2015 Analyst & Investor Day March 30, 2015 Strong. Innovative. Growing.
Investor Notice The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves that meet the SEC's definitions for such terms, and price and cost sensitivities for such…
Agenda & Speakers EnLink Midstream Barry Davis President & CEO Vision & Strategy Michael Garberding EVP & CFO Devon Energy David Hager Devon Energy Corporation, COO Sponsorship Presenter & Panelist Steve Hoppe EVP, President of…
The Leadership Experienced Executive Management Team with a Proven Track Record EnLink Midstreams executive management team is comprised of former Crosstex and Devon senior management and other experienced midstream leaders Management…
Built for the Road Ahead: Executing on Our Growth Strategy Barry E. Davis, President and Chief Executive Officer 7
Strong, Diversified Investment in the MLP Space Designed for Safety, Stability & Growth Top tier midstream energy service for our customers Mastio Service Award winner in 2014 Stability of cash flows 95% fee-based contracts 50%…
The Vehicle for Sustainable Growth Diverse, Fee-Based Cash Flows Devon is EnLink Midstreams largest customer (50% of consolidated 2015E adjusted EBITDA*) EnLink Midstreams growth projects focused on crude/NGL services and rich gas…
The Vehicle for Sustainable Growth Stable Cash Flows From High Quality Contracts 80% of EnLinks segment cash flows are supported by long-term, fee-based contracts with either firm transport agreements or minimum volume commitments.…
The Vehicle for Sustainable Growth Powered By a Diverse Set of Assets & Services Significant Size & Scale 9,100 miles of pipelines 16 gas processing plants, 3.6 Bcf/d capacity 7 NGL fractionators, 280,000 Bbl/d capacity Diversity…
The Vehicle for Sustainable Growth MLP Structure With a Premier Sponsor Devon Energy Corp. Public NYSE: DVN Unitholders (BBB+ / Baa1) 70% 30% EnLink Midstream, LLC ENLC owns 100% of IDRs 41% General Partner 41% NYSE: ENLC…
First Year Project Execution 3.7 Billion of Drop Downs, Growth Projects and Acquisitions E2 in Ohio River Valley AVENUE 1 25% of EMH 1.3 Billion Victoria Express in Eagle Ford (subject Completed & Dropdowns Announced to closing)…
The Four Avenues for Growth Identified Opportunities from 2015 - 2017 AVENUE 1 AVENUE 2 AVENUE 3 AVENUE 4 Dropdowns * Growing Organic Growth Mergers & With Devon Projects Acquisitions Access Pipeline in Expansions to Cana ORV…
Destination 2017 Line of Sight to Double the Size of EnLink Adjusted EBITDA (000) 85 WTI 1,700 4.00 gas 1,500 1.4 B 1,300 1,100 900 700 Incremental Adjusted EBITDA 500 2015E Drop Growing Organic M&A Destination 2017…
Were Just Getting Started Executing on Growth Strategy to Double In Size By 2017 Built for safety, stability and growth Generating stable and growing cash flows Powered by strategically located and complementary assets…
Devon Energy Sponsorship Dave Hager, Chief Operating Officer of Devon Energy Corporation 17
E&P Industry Where Are We Today North America is in the midst of a shale revolution Dramatic positive impact on supply of hydrocarbons Energy independence in North America is possible Success creating near-term imbalance between…
Devon Today A Leading North American E&P Heavy Oil Focused and balanced portfolio Proved reserves: 2.8 billion BOE Net production: 664 MBOED Upstream revenue: 60% oil Deep inventory of opportunities Rockies Oil Prolific Eagle…
A Leading North American E&P Strategy for Long-Term Success Premier and sustainable asset portfolio High-returning projects Positioned in top-tier basins Balanced between oil and gas Deep inventory of opportunities Focused on…
Strategic Midstream Business EnLink Ownership Overview Devons equity ownership interest 41% of MLP (ENLK: 120 MM units) 70% of GP (ENLC: 115 MM shares) Highly accretive transaction DVN assets initially valued at 4.8 billion…
Why EnLink is Important to Devon EnLink infrastructure enhances value of E&P production stream A competitive advantage in high activity basins Ownership interest ensures midstream support of E&P activity Improves capital efficiency…
Building Operational Momentum 2014 Highlights Completed portfolio transformation Creation of EnLink Midstream Accretive Eagle Ford acquisition Divested 5 billion of non-core assets EnLink drove record midstream profits Oil…
