Non-GAAP Measures Distributable Cash Flow, Adjusted EBITDA , and Net Operating Margin are not measures of performance calculated in accordance with GAAP, and should not be considered separately from or as a substitute for net income,…
Geographic Footprint SOUTHWEST NORTHEAST LIBERTY UTICA GULF COAST Granite Wash, Woodford, Cotton Huron/Berea Shale Marcellus Shale Joint Venture with EMG 140 MMcf/d cryogenic gas Valley, Travis Peak, Haynesville 505 MMcf/d…
Growth Driven by Customer Satisfaction MarkWest Ranked 1 in Natural Gas Midstream Services Customer Satisfaction EnergyPoint Research, Inc. 2011 Customer Satisfaction Survey 6
Shale Plays Are Driving Natural Gas Supply Source EIA AEO 2012 US Lower 48 Gas Production vs Demand (Trillion Cubic Feet) 30 30 Gas Demand 25 25 20 Net Imports 39% 20 Shale Gas 23% 15 15 Tight Gas 26% 25% 10 Coal…
Resource Play Economics Gas Price Required for 12% IRR 7.00 6.50 6.00 5.50 5.00 NYMEX gas price 4.50 (/mmbtu) 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 - Source: Goldman Sachs February, 2012 8
MarkWests Commitment to Resource Plays Net capital investments in emerging resource plays since 2006 1,200 1,000 Capital Expenditures 800 ( in millions) 600 400 200 0 2004 2005 2006 2007 2008 2009 2010 2011…
Long-term Appalachian History MarkWest has operated vertically integrated gas processing and NGL fractionation, storage, and marketing in the Northeast for more than 20 years MarkWest is the largest gas processor and fractionator in…
MarkWest Liberty Overview Competitive advantages Significant first-mover advantage in the prolific Marcellus Shale with key producer production commitments and acreage dedications in excess of 400,000 liquids-rich acres Critical…
MarkWest Liberty Marcellus Project Schedule MarkWest Liberty is developing integrated and scalable gathering, processing, fractionation, and marketing infrastructure to support production in excess of 1.7 Bcf/d Houston Processing and…
Houston Processing and Fractionation Complex 13
Majorsville Processing and Fractionation Complex 14
Strong Forecasted Growth in Ethane Demand 1,500 Ethane demand is forecasted to increase by 1,400 more than 40% over the 1,300 next 6 years Increased demand 1,200 driven by Gulf Coast 1,100 ethane crackers Ethane Volumes…
MarkWest Libertys Processing Complexes Support Ethane Recovery MarkWest Liberty has the ability to recover ethane at all of its processing plants and to transport 120,000 the ethane to de-ethanization facilities via its extensive…
Marcellus Ethane A Third-Party Viewpoint Implied Ethane Production In the Marcellus Based on Processing Capacity Source: Wells Fargo, January 2012 17
Increasing Demand for US Ethane US Ethylene Industry's Max Capability to Crack Ethane (1000 BPD) 2,000 Low Probability New Plants 1,800 High Probability New Plants 1,600 Converisons/Expansions/Restarts 1,400 2011 C2 Cracking…
Max US Ethane Supply (with and without ATEX) vs Max Ethane Cracking Capability EPDs ATEX line will be Max Available Ethane Supplies vs Max Ethane Cracking Capability (1000 BPD) needed to support the 1,800 The need Low Probability…
Project Mariner: A Comprehensive Ethane Solution Sarnia Mariner West Mariner East Pittsburgh Existing Sunoco Pipeline New MarkWest Philadelphia Liberty Pipeline MarkWest Houston Existing Sunoco Fractionator…
Project Mariner: A Comprehensive Ethane Solution MarkWest Liberty and Sunoco Logistics are developing efficient and scalable ethane projects that meet producers ethane production schedules and provide access to attractive NGL…
MarkWest Utica Overview Joint venture with The Energy & Minerals Group (EMG) Long-term partnership to develop significant natural gas 200 MMcf/d gathering, transportation, and processing and NGL Harrison transportation,…
MarkWest is the Midstream Leader in Northeast Shales Harrison Houston Majorsville Monroe Mobley Sherwood Siloam Kenova Cobb Kermit Langley Boldman Utica Shale Marcellus Shale Huron Shale 23
Financial Overview
2012 DCF and Capital Expenditure Forecast 2012 DCF forecast of 440 million to 500 million 2012 capital expenditure forecast of 900 million to 1.3 billion Liberty Utica * Northeast Southwest 40 to 70 Liquids-rich gas gathering…
Capital Markets and Liquidity Update MarkWest focuses on the right timing and size of capital market activities to fund capital expenditures while consistently improving its credit metrics and maintaining a strong liquidity position…
Capital Structure As of As of ( in millions) December 31, 2010 December 31, 2011 Cash 67.5 117.0 Credit Facility 66.0 8-1/2% Senior Notes due 2016 274.3 8-3/4% Senior Notes due 2018 499.1 81.0 6-3/4% Senior Notes due 2020…
Strong Distribution Growth and Unit Performance 204% Distribution Growth since IPO in May 2002 (12% CAGR) 3.00 70 60 2.50 Distribution per Common Unit 50 2.00 Unit Price 40 1.50 30 1.00 20 0.50 10 0.00…
Cost of Equity Capital 0% 2% 4% 6% 8% 10% 12% 14% 16% NKA ETP KMP GLP TLP BWP NS XTEX Cost of Equity Capital EEP EROC CMLP PNG RGP HEP PAA Common Unit Yield BPL TCP DPM WPZ…
Keys to Success Maintain stronghold in key resource plays with high-quality assets Execute growth projects that are well diversified across the asset base Provide best-of-class midstream services for our producer customers…
Appendix 31
Reconciliation of DCF and Distribution Coverage Year ended Year ended ( in millions) December 31, 2010 December 31, 2011 Net income 31.1 106.2 Depreciation, amortization, impairment, and other non-cash operating expenses 167.7…
Reconciliation of Adjusted EBITDA Year ended Year ended Year ended ( in millions) December 31, 2009 December 31, 2010 December 31, 2011 Net income (loss) (113.4) 31.1 106.3 Non-cash compensation expense 3.9 7.5 3.4 Non-cash…
Reconciliation of Net Operating Margin Year ended Year ended ( in millions) December 31, 2010 December 31, 2011 Income from operations 188.5 318.2 Facility expense 151.4 173.6 Derivative activity 80.4 75.5 Revenue deferral…
1515 Arapahoe Street Tower 1, Suite 1600 Denver, Colorado 80202 Phone: 303-925-9200 Investor Relations: 866-858-0482 Email: investorrelationsmarkwest.com Website: www.markwest.com 35
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