WEEKLY SNAPSHOT APRIL 22, MLP Protocol

Transcription

1 WEEKLY SNAPSHOT APRIL 22, 2016

2 Contact Information / Table of Contents PHILIP TRINDER PRESIDENT ptrinder@mlpprotocol.com TABLE OF CONTENTS I MARKETS AND LEVELS 3 II GROUP DATA 12 III SEGMENT YIELD DATA 22 IV GP VALUATION COMPS 27 V SELECTED REGIONAL DATA 31 RESOURCES COMPANY PRESENTATIONS LINKS DEFINITIONS BACKGROUND SEEKING ALPHA I am available for discussions about specific Master Limited Partnership concepts via the Gerson Lehrman Group, Inc. ( GLG ) platform. Alternatively, if your firm does not have access to GLG I can be available for direct discussions. If interested, please feel free to me with any specific requests and I can respond as to whether or not I may be able to add any value in a discussion. My billing rate is $300 per hour. DISCLAIMER ( MLPP ) is not registered as an Investment Advisor or Broker/Dealer with the SEC or in any state or lawful jurisdiction. MLPP relies upon the publisher s exemption from the definition of investment adviser as provided under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. To the extent any of the content published on this website, including transmissions, faxes, recorded voice messages, and any other associated messages/media (hereinafter collectively referred to as Information ) may be deemed investment advice, such Information is impersonal and not tailored to the investment needs or objectives of any specific person. The Information contained within this Web site is provided for informational and educational purposes only, and should be construed as opinion only and not as investment/trading advice and is not meant to be a solicitation regarding any securities mentioned. Opinions expressed herein are MLPP s present opinions only. Any Information is based upon information that MLPP considers reliable, but MLPP does not represent, guarantee, or warrant, expressly or implicitly, that the Information 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 Information. MLPP accepts no liability with respect to, or arising directly or indirectly out of, the Information. 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 strongly 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 and all positions are subject to change without notice. Current position data shown for full disclosure purposes only and is in no way to be considered a recommendation for that specific position. 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 website or Information may be reproduced in any manner without written permission All rights reserved. M L P P R O T O C O L. C O M 1

3 SECTION I MARKETS AND LEVELS

4 MARKETS AND LEVELS RMP () EQGP (7%) GPP () BSM (15%) LMRK (2) TEGP (31%) CPPL (37%) CNXC (39%) PTXP (43%) % 8.5% 11.7% 9.3% % % 18.9% EVA 5% Markets and Levels / Forward Yields / MLP IPO Scorecard 52 Weeks Ago FYE Weeks Ago Week Ago Current Change Indices 4/24/15 12/31/15 3/25/16 4/15/16 4/22/16 1 Year YTD 1 Month 1 Week MLP Index (AMZ) (33.1%) 3.5% 14.5% 10.5% MLP Total Return Index (AMZX) 1, , , , ,171.0 (27.) 6.1% 14.5% 10.5% S&P 500 2, , , , ,091.6 (1.) 2.3% 2.7% 0.5% Yields MLP Index Yield (AMZ Yield) 5.83% % % 190 bps (63 bps) (120 bps) (81 bps) 10 Year Treasury Yield 1.93% 2.27% 1.91% % (4 bps) (38 bps) (2 bps) 13 bps 20 Year Treasury Yield % (6 bps) (37 bps) 2 bps 16 bps Yield Curve Steepness (20 Year - 3 Month) 233 bps 251 bps 198 bps 192 bps 207 bps (26 bps) (44 bps) 9 bps 15 bps AMZ Yield Spread to 10 Year UST 390 bps 609 bps 702 bps 678 bps 584 bps 194 bps (25 bps) (118 bps) (94 bps) AMZ Yield Spread to 20 Year UST 347 bps 569 bps 665 bps 640 bps 543 bps 196 bps (26 bps) (122 bps) (97 bps) Rigs and Commodity Prices U.S. Total Rig Count (53.) (38.3%) (7.1%) (2.) Natural Gas $2.56 $2.31 $1.72 $1.72 $1.92 (25.) (16.9%) Mont Belvieu Propane ($ / Gallon) $0.56 $0.39 $0.45 $0.45 $0.47 (15.9%) % WTI Crude Oil ($ / Bbl) $56.14 $37.02 $39.18 $41.23 $42.76 (23.) 15.5% 9.1% 3.7% Brent Crude Oil ($ / Bbl) $61.41 $36.56 $39.19 $42.35 $43.97 (28.) 20.3% Brent / WTI Differential ($ / Bbl) $5.27 ($0.46) $0.01 $1.12 $1.21 (77.) (363.) 12, NYMEX Note: 3:2:1 The NYMEX Crack 3:2:1 Spread Crack ($ Spread / Bbl) is calculated using $ barrels of crude at $12.79 the WTI Crude Oil price, $ barrels of gasoline $16.48 at the NY $17.02 Harbor Gasoline (16.) price and 1 barrel 33.1% of heating oil at 27.5% the NY Harbor Heating 3.3% Oil price. This is an indicative estimate only and individual refiners will have materially different effective crack spreads for their operations due to varying crude input mixes, varying product slate outputs and cash price basis differentials for every single input and output at their various locations. Highest Estimated Forward Yield by Segment Price Performance Since IPO 2 Ticker Risk Rating 1 1 ETP Very Risky 1 EEP Very Risky 1 APLP Extremely Risky (1) ARCX Extremely Risky 1 MEMP Extremely Risky (2) NGL Extremely Risky (3) CPLP Extremely Risky ARLP Extremely Risky (4) AHGP Extremely Risky (5) ETP EEP APLP ARCX MEMP NGL CPLP ARLP AHG P UAN GLP STON UAN Extremely Risky Nat G as & Crude & G & P T & S Upstream Propane Marin e Coal General Variable D & M Other GLP Extremely Risky NGL Ref Prod & NGL Partners Pipes Pipes Logist ics ( GP ) STON Extremely Risky Showing the 10 most recent MLP IPOs Source: Historical commodity prices are spot prices at the futures contract delivery locations as per the EIA, there is a small lag in the EIA reporting, so there will always be a slight discrepancy in the most recent price data. RED tickers indicate a past distribution cut. ORANGE tickers indicate VARIABLE distributions. 3

