Emerge Energy Services LP
Investor Presentation
January 2016
www.emergelp.com
PAGE 1
Forward Looking Statements & Non-GAAP Measures
This presentation contains forward-looking statements. These statements can be identified by the use of forward-looking terminology including “may,”
“believe,” “will,” “expect,” “anticipate,” or “estimate.” These forward-looking statements involve risks and uncertainties, and there can be no assurance that
actual results will not differ materially from those expected by management of Emerge Energy Services LP. When considering these forward-looking
statements, you should keep in mind the risk factors and other cautionary statements in our annual report on Form 10-K filed with the SEC. The risk factors
and other factors noted in our Form 10-K could cause our actual results to differ materially from those contained in any forward-looking statement. Except as
required by law, Emerge Energy Services LP does not undertake any obligation to update or revise such forward-looking statements to reflect events or
circumstances that occur after the date hereof.
In this presentation, we present Adjusted EBITDA, a non-GAAP financial measure. Adjusted EBITDA is used as a supplemental financial measure by our
management and external users of our financial statements, such as investors and commercial banks, to assess the financial performance of our assets
without regard to the impact of financing methods, capital structure or historical cost basis of our assets; the viability of capital expenditure projects and the
overall rates of return on alternative investment opportunities; our liquidity position and the ability of our assets to generate cash sufficient to make debt
payments and to make distributions; and our operating performance as compared to those of other companies in our industry without regard to the impact of
financing methods and capital structure. We believe that Adjusted EBITDA provides useful information to investors because, when viewed with our GAAP
results and the accompanying reconciliations, it provides a more complete understanding of our performance than GAAP results alone. We also believe that
external users of our financial statements benefit from having access to the same financial measures that management uses in evaluating the results of our
business.
We define Adjusted EBITDA generally as: net income plus interest expense, income tax expense, depreciation, depletion and amortization expense, noncash charges and losses that are unusual or non-recurring less interest income, income tax benefits and gains that are unusual or non-recurring. We report
Adjusted EBITDA (which as defined includes certain other adjustments, none of which impacted the calculation of Adjusted EBITDA herein) to our lenders
under our revolving credit facility in determining our compliance with the interest coverage ratio test and certain senior consolidated indebtedness to Adjusted
EBITDA tests thereunder. Adjusted EBITDA should not be considered as an alternative to net income, operating income, cash flow from operating activities
or any other measure of financial performance presented in accordance with GAAP. Moreover, our Adjusted EBITDA as presented may not be comparable to
similarly titled measures of other companies. A reconciliation of Adjusted EBITDA to net income, the most directly comparable GAAP financial measure, is
included on page 33.
www.emergelp.com
PAGE 2
Competitive Strengths
High Quality, Strategically Located Assets
Stable
Cash Flow
Significant Organic Growth Capacity
Strong Reputation w/ Customers and Suppliers
www.emergelp.com
Intrinsic Logistics Advantages
Low Cost Operating Structure
Experienced Management Team
PAGE 3
Strengthening the Partnership
Formed by the sand and fuel segments, the Emerge Energy Services partnership provides significant
EBITDA scale and balance, while also enhancing diversification benefits as the market evolves.
Sand
•
•
•
•
Leading manufacturer of Northern
White silica sand, ~ 99% sold as a
proppant for hydraulic fracturing
Diversified customer base with an
attractive mix of contracts
Four sand plants backed by several
mines with high quality reserves
Direct rail access on four
Class I railroads, with numerous
logistics and transload solutions
www.emergelp.com
Fuel
•
Primarily consists of processing &
selling transportation mixture
(“transmix”)
•
Also includes wholesale, terminal, and
biodiesel operations
•
Operations in Dallas / Fort Worth,
Texas and Birmingham, Alabama
•
Located adjacent to major common
carrier pipelines
PAGE 4
Strong Track Record of Growth
Over the past three years, EMES has grown sand and fuel volumes at a substantial rate; consequently,
total adjusted EBITDA has increased by a 142% CAGR from 2011 to 2014.
