This document provides an overview and financial update of JP Energy Partners. In Q3 2015, Adjusted EBITDA was $10.4 million, an 8% increase over Q3 2014. Distribution coverage was approximately 0.7x for common units. Recent projects like the Reagan Lateral expansion and Magellan interconnect were completed on time and under budget. Cost reduction initiatives are expected to provide $2-2.5 million in savings in 2016. The company is focused on growing fee-based cash flows through organic projects and potential drop-downs in its core Permian Basin footprint.
2. Disclaimers
2
Forward Looking Statements
This presentation contains forward-looking statements. These statements discuss future expectations, contain projections of results
of operations or of financial condition or state other forward-looking information. These statements are based upon various
assumptions, many of which are based, in turn, upon further assumptions, including examination of historical operating trends
made by the management of the Partnership. Although the Partnership believes that these assumptions were reasonable when
made, because assumptions are inherently subject to significant uncertainties and contingencies, which are difficult or impossible
to predict and are beyond its control, the Partnership cannot give assurance that it will achieve or accomplish these expectations,
beliefs or intentions. These forward-looking statements involve risks and uncertainties. When considering these forward- looking
statements, you should keep in mind the risk factors and other cautionary statements in the Partnership’s 10-K and other
documents on file with the Securities and Exchange Commission. The risk factors and other factors noted in the Partnership’s public
filings could cause the Partnership’s actual results to differ materially from those contained in any forward-looking statement.
This document includes certain non-GAAP financial measures as defined under SEC Regulation G. A reconciliation of those
measures to most directly comparable GAPP measures is provided in the appendix to this presentation.
Non-GAAP Measures
Adjusted EBITDA is defined as net income (loss) plus (minus) interest expense (income), income tax expense (benefit), depreciation
and amortization expense, asset impairments, (gains) losses on asset sales, certain non-cash charges such as non-cash equity
compensation and non-cash vacation expense, non-cash (gains) losses on commodity derivative contracts (total (gain) loss on
commodity derivatives less net cash flow associated with commodity derivatives settled during the period) and selected (gains)
charges and transaction costs that are unusual or non-recurring and other selected items that impact comparability.
We define distributable cash flow as Adjusted EBITDA less net cash interest paid, income taxes paid and maintenance capital
expenditures.
4. Recent Financial Updates & Project Highlights
4
Q3 2015 Recap
• Adjusted EBITDA of $10.4
million, 8% higher than the $9.6
million reported in Q3 2014
• Q3 2015 distribution of
$0.3250/unit1, equivalent to
MQD
• Distributable cash flow of $8.6
million, equates to ~0.7x
coverage
• Included $3.0 million of
corporate overhead support
___________________________
1. Paid November 13, 2015 to unitholders of record on November 6, 2015
GP Overhead Support Recent Project Highlights
• Our general partner has
committed to provide corporate
overhead support, including
$3.0 million for Q3 2015
• Advances the improved
financial results we expect to
achieve in 2016 through a
focused set of cost control
initiatives and other business
improvements
• Future corporate overhead
support will be considered on a
quarter-by-quarter basis by our
general partner
• Completed Phase I of Reagan
Lateral in September 2015.