5 MARKETS AND LEVELS 12/31/99 12/31/00 12/31/01 12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 12/31/07 12/31/08 12/31/09 12/31/10 12/31/11 12/31/12 12/31/13 12/31/14 12/31/15 Indices / Rig Counts / Yields Alerian MLP Index vs. S&P ,310 2,100 1,890 1,680 1,470 1,260 1, AMZ AMZ Current Level S&P 500 S&P 500 Current Level AMZX AMZ S&P 500 U.S. Rig Count Treasury Yields 2,000 1,500 1, /31/99 12/31/02 12/31/05 12/31/08 12/31/11 12/31/ % 5 25% 7% 5% 3% 1% (1%) U.S. Oil Rig Count Current Oil Rig Count U.S. Natural Gas Rig Count Current Nat Gas Rig Count % Oil 20 Year - 3 Month U.S. 20 Year Treasury U.S. 10 Year Treasury 4

6 MARKETS AND LEVELS Jan-96 Jan-97 Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 AMZ Index Spread to Treasury AMZ Yield Spread to 20 Year U.S. Treasury ( STT ) 11% 1 9% % 350 5% 5.43% % 2.77% 2.47% % STT Relative Value Concern STT Relative Value Warning 50 STT Seriously Consider Selling Some MLPs 0 AMZ Yield STT (20 YR UST) Average STT Median STT Current STT 20 YR Yld AMZ Current AMZ Source: 5

7 MARKETS AND LEVELS 12/31/99 12/31/00 12/31/01 12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 12/31/07 12/31/08 12/31/09 12/31/10 12/31/11 12/31/12 12/31/13 12/31/14 12/31/15 12/31/99 12/31/00 12/31/01 12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 12/31/07 12/31/08 12/31/09 12/31/10 12/31/11 12/31/12 12/31/13 12/31/14 12/31/15 12/31/99 12/31/00 12/31/01 12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 12/31/07 12/31/08 12/31/09 12/31/10 12/31/11 12/31/12 12/31/13 12/31/14 12/31/15 12/31/99 12/31/00 12/31/01 12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 12/31/07 12/31/08 12/31/09 12/31/10 12/31/11 12/31/12 12/31/13 12/31/14 12/31/15 Commodities $16 $14 $12 $10 $8 $6 $4 $2 $0 Natural Gas $160 $140 $120 $100 $80 $60 $40 $20 $0 Crude Oil $43.97 $42.76 WTI Crude WTI Current Brent Crude Brent Current Mont Belvieu Propane NYMEX 3:2:1 Crack Spread $2.00 $1.80 $1.60 $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 $45 $40 $35 $30 $25 $20 $15 $10 $5 $0 Source: Historical commodity prices are spot prices at the futures contract delivery locations as per the EIA, there is a small lag in the EIA reporting, so there will always be a slight discrepancy in the most recent price data. 6

