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Investor and Analyst Day 2014 – Access Midstream Partners, L.P.

Access Midstream Partners, L.P. · May 13, 2014 · 56 slides

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Slides

  1. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 1
    INVESTOR AND ANALYST DAY 2014 MAY 13, 2014
  2. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 2
    STRATEGIC OVERVIEW MIKE STICE CEO
  3. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 3
    ACCESS MANAGEMENT CEO since September 2009 Appointed Senior Vice President Natural Gas Projects of Chesapeake Energy and COO of Chesapeake Mike Stice Midstream Development, LP in 2008 Chief Executive Officer Previously spent 27 years…
  4. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 4
    PARTNERSHIP OVERVIEW Gathering and processing master limited partnership formed in 2010 Leadership position in 9 unconventional basins in U.S. 12 billion market capitalization with 49% public float Global Infrastructure Partners…
  5. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 5
    EXPANDING ASSET BASE HIGH QUALITY, SCALABLE ASSET BASE IN HIGH GROWTH UNCONVENTIONAL PLAYS Key Operating Data(1) Total Assets: 8.3 billion Dedicated Areas: 8.3 million acres Miles of Pipe: 6,414 Volume: 3,828 mmcf/d…
  6. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 6
    UNIT PRICE AND TOTAL RETURN UNIT PERFORMANCE TOTAL ANNUAL RETURN (July 10 IPO through 5/1/14) ACMP AMZ S&P 500 38% 200% 150% 100% 50% 11% 0% -50% -100% Alerian ACMP IPO July 10 5/1/14 Since IPO, ACMP is up +180%…
  7. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 7
    WHERE WEVE BEEN 2014 The Year of 2013 the Customer The Year of 2012 Execution 2011 The Year of Transition 15.5 (1) The Year of 14.9 2010 Dropdowns The Year of IPO 9.0 5.0 4.3 Enterprise Value ( billions) 1) Data…
  8. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 8
    ACMP INVESTMENT HIGHLIGHTS Low Risk Business Model Fixed fee revenue model with no direct commodity price exposure Contractual structure creates cash flow stability and visibility Industry Leading Growth 4.3B of CAPEX in 2013 -…
  9. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 9
    OUR GROWTH FOCUS Organic growth Growth CAPEX in millions 4.3 billion in 2013-2016 1,468 Substantial processing 1,100-1,200 investment 900-1,000 600-800 Business development growth 660 345 New producer opportunities 2011A…
  10. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 10
    EXPANDING CUSTOMER BASE ACMP Volume Mix Customer Highlights Strong leading customer CHK % 81% 71% 55-60% 50% Leading unconventional producer Expansive position in leading basins Strong operating and financial performance NE…
  11. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 11
    ORGANIZATIONAL REALIGNMENT Focused Accountability Business Development reports to Chief Operating Officer VP Business Development & Commercial position created Expanded Organization Increasing the number of Commercial…
  12. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 12
    FINANCIAL OVERVIEW DAVE SHIELS CFO
  13. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 13
    FINANCIAL STRATEGY CONSERVATIVE FINANCIAL STRATEGY CONSISTENT WITH LOW RISK BUSINESS MODEL Maintain stable cash flows with a low risk, fee-based business model Deliver top-quartile performance for long-term distribution growth and…
  14. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 14
    FINANCIAL PERFORMANCE FINANCIAL PERFORMANCE HIGHLIGHTS STRENGTH OF ACMP MODEL Adjusted EBITDA(1) Enterprise Value in millions in billions 14.9 15.5 241 250 227 207 184 9.0 118 121 120 119 97 5.0 84 92 4.3 73 76 2.6 IPO…
  15. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 15
    1Q 2014 EARNINGS Financial Results Financial Results Operating Metrics Operating Metrics ( millions) 1Q 2014 YoY Var % 1Q 2014 YoY Var Revenues(1) 277.1 16.9% Barnett Shale Operating Expenses 92.9 12.3% Capital expenditures 6.0 -15.0…
  16. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 16
    HIGHLY VISIBLE GROWTH ACMP FINANCIAL OUTLOOK UPDATED WITH 2016 ( million) 2014 2015 2016 EBITDA 1,025 1,125 1,250 1,350 1,400 1,600 Growth Capital 1,100 1,200 900 1,000 600 800 Maintenance 130 130 130 Capital Capable of…
  17. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 17
    2014 CAPEX BY REGION 1Q REGION DETAIL(1) FULL YEAR LIQUIDS/DRY MIX(1) Marcellus South Mid-Continent Niobrara Eagle Ford 90% Liquids-Rich 85% Liquids-Rich Liquids- Rich Utica Barnett / Haynesville 15% Dry Marcellus…
  18. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 18
    2014 EBITDA BY REGION 1Q REGION DETAIL FULL YEAR LIQUIDS/DRY MIX Marcellus South Mid-Continent 45% Liquids-Rich Liquids- 50% Liquids-Rich Rich Eagle Ford Utica / Niobrara Haynesville Barnett 55% Dry 50% Dry Dry…
