CONE Midstream Partners LP 4Q 2015 Earnings February 17, 2016
Summary CNNX Has Delivered Great quarter and excellent year Raised 2015 guidance twice and beat fourth quarter expectations Outstanding operational performance Sponsors well performance has been better than expected Operating…
Q4 Performance Highlights Continued strong growth with increases over prior year (4Q 2014) Revenue (gross) up 38% Millions 25 2015 Distributable Cash Flow Total volumes up 46% 20 Net CNNX Volumes up 39% Net Income (gross) up 56%…
Decline in Unit Operating Expense Has Yielded Significant Cost Savings 0.160 Unit Operating Expense (per Mcfe) 0.140 (net of Power) 0.120 4Q 2015 0.086 Per Mcfe 0.100 4Q 2104 0.133 0.080 Change (0.048) -35.8% 0.060 0.040…
Bridge: Initial EBITDA Guidance to 2015 Actual 90 80 7.7 70 8.1 60 Millions 50 40 30 20 10 - Initial Guidance Operating Volume and Mix G&A Savings Other / Misc. 2015 Actual Expense 6
Inventory of Wells Drilled But Not Connected (as of 12/31/2015) Anchor Growth Additional Total Wet Dry Inventory 12/31/15 60 0 62 122 68 54 Scheduled 2016 TIL 39 - 0 - 12 - 51 - 22 - 29 - Inventory 12/31/16 21 0 50 71 46 25…
CNNX Strong Distribution Coverage and Leverage are Positive Differentiators 2016 Estimates as published by Wells Fargo Equities Research Department 1/29/2016. CNNX data: 4Q2015 Actual; 2016 Guidance 9
Sustainability: Capacity to Fully Fund 2016 Capital Internally Amounts in millions Year Ending Dec 31, 2015 Dec 31, 2016 Distributable Cash Flow* 70.9 84.0 Total Cash Distributions (assuming 15% growth in 2016) 53.5 61.9…
Potential Upside Factors Better Well Performance Additional Debottlenecking Opportunities Incremental Cost Containment and Asset Optimization Asset Dropdowns or Acquisitions Third Party Business Increased Organic Activity…
Third Party Business Strategy Business approach Pursue strategic relationships with Marcellus and Utica upstream and midstream companies in the Appalachian Basin. Systematically identify permitted wells in close proximity to existing…
CNNX McQuay/Majorsville Area Overlaid on E&P Leaseholds and Permitted Wells 13
Annualized Amount of Sponsor-Retained EBITDA Dropdown potential is growing 70 60 50 Millions 40 30 20 10 0 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 Note: Data for Development Companies 1, 2 & 3 only 14
North Nineveh Debottlenecking Line looping and new interconnection project located in Washington and Greene Counties System was undersized original design did not accommodate activity growth and gains in productivity of sponsors'…
CNNX Valuation Metrics Amounts in millions except as noted CNNX Unit Price (s) 9.00 G&P MLP Names Covered Units Outstanding (millions) 58.3 2016 EV/EBITDA Medians Market Cap 524.9 Debt outstanding (12/31/15) 73.5 Credit Suisse…
CNNX is well positioned to service CONSOLs Utica Position CONSOL has approximately 197,000 net prospective Utica Shale acres in PA and WV. PA/WV Dry Utica well EURs are estimated at 3.0 Bcfe / 1000 feet of lateral Source: CONSOL…
CONSOLs Gaut is Gathered by CNNX Source: CONSOL Energy Fourth Quarter 2015 Earnings Presentation, January 29, 2016 18
CONSOLs Green Hill Well was Turned-In-Line in January 2016 Source: CONSOL Energy Fourth Quarter 2015 Earnings Presentation, January 29, 2016 19
CONEs Operating Flexibility Helps Shippers Improve Realizations Source: CONSOL Energy Fourth Quarter 2015 Earnings Presentation, January 29, 2016 20
Marcellus and Utica Are the Most Attractive Economic Gas Plays in North America IRRs by Basin CNNX Operating Area Source: Credit Suisse US Energy Logistics / Master Limited Partnerships (MLPs) Presentation - January 2016 21
Appendix
Non-GAAP Financial Measures EBITDA We define adjusted EBITDA as net income (loss) before net interest expense, depreciation and amortization, as adjusted for non-cash items which should not be included in the calculation of distributable…
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