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

2016 MLPA Investor Conference June 2, 2016

Green Plains Partners LP

Todd Becker

President & Chief Executive Officer

Green Plains Partners LP | NASDAQ: GPP | www.greenplainspartners.com

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This presentation includes forward-looking statements within the meaning of federal securities laws. Statements that do not relate strictly to historical

• r 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 market conditions or

• ther factors. Such statements are based on current expectations, forecasts and projections, including but not limited to, anticipated financial and
• perating 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.

Forward-Looking Statements

Partnership Overview

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Green Plains Partners LP

• Formed in 2015 by Green Plains Inc. to provide fuel storage and transportation services by owning,
• perating, developing and acquiring ethanol and fuel storage tanks, terminals, transportation assets and
• ther 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 Production Storage, Marketing, Transportation, & Logistics Terminal Services Distribution Green Plains Partners’ Initial Assets Downstream Upstream

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RAIL SYSTEMS NORFOLK SOUTHERN BNSF UNION PACIFIC CANADIAN NATIONAL

FAIRMONT SUPERIOR LAKOTA ATKINSON ORD WOOD RIVER CENTRAL CITY SHENANDOAH OMAHA OBION RIGA BLUFFTON OKLAHOMA CITY LITTLE ROCK BOSSIER CITY COLLINS BIRMINGHAM NASHVILLE LOUISVILLE OTTER TAIL

GPP’s ASSETS ETHANOL STORAGE FACILITIES BIOFUELS UNIT TRAIN TERMINAL BIOFUELS TERMINALING FACILITIES GREEN PLAINS’ ASSETS CORPORATE HEADQUARTERS ETHANOL PRODUCTION FACILITIES

HEREFORD HOPEWELL

Partnership Assets

• Ethanol Storage Facilities

30 ethanol storage facilities located at or near Green Plains’ 14 ethanol production plants with production capacity of 1.2 bgy

• Fuel Terminal Facilities

Fuel terminal facilities at eight locations in seven south- central U.S. states.

• Transportation Assets

~2,550 railcars and trucking capabilities

Assets with low operating capital requirements and useful life of 20+ years

Strategically located near major rail lines in nine U.S. states enabling transportation to diverse geographic areas

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Our Parent  Green Plains Inc.

$68 $130 $149 $116 $157 $351 $127

2009 2010 2011 2012 2013 2014 2015 All Others  8.8

• 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

EBITDA (in millions) US Ethanol Production Capacity (bgy)(1)

1) Renewable Fuels Association Dec 2015 2) POET does not own 100% of all production capacity

ADM  1.8 POET  1.7(2) Flint Hills  0.8 Valero  1.3 Green Plains  1.2 Top five producers account for 43% of overall production capacity

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Operating Segments

Green Plains Inc.

Agribusiness Ethanol Production Marketing & Distribution Partnership Upstream Downstream

• 56 mmbu of grain storage capacity
• 70,000-head capacity cattle feedlot with 2.8 mmbu of feed storage
• 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

• Merchant trading of 12 commodities
• 1.3 billion gallons sold in the last twelve months
• Fuel storage and transportation services

Green Plains moves meaningful volumes and positions across the agricultural and energy supply chain

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• 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

Agreement (mmg) Minimum commitment Rate per gallon Remaining Term Storage and throughput services 986 mmgy $0.0500 9.25 yrs Terminal services (Birmingham) 33.2 mmg $0.0355 1.75 yrs Railcar capacity (daily

• avg. gallons mm)

76.9 mmg $0.0358 5.25 yrs

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 110%

• 25

50 75 100 125 150 175 200 225 250 275 300 325 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

Stable, Fee-Based Cash Flows

Our Relationship with Green Plains Inc.

Commercial Agreements with Green Plains Trade(1) Green Plains Production & Utilization History

(mmgy) (% of capacity)

1) Quarterly report on Form 10-Q as of 3.31.16

Page 10 2016 MLPA Investor Conference | 6.02.16 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

Liquidity & Capital Structure

Green Plains Inc.