Phase II expected to be
completed January 2016
• Completed interconnection
between the Silver Dollar
Pipeline and Magellan’s
Longhorn Pipeline in
September 2015
• Both Reagan Lateral and
Magellan interconnection
projects were completed on
time and under budget
5. Q3 2015: Segment Performance
5
Adjusted EBITDA by SegmentSegment Q3 Performance Drivers
NGL
Distribution
& Sales
• Higher margins from favorable market
conditions, cost control
• Product sales volumes of 175 mgal/d
consistent with prior-year
Crude Oil
Pipelines &
Storage
• Higher volumes from the expansion of
the Silver Dollar Pipeline System
• Addition of a significant new customer
during the third quarter of 2015
Crude Oil
Supply &
Logistics
• Margins negatively impacted by
current environment
• Partially offset by higher crude oil
sales volumes (Silver Dollar expansion)
and new contracts
Refined
Products
Terminals &
Storage
• Expense control, capital
improvements, butane blending
• Moderately lower margins from a shift
in refined product volume mix
2.5
5.5
5.3
2.3
2.3
-1.3
6.0
6.1
Refined Products Terminals
& Storage
Crude Oil Supply & Logistics
Crude Oil Pipelines &
Storage
NGL Distribution & Sales
3Q15 3Q14
6. Q3 2015: Balance Sheet & Liquidity
6
Strong Metrics, Access to Capital
• Maintained conservative leverage below
3.5x
‒ Leverage ratio remains below peer
average and JPEP long-term target of
3.5-4.0x
• $86 million unused credit facility capacity1
• Ample liquidity and balance sheet capacity
to support capital needs
Available Liquidity ($mm)1
Available debt capacity expected to fully support planned 2015 and 2016 organic capex
___________________________
1. As of October 31, 2015
Unused Credit
Facility Capacity, $86
Credit Facility
Borrowings, $161
Outstanding Letters
of Credit, $28
7. $ 0
$ 2
$ 4
$ 6
$ 8
$ 10
$ 12
$ 14
$ 16
4Q14 1Q15 2Q15 3Q15 Average
Strong Common Unit Distribution Coverage
7___________________________
1. 4Q14 is adjusted for certain previously disclosed one time items
2. Assumes current units outstanding for distributions. Numbers vary slightly by quarter
Distributable Cash Flow ($mm)(1)(2)
Common Unit Distribution
Total Unit Distribution
Discussion
• Approximately half of the
units receiving distributions
are subordinated to the
public unit holders
• Considerable coverage of
common unit distribution
• Expect 1x total unit
distribution coverage in
4Q15
• Targeting 1x total unit
coverage in 2016
Common Units Coverage 1.6x 2.2x 0.7x 1.4x 1.5x
Total Units Coverage 0.8x 1.1x 0.4x 0.7x 0.8x
9. Example of Cost and Operating Expense Reductions
9
~$2.0 million in net 2016 savings from our crude trucking business from:
Positioning fleet closer to customers, reducing trucking miles
Reducing fuel, repair and maintenance costs
Improving truck utilization across fleet
>$2.5 million in net 2016 reductions in our NGL segment due to:
Streamlining workforce
Optimizing fleet
Increasing operational efficiencies
$2.0 million of 2016 reduction in corporate overhead1 from:
Capturing efficiencies across our business
Investing in in new technology
Distributing COO duties across existing leadership team
___________________________
1. Excludes any potential benefit from GP corporate overhead support
Note: All figures are expected 2016 net savings
Corporate overhead support from GP accelerates benefit of cost initiatives for unitholders
10. 10
Strategic Footprint and Focus in the Permian Basin
Permian crude oil production remains resilient
versus other major oil basins
___________________________
Source: EIA Drilling Productivity Report, November 2015
Productivity and efficiency gains in 2015 have been
most pronounced in the Permian
Crude Oil Production by Basin Crude Oil Production per Rig (indexed)
90%
100%
110%
120%
130%
140%
150%
160%
170%
Dec-14
Jan-15
Feb-15
Mar-15
Apr-15
May-15
Jun-15
Jul-15
Aug-15
Sep-15
Oct-15
Nov-15
Permian
Eagle Ford
Bakken
30%
Permian
Eagle Ford
Bakken
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2,000,000
2,200,000
Jan-13
Apr-13
Jul-13
Oct-13
Jan-14
Apr-14
Jul-14
Oct-14
Jan-15
Apr-15
Jul-15
Oct-15
bpd
11. 11
Timeline of Achievements Supporting our Growth
Oct
2014
Nov
2014
Dec
2014
Jan
2015
Feb
2015
Mar
2015
Apr
2015
Announced Strategic Extension of
Silver Dollar Pipeline in the Midland
Basin
Pipeline expansion north into Reagan and
Glasscock Counties. ~51-mile expansion base
loaded by a 53,000 acre 10 year dedication.
