WEEK 47 NOVEMBER 23, MLP Protocol FREE VERSION

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1 MLP PROTOCOL WEEK 47 NOVEMBER 23, 2012 FREE VERSION

2 Contact Information Philip Trinder ADDITIONAL MLP PROTOCOL RESOURCES Monthly Analytics Asset Book Company Presentation Links PRESIDENT 4020 MARLOWE HOUSTON, TEXAS OFFICE: MOBILE: STOCKTWITS / Sprint Portfolio Performance RECENT SEEKING ALPHA ARTICLES 10/25/12 MLP IPO Review: MPLX, L.P. 10/25/12 MLP IPO Review: Lehigh Gas Partners, L.P. 10/16/12 Upstream Rankings 9/27/12 MLP IPO Review: Summit Midstream Partners, L.P. 9/19/12 MLP IPO Review: Susser Petroleum Partners, L.P. 9/13/12 Gathering and Processing Rankings 8/24/12 MLPs and Relative Value Versus U.S. Treasuries 8/15/12 MLP IPO Review: Hi-Crush Partners, L.P. 7/20/12 A Ranking Protocol for the MLP Space 7/16/12 The Two Most Tax Efficient Investments in the MLP Space DISCLAIMER This presentation and the information contained herein, as well as any additional documents and explanations (together the Presentation ), are for information purposes only, and ( MLPP ) is not soliciting any action based upon it. Opinions expressed herein are MLPP s present opinions only. This Presentation is based upon information that MLPP considers reliable, but MLPP does not represent, guarantee, or warrant, expressly or implicitly, that the Presentation is accurate, complete, or suitable for any particular purpose, and it should not be relied upon as such. MLPP is not obliged to update or periodically review the Presentation. MLPP accepts no liability with respect to, or arising directly or indirectly out of, the Presentation. In addition, there can be no guarantee that any projection, forecast or opinion in this presentation will be realized. Opinions expressed herein are subject to change without notice. You are advised to make an independent review and reach your own conclusions regarding the economic risks and benefits of any investment and the legal, credit, tax, accounting and other aspects of such investment in relation to your particular circumstances. We may from time to time have long or short positions in such securities or in options, futures, or other derivative instruments based thereon. All trade names, trade marks, service marks, and logos herein are the property of their respective owners who retain all proprietary rights over their use. No part of this document may be reproduced in any manner without written permission All rights reserved. W W W. M L P P R O T O C O L. C O M 1

3 MONTHLY ANALYTICS REPORTS 3YR and 5YR FYAT Data Correlations and History Long Term Trends Monthly Analytics Reports What is the? The includes analytical reports covering substantially all of the energy related Master Limited Partnerships. The full Monthly Analytics reports include the following: Forward Yield After Tax ( FYAT ) projections, Valuation Coverage Ratios ( VCR ), FYATs / VCR and segment rankings on all metrics (updated rankings in subscriber version of the Weekly Snapshot reports) Long term historical charts Charts showing the U.S. Treasury Yield curve migration (since 2006) and historical Alerian MLP Index yield trend vs. 10 year and 20 year U.S. Treasury yield trends (since 1995) Distribution history chart showing years that each MLP has maintained or increased their distributions (color coded by segment within the MLP coverage universe) Yield vs. distribution growth correlation analyses Recent IPO scorecard and IPO forward calendar Full peer group analysis for 12 comparable group segments with relative value analysis and valuation and leverage vs. yield charts Distribution Coverage Ratio ( DCR ) studies for each segment comparing DCRs to historical distribution growth, current yields, projected distribution growth and resulting 3 year forward yield after tax, maintenance capex, Total Enterprise Valuation, and Distributable Cash Flow per L.P. unit Forward Yield After Tax ( FYAT ) Allows comparison of the estimated minimum yield investors net across the broad MLP group and is based upon the following assumptions for each MLP: Distribution growth rates Estimated tax deferral of the distributions Highest current individual tax rate (35% for now, the potential increase to 43.4% is less impactful to the projected after tax yields than expected due to the tax deferred nature of MLP distributions) Segment Comp Groups 2

