SEG Company Profile - Strobel Energy€¢ Provide engineering for rail and truck terminal including conceptual layouts, ... •Buildings •Drainage •Load ... • Conceptual layout,

Company ProfileEngineering/Manufacturing/Construction/Logistics

Mid Stream Energy Infrastructure Facilities

Winter 2018Strictly Private and Confidential

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SEG Corporate Overview

Executive Summary

Strobel Energy Group provides engineering, construction and operations for bulk, liquid rail and terminal facilities

• A family business heritage of 68 years, born out of a blacksmith shop in 1946

• Routinely work with owner on full project development

• Provide engineering for rail and truck terminal including conceptual layouts, storage, load/unload timelines, rail/truck movements, piping systems, mechanical, electrical and civil

• First to market in refined fuels and crude by rail terminal facility design/build

• Able to self-perform majority of construction scope on most projects

• Provide new project and existing facility expansion

• Strong relationship with class one & short line railroads; Interact with rail carriers on owners behalf

• Truck and pipeline automated LACT skid unit design/build/operate

• Understand customers origination/destination pair (OD Pair) dynamics

• Understand multiple commodity movement systems and design/build facilities accordingly

• Experience in multiple commodities: crude, gasoline, diesel, ethanol, bio diesel, sand, plastics

• R, S & U Stamp Certified – ASME & NBIC

• Provide facility operations and transloading services via Strobel Energy Logistics

• Provide fabrication and manufacturing services via Strobel Manufacturing, Inc

Corporate Overview

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Business Model Summary

The Strobel Companies are an affiliated group of entities that work in collaboration to provide services across the energy sector:

• Strobel Energy Group provides engineering and construction services to the energy sector with a focus on facilities that move liquid barrels via rail or truck

• Strobel Energy Logistics is a service company that provides alignment between our customers, integration with rail and/or trucking to facilitate delivery of products at transload and terminal facilities

• Strobel Manufacturing provides equipment and component fabrication to support clients and projects for customers as well as the other Strobel companies

Corporate Overview

Strobel Companies

Strobel Energy Group

Strobel Energy Logistics

Strobel Manufacturing

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Locations and Disciplines

The company is headquartered in Clarks, Nebraska with operations and personnel located in various locations. A profile of the offices and capabilities is as follows:

• Clarks, NE: Management, Project Management, Project Estimating, Document Control, IT, HR, QA/QC, Engineering, Fabrication, Logistics, Admin

• Omaha: Engineering, Accounting & Finance, Project Management

• Sioux City, IA: Director of Field Operations

• Kansas City: Marketing, Project & Business Development, Logistics Operations Center

• Oklahoma City: Environmental Health & Safety, Logistics Management, Logistics Operations Center

• St. Louis, MO: Logistics Operations Center

• Amarillo, TX: Logistics Operations Center

• Tyler, TX: Logistics Operations Center

• Camden, AR: Logistics Operations Center

• Abilene, TX: Logistics Operations Center

• Etter, TX: Logistics Operations Center

• Alberta, Canada: Engineering

• Nuevo Laredo, Mexico: Project development and market support

Corporate Overview

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Corporate Overview

Corporate Timeline

1986 2010 2011 2012 2013 2014

Design & Build 1st CBR Unit

Train Unload Terminal

EOG ResourcesStroud, OK

Strobel Starostka

Construction (SSC)

Formed

Design & Build EOG

Frac Sand Terminal

Refugio, TX

Design & Build Eighty

Eight Oil Crude Oil Loading Facility

Ft Laramie, WY

Executes Contract,

Begins Design & Construction of NorthStar

Crude Transloading &

Inbound Commodities

Facility Fairview, ND

Design & Build Hess Terminal

Tioga, ND

Strobel Construction

Formed

Design & Build Flint Hills Resources Crude Oil

Loading Facility Odessa, TX

2015

Executes Contract,

Begins Design & Construction of Phillips 66 Crude Oil Unit Train Terminal

Facility Palermo, ND

Mexico Market:

Tierra Firme Midstream

(Refined Products)

& Tierra Firme

LLC(own assets)

Formed

Design & Build LPT Terminal

Pro Petroleum Las Vegas, NV

Design & Build NuStar/EOG

Crude Oil Unloading

Facility St. James, LA

2016

Mexico Energy Reform

Evaluation:Demand, Supply,

O/D Pairs, Midstream

Infrastructure , Regulatory,

Economics, Site Selection

2017

Revised Ownership & Co Name to Strobel

Energy Group

Design & Build Bakken Oil

Express Terminal

Dickinson, ND

Commissions Phillips 66

Crude Oil Unit Train Terminal

Facility Palermo, ND

&NorthStar

Crude TerminalFairview, ND

Established Strobel Energy

Logistics –Initiated

Transloading Operations at Five Locations

Initiate Design & Build GPC

Ethyl Acetate Plant in

Columbus, NE

Op

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Turnkey from Development to EPC to Operations