Volume Growth: 2011 - 2014
Sand and Fuel Sold
Adjusted EBITDA Growth: 2011 - 2014
Sand, Fuel, and Total
300
4.0
264 3.5
224 3.0
176 2.5
2.7 111 200
150
100
1.2 1.0
0.5
50
0.4 $100.0
$85.2 $80.0
$66.6 $60.0
$40.0
$33.8 ‐
2012
Tons of Sand Sold
2013
2014
Refined Fuels Sold
$38.6 $23.1 $20.0
$3.9 $5.4 ‐
2011
$120.0
250
2.0
1.5
$131.9 $121.9 ($ in millions)
4.3 Tons of Sand Sold (millions)
4.5
$140.0
Fuel Gallons (millions)
5.0
$9.3 $18.5 $4.9 $‐
2011
Sand
2012
Fuel
2013
Total (1)
2014
(1) Sum of Sand + Fuel does not equal total due to corporate costs beginning in 2013
www.emergelp.com
PAGE 5
3Q15 Summary Performance
The energy market downturn continued to apply pressure to the frac sand market during the third
quarter. Additionally, the volatility in wholesale fuel prices and weaker volumes contributed to a loss in
the Fuel Segment.
3Q15 Actuals vs. 3Q14 and 2Q15
3Q
$ in millions, except per ton
Variance
2015
2014
Value
2Q
%
2015
Variance
Value
%
Sand Segment:
Tons Sold (tons in 000s)
799
1,146
(347)
(30.3%)
861
$ 60.7
$ 95.8
$ (35.1)
(36.6%)
$ 68.1
$
$ 75.91
$ 83.58
$ (7.67)
(9.2%)
$
4.2
$ 36.1
$ (31.9)
$ 5.28
$ 31.53
64.6
Revenue
Adjusted EBITDA
Revenue
Average Revenue per Ton
Adjusted EBITDA
EBITDA per Ton
(62)
(7.2%)
(7.5)
(11.0%)
$ 79.14
$ (3.23)
(4.1%)
(88.3%)
$ 13.9
$
(9.7)
(69.6%)
$ (26.25)
(83.2%)
$ 16.19
$(10.91)
(67.4%)
67.4
(2.9)
(4.3%)
63.4
$ 115.7
$ 200.6
$ (84.9)
(42.3%)
$ 132.7
$ (17.1)
$
$
$
$
$
Fuel Segment:
Volume of Refined Fuel Sold (gallons in millions)
(1.9)
3.1
(5.0)
nmf
5.4
1.2
1.9%
(12.9%)
(7.3)
nmf
Consolidated:
Revenue
$ 176.3
$ 296.3
$ (120.0)
(40.5%)
$ 200.9
$ (24.5)
(12.2%)
Adjusted EBITDA
$
$ 37.4
$ (37.8)
nmf
$ 17.0
$ (17.3)
nmf
www.emergelp.com
(0.3)
PAGE 6
Capitalization Table
EMES has a strong balance sheet, which provides financial stability in the current difficult market
conditions, and the Company’s $350 million revolver has availability of $63.3 million as of 3Q15 end.