4 23.1% 23.4% % 33.4% 21.4% 41.6% 31.8% 18.4% 21.2% 42.2% 29.3% 42.2% 41.6% 33.4% 32.9% 31.8% % 23.4% 23.1% 21.4% 21.2% 18.4% Top Ranked by 3 Year Forward Yield After Tax Top Ranked by Segment Highest to Lowest with Relative Risk 45% 4 35% 3 25% 15% 5% ETP BPL AMID NKA MEMP NGL CPLP RNO AHGP RNF ALDW STON Nat Gas & NGL Pipes Crude & Ref Prod Pipes G & P T & S Upstream Propane Marine Coal General Partners ( GP ) Variable Rate D & M Other 45% 4 35% 3 25% 15% 5% ALDW CPLP MEMP NKA RNO AMID STON BPL ETP NGL RNF AHGP D & M Marine Upstream T & S Coal G & P Other Crude & Nat Gas & Ref Prod Pipes NGL Pipes Relative Risk Scale DCR < 1.0x* Propane Variable Rate General Partners ( GP ) *Additional MLPs in the chart shown at higher risk levels also have Distribution Coverage Ratios (DCRs) less than 1.0x. Risky Very Risky Extremely Risky Top Ranked Summary Table Top Rankings Current Yield 3YR FYAT 5YR FYAT Nat Gas & NGL Pipes ETP 8.3% ETP 23.1% ETP 38.5% Crude & Ref Prod Pipes NS 10.2% BPL 23.4% BPL 39. Gath & Process ( G & P ) AMID 10.8% AMID 30. AMID 50. Terminal & Storage ( T & S ) NKA 11.8% NKA 32.9% NKA 54.8% Upstream MEMP 11.4% MEMP 33.4% MEMP 58.6% Propane FGP 11. NGL 21.4% NGL 35.6% Marine CPLP 14. CPLP 41.6% CPLP 69.3% Coal OXF 12.6% RNO 31.8% RNO 53. General Partners ( GP ) NSH 8.1% AHGP 18.4% AHGP 33.9% Variable Rate TNH 7.6% RNF 21.2% RNF 32.3% Downstream & Marketing ALDW 17. ALDW 42.2% ALDW 62.8% Other HCLP 12.3% STON 29.3% STON 49.3% ALL RANKINGS ARE BASED ON THE SUM OF PROJECTED 3 YEARS OF DISTRIBUTIONS/DIVIDENDS AFTER ADJUSTING FOR ESTIMATED TAXES WITHHELD AT THE HIGHEST APPLICABLE RATE DIVIDED BY THE CURRENT UNIT OR STOCK PRICE. HIGHER YIELDS EQUATE TO HIGHER RISK. PLEASE RE-READ THE DISCLAIMER. 3

5 Heat Index / Group Moving Averages Moving Average Heat Index Downstream & Marketing 3 Variable Rate 30 Terminaling & Storage 275% Propane 25 Crude & Refined Products Pipelines 238% General Partners 225% Natural Gas & NGL Pipelines 189% Gathering & Processing 176% Other 175% Upstream 154% Marine 83% Coal Total 2,385% NOT SCALE ADJUSTED - 2/17/12 3/17/12 4/17/12 5/17/12 6/17/12 7/17/12 8/17/12 9/17/12 10/17/12 11/17/12 Total Moving Average Heat Index AMZ AMZ SCALE ADJUSTED 300 2/17/12 3/17/12 4/17/12 5/17/12 6/17/12 7/17/12 8/17/12 9/17/12 10/17/12 11/17/12 Total Moving Average Heat Index NOTE: The addition of the Downstream & Marketing segment skews the Heat Index data by increasing the maximum score, so best to give the charts at least until year end to develop or show any possible pattern. AMZ Current Price vs. 20 Day Moving Average 1 Current Price vs. 50 Day Moving Average 1 Current Price vs. 200 Day Moving Average 1 66% 34% 77% 23% 52% 48% 20 Day Moving Average / 200 Day Moving Average 1 42% 58% 20 Day Moving Average / 50 Day Moving Average 1 77% 23% 35% 50 Day Moving Average / 200 Day Moving Average 2 65% Key: % Abov e % Below n = 99 (1) Included in the Moving Average Heat Index calculation, by segment. (2) NOT included in the Moving Average Heat Index calculations. 4

