Altus Midstream Summary Overview Commentary Simplified Structure In November 2018, Kayne Anderson and Apache formed a Public Investors Apache Corporation publicly-traded midstream C-corp Altus Midstream Company 21% 79% (Altus or…
Investment Merits Permian pure-play public midstream C-corp Unique Public Investment Exposure to full midstream value chain from Permian to the Gulf Coast Opportunity Strong sponsorship from premier independent E&P company in…
Gathering & Processing Overview Asset Map Current Asset Highlights Rich Gas Processing: 380 MMcf/d of capacity in service Lean Gas Treating / Compression: 400 MMcf/d of capacity in service Gas Gathering Pipelines: 111 miles in…
State of the Art Cryogenic Processing SRX Technology Altus is building SRX cryogenic facilities to capitalize on better ethane recovery and rejection SRX further maximizes processing economics via much higher propane recoveries during…
Joint Venture Pipelines Overview Pipeline Map Commentary Altus owns or has the option to participate in five joint venture pipeline projects 16%(1) of KMIs GCX (Exercised) Nat Gas 27% of KMIs Permian Highway (Option) 33% of…
JV Pipeline Recent Developments Gulf Coast Expected in-service in October 2019 with project cost estimated at 1.75 billion Express Pipeline (Exercised) Midland lateral placed in-service in April 2019 Expected in-service in October…
Alpine High Overview 12
Alpine High: A World-Class Resource Play Unprecedented hydrocarbon column 5,000 feet Vertically stacked oil, rich gas, and lean gas fairways Scale 300,000 net acres at year-end 2018 5,000+ locations identified as of October 2017…
Stacked Pay From 13 Landing Zones Parasequences Parasequences 3rd BONE SPRING High frequency, rapidly rising and falling sea level 13 environment landing WOLFCAMP zones so far; UNCONFORMITY PENNSYLVANIAN 5,000 vertical…
Alpine High Rich Gas Development Underway Formulation and Areal and Optimization and Focused near-term confirmation vertical transition to full development and setting of concept delineation field development up the long-term…
Financial Overview 16
Financial Overview Altus Midstreams simple structure is a key point of differentiation No debt and undrawn revolver(1) provide strong liquidity No incentive distribution rights Financing is secured for planned growth projects,…
Preferred Equity Financing & Revolver Amendment Preferred Equity Altus Midstream LP has secured commitments for 625 million of preferred equity led by Magnetar Capital and The Carlyle Group Funding expected to occur by June 28, 2019,…
Near-Term Financing Plan Altus has diversified funding sources to support its current growth plans this year, including the exercise of Shin Oak and PHP options For 2020 and beyond, we are evaluating options for additional debt…
Leverage & Cost of Capital The preferred equity raise and revolver amendment provide access to attractive sources of capital from a leverage and cost of capital perspective Leverage ratio forecasted to be 2.4x in 2021 (3.8x assuming…
Financial Guidance Update Updated Gathered Volume Guidance In February 2019, Altus provided gathered volume guidance of 525-575 MMcf/d (65% rich gas) for 2019 In April 2019, Apache announced that gas production from Alpine High would…
Financial Guidance Growth Capital Investments(1) Adjusted EBITDA(1) ( in millions) ( in millions) % Attributable to JV Pipelines % Attributable to JV Pipelines 75-85% 60-70% 0% 35-45% 55-65% 55-65% 1,575 - 1,675 400 - 500…
Altus Long-Term Growth Potential Expect 10+% Adjusted EBITDA(1) growth in 2022 and beyond Depth of Alpine High inventory provides long runway for growth Significant free cash flow(1) generation potential in 2021 and beyond Enables…
Appendix 24
Details on Joint Venture Pipelines Gulf Coast Permian Salt Creek EPIC Crude Shin Oak Express Highway NGL Line Product Natural Gas Crude Natural Gas NGL NGL Operator Kinder Morgan EPIC Kinder Morgan Enterprise Products ARM…
Midstream Agreements with Apache Commercial Agreements with Apache Area of Dedication The area of dedication encompasses a total of 540,000 gross acres (as denoted by the red outline) Includes existing Apache acreage and future…
Revolving Credit Facility Summary Altus has a five-year revolving credit facility Flexible terms Pro forma credit for JV pipelines before in-service Competitive Investment Grade pricing grid Two one-year extension options…
Glossary of Terms Adjusted EBITDA is defined as net income (loss) including noncontrolling interest before financing costs (net of capitalized interest), interest income, income taxes, depreciation, and accretion and adjusting for such…
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