Analyst & Investor Meeting Pittsburgh, Pennsylvania March 13, 2018
Agenda Strategic Overview Nick DeIuliis, Chief Executive Officer Operations Tim Dugan, Chief Operating Officer Joe Fink, VP Operations & Optimization Adam Beck, VP Engineering & Construction Finance Don Rush, Chief Financial…
Strategic Overview Nick DeIuliis
CNXM Built for Long-horizon Sustainable Distribution Growth Key drivers of the strategy: World-class midstream systems for world-class reservoirs Support from highly-incentivized sponsor Long-term and low-risk growth becomes…
Midstream Amplifies Asset Bases Value Creation Opportunity Highly accretive midstream investment opportunity from servicing stacked pay E&P development Sponsorship and integrated development plan reduces investment risk and extends…
CNX Midstream Overview Premier MLP with Completely Aligned Sponsorship First 73 Days under CNX Management NYSE: CNX 100% Day 1: - New management, matching CNX Resources, and board appointments CNX Gathering LLC - Amended Gas…
Five-Year Baseline Distributable Cash Flow Outlook Baseline Assumptions 300 2-3 CNX rigs on DevCo I acreage (SWPA Central) Organic growth driving baseline 15% 250 distribution growth target No HG development activity No drop downs…
Strong Inventory of Sponsor Driven Growth Opportunities Drop-Down Candidates Opportunity Highlights Announced agreement to acquire CNXs 95% interest in the Shirley-Pennsboro gathering Shirley-Pennsboro system for 265 million…
Strong Baseline for Organic Growth with Upside from Drops Baseline EBITDA Baseline Growth Outlook 300 250 Execution of organic growth capital projects in DevCo I in millions 200 No drop downs after Shirley-Pennsboro 150 No…
Operations Tim Dugan Joe Fink Adam Beck
High Quality Infrastructure Built to Support Integrated Development Plan DevCo I DevCo II DevCo III 100% LP interest 5% LP interest 5% LP interest Throughput Underlying Incubator for includes: upstream assets Shirley-Penns Wet and…
Overview of CNXM Infrastructure DevCo I DevCo II DevCo III Anchor systems Shirley-Pennsboro Growth systems Additional systems Wadestown Total GP interest 100% 100%(1) 5% 5%(1) 5% Pipeline (miles) 177 17 31 35 -- 260 Average throughput…
HG Energy II: All Potential Upside to Our Base Operating Plan Benefits to CNXM CNXM business plan does not rely on additional HG Energy II activity HG Energy II volumes provide stable PDP revenue base HG Energy II development in DevCo…
Capital Investment Outlook 5-Year Outlook on Growth Capital Programs(1) Organic Growth Highlights Project backlog of 1 billion from 2018E-2022E DevCo1 - 750mm in 100% owned DevCo I, CNXMs primary 77% growth driver DevCo3 748…
Commercial Agreement Supports Distribution Growth SWPA 5-Year Growth Capital by Project Type Capital Spend 5-Year Outlook De-risked capital spending from 2018E-2022E Well Connect Pipeline - Penalty payment by shipper for failure to…
Flexible Midstream System for Stacked Pay and Processing Optionality System Design Highlights Well Pad Compressor Station Previous governance arrangement prevented optimal commercial and engineering design New gathering agreement:…
McQuay Area System Expansion 5-Year Investment Outlook 3 new interconnects/outlets - Two at 1.2 Bcf/d each with Texas Eastern (McQuay, Richhill) - One at 600 MMcf/d with Leach Express (Dry Ridge) Four new compressor stations (Dry…
Wadestown Area Buildout 5-Year Investment Outlook Wadestown metering and regulation facility New 1.2 Bcfd Dominion interconnect Wadestown compressor station Total buildout horsepower 42,750 39 miles of new pipelines Expected…
SWPA: System and Market Flexibility Midstream infrastructure: - Located in SWPA Core of the Core for Appalachian Basin - Interconnects to TETCO and NFG System build out allows for Marcellus and Utica to be developed in series or in…
Central PA: Infancy of Utica Play Early stages to delineation and development of the Utica Play Three of the top deep dry Utica wells flowing through CNXM Gaut 4I, Aiken 5J & 5M Future infrastructure expansion required for large…
Established the Finance Platform Pro Forma Capitalization Note offering and revolver expansion de-risks the ( in millions) 12/31/2017 x EBITDA Adj. Pro forma x EBITDA business plan Cash 3 3 - Eliminates capital market needs for…
CNXM IDR Position 45% IDR % of Total Distributions at Restructuring(1) 40% GP IDRs as % of Total Distributions 42 % 35% 36 % 30% 33 % 35 % 25% 32 % 20% 32 % 15% 32 % 31 % 10% 29 % 5% 22 % 0% 2018E 2019E 2020E…
Amended Commercial Agreement with CNX Utica Dedication: Significant incremental resource Minimum well commitments: fundamental positive change to underlying CNXMs footprint (300 locations at +3.5 CNXMs risk profile Bcfe/1000) - Puts…
Shirley-Pennsboro Drop announced on Feb 7, 2018 and expected close 1Q18 Asset Overview Well-capitalized wet gas gathering system in West Virginia 90 million of invested capital to date High Btu and NGL yielding gas Pennsboro - Gas…
Strong Inventory of Sponsor Driven Growth Opportunities Drop-Down Candidates Opportunity Highlights Announced agreement to acquire CNXs 95% interest in the Shirley-Pennsboro gathering Shirley-Pennsboro system for 265 million…
Liquidity and Acquisition Capacity Undrawn Revolving Credit Facility Incremental Debt Capacity to Acquire at 3.0x Leverage Level MM MM 600 3,500 3,063 3,000 500 2,500 in millions in millions 400 2,000 1,778 300 1,500…
Single-Sponsor Structure and Recent Changes De-Risk Long-Term Distribution Growth Key drivers of the strategy: World-class midstream systems for world-class reservoirs Support from highly-incentivized sponsor Long-term and…
Appendix
Strong Record of Growth Since IPO Q4 2017 Q4 2014 Change Change % Net volumes (Bbtu/d) 961 545 416 76% Net income ( in millions) 27.0 15.3 11.7 76% EBITDA ( in millions) 32.4 16.6 15.8 95% DCF ( in millions) 27.7 14.8 12.9 87%…
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