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MORGAN STANLEY MIDSTREAM MLP & DIVERSIFIED NATURAL GAS EVENT – Markwest Energy Partners, L.P.

Markwest Energy Partners, L.P. · Mar 5, 2013 · 30 slides

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Slides

  1. MORGAN STANLEY MIDSTREAM MLP & DIVERSIFIED NATURAL GAS EVENT – Markwest Energy Partners, L.P. – slide 1
    MORGAN STANLEY MIDSTREAM MLP & DIVERSIFIED NATURAL GAS EVENT MARCH 5, 2014
  2. MORGAN STANLEY MIDSTREAM MLP & DIVERSIFIED NATURAL GAS EVENT – Markwest Energy Partners, L.P. – slide 2
    Non-GAAP Measures Distributable Cash Flow, Adjusted EBITDA, and Net Operating Margin are not measures of performance calculated in accordance with GAAP, and should not be considered separately from or as a substitute for net income,…
  3. MORGAN STANLEY MIDSTREAM MLP & DIVERSIFIED NATURAL GAS EVENT – Markwest Energy Partners, L.P. – slide 3
    Key Investment Considerations HIGH-QUALITY PROVEN GROWTH S U B S TAN T I AL STRONG DIVERSIFIED &CUSTOMER GROWTH FINANCIAL ASSETS SATISFACTION OPPORTUNITIES PROFILE Quarterly Distribution Growth of 244% 0.80 Since IPO 0.60…
  4. MORGAN STANLEY MIDSTREAM MLP & DIVERSIFIED NATURAL GAS EVENT – Markwest Energy Partners, L.P. – slide 4
    MarkWest Assets: Expansion & Diversification Utica Developing a leading position in the southern core of the Utica Shale with 585 MMcf/d of processing capacity. Northeast Growing to over 1.1 Bcf/d of processing capacity and over…
  5. MORGAN STANLEY MIDSTREAM MLP & DIVERSIFIED NATURAL GAS EVENT – Markwest Energy Partners, L.P. – slide 5
    U.S. Shale Plays Are Driving Natural Gas Supply EIA data concludes that natural U.S. Dry Natural Gas Production gas supply will increase by (trillion cubic feet per year) approximately 25% by 2030 2013 35 driven primarily by…
  6. MORGAN STANLEY MIDSTREAM MLP & DIVERSIFIED NATURAL GAS EVENT – Markwest Energy Partners, L.P. – slide 6
    Growth Driven by Customer Satisfaction MarkWest has received the top rating in three of the last four EnergyPoint Research surveys 7 7
  7. MORGAN STANLEY MIDSTREAM MLP & DIVERSIFIED NATURAL GAS EVENT – Markwest Energy Partners, L.P. – slide 7
    2014 Forecasted Operating Income by Segment Marcellus Utica* 47% 13% Northeast Southwest 9% 31% *Utica Operating Income Percentage is Gross of Non-Controlling Interest 8
  8. MORGAN STANLEY MIDSTREAM MLP & DIVERSIFIED NATURAL GAS EVENT – Markwest Energy Partners, L.P. – slide 8
    Marcellus & Utica: Driving U.S. Gas Production Growth Wellhead gas production (before flaring and NGL extraction) Rest of U.S. Marcellus & Utica 65 17 64 16 63 15 Billion cubic feet per day Billion cubic feet per day 62…
  9. MORGAN STANLEY MIDSTREAM MLP & DIVERSIFIED NATURAL GAS EVENT – Markwest Energy Partners, L.P. – slide 9
    Marcellus Segment Key Considerations 2014 We are the largest processor of natural gas and fractionator of natural gas Forecasted 47% liquids in the Marcellus Shale Segment Operate fully integrated gathering, processing,…
  10. MORGAN STANLEY MIDSTREAM MLP & DIVERSIFIED NATURAL GAS EVENT – Markwest Energy Partners, L.P. – slide 10
    MarkWest Marcellus: Current Processing Capacity of 2.2 Bcf/d Growing to over 3.7 Bcf/d of processing capacity Bluestone III 3,500 Houston IV 2015+ Majorsville VI 3,000 Bluestone II Majorsville IV 2014 Mobley IV 2,500 Sherwood…
