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RBC Capital Markets Midstream and Energy Infrastructure Conference November 18 2020 – DCP Midstream LP

DCP Midstream LP · Nov 18, 2020 · 46 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. RBC Capital Markets Midstream and Energy Infrastructure Conference November 18 2020 – DCP Midstream LP – slide 1
    RBC Capital Markets Midstream and Energy Infrastructure Conference
  2. RBC Capital Markets Midstream and Energy Infrastructure Conference November 18 2020 – DCP Midstream LP – slide 2
    DCP Midstream Snapshot DCP NYSE TICKER FORTUNE 500 152MM Excess FCF YTD NUMBER 3.3B MARKET CAP 1.6MM AVG. 52-week TRADING VOLUME 413 1.3B AVAILABLE LIQUIDITY .39 / 1.56 ANNUALIZED Ba2 / BB+ / BB+ DISTRIBUTION PAYMENT…
  3. RBC Capital Markets Midstream and Energy Infrastructure Conference November 18 2020 – DCP Midstream LP – slide 3
    Strong Portfolio of Assets Leading Midstream Provider Integrated Logistics & Marketing and Gathering & Processing business with competitive footprint and geographic diversity Unparalleled interconnectivity and access to…
  4. RBC Capital Markets Midstream and Energy Infrastructure Conference November 18 2020 – DCP Midstream LP – slide 4
    Compelling Investor Value Proposition INTEGRATED MIDSTREAM PROVIDER EXCESS FREE CASH FLOW POSITIVE Fully integrated midstream business, with strong Logistics portfolio and geographically diverse, premier asset base Excess free cash…
  5. RBC Capital Markets Midstream and Energy Infrastructure Conference November 18 2020 – DCP Midstream LP – slide 5
    DCP Business Evolution 2010* Extended and enhanced Logistics & Marketing (L&M) value chain 2020 Strategically aligned Gathering & Processing (G&P) footprint Opportunistic consolidation, right-sizing the portfolio DCP 2.0…
  6. RBC Capital Markets Midstream and Energy Infrastructure Conference November 18 2020 – DCP Midstream LP – slide 6
    Long-Term Financial Priorities Generate Improve Reduce Excess Free Credit Leverage Cash Flow Ratings Excess free cash flow positive in 2020 Delevering is top capital allocation Ba2/BB+/BB+ credit ratings and 2021, enhancing…
  7. RBC Capital Markets Midstream and Energy Infrastructure Conference November 18 2020 – DCP Midstream LP – slide 7
    Company Ownership Structure Baa2 / BBB+ / BBB+(3) (NYSE:ENB) 50% 50% A3 / BBB+ / NR(3) 115.8 billion (NYSE:PSX) enterprise value(1) 41.3 billion enterprise value(1) General Public Partner Unitholders (2) 57% Common 43%…
  8. RBC Capital Markets Midstream and Energy Infrastructure Conference November 18 2020 – DCP Midstream LP – slide 8
    Financial Position 9
  9. RBC Capital Markets Midstream and Energy Infrastructure Conference November 18 2020 – DCP Midstream LP – slide 9
    Solid Financial Position Increased Lowered Improved Solid Excess FCF Debt Leverage Liquidity 152MM 175MM 3.9x 1.3B Enhanced Stable RA Diversified Efficiencies Cash Flows Progress Earnings (1) 17% YoY 83% Fitch 62% Cost Fee +…
  10. RBC Capital Markets Midstream and Energy Infrastructure Conference November 18 2020 – DCP Midstream LP – slide 10
    Proactively Managing Liquidity Liquidity Revolving credit facility ( in Millions) 1.4 billion unsecured backed by 16 leading revolving credit facility financial institutions, matures in December majority shared by of 2024 ENB &…
  11. RBC Capital Markets Midstream and Energy Infrastructure Conference November 18 2020 – DCP Midstream LP – slide 11
    2020 Financial Guidance 2020 Guidance 2020 Commodity Prices(6) ( in Millions) YTD 2H Target Realized Adjusted EBITDA(1) 1,205 - 1,345 NGL (/gallon) 0.39 0.41 Distributable Cash Flow (DCF) (1)(2) 730 - 830 Natural Gas (/MMBtu) 2.06…
  12. RBC Capital Markets Midstream and Energy Infrastructure Conference November 18 2020 – DCP Midstream LP – slide 12
    Total Capital Expenditures Total Capital Spend (MM) Sustaining capital Capital Definitions Growth capital Sustaining capital is cash 970 expenditures to maintain our cash 955 flows, operating, or earnings capacity Growth capital…
  13. RBC Capital Markets Midstream and Energy Infrastructure Conference November 18 2020 – DCP Midstream LP – slide 13
    2020 and 2021 Hedges Hedge Position as of October 31, 2020 Commodity Q1 2020 Q2 2020 Q3 2020 Q4 2020 2020 Avg. 2021 Avg. Total Equity Length Hedged(2) NGLs hedged (Bbls/d) 10,352 10,352 13,011 13,011 11,681 4,570 Targeted average…
  14. RBC Capital Markets Midstream and Energy Infrastructure Conference November 18 2020 – DCP Midstream LP – slide 14
    External Environment Updates 15
  15. RBC Capital Markets Midstream and Energy Infrastructure Conference November 18 2020 – DCP Midstream LP – slide 15
    Resiliency and Durability of DCP Model Health and Safety Operational Continued Cost & Priority Excellence Capital Efficiency Protecting our Maintaining top safety Expect to beat YoY 120MM employees, performance while driving cost…
