Shell Midstream Partners, L.P. Investor Day November 16, 2017 Shell Midstream Partners
John Hollowell Chief Executive Officer Shell Midstream Partners November 16, 2017 4
Agenda 01 Shell Midstream Partners: Delivery to Date 02 Key Differentiator: Size and Scale of Sponsor 03 US Business Presence & Midstream Growth Opportunities 04 Updated Runway & Growth Expectations 05 Current Financial…
Three Years of Strong Delivery Since IPO Strong Distribution Growth Up almost 100% over the first distribution paid in Q4 2014 Building Scale Through Strategic Acquisitions 3 Billion of acquisitions with cash flows nearly…
Shell Midstream Partners: Same Strategy, Continued Delivery RESILIENT DIVERSIFIED SUSTAINABLE FRAMEWORK PORTFOLIO GROWTH Strong support from Shell High-quality assets Strong and ratable cash complementing Shells flows Financial…
Size of Scale of Sponsor Creates Investment Opportunity Production Trading & Supply Refining 3.7 MILLION BOE/DAY 8 MILLION BARRELS/DAY 2.9 MILLION BARRELS/DAY Approximately Crude oil traded globally Crude oil refining capacity of…
The United States: Shells Largest Investment Destination The US is clearly our number-one country. -- RDS CEO Ben van Beurden, CNBC Interview, May 2016 Largest country in terms of capital employed Generates more cash flow from…
Capital Employed Q3 2017 Shells Growing US Portfolio 1 18% USA Rest of the World USA Downstream USA Upstream USA Integrated Gas, Inc. NE Capital Investment 2017 YTD Deep Integrated Oil Water Gas Products 37% USA…
Shells Growing US Portfolio: Current and Future Midstream Growth Opportunities Deep Water Oil Products Shales Chemicals Largest US GOM producer Refining: major refineries along Gulf Material discovered and prospective 4 chemical…
Shell has Long-Recognized the Strategic Value from Midstream Assets Producing Refining & End Oil and Gas Processing Users Storage Storage MIDSTREAM VALUE DRIVERS: Increasing Resilience Driving Optimization Generating…
Current and Future Shell Midstream Partners Asset Classes HYDROCARBON TRANSPORT & STORAGE DEEPWATER PRODUCTION HUBS ONSHORE PIPELINE TRANSPORTATION Production Handling Crude and refined products Agreements (PHAs) Largely…
Dynamic Runway of High Quality, Strategic Assets Assets Dropped into SHLX Runway of Potential Assets in RDS Portfolio Q3 2017 Annualized Existing or Under Construction Existing Assets Under Evaluation for the MLP 0.3 Billion NI Up…
Sustaining Growth Through a Diversified Portfolio Mainstream Midstream as Foundation, Capability to Broaden Near-Term Longer-Term ONSHORE & OFFSHORE TRANSPORTATION PIPELINES TERMINALS & STORAGE GATHERING & PROCESSING…
Sustaining Growth Through a Diversified Portfolio Mainstream Midstream as Foundation, Capability to Broaden Near-Term Longer-Term ONSHORE & OFFSHORE TRANSPORTATION PIPELINES TERMINALS & STORAGE GATHERING & PROCESSING…
Sustaining Growth Through a Diversified Portfolio Mainstream Midstream as Foundation, Capability to Broaden Near-Term Longer-Term ONSHORE & OFFSHORE TRANSPORTATION PIPELINES TERMINALS & STORAGE GATHERING & PROCESSING…
A Strong Foundation from the Beginning: IPO November 2014 Portfolio of Assets As of December 31, 2014 Offshore Onshore Ownership % Ownership % Pipelines Pipelines Mars 28.6% Bengal 49.0% Colonial 1.6% Zydeco 43.0% Cash…
Building Scale with High Quality Midstream Assets: 2015 Portfolio of Assets As of December 31, 2015 Offshore Onshore Ownership % Ownership % Pipelines Pipelines Auger 100.0% Bengal 49.0% Mars 28.6% Colonial 3.0% Poseidon 36.0%…
Building Scale with High Quality Midstream Assets: 2016 Portfolio of Assets As of December 31, 2016 Offshore Offshore Ownership % Ownership % Pipelines Pipelines Bengal 50.0% Auger 100.0% Colonial 6.0% Cleopatra 1.0% Explorer…
Building Scale with High Quality Midstream Assets: Today Portfolio of Assets As of September 30, 2017 Offshore Onshore Ownership % Ownership % Pipelines Pipelines Auger 100.0% Bengal 50.0% Colonial 6.0% Cleopatra 1.0% Delta…
Delivering Growth A track record of ratable growth for 3 years Distribution Growth & Coverage 0.3041 0.3180 0.2910 0.2638 0.2770 0.2500 0.2350 0.2200 +96% 0.2050 0.1900 0.1625 0.1750 1.4x 1.3x 1.1x 1.4x 1.1x 1.4x 1.6x 1.4x…
Crude Macro Environment Supports Future Growth LTO Forecasts Reflect Producer Ramp Up Offshore Production on the Rise Anticipated growth could strengthen Zydeco GOM Corridor Strategy delivering results MB/D MB/D 5.0 2.0 +25% 4.0…
