Creating A Premier Pipeline, Midstream and Storage Company Bob Skaggs CEO Glen Kettering President Steve Smith CFO Pre-Separation Update May 14, 2015
Agenda Columbia Pipeline Group 1. Separation Update Bob Skaggs, CEO 2. Business Overview and Growth Strategy Glen Kettering, President 3. Financial Overview Steve Smith, CFO 4. Summary Bob Skaggs, CEO 5. Question and…
Creating Two Independent, Premier Energy Companies Expected to Unlock Pathway to Successful, Full Potential for Long-Term Growth Strategies Both Companies Focused on Distinct Pure-Play Growth Opportunities, Businesses Assets…
Separation Timeline On Track for Separation MLP IPO Complete Credit Agency Review Complete Recapitalization Underway SEC Form 10 is In Process Separation on Track for July 1, 2015 Expected Record Date for Separation Dividend…
Creating Two Independent, Premier Energy Companies Combined Dividends Reflect 8% Increase Current Annual Dividend - 1.04 (NYSE: NI) Expected Initial (NYSE: CPGX) Expected Initial Annual Dividend 0.62 Annual Dividend -…
Columbia Pipeline Group CPGs Strategic Approach Deliver Safe, Reliable Service Every Day Grow the Business Organically Through Accretive Infrastructure Investments System Modernization Regulated Investments Midstream…
Experienced and Proven Leadership Team CPG Senior Management Bob Skaggs Chief Executive Officer Steve Smith Glen Kettering Bob Smith Chief Financial Officer President SVP, General Counsel Stan Chapman Shawn Patterson…
Columbia Pipeline Group A Premier Pipeline, Midstream & Storage Company Stable, Predictable Cash Flows 95% Fee-Based Revenues Poised for Transformational Growth Net Investment Expected to Triple by 2020 Best-in-Class Equity…
Business Overview and Growth Strategy Glen Kettering President
Columbia Pipeline Group Serving Attractive Northeast, Midwest, Mid- Atlantic and Gulf Coast Markets Strategically Positioned; Overlaying Prolific Marcellus and Utica Shale Significant Scale, Unparalleled Regions Strategic…
Columbia Midstream Services Growing Our Midstream Franchises PA Leveraging Strategic Location and Pennant Midstream Big Pine Assets Hickory Bend Developing Franchises in Marcellus and Emerging Utica Shale Areas East…
CPG Contract and Customer Profile Stable, Predictable & Growing Cash Flows Virtually All Transportation and Storage Revenues From Firm Contracts* Selected Customers Distribution Columbia Gas 99% Transmision Columbia Gulf…
Changing Market Dynamics Strategically Positioned to Capture Marcellus and Utica Growth Bcf/d 30 Appalachia Shale Production 25 20 15 10 5 0 Jan-09 Jan-12 Jan-15 Jan-18 Utica (OH, PA & WV) Marcellus Dry Marcellus…
CPG Project Inventory 10B+ in Modernization and Growth Opportunities Expected Expected Project CapEx In Execution ( in millions) In-Service In Development 1 Chesapeake LNG 35 Q2 2015 2 2 East Side Expansion 275 Q4 2015 AEP Big…
East Side Expansion Linking New Supplies to Growing Markets Expands Facilities to Transport Marcellus Production to Mid-Atlantic Markets 300 MDth/d of Additional Capacity Pipeline Looping; Compressor Station Upgrades and…
Cameron Access Project Linking Shale Supplies to LNG Export Market Transports Shale Supplies to Cameron LNG Facility 800 MDth/d of Capacity from Rayne, Louisiana Compressor Station Leach, KY (TCO) 28-mile Pipeline Extension;…
Leach and Rayne XPress Projects Providing Outlets and Additional Liquidity Transports Marcellus and Utica Supplies to Liquid Locations/Markets 1.5 MMth/d of Additional Capacity 160 Miles of New Pipeline (including 30 Miles of…
WB XPress Project Linking Marcellus Supplies to Attractive Markets Providing Additional Market Access for Marcellus Supplies Additional 1.3 MMDth/d of Capacity: 500 MDth/d East Toward Loudoun 800 MDth/d West Toward Broad Run…
Mountaineer XPress and Gulf XPress Projects Transformational Growth Opportunity Transports Marcellus and Utica Shale Supplies to Liquid Markets Additional 2.7 MMDth/d of Capacity on Columbia Transmission System…
