emes investor presentation for citi 1v1 2014 3

www.emergelp.com PAGE 1

Emerge Energy Services LP

Citi 1x1 ConferenceLas Vegas

August 21, 2014


Forward Looking StatementsThis presentation contains forward-looking statements. These statements can be identified by the use of forward-looking terminology including“may,” “believe,” “will,” “expect,” “anticipate,” or “estimate.” These forward-looking statements involve risks and uncertainties, and there can beno assurance that actual results will not differ materially from those expected by management of Emerge Energy Services LP. Whenconsidering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in our annual report onForm 10-K filed with the SEC. The risk factors and other factors noted in our Form 10-K could cause our actual results to differ materially fromthose contained in any forward-looking statement. Except as required by law, Emerge Energy Services LP does not undertake any obligation toupdate or revise such forward-looking statements to reflect events or circumstances that occur after the date hereof.

In this presentation, we present Adjusted EBITDA, a non-GAAP financial measure. Adjusted EBITDA is used as a supplemental financialmeasure by our management and external users of our financial statements, such as investors and commercial banks, to assess the financialperformance of our assets without regard to the impact of financing methods, capital structure or historical cost basis of our assets; the viabilityof capital expenditure projects and the overall rates of return on alternative investment opportunities; our liquidity position and the ability of ourassets to generate cash sufficient to make debt payments and to make distributions; and our operating performance as compared to those ofother companies in our industry without regard to the impact of financing methods and capital structure. We believe that Adjusted EBITDAprovides useful information to investors because, when viewed with our GAAP results and the accompanying reconciliations, it provides a morecomplete understanding of our performance than GAAP results alone. We also believe that external users of our financial statements benefitfrom having access to the same financial measures that management uses in evaluating the results of our business.

We define Adjusted EBITDA generally as: net income plus interest expense, income tax expense, depreciation, depletion and amortizationexpense, non-cash charges and losses that are unusual or non-recurring less interest income, income tax benefits and gains that are unusual ornon-recurring. We report Adjusted EBITDA (which as defined includes certain other adjustments, none of which impacted the calculation ofAdjusted EBITDA herein) to our lenders under our revolving credit facility in determining our compliance with the interest coverage ratio test andcertain senior consolidated indebtedness to Adjusted EBITDA tests thereunder. Adjusted EBITDA should not be considered as an alternative tonet income, operating income, cash flow from operating activities or any other measure of financial performance presented in accordance withGAAP.


Partnership Overview

Sand Fuel

• Primarily consists of processing & selling transportation mixture (“transmix”)

• Also includes wholesale, terminal, and biodiesel operations

• Operations in Dallas / Fort Worth and Birmingham, Alabama

• Located adjacent to major common carrier pipelines

• Leading manufacturer of Northern White silica sand, ~ 99% sold as a proppant for hydraulic fracturing

• Diversified customer base with an attractive mix of contracts

• Three* sand plants backed by several mines with high quality reserves

• Advantaged rail access on two* Class I railroads, with numerous logistics and transload solutions

Together, these segments provide significant EBITDA scale and balance, while giving EMES diversification benefits as the market evolves

*EMES is currently constructing one new 2.5 million ton per year dry plant in Arland, WI, and is in the late stage of permitting a second 2.5 million ton per year facility; together these will should provide direct access to additional Class I railroads


Our MLP Structure• We have a simplified MLP structure

– All units are Common Units– Non-economic General Partner– No Incentive Distribution Rights (IDRs)– No Minimum Quarterly Distributions (MQD)

• Our Sponsor, Insight Equity, which owns 30% of the Common Units, has fully aligned its financial interests with our Public Unitholders

