bwms_8k-ex1001.htm

 

    
      

    

    Exhibit 10.1

     

    
      
        
          

          NASDAQ
OTC BB Symbol: BWMS

        

      

      
        
           


        

        
           


          
            

          

        

        
           


        

      




      
        
          

          BWMS

Small-Cap
Virtual
Conference
February 23, 2010

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          ORGANIZATION

          v In
February 2008, a group of private investors:

           ü Changed
the name of the Company to Blackwater Midstream
 Corp.
(OTC Symbol: BWMS),

           ü Appointed
a new Board of Directors,

           ü Appointed
a new Management Team :

            Michael
Suder - Chief Executive Officer

            Dale
Chatagnier - Chief Operations Officer

            Francis
Marrocco - Chief Commercial Officer

           ü Designated
a business objective to develop and operate
 independent
bulk liquid storage terminals.

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          ORGANIZATION

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          v Blackwater’s
management team has collectively over 50 years
 experience
developing, building and expanding independent
 liquid
terminal facilities.

          v Management
has consistently demonstrated their ability while
 with
Delta Terminal Services, Kinder Morgan, LBC, and Canal
 Barge
to acquire underperforming assets, improve the acquired
 facility
operations, and greatly increase the financial
 performance
of the assets (e.g. terminal locations at Harvey,
 LA;
Cincinnati, OH; Baton Rouge, LA; Staten Island, NY;
 Chicago,
IL).

          v Management
has extensive relationships with major customers
 (e. g.
petroleum refiners, chemical manufacturers, and product
 traders
& brokers) and a proven track record of securing long
 term
contracts for terminal and ancillary services.
 
 

           MANAGEMENT TEAM

          5

        

      

      
        
           


        

        
           


          
            

          

        

        
           


        

      




      
        
          

          STORAGE
TERMINALS and
INDUSTRY POTENTIAL

          v Midstream
terminal assets offer an attractive, low risk
 opportunity
to invest in the petroleum, chemical and
 agricultural
products sectors without taking commodity
 price
risk.

          v The Lower
Mississippi/ Gulf Coast region of the United
 States
has a chronic shortage of terminal storage for oil,
 refined
products, agricultural and chemical liquids.

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          v Storage
assets typically have high operating margins, in the
 60-65%
EBITDA margin range.

          v Third-party
terminalling businesses are generally
 independent
operations that support many different
 commercial
customers including refiners, blenders, traders
 and
marketers.

          v Income is
derived from tank leasing, operational charges
 associated
with blending services and throughput charges for
 receipt
and delivery options.

          STORAGE
TERMINALS and
INDUSTRY POTENTIAL

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          v Bulk
liquid terminals store a range of products including
 crude
oil, bunker fuel, gasoline, distillate, diesel, jet fuel,
 chemicals,
agricultural products, bio-diesel.

          v The
importance of bulk terminal facilities in the refined
 product
segment supply chain has grown significantly
 over
the past decade as the nation’s product supply
 patterns
have become increasingly more complex.

          STORAGE
TERMINALS and
INDUSTRY POTENTIAL

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          BLACKWATER’S
WESTWEGO,
LA TERMINAL

          The
facility consists of:

          v 26.5
acres, which includes up to 5 acres of expansion
 capability,

           54
Tanks - ranging in size from 4,700 to 102,000 barrels ,

           Total
Facility Capacity: 902,000
barrels,

           Current
Leased Capacity approx. 714,000 barrels,

            for a
current utilization rate of 78%.

          v As of
December 2008, the terminal had gross revenues of
 $2.4
million per year.

          v As of
April, 2010 and upon completion of the third new
 tank,
contracted revenues have been increased to
 annualized
rate of $5.6 million.

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          vBlackwater
has recently announced a facility
 expansion
that includes three 50,000 barrel tanks =
 $1,750,000. First
two tanks were completed in
 February
2010, the third will be on line by April
 2010.

          vConstruction
of a Mississippi River

           ship
dock=$2,500,000. Scheduled

           
completion April 2010.

          v2010
Revenue budget is $6.3 million with an
 EBITDA
budget of $4.350 million.

          v2010 -
2011-Further expansion possible on 5 acres
 for
approximately 300,000 barrels of storage -
 estimated
capital cost is $4,500,000 for Phase II
 expansion.

          BLACKWATER’S
WESTWEGO, LA
TERMINAL

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          Marketing
Strategy:

          vTo
specific industries and products that require value
 added
services at a site that is well positioned
 geographically
in their supply chain.

          vThis
years growth has been based on the facility’s
 strengths,
which are the size of the tanks, and the
 modal
flexibility available at the site.

          BLACKWATER’S
WESTWEGO,
LA TERMINAL

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          vThe
marine, rail, and truck product handling
 capabilities
attract the following industries:

            Vegetable
Oils

            Commodity
Chemicals

            Drilling
Fluids

            Specialty
Chemicals

            Molasses
Products

            Petroleum
Products

          BLACKWATER’S
WESTWEGO,
LA TERMINAL

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          BLACKWATER’S
GROWTH

          vIn the
current environment of scarce storage
capacity and availability in the Gulf
Coast region, the
opportunity exists for Blackwater Midstream
to
grow:

          ü Efficiently
within the Westwego, LA
 terminal
fence line.

          
            ü Taking
advantage of a reduced project

                      
  cost by
utilizing the existing

                      
 infrastructure of the facility and the 

             inherent
economies of scale.

          

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          BLACKWATER’S
GROWTH

          
Forecasted
Growth
at the Westwego, LA Terminal

          *Does not
include BWMS overhead or debt service

          14

          	
                  YEAR

                	
                  2009

                	
                  2010

                	
                  2011

                	
                  2012

                
	
                  BARRELS

                	
                   752,000

                	
                   902,000

                	
                   1,202,000

                	
                   1,202,000

                
	
                  REVENUE

                	
                  $3,470,000

                	
                  $6,300,000

                	
                  $10,050,000

                	
                  $10,783,000

                
	
                  EBIDTA

                	
                  $2,462,000

                	
                  $4,350,000

                	
                  $6,750,000

                	
                  $7,383,000

                


        

      

      
        
           


        

        
           


          
            

          

        

        
           


        

      




      
        
          

          BLACKWATER’S
GROWTH

          vBlackwater’s
“roll-up” strategy is to acquire
 underperforming,
non-strategic, niche terminalling
 assets
which will enable the Company to build a
 diversified
asset base and mitigate business risk.

          v
Blackwater has announced a second acquisition for

            a
160,000 barrel terminal in Brunswick, Georgia

           that is
expected to close within the first quarter
         
2010.

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          *The
forecasted projections presented
contain forward-looking statements
that
are based on management’s expectations,
estimates, projections and
assumptions.
Forward-looking statements are made
pursuant to the safe
harbor provisions of
the Private Securities Litigation Reform Act
of 1995,
as amended. These statements
are not guarantees of future performance
and
involve certain risks and uncertainties,
which are difficult to predict.
Therefore,
actual future results and trends may differ
materially from
what is forecast in forward-
looking statements due to a variety
of
factors.