Execution Excellence Well Positioned to Execute on Our Growth Strategy Solid, Execution-Focused Project Delivery Team in Place Proven Track Record of Delivering Projects On- Time, On-Budget Strategic Alliances with Contractors…
Columbia Pipeline Group Financial Objectives Prudent Invest in Projects that Earn Appropriate Risk-Adjusted Returns Investment Targeting 5-7x EBITDA for Organic Pipeline and Midstream Investments Maintain Strong Credit…
Columbia Pipeline Group Expected Growth Investment Program* ( in Billions) 3.00 2.8B 2.6B 2.50 Headroom for 2.00 Additional Growth Investment 1.50 1.2B 0.9B 0.9B 1.00 0.50 0.00 2016 2017 2018 2019 2020…
Columbia Pipeline Group Expected CPG Cumulative Investment Growth* ( in Billions) 14 12 10 Cameron Access WB XPress 8 Mountaineer XPress/Gulf XPress Rayne XPress/Leach XPress 6 East Side Expansion Modernization 4…
Columbia Pipeline Group Expected EBITDA* Growth Profile 680M** 2015 2020 Expected EBITDA CAGR = 20% 2015-2020 * For a reconciliation to GAAP see accompanying appendix 27 ** Does not include separation costs
Columbia Pipeline Group Conservative Recapitalization and Strong Liquidity Profile Recapitalization Summary Planned Liquidity & 2016 Financing Issuing 2.75 Billion CPG Long-Term 2.0 Billion of Revolving Credit Notes Facilities…
Columbia Pipeline Group Expansion Financing Plan CPPL to Provide Equity Funding Additional 4.0B Planned Issuances 2016-2018 Long-Term Debt Financing in Place by End of May Revolver Expected to be Primary Source of Short-Term…
Columbia Pipeline Group Expected Sources and Uses ( in Millions) 12,000 10,000 Maintenance CapEx Incremental Debt 1.7B 8,000 MLP Equity 4.0B 6,000 Expansion CapEx Growth Capex 4,000 Cash from 4.7B 2,000…
Columbia Pipeline Group Summary Transformational Growth Strong Financial Plan Ample Liquidity and Investment Grade Credit Ratings Best-in-Class Equity Vehicle: CPPL 20% Average Annual Distribution Growth Through 2020…
Closing Closing Remarks Remarks Bob Skaggs Chief Executive Officer Bob Skaggs President & CEO September 29, 2014 32
Columbia Pipeline Group A Premier Pipeline, Midstream & Storage Company Stable, Predictable and Growing Cash Flows Transformational Growth Unparalleled Strategic Footprint in Marcellus and Utica Shale Regions Experienced…
Appendix 34
Columbia Pipeline Group Organizational Structure Owns 84.3% of Columbia OpCo, 46.5% of CPPL Plus 100% of GP Interest NYSE: CPGX CPG OpCo LP (Columbia OpCo) Owns All Material Assets Public 53.5% Unitholders Owns…
Columbia Pipeline Group Taxation of CPG Income/Cash Flows Bonus Depreciation Extended for 2014; Assume No Additional Extensions Taxes on MLP Drop Downs Deferred Due to OpCo Structure Cash Taxes Include: Tax on IDRs at Full…
Columbia Pipeline Group GAAP Reconciliation* ( in Millions) Operating revenues 1,423 Operating expenses Operation and maintenance 836 Depreciation and amortization 140 Gain on sale of assets (55) Property and other taxes 77…
Columbia Pipeline Group Leadership Team Name & Position Background Named Chief Executive Officer of CPG in December 2014 Robert C. Skaggs Jr. Chief Executive Officer Named President of NiSource in 2004 and added the CEO…
Columbia Pipeline Group Leadership Team Name & Position Background Stan Chapman III Named Executive Vice President and Chief Commercial Officer of CPG in December 2014; Executive VP & Chief originally joined NiSource in December…
CPG Interstate Pipeline and Storage Assets Strategically located network of FERC-regulated interstate pipelines and natural gas storage systems 11,395 mile interstate pipeline Columbia Gas Transmission Operations are located in…
CPG Gathering, Processing and Other Assets Majorsville Gathering Northern West Virginia and Southwestern Pennsylvania Gathering & Processing System 350 MMcf/d wet gas gathering pipeline system Big Pine Gathering Western…
Columbia Pipeline Group Asset Overview* % of Transportation Average Remaining Miles of Annual Asset Revenue Contract Life Interstate Pipeline Pipeline Throughput (MMDth) from Firm Contracts** (years) ** Columbia Gas…
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