RBC Capital Markets 2018 Midstream Conference November 13-14, 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 15.4% distribution yield vs. 8.5% peer avg. and 8.1% Alerian MLP Index (1) Sustainable distribution with visible adj. EBITDA growth and distribution coverage expansion in…
Focusing Investment in Areas With Attractive Fundamentals Delaware Utica Williston Permian Production (1) Marcellus / Utica Production (1) Williston Production (1) 14 7 45 3.0 1.8 12 6 40 1.6 2.5 35 1.4 10 5 2.0 1.2…
Visible Catalysts Setting Up For Accretive Organic Growth Several identified catalysts are expected to enhance SMLPs growth 175 - 225 million of 2018E Capex(1) profile in beginning in 2019 Represents opportunities that are either…
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 To date, customers primarily focused on…
Expansion Project in DJ Basin Overview Existing Geographic Footprint In 4Q 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 Resources…
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 Double E (the Project) will provide natural gas transportation from various receipt points in the Delaware Basin to the Waha Hub SMLP expects…
Strong Balance Sheet Enables SMLP to Execute Growth Strategy Balance Sheet Provides the Foundation (s in thousands) 12/31/2017 9/30/2018 4.02x 866MM 0.96x Ba3 // BB- Cash and Cash Equivalents 1,430 370 3Q Leverage 3Q Liquidity 3Q…
Utica: Basin Positioning & Outlook Area Positioning Geographic Footprint SMLPs Utica assets span the dry gas, wet gas, and condensate Ohio Gathering Rigs windows 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 the Sherwood Processing complex, currently offering over 1.0…
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 2019 adj. EBITDA expected to be at least 10% higher compared to 2018 Guidance Range FY 2018(1) ( in millions) Low High Adjusted EBITDA (FY 2018) 285.0 300.0 Distribution Coverage Approximately 1.00x…
Appendix
Areas of Operation (Under Construction) 25
Organizational Structure 100% Summit Midstream Partners, LLC 8.1% 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…
Attractive Relative Valuation SMLP Publicly Traded Comps ( in millions, except per unit values) Partnership / Com pany Inform ation Credit Statistics Distribution TEV / EBITDA 2019E (3) Unit Market Net Preferred GP Int. (1) Cont. Liab.…
Reportable Segment Adjusted EBITDA Three Months Ended September 30, Nine Months Ended September 30, (s in 000s) 2018 2017 2018 2017 Reportable segment adjusted EBITDA(1): Utica Shale 6,521 8,412 24,459 25,857 Ohio Gathering(2) 10,171…
Reconciliation of Net Income or Loss to adj. EBITDA and DCF Three Months Ended September 30, Nine Months Ended September 30, (s in 000s) 2018 2017 2018 2017 Net income 57,455 93,637 3,697 104,300 Add: Interest expense 14,862 17,614…
Reconciliation of Net Cash Provided by Operating Activities to adj. EBITDA and DCF Nine Months Ended September 30, Variance (s in 000s) 2018 2017 % Distributable Cash Flow: Net Cash provided by operating activities 166,492 196,497…
Adjustments Related to MVC Shortfall Payments(1) Three Months Ended September 30, 2018 MVC Gathering Adjustments to MVC Net Impact to (s in 000s) Billings Revenue Shortfall Payments Adjusted EBITDA Net change in deferred revenue…
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 RBC Capital Markets…
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