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Investor and Analyst Conference – DCP Midstream Partners Lp

DCP Midstream Partners Lp · Oct 7, 2014 · 64 slides

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Slides

  1. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 1
    October 7 2014 INVESTOR & ANALYST CONFERENCE DPM Mobile IR App now available from the App Store Download: dcp midstream partners ir
  2. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 2
    Wealth of Opportunities: Track Record of Sustainable Value Wouter van Kempen Chairman, CEO & President, DCP Midstream Chairman & CEO, DCP Midstream Partners 2
  3. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 3
    Agenda Topic Speaker Wealth of Opportunities Wouter van Kempen Operating Responsibly Ghazi Shahin Permian Greg Smith Midcontinent Brian Frederick DJ Basin / Douglas Greg Smith Eagle Ford / East Texas / Discovery Brian Frederick Marketing…
  4. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 4
    The DCP Enterprise Management Sean OBrien Brian Frederick Chief Financial Officer President, South and DCP Midstream Midcontinent Business Units Chief Financial Officer DCP Midstream DCP Midstream Partners Wouter van Kempen…
  5. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 5
    DCP Enterprise Midstream Leader Enterprise Enterprise value of Second Straight Year value of 45B(1) 47B(1) 50% 50% 22.3% LP/GP Interest Public Unitholders 1 NGL Producer (3) 77.7% Common LP Interest Enterprise 1 value…
  6. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 6
    Our Philosophy Profitability Safety, Health & In Execution Environmental DCPs Operational Excellence Customers Reliability People Strong focus on critical success factors in managing and operating our business 7
  7. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 7
    Themes from Perception Study Dropdown & Growth for Growth Strategy Broader Management Owner Coordination Exposure & Competencies Commodity Distribution Growth Exposure 8
  8. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 8
    DCP Strategy Maximize NGL value chain as fully integrated midstream service provider Provide sustainable, Leverage long term growth to unmatched footprint investors and and maintain shareholders leadership position Capital…
  9. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 9
    DCP is in the Key Basins 15+ billion potential G&P DCPs Diverse Footprint industry investment through - Economically attractive basins 2023(1) MA - Best returns to producers - High drilling activity 1.5 MMBPD increase by 2023 825…
  10. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 10
    DCP Enterprise Today 2010 Today Growth for Growth 58 Plants 64 Plants(1) Strategy is paying off 60,000 miles of Pipeline 67,700 miles of Pipeline(1) 2010 6/30/2014 DCP Midstream Antrim Total Asset Growth: 60% DJ Basin Lucerne…
  11. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 11
    DCP Growth in All Basins DJ Basin/Wyoming/North YTD 6/30/14 Net Processing CapEx NGL Production Capacity Opportunity MBPD Bcf/d(1) B (2014e-2016e)(2) Permian 140 1.5 1.0 - 1.5 Douglas, WY DJ Basin/Wyoming/North(3) 50 1.0 1.0 -…
  12. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 12
    Our Transformation 2010 2014 2016+ Lucerne 2 OConnor Douglas, WY Douglas, WY Douglas, WY Wattenberg Mewbourn Wattenberg Wattenberg Conway Conway Conway National Helium Front Range Front Range Texas Express Texas Express Zia…
  13. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 13
    Operating Responsibly Ghazi Shahin Vice President, Operations DCP Midstream 14
  14. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 14
    Operational Excellence Ranked 1 in safety among 10 largest midstream companies Record low contractor injury rate Profitability Safety, Health & In Execution Environmental Ongoing initiatives ensure success in safe operations…
  15. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 15
    Operational Excellence Project execution focus Ranked 1 in safety among 10 largest midstream companies Plant optimization goals: o Best-in-class operator Record low contractor injury rate o Continue investing in assets Profitability…
  16. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 16
