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Morgan Stanley Midstream MLP Conference – Midcoast Energy Partners, L.P.

Midcoast Energy Partners, L.P. · Mar 4, 2014 · 20 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. Morgan Stanley Midstream MLP Conference – Midcoast Energy Partners, L.P. – slide 1
    Midcoast Energy Partners, L.P. Investment Community Presentation March 2014
  2. Morgan Stanley Midstream MLP Conference – Midcoast Energy Partners, L.P. – slide 2
    MEP Organizational Structure Enbridge Inc. (NYSE: ENB) 21% interest (indirect) (including GP interest) Enbridge Energy Partners, L.P. (NYSE: EEP) 100% 100% ownership interest ownership interest 52% LP interest Public…
  3. Morgan Stanley Midstream MLP Conference – Midcoast Energy Partners, L.P. – slide 3
    MEP: Focused Gas Operations Past State Gas & Liquids Operations Gas-Focused Operations Liquids-Focused Operations Current State Enhances Strategic Focus of Each Partnership Increases Ability to Respond to Market…
  4. Morgan Stanley Midstream MLP Conference – Midcoast Energy Partners, L.P. – slide 4
    MEP Investment Proposition Predictable Distribution Growth Enhanced Strong Access to Sponsor and Capital Management Large Scale, Diversified Business Large Scale, Strategically Diversified Strong Sponsor Positioned…
  5. Morgan Stanley Midstream MLP Conference – Midcoast Energy Partners, L.P. – slide 5
    Investment Highlights Attractive Yield MEP Business Overview 39% interest in Midcoast Operating 10% Large scale natural gas/NGL midstream business positioned in key producing 9% basins MEP: 6.1% 8% Offer integrated solutions…
  6. Morgan Stanley Midstream MLP Conference – Midcoast Energy Partners, L.P. – slide 6
    Predictable Distribution Growth EBITDA Growth Supported by Drop-downs and Organic Growth Target: Mid-Teens Annual Distribution Growth Through 2017 100% Natural Gas business ownership 61% 39% IPOIPO 2014 2017e (2) NTM…
  7. Morgan Stanley Midstream MLP Conference – Midcoast Energy Partners, L.P. – slide 7
    Strong Sponsor and Management Leveraging Enbridge Inc. & Enbridge Energy Partners, L.P. Strong Sponsors Enbridge Inc. (ENB) A-/Baa1 36 billion equity market capitalization Enbridge Energy Partners, L.P. (EEP) BBB/Baa2 11 billion…
  8. Morgan Stanley Midstream MLP Conference – Midcoast Energy Partners, L.P. – slide 8
    Strategically Positioned Asset Base Midcoast Business Segments Anadarko System Gathering, Processing & Transportation: Ajax Processing Plant strong asset foundation 90% EBITDA in service 3Q 2013 Logistics & Marketing 10% EBITDA…
  9. Morgan Stanley Midstream MLP Conference – Midcoast Energy Partners, L.P. – slide 9
    Business Opportunities Gathering, Processing & Transportation Logistics & Marketing Enhance end-market access Expand condensate treating, stabilization, and liquids takeaway Pursue vertical integration opportunities Specialty…
  10. Morgan Stanley Midstream MLP Conference – Midcoast Energy Partners, L.P. – slide 10
    Texas Express Overview of Assets Participation in natural gas and NGL value chain Description of Assets Strategic Benefits NGL Mainline System Addresses Mid-Continent, Rockies and West Texas NGL constraints JV with Enterprise…
  11. Morgan Stanley Midstream MLP Conference – Midcoast Energy Partners, L.P. – slide 11
    Large Scale, Diversified Business Building on Existing Strengths MEP Business Strategy Midstream Peer Comparables (1) Company 2012 Gas Processed 2012 NGLs Maintain safe and reliable operations (MMcf/d) Produced (Bpd) DCP Midstream…
  12. Morgan Stanley Midstream MLP Conference – Midcoast Energy Partners, L.P. – slide 12
    Large Scale, Diversified Business Enhancing Competitive Position Offering Integrated Solutions Across Midstream Value Chain midcoastpartners.com 12
  13. Morgan Stanley Midstream MLP Conference – Midcoast Energy Partners, L.P. – slide 13
    Financial Outlook 2014 Midcoast Operating, LP 2014e Midcoast Energy Partners (MEP) Adjusted EBITDA* 235 - 265 Adjusted EBITDA(1) 105 125 Distributable Cash 75 95 Depreciation 140 150 Risk Profile (before hedging) (2) Operating…
  14. Morgan Stanley Midstream MLP Conference – Midcoast Energy Partners, L.P. – slide 14
    Capital Forecast & Available Liquidity 2014 Capital Expenditures(1) Available Liquidity Beckville Gas Processing Plant 110 millions 850 MM Credit Facility 1,000 Well Connect Expansion Capital 50 Texas Express NGL System 20 800…
  15. Morgan Stanley Midstream MLP Conference – Midcoast Energy Partners, L.P. – slide 15
    Key Takeaways Predictable distribution growth mid-teens CAGR through 2017 Visible drop-down opportunities 1st drop-down post-IPO expected mid-2014; anticipated 100% debt-funded Accretive organic growth projects Large-scale,…
  16. Morgan Stanley Midstream MLP Conference – Midcoast Energy Partners, L.P. – slide 16
    Appendix
  17. Morgan Stanley Midstream MLP Conference – Midcoast Energy Partners, L.P. – slide 17
    Financial Support from Sponsors Financial Support Agreement Working Capital Agreement Purpose Derivative contracts, natural gas purchasing Working capital financing agreement and NGL purchase agreement support Borrower Midcoast…
  18. Morgan Stanley Midstream MLP Conference – Midcoast Energy Partners, L.P. – slide 18
    Logistics and Marketing Segment Origination Downstream Pathing Gas Marketing Market natural gas primarily at local market centers and major market hubs Utilize third-party transportation and storage contracts to facilitate marketing…
  19. Morgan Stanley Midstream MLP Conference – Midcoast Energy Partners, L.P. – slide 19
    Attractive Entry Point in NGL Cycle Distribution growth enhanced by cyclical NGL price improvement (/gallon) 1.40 1.30 1.30 Composite NGL Gallon Price History 1.20 1.14 1.10 1.03 Average: 1.01 1.02 1.00 0.93 0.93 0.85 0.84…
  20. Morgan Stanley Midstream MLP Conference – Midcoast Energy Partners, L.P. – slide 20
    Disciplined Hedging Policy Hedging Policy No speculative positions Requires Midcoast Operating to hedge on a rolling quarterly basis Hedging targets: 70% hedged in year 1; 50% hedged in year 2 Direct product hedging 2014 Estimated…

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