Barclays Capital Investment Grade Energy & Pipeline Conference March 2012
The WES Asset Portfolio MIGC Bison Hilight Complex Wind River Newcastle Current Assets / Investments Fort Union 15 natural gas gathering systems Rendezvous Red Desert 8 natural gas treating facilities Granger Complex 9 processing…
APC WES Relationship 44% LP Unit Ownership 100% GP Ownership Accretive Acquisitions Fixed-Price Commodity Swap Agreements 4
Liquids Rich vs. Dry Gas Basins Powder River Greater Green River Basin Niobrara Uinta 2012E Gross Margin DJ Basin Liquids-Rich Basins Hugoton 77% Delaware Bossier Basin Dry Gas Basins Dry Gas Basins (Demand Charge)…
Wattenberg/Platte Valley/White Cliffs DJ Basin Western Gas Partners, LP Description and Overview Processing Facilities Gathering Lines 2,880 mile gathering systems 3rd Party Infrastructure 205 MMcf/d processing capacity Major…
Chipeta/NGL Pipeline Uintah Basin Description and Overview Western Gas Partners, LP 51% Ownership of Chipeta Processing, LLC Gathering Lines 24% owned by APC, 25% owned by Ute Energy Processing Facilities 240 MMcf/d Refrigeration train…
Granger/Mountain Gas Resources Greater Green River Basin Description and Overview 2,528 mile gathering systems Rendezvous Does not include 22% interest in Rendezvous gas services, LLC Three cryogenic plants (373 MMcf/d capacity)…
Hilight and Newcastle Powder River Basin (East) Western Gas Partners, LP MIGC Processing Facilities Description and Overview Gathering Lines MIGC 1,235 mile gathering system 3rd Party Infrastructure Two refrigeration processing…
Stability Minimal Commodity Exposure Long-term fee-based contracts and fixed-price agreements Sponsor has retained commodity price risk related to dropdown assets Gross Margin Last Twelve Months ending 12/31/2011 95% Fee-Based…
Consistency Track Record of Accretive Acquisitions 8.1X 8.2X 7.0X 7/2009 8/2010 1/2012 107 MM 498 MM 483 MM 5/2008 Chipeta Wattenberg Red Desert IPO Drop Drop Drop 2008 2009 2010 2011 2012 12/2008 1/2010 7/2011 210 MM 254 MM…
Conservatism Commitment to Investment Grade Metrics Committed credit facility of 800MM through March 2016 Expandable to 1.0 Billion Debt / EBITDA1 Coverage Ratio 4.0x 2.00x 3.5x 1.80x 1.60x 3.0x 1.40x 2.5x 1.20x 2.0x…
Growth Strategy 1 Continued Dropdowns MIGC Powder River Bison Hilight Complex Current Midstream Asset Overview Wind River Newcastle Marcellus Anadarko Western Gas Rendezvous Fort Union Granger Complex Red Desert Gathering systems…
Growth Strategy 2 Strategic Expansions Chipeta Train III Underwritten by Anadarko volume commitment Base Case IRR of 18-25% Lancaster Plant (1Q2014 expected start-up) 10-year, 100% fixed-fee agreement Throughput commitment from…
Growth Strategy 3 Equity Options APC negotiates equity interest options in projects in exchange for their long-term volume commitments APC Negotiated Equity Interest Project APC Interest Date Acquired Satanta Plant 49% January…
2012 Outlook Full-Year ( in millions) 2012 Adjusted EBITDA 335 - 365 Total Capex 410 - 460 Maint. Capex as % of Adj. EBITDA 8 - 11% Distribution Growth 16 - 20% 18
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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 4Q11 Net income 17,396 20,113 16,958 18,124 17,048 19,278…
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 4Q11 Net income 17,396 20,113 16,958 18,124 17,048 19,278 22,914…
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