6 MPLX 3.9% EQM 4.9% RRMS 4.9% SDLP 5.8% PDH 6.2% NRGM 6.6% DKL 6.9% SXE 6.9% SUSP 7.2% LNCO 7.6% SMLP 8.4% LGP 8.8% MCEP 9.5% MEMP 11.4% HCLP 12.3% NTI 13. ALDW 17. LGP (1%) SMLP (5%) MEMP (9%) HCLP (9%) PDH (34%) RRMS 6 NTI 56% NRGM 38% EQM 36% MPLX 23% SDLP 21% SUSP 19% SXE 15% ALDW 14% MCEP 14% DKL 4% LNCO 2% 7/1/11 7/29/11 8/26/11 9/23/11 10/21/11 11/18/11 12/16/11 1/13/12 2/10/12 3/9/12 4/6/12 5/4/12 6/1/12 6/29/12 7/27/12 8/24/12 9/21/12 10/19/12 11/16/ % 17.6% % 24.2% 17.6% 26.2% 27.6% 11.2% 19.4% 27.3% 23.2% 5.7% 4.7% Forward Yield Summaries / MLP IPO Scorecard 3 Year Forward Yield After Tax ( FYAT ) 3 25% 15% 5% Segment Averages 25% 15% 5% 11/23/2012 NGas Pipe Crude Pipe G & P T & S Upstream Propane Marine Coal GP Variable Rate D & M Other SPY 20Y UST Average 3YR FYAT STSPY SPY 3YR FYAT ST20YR UST 20Y UST 3YR FYAT Recent IPO Current Yields Price Performance Since IPO 18% 16% 14% 12% 8% 6% 4% 8.3% () (4) 14.5% 2% Source: Company filings, press releases, presentations and internal estimates, Recent IPOs are defined as being public for less than 365 calendar days or the 10 most recent IPOs. 5

7 LGP (1%) NGLS (1%) BKEP (1%) PNG (1%) TOO (3%) KMR (3%) FGP (4%) MEMP (4%) KMP (4%) STON (5%) BBEP (5%) SMLP (5%) GMLP (6%) ETP (6%) LRE (6%) BWP (7%) EVEP (7%) SEP (7%) MWE (8%) NMM (8%) PVR (8%) HCLP (9%) MMLP (9%) CPNO () RGP () XTEX () APL () PSE () EEQ (11%) APU (11%) AMID (12%) QRE (12%) DPM (12%) AHGP (13%) SGU (13%) EEP (13%) LGCY (14%) TCP (14%) WPZ (15%) SPH (18%) NSH (19%) EROC (22%) BPL (23%) NRGY (23%) NS (24%) ARLP (24%) RNO (25%) CMLP (29%) NRP (31%) CEP (33%) PDH (34%) FUN 58% NTI 56% RRMS 56% CLMT 54% ATLS 4 EQM 36% NKA 34% TLLP 34% OILT 3 TNH 29% SXL 28% MMP 27% PAA 25% TRGP 24% NRGM 24% BIP 23% MPLX 23% GEL 23% ACMP 22% SDLP 21% HEP 21% WES SUSP 19% GSJK 17% CQP 17% GLP 16% SXE 15% ALDW 14% NGL 14% ARP 13% SPY 13% EPD 12% TGP 12% MCEP 11% ETE 11% CPLP 9% EXLP 8% EPB 6% KMI 5% DKL 4% TLP 4% UAN 3% VNR 3% LINE 3% LNCO 2% AMZ 1% OKS 1% XTXI RNF 131% EXH 122% EQM () LGCY () BKEP () NMM (1%) SUSP (1%) TOO (1%) MMLP (1%) MPLX (1%) NTI (2%) AMID (2%) CEP (3%) MEMP (4%) ARP (6%) RNO 16% FGP 16% ALDW 14% SDLP 11% VNR 9% LRE 9% GLP 9% GMLP 8% XTXI 8% CQP 7% SEP 7% CLMT 7% NS 7% UAN 7% EEQ 7% HEP 6% NSH 6% GEL 6% APL 6% EPB 6% BPL 6% RRMS 6% NRP 6% RNF 6% ACMP 5% MWE 5% MMP 5% APU 5% BWP 5% MCEP 5% SGU 5% NKA 5% PSE 5% KMI 4% GSJK 4% NGLS 4% QRE 4% TRGP 4% SPY 4% KMR 4% KMP 3% NRGM 3% TNH 3% AMZ 3% EXH 3% DKL 3% ETE 3% SXL 3% STON 3% BIP 3% LGP 3% CPNO 3% ARLP 3% TGP 3% ATLS 3% EPD 3% EROC 2% WPZ 2% LNCO 2% PDH 2% PAA 2% OKS 2% WES 2% BBEP 2% EVEP 2% FUN 2% LINE 2% ETP 2% PVR 2% RGP 2% EEP 2% EXLP 2% NRGY 1% PNG 1% TLP 1% OILT 1% TLLP 1% CMLP 1% CPLP 1% XTEX 1% SPH 1% TCP 1% DPM SMLP AHGP NGL SXE OXF 33% 1 Week and YTD Price Performance 1 Week Price Performance 35% 3 25% 15% 5% (5%) () Year to Date Price Performance () (4) (6) 6

