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3Q 2018 Earnings Presentation – Semgroup Corporation

Semgroup Corporation · Nov 26, 2018 · 41 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. 3Q 2018 Earnings Presentation – Semgroup Corporation – slide 1
    November 2018 Investor Presentation Third Quarter 2018 Results
  2. 3Q 2018 Earnings Presentation – Semgroup Corporation – slide 2
    Diversified Operations Across Midstream Value Chain CANADA Unique platform in liquids-rich Montney and Duvernay 4 natural gas processing plants 600 miles natural gas gathering pipelines 200 mmcf/d Wapiti Gas Plant under…
  3. 3Q 2018 Earnings Presentation – Semgroup Corporation – slide 3
    Why Invest in SemGroup Reliable Business Model Provides Highly Predictable Cash Flows Stable Secure Cash Investment Grade Business Flows Customers 98% 60% 70% Fee Based Take-or-Pay of revenue 18% 1.4x Adjusted EBITDA CAGR…
  4. 3Q 2018 Earnings Presentation – Semgroup Corporation – slide 4
    Driving Shareholder Value Delivering Transforming Executing Shareholder Portfolio Opportunities Value 2018 Execution as Promised: 1st Quarter Executed preferred equity raise Completed sale of SemMaterials Mexico 2nd Quarter…
  5. 3Q 2018 Earnings Presentation – Semgroup Corporation – slide 5
    Continued Execution of Strategic Transformation Focused on Strengthening Balance Sheet and Completing High-Return Projects Secure Cash Flows Drive Quality Earnings Nearly 60% of gross margin supported by take-or-pay contracts 3Q…
  6. 3Q 2018 Earnings Presentation – Semgroup Corporation – slide 6
    Canada SemCAMS 8
  7. 3Q 2018 Earnings Presentation – Semgroup Corporation – slide 7
    SemCAMS Natural Gas Business SemCAMS Areas of Operations Average Throughput Volume(1) (mmcf/d) 414 414 452 441 434 349 382 (2) (3) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2017 2018 600 miles of transport and gathering pipelines Strong…
  8. 3Q 2018 Earnings Presentation – Semgroup Corporation – slide 8
    Dominant Footprint in Heart of Montney & Duvernay Liquids rich; high percentages of condensate & NGLs Condensate & NGLs command higher prices Horizontal drilling has unlocked potential by reducing drilling cost Pipestone Pipeline…
  9. 3Q 2018 Earnings Presentation – Semgroup Corporation – slide 9
    Canada: SemCAMS - Gas Plant Projects Producer activity driven by condensate demand Wapiti Plant - Montney 200 mmcf/d sour gas processing plant Supported by 120 mmcf/d, 15-year contract Project cost USD 225 - 250 million 6x EBITDA…
  10. 3Q 2018 Earnings Presentation – Semgroup Corporation – slide 10
    Canada: SemCAMS Pipestone Growth Projects Pipestone Pipeline System Construction commenced, deliver gas to our Wapiti gas plant for processing Supported by 15-year contract Project cost USD 40 million 7x EBITDA multiple Plant…
  11. 3Q 2018 Earnings Presentation – Semgroup Corporation – slide 11
    Canada: Proposed Montney to Market Pipeline Growth Continues in the Condensate Rich Montney Montney to Market Pipeline (M2M) Joint Open Season announced August 2018 with Plains Midstream Canada Proposed project includes utilizing…
  12. 3Q 2018 Earnings Presentation – Semgroup Corporation – slide 12
    Mid-Continent Gas 14
  13. 3Q 2018 Earnings Presentation – Semgroup Corporation – slide 13
    SemGas Natural Gas Business SemGas Areas of Operation Northern OK Avg Processing Volumes(1) (mmcf/d) 367 395 287 277 265 305 252 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2017 2018 Located in liquids rich oil plays Four processing…
  14. 3Q 2018 Earnings Presentation – Semgroup Corporation – slide 14
    Mid-Continent Crude & Liquids 16