Disciplined Capital Allocation 2015 Capital Outlook Balances capital with cash inflows Reduced 20% from 2014 Focused on best development opportunities Minimal exploration activity Organic midstream capital(1): 135 million…
Oil Driving Production Growth 2015 Production & Midstream Outlook Oil production growth: 20% - 25% Driven by Eagle Ford, Permian & Jackfish 3 Top-line BOE growth: 5% Capital efficient growth achievable with 20% less spend than…
Strong Balance Sheet & Liquidity EnLink Enhances Financial Strength Strong investment-grade ratings Cash balances: 1.5 billion Net debt(1): 7.8 billion (excluding EnLink) Cash flow protected by hedges 50% of 2015 oil protected at 91…
Eagle Ford Overview Top-tier acreage position 82,000 net acres focused in DeWitt Q4 net production: 98 MBOED Highest returning asset in portfolio Delivering industry-leading well results 1,000 undrilled locations in inventory 2014…
Eagle Ford Strategic EnLink Infrastructure Victoria Express Pipeline First Devon to EnLink dropdown transaction * 56 mile crude oil pipeline from Devons Eagle Ford core to Port of Victoria terminal Operational Flexibility Pipeline…
Permian Basin Overview Industry leader in basin 1.2 million net surface acres with stacked pay Q4 net production: 98 MBOED Production growth 23% higher in 2014 Deep inventory of low-risk projects 5,000 locations in Delaware Basin…
Heavy Oil Overview Located in best part of oil sands Low geologic risk Thick and continuous reservoir Industry leading operating results Massive risked resource: 1.4 BBO Features of each Jackfish project: 300 MMBO gross EUR Long…
Heavy Oil Dropdown Potential Access Pipeline Three 180 mile pipelines from Sturgeon Terminal to Devons thermal acreage 30 miles of dual pipeline from Sturgeon Terminal to Edmonton Capacity net to Devon: Blended bitumen: 170 MBOD…
Anadarko Basin Cana-Woodford Overview Excellent Q4 results in Cana-Woodford Q4 net production: 76 MBOED Production increased 35% YoY 1st operated STACK well brought online High-rate development wells in Q4 Cana results 20% above…
Barnett Shale Overview Significant gas optionality Net acres: 623,000 Best position in play Q4 net production: 201 MBOED Liquids 27% of production mix EnLink midstream infrastructure significantly enhances rates of return…
Other Potential Midstream Activity Potential for additional midstream activity in: Permian Basin Delaware Basin Northern Midland Basin Anadarko Basin Cana-Woodford Emerging STACK opportunity Eagle Ford Future business development…
Gas Business Unit Steve Hoppe, EVP & President of Gas Business Unit 35
Gas Business Unit North Texas, Oklahoma & West Texas WTX 132 126 7% 114 2015E OK 114 Consolidated 25% Segment Cash Flows * NTX 68% North Texas Largest gatherer and processer in Barnett Shale Basin has a long and stable…
North Texas Significant Platform Position With Long-Term Future Key Takeaways Segment Cash Flows MM Basin has a long, stable future Focus on increasing market 440 380 share and offsetting declines 2014 * 2015E ** Excellent…
Oklahoma Stable Assets with Expansion Opportunities Key Takeaways Segment Cash Flows MM Continued expansion opportunities for Cana Pursuing large position in SCOOP 155 145 or Stack Potential pipeline expansion into 2014 * 2015…
Oklahoma Growth Opportunities Core Growth Area for Devon & EnLink Cana Outlook Expansion Opportunities * Devon & non-operated Establish a core position in a rigs in 2015: 8 3rd play GW/Stack/Scoop/ Devon gross wells: 95 Miss New…
Potential Expansion Opportunity Linking Cana & North Texas Expansion Opportunity * Evaluating project to integrate Oklahoma and North Texas assets Pipeline could be routed through active production areas Opportunity to utilize…
Permian Significant Platform in Core of Midland Basin Key Takeaways Segment Cash Flows MM Key growth area with large 40 platform in core of Midland Basin 9 Coronado acquisition adds large scale long-term growth (1) (2) 2014E…
Permian Growth Opportunities Significant Acreage with Multiple Pay Zones Effective Acreage from Multiple Zones in Midland Basin 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 Source: EnLink…
Permian Growth Opportunities Superior Drilling Economics in Midland Basin Midland Basin / Lower Spraberry Drilling Economics * Diamondback has assembled a strong acreage position in the North Midland Basin that will continue to serve…