Phase I completed in September, Phase II
expected completion in January 2016
Announced Silver Dollar Pipeline
Interconnection Agreement with
Magellan Midstream Partners
Executed interconnection agreement with an affiliate
of Magellan to connect the Silver Dollar Pipeline
System to Magellan’s Longhorn pipeline at Barnhart
Terminal in Crockett County, TX. Placed in service in
Q3 2015
Announced Southern
Propane Acquisition
Agreed to acquire substantially
all of the assets of Southern
Propane. Southern Propane
services mostly industrial and
commercial clients in the greater
Houston area
Completed Southern
Propane Acquisition
Completed previously
announced Southern
Propane acquisition for
$16.3 million
May
2015 Jun
2015
Completed Initial
Public Offering
Completed IPO, listing JP
Energy Partners shares
on the New York Stock
Exchange (NYSE)
Announced First Quarterly
Distribution
Announced first quarterly
distribution equivalent to
minimum quarterly distribution
(MQD) of $0.3250/unit
12. Overview
Silver Dollar Pipeline – Recent Updates
12
Reagan Lateral
• Completed Phase I of the project in September 2015 on
time and under budget. Includes 32-miles of pipeline
and associated truck and measurement facilities. Expect
Phase II to be completed in January 2016
• Expands capture area in the Midland Basin by extending
Silver Dollar north into Reagan and Glasscock. Lateral is
base loaded by a 53,000 acre 10 year dedication
Magellan Longhorn Interconnect
• In September 2015, completed an interconnection
between the Silver Dollar Pipeline and the Longhorn
Pipeline at Barnhart Terminal in Crocket County, TX
• Provides third take-away option for producers and
provides producers with direct access from the core of
the Midland Basin to Houston end markets
Reagan
Irion
Crockett
Sterling
Glasscock
Tom Green
Silver Dollar Pipeline - Reagan Lateral
Legend
Reagan Lateral Station
Future Station
Stations
Active Pipeline
Reagan Lateral
Rail
Major Highways
Oxy Barnhart Station
(Centurion Interconnect
to Colorado City)
Owens Station
(Plains Interconnect
to Midland)
Midway
Truck
Station
Future Truck
Station
Future Truck
Station
Truck
Station
Truck
Station
Magellan Barnhart Station
(Longhorn Interconnect
to E. Houston – Q3 2015)
Planned Expansion
Midland
(via Plains)
Colorado City
(via Oxy Cline’s
Centurion)
Silver Dollar
Houston
(via Magellan Longhorn)
13. Overview
Southern Propane Acquisition
13
Transaction Overview
• In April 2015, announced an agreement to acquire substantially all of the assets of Southern Propane Inc.
(“Southern”)
• Transaction completed for $16.3 million in an immediately accretive transaction
• Southern Propane services mostly industrial and commercial clients in the greater Houston area
• Transaction was largely funded with cash from our revolver as well as a ~267,000 unit issuance to the Seller
Transaction Rationale
• Non-heating degree day dependent commercial /
industrial propane gallons
• Complementary footprint should reduce travel times
across busy Houston roads and increase route density
• Strengthen footprint in attractive Houston Industrial
market
• Southern has displayed a strong growth profile
• Southern storage tank
• JPEP storage facilities
Performing As Expected For The First Six Months Post-Acquisition
14. Republic Midstream Drop-Down Opportunity
14
Gathering System
CDP 144
12” Intermediate
Delivery Point into KMCC
Republic Midstream
• JPEP has a ROFO for 50% of Republic Midstream
• Crude oil gathering system in the Eagle Ford,
specifically Gonzales & Lavaca counties, Texas
• Central delivery point with storage and blending
capacity
• ~70,000 acre dedicated gathering system
• 300Mbbls of storage at CDP
• ~25 mile 12” takeaway pipeline
• Marketing and takeaway on KMCC in operation since
June 2015, pipeline construction nearly complete
• Expected to be dropped down sometime after 2016
15. Growing, Fee-Based Cash Flows with High Quality
Customer Base
15
Crude Oil Supply
and Logistics
Crude Oil Pipelines and
Storage
Refined Products
Terminals and Storage
NGL Distribution
and Sales
1%1 36%1 16%1 47%1
• Crude oil trucking
and “fee
equivalent” lease
gathering
• Primary objective is
to drive volumes to
our pipeline systems
• Fixed storage and throughput,
minimum volume commitment
fees or acreage dedications
• Growing S. Wolfcamp volumes
from existing contracted
producers with long-term fee-
based commitments
• Pursuing additional customer
acreage dedications and MVCs
