CONE Midstream Partners LP Credit Suisse 2015 MLP & Energy Logistics Conference June 23, 2015
Key Investment Considerations Dedicated 516,000 net acres in premier areas of Marcellus Shale Strategically Access to liquids-rich and dry gas areas Advantaged Marcellus Close proximity to processing facilities and long-haul…
CNNX Overview
CONE Midstream Partners LP - Overview CONE Gathering and the Formation of CNNX In 2011, CONSOL Energy (CNX) and Noble Energy (NBL) (the Sponsors) formed a 50/50 midstream joint venture, CONE Gathering LLC, to service their rapidly…
Structured for Significant Organic and Drop-down Growth Potential CONE Midstream Partners LP 75% 5% 5% interest interest interest Organic Growth Drop-down Growth Anchor Systems Growth Systems Additional Systems…
CNNX Benefits From its Development Company Structure Provides CNNX with a critical mass of established gathering assets within Anchor Systems Shields CNNX from a substantial portion of the capital requirements, which will…
Gathering Systems Overview Gathering System Information(1) Maximum Interconnect Pipeline Capacity Compression System (Miles) (Bbtu/d) (HP) Anchor 132 1,329 61,380 Growth 27 860 8,040 Additional 21 385 Total 180 2,574 69,420…
Gathering Agreements Support Stable Fixed Fee Cash Flows Gathering Agreement Highlights 20-year gas gathering agreement 516,000 dedicated acres 0.40/MMBtu dry gas gathering fee General Terms 0.55/MMBtu wet gas gathering fee 1…
Strong Sponsorship in Strategic Gas Play
CNNX Operations are Located in Premier Area of Marcellus Shale Marcellus Shale: Estimated Ultimate Recovery per Foot Data as of September 2014 11
Marcellus Shale Advantaged Economics Low Breakeven Provides Attractive Returns in Most Commodity Environments Gas Shale Play Breakeven Prices (/MMBtu) 6.00 Acreage by Window Marcellus SWPA (Dry) 9% 5.00 CPA South (Dry)…
Sponsored by Experienced, Large-Cap E&P Companies Approximately 7 billion market capitalization Approximately 18 billion market capitalization Over 6.8 Tcfe of proven reserves at year-end 2014 Owns reserves of 1.4 Bboe and assets…
Strong Anchor Tenants Developing Premier Marcellus Shale Resource Highlights Marcellus Shale Acreage Position 2,000 Two of the leading E&P companies in the Eastern (Acres in Thousands) United States Sponsors Position Marcellus…
Sponsors Hold Strategically Advantaged Position in Marcellus Core Sponsors Hold Approximately 700,000 Net Acres in the Cost-advantaged and Prolific Area of the Marcellus Sponsors 50/50 upstream joint venture in the Marcellus covers…
Proximity to Major Interstate Pipelines Key Highlights Region Pipelines Available Pipelines Under Contract Sponsors have secured sufficient Central Pennsy lv ania DTI, EQT, TCO, SE DTI, SE processing and takeaway capacity to…
Growth Profile
CNNXs Throughput Growth Has Just Begun CNNX Consolidated Throughput Growth 1,200 2015 YoY Growth: 40% - 50% 1,000 Total CONE Gathering 883 Attributable to CNNX 778 800 (Amounts prior to 4Q2014 are proforma) 2015 Forecast…
Improved Completion Techniques Enhance Well Recovery and Pipeline Volumes Reduced Cluster Spacing & Shorter Stage Lengths Overview of Sponsors Activity Advanced completion techniques, such as Reduced Cluster Spacing (RCS) and…
Stacked Pay Potential Gas Factory Development Stacked Laterals Provide Economies of Scale to Access up to 4 Pays From 1 Pad 20
Third-party Acreage Opportunity Wells Permitted & Drilled per County High Concentration of Third-Party Wells in Close Proximity 21
CNNX : Engineered for Long-term Growth CONE Midstream Has Ample Business Growth Drivers Even in Lower Commodity Price Environment Co-ownership of Development Companies Provides Opportunities for Drop-downs of Sponsors Retained…
Balance Sheet Well Positioned for Growth CNNX Has a Balance Sheet and Liquidity Profile that Facilitates its Growth Strategy Capitalization 1 ( in Millions) March 31, 2015 Cash and Cash Equivalents 0.5 Revolving Credit…
Attractive Financial Profile Upstream development plan drives organic growth on existing system Visible Growth Large drop-down inventory from Sponsors retained ownership interest Stable Revenue Long-term (20-year), fixed-fee…
Investment Highlights Recap Strategically Advantaged Marcellus Shale Assets Growth Experienced, Through Stable, Large-Cap E&P Fixed-Fee Cash Sponsorship Flows Financial Robust Flexibility and Distribution Strong…
Appendix
Non-GAAP Financial Measures EBITDA We define EBITDA as net income before income taxes, net interest expense, depreciation and amortization. EBITDA is used as a supplemental financial measure by management and by external users of our…
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