    Project Execution 4B Projects placed in service(1) Roberts Mewbourn Mewbourn Eagle OConnor Rawhide Goliad OConnor Keathley Canyon Zia II Ranch Plant Expansion Plant Plant Plant Plant Expansion Connector Plant 2011-2012 2013 2014…
  17. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 17
    Permian Greg Smith President, Permian and North Business Units DCP Midstream 18
  18. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 18
    Permian Basin - 2010 (1) 5.5 Permian Gas Production (Bcf/d) 5.3 5.1 NEW MEXICO Midland 4.9 4.7 Basin 4.5 Delaware 4.3 Basin 4.1 3.9 3.7 Zia Cline Bone Wolfberry 3.5 Jan-08 Jan-09 Jan-10 Spring (1) Central 2010 Permian Rig…
  19. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 19
    DCP in the Permian - 2010 (1) 5.5 Permian Gas Production (Bcf/d) 5.3 5.1 NEW MEXICO Midland 4.9 4.7 Basin 4.5 Delaware 4.3 Basin 4.1 Linam Ranch 3.9 Pecos Diamond 3.7 Zia Hobbs 3.5 Artesia Eunice Jan-08 Jan-09 Jan-10…
  20. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 20
    DCP in the Permian - 2014 (1) (1) Permian Gas Production (Bcf/d) Permian Rig Counts 5.0 439 Horizontal NEWMEXICO MEXICO 4.4 Vertical NEW 160 Linam Ranch Pecos Diamond Zia II 2010 2014 (2) Antelope Ridge Rawhide DCP…
  21. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 21
    Permian Opportunities (1) (1) Permian Gas Production (Bcf/d) Permian NGL Forecast (Mb/d) 5.7 930 NEW MEXICO 4.4 Sour gas system 301 Sweet gas Zia II system 2011 2013 2015 2017 2019 New Forecast Original Forecast New Plants…
  22. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 22
    Midcontinent Brian Frederick President, South and Midcontinent Business Units DCP Midstream 23
  23. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 23
    DCP in the Midcontinent - 2010 (1) Midcontinent Gas Production (Bcf/d) Wattenberg Kansas 8.4 8.2 Ladder Creek 8.0 Conway 7.8 7.6 7.4 Colorado 7.2 National Helium 7.0 Sherhan Moreland Mississippi Oklahoma 6.8 Lime…
  24. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 24
    DCP in the Midcontinent - 2014 Growth Across the Midcontinent Asset Wattenberg Kansas Midcontinent Production (Bcf/d) (1) Midcontinent Rig Counts (1) 8.1 250 Ladder Creek Conway 7.3 Horizontal 103 Vertical Colorado National…
  25. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 25
    Midcontinent Opportunities Midcontinent Gas Production Midcontinent NGL Forecast Mississippi Lime (Bcf/d)(1) 9.1 (Mb/d)(1) Expansion 676 Opportunity 7.3 373 Conway Colorado Mississippi Lime Oklahoma Expansions New Plants NGL…
  26. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 26
    DJ Basin / Douglas Greg Smith President, Permian and North Business Units DCP Midstream 27
  27. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 27
    DCP in the DJ Basin - 2010 Wyoming DJ Basin Gas Production 0.9 (Bcf/d)(1) 0.8 Colorado 0.8 0.7 0.7 Douglas, WY 0.6 0.6 Eaton Lucerne 0.5 Jan-08 Jan-09 Jan-10 Greeley 2010 DJ Basin Rig Counts(1) Noble Gemini Well…
  28. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 28
    DCP in the DJ Basin - 2014 Wyoming Strong horizontal drilling by key producers Colorado DJ Basin Production (Bcf/d)(1) DJ Basin Rig Counts(1) 1.0 Horizontal Douglas, WY 0.7 Vertical 69 Eaton 41 Lucerne 1 Lucerne 2 Greeley…
  29. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 29
    DJ Basin / Douglas Opportunities Wyoming Expanding footprint in the prolific, Plant 1.0-1.5B liquids rich DJ Basin CapEx Opportunities Colorado DJ Basin Production (Bcf/d)(1) DJ Basin NGL Forecast Mb/d(1) (2014e-2016e) 1.7 215…
  30. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 30
    Eagle Ford / East Texas / Discovery Brian Frederick President, South and Midcontinent Business Units DCP Midstream 31
  31. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 31
    DCP in Eagle Ford - 2010 (1) South Texas Gas Production (Bcf/d) 6.3 5.8 Giddings Eagle Ford Louisiana Wilcox 2008 2009 2010 South Texas Eagle Ford (1) 2010 Rig Counts 100 Seabreeze/Wilbreeze 50 0 Three Rivers…
  32. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 32
    DCP in Eagle Ford - 2014 Eagle Ford Gas Production Rig Counts(1) (Bcf/d)(1) 212 Giddings 5.2 Eagle Ford Horizontal 90 Vertical 0.1 Wilcox 2010 2014 (2) DCP Infrastructure 2010 2014 Eagle Goliad Processing Capacity…