8 CLMT NTI RRMS ATLS TLLP FUN GSJK ACMP SXL TRGP LRE NKA TNH PAA NRGM OXF OILT MMP EVEP CQP GEL BIP WES GLP ETE UAN FGP CPLP HEP NRGY CPNO VNR NGL TGP EQM MCEP AHGP APL BKEP OKS EXLP NMM KMI QRE TLP EPD RNO EPB BBEP SGU XTXI STON KMR ARLP LINE DPM PNG SPH HCLP PVR ARP NGLS PDH MEMP SDLP EROC BPL MWE APU KMP PSE GMLP RGP CMLP WPZ XTEX NS NSH MMLP NRP TCP BWP TOO CEP EEQ SEP ETP LGCY SUSP EEP AMID DKL MPLX LNCO SXE LGP SMLP EXH RNF CEP OXF GEL ETE GSJK PAA TRGP SXL MMP SXE EPB OKS KMR ACMP MPLX LNCO VNR NRGM TLLP RRMS EPD RNF EXLP WES CLMT BIP EXH GLP KMP SUSP BWP DKL LGP SEP LINE EQM PVR NGL APU EEP NTI BBEP TGP PNG TOO LRE FUN TLP ETP NKA HEP OILT SMLP DPM ATLS UAN NMM BKEP SPH AHGP EEQ APL TCP MMLP RGP MCEP EVEP SGU MWE FGP KMI MEMP XTEX CPNO EROC NGLS LGCY CPLP NRGY BPL WPZ STON XTXI QRE PSE CQP GMLP NSH TNH CMLP AMID ARP NS ARLP NRP RNO PDH HCLP SDLP % Below 52 Week Highs and % Above 52 Week Lows % Below 52 Week Highs () () (3) (4) (5) (6) (7) Positive number indicates close at a new high % Above 52 Week Lows Negative number indicates close at a new low. 7

9 Glossary and Assumptions Max GP IDR Tier Maximum General Partner ( GP ) Incentive Distribution Right Tier, typically publicly traded Master Limited Partnerships ( MLPs ) will have a General Partner that will receive an increasing share of distributable cash flow upon achieving certain levels of distributions to the Limited Partners up to a maximum of 5. Tax Form Typically MLPs send annual K-1s which add complexity to individual tax returns and also can cause issues if MLPs are held in an IRA account due to UBTI ( Unrelated Business Taxable Income ). If UBTI from MLPs exceeds $1,000 in an IRA then taxes should be paid out of the distributions. Est. Tax Deferral Estimated Tax Deferral represents the amount of the expected distributions that will be treated as a return of capital and used to adjust down the investment tax basis so not taxable until the unit holder sells the security. Next Dist Next Distribution, either the most recently announced quarterly distribution or the last distribution until the next one is announced. For recent IPOs the Next Dist is shown as the Minimum Quarterly Distribution ( MQD ) as per the prospectus; however, the first distribution will be pro-rated over the period of the quarter that the MLP was public so it will be less than the amount shown in the charts. Current Yield AT Estimated Current Yield After Tax, basically after taking into account the amount of distributions that are tax deferred and the effective tax rate on the taxable portion of the distribution. Assumes non-tax deferred MLP distributions are taxed at the highest income tax rate of 35%. Deferred portion of MLP distributions received will lower investor s cost basis over time and result in deferred tax recapture upon sale of the MLP units. Historical Dist Growth Historical Distribution Growth rates, QoQ is Quarter over Quarter, YoY is Year over Year, 3YR and 5YR are the 3 year and 5 year compound annual growth rate ( CAGR ) in the distributions respectively, information will be rolled forward each quarter. U.S. 10 or 20 Year Treasury 10 or 20 Year Treasury forward yields after tax assume a 35% tax rate over the projected periods, so the 3 Year Forward Yield After Tax Undiscounted would be calculated as follows if the Current Treasury Yield was 3.0: (3.0 x (1-.35 tax rate)) x 3 years = 5.85%. 3 YR / 5 YR FWD Dist Growth 3 Year or 5 Year Forward Distribution Growth rate assumptions. 3 YR / 5 YR FYAT 3 Year or 5 Year Forward Yield After Tax, the undiscounted sum of the projected quarterly distributions taking into account the projected growth rate and also the estimated tax deferral divided by the current unit price. 3 YR / 5 YR FYAT / Beta 3 Year or 5 Year Forward Yield After Tax divided by Beta, an attempt to utilize Beta to rank the MLPs by taking into account risk as measured by Beta. 20 / 50 / 200 DMA The 20 Day Moving Average, 50 Day Moving Average and 200 Day Moving Average. TEV Total Enterprise Value, sum of market cap plus total debt less cash. EBITDA Earnings Before Interest Taxes Depreciation and Amortization and other non-cash charges, generally interim period annualized except for Propane segment which is trailing twelve months. ADJ EBITDA Adjusted EBITDA, EBITDA less the cash distributions paid to the GP, effectively represents EBITDA available for the LP unit holders since the TEV is calculated using only the outstanding LP units and any related subordinated units and i-shares/units. TTM Trailing Twelve Months, YTD Year to Date, MRQ Most Recent Quarter. 8

