2012 Welcome John Arensdorf Introductions Rose Robeson CEO Perspective Tom OConnor Gathering & Processing Wouter van Kempen Marketing & Logistics Bill Waldheim DCP Midstream Partners Mark Borer Break Financial Outlook Sean…
Tom OConnor Chairman & Chief Executive Officer DCP Midstream, LLC Chairman of the Board DCP Midstream Partners, LP
2012 35B 30B Enterprise Value 1.5B Enterprise Value 50% 2011 EBITDA 50% 25% LP Interest 1% GP Interest Public Unitholders 74% Common LP Interest 3.5B Enterprise Value Enterprise value based on available market data;…
2012 1. Industry fundamentals remain attractive Permian Eagle Ford DJ Granite Wash, Miss. Lime Woodford Cana 2. Leveraging our expanding G&P The most attractive basins footprint and extending down the value chain through NGL…
2012 Tom OConnor Chairman and Chief Executive Officer DCP Midstream, LLC Wouter van Kempen Chairman of the Board Mark Borer DCP Midstream Partners, LP President and Chief Operating Officer Chief Executive Officer DCP…
2012 Industry fundamentals 5B of cash Solid earnings support growing distributions performance infrastructure needs (since 2007) Strategically located and regionally diversified G&P DPM total assets centered in liquids…
2012 has an 1 NGL producer, 17% of U.S. NGL production industry leading footprint in the Top gatherer and processor liquids rich gathering and Super systems in key basins processing regions coupled with Complementary NGL pipelines…
2012 Expand the DCP footprint through disciplined capital deployment complemented with safe, efficient and reliable operations uilding additional uilding NGL infrastructure processing capacity to extend the value chain and in…
2012 GP 2-4% price- valuation neutral earnings to owners growth and cash distributions GP & LP distribution Co-investment LP distribution growth 6 10% 13
2012 62 plants, 10+ additional plant potential Sand Hills, Southern Hills, Front Range, Texas Express 14
Expanding Our Footprint Wouter van Kempen President and Chief Operating Officer DCP Midstream, LLC
2012 6.3 TBtu/d Plant 10 LaSalle processing Lucerne 2 volume 400 MBPD Mewbourn NGL production 62 plants Wattenberg 63,000 miles of National Helium pipeline Front Range Super systems in * high growth areas Texas Express *…
2012 70% of volume coming from liquids rich drilling (3+ GPM) Top 10 customers make up 30% of margin G&P super system capability in all major basins 9,500 commercial contracts 45% of contract volumes are fee-based 45%…
2012 Rig Count and Gas Volume Jan 2007 to May 2012 MMcf/d Rig Count G&P NGL Logistics 70,000 US Lower 48 1,300 55,000 500 Drilling based on crude and NGL economics 260 3,100 Continued transition from dry gas to liquids rich…
2012 ) ) 11 15 NEWOpportunities MEXICO 850 - 1,000 + MM Or R a Expand and improve our system 17 plant, 1.3 Bcf/d super system with 18,000 miles of pipe 150+ MMcf/d of new capacity since Jan. 2011 through plant…
2012 11 15 ) ) Opportunities 500-750 MM Expand Eagle Ford super system 350 miles of gathering system to tie production to five-plant super system Equivalent of 900,000 acres supporting Mont Belvieu long-term agreements…
2012 WY NE 11 15 Opportunities CO ) ) 850 - 1,000 + MM Region capacity expect to more than double to 1 Bcf/d with 90+ MBPD of NGL production Mewbourn complete in 2011, expanded to 160 MMcf/d LaSalle to add 160…
2012 11 15 Opportunities 750 - 1,000 MM ) ) * * * 13 plant, 2.0 Bcf/d, 29,000 mile super system * Gathering expansions into Granite Wash and Mississippi Lime Upgrade existing assets: 600 MMcf/d National…
2012 Major Projects Area New/Additional Timing Cap. (MMcf/d) Mewbourn DJ +160 Expansion Roberts Ranch Permian +35 Expansion In-Service Linam Ranch Permian +50 Expansion Energy Pecos Diamond Permian +40 Restart Transfer…
2012 27
Bill Waldheim President DCP Midstream Partners, LP
2012 Vertically integrates the DCP Wellhead to market solution enterprise Leverage DCPs G&P into Market access extending the value chain Improving reliability downstream DCP enterprise becomes a full service provider both for…
2012 Ethane and Propane are the Propane and Heaviers are predominate products from a 85% of NGL economic value volume perspective Ethane (C2) Propane (C3) Butanes & Heaviers (C4+) Barrel by Volume Barrel by Value…