  33. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 33
    Eagle Ford Opportunities Eagle Ford Gas Production Eagle Ford NGL Forecast (1) (1) (Bcf/d) 8.3 (Mb/d) 1,245 Giddings Eagle Ford 128 0.7 Wilcox Eagle One of the largest gathering and Goliad Sand Hills Seabreeze/Wilbreeze…
  34. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 34
    East Texas East Texas Significant contributor to DPMs Natural Gas Services earnings (1) DCP Infrastructure 2014 Processing Capacity (MMcf/d) 750 NGL Production (Bbls/d) 32,000 Crossroads The East Texas System continues to see…
  35. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 35
    Discovery Larose Methanol Extraction Keathley Canyon Connector Update Expansion of DPMs 40% ownership of Discovery Discovery System 215 miles: new 20 diameter deep water gas pipeline Existing Platform Pre-commissioning has…
  36. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 36
    Marketing & Logistics Don Baldridge President, Marketing and Logistics DCP Midstream 37
  37. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 37
    Our NGL Pipeline Network Unparalleled Access and Connectivity 2010 Logistics Footprint 2014 Logistics Footprint Black Lake Seabreeze/ Wilbreeze Significant NGL growth drives need for additional infrastructure 38
  38. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 38
    Our NGL Pipeline Network Today 2014 Exit Rate Target Sand Hills 145 MBPD Southern Hills 85 MBPD Total 230 MBPD Periods of throughput exceeding 250 MBPD Benefits of NGL Pipeline Network De-bottleneck NGL takeaway Black Lake…
  39. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 39
    NGL Pipeline Opportunities New Mexico Sand Hills Extended Reach Lea County Lateral Opportunity Lea County lateral extends Sand Hills into New Mexico Red Bluff Lake Lateral extends Spraberry Sand Hills into the prolific Red Bluff…
  40. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 40
    The Marcellus Network Opportunities DPMs unique footprint provides high growth potential in the Marcellus NGL distribution network for the Marcellus o Propane terminals o Chesapeake butane exports o Ethane storage at Marysville…
  41. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 41
    Integrating the Value Chain NATURAL GAS GATHERING MARKETING AND LOGISTICS DCPs Midstream Breadth AND PROCESSING and Depth Natural Gas Gathering & Processing & Residue Gas Utilities Industrial Residential Production Compression…
  42. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 42
    DCP Midstream Partners (DPM) Bill Waldheim President, DCP Midstream Partners 43
  43. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 43
    DPM - A Growth Story 5/2007 7/2007 8/2007 7/2010 1/2011 2011 4/2012 1/2012 3/2012 11/2009 1/2010 Southern Discovery Douglas / Black SE Texas Wattenberg Texas Express East Texas SE Texas Michigan Wattenberg OK System 40% Collbran…
  44. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 44
    Partnership Strategy DPM Strategy Evolution 2005 2009: 2010 2014: 2015 2016: Acquire Dropdown Organic Growth Pursue strategic and accretive Fund DCP Enterprise: Organic opportunities grow: acquisitions: DPM gains scale and scope…
  45. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 45
    DPM Capital and Distribution Outlook 2.0B 3 - 5B 2014 Distribution Outlook 2014e 2016e potential 2014e 2016e potential organic projects dropdowns from DCP 2014 distribution 2014 DCF target growth target 435-450 MM(1) 7% (MM) Type…
  46. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 46
    Natural Gas Services Key Highlights Michigan Strong growth from expanding asset System Wyoming base in the Eagle Ford, East Texas, System DJ Basin and Discovery Lucerne 1 Plant Lucerne 2 Plant DJ Basin System Natural Gas Services…
  47. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 47
    NGL Logistics NGL Logistics Stats(1) Key Highlights 4 Fractionators 4,000 miles of NGL pipelines Marysville Gross throughput capacity: 905 MBbls/d Storage Sand and Southern Hills pipelines NGL Storage capacity: 7 MMBbls Ramping…
  48. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 48
    Wholesale Propane Logistics Wholesale Propane Logistics Stats(1) Key Highlights Owned Terminals: 6 rail, 1 marine,1 pipeline Net Storage Capacity: 550 MBbls Completed contracting for the 2014/2015 winter heating season Contracted…
