CONFIDENTIAL 2017 Deutsche Bank Leveraged Finance Conference October 3, 2017
CONFIDENTIAL SMLP Overview
SMLP Overview Summit Midstream Partners, LP (NYSE: SMLP) is a 2 rigs 4 rigs growth-oriented independent natural gas, crude oil and produced water gathering and processing company with diversified operations across seven resource plays in…
Diversified Operating Footprint Utica Williston Piceance / DJ Barnett Marcellus N. Delaware 2Q 2017 SMU: 9.5 MM (12%) In Service: Segment Adj. 17.2 MM (21%) 27.3 MM (33%) 13.0 MM (16%) 5.4 MM (7%) EBITDA(1) OGC: 9.6 MM (12%) 2Q…
SMLP Investment Considerations 1 Attractive Relative Valuation 11.5% distribution yield vs. 8.3% peer average and 7.8% Alerian MLP Index (1) Strong 1.15x distribution coverage ratio in 1H 2017 Measured distribution management…
Attractive Relative Valuation: Gathering & Processing Landscape SMLP Distribution Yield Spread Elevated Relative to G&P Peers... Despite Strong Fundamentals June 30, 2016 - September 29, 2017 13.0% 3.0% Distribution Yield (As of…
Greenfield Development Project in Growing N. Delaware Overview Strategically Positioned Initial Development Footprint In July 2017, SMLP announced a new associated gas gathering and processing project in the N. Delaware (Under…
Significant Midstream Infrastructure Needs in the N. Delaware N. Delaware Opportunity Set Significant Gas, Crude and Water Growth (1) Robust infrastructure investment is needed to support future production growth in the N. Delaware…
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…
Top Customers Positioning for Near-Term Utica Production Growth Utica Basin Rigs (September 2017) Historical Utica Volume & Rig Activity Over 200% volume growth since 2015 Rigs on SMLP System Higher rig activity represents catalyst…
Significant Operating Scale in 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 270 PADs and 559 wells connected to its…
Increasing Williston Rig Activity & Improving Completion Results Significant Rig Activity on SMLPs Systems Recent Well Results Beating Type Curves (1) Rigs on SMLP System SMLP has seen significant Liquids System rig activity in its…
Customer Acreage Trades Drive Increased Production Customer acreage turnover in the Piceance, specifically the Rifle area, has had a meaningful impact on volumes Since the first transaction in 4Q 2012, four customer acreage trades have…
Encouraged by Recent Customer Acreage Trades in the Barnett Transaction Date Buyer Seller Outlook Immediate: Re-completions of older wells, workovers 1Q 2016 GH America Beacon E&P and returning wells offline to service 4Q 2016 TOTAL SA…
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…
Marcellus: Basin Positioning & Outlook Area Positioning & Strategy Geographic Footprint SMLPs Marcellus assets provide one of two critical pipeline inlets to Sherwood, currently offering over 1.0 Bcf/d of delivery capacity System fully…
CONFIDENTIAL SMLP Financial Overview
Growing & Diversifying SMLPs Business Key Observations Exposure to Multiple Basins(1) Track record of growth and diversification by basin, customer, commodity and service 350 329 332 6% 6% 300 263 Segm ent Adjusted EBITDA…
Adequate Liquidity 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) Jun-17 Cash and Cash…
2017 Financial Guidance Full Year 2017 adj. EBITDA guidance of 285.0 million to 300.0 million Guidance Range FY 2017(1) ( in millions) Low High Adjusted EBITDA (FY 2017) 285.0 300.0 Distribution Coverage 1.10x 1.20x Growth…
CONFIDENTIAL Appendix
Deferred Payment Overview Financing the Deferred Payment Overview of Deferred Payment Calculation The Deferred Payment will flex up or down based on the actual Average Business Adjusted EBITDA, net of G&A performance of the 2016 Drop…
Reportable Segment Adjusted EBITDA Six months ended June 30, (s in 000s) 2017 2016 (1) Reportable segment adjusted EBITDA : Utica Shale 17,445 7,916 Ohio Gathering (2) 18,679 25,113 Williston Basin 34,964 38,929 Piceance/DJ…
Non-GAAP Reconciliations Six Months Ended June 30, Year Ended December 31, (s in 000s) 2017 2016 2016 2015 2014 2013 Net Income (Loss) 10,663 (54,220) (38,187) (222,228) (47,368) 47,008 Add: Interest expense 34,269 31,917 63,810…
Reconciliation of Net Cash Provided by Operating Activities to DCF Six months ended June 30, Variance (s in 000s) 2017 2016 % Distributable Cash Flow: Net Cash provided by operating activities 121,341 131,500 (10,159) (8% ) Add:…
2Q 2017 Adjustments Related to MVC Shortfall Payments (1) Three Months Ended June 30, 2017 MVC Gathering Adjustments to MVC Net Impact to (s in 000s) Billings Revenue Shortfall Payments Adjusted EBITDA Net change in deferred revenue…
Research Coverage / Contact Information Summit Midstream Partners, LP (NYSE: SMLP) Research Coverage Bank of America Merrill Lynch Barclays Capital Capital One Securities, Inc. Citigroup Global Markets Credit Suisse Deutsche…
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