EMES Capitalization ($ in millions)
2Q15A
Cash (Unrestricted)
Revolving Line of Credit (Matures 6/27/2019)
(1)
Other Long-Term Debt / Capital Lease
Total Debt
Debt / LTM Adjusted EBITDA
LTM Adjusted EBITDA / LTM Interest Expense
(1)
www.emergelp.com
3Q15A
$3.2
$5.9
$253.9
$277.4
12.8
11.3
$266.7
$288.7
2.3x
3.6x
12.4x
7.1x
(3)
Carrying value of $272.9mm at 3Q15, net of deferred financing costs
PAGE 7
Favorable MLP Structure
Strong Distributions per Unit Growth
$1.50
$1.38
$1.25
$1.13
$1.00
$1.00
$0.75
$1.41
$1.17
$1.00
$0.86
$0.70
(1)
$0.67
$0.50
$0.25
‐
$0.00
2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015
(1) Full‐quarter results based on pro rated distribution of $0.37
Simplified MLP Structure
•
•
– No Incentive Distribution Rights (IDRs)
– All units are Common Units
– No Minimum Quarterly Distributions (MQD)
– Non-economic General Partner
Our Sponsor, Insight Equity, which owns 30% of the Common Units, has fully aligned its financial interests with our
Public Unitholders
EMES pays out 100% of its Available Cash to Common Unitholders
– We seek to capture cash flow stability through long term contracts, a low-cost operating structure, and indexed pricing
– Unlike a typical “variable rate” MLP, our gross margins are not based on the spread between two commodities that may
or may not be correlated
– Our current credit facility allows us to borrow at favorable rates, and we are within our financial covenants
– We anticipate that our near term growth opportunities can be financed through modifications of our current credit facility
www.emergelp.com
PAGE 8
Expanding Strong Logistics Platform
Our Wisconsin sand facilities have direct access on four Class One rail lines and can reach all major
shale plays in North America on single-line hauls.
Logistics Highlights
•
•
Wide Geographic Presence
Emerge Energy currently has 14
transload locations positioned in seven
key North American Shale plays
– Focus on exclusive partnerships
– Minimize capital investment /
maximize ROIC
– Expanding unit train capabilities
(currently in 6 locations)
Emerge Energy has approximately
5,000 customer and leased railcars
– We can store approximately 1,070
railcars in our Wisconsin facility rail
yards
Dry Plant
Transload Location
Corporate Headquarters
www.emergelp.com
PAGE 9
Weathering the Cycle - Downturns Comparison
The current precipitous rig count decline is one of the most severe of the recent downturns as
measured by decrease from peak to trough.
•
After a brief stabilization in early summer 2015, rig count has resumed its decline over the past three months.
Indexed Total US Rig Count (Peak=100), Updated 12/18/15
‐
(200)
Rig Count
(400)
(600)
(800)
(1,000)
(1,200)
12/18/15: 709
1
4
7
10
13
16
19
22
25
28
31
34
37
40
43
46
49
52
55
58
61
64
67
70
73
76
79
82
85
88
91
94
97
100
103
106
109
112
115
118
121
124
127
130
(1,400)
Week Since Peak
'98‐99
'01‐02
'08‐09
'12‐13
'14‐15
Source: Baker Hughes
www.emergelp.com
PAGE 10
Focusing on Basins with Strong Economics
The sand segment sells product into oil and gas basins that have strong economics, even with the
sharp decline in commodity prices over the past six months.
WTI Oil Breakeven Price ($ per Bbl) For 15% ATAX ROR
$3.00/Bbl Natural Gas with Cost Deflation vs 2014
$100.00
$90.00
$80.00
$70.00
$60.00
EMES Focus Plays
10% cost deflation
20% cost deflation
30% cost deflation
$50.00
$40.00
$30.00
$20.00
$10.00
$0.00
Source: Credit Suisse
www.emergelp.com
PAGE 11
Driving Proppant Usage
While overall sand consumption is declining as well count decreases, the amount of sand per well
continues to increase, setting the stage for a strong recovery.
•
•
The drilled but uncompleted wells backlog remains at elevated levels, driving further demand for proppant once
those wells are fracked.
Re-fracking of existing, older wells is also starting to gain momentum and could add to a proppant demand rebound.
Total Frac Sand Consumption by Basin
(mm pounds)
Frac Sand Consumption per Horizontal Well
(mm pounds)
12.00
9,000
8,000
10.00
7,000
8.00
6,000
5,000
6.00
4,000
3,000
4.00
2,000
2.00
1,000
‐
Eagle Ford Appalachia
13Q1
13Q2
13Q3
14Q2
14Q3
14Q4
Source: PacWest Consulting Partners
www.emergelp.com
‐
Permian
13Q4
15Q1
Bakken
14Q1
15Q2
Eagle Ford Appalachia
Permian
Bakken
13Q1
13Q2
13Q3
13Q4
14Q1
14Q2
14Q3
14Q4
15Q1
15Q2
Source: PacWest Consulting Partners
PAGE 12
Improving Market Share
The downturn in the energy market is favoring the large sand providers as customers are demanding
competitive prices with complete logistics solutions.
