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NAPTP 2011 MLP Investor Conference – Western Gas Partners Lp

Western Gas Partners Lp · May 25, 2011 · 23 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. NAPTP 2011 MLP Investor Conference – Western Gas Partners Lp – slide 1
    WES Investor Presentation National Association of Publicly-Traded Partnerships May 25, 2011
  2. NAPTP 2011 MLP Investor Conference – Western Gas Partners Lp – slide 2
    WES Overview Owner and operator of gathering, processing, and transportation assets serving seven basins Sponsor-based MLP Designed to acquire, over time, midstream assets from both Anadarko and Third Parties Natural Gas = Business…
  3. NAPTP 2011 MLP Investor Conference – Western Gas Partners Lp – slide 3
    Public Ownership of WES Anadarko Anadarko Petroleum Petroleum Corporation Corporation (NYSE: APC) (NYSE: APC) 100% Interest 44.3% Limited Partner Interest Public Western Western Gas Gas Holdings, Holdings, LLC LLC…
  4. NAPTP 2011 MLP Investor Conference – Western Gas Partners Lp – slide 4
    WES History 8/2010 8/2010 3/2011 3/2011 100 100 MM MM Accordion Accordion 133 133 MM MM Equity Equity Issuance Issuance 250 250 MM MM Term Term Loan Loan 800 800 MM MM Revolver Revolver 12/2009 12/2009 5/2010…
  5. NAPTP 2011 MLP Investor Conference – Western Gas Partners Lp – slide 5
    YTD Highlights Closed First Major Third Party Acquisition 303MM Platte Valley Acquisition from Encana Increased Quarterly Distribution to 0.39/Unit Eighth consecutive quarterly increase Generated Quarterly Distribution Coverage…
  6. NAPTP 2011 MLP Investor Conference – Western Gas Partners Lp – slide 6
    The WES Asset Portfolio Current Assets / Investments 12 natural gas gathering systems 7 natural gas treating facilities 7 processing facilities 1 natural gas pipeline 1 NGL pipeline 1 crude oil pipeline 1Q11 Throughput…
  7. NAPTP 2011 MLP Investor Conference – Western Gas Partners Lp – slide 7
    Strong APC Drilling Economics Minimum Gas Price for a 10% Before-Tax Rate of Return1 4.00 = Rockies basin in which WES owns midstream assets 3.50 3.50 3.20 3.00 3.00 3.00 2.40 2.50 NYMEX /Mcf 2.12 2.00 1.50 1.50…
  8. NAPTP 2011 MLP Investor Conference – Western Gas Partners Lp – slide 8
    Liquids-Rich Basins 1Q11 Gross Margin High gross margin assets; Lower gross continued Liquids-Rich Dry Gas margin assets; drilling as producers seek Basins Basins cash flow protection to capture high NGL prices, 70% 30% through…
  9. NAPTP 2011 MLP Investor Conference – Western Gas Partners Lp – slide 9
    Wattenberg/Platte Valley/White Cliffs - DJ Basin COLORADO APC ACREAGE APC LAND GRANT 25 miles WATTENBERG FIELD Description and Overview 2,814 mile gathering system 526 mile oil pipeline (10% interest) 2,630 receipt points…
  10. NAPTP 2011 MLP Investor Conference – Western Gas Partners Lp – slide 10
    Granger Green River Basin (Moxa/Jonah/Pinedale) WYOMING PINEDALE Description and Overview MOXA 815 mile gathering system ARCH WAMSUTTER Two cryogenic trains (200 MMcf/d capacity) Two refrigeration Trains (100 Mmcf/d…
  11. NAPTP 2011 MLP Investor Conference – Western Gas Partners Lp – slide 11
    Hilight and Newcastle Powder River Basin (East) WYOMING GILLETE Description and Overview 1,282 mile gathering system Two refrigeration processing plants in service Hilight delivers gas to MIGC (owned by WES), Newcastle to…
