INTRODUCTION TO
PROMETHEUS ENERGY GROUP
November, 2011
CONFIDENTIAL AND PROPRIETARY
BACKGROUND INFORMATION
Established in 2008
Privately held by two premier energy-focused private equity groups
• Black River Asset Management: wholly-owned subsidiary of Cargill
• Shell Technology Ventures Fund 1 BV: managed by Kenda Capital
Staff of about 60 people
• Offices in Seattle, Houston and Katowice, Poland
• Field staff in 6 locations around the US
CONFIDENTIAL AND PROPRIETARY
SAFETY: CORE VALUE
Measure
Prometheus Results
Regulatory Violations/Citations
Zero Throughout Company History
Lost Time Incidents
Zero Throughout Company History
Through Shell Technology
Ventures Fund 1 B.V.,
Prometheus has access to, and
has adopted, Shell’s safety
resources and policies
CONFIDENTIAL AND PROPRIETARY
OUR FIRST LNG DELIVERIES
PROMETHEUS TO THE RESCUE
CONFIDENTIAL AND PROPRIETARY
CORE OPPORTUNITY
CONVERT OFF-PIPELINE INDUSTRIALS FROM
CRUDE-DERIVED FUELS TO GAS IN FORM OF LNG
Historic and Projected Prices
For Natural Gas, Diesel and Propane
$25.00
• Gas prices collapsed in recent
years as massive new shale gas
reserves established
4
• Diesel, propane, oil consumers
looking for ability to convert to
gas to capture fuel savings
$15.00
2
$10.00
1
$5.00
Henry Hub Spot
Off Road Diesel
Propane
2025
2023
2021
2019
2017
2015
2013
2011
2009
0
2007
$-
2005
$/MMBTU
3
$/Diesel Gallon Equivalent
$20.00
CONFIDENTIAL AND PROPRIETARY
• Customers off pipeline network
require LNG solutions to
capitalize on opportunity
VALUE PROPOSITION
FINANCIAL AND ENVIRONMENTAL BENEFITS
Customer Savings Example
Conversion From Propane to Prometheus LNG
Environmental Benefits
•
Carbon emissions reduction averaging
20% on life-cycle basis
• Dramatically reduced criteria emissions
$/gal
• Easier permitting
• Lower noise levels
Propane
Customer
Savings
Prometheus
LNG
CONFIDENTIAL AND PROPRIETARY
PROMETHEUS STRATEGY
BUILD LEADING BUSINESS IN EMERGING
NATGAS INDUSTRIAL DOWNSTREAM
Oil Vertical:
Established Downstream
for Industrial Markets
Refining
Raw material
upgraded to
higher value
product…
Distribution
…distributed
by barge, rail,
and truck…
…stored onsite
and processed
for end use
Natural Gas Vertical:
Emerging Downstream for
Industrial Markets
Liquefaction
CONFIDENTIAL AND PROPRIETARY
Storage and
End Use
Distribution
Storage,
Vaporization and
End Use
Vertical Integration
SERVICES PROVIDED
Liquefaction, Distribution,
Onsite Storage and Vaporization
Natural Gas
Reserves
LNG Production
Plants
Trailers
Exploration &
Production
Liquefaction
Distribution
Value Chain
CONFIDENTIAL AND PROPRIETARY
Onsite Storage
& Vaporization
Generators, Engines,
Boilers, etc.
End Use
What We Do
Fuel
Full requirements supply from owned and contracted sources
Onsite storage and vaporization
Flexible term and capital offerings
Operations and maintenance services
Skilled, field-based technician staff
TURNKEY, INTEGRATED PACKAGE OF FUEL, EQUIPMENT AND SERVICES
CONFIDENTIAL AND PROPRIETARY
COMMERCIAL INNOVATION
PIONEERING THE INDUSTRIAL LNG MARKET
The only company 100% focused on
industrial market
Leading commercial innovation
•
•
Developed world’s first conversion projects in
numerous industrial sectors
Established major first-mover advantage
Now the largest and fastest-growing supplier
of LNG to the industrial sector
CONFIDENTIAL AND PROPRIETARY
TECHNICAL INNOVATION
World’s firsts
•
•
•
2008: Landfill gas-to-LNG plant
2010: Flare gas-to-LNG
2011: Coal mine gas-to-LNG
Other technical innovations
•
•
Proprietary designs for customer kits
Coal mine gas-to-CHP
CONFIDENTIAL AND PROPRIETARY
INNOVATION
COMMERCIAL AND TECHNICAL INNOVATION:
DRIVING RAPID, SCALABLE GROWTH
Average Gallons/Month
900,000
800,000
700,000
Avg. Gal./Mo./Employee
25,000
Up 284%
20,000
Up 332%
600,000
15,000
500,000
400,000
10,000
300,000
200,000
5,000
100,000
-
-
2010
2010
2011
2011
Similar growth rates expected for 2012
CONFIDENTIAL AND PROPRIETARY
RELIABILITY
RELIABILITY GREATER THAN 99.8%,
WHILE GROWING VOLUMES NEARLY 400%
Logistics, Supply and Reliability
• Control center in Seattle
headquarters
• PEG able to supply anywhere
in the continental U.S. and
much of Canada
• Delivery reliability of >99.8%
CONFIDENTIAL AND PROPRIETARY
Sales Under Contract
Sales In Negotiation
LNG Supply (Owned,
Contracted or Under
Negotiation)
INNOVATION & GROWTH
Recognized as the proven solution provider in new industrial segments
Example: American Natural Gas Association sponsorship
Increasingly recognized as leader in small-scale LNG development
Example: 2011 Platt’s Award -Rising Star category
CONFIDENTIAL AND PROPRIETARY
LNG SILESIA
Joint venture based in Silesia, Poland
Majority owned by Prometheus Energy Group
Developed Zory and Krupinski projects
• Zory: 2MW coal mine gas-to-CHP
• Krupinski: world’s first coal mine gas-to-LNG plant
Building industrial-focused LNG business modeled
on Prometheus’ US business
• Similar concept and strategy
• Similar first mover advantage
CONFIDENTIAL AND PROPRIETARY