InfraREIT, Inc.Wolfe Research Power & Gas Leaders Conference

September 2015

Safe Harbor

2

Forward Looking Statements

This presentation contains “forward-looking statements” about the business, financial performance, contracts, leases and prospects of InfraREIT, Inc. (the “Company”).

Words such as “could,” “will,” “may,” “assume,” “forecast,” “position,” “predict,” “strategy,” “guidance,” “outlook,” “target,” “expect,” “intend,” “plan,” “estimate,” “anticipate,”

“believe,” “project,” “budget,” “potential” or “continue” and similar expressions are used to identify forward-looking statements, although not all forward-looking

statements contain such identifying words. These forward-looking statements are based on management’s current expectations and assumptions about future events

and are based on currently available information as to the outcome and timing of future events. This presentation also contains forward-looking statements that have

previously been publicly disclosed by the Company. These previously disclosed forward-looking statements should not be deemed reaffirmed or updated by their

inclusion in this presentation. The Company’s actual results, performance or achievements could differ materially from those expressed or implied by any forward-

looking statements made in connection with this presentation. The Company’s capabilities or performance, stockholder value as well as any other statements that are

not historical facts in this presentation are forward-looking statements that involve certain risks and uncertainties, many of which are difficult to predict and beyond the

Company’s control. Factors that could cause actual results to differ materially from the results contemplated by such forward-looking statements include, without

limitation, risks that the capital expenditures the Company expects will not materialize for a variety of reasons, including as a result of lower oil and gas drilling and

related midstream and service company activities in the Permian Basin relative to the Company's current expectations; the Company’s ability to acquire electric

transmission and distribution assets (T&D assets) on terms that are accretive to stockholders; the Company’s current reliance on its tenant for all of the Company’s

revenues and, as a result, the Company’s dependency on its tenant’s solvency and financial and operating performance; defaults on or non-renewal or early termination

of leases by the Company’s tenant; risks related to future lease negotiations; changes in the regulated rates the tenants of the Company’s assets may charge their

customers; the completion of the Company’s capital expenditure projects on time and on budget; competitive conditions for the development and acquisition of T&D

assets; insufficient cash available to meet distribution requirements; the price and availability of debt and equity financing; the Company’s level of indebtedness or debt

service obligations; changes in governmental policies or regulations with respect to the Company’s permitted capital structure, acquisitions and dispositions of assets,

recovery of investments and the Company’s authorized rate of return; weather conditions and other natural phenomena; the effects of existing and future tax and other

laws and governmental regulations; the Company’s failure to qualify or maintain its status as a real estate investment trust (REIT); availability of qualified personnel; the

termination of the Company’s management agreement or development agreement or the loss of the services of the Company’s manager or the loss of access to the

development function of the Company’s developer; the effects of future litigation; changes in the tax laws applicable to REITs; adverse economic developments in the

electric power industry; and changes in general business and economic conditions, particularly in Texas. When considering forward-looking statements, you should

keep in mind the risk factors and other cautionary statements described under the heading “Risk Factors” included in the Company’s filings with the Securities and

Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary

materially from those indicated. Forward-looking statements speak only as of the date made and reaffirmed, and the Company disclaims any obligation to update or

revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Non-GAAP Legend

This presentation contains certain financial measures that are not recognized under generally accepted accounting principles (GAAP). These non-GAAP measures are

presented because InfraREIT’s management believes they help investors understand InfraREIT’s business, performance and ability to earn and distribute cash to its

stockholders by providing perspectives not immediately apparent from net income. These measures are also measures frequently used by securities analysts, investors

and other interested parties. The presentation of cash available for distribution (CAD), funds from operations (FFO) in this presentation are not intended to be

considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. In addition, InfraREIT’s method

of calculating these measures may be different from methods used by other companies, and, accordingly, may not be comparable to similar measures as calculated by

other companies that do not use the same methodology as InfraREIT.