  16. RBC Capital Markets Midstream and Energy Infrastructure Conference November 18 2020 – DCP Midstream LP – slide 16
    Successfully Navigating 2020 PRIORITY ACTION RESULT Implemented pandemic response plan to Healthy workforce Health & Safety ensure safety of our employees, Business continuity; safe and reliable customers, communities, and operations…
  17. RBC Capital Markets Midstream and Energy Infrastructure Conference November 18 2020 – DCP Midstream LP – slide 17
    Delivering on Commitments Q3 Results Q4 Outlook 2H Expectations Q3 volumes Expected declines due to L&M Volumes flat to Q2 reduced ethane recovery Q3 volumes slightly Slight increase G&P Volumes down to Q2 in volumes Ethane 50%…
  18. RBC Capital Markets Midstream and Energy Infrastructure Conference November 18 2020 – DCP Midstream LP – slide 18
    Managing Counterparty Risk Customer Ratings(1)(2) Customer Types(1) Other 6% B- to BB+ Producer 26% Marketer 22% A- to A+ 18% 32% Refiner / Petrochem 20% Midstream 24% BBB-, BBB, BBB+ Utility 42% 10% Top 50 customer…
  19. RBC Capital Markets Midstream and Energy Infrastructure Conference November 18 2020 – DCP Midstream LP – slide 19
    DCP Strategic Execution 20
  20. RBC Capital Markets Midstream and Energy Infrastructure Conference November 18 2020 – DCP Midstream LP – slide 20
    DCP Strategic Approach Operational Excellence and Sustainability Our vision is to be the safest, most reliable, low-cost midstream service provider Financial Execution Focused on delivering significant excess free cash flow…
  21. RBC Capital Markets Midstream and Energy Infrastructure Conference November 18 2020 – DCP Midstream LP – slide 21
    Long-Term Strategy Ensuring Stability Enhance our environmental, social, and governance performance to ensure long-term sustainability and operational excellence Maintain best in class cost and capital discipline through continued…
  22. RBC Capital Markets Midstream and Energy Infrastructure Conference November 18 2020 – DCP Midstream LP – slide 22
    Long-Term Global Demand for Natural Gas World Primary Energy Demand by Fuel (BTOE) Share by Fuel Renewables 14% Coal 20 27% Nuclear 18 5% 16 2018 Natural gas 14 23% Oil 12 31% 10 8 Renewables Coal 6 21% 21% 4…
  23. RBC Capital Markets Midstream and Energy Infrastructure Conference November 18 2020 – DCP Midstream LP – slide 23
    The Midstream Value Chain DCP plays a critical role in supplying the nations electricity, fuel, and products through natural gas gathering and processing, logistics and marketing, transportation, and fractionation 24
  24. RBC Capital Markets Midstream and Energy Infrastructure Conference November 18 2020 – DCP Midstream LP – slide 24
    Integrating & Enhancing the Value Chain Strategic G&P footprint feeding strong Logistics asset base Driving customer volumes to multiple market centers along the Gulf Coast Q4 2019: OConnor 2 bypass PROCESSING Q4 2020: Latham 2…
  25. RBC Capital Markets Midstream and Energy Infrastructure Conference November 18 2020 – DCP Midstream LP – slide 25
    Strength via Diversification and Transformation Basins Cash Flows Customers Wellhead Volume Q3 2020 Adjusted EBITDA 2010 vs. 2019 Top 50 Customers, 74% IG(2) East Texas Other 6% 6% Marketer Eagle Ford 18% Diversity of DJ…
  26. RBC Capital Markets Midstream and Energy Infrastructure Conference November 18 2020 – DCP Midstream LP – slide 26
    Disciplined and Strategic Capital Projects Est. 100% Total Est. Expected Projects in Progress Capacity CapEx (MM) In-Service Gathering & Processing Latham 2 Offload Long-term gas processing offload agreement at Western Midstream…
  27. RBC Capital Markets Midstream and Energy Infrastructure Conference November 18 2020 – DCP Midstream LP – slide 27
    DCP 2.0 Driving the Operations of the Future DCP 2.0 Strategic Objectives Achieve Real-Time Digitally Enable the Increase Cash Flow While Optimization and Decision Business and Workforce Diminishing Risk Making Utilize real-time…
  28. RBC Capital Markets Midstream and Energy Infrastructure Conference November 18 2020 – DCP Midstream LP – slide 28
    ICC and Remote Operations Integrated Collaboration Center (ICC) Linking Numerous Data Sources SCADA Financial Real-Time Engineering KPIs Contracts and DCS Data Prices Data Integrated Collaboration Center Remote Operations…
  29. RBC Capital Markets Midstream and Energy Infrastructure Conference November 18 2020 – DCP Midstream LP – slide 29
    DCP Technology Ventures Accelerating digital transformation and technology adoption for the midstream industry to improve sustainability and increase optimization Rapidly Piloting & Adopting Emerging Tech Safety Encroachment Tech -…