Taking the Lead
Solid Long-Term Sales
•
•
•
Customers are gravitating to the top 6-8 frac sand
producers due to:
– Consistent high quality and more reliable
delivery
– Railcar availability
– Broad footprint of storage and transload
terminals near the drilling sites
– Lowest cost production and logistics
economics
– Stronger financial position
We have long-term contracts with several customers
We sell to the largest pressure pumpers in North
America, which we believe significantly reduces any
counterparty risk
Highly rated by customers for sand, service, and
reliability
Our customers have a track record of working with us
to adjust to changing market conditions
•
•
Improving Contract Profile (2014)
EMES Market Share of Northern White
10.0
8.0
6.0
4.0
2.0
0.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0
8.4%
6.8%
4.0%
2012
2013
EMES
Millions of Tons Under Contract
www.emergelp.com
(1)
2014 (1)
Rest of Market
Industry estimates from Cowen and Company and PacWest
PAGE 13
Significant Capital Invested & Underutilized Assets
The company has invested a significant amount of capital in its sand facilities. With moderate utilization in the
current market, the sand segment has a tremendous amount of room for growth with minimal new growth capital.
Capital Invested to Date by Facility ($ in mm’s)
Dry Plants
$60.0
Wet Plants
$50.6 $50.0
$43.8 $40.0
$32.2 $30.0
$17.5 $20.0
$17.3 $6.3 $4.1 $6.0 CRM
FLS / Barron
LP Mine
$10.0
$1.7 $‐
New Auburn
Barron
Arland
Kosse
TH Mine
Weber
2015E Utilization by Facility – Dry and Wet Plants
(mm tons per year)
3.0
Dry Plants
2.5
2.0
Current Dry Plant Capacity = 6.9mm tons
1.5
61%
1.4 1.0
0.5
2.5 2.4 62%
43%
61%
40%
1.1 45%2.0 34%
1.2 0.4 0.5 80.0%
70%
90%
1.5 0.9 (utilization)
100.0%
Wet Plants
1.2 0.7 0.5 1.0 1.6 1.1 40.0%
0.9 20.0%
Est. 2015 Sales Volumes = 3.7‐ 4.0mm tons
0.3 0.0%
‐
New Auburn
Barron
Arland
Kosse
2015E Tons Produced *
www.emergelp.com
60.0%
CRM
FLS / Barron
Capacity
LP Mine
TH Mine
2015E Utilization*
Weber
*Midpoint of 3.7 – 4.0mm tons range
PAGE 14
Summary of Sand Segment Initiatives
In light of the current market downturn, the management team is working on a number of revenue and
cost initiatives to help mitigate the impact of pricing and volume pressure.
Increasing Kosse
Capacity
Increasing Market
Share
Upgrading Logistics
Network
•
•
•
•
•
The EMES sand sales team has increased market share by expanding its sales efforts
The Company has made significant progress in establishing new relationships
•
Customers are requesting more than just sand as a product – they now want a comprehensive
sand delivery and replenishment program
Our logistics and sales teams have met this need by committing to transload site expansion,
thereby simplifying our customers’ supply chain
•
•
Cost Reductions
•
•
Recover Pricing
Opportunistically
Strategic Capacity
Expansion
www.emergelp.com
Customers are now keenly focused on all-in delivered prices to the wellhead
Our Kosse, TX facility is strategically located near strong liquids production regions in West
and South Texas, minimizing transportation costs
The Company plans to increase capacity by approximately 33% to meet this demand while
also introducing a new product to the facility’s mix – 40/70
•
•
•
Our operations team is developing a new mining technique that could help reduce our per ton
costs
We are also making progress on rate concessions from some of our largest vendors, such as
trucking providers, railroads, and general contractors, and are working on railcar subleases
We have negotiated with certain contracted customers to index sand prices to a WTI-based
mechanism
Although pricing pressure remains high, we anticipate being able to partially recover Average
Selling Price if commodity prices increase in the near term
EMES is negotiating with a major service customer to acquire mining rights at a high-quality
reserve in WI, which would supply a new dry plant with 2.5mm TPY of production
We expect the arrangement would include a 10 year commitment from this current customer to
buy a significant portion of the new dry plant’s capacity
PAGE 15
Summary of Fuel Segment Initiatives
The recent volatility in fuel prices has created obstacles in the fuel segment, but the team has
developed a number of answers for the current market conditions.
