Second Quarter 2017 Update August 7, 2017 Earnings Call
Q2 2017 Highlights Strategic and 2017 2017 Disciplined Capital Results Execution Allocation Reaffirming guidance Strong July 2017 performance Permian growth tightening Adjusted EBITDA setting the pace for 2H Executing 2017-2018…
IDR Giveback and Distribution Coverage Incentive Distribution Right (IDR) giveback provides three year hedge against lower commodity prices and dampened industry environment Forward thinking IDR structure drives strong GP provides up…
2H 2017 Outlook Reaffirming 2017 guidance tightening ranges to reflect commodity outlook 2017 DCP 2H 2017 Guidance Outlook Key Metrics Guidance Updates Higher G&P volumes across key regions (1) 2017 Adjusted EBITDA 940-1,110 Between…
Hedging, Financing and Liquidity Opportunistically Adding Hedges Ample Liquidity & Flexibility 2H 2017e Gross Margin 4.5x Leverage ratio(1) as of June 30, 2017 Maximum 2017 bank leverage covenant is 5.75x Ample Liquidity as of June…
Volume Outlook G&P 2H 2017 Volume Outlook in Key Basins G&P volumes have stabilized 1,100 (MMcf/d) increased rig count resulting in strong 1,000 Permian Basin July volumes in key areas 900 Permian drilling translating to higher DJ…
Permian Strategy Deliberate focus on higher margin Logistics growth given risk of G&P overbuild and tighter margins 1 G&P: Permian Basin Integrated Permian Footprint Permian G&P assets provide connectivity to downstream Logistics…
Sand Hills NGL Pipeline Expansions Executing large scale demand driven expansions of Sand Hills, increasing fee-based earnings and leveraging significant integrated Permian footprint 2018 and future 2017 Sand Hills expansion 85 MBpd…
DJ Basin Strategy Premier integrated midstream position in the DJ Basin life-of-lease contracts with minimum volume commitments and margin requirements underpinning investments Continued strong partnership with producers to execute…
Summary Key Takeaways Path Forward Reaffirming guidance tightening ranges Strategic capital allocation to top to reflect commodity outlook producing basins Permian and DJ Strong July performance and volumes Sand Hills: 2017 and 2018…
DCP Midstream Appendix 13
Margin by Segment MM, except per unit measures Q2 2017 Q1 2017 Q2 2016 Q1 2016 Gathering & Processing (G&P) Segment 2017e Hedged Commodity Sensitivities Natural gas wellhead - Bcf/d 4.48 4.58 5.25 5.43 Segment gross margin including…
Hedging Update Opportunistically Adding Hedges in 2017 and 2018 2H 2017 is 78% fee and hedged Percent hedged by commodity as of 7/31/17 Hedge position Q3 2017 Q4 2017 Q1 2018 NGLs hedged (1) (Bbls/d) 27,500 29,348 10,500 Average…
Growth Focus Clear line of sight to 1.5-2B of Est Target Current and Potential Growth Capex in strategic growth projects Projects Status MM net to DCPs interest Service around our footprint Logistics & Marketing Growth Sand Hills…
2018+ Financial Targets Key financial metric priorities and targets 1 2 3 Bank Distribution Distribution leverage coverage growth target 3.0-4.0x 1.2x+ 4-5% Key targets supporting financial metrics Accretive Capital Fee…
Q1 2017 vs. Q2 2017 Segment Results G&P Adjusted EBITDA Logistics and Marketing Adjusted EBITDA Q1'17 vs. Q2'17 Q1'17 vs. Q2'17 (MM) (MM) 14 (3) (20) 6 (10) 103 (8) 92 211 179 Q1 2017 Price Costs Q1 2017 G&P Non Q2 2017 Q1…
Q2 2017 Volume trend and update G&P Volume Trend, Utilization and Rig Activity Rig count increased Q2'16 Q1'17 Q2'17 Q216 Q217 111% in DCP areas Average Average Q2'17 Net Plant/ Treater Average Wellhead Average Wellhead Average…
Consolidated Financial Results Three Months Ended Six Months Ended June 30, June 30, ( in millions, except per unit amounts) 2017 2016(1) 2017 2016(1) Sales, transportation, processing and other revenues 1,927 1,646 4,017 3,092…
Commodity Derivative Activity Three Months Ended Six Months Ended June 30, June 30, ( in millions) 2017 2016(1) 2017 2016(1) Gathering & Processing Segment: Non-cash unrealized gains (losses) 16 (29) 47 (68) Logistics & Marketing…
Balance Sheet (1) Includes the DCP Midstream Business, which the Partnership acquired in January 2017, retrospectively adjusted. Transfers of net assets between entities under common control are accounted for as if the transactions…
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