CYPRESS ENERGY PARTNERS NYSE: CELP - PowerPoint PPT Presentation

CYPRESS ENERGY PARTNERS NYSE: CELP

• • • • • • • • • • •

• • • • • • • • •

• • • • • • • • • • • • • • • • •

• − − • − • − − • • • •

• • • • • • • • • • •

• • • ➢ ➢ ➢ • • • • • •

• • → • − − • • • • − •

• − − − − − − • • •

• • 9% 12% • 32% 47% • • Pre 1950 (69+ years old) 1950-1969 (50-69 years old) 1970-1999 (20-49 years old)

• • • • • • • • •

• o o o o o o • o o o o o

• 15.0% 2,000 11.5% 11.0% 10.3% 9.5% 9.7% 10.2% 9.3% 9.7% 8.9% 8.9% 10.0% 8.8% 1,500 Headcount • 1,000 1,673 1,648 1,552 − 1,470 1,432 1,406 1,367 1,375 5.0% 1,330 1,263 1,231 1,211 1,186 1,188 1,130 1,134 1,093 1,083 1,101 1,030 500 0.0% 0 − Headcount Gross Margin Percentage • $15,000 $6,000 $13,000 $4,853 $4,778 $4,741 $4,655 $4,782 $4,570 $5,000 $4,555 $4,675 $4,463 − $4,377 Quarterly Gross Margin ($000) $11,000 $4,000 $9,000 − $7,000 $3,000 $11,446 • $9,804 $9,256 $8,951 $9,014 $8,552 $8,371 $5,000 $8,112 $7,998 $7,954 $7,842 $7,733 $7,890 $7,414 $7,015 $6,771 $2,000 $6,246 $5,865 $5,546 $5,487 $3,000 • $1,000 $1,000 -$1,000 $- • Gross Margin ($000) Avg weekly revenue per inspector

• • • • • • − − − − − •

Pipeline Services Process Services New Build Existing Infrastructure In-Line Inspection New Build Existing infrastructure • Filling, and • Mechanical cleaning • Internal geometry inspection • Nitrogen services • Hydrotesting • Gel cleaning • Mapping • Leak detection hydrotesting • System Drying • Dewatering, drying • Chemical cleaning • Corrosion detection Key Services • Chemical cleaning • Leak detection • Pre inspection cleaning • Bend strain determination • Drying & inerting • Decontamination • Baseline inspection • Revalidation • Dent strain determination • Bolting and • Chemical cleaning • Water Treatment • Fluid treatment • Run to run analysis Torqueing • Bolting and Torqueing • Nitrogen Services • Fluid Filtration • Nitrogen Services • Caliper Services • Deep water • Cleaning for inspection • Aging pipelines • Shale plays • Aging infrastructure Business Drivers • Product to market • Bringing back into service • Public pressure • Remote areas • Opex budgets • Shale plays • Inventory recovery • Legislation federal and state • Availability • HSE issues • Utility switch to Gas • Throughput issues • Risk abatement • Legislation petrochemical • Remote areas • Change of use • Increase throughput • Process upsets feedstock • Topography • Change of direction • Cheap gas • World economy Key Locations and Equipment Scott Facility head-quarters of Fluid separations Equipment Specialist Pumping Equipment Technology Center In-Line Inspection Tool Offshore operations Salt Lake City

• − − − − − • − − • − − − − • − − − − • • •

• • • − − • • •

• − − • • − • − − − •

$/bbl 6 $ 1.40 5.5 5.2 • 4.9 4.7 $ 1.20 4.6 5 4.3 4.3 3.6 $1.09 3.9 $ 1.00 $1.07 3.7 3.1 3.7 4 2.8 3.5 3.4 2.8 3.0 3.1 3.3 $0.92 2.9 $ 0.80 $0.85 3 $0.78 $0.78 $0.77 $0.77 $0.73 $0.82 $ 0.60 $0.68 $0.68 $0.68 $0.68 $0.68 $0.68 $0.67 $0.66 $0.65 $0.77 2 $ 0.40 1 $ 0.20 0 $ 0.00 Revenue per Barrel (right axis) Disposal Volumes (left axis)

# inspectors $mm Avg. # of inspectors (left axis) $mm $mm Revenue (left axis) $13.3 $190.2 Revenue (right axis) 1,800 $200 $250 $14 Adj. EBITDA (right axis) 1,600 $12 $200 1,400 $150 $128.3 $10 $8.5 1,200 $150 $8 1,000 $100 $201.5 800 1,553 $6 $100 600 $4 $50 $141.3 400 1,109 $50 $2 200 0 $0 $0 $0 June 2018 YTD June 2019 YTD June 2018 YTD June 2019 YTD # field empl Avg. # of field empl (left axis) $mm MM Bbls $mm Disposal volumes (Ieft axis) Revenue (right axis) Revenue (right axis) 8 $7 30 $8 $7.4 $5.5 $7 7 $4.9 $6 25 $7 6 28 $5 20 $7 5 22 $4 $7 4 15 $7 $3 6.7 $6.4 6.3 3 10 $6 $2 2 $6 5 $1 1 $6 0 $0 0 $6 June 2018 YTD June 2019 YTD June 2018 YTD June 2019 YTD

# inspectors $mm $mm Revenue (left axis) $mm Avg. # of inspectors (left axis) Adj. EBITDA (right axis) $350 $25 1,400 $350 Revenue (right axis) $21.9 $288.1 $18.7 $268.7 $300 1,200 $300 $20 $250 1,000 $250 $15 $200 800 $200 $315.0 $150 1,214 600 $150 $10 1,145 $100 400 $100 $286.3 $5 $50 200 $50 $0 $0 0 $0 2017 2018 2017 2018 MM Bbls $mm # field empl $mm Disposal volumes (Ieft axis) Avg. # of field empl (left axis) $15.0 20 $14 $11.9 24 $16 Revenue (right axis) Revenue (right axis) $12 $14 23 15 $8.4 $12 $10 $9.3 22 $10 $8 10 21 $8 $6 23 $6 14.8 20 12.6 $4 $4 5 19 20 $2 $2 18 $0 0 $0 2017 2018 2017 2018

Revenues $450,000 $400,000 $350,000 $300,000 In thousands $250,000 $200,000 $150,000 $100,000 $50,000 $- 2014 2015 2016 2017 2018 2019 YTD TIR Revenue WES Revenue Brown Revenue Operational Metrics $60,000 $50,000 $40,000 In millions $30,000 $20,000 $10,000 $- 2014 2015 2016 2017 2018 2019 YTD Gross Margins SG&A Sponsor Support EBITDA (1) Interest Expense

Gross Margin by Year (000's) Gross Margin % by Year $60,000 80% 80% 70% 70% $50,000 60% 60% $40,000 50% 50% $30,000 40% 40% 30% 30% $20,000 20% 20% $10,000 10% 10% $- 0% 0% 2014 2015 2016 2017 2018 2019 YTD 2014 2015 2016 2017 2018 2019 YTD PIS Water PPS PIS GM% PPS GM% Water GM% PIS PPS Water • • • •

$60,000 $100 $90 $50,000 $80 $70 $40,000 $60 $30,000 $50 $40 $20,000 $30 $20 $10,000 $10 $- $- 2014 2015 2016 2017 2018 2019 YTD CELP Gross Margin CELP EBITDA CELP DCF CELP Common Unit Distribution WTI (Right Axis) • •

• • •

• • • • • • • • • •