Summit Midstream Corporation · NYSE:SMC
Summit Midstream — Summit Midstream Partners — Credit Suisse 4th Annual MLP Energy and Logistics Conference 2016
31 slides from Summit Midstream's conference presentation, Jun 21, 2016
Slide 1: Credit Suisse 4th Annual MLP Energy and Logistics Conference
CONFIDENTIAL Credit Suisse 4th Annual MLP Energy and Logistics Conference June 21, 2016
Slide 2: Disclaimers
Disclaimers FORWARD-LOOKING STATEMENTS This presentation includes certain statements, estimates and projections concerning expectations for the future that are forward looking within the meaning of the federal securities laws. These “forward-looking” statements appear in a number of places in this p
Slide 3: Summit Midstream Partners, LP Overview
Summit Midstream Partners, LP Overview Growth-oriented midstream MLP focused on natural gas, crude oil and produced water gathering General Overview Distribution Per LP Unit $ / Unit Ticker SMLP $2.400 Exchange NYSE $2.300 (1) Current SMLP Price Per Unit $ 21.60 $2.200 Total Units Outstanding 67,941
Slide 4: Summit Midstream Organizational Structure
Summit Midstream Organizational Structure (1) 100% Summit Midstream Partners, LLC (“Summit Investments”)(2) 100% Summit Midstream Partners Holdings, LLC (“SMP Holdings”) 2.0% GP Interest / IDRs 43.7% LP Interest – 29.7MM Common Units Public Unit Holders 45.4% LP Interest Summit Midstream Partners, L
Slide 5: 2016 Drop Down Overview
2016 Drop Down Overview —————————————————————————————————————————————O—————O————e—eeeeeeeererererererer
Slide 6: Transformational Transaction with Exposure to High Growth Utica Shale
Transformational Transaction with Exposure to High Growth Utica Shale On March 3, 2016, SMLP closed the drop down acquisition of all operating assets from Summit Investments Transforms SMLP into a larger, more diversified organic growth story through the acquisition of Summit Investments’ operatin
Slide 7: Geographically Diverse Operating Footprint
Geographically Diverse Operating Footprint SMLP adds high-growth Utica Shale operations to its diversified portfolio of assets 1 Ohio Gathering • Premier natural gas gathering system spanning across the condensate, wet gas and dry gas windows in the core of the Utica Shale in southeastern Ohio with
Slide 8: 2016 Drop Down Transaction Details
2016 Drop Down Transaction Details Transaction expected to be immediately accretive to DCF per unit; significantly enhances distribution coverage On March 3, 2016 (the “Initial Close”), SMLP made a cash payment of $360 million to Summit Investments (the “Initial Payment”) ‒ Initial Payment was fun
Slide 9: No Need for SMLP to Access Capital Markets
No Need for SMLP to Access Capital Markets Capital Expenditures $1,200 Majority of capex and associated development risk already incurred $900 by Summit Investments $s in millions Estimate ~ $150 to $200 million of total capex per year $600 $300 $0 2014A 2015A 2016E 2017E 2018E 2019E Legacy SMLP
Slide 10: 2016 Drop Down Transaction Highlights
2016 Drop Down Transaction Highlights Transaction further diversifies SMLP’s geographic footprint, customer mix and commodity exposure while enhancing its operating scale, growth and credit profile Utica assets represent over 80% to 90% of adj. EBITDA contribution of the Drop Down Assets Over 90
Slide 11: 2016 Financial Guidance
2016 Financial Guidance SMLP will take a measured approach with regard to DPU growth in 2016. In the near-term, SMLP intends to focus on building distribution coverage and strengthening its balance sheet Guidance Range FY 2016 ($ in millions) Low High Adjusted EBITDA $260.0 $290.0 Distribution Cover
Slide 12: SMLP Overview
SMLP Overview
Slide 13: SMLP Investment Considerations & Operating Statistics
SMLP Investment Considerations & Operating Statistics SMLP Investment Considerations 98% of revenue is fee-based Fee-Based 3.5 Tcfe of remaining MVCs through 2026 provide downside protection Contract Portfolio Provides for stable cash flow and limited direct commodity price exposure Active o
Slide 14: Differentiated Contract Portfolio with Significant MVC Underpinning
Differentiated Contract Portfolio with Significant MVC Underpinning SMLP Contract Portfolio Overview Primarily long-term and fee-based contracts for natural gas, NGL, Avg. MVCs Through 2020 = 59% of 1Q 2016 Operating Throughput crude oil and produced water gathering Weighted-average remaining MV
Slide 15: Evolution of SMLP's Business Profile
Evolution of SMLP’s Business Profile 2016 Drop Down continues to further diversify SMLP geographically while enhancing its core focus on fee-based revenue Revenue Composition 2012 at IPO 2016E 2019E Variable Variable Variable 3% 2% 2% Fee- Fee- Fee- Based(1) Based(1) Based(1) 97% 98% 98% Adjusted EB
