CONFIDENTIAL 2016 MLPA Investor Conference June 2 - 3, 2016
Summit Midstream Partners, LP Overview Growth-oriented midstream MLP focused on natural gas, crude oil and produced water gathering General Overview Distribution Per LP Unit / Unit Ticker SMLP 2.300 Exchange NYSE 2.200 Current…
Transformational Transaction with Exposure to High Growth Utica Shale On March 3, 2016, SMLP closed the drop down acquisition of all operating assets from Summit Investments Transforms SMLP into a larger, more diversified organic…
Geographically Diverse Operating Footprint SMLP adds high-growth Utica Shale operations to its diversified portfolio of assets 1 Ohio Gathering Premier natural gas gathering system spanning across the condensate, wet gas and dry gas…
2016 Drop Down Transaction Details Transaction expected to be immediately accretive to DCF per unit; significantly enhances distribution coverage On March 3, 2016 (the Initial Close), SMLP made a cash payment of 360 million to Summit…
No Need for SMLP to Access Capital Markets Capital Expenditures 1,200 Majority of capex and associated development risk already incurred 900 by Summit Investments s in millions Estimate 150 to 200 million of total capex per…
2016 Drop Down Transaction Highlights Transaction further diversifies SMLPs geographic footprint, customer mix and commodity exposure while enhancing its operating scale, growth and credit profile Utica assets represent over 80% to 90%…
2016 Financial Guidance SMLP will take a measured approach with regard to DPU growth in 2016. In the near-term, SMLP intends to focus on building distribution coverage and strengthening its balance sheet Guidance Range FY 2016 ( in…
SMLP Overview
SMLP Investment Considerations & Operating Statistics SMLP Investment Considerations 98% of revenue is fee-based Fee-Based 3.5 Tcfe of remaining MVCs through 2026 provide downside protection Contract Portfolio Provides for stable…
Differentiated Contract Portfolio with Significant MVC Underpinning SMLP Contract Portfolio Overview Primarily long-term and fee-based contracts for natural gas, NGL, crude oil and produced water gathering Avg. MVCs Through 2020 = 59%…
Evolution of SMLPs Business Profile 2016 Drop Down continues to further diversify SMLP geographically while enhancing its core focus on fee-based revenue Revenue Composition 2012 at IPO 2016E 2019E Variable Variable Variable 3%…
Demonstrated Track Record of Sponsor Support Summit Investments has a proven track record of supporting SMLP through unit purchases, competitive drop down multiples, and re-investment of sale proceeds Estimated 1.2 billion Substantial…
SMLP Financial Overview
Conservative Financial Strategy Strong balance sheet and liquidity enables SMLP to execute its growth strategy Actual Targeting long-term leverage ratio of 3.5x 4.0x ( in millions) Mar-16 529 million of borrowing availability at…
Utica Shale Natural Gas Gathering and Condensate Stabilization Assets Located in the Utica Shale Segment Summary Map of Utica Assets Asset Summit Utica and Ohio Gathering Reportable Segment Utica Shale Summit Utica 1Q 2016 Throughput…
Williston Basin Crude oil, produced water, and associated natural gas gathering in the Bakken Shale Segment Summary Map of Williston Assets Assets Bison Midstream, Polar & Divide, Tioga Midstream Polar & Divide Reportable Segment…
Piceance/DJ Basins Positioned in the core of the Piceance/DJ Basins with exposure to the liquids-rich Mesaverde formation as well as the emerging Mancos & Niobrara formations Segment Summary Map of Piceance/DJ Assets Asset Grand River…
Barnett Shale Natural gas gathering in the core of the core of the Barnett Segment Summary Map of Barnett Assets Asset DFW Midstream Reportable Segment Barnett Shale 1Q 2016 Throughput 341 MMcf/d Throughput Capacity 480 MMcf/d Basin…
Marcellus Shale High-pressure gas gathering and compression assets located in the rich gas window of the Marcellus Shale Segment Summary Map of Marcellus Shale Assets Asset Mountaineer Midstream Reportable Segment Marcellus Shale 1Q…
Appendix: Non-GAAP Reconciliations
Segment Adjusted EBITDA Three Months Ended March 31, (s in 000s) 2016 2015 Segment Adjusted EBITDA Utica Shale 15,577 5,206 Williston Basin 19,719 10,975 Piceance/DJ Basins 24,816 28,702 Barnett Shale 14,078 16,760…
Non-GAAP Reconciliations Three Months Ended March 31, (s in 000s) 2016 2015 Net Loss (3,665) (2,485) Add: Interest expense 15,882 14,904 Deferred purchase price obligation expense 7,463 - Income tax expense - 430 (1)…
Reconciliation of EBITDA to Adjusted Distributable Cash Flow Three Months Ended March 31, Variance (s in 000s) 2016 2015 % Adjusted Distributable Cash Flow: EBITDA 47,446 38,629 8,817 22.8% Add: Proportional adjusted EBITDA for…
1Q 2016 MVC Shortfall Payments Three Months Ended March 31, 2016 MVC Gathering Adjustments to MVC Net Impact to (s in 000s) Billings Revenue Shortfall Payments Adjusted EBITDA Net change in deferred revenue related to MVC shortfall…
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