SEG Corporate OverviewCorporate Overview

Engineering

• Conceptual Plan

• FEED

• Feasibility Study

• Product Volume & Segregation

• Hydraulics

• Storage

• Rail/Truck Movements

• Loading/Unloading

• Piping & Isometric

• Process Flow

• Mechanical

• Civil & Structural

• Instrumentation & Electrical

• LACT

• CapEx Estimate

Procurement

• Purchasing

• Material & Equipment

• Subcontractors

• Contract Admin

• Logistics

• Schedule

• Document Control

• Permitting

Construction

• Earthwork

• Civil

• Structural

• Foundations

• Mechanical

• Rail

• Roads

• Buildings

• Drainage

• Load / Unload Racks

• Instrumentation

• Electrical

• Fire Protection

• Vapor Control

• Commission/Start Up

EH&S, Quality Control

Terminals: Crude, Fuels, Sand

• Expertise in planning and construction of terminals and bulk storage facilities

• Experience covers all applications including terminals and bulk storage for refined fuels, crude oil, ethanol and natural gas; marine marketing terminals; and rail facilities

• Scopes span from initial construction to expansion, upgrades and retrofitting within existing facilities, often while facilitiesare in full operation

Rail and/or Truck Served• Industry leader in configuration, build options for rail loading and unloading facilities

• Experience stretches across both manifest rail car and unit train facilities throughout North America

• Rail offerings are bolstered by Strobel’s understanding of current environmental practices, including SPCC compliance; design options to vapor control “fugitive” product through design methods including vapor balance, vapor recovery units (VRUs) and vapor combustion units (VCUs) to meet strict regulatory requirements

Storage Tanks

• Cone bottom, cone roof, dome roof, internal floating roof, stand pipes, open top floating roof, sloped/dished bottom tanks

Load/Unload Rack

• Straight loading, sequential blending, ratio blending, truck unloading, rail loading, off-loading

Transload Facility Operations

• Equipment and Personnel to operate crude and refined fuels loading or offloading across the US

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Corporate Overview

Capabilities

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Corporate Overview

Safety Performance

Experience Modification Rate

Recordable Incident Rate and Lost Time Rate

Number of FatalitiesStrobel has had zero fatalities in the last three years. Our subcontractors and vendors have had zero fatalities on Strobel projects in the past three years.

Statistic Most Recent 12 months 3 yr Avg. (2014 – 2016)

Total Recordable Injury Rate 0.0 0.94

Lost Workday Injury Rate 0.0 0.31

Year Rate Modified State

2017 0.74 Interstate



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Corporate Overview

Quality Control Programs, Certifications, and Codes

• American Society of Mechanical Engineers (ASME)

– S Stamp Certified - Power Boiler

– U Stamp Certified - Unfired Pressure Vessels

– PP - Pressure Piping

• National Board Inspections Code (NBIC)

– R Stamp Certified - Boiler Repair

• American Welding Society (AWS)

• American Society of Nondestructive Testing (ASNT)

• International Code Council (ICC)

• National Association of Corrosion Engineers (NACE)

• American Society for Testing Metals (ASTM)

• American Institute of Steel Construction (AISC)

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Corporate Overview

Pressure Vessel Fabrication Capabilities

• Design, assembly and fabrication of various pressure vessel components:

Reactor

Column

Vertical Vessel with Lug Support

Vertical Vessel with Leg SupportHorizontal Drum on Saddle Supports

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Corporate Overview

Transload Terminal Facility Operations: Strobel Energy Logistics

• Provide personnel and equipment for terminal transload facility operations

• Strobel operates truck to rail, and rail to truck transloading facilities across the US.