  30. RBC Capital Markets Midstream and Energy Infrastructure Conference November 18 2020 – DCP Midstream LP – slide 30
    World Economic Forum Designation DCP joins the World Economic Forums Global Lighthouse Network of companies leading the world on innovation via Fourth Industrial Revolution technological adoption at scale 1 of 54 1 of 5 1 of 1…
  31. RBC Capital Markets Midstream and Energy Infrastructure Conference November 18 2020 – DCP Midstream LP – slide 31
    Sustainability 32
  32. RBC Capital Markets Midstream and Energy Infrastructure Conference November 18 2020 – DCP Midstream LP – slide 32
    Safety & Operational Excellence (1) DCP Total Recordable Injury Rates Incidents per 200,000 hours worked 0.93 0.87 0.79 0.66 0.82 0.44 0.36 0.30 2016 2017 2018 2019 GPA Midstream Division 1 Companies (2) 4.5…
  33. RBC Capital Markets Midstream and Energy Infrastructure Conference November 18 2020 – DCP Midstream LP – slide 33
    Highlights from the Inaugural DCP Midstream Sustainability Report DCP is committed to safety, social responsibility, diversity, environmental leadership, operational excellence, and ethical business practices to ensure the decisions we…
  34. RBC Capital Markets Midstream and Energy Infrastructure Conference November 18 2020 – DCP Midstream LP – slide 34
    DCP 2.0 Environmental Management Transformation We recognize our critical responsibility to provide safe, affordable, reliable energy, while reducing our contribution to, and mitigating the impacts of climate We are leading the change.…
  35. RBC Capital Markets Midstream and Energy Infrastructure Conference November 18 2020 – DCP Midstream LP – slide 35
    Segment Overviews 36
  36. RBC Capital Markets Midstream and Energy Infrastructure Conference November 18 2020 – DCP Midstream LP – slide 36
    Logistics and Marketing (L&M) Overview DCP Logistics Assets The Logistics & Marketing segment is fee-based or fee-like and includes NGL and gas takeaway pipelines, marketing, trading, storage, and fractionators Sand Hills provides…
  37. RBC Capital Markets Midstream and Energy Infrastructure Conference November 18 2020 – DCP Midstream LP – slide 37
    L&M Ownership & Customers NGL and gas pipelines provide open access to premier demand markets Legend: Cheyenne Connector DCP operated Operated by TGE DCP 50% Owner Third party operated Customer Centric Pipeline Takeaway…
  38. RBC Capital Markets Midstream and Energy Infrastructure Conference November 18 2020 – DCP Midstream LP – slide 38
    Gathering and Processing (G&P) Overview North Assets Permian Assets South Assets Midcontinent Assets DJ Basin Delaware Basin Eagle Ford SCOOP/STACK 10 active plants 4 active plants 5 active plants 5 active plants 1,160 MMcf/d net…
  39. RBC Capital Markets Midstream and Energy Infrastructure Conference November 18 2020 – DCP Midstream LP – slide 39
    Diverse Producer Customers in Key Basins DJ Basin (North) Midcontinent Permian South Volume and margin portfolio supported by long-term agreements with diverse high- quality producers in key regions 40
  40. RBC Capital Markets Midstream and Energy Infrastructure Conference November 18 2020 – DCP Midstream LP – slide 40
    Volumes by Segment NGL Pipeline Volume Trends and Utilization Q3'19 Q2'20 Q3'20 Q3'20 Q3 2020 Southern Average Gross Average NGL Average NGL Average NGL Hills volumes up Approx System Throughput Throughput Throughput Pipeline NGL…
  41. RBC Capital Markets Midstream and Energy Infrastructure Conference November 18 2020 – DCP Midstream LP – slide 41
    DJ Basin Fundamentals Strength of the DJ Front Range Producer Acreage Life of Life of lease contracts forge strong producer and community Lease relationships in rural, industry- Contracts friendly Weld County Rural Dedicated…
  42. RBC Capital Markets Midstream and Energy Infrastructure Conference November 18 2020 – DCP Midstream LP – slide 42
    Non-GAAP Reconciliations 43
  43. RBC Capital Markets Midstream and Energy Infrastructure Conference November 18 2020 – DCP Midstream LP – slide 43
    Non-GAAP Reconciliations ** We define adjusted gross margin as total operating revenues, less purchases and related costs, and we define segment adjusted gross margin for each segment as total operating revenues for that segment…
  44. RBC Capital Markets Midstream and Energy Infrastructure Conference November 18 2020 – DCP Midstream LP – slide 44
    Non-GAAP Reconciliations 45 45
  45. RBC Capital Markets Midstream and Energy Infrastructure Conference November 18 2020 – DCP Midstream LP – slide 45
    Non-GAAP Reconciliations 46 46
  46. RBC Capital Markets Midstream and Energy Infrastructure Conference November 18 2020 – DCP Midstream LP – slide 46
    Non-GAAP Reconciliations 47

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