Tall Oak Midstream Acquisition December 7, 2015 Strong. Innovative. Growing.
Tall Oak Midstream Transaction EnLink and Devon are executing on two highly strategic acquisitions that strengthen their relationship, diversify their underlying businesses and further align growth plans EnLink Midstream and Devon…
Strategic Benefits
Growth Alignment With Devon Aligns Devons & EnLinks Growth Plans Devon to Acquire Felix Energy for 1.9 B Acreage in economic core with highest returns in STACK 80,000 net surface acres Devon expects to spend 500MM in 2016 to…
Top-Tier Assets in Core of STACK & CNOW Creates Franchise Position in Central Oklahoma Tall Oak Assets Central Oklahoma System Map Post-Closing 1 Chisholm Plant: 100 MMcf/d cryogenic processing plant Additional 200 MMcf/d cryogenic…
Top-Tier Assets in Core of STACK & CNOW Early-Stage, Rapidly Developing Growth Plays Oklahomas STACK and CNOW are early-stage growth plays with strong well results STACK Overview Tall Oak Core Counties Rig Count Two main stacked…
Top-Tier Assets in Core of STACK & CNOW Robust Drilling Economics Rig Count % Decline Across US Oil Plays 1 Tall Oak footprint encompasses an area containing some of the most economic upstream assets in North America 40% Tall Oak…
Superior Contracts, Focused Producers Providing Long-Term, Stable Cash Flows Tall Oaks Customers Acreage map 15 customers Largest customers include Devon (subject to its acquisition of Felix Energy), PayRock Energy, American…
Expanded Growth Platform Long-Term Growth Opportunities Crude/condensate opportunities Holds crude dedications from select producers including Felix Energy Close proximity to Cushing and local refineries Devon and EnLink exploring…
Financial Benefits
Tall Oak Acquisition Structure Focus on Financial Flexibility & Strong Balance Sheet EnLink developed a flexible financing plan to manage the near-term impact of a large acquisition Tall Oak Acquisition (1.55 billion) Sources of…
Tall Oak Acquisition Structure Flexibility with Financing Structure Pro Forma Organizational Chart (1) TPG/Goldman(2) is investing in Devon Public EnLink via convertible Energy Unitholders preferred equity 63.0% 37.0% With the…
Financial Benefits Strong Sponsor Support Acquisition Considerations Devon Minimum Volume Commitments Tall Oak expected to add 75 - 85 MM incremental consolidated 250 adjusted EBITDA1 in 2016 (assuming a 1/1/2016 transaction close)…
Closing Remarks
Acquisition of Tall Oak Midstream Strategic Benefits Sponsor Driven Growth Transaction highlights strong sponsorship, alignment and synergistic relationship with Devon Devons proposed acquisition of Felix acreage will make it an…
EnLinks Focused Areas for Growth Strategically Positioned MLP The Tall Oak acquisition is the next step in positioning EnLink as a midstream leader in North Americas best resource plays Midland Permian Mid-Continent Leading…
Appendix
Devons Results Validate Core Position Woodford Well Results Woodford Attributes According to Devon Discovered Cana field in 2007 Best position in play 800 producing wells Significant inventory: 3,700 risked locations…
Devons Results Validate Core Position Upper Meramec Well Results Upper Meramec Attributes According to Devon Tremendous reservoir qualities Up to 500 of pay 3 landing zones Matrix porosity/over-pressured Very low water cuts…
Devons Results Validate Core Position Lower Meramec Well Results Lower Meramec Attributes According to Devon Formation thickens to northwest Attractive reservoir qualities Up to 250 of pay High reservoir pressure Potential for…
Loading...