Introduction to InfraREIT

3

High-growth company focused on owning electric transmission and distribution

(T&D) infrastructure assets in the U.S., with an emphasis on the Texas market

and the Southwest

Unique opportunity to invest in a rapidly expanding, dividend-focused business

Double-digit growth is expected in Cash Available for Distribution (CAD) per

share, facilitated by Footprint Project capital expenditures, a robust pipeline of

development projects and potential acquisition opportunities

Experienced management team

Closely aligned with Hunt Consolidated, Inc. (Hunt), InfraREIT’s development

partner and long-term investor

Investment Highlights

4

Attractive Asset

Portfolio

~$1.1 bn in regulated electric T&D assets (rate base)

Transmission assets currently comprise ~75% of rate base

Stable Cash Flow 100% of revenue driven by regulated asset base

REIT revenue governed by multi-year leases

Strong Track

Record

Increased rate base from $60 mm in 2009 to ~$1.1 bn in 2Q 2015

Successfully developed 300 miles and 4 substations of CREZ transmission system

Closed acquisitions and completed rate case under REIT structure

Constructive

Regulatory

Environment

Constructive T&D regulatory framework in Texas

Texas regulation supportive of REIT structure

Interim rate filings minimize regulatory lag

Efficient Structure REIT structure enables structurally advantageous cash generation

Hunt is highly aligned with shareholders

High-Growth

Opportunities

10% - 15% cumulative annual growth rate in dividends per share for 2015 – 2018

Footprint Projects expected to achieve lower half of range

Robust pipeline of ROFO projects, other T&D projects from Hunt and 3rd party

acquisitions

Expect 2015 CAD per share between $1.07 and $1.12; quarterly dividend for

remainder of 2015 of $0.225 per share

Hunt Consolidated: A Proven Energy Developer

5

Founded in 1934, the Hunt Oil Company and Hunt Consolidated, Inc. (a

diversified holding company managed by the Ray L. Hunt family) are actively

engaged in the energy and infrastructure businesses throughout the world

Hunt has a long history of entrepreneurial activity and a successful track record

in developing and constructing large complex projects, such as the Texas CREZ

project

Hunt has successfully partnered with large multinationals, international partners

and governments, and has a presence in 14 countries around the world

Strategic Sponsor with Long-Term Alignment

6

Through its ownership and its agreements as manager (Hunt

Manager) and developer (Hunt Developer), Hunt is highly

aligned with InfraREIT shareholders

Hunt owns approximately 25.2% of InfraREIT(common stock and

operating units) as of June 30, 2015

Lock-up agreements in respect of common stock and operating units

Incentive distribution feature in the management agreement

Hunt is required to offer specific development projects (ROFO Projects) to

InfraREIT

Hunt intends for InfraREIT to be the primary owner of Hunt’s future T&D

development projects

Attractive Asset Profile

7

Dallas

Austin

San Antonio

Houston

El Paso

Amarillo

Texas

StantonCeleste

Brady

McAllen

Railroad DC Tie

Service Territory

Panhandle Transmission

Railroad DC Tie

PanhandleTransmission

~75% of rate base

~ 620 miles

Transmission

Operations Center

Railroad DC Tie with

Mexico (300 MW)

Distribution ~25% of rate base

~10,500 miles

Over 50,000 electric

delivery points

Constructive Regulatory Environment

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ERCOT

Texas has its own electrical grid managed by the Electric

Reliability Council of Texas (ERCOT)

Electric utilities are subject to regulation by the Public Utility

Commission of Texas (PUCT)

Transmission revenue requirement can be updated through

a rate case or an interim Transmission Cost of Service

(TCOS) filing (twice per year)

Distribution rates are typically updated through a rate case

State government and regulators focused on further

enabling the growth of the Texas economy by providing

reliable and inexpensive electric service

REIT structure approved by the PUCT in 2008

2014 Rate Case Settlement: 9.7% allowed ROE and 55% debt / 45% equity

$60

$1,100

2009 Q2 2015

Proven Results & Track Record

9

25%75%

Distribution Transmission

2014 Rate Base

The CREZ Project, capital expenditures and acquisitions have enabled us to

significantly grow our business, with a heavy focus on Transmission

Rate Base$ millions

Disciplined, Multifaceted Pursuit of Growth

10

Footprint Projects

(Funded by InfraREIT)

