Fourth Quarter 2016 and 2017 Update Earnings Call February 14, 2017
Legacy DPM Standalone Q4 and YTD 2016 Results 3
2016 Highlights 2017 Path Forward Legacy DPM Standalone 2016 Highlights Exceeded Exceeded Executed Held distribution Generated 515-525 million 575-585 million DCP 2020 strategy, at 0.78/unit distribution 2016 DCF target 2016…
DPM Standalone Volume Update Natural gas volumes decreased 14% from Q4 2015 NGL pipeline throughput increased 6% from Q4 2015 primarily primarily due to declines in the South (Eagle Ford, East due to growth in NGL production from DCP…
DCP 2017e Guidance ( in Millions, except per unit amounts) 2017e DCP 2017e Margin: Key Metrics Guidance 72% fee-based & hedged Previous Adjusted EBITDA Range 865-1,025 Distributions in excess of equity earnings 75-85 Retaining…
2017e Adjusted EBITDA Breakdown 2017e Adjusted EBITDA by Region (Standalone and Combined) Contributed to DCPs 1,025MM(1) portfolio One third interest in Sand Hills & 40% Southern Hills Midcontinent, including 575MM(1)…
Current Hedge Position and Margin Profile Current Hedge Position Volume Price Hedged % 16,249 0.55 Targeting 80%+ fee based & hedged NGL Hedges(1) 40% Bbls/d /gal margin to protect downside while Gas Hedges 64,375 3.42 23%…
Pathway to Distribution Growth 12
Commitments Delivered Contract Lowered Realignment Cost Base Increased and stabilizing cash flow Contract realignment 235 million since inception System Growth in fee based assets to 60% Rationalization Multi-year hedging…
Financial Strategy 2018+ Financial Targets Distribution Fee and coverage hedged 1.2x+ margin 80%+ Accretive Bank growth leverage projects 3.0-4.0x 5-7x EBITDA Capital Distribution structure growth target debt/equity…
Growth Opportunities and Operating Leverage Visibility to 1.5-2.0B capital efficient growth opportunities DJ Basin NGL Logistics 395 million plant and gathering system Sand Hills expanding due to Permian expansion (Q418) growth…
Strengthening the Balance Sheet Pro Forma Combined Leverage Trending Down (Billions) 5.9x…
Path Forward 2018+ Targets DCP is well positioned Distribution Bank to benefit from coverage leverage industry recovery via 1.2x+ 3.0-4.0x volume growth, Sustainable operating leverage Distribution Growth and commodity price…
DCP Midstream Appendix 19
Industry Leading Position Leading integrated G&P company Antrim DJ Basin Marcellus Wattenberg Conway Midcontinent Front Range Front Range 64,300 miles of pipeline(1) Southern Hills Texas Express Permian Southern…
Strong Producers in Key Basins DJ Basin (North) Midcontinent Permian South DCPs volume and margin portfolio is supported by long term agreements with a diverse number of high quality producers in key producing regions 21
Logistics and Marketing Overview DCP Logistics Assets Key Attributes 100% fee based margin NGL pipeline margin represents majority of the total margin Increased pipeline throughput driving strong fee based margin growth Approx. YTD…
NGL Pipeline Customers Customer centric NGL pipeline takeaway providing open access to premier demand markets along the Gulf Coast and at Mont Belvieu Legend: Southern Hills DCP operated Connects to 2.6 Bcf/d Third party operated…
Ethane Recovery Opportunity DCP is well positioned for upside from ethane DCP plants rejecting 60,000 65,000 bpd recovery NGL pipelines poised for 75-100 million Bakken 50MBPD NE / Other volume/margin uplift(1) 275MBPD About half…
North Region Overview DCP DJ Basin Assets North Operating Data YTD December 31, 2016 Gas & NGL Active Available Total Gathering Plant / Plant Wellhead NGL Systems Treater Capacity Volumes Production Plant (Miles) Count (Bcf/d)(1)…
Permian Region Overview DCP Permian Assets Permian Operating Data YTD December 31, 2016 Gas & NGL Available Total Gathering Active Plant Wellhead NGL Systems Plant Capacity Volumes Production Plant (Miles) Count (Bcf/d)(1) (Bcf/d)…
Midcontinent Region Overview DCP Midcontinent Assets Midcontinent Operating Data YTD December 31, 2016 Gas & NGL Available Total Gathering Active Plant Wellhead NGL Systems Plant Capacity Volumes Production Plant (Miles) Count…
South Overview DCP South Assets South Operating Data YTD December 31, 2016 Gas & NGL Available Total Gathering Active Plant Wellhead NGL Systems Plant Capacity Volumes Production Plant (Miles) Count (Bcf/d)(1) (Bcf/d) (MBbls/d)…
Growth Projects in Execution or Development New plants in the DJ Basin and Sand Hills capacity expansion G&P: DJ Basin Expansion Logistics & Marketing: Sand Hills Expansion Cooperative development plan with key Visible growth expected…
Consolidated Financial Results Three Months Ended Twelve Months Ended December 31, December 31, ( in millions, except per unit amounts) 2016 2015 2016 2015 Sales, transportation, processing and other revenues 413 407 1,517 1,813…
Commodity Derivative Activity Three Months Ended Twelve Months Ended December 31, December 31, ( in millions) 2016 2015 2016 2015 Non-cash losses commodity derivative (25) (25) (108) (130) Other net cash hedge settlements…
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