  19. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 19
    2014 GROWTH DRIVERS 2014 EBITDA EXPANSION KEY DRIVERS: Liquids-Rich 55% Growth Dry 11% Growth 1,075MM Liquids-Rich Utica Processing 859MM Utica liquids rich gathering Liquids- Rich Eagle Ford, Permian and Niobrara Liquids- growth…
  20. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 20
    2015 GROWTH DRIVERS 2015 EBITDA EXPANSION KEY DRIVERS: Liquids-Rich 16% Growth Dry 24% Growth 1,300MM Liquids rich 1,075MM Utica processing Liquids Utica liquids rich gathering Rich Permian and Niobrara growth Liquids Rich Dry…
  21. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 21
    COST OF SERVICE GROWTH 15 - 20 year fee calculated based on mid-teens return on invested capital Long term EBITDA growth part of contractual model Fee recalculated annually for actual experience and revised forecast Cost of Service…
  22. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 22
    CASH RETURN COMPARISON 2014 Cash ROIC (1) for Large Cap & G&P 13.8% 12.5% 12.2% 11.9% 11.8% 11.6% 11.6% 11.4% 10.6% 9.1% 9.0% 8.9% 8.8% 8.5% 8.2% Large Large Large G&P 1 ACMP Large G&P 2 G&P 3 Large Large Large G&P 4 G&P 5…
  23. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 23
    LIQUIDITY AND FINANCIAL FLEXIBILITY ACMP has strong liquidity to fund business needs and future growth Liquidity Over Time ACMP has maintained (millions) 400MM 750MM strong liquidity over time 1,800 Note Offering Note Offering…
  24. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 24
    MARCH NOTE OFFERING Term sheet Offering highlights Security The offering was 2.5x oversubscribed 4.875% Notes due 2024 with 136 total investors allocated notes Description: Amount: 750 million 31 of the 136 investors were investment…
  25. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 25
    STRONG CREDIT METRICS ACMP will maintain a conservative capital structure Committed to maintaining investment-grade metrics over time EBITDA growth will drive de-leveraging profile 1Q 2014 Debt / EBITDA(1) for G&P MLPs 5.5x 5.0x…
  26. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 26
    2014 - 2016 FUNDING FLEXIBILITY FUNDING STRATEGY FUNDING (FLEXIBILITY billions) 1.6 - 2.3 Maintain strong liquidity Opportunistic market timing 1.4 - 1.6 Prudent sizing De-leveraging profile Target long-term investment grade…
  27. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 27
    ACMP PATH TO INVESTMENT GRADE Investment Investment Indicative Ratings Grid ACMP Peer 3 Peer 4 Peer 5 Grade Peer 1 Grade Peer 2 Scale BBB BB A BBB BB BBB Business Risk BBB BB BB BB BB BB Interest Coverage BBB BBB BB BB BB BBB Leverage…
  28. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 28
    COMMERCIAL AND OPERATIONAL OVERVIEW BOB PURGASON - COO
  29. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 29
    OPERATIONS ORGANIZATION Chief Operating Officer VP BD & Sr. VP Sr. VP VP - Commercial Eastern Ops Western Ops Compression 30
  30. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 30
    INTRODUCING ACCESS MANAGEMENT Vice President Compression since January 2014 Manages the compression assets owned by Access and Scott Johnson the compression services division Vice President Most recently served as VP Operations at…
  31. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 31
    OPERATIONS ORGANIZATION Chief Operating Officer VP BD & Sr. VP Sr. VP VP - Commercial Eastern Ops Western Ops Compression Process Risk & Integrity Improvement & Quality 32
  32. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 32
    RISK MODEL PROBABILITY E D C B A C I 3 2 2 1 1 O N S II 4 3 2 2 1 E Q U III 4 4 3 3 2 E N C IV 4 4 4 4 3 E 33
  33. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 33
    ASSESSING THE RISK Risk Appetite Level 3 and 4 Risks Risks that may be managed within the workforce Risks within the organizations risk appetite Level 2 Risks Risk Capacity The maximum risk level that is acceptable without BOD…
  34. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 34
    PROCESS: MAX 1.0 Improve reliability through improved maintenance scheduling, execution and documentation Ensure ongoing compliance through real-time work order tracking Improve manpower efficiencies through use of mobile…
  35. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 35
    CAPITAL EFFICIENCY Project Management Access Capital Efficiency System (ACES) Single source of truth One project management platform Enforceable project controls leading to increased accountability around Capital performance…
  36. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 36