• EMES pays out 100% of its Available Cash to Common Unitholders– We seek to capture cash flow stability through long term contracts, a low-cost

operating structure, and indexed pricing– Unlike a typical “variable rate” MLP, our gross margins are not based on the spread

between two commodities that may or may not be correlated– Our current credit facility allows us to borrow at favorable rates, and we are well within

our financial covenants– We anticipate that our near term growth opportunities can be financed through

modifications of our current credit facility


Our Sponsor and Organization

• Formed in 2002– Over $1.3 billion of capital under

management– Currently deploying Fund III

• Strong track record of delivering investor returns

• Invests in middle market companies in asset intensive sectors

• Targets strategically viable companies with transformational upside

• Longer-term investment horizon– Typically 5 to 8 years

• Focus on operational excellence– Deep roots in management

consulting– Hands-on operational approach Ownership positions as of August 1, 2014


Investment Considerations

Significant Organic Growth Capacity

High Quality, Strategically

Located Assets

Intrinsic Logistics

Advantages

StableCash Flow

Experienced Management

Team

Low Cost Operating Structure

Strong Reputation w/ Customers and

Suppliers


Our Business Objective And Strategies

• Sand segment has long-term contracts and solid relationships with creditworthy counterparties• Fuel segment contracts and hedges designed to generate stable margins• Continue to seek additional relationships and contracts with similar terms for both segments

• Existing dry plants are at capacity; two new facilities should be shipping in the coming quarters• Significant coarse Northern White reserves; opening new mines and wet plants to lower costs• Multiple opportunities to contract additional transmix supplies, increase wholesale volumes,

and add throughput and terminalling accounts

• Actively pursue additional sales in emerging shale plays• Expand logistics capabilities and footprint through leased and contracted transload sites• Additive blending capabilities and shipper status on Colonial and Plantation pipelines

increasing terminal business

• Actively pursue acquisitions along current and complementary business lines• Leverage expertise into other geographies• Take advantage of industry consolidation opportunities• Acquisition of MidWest Frac assets expected to lower costs and consolidate wet sand supply

• Sufficient capital to pursue growth strategy through acquisitions, organic growth, and asset optimization

• Attractive current financial and credit profiles• Commitment to maximizing total distributions

Seek Contractual Cash Flow Stability

Capitalize on Organic Growth Opportunities

Access New and Adjacent Markets

Pursue Accretive Strategic

Acquisitions

Maintain Financial Strength and

Flexibility

Our primary business objective is to generate cash flow that is predictable and steadily grows over time


SAND SEGMENT


Proppants & Hydraulic Fracturing• Frac sand, or “proppant,” is used to prop open fissures in hydraulic fracturing• Demand expected to continue its strong growth into the near future

Hydraulic Fracturing 2013 US Land Proppant Consumption

Historical & Projected US Land Proppant Demand

Source: PacWest Consulting Partners

millions of tons

Raw Sand

Resin‐Coated

Ceramics

0

20

40

60

80

100

2012 2013 2014P 2015P 2016P

Sand Resin‐Coated Ceramics


Sand Market Overview

• Demand is increasing faster than high quality supply• Logistics capabilities are no longer a competitive advantage but a necessity• Pressure pumpers are moving to the top suppliers

• Industry and analyst reports support a rapidly growing need for high quality frac sand• More wells per rig, more stages per well, more sand per stage• International demand (Latin America, Central Europe) looks to Wisconsin

• Permitting is becoming harder for established players and near impossible for new ones, while economic deposits of coarse Northern White sand are hard to find

• Inexperienced and poor operators are being consolidated or exiting the market• New supply is coming online, but at a more responsible rate

• The Tier 1 suppliers are a larger part of the market, while the Tier 2 suppliers (poorer quality, smaller scale) have less of an impact

• SSS continues to improve its position relative to its Tier 1 competitors

• Prices for coarser grades remain high• Prices for finer grades have found strength• As older contracts with legacy pricing roll off, there are more opportunities to secure

long-term contracts near today’s prices

Major Dynamics

Demand

Supply

Competition

Pricing

As a top Tier 1 supplier, SSS is well-positioned in today’s market


16-30 Mesh 20-40 Mesh 30-50 Mesh 40-70 Mesh 100+ Mesh

Proppant Market Differentiation• EMES mines and processes industry-leading frac sand• There are significant variations in sand characteristics and quality

OIL / LIQUIDS(Coarser Sand)

DRY GAS(Finer Sand)

