Dakota Plains — Investor Presentation (June 2015)
25 slides from Dakota Plains's investor presentation, Jun 24, 2015
Slide 1: Corporate Presentation June 2015
WWW . DAKOTAPLAINS . COM NYSE MKT: DAKP C ORPORATE P RESENTATION J UNE 2015
Slide 2: Forward Looking Statements
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
Slide 3: Highlights
» Operate the Pioneer Terminal in New Town, ND » Preferred location in the heart of Mountrail County » T hird 90,000 bbl crude oil storage tank operational in July 2015 □ Increases transloading capabilities to 80,000 bopd » Brought all transloading operations in - house effective June 1, 2015 □ Anti
Slide 4: Information
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
Slide 5: Business
5 B USINESS Frac Sand Storage & Transloading Crude Oil Storage & Transloading Crude Oil Logistics & Transport Oil Outbound Sand Inbound
Slide 6: Transformation
T RANSFORMATION 2 Years Ago 2015 i ndirect investment in 3 50/50 JVs 0 o perating control 26 k b/d average throughput 4 ladder tracks 0 crude oil storage $ 28 m in debt at 12 % 100 % o wnership and operating c ontrol c. 50 k b/d average throughput 2 loop tracks and 8 ladder tracks 180 k bbls crude o
Slide 7: Pioneer Terminal
7 F OUR LADDER TRACKS = 10,000 FEET UNIMIN FRAC SAND T ERMINAL 10 STATION RAIL LOADING 10 TRUCK OFFLOAD STATIONS 180 K BBLS STORAGE , 270 K S UMMER 2015 T WO I NBOUND PIPELINES K INDER M ORGAN , P ELICAN & T ARGA P IPELINE CDP S P IONEER T ERMINAL
Slide 8: Location - Logistics
8 Bakken Heat Map – May 13, 2015 publication Crude By Rail Terminals □ One of 3 rail terminals on the Canadian Pacific line □ In the heart of current drilling activity □ Capacity for 5 inbound pipelines; two connected □ Access to only Missouri River bridge crossing for 70 miles Location Highlights:
Slide 9: Location - County Production
9 L OCATION – C OUNTY P RODUCTION Source: RBC Capital Markets Bakken Heat Map – May 13, 2015 publication
Slide 10: Location - Permit Activity
10 L OCATION – P ERMIT A CTIVITY
Slide 11: Operations - Oil
11 □ Land is owned by Dakota Plains Holdings, Inc. □ Commenced operations August 2010 □ Generates revenue through fee/ bbls □ Double loop track, each 120 car capable □ 180,000 bbls of storage, third 90,000 bbls tank scheduled to be operational in July 2015 □ Third loop track and incremental storage
Slide 12: Operations - Sand
12 □ Land is owned Dakota Plains Holdings, Inc. □ Commenced frac sand transloading operations June 2014 □ Generates revenue through fee/ton paid by Unimin □ 8,500 feet of dedicated track space □ 8,000 tons of storage □ Track expansion and additional storage under consideration O PERATIONS - S AND
Slide 13: Pioneer Transloading
13 2014 2015 P IONEER T RANSLOADING
Slide 14: Rail vs. Pipe
14 R AIL VS . P IPE Sources: North Dakota Pipeline Authority (NDPA) Pipeline Volume
Slide 15: Historical Actuals vs. Available
H ISTORICAL A CTUALS VS . A VAILABLE 15 Sources: NDPA Monthly Update June 12, 2015 & Export Options Table • Pipeline takeaway capacity grew from 555,000 bpd in Q4 2014 to 739,000 bpd in Q1 2015 with Kinder Morgan’s Double H & Butte’s Expansion pipelines both coming online. • Montana production is st
Slide 16: Strategic Alternatives
S TRATEGIC A LTERNATIVES Combination Acquisition Recapitalization Sale with other company or MLP of strategic & accretive assets (or company) of debt/equity/structure to buyer pending level of interest Oil Sand Opportunity Set Destination terminals Origination terminals MLP qualified assets Debt syn
Slide 17: Growth
17 17 G ROWTH Phase 4 Phase 5 Phase 6 Phase 1 Phase 2 Phase 3 2010 2017E Tank #3 under construction; operational July 2015 $6m fully funded Loop Track #3 under evaluation $5m est. Tanks #4, #5, & loading expansion $25m est. Tank #6 & infrastructure $6m est. k b/d oil 20 40 80 160 Oil
Slide 18: Priorities
P RIORITIES Tank #3 Construction Operations Efficiency Throughput Contracts Debt Refinancing Strategic Alternatives i ncreased focus on spot volumes bring outsourced operations in - house commission by July 2015 Strategy Committee process on behalf of Board $22.5 million due December 2015 2015 18
Slide 19: Appendix
19 A PPENDIX
Slide 20: Crude By Rail Terminals - July 2015
20 C RUDE B Y R AIL T ERMINALS – J ULY 2015 Dakota Plains New Town - CP c. 80k bpd 3 rd Party OK Storage = 270k BOE Midstream Dickinson - BNSF c. 200k bpd Belle Fourche Pipe Storage ≈ 650k Global/Basin Zap - BNSF c. 60k bpd 3 rd Party OK Storage ≈ 140k Savage Trenton - BNSF c. 175K bpd 2 - Gathering
Slide 21: Q1 2015 Summary Results
1 Q 2015 S UMMARY R ESULTS 21 all results in $mm 1q 2015 1q 2014 Consolidated Revenue $ 9.4 $ 5.5 Net Income $ 0.2 $ (0.4) EBITDA $ 3.9 $ 0.3 Oil Transloading Revenue $ 8.5 $ 5.5 Sand Transloading (a) Revenue $ 0.9 (a) Commenced operations in June 2014
Slide 22: FY 2014 Summary Results
FY 2014 S UMMARY R ESULTS 22 all results in $mm FY 2014 FY 2013 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
Slide 23: EBITDA Reconciliation - Q1 2015 Results
EBITDA R ECONCILIATION - 1 Q 2015 R ESULTS 23 2015 2014 Net Income (Loss) 182,993$ (445,399)$ Add Back: Income Tax Provision (Benefit) 127,500 (514,885) Depreciation and Amortization 1,108,014 1,035,215 Share Based Compensation 509,531 1,128,932 Interest Expense 1,946,742 502,136 Adjusted EBITDA 3,8
Slide 24: EBITDA Reconciliation - Q4 and FY 2014 Results
EBITDA R ECONCILIATION - 4 Q AND FY 2014 R ESULTS 24 2014 2013 2014 2013 2012 Net Income (Loss) 185,474$ 337,304$ 2,256,678$ (1,725,364)$ (2,000,670)$ Add Back: Income Tax Provision (Benefit) 287,155 228,000 (854,993) (1,054,000) (1,380,541) Depreciation and Amortization 1,103,066 47,623 4,332,900 1
Slide 25: Governance
25 G OVERNANCE A DAM K ROLOFF C HAIRMAN OF THE B OARD G ARY A LVORD L EAD I NDEPENDENT D IRECTOR S TEVEN B LANK I NDEPENDENT D IRECTOR D AVID F ELLON I NDEPENDENT D IRECTOR C RAIG M C K ENZIE CEO & E XECUTIVE D IRECTOR B OARD OF D IRECTORS G ABE C LAYPOOL P RESIDENT & COO T IM B RADY CFO J IM T HORN
Dakota Plains Holdings — Investor Presentation (June 2015) on 6ix