Transmix and
Throughput
• Leverage strong relationships and existing pipeline connectivity
• Expand into adjacent geographies
• Birmingham facility has significant unused capacity
Hydrotreaters
• Current transmix streams often have high diesel content because of the
presence of jet fuel
• Two hydrotreaters currently under construction at our two facilities (one
hydrotreater at Direct Fuels and one at AEC) should allow us to “solve the
sulfur problem” and capture additional base margin
Terminalling
Opportunities
• New additive systems in place at both terminals, allowing us to terminal
and sell branded as well as unbranded petroleum products
• Shipper status on Colonial and Plantation provides additional gross margin
opportunities
Organic Growth
and Acquisitions
www.emergelp.com
• Opportunity to acquire additional transmix operations and terminal sites
• Space for expansion at both sites
• Focus on additional cost reductions
PAGE 16
APPENDIX
www.emergelp.com
PAGE 17
Management and Board of Directors
Name
Years of
Professional
Experience
Title
Senior Management Team
Rick Shearer
Chief Executive Officer of EMES; CEO of Sand Division
42
Warren B. Bonham
Vice President, Fuel; President of Fuel Division
31
Jody Tusa
Chief Financial Officer
36
Deborah Deibert
Chief Accounting Officer
28
Board of Directors
Ted W. Beneski
Chairman of the Board, Partner and Co-Founder, Insight Equity
Warren B. Bonham
Vice President, Fuel and Partner, Insight Equity
Kevin Clark*
Associate Professor, Corporate Strategy and Accounting, Vanderbilt University
Peter Jones
President and CEO, Flanders Corporation
Mark Gottfredson*
Director, Bain & Company
Francis Kelly*
President and CEO, CEOVIEW Branding
Eliot Kerlin
Partner, Insight Equity
Rich Shearer
President and Chief Executive Officer, Emerge Energy Services
Victor L. Vescovo
Partner and Co-Founder, Insight Equity
* Denotes Independent Board Member
www.emergelp.com
PAGE 18
APPENDIX: SAND SEGMENT
www.emergelp.com
PAGE 19
From Mine to Railcar
www.emergelp.com
Extract
Wash
Dry
Ship
PAGE 20
Diversified Sales Portfolio
LTM 3Q15 Tons Sold by Basin
1%
3% 1%
LTM 3Q15 Tons Sold by Customer
1%
12%
5%
5%
26%
2%
3%
31%
4%
9%
4%
5%
12%
5%
20%
20%
12%
5%
14%
Eagle Ford
Marcellus
Canada
Permian
Cust A
Cust B
Cust C
Cust D
Bakken
Kosse
Mid‐Con
Barnett
Cust E
Cust F
Cust G
Cust H
Haynesville
Rockies
Other
Cust I
Cust J
Other
Basin and customer listed in order of largest to smallest
www.emergelp.com
PAGE 21
Sand Asset Summary
Proven Recoverable
Reserves (1)
Primary Reserve
Composition
Plant Capacity
(Thousands of Tons)
2014 Production
(Thousands of Tons)
New Auburn, WI
27.8 mm tons
14-60 mesh
2,000
1,332
Thompson Hills, WI
49.6 mm tons
14-50 mesh
1,600
322
FLS (Wisconsin)
13.7 mm tons
14-50 mesh
1,200
1,189
LP Mine (Wisconsin)
7.4 mm tons
14-50 mesh
1,000
1,005
Church Road (Wisconsin)
7.0 mm tons
14-50 mesh
1,200
378
Kosse, TX
27.8 mm tons
100 mesh
1,600
306
8,600
4,532
Wet Plant Location
Total
133.3 mm tons
On-site Railcar
Storage Capacity
Plant Capacity
(Thousands of Tons)
2014 Production
Volumes (Thousands of
Tons)
Barron, WI
650 cars
2,400
2,224
New Auburn, WI
420 cars
1,400
1,394
Kosse, TX
N/A
600
299
Arland, WI (2)
N/A
2,500
124
1,070
6,900
4,041
Dry Plant Location
Total
(1)
(2)
Reserves are estimated as of December 31, 2014 by third-party independent engineering firms based on core drilling results and in accordance with the SEC's definitions
of proven recoverable reserves and related rules for companies engaged in significant mining activities and represent marketable finished product. Estimates for
Wisconsin reserves exclusive of sand smaller than 65-mesh.