Slide 16: Demonstrated Track Record of Sponsor Support
Demonstrated Track Record of Sponsor Support Summit Investments has a proven track record of supporting SMLP through unit purchases, competitive drop down multiples, and re-investment of sale proceeds Estimated $1.2 billion Substantial pre-IPO equity $305 million drop down of all capital support wit
Slide 17: SMLP Segment Overview
SMLP Segment Overview
Slide 18: Utica Shale
Utica Shale Natural Gas Gathering and Condensate Stabilization Assets Located in the Utica Shale Segment Summary Map of Utica Assets Asset Summit Utica and Ohio Gathering Reportable Segment Utica Shale Summit Utica 1Q 2016 Throughput 132 MMcf/d Summit Utica Throughput Capacity 300 MMcf/d Basin Serve
Slide 19: Williston Basin
Williston Basin Crude oil, produced water, and associated natural gas gathering in the Bakken Shale Segment Summary Map of Williston Assets Assets Bison Midstream, Polar & Divide, Tioga Midstream Polar & Divide Reportable Segment Williston Stampede Lateral 1Q 2016 Natural Gas Throughput 25 MMcf/d 1Q
Slide 20: Piceance/DJ Basins
Piceance/DJ Basins Positioned in the core of the Piceance/DJ Basins with exposure to the liquids-rich Mesaverde formation as well as the emerging Mancos & Niobrara formations Segment Summary Map of Piceance/DJ Assets Asset Grand River and Niobrara G&P Reportable Segment Piceance/DJ Basins 1Q 2016 Th
Slide 21: Barnett Shale
Barnett Shale Natural gas gathering in the “core of the core” of the Barnett Segment Summary Map of Barnett Assets Asset DFW Midstream Reportable Segment Barnett Shale 1Q 2016 Throughput 341 MMcf/d Throughput Capacity 480 MMcf/d Basin Served Ft. Worth Underlying Formation Barnett Primary Counties Se
Slide 22: Marcellus Shale
Marcellus Shale High-pressure gas gathering and compression assets located in the rich gas window of the Marcellus Shale Segment Summary Map of Marcellus Shale Assets Asset Mountaineer Midstream Reportable Segment Marcellus Shale 1Q 2016 Throughput 453 MMcf/d Throughput Capacity 1,050 MMcf/d Basin S
Slide 23: SMLP Financial Overview
SMLP Financial Overview ee
Slide 24: Conservative Financial Strategy
Conservative Financial Strategy Strong balance sheet and liquidity enables SMLP to execute its growth strategy Actual Targeting long-term leverage ratio of 3.5x – 4.0x ($ in millions) Mar-16 $529 million of borrowing capacity at March 31, 2016 under $1.25 billion revolver Cash and Cash Equivalen
Slide 25: SMLP Financial Profile
SMLP Financial Profile Volume Gathered Capital Expenditures(1) MMcf/d Mbbl/d $MM 1,600 1,498 1,523 95 100 1,423 $1,000 $879 1,139 68 80 1,200 $750 60 800 41 $500 40 $358 $250 400 $250 11 20 $77 0 0 $0 2013 2014 2015 1Q 2016 2013 2014 2015 1Q 2016 Gas (MMcf/d) Liquids (Mbbl/d) Direct Capex Capital Ca
Slide 26: Appendix: Non-GAAP Reconciliations
Appendix: Non-GAAP Reconciliations
Slide 27: Segment Adjusted EBITDA
Segment Adjusted EBITDA Three Months Ended March 31, ($s in 000s) 2016 2015 Segment Adjusted EBITDA Utica Shale $15,577 $5,206 Williston Basin 19,719 10,975 Piceance/DJ Basins 24,816 28,702 Barnett Shale 14,078 16,760 Marcellus Shale 4,600 6,536 Total reportable segment adjusted EBITDA $78,790 $68,1
Slide 28: Non-GAAP Reconciliations
Non-GAAP Reconciliations Three Months Ended March 31, Year Ended December 31, ($s in 000s) 2016 2015 2015 2014 2013 Net Loss ($3,665) ($2,485) ($222,228) ($47,368) $47,008 Add: Interest expense 15,882 14,904 59,092 48,586 21,314 Deferred purchase price obligation expense 7,463 - - - - Income tax exp
Slide 29: Reconciliation of EBITDA to Adjusted Distributable Cash Flow
Reconciliation of EBITDA to Adjusted Distributable Cash Flow Three Months Ended March 31, Variance ($s in 000s) 2016 2015 $ % Adjusted Distributable Cash Flow: EBITDA $47,446 $38,629 $8,817 22.8% Add: (1) Proportional adjusted EBITDA for equity method investees 12,388 5,263 7,125 135.4% (2) Adjustme
Slide 30: 1Q 2016 MVC Shortfall Payments
1Q 2016 MVC Shortfall Payments Three Months Ended March 31, 2016 MVC Gathering Adjustments to MVC Net Impact to ($s in 000s) Billings Revenue Shortfall Payments Adjusted EBITDA Net change in deferred revenue related to MVC shortfall payments: Utica Shale - - - - Williston Basin 235 - 235 235 Piceanc
Slide 31: Research Coverage / Contact Information
Research Coverage / Contact Information Summit Midstream Partners, LP (NYSE: SMLP) Research Coverage Bank of America Merrill Lynch Barclays Capital Capital One Securities Citigroup Global Markets Credit Suisse Deutsche Bank Securities Goldman Sachs Janney Montgomery Scott Robert W. Baird & Co. RBC C
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