2012 2011/2012 warm winter created an Propane dehydrogenation facilities raise inventory surplus demand by 150+ MBPD 2012 summer inventory build less than Export capability increases from projected 150MBPD to 300-350 MBPD…
2012 Extraordinary 2012 turnaround season Incremental expansions continue Unscheduled shutdowns and through 2014 maintenance Disadvantaged ethane located in regions Inventories exceed five year averages with high transport costs to…
2012 ) 0.30 0.20 Capacity constraints and price displacement create opportunity 0.10 Midcon production has 0.00 restricted access to Mont 0.10 Belvieu markets Jan 00 Sep 12 ) Direct access to premium priced markets 0.50…
2012 Capacity Supply NGL Pipeline Market (MBPD) Source Niobrara /Codell Niobrara/Codell Wattenberg 22 DJ Basin Conway Black Lake 40 N. Louisiana Gulf Coast Seabreeze/ 52 South Texas Gulf Coast Conway Wilbreeze Mississippi…
2012 2B - 3B CapEx 2011-2015 Niobrara/Codell Plant 10 Significant LaSalle NGL super system to premium priced Lucerne 2 fee-based Mewbourn growth markets opportunity Provide wellhead to market solution: National Helium Conway…
2012 Niobrara/Codell Plant 10 LaSalle Provides critical capacity and NGL Lucerne 2 Mewbourn transportation service from Eagle Ford and Permian to Gulf Coast Wattenberg Conway Capitalizes on increased Eagle Ford National Helium…
2012 Niobrara/Codell Plant 10 LaSalle Connects Midcon producers to Mont Lucerne 2 Mewbourn Belvieu market Wattenberg Allows DCP to transport owned and National Helium Conway controlled production and optimize production value…
2012 Niobrara/Codell Plant 10 LaSalle Connects Rockies producers to Mont Lucerne 2 Mewbourn Belvieu market Capitalize on DJ Basin growth Wattenberg Conway Long-term fee-based income National Helium Mississippi Lime 435…
2012 Niobrara/Codell Plant 10 LaSalle Lucerne 2 Mewbourn Conway National Helium Mississippi Lime Granite Wash * Woodford Cana * Wolfberry Midway r Rawhide aw Avalon / Bone Springs Mont Belvieu Eagle…
Transformational Era Mark Borer Chief Executive Officer DCP Midstream Partners, LP
2012 Use of DPM expands balance sheets and accelerates investment Continued cash distributions to Phillips 66 and Spectra Energy Earnings growth at DCP DPM DCP Debt Midstream and DPM Midstream Debt More visible valuation…
2012 DCP Midstream sells all DPM directly invests capital DPM provides the capital to or a portion of an asset in MLP friendly assets build all or part of a for cash raised by DPM in that are part of larger proposed processing plant…
2012 Cumulative Co-Investment Alternatives 990 million Dropdown / Redeployment Organic Build Direct Investment / Acquisition 285 MB Fracs 240 200 Southeast (in MMs) Texas 150 165 East Southeast Texas 2012-2014: 3B Texas…
2012 Visible pipeline of growth opportunities supports 1,150+ outlook for future 150 1,000+ distribution growth 900 Third-party acquisition 63 Approved projects in footprint 150 1,000 distribution growth target…
2012 Potential 3.5B - 4.5B 2-4% price- GP valuation neutral earnings to owners growth & cash distributions 200 120 GP & LP distribution Co-investment GP 53 80 LP 2011 2015 Illustrative case: Distributions to DCP…
2012 Solid capital structure and Effective Interest Rate 3.7% investment grade credit ratings Credit Facility Leverage Ratio (max 5.0x/5.5x) 3.4x Public Term Debt % of Total Debt 63% Unutilized Revolver Capacity 649MM Substantial…
2012 Through co-investment, DPM provides funding option for DCP enterprise growth 47 47
2012 Sean OBrien Chief Financial Officer DCP Midstream, LLC
2012 BBB / Baa2 / BBB 1.5B 2011 EBITDA BBB+ / Baa2 / BBB BBB / Baa1 BBB- / Baa3 / BBB- 35B Enterprise 30B Enterprise Value 3.5B Enterprise Value Value Industry Strong cash Solid growth leading distributions to…
2012 Strong Balance Sheet Growth Opportunities Attractive Returns Maintain investment grade Support unprecedented Deliver solid earnings and ratings driven by strong period of organic growth cash flow growth to owners liquidity and…