Total Assets: $1,919 million Total Debt: $777 million Assets as of March 31, 2016 Debt as of March 31, 2016

Inventories & A/R 24% Cash 21% Plant Term Debt 40% Property & Equipment 48% Convertible Notes 14% Other 10% Working Cap Revolver 36% Other Assets 7%

(in millions)

Ethanol Industry Overview

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Domestic Ethanol Landscape

12.0 12.5 13.0 13.5 14.0 14.5 15.0 15.5 2010 2011 2012 2013 2014 2015 2016P

U.S. Demand U.S. Net Exports U.S. Production

• 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)

Rest of world  6% China  3% EU  5% Brazil  28% United States  58%

Top Global Ethanol Producers (2015)

Source: U.S. Dept. of Energy, Energy Information Administration, U.S. Dept. of Agriculture, Renewable Fuels Association

United States and Brazil accounted for ~86%

• f world ethanol production in 2015

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15 17 19 21 23 25 27 29 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 12,000 14,000 16,000 18,000 20,000 22,000 24,000 26,000

Weekly U.S. Ending Stocks Total Days of Demand

• First quarter production outpaced demand
• Cold weather ideal for ethanol production
• Gasoline demand seasonally low; 3-year

average demand is 5.4% lower in Q1 than Q4

• Days of production demand are dropping from

Feb 2016 record inventory levels

• Implications of increased demand in relatively

tight industry

Domestic Ethanol Supply & Demand

Industry Fundamentals

(thousand barrels) (days)

Source: Energy Information Administration as May 20, 2016

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• Drivers for increased ethanol demand:
• Gasoline demand
• Higher ethanol blends
• Export demand
• Demand for co-products

Margins in the Current Environment

Industry Fundamentals

(thousand barrels) ($ per gallon)

Source: Energy Information Administration as May 20, 2016, company information

• $0.50
• $0.25

$0.00 $0.25 $0.50 $0.75 $1.00 $1.25 $1.50 14,500 16,500 18,500 20,500 22,500 24,500 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16

Ethanol Inventory Weekly AvgCrush Margins

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• U.S. weekly implied gasoline demand is strong going into a seasonally more favorable quarter
• Four-week average gas demand has been 145.9 bgy, up 3.9% from a year ago
• Ethanol blending is up ~3% YoY, approaching 900k+ barrels/day

Domestic Gasoline Demand

Ethanol Industry Drivers

8.0 8.5 9.0 9.5 10.0 10.5 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

5-year range 2015 2016

(million barrels per day)

Source: Bloomberg

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• 2016 National Ethanol Conference participants are

projecting blend volumes will increase

• 65 mmgy in 2016, additional 120 mmgy in 2017
• Major retailers are converting stations to E15; consumers

are choosing cheaper gas

• 33% of total fuel gallons sold at Minnoco (Minnesota)

is E15; targeting 50% of total fuel sales by 2017

• Kum and Go (Midwest) will sell E15 at 110+ stores

in 2016

• Thorntons (Midwest and MidSouth) offering E15 at all

Chicago locations with conversions starting this spring

• Auto makers have explicitly approved the use of E15

in more than 70% of 2016 models sold in the U.S.

Higher Ethanol Blends

Ethanol Industry Drivers

Source: Renewable Fuels Association, 2016 data as of April 2016

U.S. Retail Stations Offering E15 Retailers Selling Higher Blends

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• 200

400 600 800 1,000 1,200 1,400 2010 2011 2012 2013 2014 2015 March 2016 YTD 20 22 24 26 28 30 32 34 36 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Global Ethanol Demand Global Ethanol Supply

Demand surpasses supply in 2017

Basics

• Global production was 25.6 billion gallons in 2015
• Global demand has been growing by 2-3% annually

and projected to surpass supply in 2017

• ~6% of domestic ethanol was exported in 2015
• Domestic exports are anticipated to increase to

between 900 mmg and 1 billion gallons in 2016 Drivers

• Global mandates on the rise and growing
• Argentina raised its blend mandate by 2% to 12%
• Peru looking to expand
• Pemex (Mexico) privatization may accelerate

ethanol blending to replace MTBE

Export Demand is Growing

Ethanol Industry Drivers

Global Ethanol Supply and Demand Forecast (bgy) Domestic Ethanol Exports (thousand gallons)

Source: Renewable Fuels Assoc., Energy Information Administration

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$0.11 $0.12 $0.13 $0.14 $0.15 $0.16 $0.17 $0.18 $0.19 $0.20 $0.21 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16

China  30% Brazil  20% India  5% South Korea  6% Canada  18% Rest of world  21%

Why US Ethanol?

