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Wells Fargo Securities Energy Symposium – Western Gas Partners Lp

Western Gas Partners Lp · Dec 6, 2011 · 25 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. Wells Fargo Securities Energy Symposium – Western Gas Partners Lp – slide 1
    Wells Fargo Securities Energy Conference December, 2011
  2. Wells Fargo Securities Energy Symposium – 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. Wells Fargo Securities Energy Symposium – Western Gas Partners Lp – slide 3
    Public Ownership of WES Anadarko Petroleum Corporation (NYSE: APC) 100% Interest 43.3% Limited Partner Interest Public Unitholders Western Gas Holdings, LLC 54.7% Limited 2% General Partner Partner Interest Interest…
  4. Wells Fargo Securities Energy Symposium – Western Gas Partners Lp – slide 4
    WES History 8/2010 3/2011 100 MM Accordion 133 MM Equity Issuance 250 MM Term Loan 800 MM Revolver 12/2009 5/2010 11/2010 5/2011 9/2011 10/2009 123 MM 99 MM 247 MM 500 MM 203 MM 5/2008 350 MM Equity Equity Equity Sr Notes…
  5. Wells Fargo Securities Energy Symposium – Western Gas Partners Lp – slide 5
    YTD Highlights Closed First Major Third Party Acquisition in February 302MM Platte Valley Acquisition from Encana Completed Fifth Acquisition From Anadarko in July 130MM Bison Acquisition Increased Quarterly Distribution to…
  6. Wells Fargo Securities Energy Symposium – Western Gas Partners Lp – slide 6
    The WES Asset Portfolio Current Assets / Investments 11 natural gas gathering systems 7 natural gas treating facilities 7 processing facilities 1 natural gas pipeline 1 NGL pipeline 1 crude oil pipeline 3Q11 Throughput…
  7. Wells Fargo Securities Energy Symposium – 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. Wells Fargo Securities Energy Symposium – Western Gas Partners Lp – slide 8
    Liquids-Rich Basins 3Q11 Gross Margin Dry Gas Basins Lower gross (Non-Demand Charge) margin assets; cash flow 21% protection High gross through rate margin assets; resets continued Liquids-Rich drilling as producers seek Basins to…
  9. Wells Fargo Securities Energy Symposium – 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. Wells Fargo Securities Energy Symposium – Western Gas Partners Lp – slide 10
    Chipeta/NGL Pipeline Uintah Basin (Greater Natural Buttes) Description and Overview 51% Ownership of Chipeta Processing, LLC 24% owned by APC, 25% owned by Ute Energy Chipeta Processing Plant 240 MMcf/d Refrigeration train 250…
  11. Wells Fargo Securities Energy Symposium – Western Gas Partners Lp – slide 11
    Granger Green River Basin (Moxa/Jonah/Pinedale) PINEDALE Description and Overview MOXA 815 mile gathering system ARCH WAMSUTTER Two cryogenic trains (200 MMcf/d capacity) Two refrigeration Trains (100 MMcf/d capacity) 9,500…
  12. Wells Fargo Securities Energy Symposium – Western Gas Partners Lp – slide 12
    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…
  13. Wells Fargo Securities Energy Symposium – Western Gas Partners Lp – slide 13
    WES Strategic Principles Minimize Maximize Liquidity Commodity Risk Maintain Capital Demonstrate Maturity Sponsor Support 14
  14. Wells Fargo Securities Energy Symposium – Western Gas Partners Lp – slide 14
    Significant Liquidity Reported EBITDA / Debt / EBITDA 1 Interest Expense 4.0x 12.0x 3.5x 10.0x Average: 9.29x 3.0x 8.0x 2.5x Average 2.46x 2.0x 6.0x 1.5x 4.0x 1.0x 2.0x 0.5x 0.0x 0.0x 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10…
  15. Wells Fargo Securities Energy Symposium – 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 9/30/2011 97% Fee-Based and Fixed-Price 3%…
  16. Wells Fargo Securities Energy Symposium – Western Gas Partners Lp – slide 16
    Accretive Dropdowns 8.1X 8.2X 7/2009 8/2010 107 MM 498 MM 5/2008 Chipeta Wattenberg IPO Drop Drop 2008 2009 2010 2011 12/2008 1/2010 7/2011 210 MM 254 MM 130 MM PRB Drop Granger Bison Drop Drop 7.9X 7.2X 8.8X Sponsor…
  17. Wells Fargo Securities Energy Symposium – Western Gas Partners Lp – slide 17
    Strong Financial Results Coverage Ratio Reported EBITDA 2.00x 70.0 1.80x 60.0 1.60x 1.40x 50.0 1.20x Millions 40.0 1.00x 30.0 0.80x 0.60x 20.0 0.40x 10.0 0.20x 0.0 0.00x 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10…
  18. Wells Fargo Securities Energy Symposium – Western Gas Partners Lp – slide 18
    Growth Strategy 1 More Dropdowns Midstream Asset Overview* Anadarko Western Gas Gathering systems 18 11 Processing & treating facilities 9 14 Interstate gas pipelines -- 1 NGL/Crude oil pipelines 2 2 Miles of pipeline 5,900 8,800…
  19. Wells Fargo Securities Energy Symposium – Western Gas Partners Lp – slide 19
    Most Recent Dropdown - Bison Assets Newly-Built Assets Three amine treating units Three compressor units Five generators Transaction Highlights 130MM purchase price Immediately accretive APC took 81% of consideration in units…
  20. Wells Fargo Securities Energy Symposium – Western Gas Partners Lp – slide 20
    Growth Strategy 2 Strategic Expansions Chipeta Train III Underwritten by Anadarko volume commitment Base Case IRR of 18-25% Platte Valley Assets Expanded capacity from 84 to 100 MMcf/d Completed in June 2011 Potential System…
  21. Wells Fargo Securities Energy Symposium – Western Gas Partners Lp – slide 21
    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…
  22. Wells Fargo Securities Energy Symposium – Western Gas Partners Lp – slide 22
    2011 Outlook ( in millions) Full-Year 2011 Adjusted EBITDA 250 255 Total Capex 97 112 Maint. Capex as % of Adj. EBITDA 8 - 11% 23
  23. Wells Fargo Securities Energy Symposium – Western Gas Partners Lp – slide 23
    www.westerngas.com
  24. Wells Fargo Securities Energy Symposium – Western Gas Partners Lp – slide 24
    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 2Q11 3Q11 Net income 17,396 20,113 16,958 18,124 17,048 19,278 22,914…
  25. Wells Fargo Securities Energy Symposium – Western Gas Partners Lp – slide 25
    Non-GAAP DCF Reconciliation (in thousands) Reconciliation of Net Income to Distributable Cash Flow (1) 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 Net income 17,396 20,113 16,958 18,124 17,048 19,278 22,914 23,411…

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