8 MARKETS AND LEVELS 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 Quarterly Average Crude Value Chain Prices 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 QoQ Change YoY Change WTI Crude $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ % (29.9%) Brent Crude $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ % (32.7%) Natural Gas $ 2.35 $ 2.89 $ 3.55 $ 3.51 $ 3.97 $ 3.53 $ 3.84 $ 4.86 $ 4.56 $ 3.91 $ 3.74 $ 2.82 $ 2.71 $ 2.69 $ 2.06 $ 1.96 $ 1.87 (4.5%) (30.9%) NY Harbor Gasoline $ 2.89 $ 3.00 $ 2.85 $ 2.94 $ 2.73 $ 2.89 $ 2.70 $ 2.74 $ 2.90 $ 2.75 $ 2.12 $ 1.54 $ 1.90 $ 1.63 $ 1.35 $ 1.13 $ (24.3%) Gulf Coast Gasoline $ 2.80 $ 2.88 $ 2.60 $ 2.82 $ 2.69 $ 2.78 $ 2.49 $ 2.65 $ 2.81 $ 2.66 $ 1.89 $ 1.50 $ 1.85 $ 1.58 $ 1.24 $ 1.06 $ % (28.) NY Harbor Heating Oil $ 2.89 $ 2.99 $ 3.05 $ 3.06 $ 2.74 $ 2.93 $ 2.96 $ 3.02 $ 2.88 $ 2.74 $ 2.21 $ 1.71 $ 1.76 $ 1.45 $ 1.24 $ 1.02 $ (33.9%) Gulf Coast Diesel $ 2.94 $ 3.07 $ 3.04 $ 3.08 $ 2.86 $ 3.01 $ 2.92 $ 2.94 $ 2.92 $ 2.80 $ 2.23 $ 1.68 $ 1.82 $ 1.50 $ 1.27 $ 1.03 $ (35.) Mont Belvieu Propane $ 0.97 $ 0.89 $ 0.89 $ 0.87 $ 0.91 $ 1.03 $ 1.19 $ 1.30 $ 1.06 $ 1.04 $ 0.78 $ 0.53 $ 0.46 $ 0.41 $ 0.42 $ 0.39 $ % (2.1%) NYMEX 3:2:1 Crack $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ % (20.1%) Gulf Coast 3:2:1 Crack $ $ $ $ $ $ $ $ $ $ $ 9.70 $ $ $ $ $ $ % (32.3%) NYMEX 2:1:1 Crack $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ (25.9%) Gulf Coast 2:1:1 Crack $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ (37.1%) Crude Oil Gasoline $120 $80 $40 $- $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $- WTI Crude Brent Crude NY Harbor Gasoline Gulf Coast Gasoline Heating Oil / Diesel Crack Spreads $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $- $35 $30 $25 $20 $15 $10 $5 $- NY Harbor Heating Oil Source: U.S. Energy Information Administration, Gulf Coast Diesel NYMEX 3:2:1 Crack NYMEX 2:1:1 Crack Gulf Coast 3:2:1 Crack Gulf Coast 2:1:1 Crack 7

9 MARKETS AND LEVELS D-99 D-00 D-01 D-02 D-03 D-04 D-05 D-06 D-07 D-08 D-09 D-10 D-11 D-12 D-13 D-14 D-15 D-99 D-00 D-01 D-02 D-03 D-04 D-05 D-06 D-07 D-08 D-09 D-10 D-11 D-12 D-13 D-14 D-15 Rig Count U.S. Oil and Natural Gas Drilling Rig Count ANNUAL MONTHLY PEAK ANALYSIS Last Year Annual Current 4 Wks Ago Monthly Current Peak Current Peak Days 4/24/15 Change 4/22/16 3/25/16 Change 4/22/16 Count vs. Peak Date Since Oil Rig Count 703 (360) (29) 343 1,609 (78.7%) 10/10/ % of Total Annual/Monthly Change % (51.) (7.) Natural Gas Rig Count 225 (137) (4) 88 1,606 (94.5%) 9/12/08 2,779 % of Total Annual/Monthly Change % (60.9%) (4.3%) Total Rig Count 928 (497) (33) 431 2,031 (78.) 9/12/08 2,779 Annual/Monthly Change % (53.) (7.1%) Oil Rig Count vs. WTI Crude Prices Natural Gas Rig Count vs. Natural Gas Prices 1,800 1,600 1,400 1,200 1, $180 $160 $140 $120 $100 $80 $60 $40 $20 $0 1,800 1,600 1,400 1,200 1, $18 $16 $14 $12 $10 $8 $6 $4 $2 $0 U.S. Oil Rig Count Current Oil Rig Count WTI Crude Oil Source: U.S. Natural Gas Rig Count Current Nat Gas Rig Count Natural Gas 8