• Product capabilities include: crude, gasoline, diesel and bio diesel

• Present operations are being providing at terminals in Arkansas, Kansas, Illinois, Oklahoma and Texas

• Operators are DOT and Hazmat trained and have extensive experience in various loading and offloading scenarios and understand the complexities and sensitivities around product custody, volumetric accuracy and awareness of health, safety and the environment

• Seasoned logistics management team provides the oversight, communications, backroom support and logistics tools needed to ensure a well-run terminal facility

• Transloading Equipment: Transload trailers, boilers, man-lifts, lighting, tow vehicles

12= Current Strobel Transload Facility

Corporate Overview

Current Transload Facility Operations: US Rail Network

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Corporate Overview

Rail Design Capabilities

• Animated Rail Car Movement Simulations• Real time video creation during concept stage

• Allows design basis confirmation

• Confirms geometry and switching assumptions

• Assists in logistics and manpower estimates

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Corporate Overview

Automated Meter Skid LACT Units

• Strobel and A&E have developed automated meter skid LACT units for truck and pipeline terminals

• Provide real-time, remote access volumetric product movements

• Minimizes product volume discrepancies

• Allows real-time billing

• Provided either for purchase or lease with operations

• Provides surveillance and ability to monitor drivers and carriers

• Provided with meter and/or LACT equipment

METER SKID AND LACT EQUIPMENT,

WITH PUMP

PIPELINE LACT EQUIPMENT, WITH

PUMP

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Corporate Overview

Bio Fuels Experience: Ethanol and Bio Diesel

• EPC contractor on Ethanol to Ethyl Acetate catalytic process technology facility– Prairie Catalytic, Columbus, NE

• EPC contractor on Ethanol Terminal Facility in Ft. Worth, TX:– In bound rail, out bound truck

– Unit Train and manifest

– Storage, Racks

• Bio Diesel Transloading and Logistics:

– Providing equipment and personnel to operate bio diesel transloading

– Rail siding, staffing and equipped with transload trailers and boilers • St Louis, MO

• Kansas City, KS

• Oklahoma City, OK

• Amarillo, TX

• Ethanol Transloading:– Providing in bound ethanol off loading via rail in Tyler, TX

• Conceptual Layout of Rail Service Yard and Loading/Unloading Facilities

• Preliminary Construction and Commissioning Schedule for Conversion to High Speed Facility

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Corporate Overview

Mexico Market

• Involved in Mexico Energy Reform:• Began evaluating this market opportunity in 2015

• Established entities for performing work in Mexico

• Collaborate with US refiners to secure supply with customers in Mexico

• Assist in logistics, registrations and Mexico customs import matters

• Assist in site selection and facility rail service for US origination and Mexico destination terminals

• Facilitate the export of fuels (from refiners) to Mexico from the US

• Logistics, import/export, testing, manifest, BOL support

• Interim Transloading:• Provide transloading for manifest movements from US to Mexico

• Own fleet of transloaders and offer operations services for outbound movements

• Affiliate Tierra Firme Midstream is established in Mexico:– Tierra Firme Operaciones S. de R.L. de C.V.

– Tierra Firme Servicios S. de R.L. de C.V.

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Corporate Overview

Polyethylene Experience: Example Project

• Pre-Feed Study:• Provided Analysis for Pre-Feed Study to Support Client on Bid for Large Scale PPE Facility

• Conceptual Description and Order of Magnitude Cost Estimate (+50%/-30%) for:

• Rail Service Yard

• Railcar Cleaning and Maintenance Operations with Jackpads

• De-heeling/Washing and Loading Facilities Aligned with the Principles of Operation Clean Sweep

• PPE Loading of Hopper Cars

• Multiple Liquid Feed and Byproduct Streams

• MEG Loading Rack to Support Tanker Trucks

• Dust Collection System

• Spin Loading of PPE Railcars

• Warehousing

• Preliminary power and utilities assessment

• Provided Organization Structure and Manpower Requirements, Maintenance and Operating Costs

• Conceptual Layout of Rail Service Yard and Loading/Unloading Facilities

• Preliminary Construction and Commissioning Schedule

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Corporate Overview

Frac Sand Market Experience:

• Design/Construction of Sand Commodity Terminals:• Inbound via rail, onsite storage, conveyance, outbound truck

• Often in multi-commodity facilities (co-located with crude)

• CapEx and OpEx co-development modeling with customers

• Organization structure and manpower requirements, maintenance

• Conceptual layout, facility design, rail service yard, switching, loading/unloading

• Construction and commissioning schedule

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Corporate Overview

Frac Sand Market Experience: Various Configurations

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Corporate Overview

Management Team

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Corporate Overview

Management Team

Experience Years Experience

Matt ElsburyVice President

27 Belinda StrobelSecretary / Treasurer

• Strobel Energy Group: Owner• Strobel Manufacturing: Owner

Steve StrobelPresident / CEO

• Strobel Energy Group, Strobel Energy Logistics: Owner• Tierra Firme Midstream: Owner• Strobel Manufacturing: Owner• 25 years design/build on industrial, oil & gas facilities