  15. 3Q 2018 Earnings Presentation – Semgroup Corporation – slide 15
    Crude Business Overview DJ Basin White Cliffs Pipeline - 51% ownership DJ Basin to Cushing, OK Two 527-mile, 12-inch pipelines 215,000 bpd current capacity Currently ships two crude types DJ Basin crude/condensate Kansas common…
  16. 3Q 2018 Earnings Presentation – Semgroup Corporation – slide 16
    Crude Business Overview Oklahoma/Kansas Assets Field Services Cushing Storage Crude Oil Trucking Fleet 7.6 million barrels of storage Fleet of 230 crude oil transport trucks and trailers Connectivity to all major inbound/outbound…
  17. 3Q 2018 Earnings Presentation – Semgroup Corporation – slide 17
    Mid-Continent: DJ Basin NGL Take-Away Solution Long-Term Contract with DCP Midstream White Cliffs Pipeline NGL Conversion Diversify one 12 pipeline to NGL service Supported by 50,000 bpd, 10-year contract with DCP Transport NGLs from…
  18. 3Q 2018 Earnings Presentation – Semgroup Corporation – slide 18
    Gulf Coast HFOTCO 20
  19. 3Q 2018 Earnings Presentation – Semgroup Corporation – slide 19
    Unique Position on the Houston Ship Channel Ship & Barge Docks Land Five ship docks which can receive up to Suez-max vessels 330 acres of waterfront land on the Houston Ship Channel with 45-foot draft 12 acres of undeveloped land at…
  20. 3Q 2018 Earnings Presentation – Semgroup Corporation – slide 20
    HFOTCO: Strategic Gulf Coast Position Drives Growth Houston Fuel Oil Terminal 1.45 million barrels of new crude storage Ship Dock 5 Backstopped by investment-grade refiner, 10-year contract Strong connectivity to Gulf Coast refining…
  21. 3Q 2018 Earnings Presentation – Semgroup Corporation – slide 21
    Strong Connectivity to the Houston Refinery Complex Connects directly or indirectly to crude pipelines serving the Eagle Ford, Permian, Bakken, Midcontinent and Canada 23
  22. 3Q 2018 Earnings Presentation – Semgroup Corporation – slide 22
    HFOTCO Terminal and Customers HFOTCO terminal currently services nearly 30 active customers Current storage demand exceeds available tankage Average customer tenure 15 years, illustrating operational flexibility and customer service…
  23. 3Q 2018 Earnings Presentation – Semgroup Corporation – slide 23
    HFOTCO, Moore Road Pipeline Connectivity Project Improves our access to various long-haul, inbound delivery systems while adding outbound pipeline connectivity Moore Road Pipeline Construct 36 inch, 6.4 mile pipeline Project Cost 65…
  24. 3Q 2018 Earnings Presentation – Semgroup Corporation – slide 24
    Gulf Coast Maurepas Pipeline 26
  25. 3Q 2018 Earnings Presentation – Semgroup Corporation – slide 25
    Maurepas Pipeline U.S. Gulf Coast Maurepas Pipeline 24-inch, 35 mile crude oil pipeline connected to LOCAP at St. James and terminating at Norco refinery 12-inch, 35 1/2 mile intermediates pipeline between Convent and Norco…
  26. 3Q 2018 Earnings Presentation – Semgroup Corporation – slide 26
    Financials 28
  27. 3Q 2018 Earnings Presentation – Semgroup Corporation – slide 27
    Third Quarter 2018 Results 1Q18 2Q18 3Q18 YTD ( in millions, except per share) Net Income (loss) (33.0) (2.7) 8.4 (27.3) Adjusted EBITDA 93.4 99.0 96.4 288.8 Cash Available for Dividends 51.3 50.6 50.8 152.7 Common Dividend…
  28. 3Q 2018 Earnings Presentation – Semgroup Corporation – slide 28
    Segment Profit 1Q18 2Q18 3Q18 YTD ( in millions) Crude Transportation 34.3 37.9 38.1 110.3 Crude Facilities 9.3 9.7 8.2 27.2 Crude Supply and Logistics (6.6) (2.0) (7.0) (15.6) HFOTCO 31.0 34.8 36.2 102.0 SemGas 14.3 15.4 19.8…
  29. 3Q 2018 Earnings Presentation – Semgroup Corporation – slide 29