2012 Strong Financial EBIT ROCE Debt/EBITDA Ratio Metrics 34% Average 3.3x 3.2x 27% 20% 2.5x Strong returns and 2.4x 19% liquidity coupled with a 17% 1.6x 1.6x 11% history of solid cash distributions to owners 2007 2008…
2012 North Leveraging Our G&P Strength Extending Midcon the NGL Enhancing Value Chain Marketing competitive & position due to Pipelines Logistics Permian accelerating liquids growth Potential South Fractionation Growing all…
2012 Incremental year 1 cash flows of 550MM+ Roberts Mewbourn & Eagle LaSalle & Rawhide National Helium Ranch Plants Plants Expansion 2012 2013 2014 4B+ Linam Ranch Eagle Ford Granite Wash Sand Hills & Texas Front Keathley…
2012 3.2x 3.3x Key Sensitive to Commodity Amount of change Net Income 2.5x In MMs 2.4x NGLs 0.01/ gal change +/- 13 1.6x 1.6x Natural Gas 0.10/ MMBtu change +/- 6 Crude Oil 1.00/ bbl change +/- 5 2007 2008 2009 2010 2011…
2012 DCP Midstream Co-investment Owner with DPM Support 5B - 7B in new projects Liquidity/Capital Internal Cash Markets Generation 1B in opportunities 240 since 2010 200 500MM, 10 year 350MM, 10 year 165 4.75% Notes…
2012 Strong Investment Grade Balance Sheet 5B-7B of Growth Opportunities Funded by Co-Investment and Owner Support 2-4% Price-Neutral Net Income Growth per Year at Midstream; 6-10% Distribution Growth per Year at…
2012 Pat Reddy Greg Maxwell Chief Financial Officer Executive VP Finance, Spectra Energy Chief Financial Officer Phillips 66
2012 Common owner priorities & DCP is a good vehicle for partner alignment enabling further growth & valuation uplift for owners DCP is an integral part of Significant growth owners portfolios; Owners share strong opportunities…
Tom OConnor President & Chief Executive Officer DCP Midstream, LLC
2012 62 plants, 10+ additional plant potential Sand Hills, Southern Hills, Front Range, Texas Express 60
& 2012
2012 DCP Enterprise Consolidated Contract Portfolio Fee-Based Percentage of Proceeds (POP) Keepwhole (KW) Retain a percentage of both residue gas Pay producer in residue Fixed fee for gathering and Description processing and…
2012 Reconciliation of net income attributable to members' interests to EBITDA: 2011 ( in millions) Net income attributable to members' interests 863 Interest expense, net 213 Income tax expense 3 Depreciation and amortization…
2012
2012 Tom OConnor is chairman of the board and chief executive officer of DCP Midstream. Additionally, he is chairman of the board of DCP Midstream Partners. Toms career spans more than two decades in the energy industry. Before…
2012 Wouter van Kempen is president and chief operating officer of DCP Midstream, leading the gathering and processing business unit and the marketing and logistics business unit, which includes NGL and gas marketing, and NGL, gas,…
2012 Sean OBrien is senior vice president and chief financial officer of DCP Midstream. He is responsible for corporate finance, treasury, risk management, accounting, tax, internal audit, and financial planning and analysis…
2012 Chris Lewis is group vice president and chief corporate officer for DCP Midstream. He is responsible for engineering, human resources, public affairs, facilities management and real estate, supply chain management and…
2012 Brent Backes is group vice president, general counsel and corporate secretary for DCP Midstream. His responsibilities include executive management of legal, regulatory, government affairs, insurance, right-of-way, environmental,…
2012 Mark Borer is the chief executive officer of DCP Midstream Partners in Denver, Co. Mark has spent more than 28 years in the energy industry. His experience spans the areas of natural gas supply, gas storage, gathering and…
2012 Bill Waldheim is the president of DCP Midstream Partners in Denver, CO. Prior to joining DCP Midstream Partners, Bill was the president of the natural gas liquids, gas, and crude oil logistics business unit for DCP Midstream,…
2012 Rose Robeson is Senior Vice President and Chief Financial Officer of DCP Midstream Partners. Rose is responsible for managing finance, investor relations, accounting, and tax for DCP Midstream Partners. Rose has nearly 30 years…
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