Permian Growth Opportunities Superior Drilling Economics in Midland Basin EnLinks Midland Basin Expansion Opportunities ** Growth Plans Leverage LPC services Integrate Coronado assets with Bearkat Bolt-on and step out…
Gas Business Unit Summary 2015-17 2015 Key 2015E Segment Capital Investment Takeaways Cash Flows * Opportunities ** Basin has a long, stable future 380 MM 150 - 300 MM Focus on increasing market North Texas share and offsetting…
Louisiana Strategic Review Mac Hummel Executive Vice President Liquids BU President 47
Louisiana Strategic Review Executive Summary KEY TAKEAWAYS US market dynamics are Natural gas demand growth will creating regional supply Natural outpace supply growth and demand imbalances Gas which in turn are The Northeast…
EnLinks Louisiana Assets Are Unique and Well Positioned 49
US Natural Gas Demand Is Projected to Outpace Supply Lower-48 Gross Natural Gas Production Production (Bcf/d) 120 12 Demand growth driven by LNG exports and industrial 100 10 Supply/Demand (Bcf/d) new build/ expansions…
Louisiana Gas Supply Will Decrease While Demand Will Increase 2015 2020 Supply vs Demand Fundamentals Total Louisiana Production North Region From Production 5.3 to From 2.7 4.2 to bcf/d 2.2 bcf/d LNG Markets Demand South…
Increased Gas Demand in Louisiana Will Be Supported by Production in the Northeast Marcellus/Utica Gas Seeking 2014 2017: 20+ Louisiana pipeline projects to Markets Including move gas west and Industrial, LNG, Seasonal Outlets…
US NGLs Will Increase and Barrels Will Work to Make Their Way to Mont Belvieu Increase in NGL Supplies 2015 2020 (000s Bpd) Incremental US NGLs by 2020 1.6 MM Bbl/d By 2020 Louisiana Excess supplies will will only…
Ethane Demand in Louisiana Will Continue to Outpace Supply Source: En*Vantage 54
NGLs Will Need to Move From Mont Belvieu Into Louisiana Creating Another Cajun-Sibon-Type Opportunity Edmonton/ Ft. Saskatchewan Sarnia Conway Louisiana Cajun-Sibon Mt. Source: EnLink Midstream Belvieu 55
As Crude Oil Production Increases It Will Continue to Push Out Imports 20 18 I 16 M P O 14 R Crude Oil (MMb/d) T S 12 10 8 6 4 2 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 US Production Refinery…
Most of the Crude Demand in Louisiana Is Supplied From Offshore Production Or Is Imported Louisiana demand: 0.4 MMb/d from Texas 2.9 MMb/d Onshore production : 0.2 MMb/d Offshore production : 1.2 MMb/d 57 Source:…
Imported Barrels into Louisiana Will Continue to be Displaced Louisiana crude oil imports have decreased over time, but there still exists non-structural imports that can be backed out going forward 2.5 700,000 bpd of…
Key Takeaways US market dynamics are creating regional supply and demand imbalances which in turn are generating infrastructure opportunities Louisiana market dynamics across all products are creating similar opportunities…
Liquids Business Unit Mac Hummel, EVP & President of Liquids Business Unit 60
Liquids Business Unit Louisiana Gas & Liquids, ORV & Crude/Condensate LA Gas ORV 2015E Crude / 20% Cond Consolidated 28% Segment LA NGLs** Cash Flows * 52% Louisiana NGLs NGL services from Mt. Belvieu to the river New…
Louisiana Gas and NGLs Providing the Fuel for Industrial Growth LA Gas 2015E Crude / 20% Consolidated Cond 132 126 114 28% 114 Segment LA NGLs** Cash Flows * 52% Louisiana NGLs System One of largest NGL platforms in…
Louisiana NGLs A New Supply Alternative for Louisiana Key Takeaways Segment Cash Flows NGL Capacities MM Mbbl/d Completion and market reach of Cajun- Pipeline Fractionation 151 Sibon provides significant bolt-on 194 opportunities…
Louisiana Gas Developing Opportunities from Market Leading Position Key Takeaways Segment Cash Flows Natural Gas Capacities Bcf/d Positioned to participate in demand growth MM 64 Pipeline Processing Storage driven by industrial…
Gulf Coast Acquisition Numerous Opportunities in Development Estimated Estimated Potential Projects** Capital Cost Adjusted EBITDA * Near-term Optimization Projects 50 MM 10-20 MM Repurposing Pipelines 130-300 MM 30-40 MM…
Louisiana Growth Opportunities Focus on Optimization, Re-purposing & Bolt-Ons Louisiana Gas Outlook Louisiana NGLs Weighted average life of Outlook north Louisiana Expand market reach to transmission contracts: 3 new customers and…
Crude & Condensate Assets Expanding Our Footprint and Services LA Gas ORV 2015E Crude / 20% Cond Consolidated 28% Segment LA NGLs** Cash Flows * 52% Louisiana Crude Crude terminals at Eunice and Riverside with rail, truck and…