    Leverage and Liquidity 9/30/2018 ( in millions, unaudited) SemGroup (B2 / B+) Pro Forma metrics reflect Maurepas sale Pro Forma Revolving Credit Facility - 1.0 Billion due 2021 110 proceeds of 350 million received 5.625% Senior…
  30. 3Q 2018 Earnings Presentation – Semgroup Corporation – slide 30
    Appendix 32
  31. 3Q 2018 Earnings Presentation – Semgroup Corporation – slide 31
    Narrowing 2018 Adjusted EBITDA Guidance Continuing Portfolio Transformation through 2018 for Long-Term Financial Strength 8% ( in millions) of 1 2018 Adjusted EBITDA 385 - 400 R AG 8C 201 385 - 400 - 2 016 Key Guidance…
  32. 3Q 2018 Earnings Presentation – Semgroup Corporation – slide 32
    Updated 2018 Capital Expenditures Guidance 2018 Capex Guidance - 360 million Total Capital Expenditures Spending by Strategic Area 492 ( in millions) 360 307 447 Canada 203 50 255 320 Mid-Continent 56% 14% Gulf Coast 52…
  33. 3Q 2018 Earnings Presentation – Semgroup Corporation – slide 33
    Company Strengths Stable Cash Flows Counterparty Strength(2) 98% of total LTM gross margin from 70% of SemGroup's pro forma revenue is derived from fee-based cash flows investment grade counterparties 5% 2% 13% 11% 11% 41%…
  34. 3Q 2018 Earnings Presentation – Semgroup Corporation – slide 34
    Consolidated Balance Sheets (in thousands, unaudited, condensed) September 30, December 31, 2018 2017 ASSETS Current assets 801,099 902,899 Property, plant and equipment, net 3,450,756 3,315,131 Goodwill and other intangible assets…
  35. 3Q 2018 Earnings Presentation – Semgroup Corporation – slide 35
    Consolidated Statements of Operations and Comprehensive Income (Loss) (in thousands, except per share amounts, unaudited, condensed) 2018 2017 Q1 Q2 Q3 YTD Q1 Q2 Q3 Q4 FY2017 Revenues 661,609 595,794 633,996 1,891,399 456,100 473,089…
  36. 3Q 2018 Earnings Presentation – Semgroup Corporation – slide 36
    Non-GAAP Adjusted EBITDA Calculation (in thousands, unaudited) 2018 2017 Reconciliation of net income to Adjusted EBITDA: Q1 Q2 Q3 YTD Q1 Q2 Q3 Q4 FY2017 Net income (loss) (33,035) (2,726) 8,461 (27,300) (10,277) 9,611 (19,103) 2,619…
  37. 3Q 2018 Earnings Presentation – Semgroup Corporation – slide 37
    Segment Profit and Adjusted EBITDA (in thousands, unaudited) 2018 2017 Segment Profit: Q1 Q2 Q3 YTD Q1 Q2 Q3 Q4 FY2017 Crude Transportation 34,310 37,865 38,135 110,310 28,251 29,028 34,585 41,641 133,505 Crude Facilities 9,341 9,683…
  38. 3Q 2018 Earnings Presentation – Semgroup Corporation – slide 38
    Non-GAAP Adjusted EBITDA Calculation (in thousands, unaudited) FY2016 Reconciliation of net income to Adjusted EBITDA: Net income 13,262 Add: Interest expense 62,650 Add: Income tax expense 11,268 Add: Depreciation and amortization…
  39. 3Q 2018 Earnings Presentation – Semgroup Corporation – slide 39
    Reconciliation of Operating Income to Total Segment Profit (in thousands, unaudited) 2018 2017 Q1 Q2 Q3 YTD Q1 Q2 Q3 Q4 FY2017 Operating income (loss) 34,853 31,346 39,699 105,898 23,389 25,202 (27,778) 73,247 94,060 Plus:…
  40. 3Q 2018 Earnings Presentation – Semgroup Corporation – slide 40
    Cash Available for Dividends (in thousands, unaudited) 2018 2017 Q1 Q2 Q3 YTD Q1 Q2 Q3 Q4 FY2017 Adjusted EBITDA 93,371 99,010 96,451 288,832 60,667 65,410 90,733 111,493 328,303 Less: Cash interest expense 32,530 34,870 36,377…
  41. 3Q 2018 Earnings Presentation – Semgroup Corporation – slide 41
    Reconciliation of Adjusted EBITDA to Pro Forma Consolidated Leverage EBITDA (in millions, unaudited) Adjusted EBITDA 3Q18 96.4 2Q18 99.0 1Q18 93.4 4Q17 111.5 LTM Adjusted EBITDA 400.3 Adjustments 11.9 LTM PF Consolidated…

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