SunTrust Robinson Humphrey - 2018 Midstream Summit May 10, 2018
SMLP Overview
SMLP Overview Summit Midstream Partners, LP (NYSE: SMLP) is a growth-oriented independent natural gas, crude oil and produced water gathering and processing company with diversified operations across seven resource plays in the…
SMLP Investment Considerations 1 Attractive Relative Valuation 15.9% distribution yield vs. 8.8% peer avg. and 8.1% Alerian MLP Index (1) Sustainable distribution with visible near-term adj. EBITDA growth and distribution coverage…
Attractive Relative Valuation SMLP investors are positioned for compelling total Illustrative Total Return Potential return potential NTM Adjusted EBITDA of 293MM represents the midpoint of SMLPs 2018 guidance NTM Adjusted EBITDA of…
Focusing Investment in Areas With Attractive Fundamentals Delaware Utica Williston Permian Production (1) Marcellus / Utica Production (1) Williston Production (1) Natural Gas: +6.5 Bcf/d Natural Gas: +14.5 Bcf/d Crude Oil: +0.5…
Visible Catalysts Setting Up For Accretive Organic Growth SMLP has several identified projects that are expected to serve as 175 - 225 million of 2018E Capex(1) growth catalysts beginning in 2019 Represents opportunities that are…
Increasing Utilization of the Summit Midstream Utica System In-Fill Drilling Opportunity Overview Summit Midstream Utica Footprint Since 2014, SMLP has been developing its SMU gathering footprint Historically, SMUs customers have not…
Expansion Project in DJ Basin Overview Existing Geographic Footprint In November 2017, SMLP announced plans to build a new 60 MMcf/d cryogenic gas processing plant in the DJ Basin Long-term, fee-based agreements with HighPoint…
Greenfield Development Project in Growing N. Delaware Overview Strategically Positioned Initial Development Footprint SMLP is developing new associated natural gas gathering (Under Construction) and processing infrastructure in the N.…
Double E Project Update Project Overview Strategically Located Firm Transportation In January 2018, SMLP announced a non-binding open season for its proposed Double E Pipeline project (the Project) Double E will provide natural gas…
Strong Balance Sheet Enables SMLP to Execute Growth Strategy Balance Sheet Provides the Foundation De-Levering Balance Sheet (s in millions) 12/31/2016 12/31/2017 3/31/2018 3.63x 952MM 0.98x Ba3 // BB- Cash and Cash Equivalents 7 1 3…
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% 7% 300 Recently announced growth of SMLPs…
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
Areas of Operation N. (Under Construction) 26
Organizational Structure 100% Summit Midstream Partners, LLC 7.9% Common (Summit Investments) LP Interest(1) 100% Summit Midstream Partners Holdings, LLC (SMP Holdings) Public Unit Holders 2.0% GP Interest / IDRs…
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 Avg. 2018 & 2019 Business Adj. EBITDA performance of the 2016 Drop Down…
Non-GAAP Reconciliations Three Months Ended March 31, (s in 000s) 2018 2017 Net loss (3,845) (583) Add: Interest expense 15,122 16,716 Income tax (benefit) expense (171) 452 (1) Depreciation and amortization 26,526 28,418…
Reconciliation of Net Cash Provided by Operating Activities to DCF Three months ended March 31, Variance (s in 000s) 2018 2017 % Distributable Cash Flow: Net Cash provided by operating activities 51,210 62,449 (11,239) (18% ) Add:…
Adjustments Related to MVC Shortfall Payments(1) Three Months Ended March 31, 2018 MVC Gathering Adjustments to MVC Net Impact to (s in 000s) Billings Revenue Shortfall Payments Adjusted EBITDA Net change in deferred revenue related…
Research Coverage / Contact Information Summit Midstream Partners, LP (NYSE: SMLP) Equity Research Coverage Barclays Capital Capital One Securities, Inc. Citigroup Global Markets Deutsche Bank Goldman Sachs RBC Capital Markets…
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