Hunt Development

team members

have an average of

15 years’ industry

experience

ROFO Projects

Growth Strategy Growth Drivers

• Population and economic growth across Texas

• Energy-driven economic expansion

• Generator interconnections to Panhandle

Transmission assets

• Specific Hunt T&D projects under construction or

in development

• Cross Valley transmission line and Golden

Spread interconnection have approved CCNs

and are under construction

• Value enhancing M&A Transactions that build on:

• Hunt’s industry relationships and reputation

• Expertise with REIT structure

• Future T&D projects developed and constructed

by Hunt

• Primarily focused on Texas and the Southwest

Other Hunt

Development Projects

Acquire other T&D assets

from third parties

Economic Drivers of Footprint Growth

11

Renewable Energy Development and Interconnection in the

Panhandle and South Plains (CREZ Project)

Connects high-potential renewables zones to the North and Central

Texas load pockets

The Golden Spread Electric Coop Interconnection (ROFO Project)

connects to Panhandle Transmission Lines

Economic Expansion in West Texas

Investment required to ensure reliability and meet identified customer

requirements

Regional electricity usage has grown rapidly; significant unmet needs

Economic and Population Growth in South Texas

Strong population growth in the Rio Grande Valley and expanding

economic activity on both sides of the Texas and Mexico border

Track record and relationships in South Texas contributed to Cross

Valley Transmission Line (ROFO Project) opportunity

Source: ERCOT, US Census Bureau, Texas State Data Center

Pipeline of Development Projects

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ROFO

Project (1)

Estimated (2)

Project CostExpected

Completion Status

GSEC Inter-

connection$80-$100mm 2016

Under

construction

Cross

Valley Line $160-$185mm 2016

Under

construction

Southline $700-$800mm —Draft EIS

Published

Verde $60-$80mm —In

development

Under Construction Other ROFO Additional Development Opportunities

(1) ROFO projects are identified projects that are being developed by Hunt Consolidated, Inc. and its affiliates with respect to which

InfraREIT has a right of first offer.

(2) The Company publicly disclosed this information previously and is not updating it or reaffirming it as of August 7, 2015.

NM

TX

AZ

NV

CA

M E X I C O

NV

CA

OK

TX

AZNM

MEXICO

Additional U.S. –

Mexico DC Ties

Additional South Texas

Transmission / Generation

Interconnections

Import capacity from

New Mexico and

Arizona to California

PJM and MISO

interconnection

ERCOT

Southeast

Loop

Transmission

Line

South Plains

Reinforcement

Southline

Transmission

Project

Verde Transmission

Project

Cross Valley

Transmission Line

Golden Spread

Electric Coop

(GSEC)

Interconnection

Lubbock Power & Light

Interconnection

ROFO Project UpdateAs of September 30, 2015

ROFO Project State Status

Golden Spread

InterconnectionTX

• CCN (Certificate of Convenience & Necessity) received

• Structural installation and wire stringing underway

• Bids for major components have been received

• Expected completion in late Q1 or early Q2 2016

Cross Valley

TransmissionTX

• CCN received

• Structural installation underway

• Bids for major components have been received

• Expected completion in late Q2 or Q3 2016

Southline AZ, NM

• Draft EIS (Environmental Impact Statement) published in April 2014

• Achieved Phase 3 status in WECC (Western Electricity Coordinating

Council) ratings process in March 2015

• FERC (Federal Energy Regulatory Commission) granted a PDO

(Petition for Declaratory Order) in September 2015

Verde NM • Easement agreements reached with three Native American Pueblos

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Governance & Management

14

Board Structure 9 total members, 6 independent

Related Party

Transactions Requires majority approval by the independent board members (i.e.,

ROFO Project acquisitions)