10 MARKETS AND LEVELS J-00 J-01 J-02 J-03 J-04 J-05 J-06 J-07 J-08 J-09 J-10 J-11 J-12 J-13 J-14 J-15 J-16 J-00 J-01 J-02 J-03 J-04 J-05 J-06 J-07 J-08 J-09 J-10 J-11 J-12 J-13 J-14 J-15 J-16 Million Bbls / Day Crude Imports Million Bbls / Day Refined Products Exports Million Bbls / Day Bcf / Day Rig Count vs. Production / Imports Exports Oil Rig Count vs. Crude Production 10 2, , , , , , Jan-88 Jan-92 Jan-96 Jan-00 Jan-04 Jan-08 Jan-12 Jan-16 Oil Production Oil Rig Count Refined Products Exports Natural Gas Rig Count vs. Natural Gas Production 100 2, , , , , , J-05 J-06 J-07 J-08 J-09 J-10 J-11 J-12 J-13 J-14 J-15 J-16 Nat Gas Production Nat Gas Rig Count Crude Oil Imports vs. Refined Products Exports Week Avg Daily U.S. Refined Products Exports Source: EIA production data lags by roughly 3 months 4 Week Avg Daily U.S. Refined Products Exports 4 Week Avg Daily U.S. Crude Oil Imports 9

11 MARKETS AND LEVELS J-05 J-06 J-07 J-08 J-09 J-10 J-11 J-12 J-13 J-14 J-15 J-16 J-05 J-06 J-07 J-08 J-09 J-10 J-11 J-12 J-13 J-14 J-15 J-16 J-05 J-06 J-07 J-08 J-09 J-10 J-11 J-12 J-13 J-14 J-15 J-16 Crude Oil Million Bbls / Day Million Bbls / Day J-05 J-06 J-07 J-08 J-09 J-10 J-11 J-12 J-13 J-14 J-15 J-16 J-05 J-06 J-07 J-08 J-09 J-10 J-11 J-12 J-13 J-14 J-15 J-16 J-05 J-06 J-07 J-08 J-09 J-10 J-11 J-12 J-13 J-14 J-15 J-16 Natural Gas Bcf / Day Bcf / Day U.S. Rig Count vs. Production vs. Price Rig Count vs. Production Price vs. Production Rig Count vs. Price Positive for Midstream 2, , , , , , Positive for Midstream $20 $18 $16 $14 $12 $10 $16 $14 $12 $10 $8 1,600 1,400 1,200 1, $8 $ Negative for Oilfield Service Negative for Upstream $6 $4 $2 $0 $4 $2 $ Nat Gas Production Nat Gas Rig Count Nat Gas Production Henry Hub Nat Gas Price Henry Hub Nat Gas Price Nat Gas Rig Count 10 2, $200 $160 1, ,800 1,600 1,400 1,200 1, $180 $160 $140 $120 $100 $140 $120 $100 $80 1,400 1,200 1, $80 $ $60 $40 $20 $- $40 $20 $ Oil Production Oil Rig Count Oil Production Source: EIA production data lags by roughly 3 months WTI Crude Oil Price WTI Crude Oil Price Oil Rig Count 10