within JP Energy’s capture area
• Development and acquisition
opportunities to expand
pipeline footprint
• Fixed fees for throughput
& storage
• Fixed fees for blending
services, injection of
additives and ancillary
services, including product
handling and transfer
services
• Rollup strategy and
optimization
• Retail and industrial
distribution is primarily
“cost plus” or fixed-
margin business
• Recent acquisitions of
Southern Propane and
NGL truck services add to
fee based and fixed
margin earnings
• Utilize hedges to minimize
volatility in our cylinder
exchange earnings
___________________________
1. % of 2015 YTD adjusted EBITDA through September 30, 2015
16. Growing a Diverse Mix of Stable Cash Flows
16___________________________
1. Based on Adjusted EBITDA for the year ended December 31, 2014
2. Based on planned Adjusted EBITDA for the year ended December 31, 2015. Includes 3Q15 actual results
Fee Based Fixed Margin Variable Margin
Crude Oil Pipeline
& Storage
Refined
Products
Terminals
Crude Oil &
NGL Trucking
NGL Fixed Margin
Product Sales
Crude Oil and
NGL & Supply
Logistics
NGL Variable
Margin
Product Sales
Refined Product
Sales
• Pipeline
throughput fees
• Crude oil storage
fees
• Throughput
volume fees
• Fee-based
trucking for
third
parties
• NGL sales
under fixed
price & hedged
contracts
• Typically
back-to-back
transactions
at index-
based prices
• NGL sales
at market
prices
• Product sales
that vary
with market
prices
2014 Adjusted EBITDA1
2015 Planned Adjusted EBITDA2
Variable
Margin,
44%
Fee
Based,
48%
Fixed Margin,
8%
Variable
Margin,
39%
Fee
Based,
45%
Fixed
Margin,
16%
17. Well Positioned for 2016 and Beyond
17
Solid Position in
Active Basins
Fully Integrated
Solution
Solid Financial
Position
• Network of midstream
assets in core of
Midland Basin
• Potential Eagle Ford
position capitalizes on
strong fundamentals,
drilling activity
• Manage physical
movement of
petroleum products
from origination to
destination
• Four complimentary
business segments
connecting upstream
to downstream
• Natural hedge to
seasonality and
commodity price
changes
• Large percentage of
fee-based business
• Low commodity price
sensitivity
• Strong balance sheet
• Strong sponsor with
drop-down
opportunities
Enables Long-Term
Growth
• Execute on backlog of
organic growth
opportunities
• Identify and pursue
potential acquisitions
• Execute pipeline
expansions
• Initiate drop-downs
18. Financial Strategy
18
Maintain Stable
Cash Flows
• Long term contracts for our crude oil pipelines
• Refined products and NGL segments offer diversification in mature markets
but with considerable growth opportunities
Committed to Long
Term Growth
• Near-term organic growth projects being pursued in existing businesses
• Potential strategic drop-down of Republic Midstream could support growth
• Remain open to acquisition opportunities that are strategic to the platform
Commitment to
Financial Flexibility
• Revolver has ~$86 million in availability
• Target 3.5-4.0x leverage over the long-term
Comprehensive Risk
Management
• Established policies and procedures to monitor and manage risks associated
with commodity prices, counterparty credit and interest rates
• Commodity price exposure is minimized through fixed-fee contracts or
margin-based arrangements
19. JPEP Investment Summary
19
Diversified
Business
• Four unique but complementary business segments connecting upstream supply to
downstream demand
• Opportunity to seek further value chain integration
• Approximately 80% of 2015 YTD EBITDA is generated outside of Crude Oil Supply and
Logistics and our Crude Oil Pipelines business
Strategically
Located Crude
Assets
• JP Energy Partners and JP Energy Development have strategically developed and acquired
assets in the most profitable basins in North America
• Truck locations managed dynamically to optimize returns of Crude Oil Supply and Logistics
and Crude Oil Pipelines segments
Stable Cash
Flows
• Limited direct commodity price exposure
• 61% of 2015 Adjusted EBITDA is fee-based or fixed margin
Strong Equity
Sponsorship
• Owns over 50% of the LP units and approximately 71% of the GP
• Experienced sponsor that is active in the market
• Remains committed to long-term drop down strategy, including Republic Midstream
Conservative
Balance Sheet
• Focused on financially responsible and conservative growth and cost containment
• Revolver has ~$86 million in availability, target 3.5-4.0x leverage over the long-term
