Green Plains Partners LP 2016 MLPA Investor Conference June 2, 2016 - PowerPoint PPT Presentation

Green Plains Partners LP 2016 MLPA Investor Conference June 2, 2016

Todd Becker President & Chief Executive Officer Green Plains Partners LP | NASDAQ: GPP | www.greenplainspartners.com

Forward-Looking Statements This presentation includes forward-looking statements within the meaning of federal securities laws. Statements that do not relate strictly to historical or current facts are forward-looking. These statements contain words such as “possible,” “if,” “will” and “expect” and involve risks and uncertainties including, among others, that Green Plains Partners’ business plans may change as circumstances warrant because of general ma rket conditions or other factors. Such statements are based on current expectations, forecasts and projections, including but not limited to, anticipated financial and operating results, plans, objectives, expectations and intentions that are not historical in nature. Investors should keep in mind the risk factors and other cautionary statements in Green Plains Partners’ SEC filings when considering these forward- looking statements. Forward-looking statements do not guarantee future performance or results nor are they necessarily accurate indicators that such performance or results will be achieved. Green Plains Partners undertakes no obligation, nor does it intend, to update these forward-looking statements to reflect events or circumstances occurring after this presentation. You are cautioned not to place undue reliance on these forward- looking statements, which speak only as of the date of this presentation. 2016 MLPA Investor Conference | 6.02.16 Page 3

Partnership Overview

Green Plains Partners LP  Formed in 2015 by Green Plains Inc. to provide fuel storage and transportation services by owning, operating, developing and acquiring ethanol and fuel storage tanks, terminals, transportation assets and other related assets and businesses  Primary vehicle to expand downstream logistics activities to support Green Plains’ growing ethanol marketing and distribution business  Vertical integration enables Green Plains to better capture the economic value of these operations within the ethanol value chain and continue to develop downstream logistic assets Grain Procurement & Storage, Marketing, Production Terminal Services Distribution Storage Transportation, & Logistics Green Plains Partners’ Initial Assets Upstream Downstream 2016 MLPA Investor Conference | 6.02.16 Page 5

Partnership Assets Strategically located near  FAIRMONT Ethanol Storage Facilities major rail lines in nine U.S. states SUPERIOR LAKOTA 30 ethanol storage facilities ATKINSON enabling transportation to diverse located at or near Green ORD OMAHA geographic areas Plains’ 14 ethanol production SHENANDOAH WOOD RIVER CENTRAL CITY plants with production capacity of 1.2 bgy OTTER TAIL  Fuel Terminal Facilities GREEN PLAINS’ ASSETS Fuel terminal facilities at eight CORPORATE HEADQUARTERS RIGA locations in seven south- ETHANOL PRODUCTION FACILITIES BLUFFTON GPP’s ASSETS central U.S. states. ETHANOL STORAGE FACILITIES BIOFUELS UNIT TRAIN TERMINAL BIOFUELS TERMINALING FACILITIES HOPEWELL  Transportation Assets LOUISVILLE RAIL SYSTEMS ~2,550 railcars and trucking NORFOLK SOUTHERN BNSF OBION capabilities NASHVILLE UNION PACIFIC OKLAHOMA CITY CANADIAN NATIONAL LITTLE ROCK HEREFORD BIRMINGHAM BOSSIER CITY COLLINS Assets with low operating capital requirements and useful life of 20+ years 2016 MLPA Investor Conference | 6.02.16 Page 6

Our Parent  Green Plains Inc.  Formed in 2004 as an ethanol producer with strategically located, operationally efficient production assets  Growth through acquisition of vertically integrated commodity-processing businesses Third largest consolidated owner of ethanol production facilities in the world  1,000 employees, $1.9 billion in assets and enterprise value of $1.4 billion   Footprint provides broad understanding of crop and livestock production, export markets, transportation dynamics and ethanol economics US Ethanol Production Capacity (bgy) (1) EBITDA (in millions) Top five producers ADM  1.8 $351 account for 43% of overall production capacity POET  1.7 (2) Valero  1.3 $157 $149 $130 $127 $116 Green Plains  1.2 $68 All Others  8.8 Flint Hills  0.8 1) Renewable Fuels Association Dec 2015 2009 2010 2011 2012 2013 2014 2015 2) POET does not own 100% of all production capacity 2016 MLPA Investor Conference | 6.02.16 Page 7

Operating Segments Green Plains Inc.  56 mmbu of grain storage capacity  70,000-head capacity cattle feedlot with 2.8 mmbu of feed storage Upstream Agribusiness  14 dry-mill ethanol plants in 8 states, all with export spec capabilities  Produces 1.2 bgy of ethanol, 3.5 mm tons of livestock feed, 275 mm lbs of industrial corn oil Ethanol Production  Merchant trading of 12 commodities Downstream  1.3 billion gallons sold in the last twelve months Marketing & Distribution  Fuel storage and transportation services Partnership Green Plains moves meaningful volumes and positions across the agricultural and energy supply chain 2016 MLPA Investor Conference | 6.02.16 Page 8

