Transaction Highlights Newly combined DCP Strong platform for Immediately accretive growth 11B EV in 2017 1.5-2.0B Becomes largest Creates long-term value to DPM LP unitholders Organic opportunities NGL producer and create a…
Win, Win Combination; Optimal Time DCP 2020 strategy execution has made assets MLP-friendly Increased 2017 fee-based and hedged margin to 70+%, provides downside protection with strong upside in recovery Constructive industry…
Transaction Overview Combination of Midstream and DPM simplifies structure New DCP becomes largest NGL producer and Gas processor in the U.S. Transaction Midstream retains GP/LP interests Phillips 66 and Spectra Energy continue to…
Simplified Structure - GP & LP Aligned Previous Structure Simplified Structure 50% 50% DCP LLC GP/LP distributions DCF to owners Midstream LLC Growth capex One company One cash flow Two companies GP/LP distributions All…
Strategic Rationale and Benefits Creates largest Combined DCP becomes the largest NGL producer and gas processor NGL producer and Strong balance sheet provides access to public equity and debt gas processor One public MLP structure with…
Combined Company Overview 8
Combined DCP Midstream: Industry-Leading Position Leading integrated 6.7 Natural Gas gathered/ 400 NGL Production G&P company transported (Tbtu/d)(1) (MBbl/d)(1) Antrim DJ Basin Marcellus Wattenberg Conway Midcontinent…
Multiple Growth Platforms 1.5-2.0B pipeline of capital opportunities to drive cash flow growth DJ Basin Logistics Strong producer Expansion activity driving opportunities tied expansion; to production backed by life of growth in…
Growth Projects New plants in the DJ Basin and Sand Hills capacity expansion DJ Basin Plants Sand Hills Expansion 395 million DJ Basin expansion 70 million expansion of Sand Hills (DCP to 200 MMcf/d processing plant (Mewbourn 3)…
Financial Overview 12
2017e Guidance ( in Millions, except per unit amounts) 2017e 2017e Assumptions Key Metrics Guidance Distribution coverage ratio 1.0x NGL /Gallon 0.50-0.65 Bank leverage metrics well within covenants Gas /MMbtu 3.00-3.50 DCP 2020…
Hedge Position and Commodity Sensitivities Executing DCP 2020, reducing risk, generating stable cash flow Current Hedge Position Combined Sensitivities Full Year 2017 Per unit 2016 2017 (MM) (MM) NGL Hedges (Bbls/d) 15,783 NGL…
Summary Owners support via IDR Immediately accretive giveback up to 100MM in 2017 annually through 2019 if Creates long-term value to needed DPM LP unitholders and Targets minimum Owners 1.0x Transformative transaction…
Supplemental information appendix
DCP Midstream: Assets by Basin DCP / DPM in the DJ Basin DCP in the Permian DCP in the Midcontinent 9 Gas Processing Plants, 2 Fractionators 16 Gas Processing Plants, 2 fractionators 12 Gas Processing Plants 3,500 miles of pipelines…
Assets are Well-Positioned DJ Basin/North DJ Basin Eastern Midcon growth DCP leadership position in the SCOOP/STACK Crude-driven play Midcontinent Contract restructuring Life-of-lease contracts moving towards fee Strong growth…
Non-GAAP Reconciliation Twelve Months Ended December 31, 2017 Low High Forecast Forecast (Millions) Reconciliation of Non-GAAP Measures: Forecasted net income attributable to partners 165 324 Interest expense, net of interest…
Loading...