  12. NAPTP 2011 MLP Investor Conference – Western Gas Partners Lp – slide 12
    Chipeta/NGL Pipeline Uintah Basin (Greater Natural Buttes) UTAH APC ACREAGE Description and Overview 51% Ownership of Chipeta Processing, LLC 24% owned by APC, 25% owned by Ute Energy Chipeta Processing Plant 240 Mmcf/d…
  13. NAPTP 2011 MLP Investor Conference – Western Gas Partners Lp – slide 13
    WES Strategic Principles Minimize Maximize Liquidity Commodity Risk Maintain Capital Demonstrate Maturity Sponsor Support 14
  14. NAPTP 2011 MLP Investor Conference – Western Gas Partners Lp – slide 14
    Significant Liquidity 800MM of unused revolver capacity as of 5/25/11 Reported Reported EBITDA EBITDA // Debt EBITDA 11 Debt // EBITDA Interest Interest Expense Expense 4.0x 12.0x 3.5x Average: 9.53x 10.0x 3.0x…
  15. NAPTP 2011 MLP Investor Conference – Western Gas Partners Lp – slide 15
    Minimal Commodity Risk Long-Term Fee-Based Contracts and Fixed-Price Agreements Sponsor has Retained Commodity Price Risk Related to Dropdown Assets Gross Margin Last Twelve Months 3/31/2011 98% Fee-Based and Fixed-Price 2%…
  16. NAPTP 2011 MLP Investor Conference – Western Gas Partners Lp – slide 16
    Accretive Dropdowns 8.1X 8.2X 7/2009 8/2010 8/2010 7/2009 107 498 498 MM MM 107 MM MM 5/2008 5/2008 Chipeta Wattenberg Wattenberg Chipeta IPO IPO Drop Drop Drop Drop 2008 2009 2010 12/2008 12/2008 1/2010 1/2010…
  17. NAPTP 2011 MLP Investor Conference – Western Gas Partners Lp – slide 17
    Strong Financial Results Coverage Coverage Ratio Ratio Reported Reported EBITDA EBITDA 2.00x 60.0 1.80x : 57 % 50.0 GR 1.60x CA 1.40x 40.0 1.20x Millions 1.00x 30.0 0.80x 20.0 0.60x 0.40x 10.0 0.20x 0.00x 0.0…
  18. NAPTP 2011 MLP Investor Conference – Western Gas Partners Lp – slide 18
    Growth Strategy 1 More Dropdowns Midstream Asset Overview* Anadarko Western Gas Gathering systems 18 12 Processing & treating facilities 9 14 Interstate gas pipelines -- 1 NGL/Crude oil pipelines 2 2 Miles of pipeline 5,900 8,800…
  19. NAPTP 2011 MLP Investor Conference – Western Gas Partners Lp – slide 19
    Growth Strategy 2 Strategic Expansions Chipeta Train III Underwritten by Anadarko volume commitment Base Case IRR of 18-25% Platte Valley Assets Completing expansion project begun by Encana Expanding capacity from 84 to 100…
  20. NAPTP 2011 MLP Investor Conference – Western Gas Partners Lp – slide 20
    Growth Strategy 3 Equity Options White Cliffs Case Study APC Negotiates Equity Option Uses negotiating leverage in committing firm transportation WES Acquires Option from APC Subsequent exercise Immediate accretion Potential…
  21. NAPTP 2011 MLP Investor Conference – Western Gas Partners Lp – slide 21
    2011 Outlook ( in millions) Full-Year 2011 Adjusted EBITDA 230 250 Total Capex 97 112 Maint. Capex as % of Adj. EBITDA 11 - 14% 22
  22. NAPTP 2011 MLP Investor Conference – Western Gas Partners Lp – slide 22
    www.westerngas.com
  23. NAPTP 2011 MLP Investor Conference – Western Gas Partners Lp – slide 23
    Non-GAAP Adjusted EBITDA Reconciliation (in thousands) Reconciliation of Net Income to Adjusted EBITDA (1) 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Net income 17,396 20,113 16,958 18,124 17,048 19,278 22,914 23,411 31,481…

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