    METRICS WOPL Count 500 Strong execution 450 400 has reduced WOPL 350 count by 200 in last 300 250 12 months 200 150 Well connect 100 50 inventory still 250 0 Mar '12 June '12 Sep '12 Dec '12 Mar '13 June '13 Sep '13 Dec '13 Mar…
  37. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 37
    COMMERCIAL PRIORITIES MOVING FORWARD Organic focus Leverage existing footprint Leverage core competencies Leverage balance sheet Organizational capability In-house resources JV partners General Partners Track record Most well…
  38. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 38
    NEW CONTRACTED VOLUME 270000 New cumulative contracted volume 250000 230000 Mcf/d 210000 190000 170000 150000 Mar-14 May-14 Mar-12 Mar-13 May-12 Oct-12 May-13 Oct-13 Oct-13 Dec-11…
  39. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 39
    ACCESS COMPRESSION ACQUISITION SUMMARY ACMP acquired CHKs compression units servicing ACMPs gathering systems in the Marcellus and Utica regions for a purchase price of 160 million Asset portfolio fits ACMP business model 8x forward…
  40. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 40
    COMMERCIAL WINS UEO Expansion Fifteen year term with a fifteen year extension option held by the Upstream JV Increase area of dedication by 53% Volume cap increases from 600,000 Mcf/d to 1.0 Bcf/d UEO to extend High Pressure…
  41. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 41
    Q&A
  42. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 42
    REGIONAL BREAKOUT WALT BENNETT SR VP JOHN SELDENRUST SR VP SCOTT HALLAM - GM
  43. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 43
    REGIONAL PRESENTERS Sr. VP Western Operations since December 2013 Manages the Anadarko, Barnett, Eagle Ford, Walt Bennett Haynesville, Midcontinent, Niobrara and Permian operating areas Sr. Vice President Western Operations Joined…
  44. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 44
    WESTERN OPERATIONS WALT BENNETT SR VP WESTERN OPERATIONS
  45. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 45
    EAGLE FORD HIGHLIGHTS Volume Highlights mmcf/d Large gathering footprint with significant 295 258 271 267 capacity and flexibility 228 State of the art sour gas treating facilities High level of rig activity around assets 1Q 2013…
  46. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 46
    NIOBRARA HIGHLIGHTS Net Volume Highlights mmcf/d 27 Significant increase in gathering capacity 24 with new and efficient assets 16 Processing capacity of 120,000 Mcf/d 10 10 in-service in 4Q14 Opportunities to provide gathering…
  47. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 47
    PERMIAN HIGHLIGHTS Volume Highlights mmcf/d Long term dedication from QEP Significant increase in gathering capacity 95 89 81 79 Development of long term processing 78 solution for producers High level of rig activity around…
  48. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 48
    BARNETT HIGHLIGHTS Volume Summary Highlights mmcf/d Long-term acreage dedication with 1400 large inventory of remaining drilling 1200 locations on existing pads 1000 Potential upside from increased gas 800 demand, PetChem, LNG…
  49. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 49
    HAYNESVILLE HIGHLIGHTS Mansfield MVC Highlights mmcf/d Increased rig activity Potential upside from LNG exports 1200 Haynesville Contract Protections 1000 800 Mansfield 600 Growing MVC through 2017 400 Fee tier structure for…
  50. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 50
    EASTERN OPERATIONS JOHN SELDENRUST SR VP EASTERN OPERATIONS
  51. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 51
    MARCELLUS HIGHLIGHTS Net Volume Highlights mmcf/d 1,150 1,205 Leading gathering footprint 1,065 863 996 Leading gas gatherer by volume 2.7 Bcf current capacity (gross) with significant planned expansion opportunities Significant…
  52. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 52
    UTICA SCOTT HALLAM GENERAL MANAGER - UTICA
  53. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 53
    UTICA HIGHLIGHTS Net Gathering Volume Highlights mmcf/d Leading asset position in the basin providing 233 vertically integrated services including wellhead 158 gathering, liquids handling, compression, 140 dehydration, processing and…
  54. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 54
    Q&A
  55. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 55
    CLOSING MIKE STICE CEO
  56. Investor and Analyst Day 2014 – Access Midstream Partners, L.P. – slide 56
    TAKEAWAYS FINANCIAL Consistently delivering EBITDA performance at or above estimates Sustained 15% distribution growth with strong coverage OPERATIONAL Executing 4.3 billion organic CAPEX plan for 2013 2016 Commercial wins include…

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