We load sand from Arland onto rail at Barron, New Auburn, and at a third rail loadout near St. Paul, Minnesota
www.emergelp.com
PAGE 22
Current Operations Process Flow
Thompson Hills
FLS/Arland
LP Mine
Barron
Church Road
Arland
CN
New Auburn
New Auburn
MNNR
BNSF,
CN, CP, UP
UP
Kosse
www.emergelp.com
Kosse
PAGE 23
North American Sand Markets
EMES has single-line access to four Class One railroads, which provide direct rail access to
every major basin in North America
National Network
BNSF
CN/GTW
CP/SOO
CSX /NS
KCS/KSCSM
UP
Basin
Highest Quality Sand
Source: Association of American Railroads &
U.S. Geological Survey.
Mine Locations
SSS Transload Sites
Corporate HQ
www.emergelp.com
PAGE 24
APPENDIX: FUEL SEGMENT
www.emergelp.com
PAGE 25
Fuel Segment Operations
Fuel Segment provides a stable base with meaningful growth opportunities.
Transmix
Processing
Capacity
Terminal
Tankage
Capacity
2014
Wholesale
Fuel Sold
2014 Fuel from
Transmix Sold
2014 Terminal
Throughput
Volume
Pipeline
Connectivity
Dallas – Fort Worth, TX
107.3
12.0
27.4
78.5
102.9
Explorer/Eagle/
Proprietary
Refiner
Birmingham, AL
76.7
22.0
120.3
38.1
107.7
Colonial/
Plantation
(millions of gallons)
•
•
•
Transmix Refining
– Distillation of comingled refined products
– Primarily sourced from pipelines
– Short-term commodity exposure (typically one week on
average)
Terminalling
– Fixed-fee revenue for storage and/or transfer to truck rack
– Revenue enhancement through blending and vapor
recovery
Wholesale Distribution
– Diesel and gasoline sales to local customers
– Product sourced from terminal customers and connecting
pipeline
– Short-term commodity exposure (typically less than 2
weeks)
www.emergelp.com
PAGE 26
Overview of Fuel Segment Business
Fuel segment revenue comes from a diverse mix of stable margin and fixed-fee activities.
Product Source
EMES
Wholesale and Terminal
Consumer
Gasoline
Diesel
Vapor Recovery Unit
Truck
Pipeline
Gasoline
Diesel
Gasoline
Transmix
Diesel
Truck Rack Facility
Distillation
Truck
Trains
Terminalling
Biodiesel Gasoline
Blending Additives
Automobiles
Biodiesel Facility
•
•
Gasoline Additives
EMES uses throughput contracts, indexed pricing, and hedging to minimize spread volatility
EMES holds product for 7-10 days to minimize exposure to price fluctuations
www.emergelp.com
PAGE 27
Refined Product Pipelines in the US
Transmix facilities are primarily located along major refined products pipelines
Direct
Fuels
AEC
Refined Products Pipeline
Transmix Facilities
EMES’ FP&D Facilities
www.emergelp.com
PAGE 28
Fuel Volumes by Quarter and Product
(Thousand gallons)
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
1Q 2013
2Q 2013
3Q 2013
4Q 2013
Refined Fuels Sold
1Q 2014
2Q 2014
3Q 2014
Terminal Throughput
4Q 2014
1Q 2015
2Q 2015
3Q 2015
Transmix Refined
Volumes do not include Direct Fuels volumes prior to acquisition on May 14, 2013
www.emergelp.com
PAGE 29
Per Gallon Fuel Margins
A severe price correction and one time price concessions impacted Q3 2015 margins. Those are
expected to reverse in Q4 2015.
