Foresight Energy LP Investor Presentation May 2017 FORESIGHT ENERGY
Disclaimer It is understood and acknowledged that any person’s access to, and use of, any of the attached materials constitutes their overall acceptance of the following: (i) the information contained in this presentation has not been independently verified and no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the information or opinions contained herein; (ii) the information set out herein may be subject to revision and may change materially before closing; (iii) no person should rely on statements or representations made within these materials nor should any person rely on the statements or representations made by any other source based on these materials; and (iv) neither Foresight Energy LP (“Foresight” or the “Company”) nor any other party involved in the preparation of the attached materials shall have any duty or liability to any person in connection with the attached materials. This presentation and the information contained herein have been prepared to assist interested parties in making their own evaluation of the Company and the facilities and does not purport to be all-inclusive. Each recipient of the information and data contained herein should take such steps as it deems necessary to assure that it has the information it considers material or desirable in making its decision to become a lender and should perform its own independent investigation and analysis of the facilities or the transactions contemplated thereby and the creditworthiness of the Company. The recipient represents that it is sophisticated and experienced in extending credit to entities similar to the Company. The information and data contained herein are not a substitute for the recipient's independent evaluation and analysis and should not be considered as a recommendation that any recipient enter into the facilities. The contents of this presentation are not to be construed as legal, regulatory, business, accounting or tax advice. You should consult your own attorney, business advisor, accountant and tax advisor as to legal, regulatory, business, accounting and tax advice. Under no circumstances is this presentation or the information contained herein to be construed as a prospectus, offering memorandum or advertisement, and neither any part of this presentation nor any information or statement contained herein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. This presentation is not, and is not intended to be, an offer to sell, or a solicitation of an offer to purchase, any securities or any other interest in the Company. This presentation is confidential. Any reproduction or distribution of this presentation, in whole or in part, or the disclosure of the contents hereof, without the prior written consent of the Company, is prohibited. The Company and its affiliates, officers, directors, employees, professional advisors and agents do not accept responsibility or liability for this presentation or its contents. Cautionary Note Regarding Forward-Looking Statements . This presentation contains, and oral statements made from time to time by our representatives may contain, forward- looking statements about our business, operations, and industry, as well as the proposed transactions described herein, which involve risks and uncertainties, such as statements regarding our plans, objectives, expectations and intentions. You can identify these forward-looking statements by the use of forward-looking words such as “outlook,” “intends,” “plans,” “estimates,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “anticipates,” “foresees,” or the negative version of these words or other comparable words and phrases. Any forward-looking statements contained in this presentation speak only as of the date on which we make it and are based upon our historical performance and on current plans, estimates and expectations. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that the future developments affecting us will be those that we anticipate. Our future results and financial condition may differ materially from those we currently anticipate as a result of the various factors, many of which are outside our control. Furthermore, the successful consummation of the transactions described herein on the terms described herein, or at all, is subject to, among other things, agreement on principal terms between the parties, successful negotiation of definitive documentation and any conditions contained therein, all of which is not solely within our control. Factors that could affect the foregoing include, but are not limited to, the market price for coal, the supply of, and demand for, domestic and foreign coal, competition from other coal suppliers, the cost of using, and the availability of, other fuels, the effects of technological developments, advances in power technologies, the efficiency of our mines, the amount of coal we are able to produce from our properties, operating difficulties and unfavorable geologic conditions and other uncertainties. These factors should be read in conjunction with the risk factors included in Part I. "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ending December 31, 2016. You are cautioned not to place undue reliance on forward-looking statements, which are made only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise, except as required by law. 2
Non-GAAP Financial Measures Use of Non-GAAP Financial Measures. Management provides financial measures and terms not calculated in accordance with accounting principles generally accepted in the United States (GAAP). Presentation of non-GAAP measures such as, but not limited to “Adjusted EBITDA” provides investors with an alternative method for assessing our operating results in a manner that, when coupled with the GAAP results and the reconciliation to GAAP results, enables them to more thoroughly evaluate our performance. These non-GAAP measures provide a baseline for assessing the our future earnings expectations. Our management uses these non-GAAP measures for the same purpose. The non-GAAP measures included in this presentation are provided to give investors access to the types of measures that we use in analyzing our results. The calculation of non- GAAP financial measures herein is not necessarily comparable to similarly titled measures reported by other companies. These non-GAAP measures may be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results, and they may exclude financial information that some consider important in evaluating our performance. Schedules that reconcile non-GAAP financial measures used in this presentation to GAAP financial measures are included with this presentation. We define Adjusted EBITDA as net income (loss) attributable to controlling interests before interest, income taxes, depreciation, depletion, amortization and accretion. Adjusted EBITDA is also adjusted for equity-based compensation, losses/gains on commodity derivative contracts, settlements of derivative contracts, changes in the fair value of the warrants and material nonrecurring or other items which may not reflect the trend of future results. As it relates to derivatives, the Adjusted EBITDA calculation removes the total impact of derivative gains/losses on net income (loss) during the period and then adds/deducts to Adjusted EBITDA the aggregate settlements during the period. 3
Overview of Foresight Energy LP Foresight Energy LP (“Foresight” or the “Company”) is a thermal coal producer that controls approximately 2.1 billion tons of proven and probable coal reserves in the Illinois Basin (“ILB”) — Major supplier of thermal coal to domestic power plants, industrial users and international customers — Four state-of-the-art longwall mines 1 and one continuous miner operation across four mining complexes — Operations represent some of the most productive and lowest cost mines in the U.S. — Produce high-heat content coal with ability to ship domestically and internationally — Mines are strategically located near multiple rail and river access points to provide transportation optionality Well-positioned to remain profitable throughout the cycle due to its low cost structure and high heat content — For LTM ended March 31, 2017, Foresight sold 20.8 million tons (“Mst”) of coal, generating total revenues and Adjusted EBITDA of $940.1 million and $322.5 million, respectively $1.4bn investment by Murray Energy Corporation (“Murray Energy”) in 2015 has generated significant synergies and created the dominant U.S. coal producer focused on high high-heat content thermal coal Recently completed refinancing that removed potential dilution from the Convertible PIK Note and allows Foresight to resume distributions on common units, subject to the discretion of management and terms of financing documents Favorable outlook with evolving U.S. political landscape, stabilization of domestic and seaborne thermal prices, improved capital structure, and clear path to resume distributions 1 Includes Hillsboro which is currently idled. 4
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