Summit Midstream Partners, LP RBC Capital Markets 2019 Midstream Conference November 20 21, 2019
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…
3Q 2019 Highlights Strong Quarterly Financial Results 72.0 million of adjusted EBITDA, inclusive of 3.9 million of non-recurring expenses and operational downtime in the Williston Basin; represents a growth rate of 5.0% over 2Q 2019…
November 2019 DPPO Amendment Transaction to prepay and reduce the DPPO by 40% and extend the payment timeline to January 2022 Transaction Overview Pro Forma Ownership & Organizational Structure In November 2019, SMLP and a subsidiary…
Diversified Operating Footprint SMLPs diversified operations, services and customers provide cash flow stability. SMLP intends to allocate its growth capital to its Core Focus Areas where there are significant opportunities to support…
Investment Considerations
SMLP Investment Considerations Financial Profile Focused on Attractive Relative Valuation(1) Returns-Driven Accretive Growth SMLP is trading at a substantial discount to its peers Significant available liquidity under 1.25 billion…
Attractive Valuation Returns-Driven Accretive Growth Core Focus Areas Legacy Areas Attractive Relative Valuation SMLP represents an attractive relative value based on its EV / 2019E EBITDA compared to its peers SMLP vs. Peers…
Attractive Valuation Returns-Driven Accretive Growth Core Focus Areas Legacy Areas Strong Balance Sheet Enables Execution of Growth Strategy Financing Tools SMLP Capitalization Increasing future leverage capacity associated with: (s…
Attractive Valuation Returns-Driven Accretive Growth Core Focus Areas Legacy Areas Double E Pipeline Industry solution connecting New Mexico natural gas production to market liquidity in Waha, Texas Project Overview Double E Project…
Attractive Valuation Returns-Driven Accretive Growth Core Focus Areas Legacy Areas Strategic Focus on Four Key Growth Basins Core Focus Areas Map 2016 Adj. EBITDA by Segment 46% Core Focus Areas 2019E Adj. EBITDA by…
Attractive Valuation Returns-Driven Accretive Growth Core Focus Areas Legacy Areas Utica Shale Diversified operating footprint spanning all three windows of the Utica Shale Area Strategy & Key Themes Utica Shale Map C Condensate…
Attractive Valuation Returns-Driven Accretive Growth Core Focus Areas Legacy Areas Williston Basin Geographically expansive platform providing multiple service offerings to top producers in the play Area Strategy & Key Themes…
Attractive Valuation Returns-Driven Accretive Growth Core Focus Areas Legacy Areas DJ Basin Competitively advantaged gathering and processing position in the northern DJ Basin Area Strategy & Key Themes DJ Basin Map Recently…
Attractive Valuation Returns-Driven Accretive Growth Core Focus Areas Legacy Areas Permian Basin High-growth platform serving largest acreage holder in prolific northern Delaware Basin Area Strategy & Key Themes Permian Basin Map…
Attractive Valuation Returns-Driven Accretive Growth Core Focus Areas Legacy Areas Legacy Areas Low Decline Legacy Areas Have High MVC Underpinnings and Provide Reliable Free Cash Flows Legacy Areas Map Legacy Areas MVCs 1,042…
Attractive Valuation Returns-Driven Accretive Growth Core Focus Areas Legacy Areas Piceance Basin Area Strategy & Key Themes Piceance Basin Map Positioned in the core of the Piceance Basin with exposure to the liquids-rich Mesaverde…
Attractive Valuation Returns-Driven Accretive Growth Core Focus Areas Legacy Areas Barnett Shale Area Strategy & Key Themes Barnett Shale Map System fully developed with minimal capex requirements A Continuous improvement in the…
Attractive Valuation Returns-Driven Accretive Growth Core Focus Areas Legacy Areas Marcellus Shale Area Strategy & Key Themes Marcellus Shale Map SMLPs Marcellus assets provide a critical high-pressure inlet to the Sherwood…
Key Takeaways 1 2019 financial guidance supported by visible near-term growth and current levels of drilling and completion activity 2 Compelling and attractive valuation relative to G&P peers 3 Financial flexibility with 3Q 2019…
Appendix
Downside Protection Through Long-Term Contracts with MVCs Utica Williston DJ Permian Piceance Barnett Marcellus Wtd. Avg. / Core Focus Areas Legacy Areas Shale Basin Basin Basin Basin Shale Shale Total (4) Acreage Dedications (net…
Reportable Segment Adjusted EBITDA Three Months ended September 30, Nine Months ended September 30, (s in 000s) 2019 2018 2019 2018 (1) Reportable segment adjusted EBITDA : Utica Shale 7,864 6,521 20,697 24,459 (2) Ohio Gathering…
Reconciliation of Net Income or Loss to adj. EBITDA and DCF Nine Months Ended September 30, Year Ended December 31, (s in 000s) 2019 2018 2018 2017 2016 Net income / (loss) (42,750) 3,697 42,351 86,050 (38,187) Add: Interest expense…
Reconciliation of Net Cash Provided by Operating Activities to adj. EBITDA and DCF Nine Months Ended September 30, (s in 000s) 2019 2018 Distributable Cash Flow: Net Cash provided by operating activities 143,419 166,492 Add:…
Adjustments Related to MVC Shortfall Payments(1) Three Months Ended September 30, 2019 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 & Org. Structure Equity Research Coverage Organizational Structure Barclays Capital Capital One Securities, Inc. 100% Credit Suisse Summit Midstream Partners, LLC 6.3% Common (Summit…
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