Management (Hunt Manager)

CEO, CFO and General Counsel are officers of InfraREIT and Hunt

Manager

Responsible for the day-to-day business and legal activities of

InfraREIT

Annual base fee is equal to $13.1 million as of April 1, 2015 through

March 31, 2016, and 1.50% of total book equity as of the previous

year thereafter

Capped at $30 mm per year

Incentive fee is equal to 20% of dividends per share in excess of the

Threshold Distribution Amount (120% of initial dividend) payable

quarterly

2015 Dividend per share: $0.225

Threshold Dividend: $0.270

Management

Agreement(Hunt Manager)

Structure Mechanics

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SDTS (2)

Shareholders

InfraREIT (1)

Hunt Family

Sharyland

Utilities

Customers

T&D Services Cash

Rent

1

2

3

4 Ownership (3)

Hunt Manager

Hunt Developer

100% Interest

(1) Represents InfraREIT public entity, InfraREIT Partners, LP (Operating Partnership) and Transmission and Distribution

Company, L.L.C. (TDC).

(2) Represents Sharyland Distribution & Transmission Services, L.L.C. (SDTS) and subsidiaries.

(3) Represents Hunt Transmission Services, L.L.C. (limited partner of the Operating Partnership & shareholder of InfraREIT)

Conducted business as a REIT since 2010

SDTS owns the T&D

assets and leases them to

Sharyland

Sharyland collects rate-

regulated revenue from

other utilities and retail

electric providers

Sharyland makes regular

lease payments to SDTS

InfraREIT receives a tax

deduction equal to the

amount of dividends the

Company distributes

1

2

3

4Lease

Hunt

Consolidated,

Inc.

Financing Strategy

16

Focus on Regulated

T&D Opportunities

Maintain Strong Balance Sheet

Grow Dividends

Sign long-term leases

that reflect regulated

rate structure

Minimize regulatory

lag with prudent rate

case / TCOS filings

80% - 85% long-term

CAD payout ratio

Construct Footprint

Projects

Acquire ROFO Projects

Acquire Other Hunt

Development Projects

Opportunistically

acquire other T&D

assets

Target consolidated credit metrics of 60% Debt / Capitalization and 12% AFFO / Debt

Maintain 55% Debt / Capitalization at SDTS

Maintain significant liquidity to support capex plan and financial flexibility

Investment Highlights

17

Attractive Asset

Portfolio

~$1.1 bn in regulated electric T&D assets (rate base)

Transmission assets currently comprise ~75% of rate base

Stable Cash Flow 100% of revenue driven by regulated asset base

REIT revenue governed by multi-year leases

Strong Track

Record

Increased rate base from $60 mm in 2009 to ~$1.1 bn in 2Q 2015

Successfully developed 300 miles and 4 substations of CREZ transmission system

Closed acquisitions and completed rate case under REIT structure

Constructive

Regulatory

Environment

Constructive T&D regulatory framework in Texas

Texas regulation supportive of REIT structure

Interim rate filings minimize regulatory lag

Efficient Structure REIT structure enables structurally advantageous cash generation

Hunt is highly aligned with shareholders

High-Growth

Opportunities

10% - 15% cumulative annual growth rate in dividends per share for 2015 – 2018

Footprint Projects expected to achieve lower half of range

Robust pipeline of ROFO projects, other T&D projects from Hunt and 3rd party

acquisitions

Expect 2015 CAD per share between $1.07 and $1.12; quarterly dividend for

remainder of 2015 of $0.225 per share

Appendix

Lease Mechanics

Lease Terms

InfraREIT is obligated to fund

capex for Footprint Projects

New assets are added to leases

through supplements

Lease renewals apply the same

methodology but are updated for

new rate case information

Approximately 80% - 90% of rent

is a fixed amount – paid monthly

Approximately 10% - 20% of rent

is variable based on a percentage

of Sharyland’s gross revenue less

adjustments – paid quarterly

Lease Objectives

InfraREIT

Rent payments intended to

provide InfraREIT with

approximately 97% of the

projected regulated return on rate

base investment attributable to

InfraREIT’s assets

Sharyland

Sharyland recovers operating and

maintenance (O&M) costs and a

portion of the return on InfraREIT’s

rate base

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Building InfraREIT’s Income Statement