21. Non-GAAP Reconciliation – Adjusted EBITDA
21
2015 2014 2015 2014
Segment AdjustedEBITDA
Crude oil pipelines and storage 5,988$ 5,301$ 17,593$ 15,447$
Crude oil supply and logistics (1,276) 5,477 394 7,139
Refined products terminals and storage 2,261 2,525 7,601 7,666
NGL distribution and sales 6,135 2,256 23,083 9,902
Discontinued operations - - - 983
Corporate and other (2,661) (5,966) (15,971) (19,502)
Total AdjustedEBITDA 10,447 9,593 32,700 21,635
Depreciation and amortization (12,343) (10,395) (35,768) (30,569)
Interest expense (1,514) (2,406) (4,069) (7,957)
Loss on extinguishment of debt - - - (1,634)
Income tax(expense) benefit (82) 158 (333) 2
Gain (loss) on disposal of assets, net 14 (533) (1,395) (1,193)
Unit-based compensation (323) (578) (875) (1,163)
Total gain (loss) on commodity derivatives 3,471 (762) (1,449) (730)
7,503 105 15,918 (483)
Early settlement of commodity derivatives (8,745) - (8,745) -
Non-cash inventory costing adjustment (3,662) - (2,671) -
Corporate overhead support fromgeneral partner (3,000) - (3,000) -
Transaction costs and other (214) (792) (3,033) (1,724)
Discontinued operations - - - (10,591)
Net loss (8,448)$ (5,610)$ (12,720)$ (34,407)$
Three months endedSeptember 30,
Net cash (receipts) payments for commodity derivatives
settled during the period
Nine months endedSeptember 30,
(in thousands)
22. Non-GAAP Reconciliation – Distributable Cash Flow
22
Three months
ended
September 30,
2015
Nine months
ended
September 30,
2015
Net cash providedby operating activities 4,944$ 24,266$
Depreciation and amortization (12,343) (35,768)
Derivative valuation changes 11,024 14,625
Amortization of deferred financing costs (227) (682)
Unit-based compensation (323) (875)
Loss on disposal of assets 14 (1,395)
Bad debt expense (307) (999)
Other non-cash items 7 193
Changes in assets and liabilities (11,237) (12,085)
Net loss (8,448)$ (12,720)$
Depreciation and amortization 12,343 35,768
Interest expense 1,514 4,069
Income taxexpense 82 333
(Gain) loss on disposal of assets, net (14) 1,395
Unit-based compensation 323 875
Total gain (loss) on commodity derivatives (3,471) 1,449
(7,503) (15,918)
Early settlement of commodity derivatives 8,745 8,745
Non-cash inventory costing adjustment 3,662 2,671
Corporate overhead support fromgeneral partner 3,000 3,000
Transaction costs and other 214 3,033
AdjustedEBITDA 10,447$ 32,700$
Less:
Cash interest paid, net of interest income 1,238 3,209
Cash taxes paid - 450
Maintenance capital expenditures, net 585 2,290
Distributable cash flow 8,624$ 26,751$
Less:
Distributions 12,028 36,040
Amount in excess of (less than) distributions (3,404)$ (9,289)$
Distribution coverage 0.72x 0.74x
Net cash payments for commodity derivatives
settled during the period
(in thousands)
23. Consolidated Income Statement
23
Three Months EndedSeptember 30, Nine Months EndedSeptember 30,
2015 2014 2015 2014
REVENUES:
210,422$ 371,623$ 730,859$ 1,102,030$
196 - 196 -
6,457 8,130 20,057 23,923
926 - 1,206 -
34,773 41,982 127,028 142,146
- 476 - 7,409
3,373 3,069 9,549 7,290
- 74 - 1,521
3,436 3,237 10,461 10,086
Total revenues 259,583 428,591 899,356 1,294,405
COSTS AND EXPENSES:
Cost of sales, excluding depreciation and amortization 224,425 392,662 781,173 1,190,859
Operating expense 19,119 17,048 53,676 52,304
General and administrative 10,669 11,315 36,132 35,196
Depreciation and amortization 12,343 10,395 35,768 30,569
(Gain) loss on disposal of assets, net (14) 533 1,395 1,193
Total costs and expenses 266,542 431,953 908,144 1,310,121
OPERATINGLOSS (6,959) (3,362) (8,788) (15,716)
OTHER INCOME(EXPENSE)
Interest expense (1,514) (2,406) (4,069) (7,957)
Loss on extinguishment of debt - - - (1,634)
Other income, net 107 - 470 506
LOSS FROMCONTINUINGOPERATIONS BEFOREINCOMETAXES (8,366) (5,768) (12,387) (24,801)
Income tax(expense) benefit (82) 158 (333) 2
LOSS FROMCONTINUINGOPERATIONS (8,448) (5,610) (12,720) (24,799)
DISCONTINUED OPERATIONS
- - - (9,608)
NET LOSS (8,448)$ (5,610)$ (12,720)$ (34,407)$
Crude oil sales
NGL and refined product sales
Refined products terminals and storage fees
Net loss fromdiscontinued operations
(in thousands, except unit andper unit data)
Crude oil sales - related parties
Gathering, transportation and storage fees
Gathering, transportation and storage fees - related parties
NGL and refined product sales - related parties
Refined products terminals and storage fees - related parties
Other revenues
