PEOPLE PROCESS TECHNOLOGY Fourth Quarter 2017 Update and 2018 Outlook February 14, 2018 Earnings Call
PEOPLE PROCESS TECHNOLOGY 2017 Highlights and Execution 3
Delivered on 2017 commitments STRONG EXECUTION ON 2017 COMMITMENTS Delivered strong DCF above guidance 2017 results midpoint DCP 2020 Distribution Distribution coverage coverage and exceeded 1.0x leverage better Leverage well…
2017 Financial Results DELIVERED STRONG 2017 RESULTS WITH DCF ABOVE GUIDANCE MIDPOINT Delivered strong Q4 and YTD 2017 results Delivered strong Adjusted EBITDA 280 million in Q4 and 1,017 million YTD 2017 2017 results DCF 176 million…
Delivering on Financial Priorities Generated 643 DCF, above 2017 Actual guidance midpoint 1 Bank leverage 3.0-4.0x 3.7x AMPLE LIQUIDITY AND FINANCIAL FLEXIBILITY About 1.6 billion of liquidity as of December 31, 2017 1.4…
PEOPLE PROCESS TECHNOLOGY 2018 Guidance and Outlook 7
2018 Guidance 2018 Guidance ( in Millions) 2018 Assumptions Adjusted EBITDA(1) 1,045-1,135 Higher Sand Hills volumes, earnings and distributions associated with expansions placed in service Distributable Cash Flow (DCF) (1)(2)…
2017 to 2018 DCF Guidance Drivers GROWTH, PRICE AND EFFICIENCIES OFFSETTING UPSIDE POTENTIAL TO FORECAST DISCOVERY AND INCREASED FINANCING COSTS Additional MM volumes 670+ Ethane recovery 30-40 Accelerating DCP 2.0 Growth…
Disciplined and Strategic Growth Outlook Executing strategic, lower risk growth projects at 5-7x multiples with line of sight to fast volume ramp and fee-based earnings growth Expanding integrated DJ Basin footprint one of the top…
2018 Segment Adjusted EBITDA % FY2018 ADJUSTED EBITDA BY REGION FY2017 (2017 AND 2018 GUIDANCE) FY2011* Gathering and 45% Continued growth in Processing 10% 40% fee-based earnings 90% Logistics 60% and 55% Marketing 2018E…
PEOPLE PROCESS TECHNOLOGY DCP 2.0 Transformation 13
DCP 2.0 Journey Leadership & Genesis & Vision Transformation Innovation The initial conceptualization Achieve operational excellence through Industry leader and disruptor of DCP 2.0 and digital with the people, processes,…
DCP 2.0 at Work Integrated Collaboration Center (ICC) the operations of the future Business Solutions ICC ties multiple data sources, including SCADA, Energy Lab rapidly develops digital solutions, including engineering data,…
DCP 2.0 Driving Strong Return on Investment Driving stronger margins, lower costs, better reliability 20MM Potential Incremental for additional EBITDA benefit upside One year 40MM payback EBITDA benefit 20-25MM DCP 2.0…
DCP 2.0 Driving Strong Return on Investment Delivered strong 2017 results and Strong capital discipline credit metrics extending integrated value chain Adjusted EBITDA 1.017B and fee-based earnings DCF 643MM DJ Basin plants…
PEOPLE PROCESS TECHNOLOGY DCP Midstream Appendix: Financial and Other Supporting Slides 18
2018 Gross Margin, Sensitivities and Hedges Investments in fee-based growth coupled with multi-year hedging program provides downside protection on commodity exposed margin 2018 Gross Margin 2018e Commodity Sensitivities Before…
Margin by Segment* MARGIN/EQUITY EARNINGS BY SEGMENT ** MM, except per unit measures Q4 2017 Q3 2017 Q2 2017 Q1 2017 Q4 2016 Gathering & Processing (G&P) Segment Natural gas wellhead - Bcf/d 4.60 4.46 4.48 4.58 4.81 (1) Segment…
Q3 to Q4 2017 Adjusted EBITDA and DCF Q4 delivered another strong quarter with higher commodity prices and strong asset performance (MM) Consolidated Adjusted EBITDA Distributable Cash Flow G&P Adjusted EBITDA Logistics and…
Q4 2017 Volume Trend G&P Volume Trends and Utilization Q4'17 Q4'16 Q3'17 Q4'17 Q4'17 Q4'17 Continued volume Net Plant/ Average Average Average growth in key regions Treater Wellhead Wellhead Wellhead Average NGL Capacity Volumes…
Liquidity and Financial Flexibility Reduced leverage to 3.7x as of December 31, 2017 Expecting no common equity needs in 2018 Focused on Delevering 3.7x bank facility leverage ratio(1) as of December 31, 2017 o Improved leverage…
Disciplined Capital Projects Extending Permian value chain with Expanding premier integrated DJ Basin fee-based Logistics projects position by 50% to 1.2 Bcf/d in 2019 Integrated Permian Footprint 200 MMcf/d Mewbourn 3 under…
Gathering and Processing Overview North Assets Permian Assets Midcontinent Assets South Assets Asset type Fractionator & Plant Natural Gas Plant NGL Pipeline Natural Gas Pipeline DJ Basin Permian SCOOP/STACK Eagle Ford 9…
Strong Producer Customers in Key Basins DJ Basin (North) Midcontinent Permian South Volume and margin portfolio supported by long term agreements with diverse high quality producers in key producing regions 26
Logistics and Marketing Overview DCP Logistics Assets Approx. System Approx. Gross Throughput Net Pipeline Length Capacity Capacity Pipeline % Owned (Miles) (MBbls/d) (MBbls/d)(1) Sand Hills 66.7% 1,300 340(2) 227 Southern…
NGL Pipeline Customers Customer centric NGL pipeline takeaway providing open access to premier demand markets along the Gulf Coast and at Mont Belvieu Legend: Southern Hills DCP operated Connects to 2.9 Bcf/d Third party operated…
Commodity Derivative Activity Three Months Ended Twelve Months Ended December 31, December 31, ( in millions) 2017 2016(1) 2017 2016(1) Gathering & Processing Segment: Non-cash unrealized losses (20) (46) (24) (119) Logistics &…
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