Midcoast Energy Partners, L.P. Investment Community Presentation May 2015
Vision and Strategy VISION Be recognized as a leading natural gas and NGL midstream infrastructure developer, operator and service provider in North America SCALE SCOPE STRATEGY Provide best in class gathering, processing and…
Strong Sponsors and Management Leveraging Enbridge Inc. & Enbridge Energy Partners, L.P. ENB: North American leader in energy delivery Enbridge Inc. (ENB) A-/Baa1 45 billion equity market capitalization Enbridge Energy Partners,…
Strategically Positioned Asset Base Midcoast Business Segments Key Assets Gathering, Processing & Transportation: Natural Gas Deliveries 2.2 bcf/d strong asset foundation 90% EBITDA Gathering and Transportation Pipelines 11,100 miles…
Strategic Entry into Eaglebine Play Secured transactions establish strategic East Texas System foothold in the liquids-rich Eaglebine Midcoast to construct the Ghost Chili lateral Midcoast acquiring NGRs midstream assets 160 million…
Long-Term Transformation of Risk Profile Risk profile transforms as base business grows and new business is captured Demand volumes and revenue progressively ramping on Texas Express Re-contract and capture new business that enhances…
Executing on Strategic Priorities Strengthen underlying business Recontracted and captured new business that enhances cash flow certainty Executed plan to reduce operating & administrative costs by over 50 million proceeding ahead of…
Actions Underway to Navigate Current Market Conditions Average 2015 Forward Prices Challenging Market Conditions WTI Composite NGL BBL Composite NGL Barrel Price (/gal) WTI Average Forward Price (/Bbl) 100.00 0.95 0.87/gal…
Strong Sponsor Support EEP incentivized to invest alongside MEP Jointly fund on and off footprint growth Commitment to long-term drop-down strategy to enhance accretion at MEP Enhance MEP Cost of Equity Natural Gas Midstream -…
Capital Expenditures Forecast & Available Liquidity Midcoast Operating, L.P. 2015e ( millions) Prudently managing capital expenditures: Beckville Gas Processing Plant 60 Sufficient liquidity to fund balance of year Eaglebine…
Key Takeaways Maintain positive momentum and focus on execution Solid 1Q performance and healthy coverage of 1.16x Fourth consecutive quarterly distribution increase (+11.2% vs 1Q14) Actions underway to strengthen underlying…
Appendix
MEP Organizational Structure Enbridge Inc. owns Enbridge Inc. 42% of EEP (NYSE: ENB) (Baa1 / A-) 2% GP interest 38.8% LP interest (indirect) Enbridge Energy Partners, L.P. (NYSE: EEP) (Baa2 / BBB+) 2% GP interest…
Updated 2015 Financial Outlook 2015 Outlook Midcoast Operating, L.P. ( millions) 2015e Strong 1Q financial results Adjusted EBITDA, inclusive of other 195 - 220 More clarity on producer drilling plans cash items(1) Midcoast Energy…
Accelerating Scope & Pace of Change Bottom-line enhancement initiatives 2014 O&A Costs (1) 400 MM 50 million of annual cost reductions at New Assets In Service +12 Midcoast Operating Insurance & Taxes +6 Cost structure to be…
Securing Cash Flow Certainty Risk Profile Shifting: Contract Mix (1) Demand and fee-based margin positioned to Keepwhole Demand- Based 8% increase in 2015 11% POP Strengthening cash flow certainty 21% Fee-Based Disciplined…
Financial Support from Sponsors Financial Support Agreement Receivables Sales Agreement Purpose Derivative contracts, natural gas purchasing Enhance available liquidity agreement and NGL purchase agreement support Borrower Midcoast…
Texas Express NGL System Description of Assets Texas Express Footprint NGL Mainline System JV with Enterprise Products Partners (35%, operator), Midcoast Operating (35%), New NGL Skellytown Anadarko Petroleum Corporation (20%) and…
Texas Express A Growing Base of Secure Cash Flow Texas Express NGL System Shipper committed volumes ramping up; step-up to 147,000 Bpd in July 2015 Underpinned by fee-based demand revenue System is expandable to 400,000 Bpd Expected…
Regional Outlook Overview Continue to monitor developments and work closely with producers as conditions evolve Producer capex and drilling reductions are expected Gathering, Processing & Transportation Highlights East Texas…
Anadarko System Strategically Located in Texas Panhandle and Western Oklahoma Processing Plant Highlights Treater Plant Gas Pipeline Miles of natural Liquids Pipeline Texas Express gas gathering and 3,100 miles transporting…
East Texas System Extensive Footprint in East Texas: Haynesville & Cotton Valley Processing Plant Highlights Treater Plant Miles of natural gas Gas Pipeline gathering and transporting 4,100 miles Liquids Pipeline pipelines…
North Texas System Extensive Asset Footprint Processing Plant Highlights Gas Pipeline Liquids Pipeline Texas Express Miles of natural gas gathering and 3,900 miles transporting pipelines Processing plants 7 plants(1)…
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