Bank of America Merrill Lynch 2017 Leveraged Finance Conference November 29, 2017
SMLP Overview Summit Midstream Partners, LP (NYSE: SMLP) is a growth- 3 rigs 4 rigs oriented independent natural gas, crude oil and produced 1 rig water gathering and processing company with diversified operations across seven resource…
Diversified Operating Footprint Utica Williston Piceance / DJ Barnett Marcellus N. Delaware 3Q 2017 SMU: 8.4 MM (10%) In Service: Segment Adj. 16.2 MM (20%) 30.0 MM (36%) 10.8 MM (13%) 6.7 MM (8%) EBITDA(1) OGC: 10.5 MM (13%) 2Q…
SMLP Investment Considerations 1 Attractive Relative Valuation 12.0% distribution yield vs. 8.7% peer average and 8.1% Alerian MLP Index (1) Strong balance sheet with pro forma leverage of 3.22x as of 3Q 2017 Measured distribution…
Greenfield Development Project in Growing N. Delaware Overview Strategically Positioned Initial Development Footprint In July 2017, SMLP announced a new associated gas (Under Construction) gathering and processing project in the N.…
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…
Expansion Project in DJ Basin Overview Existing Geographic Footprint In November 2017, SMLP announced plans to develop, own and operate a new 60 MMcf/d cryogenic processing plant in the DJ Basin Long-term, fee-based agreement with…
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 (November 2017) Historical Utica Volume & Rig Activity Over 250% volume growth since 2015 Rigs on SMLP System Higher rig activity represents catalyst for…
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 280 PADs and 578 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 1Q 2016 GH America Beacon E&P Immediate: Re-completions of older wells, workovers 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…
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…
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 1.3 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…
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 350 329 330 6% 7% 300 263 Segm ent Adjusted EBITDA…
Strong Balance Sheet Enables SMLP to Execute Growth Strategy SMLP Balance Sheet Provides the Foundation Well-Capitalized with Sponsor Support (1) (s in millions) PF Sep-17 Targeting long-term leverage ratio of 3.5x 4.0x Cash and Cash…
Financing the Deferred Payment The primary benefit of the 2016 Drop Down transaction is that the structure provides SMLP time to pick its spots to raise capital and pre-fund the Deferred Payment due in 2020 Structure affords SMLP…
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…
Appendix
Reportable Segment Adjusted EBITDA Nine months ended September 30, (s in 000s) 2017 2016 (1) Reportable segment adjusted EBITDA : Utica Shale 25,857 14,898 (2) Ohio Gathering 29,201 35,173 Williston Basin 51,176 60,745…
Non-GAAP Reconciliations Nine Months Ended September 30, Year Ended December 31, (s in 000s) 2017 2016 2016 2015 2014 2013 Net Income (Loss) 104,300 (52,182) (38,187) (222,228) (47,368) 47,008 Add: Interest expense 51,883 47,650…
Reconciliation of Net Cash Provided by Operating Activities to DCF Nine months ended September 30, Variance (s in 000s) 2017 2016 % Distributable Cash Flow: Net Cash provided by operating activities 196,497 168,705 27,792 16% Add:…
3Q 2017 Adjustments Related to MVC Shortfall Payments (1) Three Months Ended September 30, 2017 MVC Gathering Adjustments to MVC Net Impact to (s in 000s) Billings Revenue Shortfall Payments Adjusted EBITDA Net change in deferred…
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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