0 PSI

2,000 PSI

4,000 PSI

6,000 PSI

8,000 PSI

10,000 PSI

12,000+ PSI

SHA

LLOW

DEEP

SSS

SSS

SSS

SSS SSS

Low quality sand

Industry leading sand

Resin and Ceramic Coated


Competitive Advantages

Quality of Sand• Emerge sand exceeds API and customer specs• Over 60% of Emerge’s Northern White sand is a mesh size of 50 or larger• One of only four companies with commercial quantities of 16/30 sand• Fully enclosed dry plants for year-round operations, regardless of weather

Customer Focus

• Responsiveness, customer service and quality set Emerge apart from the competition

• A recently conducted survey ranked the SSS brand above that of competitors (1)

• Community focus: SSS voted Business of the Year in Barron County in 2013

Cost Discipline

• Focus on lowering costs by building wet plant capacity and increasing production at our dry plants

• Manage Emerge rail car fleet to minimize downtime and demurrage• Rail yard design at WI plants allows for efficient loading and storage of sand• Lean SG&A profile among the lowest of Tier I sand suppliers

Logistics

• Wisconsin dry plants are on two Class One railroads– Economic two-line hauls provide unit train access to a third Class One railroad

• 13 transload sites across North America and more planned– Emerge can deliver FOB mine or FOB transload within 60 miles of the wellhead

• Track storage in Wisconsin for 850 railcars, soon to be 900 railcars

(1) Study conducted by Bronson Ma Creative LLC in July 2013


Our Assets – An Overview

High Quality Reserves

• 87.7 million tons of Northern White silica sand– Ideal for crude oil and liquids-rich natural gas extraction from unconventional plays– Proved reserves of 65-mesh or larger; additional 70 to 100-mesh reserves not included

• 28.2 million tons of native Texas sand– High quality, white sand for use in “overpacking,” dry gas fracking and sports sand

applications

Wet Plant Capacity

• Total pro forma capacity of 8.5 million tons– Four active Northern White plants with 5.4 mm tpy capacity– One Northern White plant (Thompson Hills) with 1.6 mm tpy capacity under construction– Kosse wet plant has a capacity of 1.5 mm tpy

• Additional capacity from third party sources available

Dry Plant Capacity

• Two world-class dry plants operating in Wisconsin with two more on the way– 2.4 mm tpy Barron Plant on the Canadian National– 1.4 mm tpy New Auburn Plant on the Union Pacific– 2.5 mm tpy Arland Plant expected online by end of 2014– 2.5 m tpy Independence Plant expected by early 2015

• 600,000 tpy “native” sand plant in Kosse, Texas closing on full capacity utilization

Transportation and Logistics

• 13 transload sites in North America– 3 in the Western Canadian Sedimentary Basin, including the Sexsmith Mega-Centre– 5 serving Texas-area basins, 4 in the Marcellus/Utica, 1 serving the Bakken

• Rail fleet of nearly 4,700 cars, expected to grow to over 6,400 within a year• Railcar storage for 840 railcars at Wisconsin facilities, going to over 1,000 by year end


Not All Sands Are Created Equal“Native” Angular Sand –

Glass Shards and Little RocksNorthern White Sand

from Barron – Uncultured Pearls


Sand Asset SummaryWet Plant Location

Proven Recoverable Reserves (1)

Primary Reserve Composition

Depth of Reserve (Feet)

Lease Expiration Date

Mine Area (Acres)

Plant Capacity(Thousands of

Tons)New Auburn 20.0 mm tons 14-60 mesh 45-105 March 2036 418 (1) 2,000

FLS / Arland 12.0 mm tons 14-50 mesh 40-50 July 2037 364 1,200

LP Mine 8.7 mm tons 14-50 mesh 40-50 March 2038 145 1,000

Church Road (MWF) 7.5 mm tons 14-50 mesh 40-50 N/A (Owned) 80 1,200

Kosse, TX 28.2 mm tons 100 mesh 100 N/A (Owned) 225 1,500

Thompson Hills (2) 39.5 mm tons 14-50 mesh 15-95 December 2037 580 1,600

Independence (3) N/A 14-50 mesh NA NA NA 2,000

Dry Plant Location On-Site Rail Infrastructure

On-site RailcarStorage Capacity

Plant Capacity (Thousands of Tons)

