NYSE MKT: DAKP C ORPORATE P RESENTATION M ARCH 23, 2015 WWW . DAKOTAPLAINS . COM
F ORWARD L OOKING Statements made by representatives of Dakota Plains Holdings, Inc. (“Dakota Plains” or the “Company”) during the course of this presentation that are not historical facts, are forward-looking statements. These statements are based on certain assumptions and expectations made by the Company which reflect management’s experience, estimates and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or anticipated in the forward-looking statements. These include risks relating to global economics or politics, our ability to obtain additional capital needed to implement our business plan, minimal operating history, loss of key personnel, lack of business diversification, reliance on strategic, third-party relationships, financial performance and results, prices and demand for oil, our ability to make acquisitions on economically acceptable terms, and other factors described from time to time in the Company’s periodic reports filed with the SEC that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. Dakota Plains undertakes no obligation to publicly update any forward- looking statements, whether as a result of new information or future events. 2
O VERVIEW Ø Corporate Overview: v Operate the Pioneer Terminal in New Town, ND transloading outbound crude and inbound frac sand Ø Current Environment Evaluating demand for crude-by-rail vs. pipeline in lower commodity price environment v Ø December 2014 Buyout of JV Partner: v Created value in earnings per share, EBITDA and operating cash flow per share v Fully financed with low cost debt and cash on hand v Simplified capital structure and financial reporting v Expedites further growth v Effectively mitigated exposure to the Lac Megantic incident Ø Future Growth: v Expanding capacity with addition of 3 rd storage tank- fully funded and on schedule for summer 2015 v Developing phased expansions toward goal of 160k bopd; timing will be dictated by demand FY 2015 adjusted EBITDA guidance of $23.4M Ø 3
I NFORMATION Dakota Plains Holdings, Inc. is an integrated midstream energy company operating the Pioneer Terminal with services that include outbound crude oil storage, logistics, and rail transportation and inbound frac sand logistics. The Pioneer Terminal is located in Mountrail County, North Dakota, where it is uniquely positioned to exploit opportunities in the heart of the Bakken and Three Forks plays of the Williston Basin. Ø NYSE-MKT: DAKP; Ø Recent closing price: $2.02 on March 18, 2015 Ø Headquarters: Wayzata, MN Ø FD Shares Outstanding: 57.8mm as of December 31, 2014 Ø Long Term and Current Debt: $48.5m; $9m of available credit as of December 31, 2014 Ø Auditor: BDO USA, LLP Ø Transfer Agent: Interwest Transfer Co, Inc. Ø Investor Inquiries: Dan Gagnier, Sard Verbinnen & Co, (212) 687-8080 4
L OCATION Location Highlights: q One of 3 rail terminals not on BNSF q Only non-BNSF terminal that accepts third party volumes q Capacity for 5 inbound pipelines; two connected q Access to only Missouri River bridge crossing for 70 miles Crude By Rail Terminals Bakken Heat Map – November 14, 2014 publication 5
B USINESS Crude Oil Logistics & Transport Oil Outbound Crude Oil Storage & Transloading Sand Inbound Frac Sand Storage & Transloading 6
T RANSFORMATION 2 Years Ago 2015 indirect investment in 3 50/50 JVs 100 % ownership and operating control 0 operating control > 50 k b/d average throughput 26 k b/d average throughput 2 loop tracks and 8 ladder tracks 4 ladder tracks 180 k bbls crude oil storage; 270 k bbls by summer 0 crude oil storage 97.5 k tons per quarter of frac sand $ 28 m in debt at 12 % $ 48 m debt at ≈ 5.5 % 7
G OVERNANCE S TOCKHOLDER FOCUSED P ERFORMANCE DRIVEN A DAM K ROLOFF C HAIRMAN OF THE B OARD S TEVEN B LANK D AVID F ELLON G ARY A LVORD B OARD OF D IRECTORS I NDEPENDENT D IRECTOR I NDEPENDENT D IRECTOR L EAD I NDEPENDENT D IRECTOR C RAIG M C K ENZIE CEO & E XECUTIVE D IRECTOR M ANAGEMENT G ABE C LAYPOOL T IM B RADY J IM T HORNTON P RESIDENT & COO CFO G ENERAL C OUNSEL Board reduced to 5 directors eff. May 1, 2015 8
G ROWTH Oil 2010 2017E Phase 1 Phase 2 Phase 3 Tank #3 under construction; operational July 2015 $6m fully funded Phase 4 Loop Track #3 under evaluation $5m est. Phase 5 Tanks #4, #5, & loading expansion $25m est. Phase 6 Tank #6 & infrastructure $6m est. k b/d oil 20 40 80 160 9
