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2017 Wells Fargo Pipeline MLP and Utility Symposium – Summit Midstream Partners, Lp

Summit Midstream Partners, Lp · Dec 6, 2017 · 33 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. 2017 Wells Fargo Pipeline MLP and Utility Symposium – Summit Midstream Partners, Lp – slide 1
    2017 Wells Fargo Pipeline, MLP and Utility Symposium December 6 - 7, 2017
  2. 2017 Wells Fargo Pipeline MLP and Utility Symposium – Summit Midstream Partners, Lp – slide 2
    SMLP Overview
  3. 2017 Wells Fargo Pipeline MLP and Utility Symposium – Summit Midstream Partners, Lp – slide 3
    SMLP Overview Summit Midstream Partners, LP (NYSE: SMLP) is a growth- 2 rigs 3 rigs oriented independent natural gas, crude oil and produced 1 rig water gathering and processing company with diversified operations across seven resource…
  4. 2017 Wells Fargo Pipeline MLP and Utility Symposium – Summit Midstream Partners, Lp – slide 4
    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…
  5. 2017 Wells Fargo Pipeline MLP and Utility Symposium – Summit Midstream Partners, Lp – slide 5
    SMLP Investment Considerations 1 Attractive Relative Valuation 11.8% 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…
  6. 2017 Wells Fargo Pipeline MLP and Utility Symposium – Summit Midstream Partners, Lp – slide 6
    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.…
  7. 2017 Wells Fargo Pipeline MLP and Utility Symposium – Summit Midstream Partners, Lp – slide 7
    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…
  8. 2017 Wells Fargo Pipeline MLP and Utility Symposium – Summit Midstream Partners, Lp – slide 8
    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…
  9. 2017 Wells Fargo Pipeline MLP and Utility Symposium – Summit Midstream Partners, Lp – slide 9
    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…
  10. 2017 Wells Fargo Pipeline MLP and Utility Symposium – Summit Midstream Partners, Lp – slide 10
    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…
  11. 2017 Wells Fargo Pipeline MLP and Utility Symposium – Summit Midstream Partners, Lp – slide 11
    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…
  12. 2017 Wells Fargo Pipeline MLP and Utility Symposium – Summit Midstream Partners, Lp – slide 12
    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…
  13. 2017 Wells Fargo Pipeline MLP and Utility Symposium – Summit Midstream Partners, Lp – slide 13
    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…
  14. 2017 Wells Fargo Pipeline MLP and Utility Symposium – Summit Midstream Partners, Lp – slide 14
    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…
  15. 2017 Wells Fargo Pipeline MLP and Utility Symposium – Summit Midstream Partners, Lp – slide 15
    Downside Protection Through Long-Term Contracts with MVCs Piceance/DJ Barnett Williston Marcellus Utica Wtd. Avg. / Basins Shale Basin Shale Shale Total Acreage Dedication (net acres) 840,000 120,000 1,300,000 n/a 910,000(4) 3,150,000…
  16. 2017 Wells Fargo Pipeline MLP and Utility Symposium – Summit Midstream Partners, Lp – slide 16
    SMLP Segment Overview
  17. 2017 Wells Fargo Pipeline MLP and Utility Symposium – Summit Midstream Partners, Lp – slide 17
    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…
  18. 2017 Wells Fargo Pipeline MLP and Utility Symposium – Summit Midstream Partners, Lp – slide 18
    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…
  19. 2017 Wells Fargo Pipeline MLP and Utility Symposium – Summit Midstream Partners, Lp – slide 19
    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…
  20. 2017 Wells Fargo Pipeline MLP and Utility Symposium – Summit Midstream Partners, Lp – slide 20
    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…
  21. 2017 Wells Fargo Pipeline MLP and Utility Symposium – Summit Midstream Partners, Lp – slide 21
    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…
  22. 2017 Wells Fargo Pipeline MLP and Utility Symposium – Summit Midstream Partners, Lp – slide 22
    SMLP Financial Overview
  23. 2017 Wells Fargo Pipeline MLP and Utility Symposium – Summit Midstream Partners, Lp – slide 23
    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…
  24. 2017 Wells Fargo Pipeline MLP and Utility Symposium – Summit Midstream Partners, Lp – slide 24
    Historical Operating and Cash Flow Statistics Volume Gathered(1) Capital Expenditures(2) MMcf/d Mbbl/d MM 1,744 89 100 1,000 879 1,499 1,528 1,600 1,423 75 80 800 1,139 68 1,200 60 600 41 358 800 40 400 250 174 400 11 20 200…
  25. 2017 Wells Fargo Pipeline MLP and Utility Symposium – Summit Midstream Partners, Lp – slide 25
    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…
  26. 2017 Wells Fargo Pipeline MLP and Utility Symposium – Summit Midstream Partners, Lp – slide 26
    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…
  27. 2017 Wells Fargo Pipeline MLP and Utility Symposium – Summit Midstream Partners, Lp – slide 27
    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…
  28. 2017 Wells Fargo Pipeline MLP and Utility Symposium – Summit Midstream Partners, Lp – slide 28
    Appendix
  29. 2017 Wells Fargo Pipeline MLP and Utility Symposium – Summit Midstream Partners, Lp – slide 29
    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…
  30. 2017 Wells Fargo Pipeline MLP and Utility Symposium – Summit Midstream Partners, Lp – slide 30
    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…
  31. 2017 Wells Fargo Pipeline MLP and Utility Symposium – Summit Midstream Partners, Lp – slide 31
    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:…
  32. 2017 Wells Fargo Pipeline MLP and Utility Symposium – Summit Midstream Partners, Lp – slide 32
    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…
  33. 2017 Wells Fargo Pipeline MLP and Utility Symposium – Summit Midstream Partners, Lp – slide 33
    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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