PEOPLE PROCESS TECHNOLOGY Second Quarter 2018 Update August 8, 2018 Earnings Call
PEOPLE PROCESS TECHNOLOGY Q2 2018 Highlights and Execution 3
Q2 2018 Highlights Q2 2018 Results Generated 270 million of adjusted EBITDA and 166 million of DCF Distribution coverage 1.08x Strong Q2 results / Bank facility leverage 3.6x updated guidance Strengthened 2018 guidance range to…
Strategic Growth Highlights A Gathering and Processing: DJ Basin Cheyenne Connector Fractionator Mewbourn 3 - 200 MMcf/d plant placed in service in August Mewbourn 3 Plant & Frac OConnor 2 - 300 MMcf/d facility, including up to 100…
Extending Logistics Value Chain via Sweeny Option to expand DCPs fractionation network into Sweeny Hub in partnership with Phillips 66 Connecting growing NGL production Strategic Rationale from key basins to Gulf Coast Extending value…
Consolidated Q2 2018 Financial Results Strong G&P and Logistics & Marketing results are more than offsetting lower Discovery and higher costs Distributable Cash Flow (MM) Q2 2018 Distribution Coverage 1.08x Key drivers…
Volume Growth Across Full Value Chain Sand Hills Pipeline Throughput(1) Eagle Ford Wellhead Volumes Recovering 30% 55% 678 415 521 269 Q217 Q218 Q217 Q218 Permian growth and ethane recovery DJ Basin Wellhead Volumes Sand…
Q2 2018 Financial Position Ample Liquidity and Financial Flexibility 3.6x bank facility leverage ratio(1)(2) Financial Priorities Q2 2018 & Actual Ample liquidity with 1.25 billion available on bank facility(2) 2018 Guidance…
Key Takeaways Transforming our business fully integrated value chain driving increasing cash flows Disciplined Continued momentum delivering strong results, Strong Q2 capital coverage and leverage results allocation Strengthened…
PEOPLE PROCESS TECHNOLOGY DCP Midstream Appendix: Financial and Other Supporting Slides 11
2018 Updated Guidance 2018 Updated Guidance ( in Millions) 2018 Assumptions Higher Sand Hills volumes, earnings and (1) Adjusted EBITDA 1,065-1,135 distributions associated with expansions placed in service Distributable Cash Flow…
Volumes Logistics NGL Pipeline Volume Trends and Utilization Q2'17 Q1'18 Q2'18 Q2'18 Approx System Average Gross Average NGL Average NGL Average NGL Sand Hills is bringing Length Capacity Net Capacity Throughput Throughput…
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 2018 Annual Commodity Sensitivities Before…
Margin by Segment* MM, except per unit measures Q2 2018 Q1 2018 Q4 2017 Q3 2017 Q2 2017 Gathering & Processing (G&P) Segment Natural gas wellhead - Bcf/d 4.80 4.47 4.60 4.46 4.48 (1) Segment gross margin including equity earnings…
Disciplined and Strategic Growth Executing strategic, lower risk growth projects at 2-7x multiples with line of sight to fast volume ramp growing fee-based earnings Projects in Progress Est. Expected (MM net to DCPs interest) Est. 100%…
Extending Integrated DJ Basin Infrastructure Expanding leading DJ Basin footprint Solving G&P, NGL and gas takeaway for our producers well into the next decade Cheyenne Connector G&P Expansion adding up to 1.5 Bcf/d capacity…
Expanding Permian Logistics Footprint Extending Logistics value chain with fee-based projects Sand Hills leverages the entire Permian with lower risk and higher returns Sand Hills NGL Pipeline Expansion Increased capacity to 425…
Commodity Derivative Activity Three Months Six Months Ended Ended June 30, June 30, ( in millions) 2018 2017 2018 2017 Gathering & Processing Segment: Non-cash unrealized (losses) gains (42) 16 (28) 47 Logistics & Marketing Segment:…
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