  11. MORGAN STANLEY MIDSTREAM MLP & DIVERSIFIED NATURAL GAS EVENT – Markwest Energy Partners, L.P. – slide 11
    Marcellus Segment Overview Processed Volumes (MMcf/d) Five complexes in Marcellus with over 2.2 1,600 Bcf/d of total processing capacity 1,400 Added 600 MMcf/d of processing capacity during the quarter new 200 MMcf/d 1,200 plants…
  12. MORGAN STANLEY MIDSTREAM MLP & DIVERSIFIED NATURAL GAS EVENT – Markwest Energy Partners, L.P. – slide 12
    Utica Segment Key Considerations We are developing a leading position in the southern core of the highly 2014 13% prospective Utica Shale Forecasted Segment We have partnered with The Energy & Minerals Group (EMG) to develop fully…
  13. MORGAN STANLEY MIDSTREAM MLP & DIVERSIFIED NATURAL GAS EVENT – Markwest Energy Partners, L.P. – slide 13
    Utica Processing Capacity Growing to over 1.1 Bcf/d of processing capacity Seneca IV 2015 1,000 800 Cadiz II 2014 Seneca III 600 400 Seneca I, II Cadiz I Current & Refrigeration 200 0 Processing Capacity…
  14. MORGAN STANLEY MIDSTREAM MLP & DIVERSIFIED NATURAL GAS EVENT – Markwest Energy Partners, L.P. – slide 14
    Marcellus & Utica: 23 Major Projects Complete Crawford 19 Major projects under construction KEYSTONE COMPLEX Venango Bluestone ITrumbull & Sarsen I 90 MMcf/d Complete Mercer Bluestone II 120 MMcf/d 2Q14 HOPEDALE FRACTIONATOR…
  15. MORGAN STANLEY MIDSTREAM MLP & DIVERSIFIED NATURAL GAS EVENT – Markwest Energy Partners, L.P. – slide 15
    Marcellus & Utica: Full-Service Capabilities Lake Erie Michigan Keystone Pennsylvania Condensate JV Hopedale Houston Cadiz Ohio Majorsville MWE Complexes Seneca MWE Gathering Systems Mobley Rich-Gas Areas ATEX Express…
  16. MORGAN STANLEY MIDSTREAM MLP & DIVERSIFIED NATURAL GAS EVENT – Markwest Energy Partners, L.P. – slide 16
    Northeast Ethane: Innovative Solutions MarkWests fractionation solutions are a critical link to the successful development of ethane pipeline projects in the Northeast MarkWest is currently operating two large-scale de-ethanization…
  17. MORGAN STANLEY MIDSTREAM MLP & DIVERSIFIED NATURAL GAS EVENT – Markwest Energy Partners, L.P. – slide 17
    Hopedale Fractionator: Growing Our Integrated Asset Base In January 2014, MarkWest began operations of its third world-class fractionation and marketing complex in the Northeast The Hopedale fractionator is located in Harrison…
  18. MORGAN STANLEY MIDSTREAM MLP & DIVERSIFIED NATURAL GAS EVENT – Markwest Energy Partners, L.P. – slide 18
    LPG Exports by World Region North America to provide substantial LPG export supply 100 North America expected to The shale gas revolution taking increase exports by place in key U.S. resources plays such as the Marcellus and…
  19. MORGAN STANLEY MIDSTREAM MLP & DIVERSIFIED NATURAL GAS EVENT – Markwest Energy Partners, L.P. – slide 19
    World LPG Demand by Region Asia will become the primary demand Asian Demand for LPG at Forefront market for LPG, as strong economic growth and rise in personal incomes 160 will drive consumption 140 LPG imports in Asia will be…
  20. MORGAN STANLEY MIDSTREAM MLP & DIVERSIFIED NATURAL GAS EVENT – Markwest Energy Partners, L.P. – slide 20