Refined Products Macro Environment Supports Future Growth Steady US Refined Product Demand Increase Gulf Coast Concentrated Refining Capacity Colonial serves half of East Coast demand MB/D 20.0 +5% 15.0 EAST COAST MIDWEST…
Chemicals Macro Environment Supports Future Growth Responding to the Polyethylene Demand Shell Pipeline + Shell Pennsylvania Chemicals Project Project competitive advantage: Locally sourced and long-term contracted ethane with…
Shell Midstream Partners: Long-Term Investment Case RDS Integrated Footprint and Continued Investment Long-recognized end-to-end value creation Significant investment in the US with midstream components, fit for the MLP Large and…
Shell Midstream Partners: Long-Term Investment Case RDS Integrated Footprint + Continued Investment Long-recognized end-to-end value creation Significant investment in the US with midstream components fit for the MLP 20% CAGR…
Questions and Answers Shell Midstream Partners November 16, 2017 29
Kevin Nichols VP Commercial Shell Midstream Partners November 16, 2017 30
Deep Dive Roundtables Capturing the Full Value Chain in the Permian Jan Sherman VP Commercial & Land, Shell Unconventionals Optimizing Value through Trading & Supply Odeh Khoury VP Products Americas, Shell Trading & Supply…
Bringing It All Together: Midstream Across the Value Chain Mars Platform Convent Refinery Clovelly St. James Baton Rouge End Users Storage (LOOP) Terminal Mars LOCAP St. James to Bengal Colonial Pipeline Convent Pipeline…
Shell Midstream Partners
Optimizing Value through Trading & Supply Odeh Khoury VP Products Americas, Shell Trading & Supply Shell Midstream Partners
Trading & Supply Within the Shell Group UPSTREAM refers to the ways we find and extract crude oil, DOWNSTREAM refers to the ways we transform them into finished products for sale to retail natural gas and oil sands. and commercial…
Shells Trading & Supply Businesses Fully Integrated with other Businesses within Shell GLOBAL CRUDE GLOBAL PRODUCTS TRADING GAS, POWER AND EMISSIONS LNG TRADING AND SUPPLY AND SUPPLY Regional businesses marketing Global interface…
Shells US Portfolio - Terminals Shell Midstream Partners November 16, 2017 37
US Terminals Strategic and Reliable Strategically Positioned Assets to Support: Integrated supply with Shell refineries Connection to large Shell branded marketing presence Competitively advantaged terminal infrastructure and…
Owning the Major Corridors in the Gulf of Mexico Kevin Nichols VP Commercial, Shell Pipeline Shell Midstream Partners
Gulf of Mexico: Industry Activity Remains Strong IMPROVING ECONOMICS CONTINUED INVESTMENT 37% 3 key FIDs in last 12 months: Shell's Kaikias, BPs Mad Dog 2 and LLOG's Buckskin Drilling efficiency improved Hess' Stampede, Chevron's Big…
Feature: Growth in the Central Gulf of Mexico Amberjack Corridor Strengths 1 Connects Multiple Fields and Platforms 2 Desirable Markets Onshore 3 Anchored by last Appomattox Class platform 4 Provides customers best market…
Gulf of Mexico: Resilience Through the Cycle Improving Economics Increasing Investment Good Prospects Future Opportunities 2.0 1.5 1.0 0.5 Vito Hub Design EIA GOM Projections 2012 2014 2016 2018 Cost reductions…
Capturing the Full Value Chain in the Permian Jan Sherman VP Commercial & Land, Shell Unconventionals Shell Midstream Partners
Shales in the Americas Selectively growing now to maximize for the future Shell Midstream Partners 44
Permian Delaware Basin 260k net acres in basin sweet spot Cost Performance million drill + complete costs /boe unit operating costs (TG) 12 12 -61% -33% 8 8 4 4 0 0 2015 2017 YTD 2015 2017 YTD Production Thousand boe per…
Permian Gas Gathering System Linking to Shells Upstream Footprint Transaction price: 50 million for 50% interest Shell Leasehold Proposed System Map in Crestwood Permian Basin Holdings LLC In-service June 2017 under budget and ahead…
Shell Midstream Partners
RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME Annualized 2017 Based on Based on Q3'17 Actuals (in millions of dollars) YTD 2017 Net income 298.0 Add: Allowance oil reduction to net realizable value - Depreciation, amortization and…
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