CONE Midstream Partners LP MLPA Investor Conference May 31 June 2, 2017
CONE Midstream Partners LP A Brief History CONE Gathering LLC a 50/50 midstream joint venture Originally between CONSOL Energy Inc. (NYSE:CNX) and Noble Energy, Inc. (NYSE:NBL) (the Sponsors) Formed in 2011 to service their natural…
Breaking News: Quantum Energy Poised to Replace Noble as CONE Sponsor May 2 - Noble announced agreement to sell its upstream acreage position to HG Energy, a portfolio company of Quantum Energy Partners Acreage remains dedicated to…
CNNX Overview
CNNX offers an attractive investment proposition Strategic Largest dedicated acreage position in core of lowest cost gas play Location provides multi-decade development horizon Upstream development drives organic growth on existing…
Gathering Systems and Sponsor Acreage Overview Gathering System Information(1) Pipeline Capacity Compression System (Miles) (BBtu/d) (HP) Anchor 175 1,429 75,150 Growth 31 860 6,700 Additional 48 545 9,480 Total 254 2,834…
Additional Growth Opportunities Dedicated Acreage, Utica Potential, System Capacity Dedicated Undeveloped Marcellus Acreage Growth Potential Potential wells beyond 1 mile Potential wells within 1 mile of of existing CONE DevCo…
Distributions and DCF A track record of growth and robust coverage DCF and Cash Per Unit Distributions in Millions Distribution 35 0.30 30 30.3 1.61x 0.25 25 Coverage 24.6 24.7 23.6 23.3 22.4 20 19.5 0.20 14.9 15 14.1…
Development Planning Process is Iterative and Updated Quarterly Gathering agreements require each shipper to update production plans quarterly Submission includes detailed two year Sponsors plan and more general ten year program…
Business Outlook
Business Strategy Focused on Sustainable Value Growth Sustainable growth through disciplined capital investment and conservative financial profile Guiding Principle Target leverage ratio < 3.0x Target distribution coverage 1.15x…
Financial Outlook: Base View Excludes 3rd Party Business and Dry Utica Potential Financial Highlights Balance Sheet and Coverage Adjusted EBITDA * Sponsor Retained MLP Debt/Adjusted EBITDA Attributable to CNNX Millions 3.0x…
Potential Upside Factors to Near-Term Outlook Acceleration of Organic Activity by New Sponsor DUCs and top-holed wells provide most visible opportunity for near-term activity addition Sunk capital potentially translates into…
DUC and Top Hole Inventory Wells Drilled but Uncompleted DevCo CONSOL Noble Total Anchor 7 5 12 Additional 36 7 43 Other - 2 2 Total 43 14 57 Wells Top-Hole Drilled Only DevCo CONSOL Noble Total Anchor 10 - 10…
A more active Sponsor has the potential to drive increased organic growth Baseline(1) Noble-op 2017 2018 2019 Assumption Rigs 0 Horizontal Rigs 1 Horizontal Rig TILs 15 TILS 5 TILS 18 TILS Incremental Cumulative 27 mmcf/d…
CNNX is Positioned to Service CONSOLs Stacked 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 Note: CONSOLs…
Appendix
Non-GAAP Financial Measures EBITDA and Adjusted EBITDA We define EBITDA as net income (loss) before net interest expense, depreciation and amortization, and Adjusted EBITDA as EBITDA adjusted for non-cash items which should not be…
Non-GAAP Financial Measures (continued) Reconciliation to GAAP Measures (continued) (Amounts in Millions) 2015 2016 2017 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Net Income 21.2 24.9 33.6 35.8 37.3 24.5 36.4 32.0 33.2 Add: Interest Expense…
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