2013 Sales Volumes (Thousands of Tons)

Barron, WI 3.5 miles 430 cars 2,400 1,205

New Auburn, WI 4.5 miles 420 cars 1,400 1,331

Kosse, TX N/A N/A 600 115

Arland (2) N/A N/A 2,500 N/A

Independence (3) N/A N/A 2,500 N/A

(1) Reserves are estimated as of December 31, 2013 by third-party independent engineering firms based on core drilling results and in accordance with the SEC's definitions of proven recoverable reserves and related rules for companies engaged in significant mining activities and represent marketable finished product. Estimates for Wisconsin reserves exclusive of sand smaller than 65-mesh.

(2) Currently under construction; expected to be operational in late 2014(3) Currently under construction; expected to be operational in early 2015


Sand Operations Process Flow

Thompson Hills FLS/Arland

New Auburn

Barron

LP Mine Church Road

New Auburn IndependenceIndependence

Arland


Pro Forma Operations Process Flow

Thompson Hills FLS/Arland

New Auburn

Barron

LP Mine Church Road

New Auburn IndependenceIndependence

Arland


North American Sand MarketsBy early 2015, EMES expects to have single-line access to four Class One railroads, which will provide direct rail access to every major basin in North America

Source: Association of American Railroads & U.S. Geological Survey.

BasinHighest Quality SandMine LocationsSSS Transload Sites

BNSFCN/GTWCP/SOOCSX /NSKCS/KSCSMUP

National Network


Diversified Sales Portfolio

Sales by Basin

Eagle Ford Canada Permian Marcellus

Bakken Mid‐Con Haynesville Rockies

Barnett Other

Sales by Customer

Cust A Cust B Cust C Cust D

Cust E Cust F Cust G Cust H

Cust I Cust J Cust K Other (38)Includes sales from January 1, 2014 through June 30, 2014

Basin and customer listed in order of largest to smallest


Sand Segment Growth Opportunities

Contracts and Customers

• Emerge has 7.4 million tons per year under contract with an average life of 4.4 years

• In negotiations for additional tons through multi-year, fixed price/volume contracts, including take-or-pay contracts

• Expanding and extending contracts with existing customers

Logistics

• Able to capture higher margins by delivering within 60 miles of the the wellhead

• Leasing and contracting on an exclusive basis with transload facilities that can serve our customer drilling areas

• New proposed facilities would allow us to reach four Class One railroads

International• Western Canada has significant need for frac sand; Barron has

strong logistics solution with single-line haul on the Canadian National Railroad

• Other international efforts underway

Organic / Acquisition

Opportunities

• Two new 2.5 mm tpy facilities announced• Significant additional resource potential adjacent to current reserves• Several parties have approached EMES to partner or acquire their

facilities and/or reserves


FUEL SEGMENT


Fuel Segment OperationsFuel Segment provides a stable base with meaningful growth opportunities

(millions of gallons)

TransmixProcessing

Capacity

Fuel from Transmix Sold

in 20131

Terminal TankageCapacity

Wholesale Fuel Sold in

20131

BiodieselRefining Capacity

Pipeline Connectivity

Dallas – Fort Worth, TX 107.3 97.2 12.0 17.6 NAExplorer/Eagle/

Proprietary Refiner

Birmingham, AL 76.7 29.5 22.0 121.8 2.0 Colonial/Plantation

• Transmix Refining– Distillation of comingled refined products– Primarily sourced from pipelines– Minimal commodity exposure (typically one week on average)

• Terminalling– Fixed-fee revenue for storage and/or transfer to truck rack– Revenue enhancement through blending and vapor recovery

• Wholesale Distribution– Diesel and gasoline sales to local customers– Product sourced from terminal customers and connecting pipeline– Minimal commodity exposure (typically less than 2 weeks)

