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February 2017 Private Equity Perspective – Arb Midstream LLC

Arb Midstream LLC · Feb 24, 2017 · 22 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. February 2017 Private Equity Perspective – Arb Midstream LLC – slide 1
    ARB Midstream, LLC The Private Equity Perspective on Energy Infrastructure February 2017
  2. February 2017 Private Equity Perspective – Arb Midstream LLC – slide 2
    ARB Midstream Background ARB Midstream was formed in August 2014 Formerly of NGL Energy Partners (NYSE:NGL) Highly acquisitive, fast growing MLP Backed by a single family office Ball Venture Natural Resources Energy division of…
  3. February 2017 Private Equity Perspective – Arb Midstream LLC – slide 3
    ARBs Development Timeline: Combination of Greenfield and Acquistion Sept. 2014: ARB founded by Adam Bedard and Rogan May 2015: announced McGillis along with Cortney Permian Gateway rail port April 2016: Niobrara Liddiard of Ball…
  4. February 2017 Private Equity Perspective – Arb Midstream LLC – slide 4
    Creating Value in Midstream Markets Analyze Identify Execute Operate Analyze: Every step in ARB's strategy is rooted in proprietary analytics that are used to understand and predict market opportunities, and to reduce risk and…
  5. February 2017 Private Equity Perspective – Arb Midstream LLC – slide 5
    ARBs Operational Footprint is the North American Inland Corridor. Focus on Plays that Demonstrate the Strongest Producer Economics and/or Demonstrate Production Growth Outstripping Current Takeaway Capacity Existing/proposed storage…
  6. February 2017 Private Equity Perspective – Arb Midstream LLC – slide 6
    ARB Operates in Three Segments Description ARB Assets/Capabilities Crude oil, LPGs and 157,000 bbl/d crude gathering system in the Niobrara refined product and Wattenberg plays in Weld County, Colorado Gathering & pipelines, and…
  7. February 2017 Private Equity Perspective – Arb Midstream LLC – slide 7
    Midstream Market Outlook 7
  8. February 2017 Private Equity Perspective – Arb Midstream LLC – slide 8
    Key Shortterm Dynamics in the Crude Midstream Market Flat price is up, incentivizing increased rig counts Rig count has nearly doubled from the low North American production is forecast to grow by 1.3 MM/d by the end of 2018 Shale…
  9. February 2017 Private Equity Perspective – Arb Midstream LLC – slide 9
    Since ARB started, WTI Dropped By Over 75%, But Have Doubled From the Lows a Year Ago 105 95 85 75 /bbl 65 55 45 35 25 Source: EIA WTI Brent 9
  10. February 2017 Private Equity Perspective – Arb Midstream LLC – slide 10
    BrentTI Spread Widening Recently, In Support of Exports 105 15.00 13.00 95 11.00 85 9.00 Brent WTI Diff (/bbl) 75 7.00 /bbl 65 5.00 3.00 55 1.00 45 (1.00) 35 (3.00) 25 (5.00) Source: EIA Brent WTI Diff…
  11. February 2017 Private Equity Perspective – Arb Midstream LLC – slide 11
    Horizontal Rig Count Is Nearly Double What it Was 8 Months Ago, and Growing At a Faster Rate Per Week than in the 100+/bbl Oil Days US Horizontal Rig Count 1400 1200 Producers are adding 7.5 Hz rigs per week 1000 This compares to 6…
  12. February 2017 Private Equity Perspective – Arb Midstream LLC – slide 12
    Shale Plays Continue to Ramp Up Rig Count All Rig Count Hz Rigs Ver Rigs Dir Rigs Mthly Total 754 624 71 59 +42 +13 +11 +17 U.S. Rig Count +8 +10 800 40 35 Weekly Change in Rig Count 700 30 600 25 +25 Total Rig…
  13. February 2017 Private Equity Perspective – Arb Midstream LLC – slide 13
    Declines in Production Experienced in 2015 and 2016 Will Be Reversed in 12 to 18 Months YoY Change in Production (DecDec) 1,600 1,400 1,200 YoY Change in Production (Mbod) 1,000 800 Other 600 Offshore 400 Bakken 200…
  14. February 2017 Private Equity Perspective – Arb Midstream LLC – slide 14
    U.S. Crude Stocks At Over 80% of Capacity, Impacts Market Rebalancing Cushing Stocks and Storage Capacity 90 Stocks and Capacity 70 (MMbbls) 50 30 10 PADD 3 Stocks and Storage Capacity Stocks and Capacity 300…
  15. February 2017 Private Equity Perspective – Arb Midstream LLC – slide 15
    ARBs Midstream Investment Outlook 15
  16. February 2017 Private Equity Perspective – Arb Midstream LLC – slide 16
    Strategic Deal Characteristics We have a land, then expand philosophy about entering new markets ARB uses proprietary, inhouse research to pinpoint infrastructure bottlenecks and underserved regions that are backed by oil plays…
  17. February 2017 Private Equity Perspective – Arb Midstream LLC – slide 17
    Current Project and Acquisition Pipeline: Over 350MM In Short Listed Deals We currently have nine deals either under LOI or in term sheet negotiations (representing 365MM in capex and 70 MM in potential annual earnings), and an…
  18. February 2017 Private Equity Perspective – Arb Midstream LLC – slide 18
    DJ/Niobrara, Permian and Oklahoma Account for Most of ARBs Deal Pipeline Number of Opportunities by Region (2016Q1 2017) 2 3 2 1 1 2 2 3 1 10 2 1 2 4 4 1 10 2 2 5 1 February 2017 18
  19. February 2017 Private Equity Perspective – Arb Midstream LLC – slide 19
    Some Plays Require Significantly Higher Capex and Multiples to Enter Latest 2017 Ask Multiples Multiple of EBITDA1 2016 Average Ask Multiples Key Insights Bidask spread has Bakken narrowed in the 10 DJ/Niobrara recently, 9 but…
  20. February 2017 Private Equity Perspective – Arb Midstream LLC – slide 20
    Potential Growth Drivers for Midstream Investments Project Value Drivers to Increase Value and Earn Down Acquisition/Development Multiples Legend Gathering and Transportation Marketing Storage and Terminaling High growth potential No…
  21. February 2017 Private Equity Perspective – Arb Midstream LLC – slide 21
    ARB Midstream, LLC 1600 Broadway Suite 2400 Denver, CO 80202 Office: 7206007500 Adam Bedard Chief Executive Officer adam.bedardarbmidstream.com 3039563351
  22. February 2017 Private Equity Perspective – Arb Midstream LLC – slide 22
    Gathering & Transportation: Platte River Gathering and Lucerne Station Overview Location: Located in Weld County, Colorado in the core of the Platte River Gathering System Niobrara unconventional oil play Market Access: Cushing, via…

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