Aggregate per Gallon Fuel Margin
$0.200
$0.150
$0.100
$0.050
$‐
$(0.050)
$(0.100)
$(0.150)
Q1 14
Q2 14
Q3 14
Blending Costs & RINS
www.emergelp.com
Q4 14
Q1 15
Effect of pricing volatility
Q2 15
Q3 15
Base Margin
PAGE 30
APPENDIX: FINANCIAL OVERVIEW
www.emergelp.com
PAGE 31
Recent Financial Results
Unaudited Quarterly Financial Results for Emerge Energy
Quarter Ended,
Sept 30, 2015
Revenue
$
Cost of Goods Sold
176,320
June 30, 2015
$
200,852
Mar 31, 2015
$
203,961
Dec 31, 2014
Sep 30, 2014
Jun 30, 2014
$
$
$
242,562
296,338
298,273
Mar 31, 2014
$
274,081
169,765
176,933
168,330
197,049
251,766
261,395
239,796
DD&A
7,530
7,355
6,440
6,901
6,421
5,711
5,770
SG&A
7,693
8,179
9,603
11,695
9,559
8,994
8,475
(68)
2,693
6,719
(8,600)
5,692
12,869
26,917
28,592
22,173
20,040
3,275
2,632
3,129
2,388
1,479
1,943
1,584
Other
(9)
(15)
(29)
(13)
775
(32)
(119)
Provision for Income Taxes
32
191
278
124
255
170
89
Project Termination
Income from Operations
Interest Expense
Net Income (Loss)
$
(11,898)
$
2,884
$
9,491
$
24,418
$
26,083
$
20,092
$
18,486
EPU (Diluted)
$
(0.49)
$
0.12
$
0.39
$
1.01
$
1.08
$
0.83
$
0.77
www.emergelp.com
PAGE 32
Non-GAAP Reconciliation: Adjusted EBITDA
The following table presents a reconciliation of Adjusted EBITDA to the most directly comparable GAAP
financial measures for each of the periods indicated.
Quarter Ended,
Sept 30,
2015
Net income
$
June 30, 2015
Dec 31, 2014
Sep 30, 2014
3,275
2,632
3,129
2,388
1,479
1,943
1,584
Other loss
(9)
(15)
(29)
(13)
775
(32)
(119)
Provision for income taxes
32
191
278
124
255
170
89
(8,600)
5,692
12.869
26,917
28,592
22,173
20,040
7,530
7,355
6,440
6,901
6,421
5,711
5,770
368
935
2,292
2,316
2,396
2,193
2,137
102
-
8
4
(15)
19
-
285
258
38
152
38
31
32
41
20
19
21
7
10
-
(68)
2,693
6,719
-
-
-
-
Depreciation, depletion
and amortization expense
Equity-based
compensation expense
Loss (gain) on disposal
of equipment
Provision for doubtful
accounts
Accretion of asset
retirement obligations
Project Termination
Adjusted EBITDA
www.emergelp.com
$
(342) $
16,953 $
28,385 $
36,311 $
26,083 $
37,439 $
20,092 $
Mar 31, 2014
9,491 $
Operating income
24,418 $
Jun 30, 2014
2,884 $
Interest expense, net
(11,898) $
Mar 31, 2015
30,137 $
18,486
27,979
PAGE 33