CONFIDENTIAL Bank of America Merrill Lynch 2017 Energy Credit Conference June 6, 2017
CONFIDENTIAL SMLP Overview
SMLP Overview Summit Midstream Partners, LP (NYSE: SMLP) is a 3 rigs 2 rigs growth-oriented independent natural gas, crude oil and produced water gathering company with diversified operations across six resource plays in the continental…
Why Own SMLP 1 Attractive Relative Valuation Distribution yield of 9.9% versus G&P peer average of 8.6% and Alerian MLP Index of 7.0%(1) Significant underlying financial strength with a 1.19x distribution coverage ratio Measured…
Diversified Operating Footprint Utica Williston Piceance / DJ Barnett Marcellus 1Q 2017 Segment Adj. 17 MM (21%) 18 MM (22%) 29 MM (35%) 12 MM (15%) 6 MM (7%) EBITDA(1) 1Q 2017 Operated Nat Gas: 17 MMcf/d Nat Gas: 275…
Attractive Relative Valuation: Gathering & Processing Landscape SMLP Distribution Yield Spread Elevated Relative to G&P Peers... Despite Strong Fundamentals June 30, 2016 - June 2, 2017 11.5% 2.5% Distribution Yield (As of 6/2/2017)…
Strong Balance Sheet Enables SMLP to Execute Growth Strategy SMLP Balance Sheet Provides the Foundation Well-Capitalized with Sponsor Support Targeting long-term leverage ratio of 3.5x 4.0x (s in millions) Mar-17 Cash and Cash…
Deferred Payment Overview Financing the Deferred Payment Overview of Deferred Payment Calculation The 2016 Drop Down structure allows SMLP to pick its spots to finance the Average Business Adjusted EBITDA, net of G&A Deferred Payment…
Historical Utica Rig Activity Supports Positive Outlook Rig Activity Drives Volume Throughput Growth Outlook 7.8 Average Rigs in 2015 (1) 2.2 Average Rigs in 2016 (1) 3.4 Average Rigs in 2017 (2) 1,400 Significant Increase in…
Top Customers Positioning for 2H 2017+ Utica Development Utica Basin Rigs (May 2017) GPOR Guidance Based on a 6 to 8 Rig Utica Program Gulfport Rigs: 6 // Ascent Rigs: 6 // Other Rigs: 12 Rigs on SMLP System Other Rigs in…
Large Utica Footprint Provides Significant Operating Leverage Large Inventory of Drilling Locations Summit Ohio Midstream Utica Gathering Company (1) Based on existing leaseholds, SMLP estimates that its customers have 1,100 to 1,500…
SMLPs Marcellus Assets Strategically Positioned Sherwood Processing Capacity Set to Increase SMLP Operates One of Two Sherwood Inlets On February 6, 2017, MPLX formed a joint venture to support the ongoing expansion of the Sherwood…
Customer Acreage Trades Drive Increased Activity Customer acreage trades in the Piceance, specifically the Rifle area, have had a meaningful impact on volume throughput Since the first transaction in December 2012, three customer…
Encouraged by Recent Customer Acreage Trades in the Barnett Transaction Date Buyer Seller Outlook Immediate: Work-overs and returning wells offline to 1Q 2016 GH America Beacon E&P service 4Q 2016 TOTAL SA Chesapeake Energy Near-Term:…
Significant Development Opportunities Exist within the Bakken Williston assets have a stable base of cash flow and offer In-Fill Drilling Offers Low Hanging Fruit upside potential from: Currently SMLP has 268 PADs and 553 wells…
Utica: Basin Positioning & Outlook Area Positioning Geographic Footprint SMLPs Utica assets span the dry gas, wet gas, and condensate windows Rigs in southeastern Ohio Ohio on Gathering SMLP Top tier drilling economics at strip…
Williston: Basin Positioning & Outlook Area Positioning Geographic Footprint Expansive gathering footprint with 1,100+ miles of crude, gas and water Rigs on SMLP System Liquids System pipelines and 1.2 million dedicated acres DUC…
Piceance / DJ: Basin Positioning & Outlook Area Positioning Geographic Footprint Positioned in the core of the Piceance & DJ Basins with exposure to the liquids-rich Mesaverde formation and emerging Mancos & Niobrara Rigs on SMLP…
Barnett: Basin Positioning & Outlook Area Positioning & Strategy Geographic Footprint System fully developed with minimal capex requirements Continuous improvement in the reservoir System throughput has outperformed original…
CONFIDENTIAL SMLP Financial Overview
Growing & Diversifying SMLPs Business Key Observations Exposure to Multiple Basins(1) Track record of growth and diversification by basin, 350 329 332 customer, commodity and service 6% 6% 300 263 24% 23% Segment Adj. EBITDA CAGR…
2017 Financial Guidance Full Year 2017 adj. EBITDA expected to be between the 295.0 million to 315.0 million with an annualized fourth quarter adjusted EBITDA run rate between 325.0 million and 345.0 million. Guidance Range FY…
CONFIDENTIAL Appendix: Non-GAAP Reconciliations
Reportable Segment Adjusted EBITDA Three months ended March 31, (s in 000s) 2017 2016 (1) Reportable segment adjusted EBITDA : (2) Utica Shale 16,985 15,577 Williston Basin 17,809 19,719 Piceance/DJ Basins 28,974 24,817…
Non-GAAP Reconciliations Three Months Ended March 31, Year Ended December 31, (s in 000s) 2017 2016 2016 2015 2014 2013 Net Income (Loss) (583) (3,665) (38,187) (222,228) (47,368) 47,008 Add: Interest expense 16,716 15,882 63,810…
Reconciliation of Net Cash Provided by Operating Activities to DCF Three months ended March 31, Variance (s in 000s) 2017 2016 % Distributable Cash Flow: Net Cash provided by operating activities 62,449 66,849 (4,400) (7% ) Add:…
1Q 2017 MVC Shortfall Payments Three Months Ended March 31, 2017 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 Citigroup Global Markets Credit Suisse Goldman Sachs Robert W. Baird & Co. RBC…
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