10 Glossary and Assumptions Distributable Cash Flow ( DCF ) generally EBITDA less cash interest expense less maintenance capital expenditures less any cash taxes, represents the amount of cash available to pay distributions. Dist Cov Ratio ( DCR ) Distribution Coverage Ratio, Distributable Cash Flow divided by L.P. plus G.P. distributions, the higher the ratio the better, a ratio below 1.00x means that the MLP is effectively paying some of the distribution using debt (although some MLPs like the Propane MLPs have substantial seasonality of cash flows so in those cases the ratio is better suited to be viewed over a rolling four quarter period). Valuation Coverage Ratio ( VCR ) (TEV / ADJ EBITDA) / Distribution Coverage Ratio. The DCR is generally TTM DCR unless the MRQ DCR is less than 1.00x, if so then the VCR calculation uses the lower MRQ DCR. M Cap Maintenance capital expenditures or sustaining capital expenditures as reported by the companies, generally the amount of capital required to replace partially or fully depreciated/obsolete assets, maintain the existing operating capacity or operating income of an MLP s assets (replace reserves/production for Upstream MLPs), and extend the useful life of assets (routine equipment and pipeline maintenance). Price / DCF LP Current price divided by the Distributable Cash Flow per LP Unit, so total Distributable Cash Flow less the distributions that the General Partner receives. % GP Dist % of total distributions that the General Partner receives, as the distributions increase over time the Incentive Distribution Rights ( IDRs ) provide for more of the distributions to go to the General Partner. STSPY Spread to S&P 500 dividend yield, however, calculated based on the 3 or 5 year estimated forward yield after tax for the S&P 500 using data from SPY ETF as a proxy (assuming a 15% dividend tax rate and a 5% annual growth rate for SPY dividends), then in the chart it is compared to the 3 or 5 year estimated forward yield after tax for the MLP group average to come up with the spread. SEC PV10 The present value of estimated future revenues to be generated from the production of proved reserves calculated in accordance with Securities and Exchange Commission ( SEC ) guidelines, net of estimated lease operating expense, production taxes and future development costs, using price and costs as of the date of estimation without future escalation, without giving effect to non-property related expenses such as general and administrative expenses, debt service, depreciation, depletion and amortization, or Federal income taxes and discounted using an annual discount rate of. PIPE Private Investment in Public Equity. MMBOE / BOE / BCFE / MCFE Million Barrels of Oil Equivalent, Barrels of Oil Equivalent, Billion cubic feet equivalent, Thousand cubic feet equivalent, converted using a 6,000 cubic feet of natural gas to 1 barrel of oil ratio. Moving Average Heat Index calculated by the sum of the percentages of five moving average metrics that are Above, i.e. if the current price is Above the simple 20 day moving average, so maximum Heat Index is 50 and minimum Heat Index is. AMZ Alerian MLP index. Unit and share prices as of market close on the date shown on the cover. 9