• Biodiesel Refinery– Blending biodiesel with petroleum diesel to create higher margin fuel

blends– Generates 1.5 Renewable Fuel Credits (RINs) per gallon 2

1 Direct Fuels includes all gallons sold during the calendar year2 EPA regulation Section 80.1115


Overview of Fuel Segment BusinessFuel segment revenue comes from a diverse mix of stable margin and fixed-fee activities

Truck

Pipeline

Distillation Terminalling

Automobiles

Trains

Truck

BiodieselBlending

GasolineAdditives

Biodiesel Facility Gasoline Additives

Truck Rack FacilityDiesel

Transmix

Product Source EMES Consumer

GasolineGasoline

Diesel

GasolineDiesel

• EMES uses throughput contracts, indexed pricing, and hedging to minimize spread volatility• EMES holds product for 7-10 days to minimize exposure to price fluctuations

Wholesale and TerminalVapor Recovery Unit


Refined Product Pipelines in the US

Transmix facilities are primarily located along major refined products pipelines

Refined Products PipelineTransmix Facilities

EMES’ FP&D Facilities

DirectFuels

AEC


Per Gallon Fuel MarginsFuel margins have remained strong primarily on base margin strength

$(0.050)

$‐

$0.050

$0.100

$0.150

$0.200

Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14

Aggregate per Gallon Fuel Margin

Blending Costs & RINS Effect of pricing volatility Base Margin


Fuel Segment Growth Opportunities

Transmix and Throughput

• Leverage strong relationships and existing pipeline connectivity• Expand into adjacent geographies• Birmingham facility has significant unused capacity

• Biodiesel facility recently restarted• Renewable Identification Numbers (“RINs”) provide significant value

potential

• New additive systems in place at both terminals, allowing us to terminal and sell branded as well as unbranded petroleum products

• Shipper status on Colonial and Plantation provides additional gross margin opportunities

• Opportunity to acquire additional transmix operations and terminal sites

• Space for expansion at both sites

Biodiesel

Terminalling Opportunities

Organic Growthand Acquisitions


FINANCIAL OVERVIEW


Recent Financial ResultsUnaudited Financial Results for Emerge

Three Months Ended June 30,

2014

Three Months Ended Mar 31,

2014

Three Months Ended Dec 31,

2013

Three Months Ended Sept 30,

2013

Revenue $ 298,273 $ 274,081 $ 246,030 $ 270,241

Cost of Goods Sold 261,395 239,796 214,927 238,736

DD&A 5,711 5,770 6,362 6,390

SG&A 8,994 8,475 9,439 7,969

IPO‐Related Charges ‐ ‐ ‐ 44

Income from Operations 22,173 20,040 15,302 17,102

Interest Expense 1,943 1,584 1,279 1,645

Other (23) (119) (58) (118)

Provision for Income Taxes 170 89 90 171

Net Income (Loss) $ 20,092 $ 18,486 $ 13,991 $ 15,404

EPU (Diluted) $ 0.83 $ 0.77 $ 0.58 $ 0.64


Pro Forma CapitalizationEMES has a $350 million revolver with an undrawn revolver capacity of$139.6 million

EMES Capitalization as of June 30, 2014 ($ in millions)

Cash (Unrestricted) $11.6

Revolving Line of Credit $170.0

Other Long-Term Debt / Capital Lease 6.4

Partners Equity 161.8

Total Book Capitalization $338.3

Debt / LTM Adjusted EBITDA 1.6x

LTM Adjusted EBITDA / LTM Interest Expense 16.9x


Selected Historical Sales Volumes

Sand Sales by Quarter Fuel Sales by Quarter

0

100,000

200,000

300,000

400,000

500,000

600,000

1Q 20132Q 20133Q 20134Q 20131Q 20142Q 2014

Tons of Sand

Barron New Auburn Kosse

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

1Q 20132Q 20133Q 20134Q 20131Q 20142Q 2014

Thousands of Gallons

Wholesale Terminal Transmix*

* Volume of transmix processed; finished product is sold as wholesale fuel


• Coarse reserves, state of the art facilities, and prime access to multiple Class One railways• Flexible logistics network of transload sites in key basins• Fuel assets have strong position in their markets in major metropolitan areas