• ~250 mmg of U.S. ethanol exported in Q1-2016
• ~80% went to five countries in Q1-2016
• U.S. ethanol is the most economical oxygenate and
• ctane enhancer in the world
• Equivalent value of sugar produced from corn

is 8 cents per pound based on $3.80 per bushel

• Sugar was 17.5 cents per pound on May 27, 2016

Why Green Plains Ethanol?

• All of our plants are capable of producing export spec

for maximum flexibility

• 26% of our ethanol production was exported

in Q1-2016

Export Demand is Growing

Ethanol Industry Drivers

Ethanol Export Mix: Mar 2016 YTD Price of Sugar per Pound

Source: Energy Information Administration

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• World protein demand is projected to increase

demand for animal feed ~4%

• ~25% U.S. distillers grains exported in 2015
• 2.4 million metric tons of U.S. distillers grains exported

in Q1-2016

• ~70% went to six countries in Q1-2016

Case Study: Argentina Spring Rains

• Three week disruption in world soybean meal market

due to heavy rains in March-April

• Price of soybean meal has increased 32% since

March 31, 2016

• Relative value of distillers grains to corn has moved

from 85% in Jan 2016 to 105% in May

Demand for Co-Products

Ethanol Industry Drivers

260 280 300 320 340 360 380 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16

• 50

100 150 200 250 300 2010 2011 2012 2013 2014 2015 2016

Soybean Meal DDGs

Price of Soybean Meal (mt) Relative Value of DDGs to SBM

Market disruptions can cause sharp responses in prices

Focused on Growth

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Production Rate Impact on the Bottom Line

Power of the Platform

Parent production capacity of 1.2 bgy Utilization rate Q1-16 90% 95%

Storage and throughput volume per quarter (91 days)

247 mmgy 273 mmgy 288 mmgy

Storage and throughput revenues per quarter(1)

$12.38 mm $13.60 mm $14.4 mm Distribution coverage ratio 1.02x 1.10x 1.15x

• Our parent’s production run rate averaged 87% over the last three quarters versus historical

average of 95.3%

• Anticipated production run rate is ~94% for the rest of 2016 based on the current ethanol margin structure
• Hopewell plant is running close to its operating capacity

1) Calculated using a rate of $0.05 per gallon, based on Q1-16 results for revenues and expenses

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Growth

• Expand downstream logistics

activities

Operational Excellence Ownership & Management

• Operate assets with minimal

downtime and high utilization

• Align interest with unitholders
• Senior management team

experience averages 25 years

Downstream Development

• Provide third-party ethanol

producers downstream distribution services

Organic Growth

• Green Plains expansion

projects

• Minimal growth capex

Accretive Acquisitions

• Pursue acquisitions jointly

and independently

• 5-year ROFO on selected

assets from Green Plains

Interests are Aligned with our Parent

Power of the Platform

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Multiple Avenues for Growth

Power of the Platform

• Production growth by our parent
• Expand existing production capacity; capability to increase 50 mmgy
• Acquire production assets
• Partnership has five-year right of first offer on selected assets
• Downstream distribution services development
• Acquire or build new downstream terminals
• Review opportunities for import/export operations
• In progress: Joint venture with Delek US to build a unit-train terminal in Little Rock, AK

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• Ethanol industry fundamentals are improving since first quarter 2016
• Parent has ample liquidity and is well-positioned for growth
• Partnership structure conducive for growth
• Low maintenance capital and organic growth capital requirements
• Revolving credit facility at Green Plains Partners provides significant liquidity to support

growth of the business

• Maintain conservative target leverage ratios at Green Plains and Green Plains Partners
• Compelling opportunities in the business development pipeline for both companies

Power of the Platform

Green Plains Inc. | NASDAQ: GPRE | www.gpreinc.com Green Plains Partners LP | NASDAQ: GPP | www.greenplainspartners.com

Appendix

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For the three months ended

• Mar. 31, 2016
• Dec. 31, 2015

Storage and throughput services (mmg)(1) 247.0 248.8 Terminal services: Affiliate 28.7 25.4 Non-affiliate 44.2 51.7 72.9 77.1 Railcar capacity billed (daily avg. gallons, in mm)(1)(2) 72.9 63.6

Selected Operating Data

Green Plains Partners LP

(1) Volumetric data for periods before July 1, 2015, is not considered meaningful. (2) Full-year railcar capacity is based on capacity since July 1, 2015, when commercial agreement became effective.