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Jordan DowdyCFO

• Watts Electric Company• Judds Bros. Construction Company• Apollo Steel Company

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14 • Strobel Energy Group: VP of Construction• Starostka Group: Project Manager

Matt ElsburyVP Construction

Bryan FergusonProject Development

• Blue Streak Capital: Managing Partner• The Shaw Group, Inc.: Vice President• Empire Energy Corp: President• Professional Service Industries: Project Manager

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Corporate Overview

Management Team

Experience Years Experience

Scott VincentVP EH&S

• Strobel Energy Logistics• EOG Corporation: Crude Oil Rail Terminal EHS Coordinator • U.S. Post Office Air Mail Facilities: EH&S Director• Environmental Transportation Services, Inc.

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Jason Babcock, P.E.Director of Engineering

• Zachry Engineering Corporation: Project Manager• Nebraska Boiler: Project Manager• Roll-Kraft: Design Engineer• Huffman Engineering: Mechanical Engineer

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• Strobel Energy Group: Director, Sr Field Project Manager 32 RJ Petrik

Director of Field Operations

Heather Webb, MSHR Director

• Watco Companies: HR Advisor & Sr Benefits Administrator• Superior Industries: Human Resources Specialist 15

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Corporate Overview

Example Project Profiles

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Example Completed Projects

Customer Location Facility Type Date Completed

BNSF Phoenix, AZ Refined Products Off-Loading Terminal 2005

Musket Corp Ft Worth, TX Ethanol Terminal 2008

Pro Petroleum Las Vegas, NV Refined Products Terminal 2010

Hess Corp Tioga, ND Crude Unit Train Loading 2011

Bakken Oil Express Dickinson, ND Crude Unit Train Loading, Frac Sand Unloading 2011-13

EOG Resources Stroud, OK Crude Unit Train Unloading 2012

EOG Resources Refugio, TX Frac Sand Mfg, Unit Train Unloading & Truck Loading 2012

Flint Hills Resources Odessa, TX Crude Unit Train Loading 2012

Valero Sunray, TX Refined Products Train Loading 2012

NuStar Energy/EOG St. James, LA Crude Unit Train Unloading 2013

Eighty-Eight Oil Ft. Laramie, WY Crude Unit Train Loading 2014

Meritage Black Thunder Wright, WY Truck to Railcar Crude Transloading 2015

NorthStar Fairview, ND Crude Unit Train Loading & Inbound Freight Terminal 2015

P66 Palermo, ND Crude Unit Train Loading 2015

Delek Tyler, TX Refined Products Train Loading/Unloading Design 2016

Agri Empresa Pecos, TX Multi Commodity Train Load/Unloading 10/30 Rail Design 2016

Prairie Catalytic Columbus, NE Ethanol – Ethyl Acetate Catalytic Process Facility EPC In Progress

Delek US Camden, AR Gasoline & Diesel Transload Facility EPC, Operations 2017

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Corporate Overview

Completed Projects:

BNSF

•Rail Yard

•Phoenix, AZ

GPC

•Ethyl Acetate

•Columbus, NE

Delek

•Fuel Terminal

•Camden, AR

Customers

Corporate Overview

Phillips 66 Bakken Terminal Palermo, ND

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Project Description:

• Completed 2016

• 100,000 BOPD three rail loop track, high speed crude oil loading terminal, 300,000 bbls storage, 20,000 BOPD inbound truck unloading rack, 12 – 14 hour fill time per unit train.

Strobel Scope, Scale, Role: Project Development, Site Selection, EPC Contractor; 18 months duration.

Corporate Overview

Hess Corporation Terminal FacilityTioga, ND

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• Unit train loading facility

• Transload site to move unit trains on BNSF’s main line

• Constructed 32,000 feet of track with 12 turnouts

• 21 arm loading rack

Scope, Scale, Role:

• Strobel Energy Group was EPC Contractor

• Site Selection

Corporate Overview

BNSF Mobest Rail YardPhoenix, AZ

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• Rail off-loading facility

• Manifest 4 ladder track configuration

• ~ 60 car capacity

• Four arm liquids off-load rack, mechanical, civil, structural

Scope, Scale, Role:

• Completed 2005


Corporate Overview

Delek US Tyler, TX

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• Fuels Transloading Terminal; Rail Expansion to Unit Train Loading/Offloading, Operations

• Design, construction, operations refined fuels for export to Mexico

Strobel Scope, Scale, Role: Project Development, Site Selection, EPC Contractor, Operator