• Vast majority of sand sales under long-term contract or to contracted customers• Sand costs are stable and predictable• Fuel purchased and sold on indexed pricing and enhanced by hedging• Additional fixed-fee terminalling and throughput revenue in Fuel Segment

• Significant coarse mineral reserve composition, minimizing yield loss• Proximity to major sand & fuel logistics infrastructure, minimizing transportation, fuel & personnel costs• Enclosed dry plant operations to allow full run rates in winter months, increasing plant utilization• Ability to flex sand production 20% between coarser and finer sands without affecting costs

• Existing dry plants are at capacity; two new facilities should be shipping in the coming quarters• Significant coarse Northern White reserves; opening new mines and wet plants to lower costs• Significant industry relationships lower barriers to expansion opportunities• Kosse is starting to ramp up as well

• 80+ years of combined sand mining experience; 100+ years combined experience in fuels• Former President and Operations General Manager of U.S. Silica• Value added Sponsor with aligned incentives given common unit ownership

High Quality, Strategically

Located Assets

Stable Cash Flow

Low Cost Operating Structure

Significant Organic Growth Capacity

Experienced Management Team

Key Investment Highlights

• Access to multiple class Class One railways capable of reaching every major North American shale play• Transload network allows sand sales within 60 miles of the wellhead• By early 2015, rail fleet expected to include have well over 5,000 cars• Fuel terminals have access to major common carrier pipelines

Intrinsic Logistics Advantages

• Work with the customer to solve problems and meet their needs• Every customer with a long-term contract in place for 2013 purchased above their contract minimum• Adding new mines and plants to both lower cost and meet customer demand

Strong Reputation with Customersand Suppliers


APPENDIX


Management and Board of Directors

Name Title Years of Industry Experience

Senior Management Team

Rick Shearer Chief Executive Officer of EMES; CEO of Sand Division 40

Warren B. Bonham Vice President, Fuel; President of Fuel Division 29

Robert Lane Senior Vice President, Chief Financial Officer & Treasurer 20

Richard DeShazo Chief Accounting Officer 40

Board of Directors

Ted W. Beneski Chairman of the Board, Partner and Co-Founder, Insight Equity

Warren B. Bonham Vice President, Fuel and Partner, Insight Equity

Kevin Clark * Associate Professor, Corporate Strategy and Accounting, Vanderbilt University

Peter Jones * Independent Advisor

Francis Kelly * President and CEO, CEOVIEW Branding

Eliot Kerlin Partner, Insight Equity

Kevin McCarthy * Managing Partner, Kayne Anderson Fund Advisors

Rich Shearer President and Chief Executive Officer, Emerge Energy Services

Victor L. Vescovo Partner and Co-Founder, Insight Equity

* Denotes Independent Board Member


Non-GAAP ReconciliationThe following table presents a reconciliation of Adjusted EBITDA to the most directly comparable GAAP financial measures for each of the periods indicated.

Reconciliation of net income to Adjusted EBITDA:

Three Months Ended

June 30, 2014

Three Months Ended

June 30, 2013

Six MonthsEnded

June 30, 2014

Six MonthsEnded

June 30, 2013

Net income $ 20,092 $ (4,138) $ 38,578 $ 5,775

Depreciation, depletion and amortization expense 5,771 4,922 11,481 8,076

Provision for income taxes 170 95 259 125

Interest expense 1,943 3,450 3,527 7,663

IPO transaction-related costs - 10,922 - 10,922

Equity-based compensation expense 2,193 1,221 4,330 1,221

Loss (gain) on extinguishment of debt - 907 - 907

Other income (32) (117) (151) (159)

Provision for doubtful accounts 31 34 63 64

Loss (gain) on disposal of equipment 19 - 19 -

Accretion of asset retirement obligations 10 - 10 -

Adjusted EBITDA $ 30,137 $ 17,296 $ 58,116 $ 34,594


Emerge Energy Services LP

Citi 1x1 ConferenceLas Vegas

August 21, 2014

emes investor presentation for citi 1v1 2014 3

Investor Relations