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For the three months ended

• Mar. 31, 2016
• Dec. 31, 2015

Net income $12.2 $12.1 Interest expense 0.3 0.2 Income tax expense 0.2  Depreciation and amortization 1.2 1.4 Transaction costs  0.5 Unit-based compensation expense  0.1 Adjusted EBITDA $13.9 $14.3 Less: Interest paid and payable 0.3 0.1 Income taxes paid or payable 0.2  Maintenance capital expenditures 0.1 0.1 Distributable cash flow(1) $13.3 $14.1 Distribution declared(2) $13.1 $13.1 Coverage ratio 1.02x 1.08x

Adjusted EBITDA and DCF

Green Plains Partners LP

(in millions)

(1) Distributable cash flow for periods before July 1, 2015, is not considered meaningful. (2) Represents distributions declared for the applicable quarter and paid in the subsequent quarter.

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Assets

• Mar. 31, 2016
• Dec. 31, 2015(1)

Current assets $20.0 $33.9 Property and equipment, net 41.4 41.9 Other assets 19.8 20.0 Total assets $81.2 $95.8 Liabilities and Partners’ Capital Current liabilities $11.0 $13.6 Long-term debt 58.9 7.9 Other liabilities 2.7 2.5 Total liabilities $72.6 $24.0 Total partners’ capital 8.6 71.8 Total liabilities and partners’ capital $81.2 $95.8

Condensed Balance Sheet

Green Plains Partners LP

(in millions)

* (1) Recast to include the historical balances of assets acquired in a transfer between entities under common control.

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For the three months ended

• Mar. 31, 2016
• Dec. 31, 2015

Revenues $23.8 $22.7 Operating expenses $11.1 $10.4 Operating income $12.7 $12.3 Other expense ($0.3) ($0.2) Income before taxes $12.4 $12.1 Net income $12.2 $12.1 Earnings per limited partner unit  basic and diluted $0.38 $0.37

Consolidated Income Statement

Green Plains Partners LP

(in million gallons, except per unit amounts)

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Green Plains Partners LP (partnership) Throughput gallons (millions) 160 Rate per gallon $0.05 Projected EBITDA (millions) $8.0 throughput gallons X rate per gallon Drop down multiple 8.0x Purchase price of storage assets (millions) $64.0 EBITDA x drop down multiple Green Plains Inc. (sponsor) Acquisition price $98.0 Production gallons (millions) 160 Acquisition price per gallon $0.61 New asset price after drop down (millions) $34.0 acquisition price – partnership purchase price New asset price per gallon $0.21 asset price after drop down / gallons

Drop Down Valuation

Hopewell and Hereford Storage & Transportation Assets

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• 50%
• 40%
• 30%
• 20%
• 10%

0% 10% 20% 30% 40% 50% 2010 2011 2012 2013 2014 2015 2016 2017

Ethanol Spread to RBOB

Ethanol Industry Drivers

Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 RBOB $1.62 $1.63 $1.62 $1.60 $1.47 $1.43 Ethanol $1.64 $1.64 $1.62 $1.60 $1.58 $1.55 Ethanol Price vs. RBOB $0.02 $0.01 ($0.00) ($0.00) $0.11 $0.12 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 RBOB $1.41 $1.41 $1.42 $1.44 $1.66 $1.67 Ethanol $1.53 $1.51 $1.51 $1.51 $1.51 $1.51 Ethanol Price vs. RBOB $0.11 $0.10 $0.09 $0.07 ($0.15) ($0.16) Historic Ethanol Discount-Premium to RBOB

Source: CME Group