Midcoast Energy Partners, L.P. Investment Community Presentation December 2014
Vision and Strategy VISION Be recognized as a leading natural gas and NGL midstream infrastructure developer, operator and service provider in North America SCALE SCOPE STRATEGY Provide best in class gathering, processing and…
Strong Sponsors and Management Leveraging Enbridge Inc. & Enbridge Energy Partners, L.P. Strong Sponsors Enbridge Inc. (ENB) A-/Baa1 45 billion equity market capitalization Enbridge Energy Partners, L.P. (EEP) BBB+/Baa2 17.2…
MEP Strategic Priorities Strengthen underlying business Recontract and capture new business that enhances cash flow certainty Continue focused cost management measures Secure and execute on organic growth opportunities Continue to…
Long-Term Transformation of Risk Profile Risk profile transforms as base business grows and new business is captured Demand volumes and revenue progressively ramping on Texas Express Re-contract and capture new business that enhances…
Growth Outlook 100% Natural Gas business 48.4% 61% ownership 51.6% 39% IPO July 1, 2014 2017e Drop-down program is strategic to EEP Position for 2H 2015 drop-down Secure growth opportunities Cost management measures…
Strong Sponsor Support EEP incentivized to invest alongside MEP Jointly fund on and off footprint growth EEP evaluating other forms of support Execute drop-down that enhances accretion at MEP Enhance MEP Cost of Equity Gas-Focused…
Strategically Positioned Asset Base Midcoast Business Segments Key Assets Natural Gas Deliveries 2.5 bcf/d Gathering, Processing & Transportation: strong asset foundation 90% EBITDA Gathering and Transportation Pipelines 11,400…
Regional Outlook Gathering, Processing & Transportation Highlights Rigs on dedicated acreage = 15 * East Texas Beckville plant on target for 1Q 2015 in-service NGL production volumes expected to increase Eaglebine activity…
Texas Express NGL System Description of Assets Texas Express Footprint NGL Mainline System JV with Enterprise Products Partners (35%, operator), Midcoast Operating (35%), New NGL Skellytown Anadarko Petroleum Corporation (20%) and…
Texas Express A Growing Base of Secure Cash Flow Texas Express NGL System Shipper committed and spot volumes ramping up; committed volumes step- up to 147,000 Bpd in July 2015 Underpinned by fee-based demand revenue System is…
Capital Forecast & Funding Outlook Capital Expenditures(1) Growing Financial Strength: 2014e 2015e Coverage expected to strengthen Beckville Gas Processing Plant 105 15 Debt/EBITDA expected to improve Well Connect Expansion Capital…
Accelerating Scope & Pace of Change Bottom-line enhancement initiatives 2014e O&A Costs (1) 405 MM 50 million of annual cost reductions at New Assets In Service +12 Midcoast Operating Insurance & Taxes +6 Cost structure to be…
2015 Financial Outlook Midcoast Operating, L.P. ( millions) 2015e Adjusted EBITDA, inclusive of other cash items(1) 255 - 280 + 25% YoY Midcoast Energy Partners, L.P. (MEP) 2015e ( millions) Adjusted EBITDA (2) 120 - 135 + 67%…
Key Takeaways Accelerating pace and increasing scope of change Executed cost reduction measures bolster distributable cash flow Adding to demand-based business Sponsor support remains strong Drop-down strategy intact Aggressively…
Appendix
MEP Organizational Structure Enbridge Inc. owns Enbridge Inc. 34% of EEP (NYSE: ENB) (Baa1 / A-) 2% GP interest 29.9% LP interest (indirect) Enbridge Energy Partners, L.P. (NYSE: EEP) (Baa2 / BBB) 2% GP interest…
Strengthening Business Performance 2015 Earnings and Cash Flow Outlook ( millions) 290.0 280 inclusive of other cash items (1) 270.0 MOLP Adjusted EBITDA, 250.0 255 230.0 220 210.0 190.0 170.0 150.0 1Q15e…
Attractive Investment Proposition Investment Highlights Peer Group 10% Visible growth outlook 9% MEP: 9.5% Enhanced access to capital positions MEP to pursue 8% accretive acquisitions and 7% secure organic growth 6% Equity…
Financial Support from Sponsors Financial Support Agreement Receivables Sales Agreement Purpose Derivative contracts, natural gas purchasing Enhance available liquidity agreement and NGL purchase agreement support Borrower Midcoast…
Securing Cash Flow Certainty Risk Profile Shifting: Contract Mix (1) Demand and fee-based margin positioned to Keepwhole Demand- Based 8% increase in 2015 11% POP Strengthening cash flow certainty 21% Fee-Based Disciplined…
Anadarko System Strategically Located in Texas Panhandle and Western Oklahoma Processing Plant Highlights Treater Plant Gas Pipeline Active rigs 53 rigs(1) Liquids Pipeline Texas Express Rigs drilling on 18 rigs(2) dedicated…
East Texas System Extensive Footprint in East Texas: Haynesville & Cotton Valley Processing Plant Highlights Treater Plant Active rigs 58 rigs(1) Gas Pipeline Rigs drilling on dedicated Liquids Pipeline 21 rigs(2) acreage…
North Texas System Extensive Asset Footprint Processing Plant Highlights Gas Pipeline Liquids Pipeline Active rigs 42 rigs(1) Texas Express Rigs drilling on dedicated 4 rigs(2) acreage Miles of natural gas gathering and…
Loading...
