracting, designing, engineering and permitting • Proceeding with long-lea
Slide 8: Overview of USD Partners LP
Overview of USD Partners LP • Closed IPO in October 2014 (NYSE: USDP) • Current Yield: ~7.8% • Market Capitalization: ~$310 million • Net Debt: ~$30 million • Q1 2015 Adjusted EBITDA: $10.3 million Note: Adjusted EBITDA is a non-GAAP measure. For a description of Adjusted EBITDA and a reconciliation
Slide 9: Strategically Located Assets: Hardisty Rail Terminal
Strategically Located Assets: Hardisty Rail Terminal • Origination terminal that commenced operations in June 2014 • Only unit train-capable crude-by-rail terminal located at the Hardisty hub, the primary location for storing and originating crude oil from Alberta’s Crude Oil Basin with over 20 mill
Slide 10: Strategically Located Assets: Ethanol Destination Terminals
West Colton Rail Terminal Blending Facilities Strategically Located Assets: Ethanol Destination Terminals Industry Infrastructure Needs Addressed: • Fragmented production • Pipelines disadvantaged and trucks uneconomical • Significant regional imbalances • Regulatory pressures regarding gasoline ble
Slide 11: A Strategic Asset: Our Railcar Fleet
• USDP provides customers access to railcars, as well as railcar-specific services related to the transportation of crude oil, ethanol and other liquid hydrocarbons, including scheduling, regulatory reporting, maintenance, etc. • We believe this access incentivizes customers to commit to USDP’s term
Slide 12: Our Strong Safety Record
USDG is committed to safe, efficient and reliable operations that comply with environmental and safety regulations • All USDP facilities meet or exceed all government health and safety regulations • USDG has been nationally recognized by the National Safety Council for its outstanding safety record
Slide 13: Stable and Predictable Cash Flows: Fee-Based Contracts
Stable and Predictable Cash Flows: Fee-Based Contracts Q1 2015 Adjusted EBITDA by Contract Type Terminalling Customers Note: Adjusted EBITDA is a non-GAAP measure. For a description of Adjusted EBITDA and a reconciliation to the most comparable measures calculated in accordance with GAAP, see the Ap
Slide 14: Strategic Flexibility: Multiple Growth Levers
Strategic Flexibility: Multiple Growth Levers USDG development projects High quality third party terminals and complementary midstream infrastructure Optimize and further improve profitability of existing asset base Drop Downs Acquisitions Organic Projects 14
Slide 15: Financial Flexibility
Financial Flexibility • As of 3/31/2015, USDP had ~$270 million of available liquidity to fund future growth initiatives and for general partnership purposes, including ~$43 million of cash on the balance sheet and ~$227 million of revolver capacity • As part of the IPO, USDP entered into a $300 mil
Slide 16: Relationship with USDG / ECP
• In September 2014, USDG successfully closed a partnership with Energy Capital Partners (“ECP”), an energy infrastructure-focused private equity firm with over $13 billion in capital commitments • As part of this transaction, ECP purchased a meaningful equity interest in USDG, who utilized the resu
Slide 17: Investment Highlights
Investment Highlights Relationship with USDG / ECP Strategically Located Assets Stable and Predictable Cash Flows Multiple Growth Levers Financial Flexibility 17
Slide 18: Appendix
Appendix 4 RS a\ USD Partners LP
Slide 19: USD Partners LP Structure & Overview
USD Partners LP Structure & Overview USD Group LLC (USDG) USD Partners GP LLC (GP & IDRs) Public Unitholders Hardisty Rail Terminal (Phase I) San Antonio Rail Terminal West Colton Rail Terminal Railcar Fleet Services Hardisty Expansions 100% Ownership Interest 100% Ownership Interest Assets Remainin
Slide 20: Non-GAAP Measures
Non-GAAP Measures We define Adjusted EBITDA as net income before depreciation and amortization, interest and other income, interest and other expense, unrealized gains and losses associated with derivative instruments, foreign currency transaction gains and losses, income taxes, non-cash expense rel
Slide 21: Adjusted EBITDA and DCF Reconciliation
Adjusted EBITDA and DCF Reconciliation 2015 2014 Net cash flows provided by operating activities 5,504$ (1,067)$ Add (deduct): Discontinued operations - 225 Depreciation (1,093) (126) Gain associated with derivative instruments 1,949 - Settlement of derivative contracts (894) - Amortization of defer
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