Lease Revenue

Less: Corporate SG&A

Less: Depreciation

Operating Income

Less: Interest Expense

Less: Income Tax Expense

Net Income

A

B

C

D

E

A

B

C

D

E

Approximately 97% of regulated return on rate base

(traditional utility model)

Primarily management fee, public company costs and

professional fees at InfraREIT

PUCT-approved depreciation rates on InfraREIT’s assets

InfraREIT consolidated interest expense

As a REIT, corporate taxes applied to net taxable income,

less deduction for dividends paid

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InfraREIT Cash Available For Distribution Q2 2015 vs. Q2 2014

CAD grew by 10% over Q2 2014, reflecting growth in adjusted EBITDA

$ thousands Q2 2015 Q2 2014

Increase/(Decrease)

$ %

Net income $ 8,843 $ 5,513

Depreciation 9,671 8,366

FFO 18,514 13,879

Non-cash reorganization structuring fee — —

Percentage rent adjustment 6,095 6,729

Base rent adjustment 3,068 3,548

Amortization of deferred financing costs 912 830

Reorganization expenses — —

Non-cash equity compensation 185 120

Other income, net (847) (172)

Capital expenditures to maintain net assets (9,671) (8,366)

Cash Available For Distribution (CAD) $ 18,256 $ 16,568 $ 1,688 10%

Shares outstanding (as of 6/30/2015) 60,594

CAD Per Share $ 0.30

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InfraREIT Cash Available For Distribution June YTD 2015 vs. June YTD 2014

CAD grew by 25% over June YTD 2014, reflecting growth in adjusted EBITDA

$ thousands

YTD

2015

YTD

2014

Increase/(Decrease)

$ %

Net (loss) income $ (27,030) $ 10,505

Depreciation 19,179 16,827

FFO (7,851) 27,332

Non-cash reorganization structuring fee 44,897 —

Percentage rent adjustment 12,559 13,056

Base rent adjustment 5,131 3,984

Amortization of deferred financing costs 1,824 1,659

Reorganization expenses 333 —

Non-cash equity compensation 308 120

Other income, net (1,473) (39)

Capital expenditures to maintain net assets (19,179) (16,827)

Cash Available For Distribution (CAD) $ 36,549 $ 29,285 $ 7,264 25%

Shares outstanding (as of 6/30/2015) 60,594

CAD Per Share $ 0.60

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Debt Obligations & Available Liquidity

Long-Term Debt (rate / maturity)

($ millions)

Outstanding

As of June 30, 2015

TDC - Senior Secured Notes (8.50% / Dec. 30, 2020) $ 19.4

SDTS - Senior Secured Notes (6.47% / Sep. 30, 2030) 103.7

SDTS - Senior Secured Notes (7.25% / Dec. 30, 2029) 45.4

SP - Senior Secured Credit Facility (2.44% (1) / Jun. 20, 2018) (2) 391.7

SP - Senior Secured Notes (5.04% / Jun. 20, 2018) (2) 60.0

Total (3) $ 620.2

Liquidity Facilities

($ millions)

Total

Amount

Outstanding

As of June 30, 2015Available

InfraREIT Partners Revolver $ 75.0 $ — $ 75.0

SDTS Revolver 250.0 — 250.0

Total $ 325.0 $ — $ 325.0

Cash (as of June 30, 2015) 50.5

Total Available Liquidity $ 375.5

(1) Interest based on LIBOR at June 30, 2015, plus an applicable margin

(2) Sharyland Projects (SP) debt used to fund construction of our CREZ Transmission assets

(3) The sum of the Long-Term Debt Total may not equal due to rounding

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