Stable, Fee-Based Cash Flows Our Relationship with Green Plains Inc.  Green Plains is a 62.5% owner and general partner of the partnership; public owns remaining 35.5%  Long-term, fee-based commercial agreements with our parent and third parties generate stable and predictable cash flows Supported by minimum volume or capacity commitments  Since 2009, Green Plains’ ethanol production has averaged 95.3% of daily average production  capacity Commercial Agreements with Green Plains Trade (1) Green Plains Production & Utilization History (mmgy) (% of capacity) Minimum Rate per Remaining 325 110% Agreement (mmg) commitment gallon Term 300 100% 275 Storage and 90% 986 mmgy $0.0500 9.25 yrs 250 throughput services 80% 225 70% Terminal services 200 33.2 mmg $0.0355 1.75 yrs (Birmingham) 60% 175 150 50% Railcar capacity (daily 76.9 mmg $0.0358 5.25 yrs 125 avg. gallons mm) 40% 100 30% 1) Quarterly report on Form 10-Q as of 3.31.16 75 20% 50 10% 25 - 0% Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Production Production Capacity % of Capacity 2016 MLPA Investor Conference | 6.02.16 Page 9

Liquidity & Capital Structure Green Plains Inc. (in millions) 2011 2012 2013 2014 2015 Q1-2016 Production Capacity (mmgy) 740 740 1,020 1,020 1,055 1,215 EBITDA (1) $148.6 $115.5 $156.6 $350.7 $127.8 $102.3 Interest Expense (1) $36.6 $37.5 $33.4 $39.9 $40.4 $42.0 Gross Debt $636.8 $663.3 $735.2 $672.8 $675.0 $776.7 Working Capital Financing $69.6 $144.4 $171.5 $209.9 $226.9 $277.4 Term Debt $567.2 $518.9 $563.7 $462.9 $448.1 $499.3 Cash & Cash Equivalents $194.6 $280.1 $299.0 $455.3 $411.9 $400.7 Net Term Debt $372.6 $238.8 $264.7 $7.6 $36.2 $98.6 Stockholder's Equity $505.4 $490.5 $545.4 $797.4 $797.8 $769.1 Term Debt / Total Capitalization 52.9% 51.4% 50.8% 36.7% 36.0% 39.4% Term Debt / EBITDA 3.8x 4.5x 3.6x 1.3x 3.5x 4.9x EBITDA / Interest Expense 4.1x 3.1x 4.7x 8.8x 3.2x 2.4x 1) Trailing twelve months for Q1-2016 Assets as of March 31, 2016 Debt as of March 31, 2016 Other Assets 7% Other 10% Convertible Plant Term Notes 14% Inventories & Property & Debt 40% A/R 24% Equipment 48% Working Cap Revolver 36% Cash 21% Total Assets: $1,919 million Total Debt: $777 million 2016 MLPA Investor Conference | 6.02.16 Page 10

Ethanol Industry Overview

Domestic Ethanol Landscape  U.S. is the world’s largest producer of ethanol 216 ethanol plants in the U.S. capable of producing 15.7 bgy of ethanol   Domestic ethanol industry produced 14.8 billion gallons in 2015  13.9 billion gallons of ethanol were consumed, or 9.9% of domestic gasoline supply RFS II mandate of 14.05 bgy in 2015; 14.5 bgy in 2016; 14.8 bgy proposed for 2017  Domestic Supply and Demand (bgy) Top Global Ethanol Producers (2015) Rest of world  6% 15.5 China  3% U.S. Demand EU  5% 15.0 U.S. Net Exports U.S. Production 14.5 14.0 Brazil  28% 13.5 13.0 United States  58% 12.5 12.0 United States and Brazil accounted for ~86% 2010 2011 2012 2013 2014 2015 2016P of world ethanol production in 2015 Source: U.S. Dept. of Energy, Energy Information Administration, U.S. Dept. of Agriculture, Renewable Fuels Association 2016 MLPA Investor Conference | 6.02.16 Page 12

Domestic Ethanol Supply & Demand Industry Fundamentals (thousand barrels) (days) 26,000 29 24,000 27 22,000 25 20,000 23 18,000 21 16,000 19 14,000 17 12,000 15 May-11 Aug-11 Nov-11 Feb-12 May-12 Aug-12 Nov-12 Feb-13 May-13 Aug-13 Nov-13 Feb-14 May-14 Aug-14 Nov-14 Feb-15 May-15 Aug-15 Nov-15 Feb-16 May-16 Weekly U.S. Ending Stocks Total Days of Demand   First quarter production outpaced demand Days of production demand are dropping from Feb 2016 record inventory levels Cold weather ideal for ethanol production   Implications of increased demand in relatively Gasoline demand seasonally low; 3-year  tight industry average demand is 5.4% lower in Q1 than Q4 Source: Energy Information Administration as May 20, 2016 2016 MLPA Investor Conference | 6.02.16 Page 13