    Capital Investments 2014 Capital Expenditures Forecast of 1.8 to 2.3 billion 2014 Capital Forecast by Segment 2014 Capital Forecast by Category 60% Utica 26% 50% 40% 30% 20% 10% Southwest Marcellus 7% 67% 0%…
  21. MORGAN STANLEY MIDSTREAM MLP & DIVERSIFIED NATURAL GAS EVENT – Markwest Energy Partners, L.P. – slide 21
    Liquidity MarkWest has 1 billion of liquidity MarkWest preserves a strong balance sheet to fund growth As of today, we have 1 billion of liquidity to support our capital investment program As of December 31, 2013, our total Debt…
  22. MORGAN STANLEY MIDSTREAM MLP & DIVERSIFIED NATURAL GAS EVENT – Markwest Energy Partners, L.P. – slide 22
    Increasing Fee-Based Income 2014 fee-based net operating margin is forecasted to exceed 70% 75% Over 70% Net Operating Margin (%) 50% Increase of 3x since 61% 2008 53% 25% 39% 38% 38% 25% 0%…
  23. MORGAN STANLEY MIDSTREAM MLP & DIVERSIFIED NATURAL GAS EVENT – Markwest Energy Partners, L.P. – slide 23
    Total Volume Growth Base case total volumes are forecasted to increase over 50% from 2013 5,000 62% 52% 4,000 42% Total Volumes (MMcf/d) 3,000 2,000 1,000 0 2009 2010 2011 2012 2013 2014F 24
  24. MORGAN STANLEY MIDSTREAM MLP & DIVERSIFIED NATURAL GAS EVENT – Markwest Energy Partners, L.P. – slide 24
    Distributable Cash Flow: Forecast 2014 DCF Forecast of 600 to 690 million 700 43% 33% Distributable Cash Flow ( in millions) 600 24% 500 DCF of 483.4 million 400 300 200 100 0 2009 2010 2011 2012 2013…
  25. MORGAN STANLEY MIDSTREAM MLP & DIVERSIFIED NATURAL GAS EVENT – Markwest Energy Partners, L.P. – slide 25
    MarkWest Investment Considerations: What to Expect Maintain strong customer base in key resource plays with high-quality assets and exceptional service Continue to execute on growth projects that are well diversified across the…
  26. MORGAN STANLEY MIDSTREAM MLP & DIVERSIFIED NATURAL GAS EVENT – Markwest Energy Partners, L.P. – slide 26
    APPENDIX
  27. MORGAN STANLEY MIDSTREAM MLP & DIVERSIFIED NATURAL GAS EVENT – Markwest Energy Partners, L.P. – slide 27
    Reconciliation of DCF and Distribution Coverage Year Ended Year Ended ( in millions) 12/31/2012 12/31/2013 Net Income 217.0 40.4 Depreciation, amortization, impairment, and other non-cash operating 237.6 365.7 expenses Loss…
  28. MORGAN STANLEY MIDSTREAM MLP & DIVERSIFIED NATURAL GAS EVENT – Markwest Energy Partners, L.P. – slide 28
    Reconciliation of Adjusted EBITDA Year Ended Year Ended Year Ended ( in millions) 12/31/2011 12/31/2012 12/31/2013 Net income 104.8 217.0 40.4 Non-cash compensation expense 3.4 8.2 7.8 Non-cash derivative activity (0.3) (102.1)…
  29. MORGAN STANLEY MIDSTREAM MLP & DIVERSIFIED NATURAL GAS EVENT – Markwest Energy Partners, L.P. – slide 29
    Reconciliation of Net Operating Margin Year Ended Year Ended ( in millions) 12/31/2012 12/31/2013 Income from operations 378.3 245.9 Facility expense 206.9 291.1 Derivative activity (69.1) 25.8 Revenue deferral adjustment…
  30. MORGAN STANLEY MIDSTREAM MLP & DIVERSIFIED NATURAL GAS EVENT – Markwest Energy Partners, L.P. – slide 30
    1515 Arapahoe Street Tower 1, Suite 1600 Denver, Colorado 80202 Phone: 303-925-9200 Investor Relations: 866-858-0482 Email: investorrelationsmarkwest.com Website: www.markwest.com

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