Southcross Energy Partners L.P
Southcross Energy Partners L.P — Merger or Acquisition (November 2017)
17 slides from Southcross Energy Partners L.P's merger presentation, Nov 2, 2017
Slide 1: American Midstream Partners to Acquire Southcross Energy
American Midstream Partners to Acquire Southcross Energy November 1, 2017 Exhibit 99.2
Slide 2: Cautionary Statement
Cautionary Statement This presentation and accompanying statements may contain forward-looking statements. All statements that are not statements of historical facts, including statements regarding American Midstream Partners, LP’s (“American Midstream,” “AMID,” “we,” or “us”) future financial posit
Slide 3: Compelling Strategic Rationale
Compelling Strategic Rationale Creates fully integrated midstream platform linking natural gas and NGL supplies to high-growth markets along the U.S. Gulf Coast, forming a $3 billion enterprise value partnership Expands AMID’s onshore gathering, processing and transmission services in the highly eco
Slide 4: Strategic System Integration Drives Value
Strategic System Integration Drives Value Strategically Located Assets are a Bridge to Demand Markets Extends AMID’s customer reach to numerous producers (25+) in the core of the Eagle Ford and to key end users in high-growth downstream markets Connects Eagle Ford producers with critical natural gas
Slide 5: Transaction Highlights and Pro Forma Organizational Structure
Transaction Highlights and Pro Forma Organizational Structure 71% LP interest and affiliates 15% GP / IDRs 6% LP interest 4.5 million preferred units 4.5 million options 85% GP / IDRs 23% LP Interest 19.1 million preferred units A-II Holders Holdings and SXE Assets Legacy AMID Assets AMID to acquire
Slide 6: Immediately accretive to AMID's DCF per unit
Immediately accretive to AMID’s DCF per unit. Single-digit accretion in 2018 and 2019, approaching double digits in 2020 Solid pro forma distribution coverage of 1.1x – 1.3x Adds stability to distribution and potential for future distribution growth Initial trailing leverage of approximately 4.5x wi
Slide 7: Right Combination at the Right Time: A Value Chain Story
Right Combination at the Right Time: A Value Chain Story Combines two complementary franchises positioned to generate stable cash flows Transportation Natural gas end users NGL end users NGL & residue marketing Fractionation Y-Grade Gathering and compression Well-head Source gas treating Gas process
Slide 8: Combination Creates a Synergistic Gulf Coast Footprint
Combination Creates a Synergistic Gulf Coast Footprint Transaction enhances value chain in AMID’s core areas
Slide 9: Integrated midstream platform facilitates movement to Gulf Coast demand markets
Integrated midstream platform facilitates movement of natural gas, crude oil and NGLs to high-growth demand markets along the Gulf Coast Substantial Optionality to Connect Supply with Demand Link key sources of supply (Permian, Eagle Ford, Gulf of Mexico) to South TX fractionation complex and Corpus
Slide 10: Connecting High-Quality Customers to Robust Gulf Coast Demand
Source: EIA, public company presentations Disclaimer: All trademarks or service marks appearing in this presentation are property of their respective Holders. Solely for convenience, the trademarks and trade names in this presentation are used without the ®, ™ and / or SM symbols, but such reference
Slide 11: Goal / Complete Opportunity / Action Result
Goal Complete Opportunity / Action Result Expand Scale Southcross Combination Announced Create $3 billion company JP Energy Merger Merged Created $2 billion company Focus on Core Gulf Coast and GoM Value Chain Gulf Coast: Destin, Okeanos, TriStates, Wilprise Acquired Creates Gulf “Super System” Gulf
Slide 12: Builds Platform for Significant Growth Opportunities
Builds Platform for Significant Growth Opportunities Active Pipeline of Growth Opportunities to Expand Core Service Offering Establishes sustainable growth trajectory and expansion in core areas ArcLight and affiliates Completed approximately $1.1 billion of drop-downs and affiliate transactions ove
Slide 13: Attractive Cash Flow Benefits
Attractive Cash Flow Benefits Combined company is expected to generate over $300 million in annualized 2018 Adjusted EBITDA Immediately accretive to AMID DCF per unit Low single-digit accretion in 2018 and 2019, approaching double digits in 2020 Strong distribution coverage of 1.1x -1.3x Enhances se
Slide 14: Benefits of the Combined Partnerships
Benefits of the Combined Partnerships Increases Scale Builds Density in Core Growth Areas Approximately $3 billion pro forma enterprise value Attractive acquisition price at single-digit EBITDA multiple Positions for growth opportunities, targeted acquisitions and dropdowns Builds asset density and
Slide 15: Additional Information and Where to Find It
Rule 425 Legend Additional Information and Where to Find It This presentation relates to a proposed business combination between American Midstream and Southcross Energy. In connection with the proposed transaction, American Midstream and/or Southcross Energy expect to file a proxy statement/prospec
Slide 16: Participants in the Solicitation and No Offer or Solicitation
Participants in the Solicitation and No Offer or Solicitation Participants in the Solicitation American Midstream and Southcross Energy and their respective directors and executive officers may be considered participants in the solicitation of proxies in connection with the proposed transaction. Inf
Slide 17: Non-GAAP Measures
NON-GAAP MEASURES This presentation includes supplemental non-GAAP financial measures “Adjusted EBITDA” and “Distributable Cash Flow.” or “DCF”. You should not consider Adjusted EBITDA or DCF in isolation or as a substitute for, or more meaningful than analysis of, our results as reported under GAAP
Southcross Energy Partners — Merger or Acquisition (November 2017) on 6ix