  49. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 49
    Capital Efficiency Eagle Ford System Sand Hills (100% view) Total Throughput (MMcf/d) Pipeline Throughput (Bbls/d) 1,200 175,000 1,100 140,000 105,000 1,000 70,000 900 35,000 800 - Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14…
  50. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 50
    Financial Overview Sean OBrien Chief Financial Officer, DCP Midstream Chief Financial Officer, DCP Midstream Partners 51
  51. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 51
    Financial Track Record Enterprise Value DCF Growth All Other Business Logistics 435-450MM 8.6B 109MM 2.5B 12/31/10 6/30/2014 2010 2014e Future Growth Opportunities New Basins DJ Basin Midcontinent Organic 2.0B Permian…
  52. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 52
    Financial Strategy Strong Growth Attractive Balance Sheet Opportunities Shareholder Returns DPM 350% AMZ 283% 12/02/2005 8/28/2014 Strong balance sheet provides Disciplined approach to Strong return on capital leads platform…
  53. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 53
    Funding Enterprise Growth Liquidity Progression (Includes credit facilities, debt and equity issuances since 2011, and includes equity issued to DCP Midstream) 1.25B Credit 3.0B Facility 2.1B in in Equity Debt Dec-11…
  54. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 54
    Managing DPMs Contract Portfolio 85% 2008 fee or hedged Recent Fee-Based Dropdowns/Projects since 2012: Hedged 40% Mont Belvieu Fracs Significant Growth in Existing Fee-Based Assets Unhedged 15% Texas Express NGL 70% Fee…
  55. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 55
    Cash Flow Flywheels Dropdown Organic Growth Acquisition Future 2014 G&P 2013 Opportunities 2012 Eagle Ford Eagle Ford 20.0% Pre 2012 46.67% Dropdown= Mont Belvieu Dropdown= 100% Fractionators 80% Interest Connections to…
  56. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 56
    Proven Track Record Adjusted EBITDA (MM) DCF (MM) 15 Consecutive 535-540 Distributions Increases (Per LP Unit) 30% 30% 435-450 CAGR CAGR 365 296 252 179 180 143 150 109 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12…
  57. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 57
    Closing Remarks Wouter van Kempen Chairman, CEO & President, DCP Midstream Chairman & CEO, DCP Midstream Partners 58
  58. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 58
    Summary Achieve scale & scope across the value chain FULLY INTEGRATED MIDSTREAM PROVIDER Increase fee based earnings Drop, build, or buy DPM funding DCP enterprise growth GROWTH FOR GROWTH STRATEGY 4 - 6B(1)of enterprise…
  59. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 59
    Question and Answer DPM Mobile IR App now available from the App Store Download: dcp midstream partners ir 60
  60. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 60
    Supplemental Information Appendix 61
  61. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 61
    Commodity Hedge Position Overall 95% fee-based/hedged in 2014 55% fee-based 45% commodity is 90% hedged Virtually all 2014 hedges are direct commodity price hedges Current Commodity Hedge Position as of June 30, 2014 Hedge Price…
  62. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 62
    Growth in Execution- G&P OConnor Goliad Plant Plant 160 MMcf/d gas processing plant in the DJ Basin 200 MMcf/d gas processing plant o 110 MMcf/d in service Oct13 in the Eagle Ford o Expansion to 160 MMcf/d in service Q114…
  63. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 63
    Growth in Execution- G&P Lucerne 2 Keathley Canyon Plant Connector 200 MMcf/d gas processing plant in the DJ Basin o Anchored by long-term, Expansion of DPMs 40% minimum throughput fee-based ownership of Discovery System…
  64. Investor and Analyst Conference – DCP Midstream Partners Lp – slide 64
    Growth in Execution- Logistics Texas Front Range Additional Express Pipeline Growth Projects Joint Venture in a 583 mile Joint Venture in a 435 Marysville Ethane NGL pipeline providing miles NGL pipeline; which Expansion (started…

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