CONFIDENTIAL Deutsche Bank 24th Annual Leveraged Finance Conference September 27, 2016
SMLP Overview Summit Midstream Partners, L.P. (NYSE: SMLP) is a growth-oriented limited partnership Org Structure focused on developing, owning and operating midstream assets strategically located in core producing unconventional (2)…
Diverse Portfolio of Basins, Customers and Commodities Handled Utica Williston Piceance / DJ Barnett Marcellus 2Q 2016 Segment Adj. 17 MM (21%) 19 MM (24%) 26 MM (32%) 14 MM (17%) 5 MM (6%) EBITDA(1) 2Q 2016 Nat Gas: 24 MMcf/d…
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%…
Transformational Drop Down Positions SMLP for Future Growth Highly Attractive Compelling valuation with consideration for Drop Down Assets based on a 6.5x multiple of average LTM EBITDA actually generated during 2018 and 2019 Valuation…
Impact of the 2016 Drop Down Transaction SMLP has outpaced the Alerian MLP Index by 55% since announcing the 2016 Drop Down Pre-Announce Total Return Post-Announce Total Return (1/1/2016 2/25/2016) (2/26/2016 9/23/2016) SMLP Total…
Attractive Valuation Based on Actual Future Performance Illustrative Deferred Payment Sensitivity Significant Structural Benefits ( in millions) '18 - '19 Avg. EBITDA 125 150 175 200 225 Total Net Investment Fixed at 6.5x EBITDA…
Structure Protects SMLP From Asset Performance & Development Risk The amount of the Deferred Payment is adjusted by the cumulative amount of capital expenditures and EBITDA generated by the assets over the deferral period (through…
Structure Provides Deferred Payment Financing Flexibility Deferred Payment Plan of Finance Structure Offers Option Value 2016 Drop Down acquired with SMLPs revolver, avoiding dislocated The following is an illustrative analysis that…
SMLP Segment Overview
Utica / Marcellus: Basin Positioning & Outlook SMLPs Northeast assets have exposure to the liquids-rich Marcellus in West Virginia and the dry gas, wet gas, and condensate windows of the Utica in Ohio Area Positioning, Strategy &…
Williston: Basin Positioning & Outlook SMLP has an expansive footprint in the northern core of the Williston Basin Area Positioning, Strategy & Outlook Geographic Footprint Area Positioning Expansive footprint Liquids System 1,100+…
Piceance / DJ: Basin Positioning & Outlook 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 Area Positioning, Strategy &…
Barnett: Basing Positioning & Outlook Natural gas gathering in the core of the core of the Barnett Area Positioning, Strategy & Outlook Geographic Footprint Area Positioning & Strategy System fully built-out with minimal maintenance…
SMLP Financial Overview
Growing and Diversifying SMLPs Business Key Observations Exposure to Multiple Basins(1) SMLP has continued to grow and diversify its business across multiple facets 300 286 263 7% 250 9% 223 17% Segm ent Adjusted EBITDA…
Conservative Financial Strategy Strong balance sheet and liquidity enables SMLP to execute its growth strategy Targeting long-term leverage ratio of 3.5x 4.0x Actual (s in millions) Jun-16 529 million of borrowing availability at…
Consistent Ratings Despite Improved Scale and Diversification Proven Track Record of Growth, Diversification and (1) Scalability Adjusted EBITDA Liquidity Market capitalization 1,502 1,308 1,066 518 788 536 433 375 280 208…
Financing the Deferred Payment The 2016 Drop Down structure allows SMLP to pick its spots to finance the Deferred Payment Ability to opportunistically access the debt and equity capital markets with proceeds used to prepare the…
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 (…
SMLP Key Takeaways Visible cash flow growth a function of SMLPs contract portfolio, diversified operations and capital position 2016 Drop Down provides SMLP with scale and further diversification by basin, commodity, Visible Organic…
Appendix: Non-GAAP Reconciliations
Segment Adjusted EBITDA Six Months Ended June 30, (s in 000s) 2016 2015 Segment Adjusted EBITDA Utica Shale 33,029 11,621 Williston Basin 38,929 23,615 Piceance/DJ Basins 51,046 56,909 Barnett Shale 27,990 32,301 Marcellus…
Non-GAAP Reconciliations Six Months Ended June 30, Year Ended December 31, (s in 000s) 2016 2015 2015 2014 2013 Net Income (Loss) (54,220) (4,880) (222,228) (47,368) 47,008 Add: Interest expense 31,917 30,503 59,092 48,586…
Reconciliation of EBITDA to Adjusted Distributable Cash Flow Six Months Ended June 30, Variance (s in 000s) 2016 2015 % Adjusted Distributable Cash Flow: EBITDA 33,937 77,801 (43,864) (56% ) Add: Proportional adjusted EBITDA for equity…
2Q 2016 MVC Shortfall Payments Three Months Ended June 30, 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…
Research Coverage / Contact Information Summit Midstream Partners, LP (NYSE: SMLP) Research Coverage Bank of America Merrill Lynch Barclays Capital Capital One Securities Citigroup Global Markets Credit Suisse Deutsche Bank…
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