Corporate Overview

Bakken Oil Express TerminalDickinson, ND

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• Unit train loading facility in Bakken

• Avg 150,000 bpd

• Moves crude on BNSF’s main line

• Inbound frac sand, cement, consumables

• Facility continues to grow at rapid pace, expanding rail and tankage infrastructure

Scope, Scale, Role:

• Various EPC projects


Corporate Overview

NorthStar Terminal FacilityFairview, ND

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• 160,000 BOPD outbound high speed crude, 20,000 BOPD outbound truck-to-rail crude transloading, 2 Unit trains per day; 12 station truck unloading facility, inbound commodities and 762,000 BBL crude storage. Facility designed to sustain continued growth; Straight-track loading process reduces fill times to 12 hours per unit train

Scope, Scale, Role:

• Commissioned 2015; Strobel Energy Group was EPC Contractor

Corporate Overview

Musket Ethanol Terminal Facility

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• Ethanol terminal with inbound rail and outbound truck capabilities located on the BNSF rail system. Unloading Train/Manifest Cars, Storage/Loading, 24/7 Service Hours. Able to unload a 96 railcar unit train of ethanol in 24 hours. Terminal has 10 million gallons of dedicated on-site storage capacity. Up to eight outgoing tanker trunks can be loaded within an hour.

Scope, Scale, Role:

• Commissioned 2008; Strobel Energy Group was EPC Contractor

Corporate Overview

EOG Frac Sand Terminal: Refugio, TX

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• 20,000-ton frac and resin sand enhancement plant, completed 2012

• Ten 28-foot-diameter by 120-foot-high slipform silos

• Each silo has 9” slipform walls, elevated 3’ thick overhead bin bottom slab, and concrete roof

• Silos constructed so trucks can drive through for product loadout

Scope, Scale, Role:


• Assisted in Site Selection

Example Project Pictures

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Strictly Private and Confidential

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Strobel Energy Project – Wyoming

April 2016Strictly Private and Confidential

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Strobel Energy Project – North Dakota


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Transloading - Texas


Frac Sand - Texas

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Strobel Energy Project – Nevada


➢ Las Vegas, NV➢ Fuel Terminal➢ 20,000 BPD ➢ 3 Bay Truck Rack

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Strobel Energy Project – Nevada


➢ Las Vegas, NV➢ Fuel Terminal➢ 330,000 Bbls Storage

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Strobel Energy Project – Oklahoma


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Strobel Energy Project – Louisiana

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Strobel Energy Project – Louisiana

Steve Strobel

President/CEO


[email protected]

(308) 548-2264

Bryan S. Ferguson

Project Development


[email protected]

(913) 484-0149

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strobelenergy.com

Contact Information

mailto:[email protected]

mailto:[email protected]

Confidentiality

• The information contained in this Company Overview is being furnished on a confidential basis to be used only in connection with the recipient’s consideration of a business relationship with Strobel Energy Group LLC, it’s affiliates or assigns (the “Company” or “Strobel”). By receipt of this document, the recipient agrees that all information contained herein will be keptconfidential and will not, without prior written consent of the Company be disclosed by the recipient in any manner whatsoever, in whole or in part, and will not be used other than in connection with the recipient’s evaluation of the business relationship with the Company. The recipient will be responsible for any breach of these confidentiality provisions by its agents, employees and representatives, and any person or entity to who any of the foregoing distributes the attached material or any of the information contained therein. Moreover, the recipient hereby agrees to transmit the information only to its agents, employees and representatives who need to know the information for the purpose of evaluating the Company and who are informed of the confidential nature of the information; provided, however, that nothing contained herein will in any way restrict or impair the recipient’s right to disclose any of the information if required by applicable laws, or at therequest of any bank or regulatory authority, or to use, disclose, or otherwise deal with any of the information which at the time of disclosure is generally available to the public, other than by reason of a breach of these confidentiality provisions, or is made available to the recipient by a person other than in breach of confidentiality provisions known by such recipient, and/or without any restrictions on its use.

• The recipient acknowledges the terms of the confidentiality provisions set forth in this agreement and will be deemed to have agreed to such confidentiality provisions by its acceptance of this Company Overview. If the recipient is not in agreement with the confidentiality provisions, the recipient must immediately return this document in its entirety, and any additional materials supplied in connection with the Company.

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Documents

SEG Company Profile - Strobel Energy€¢ Provide engineering for rail and truck terminal including conceptual layouts, ... •Buildings •Drainage •Load ... • Conceptual layout,