Morgan Stanley Utilities, Clean Tech and Midstream Energy Conference February 28, 2018
SMLP Overview
SMLP Overview Summit Midstream Partners, LP (NYSE: SMLP) is a growth- 2 rigs 5 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 4Q 2017 SMU: 8.2 MM (10%) In Service: Segment Adj. 15.2 MM (18%) 31.5 MM (38%) 10.3 MM (12%) 6.1 MM (7%) EBITDA(1) OGC: 12.0 MM (15%) 2Q…
SMLP Investment Considerations 1 Attractive Relative Valuation 13.1% distribution yield vs. 8.4% peer average and 7.9% Alerian MLP Index (1) Strong balance sheet with leverage of 3.62x as of 4Q 2017 Distribution management focus on…
Identified and Contracted Growth Catalysts SMLP has several identified projects that are expected to serve as growth catalysts beginning in 2019 Represents opportunities that are either currently under development or contracted for…
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.…
Open Season for N. Delaware Takeaway Project to Waha Hub Overview Strategic Positioning for Firm Transportation In January 2018, SMLP announced it is holding a non- binding open season for its Double E Pipeline project Provides…
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 agreements 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 Continuing to Develop Utica Position Utica Basin Rigs (February 2018) Historical Utica Volume & Rig Activity Over 250% volume growth since 2015 Rigs on SMLP System Higher rig activity represents catalyst for volume…
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 281 PADs and 584 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: Workovers of older wells and returning wells offline to service 4Q 2016 TOTAL SA Chesapeake…
Utica: Basin Positioning & Outlook Area Positioning Geographic Footprint SMLPs Utica assets span the dry gas, wet gas, and condensate windows Ohio Gathering Rigs in southeastern Ohio Focus Area on SMLP Top tier drilling economics at…
Marcellus: Basin Positioning & Outlook Area Positioning & Strategy Geographic Footprint SMLPs Marcellus assets provide one of two critical high-pressure pipeline inlets to Sherwood, currently offering over 1.0 Bcf/d of delivery…
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% 24 Recently announced growth of SMLPs…
Strong Balance Sheet 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) Dec-17 Cash and Cash…
Deferred Payment Overview Financing the Deferred Payment Overview of Deferred Payment Calculation(1) The Deferred Payment will flex up or down based on the actual Average Business Adjusted EBITDA, net of G&A performance of the 2016…
2018 Financial Guidance Full Year 2018 adj. EBITDA guidance of 285.0 million to 300.0 million Guidance Range FY 2018(1) ( in millions) Low High Adjusted EBITDA (FY 2018) 285.0 300.0 Distribution Coverage 0.95x 1.05x Growth…
Appendix
Reportable Segment Adjusted EBITDA Year ended December 31, (s in 000s) 2017 2016 (1) Reportable segment adjusted EBITDA : Utica Shale 34,011 21,035 (2) Ohio Gathering 41,246 45,602 Williston Basin 66,413 79,475 Piceance/DJ…
Non-GAAP Reconciliations Three Months Ended December 31, Year Ended December 31, (s in 000s) 2017 2016 2017 2016 2015 2014 2013 Net Income (Loss) (18,250) 13,995 86,050 (38,187) (222,228) (47,368) 47,008 Add: Interest expense…
Reconciliation of Net Cash Provided by Operating Activities to DCF Year ended December 31, Variance (s in 000s) 2017 2016 % Distributable Cash Flow: Net Cash provided by operating activities 237,832 230,495 7,337 3% Add: Interest…
4Q 2017 Adjustments Related to MVC Shortfall Payments(1) Three Months Ended December 31, 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) Equity Research Coverage Barclays Capital Capital One Securities, Inc. Citigroup Global Markets Credit Suisse Goldman Sachs Robert W. Baird & Co.…
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