S TRATEGIC A LTERNATIVES Combination with other company or MLP Acquisition of strategic & accretive assets (or company) Recapitalization of debt/equity/structure Oil Sale to buyer pending level of interest Sand Opportunity Set Destination terminals Origination terminals MLP qualified assets Debt syndication Stock buyback program Strategic merger targets Potential buyers 10
R AIL VS . P IPE Brent/WTI spread $/bbl North Dakota production Rail bbl/day Volume 58% Pipeline Capacity Pipeline Volume Sources: North Dakota Pipeline Authority (NDPA) with data through December 2014 and the Energy Information Administration (EIA) 11
P IONEER T ERMINAL H ILAND , P ELICAN & T ARGA P IPELINE CDP S 180 K BBLS STORAGE , 270 K S UMMER 2015 T WO I NBOUND UNIMIN FRAC SAND PIPELINES 10 STATION RAIL LOADING T ERMINAL 10 TRUCK OFFLOAD STATIONS F OUR LADDER TRACKS = 10,000 FEET 12
O PERATIONS - O IL q Land is owned by Dakota Plains Holdings, Inc. q Commenced operations August 2010 q Generates revenue through fee/bbls q Double loop track, each 120 car capable q 180,000 bbls of storage, third 90,000 bbls tank expected to be completed by Summer 2015 q Third loop track and incremental storage under consideration q 10,000 feet of incremental ladder tracks adds to operational efficiency q 750 Tank cars leased at below market rates 13
O PERATIONS - S AND q Land is owned Dakota Plains Holdings, Inc. q Commenced frac sand transloading operations June 2014 q Generates revenue through fee/ton paid by Unimin q 8,500 feet of dedicated track space q 8,000 tons of storage q Track expansion and additional storage under consideration 14
P IONEER T RANSLOADING Actual k b/d of crude oil 2014 ToP vol = 49.1 kbpd P LAN 2015 k tons per month of frac sand 15
P RIORITIES 2015 Guidance Delivery 57.5 k b/d oil; 97.5 k tons/q sand; $23.4 m EBITDA Tank #3 Construction commission by July 2015 Operations Efficiency bring outsourced operations in-house Throughput Contracts new customers and renewals with current customers Debt Syndication $22.5 million due December 2015 Strategy Committee process on behalf of Board Strategic Alternatives SunTrust Robinson Humphrey as advisors 16
A PPENDIX 17
C RUDE B Y R AIL T ERMINALS – E ND OF 2014 Global/Basin Stampede - CP c. 80k bpd Plains All American No 3 rd Party Ross – BNSF Hess Storage ≈ 200k Crestwood Partners c. 68k bpd Tioga - BNSF Epping - BNSF Gathering c. 140k bpd c. 160k bpd Robinson Lake Pipe Gathering Beaver Lodge Pipe EOG 3 rd Party ? Storage ≈ 200k Storage ≈ 1.1M Stanley - BNSF Storage ≈ 270k 75k bpd NO 3 rd Party Storage ≈ 240k Savage Trenton - BNSF c. 175K bpd Phillips 66 2-Gathering Lines December 2014 Palermo – BNSF Storage ≈ 300k c. 80k bpd + Enbridge Q4 2015 Berthold - BNSF Production ≈ 1.3M bpd Storage = 300k c. 80k bpd Gathering Pipeline = 455k bpd Storage ≈ 300k Northstar Tesoro = 65k bpd Fairview – BNSF Plains All American c. 100k bpd Van Hook - CP Q2 2015 Truck = 13k bpd c. 65K bpd No 3 rd Party Storage = 515k Dakota Plains Storage ≈ 300k Rail = 767k bpd New Town - CP c. 80k bpd 3 rd Party OK Musket Corp. Dore - BNSF Storage = 180k 60k bpd Banner Pipeline 3 rd Party OK Storage ≈ 90k Great Northern Tesoro Logistics BOE Midstream Power Development Refinery Dickinson - BNSF Fryburg - BNSF Mandan c. 200k bpd Global/Basin BakkenLink Pipeline Belle Fourche Pipe Zap - BNSF 68k bpd c. 70k bpd Storage ≈ 650k c. 60k bpd Storage ≈ 450k 3 rd Party OK Storage ≈ 140k 18
4 Q 2014 R ESULTS 4q 2014 4q 2013 all results in $mm Consolidated Net Income $ (0.9) $ 0.3 EBITDA $ 1.9 $ 0.1 Oil Transloading JV Revenue $ 7.7 $ 4.6 Income $ 2.5 $ 0.9 Sand Transloading JV (a) Revenue $ 0.6 Income $ 0.2 Discontinued Operations Income from Marketing JV $ 0.4 $ 1.4 Income from Trucking JV $ 0.0 $ (0.1) (a) Commenced operations in June 2014 19
FY 2014 R ESULTS FY 2014 FY 2013 all results in $mm Consolidated Net Income $ (3.3) $ (1.7) EBITDA $ 3.4 $ 2.4 Oil Transloading JV Revenue $ 26.8 $ 17.5 Income $ 6.7 $ 4.3 Sand Transloading JV (a) Revenue $ 1.4 Income $ 0.4 Discontinued Operations Income from Marketing JV $ ( 0.4) $ 3.0 Income from Trucking JV $ 0.6 $ 0.1 (a) Commenced operations in June 2014 20
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