Victoria Express Drop Down New Platform in the Eagle Ford Key Takeaways Segment Cash Flows 56 mile crude / condensate line from MM 8 Eagle Ford core to Port of Victoria Capacity Pipeline Today: 50,000 Bbl/d 0 Planned Pipeline By…
ORV Focused on Condensate Services Key Takeaways Segment Cash Flows Maintaining legacy crude MM 48 business 26 Enhancing stabilization and compression services Growing condensate and 2014 * 2015E ** brine services footprint…
ORV Growth Opportunities * Water * Condensate Pipeline Increased water production Extension of Open Season accompanying increases in oil through mid-April 2015 and condensate Ongoing discussions with key Enter term…
Liquids Business Unit Summary 2015-17 Long-Term 2015 Key 2015E Segment Capital Investment Takeaways Cash Flows * Opportunities ** Integrated supplier to 151 MM Louisiana Louisiana NGLs Pipeline conversion & bolt-on 350 - 700 MM…
Financial Outlook Michael Garberding, EVP & Chief Financial Officer 72
The Vehicle for Sustainable Growth Well Positioned with a Strong Balance Sheet Strong Balance Investment grade balance sheet at ENLK (BBB, Baa3) Sheet & Target debt / adjusted EBITDA of 3.5x Credit Profile Strong liquidity with 1.5…
Destination 2017 Line of Sight to Double the Size of EnLink Adjusted EBITDA (000) 85 WTI 1,700 4.00 gas 1,500 1.4 B 1,300 1,100 900 700 Incremental Adjusted EBITDA 500 2015E Drop Growing Organic M&A Destination 2017…
Long Term Vision Strong Balance Sheet EnLink has a strong, investment grade balance sheet ENLKs investment grade (BBB/Baa3) credit ratings provides great access to capital Since inception, ENLK has effectively refinanced its…
The Vehicle for Sustainable Growth Cash Flow Stability from Long-Term Contracts 80% of EnLinks cash flows are supported by long-term, fee-based contracts with either firm transport agreements or minimum volume commitments. % of 2015E…
Drop Downs Devon Sponsorship Creates Drop Down Opportunities 2014 2015 2016 2017 Victoria 25% E2 EMH Express Pipeline * Drop Down Cost: 193 MM 25% EMH ** Estimated Adjusted EBITDA: 20-25 MM Access Pipeline ** Drop Down…
2015 Consolidated Capital Expenditures Potential long term capital spending of 2-3 billion per year for acquisitions & drop downs Growth Capital Expenditures * Maintenance Capital Expenditures * 2015E Combined: 500 MM 2015E…
ENLC 2015E Tax Overview ENLC has three principal sources of income, each with different levels of exposure to federal and state income tax: IDRs: ENLC receives a special allocation of taxable income in relation to the IDR payouts…
Key Performance Drivers Short Term Performance Drivers Production optimization in Oklahoma and Barnett shale Timing of Utica condensate production and ORV execution Indirect exposure to commodity prices Long Term Performance…
Closing Remarks Barry Davis, President & CEO 83
Were Just Getting Started Executing on Growth Strategy to Double In Size By 2017 Built for safety, stability and growth Generating stable and growing cash flows Powered by strategically located and complementary assets…
Appendix 85
Assets & Capacities Regions - Assets Miles / Capacity Regions - Assets Miles / Capacity Texas Oklahoma North Texas Gas Gathering & Transmission Pipelines 480 mi. 605 MMcf/d Gas Gathering & Transmission Pipelines 4,072 mi. 4,045 MMcf/d…
Reconciliation Segment Cash Flow to Operating Income 2015 Q2-Q4 2014 Forecasted Annualized (MM) Total segment cash flows* 854 779 General and administrative (145) (114) expenses Depreciation and amortization (372) (303)…
Reconciliation Net Income to Consolidated Adjusted EBITDA 2015 Q2-Q4 2014 Forecasted Annualized (MM) Net Income 219 347 Interest expense 105 56 Depreciation and amortization 372 303 expense Net distribution from equity 17…
Howard Energy Investment: Strategic South Texas Asset Footprint Key Considerations Key Customers Howard Energy Partners (HEP) is a high growth midstream company with a strategically located asset base in South Texas Franchise position…
Gulf Coast Fractionator Investment: Serving Devon in Mont Belvieu Key Considerations EnLink owns a contractual right to the economics of Devons interest in the Gulf Coast Fractionator (GCF) GCF is a partnership among Devon, Targa…
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