12 SECTION II GROUP DATA

13 GROUP DATA 3/1/12 6/1/12 9/1/12 12/1/12 3/1/13 6/1/13 9/1/13 12/1/13 3/1/14 6/1/14 9/1/14 12/1/14 3/1/15 6/1/15 9/1/15 12/1/15 3/1/16 3/1/12 6/1/12 9/1/12 12/1/12 3/1/13 6/1/13 9/1/13 12/1/13 3/1/14 6/1/14 9/1/14 12/1/14 3/1/15 6/1/15 9/1/15 12/1/15 3/1/16 Moving Averages Moving Average Heat Index Crude & Refined Products Pipelines 409% Marine 40 Propane & NGL Logistics 40 Terminal & Storage 40 Natural Gas & NGL Pipelines 39 Gathering & Processing 36 General Partners 34 Other 343% Variable / Plants 325% Coal 317% Downstream & Marketing 25 Upstream 233% Total 4,171% 600 NOT SCALE ADJUSTED Total Moving Average Heat Index AMZ AMZ SCALE ADJUSTED Total Moving Average Heat Index AMZ Current Price vs. Current Price vs. 20 Day Moving Average 1 50 Day Moving Average 1 Current Price vs. 200 Day Moving Average 1 43% 57% % 47% 20 Day Moving Average / 200 Day Moving Average Day Moving Average / 50 Day Moving Average 1 15% 85% 77% 50 Day Moving Average / 200 Day Moving Average 2 23% Key: % Abov e % Below (1) Included in the Moving Average Heat Index calculation, by segment. (2) NOT included in the Moving Average Heat Index calculations. 12

14 GROUP DATA CCLP (23.7%) NGL (37.) NRP (50.) CEQP (56.) KMI (74.) TOO (79.) TGP (80.) AZUR (100.) BBEP (100.) CLMT (100.) FELP (100.) HCLP (100.) LGCY (100.) LINE (100.) LNCO (100.) MCEP (100.) NKA (100.) NMM (100.) SXE (100.) VNR (100.) DMLP (51.9%) TEP 34. AM 30. PSXP 30. DM 28.3% WGP 23.7% MPLX 23. VLP 22.5% HMLP 22. TLLP 16.5% CNNX 15.3% DKL 15.1% WES 12. RMP 12. MMP 11. LMRK 10.9% GEL 10. TRGP 9. SGU 7.9% HEP 7. EPD 5.3% PAGP 4.1% BKEP 3.9% RRMS 3.9% SXCP 3.9% ENLK 2. NAP 2. TLP 2.3% PAA 2. KNOP 2. USAC 1.9% OKE 1.7% DLNG 0. GMLP 0. MMLP 0. OKS 0. SPH 0. WPT 0. NGL (39.1%) CEQP (56.) CLMT (100.) DMLP (26.) TEGP 21. TEP 9. SGU 7.9% RMP 6.9% AM 6. VLP 6.3% DM 5. PSXP 5. WGP 5. TLLP 3. CNNX 3.7% DKL 3. GEL 2.7% MMP 2. WES 1.9% HEP 1. LMRK 1.5% TLP 1.5% EPD 1.3% MPLX 1. GPP 0. BKEP 0. CCLP 0. DLNG 0. ENLK 0. GMLP 0. HMLP 0. KMI 0. KNOP 0. MMLP 0. NAP 0. NRP 0. OKS 0. PAA 0. PAGP 0. PTXP 0. RRMS 0. SPH 0. SXCP 0. TGP 0. TOO 0. TRGP 0. USAC 0. WPT 0. 1Q16 Distributions (Paid in 2Q16) Quarter over Quarter VARIABLE MLPs (5%) 0. (1) (20.) (40.) (15%) (60.) (2) (80.) (25%) (100.) (120.) (3) 5 25% Year over Year (1) VARIABLE MLPs (2) (25%) (3) (5) (4) (75%) (10) (125%) (5) (6) 13

15 GROUP DATA KMI (0.) APU (0.) OCIP (0.7%) SGU (0.9%) FUN (1.3%) GPP (2.9%) ALDW (9.3%) LNCO (10.) LINE (15.) BBEP (15.) CLMT (52.) EQGP 9.9% GLOP 9. CELP 9.7% NS 9. MEMP 9.3% TLLP 9.1% CPLP 9. SHLX 9. CNNX 8.9% PBFX 8. BWP 8. NMM 8. VNR 8.3% TNH 7. AHGP 7. ARCX 7.7% USDP 7.7% TCP 7.7% DKL 7. SRLP 7. TLP 7. HEP 6.7% MMP 6.3% VLP 5. PSXP 5.7% DM 5.7% DMLP 5. WPT 4. CINR 4. GLP 4. NKA 4.5% BPL 4. VTTI 4.3% SEP 3. SPH 3.7% EMES 3. CPPL 3. WNRL 3. SPP 3.1% TEP 2. WMLP 2.5% HMLP 2.1% NTI 1.9% CQP 1. VNOM 1.7% UAN 1. CVRR 1.5% BIP 1. WLKP 1.3% FGP 1. CAPL 0.7% SPY 0. LMRK 0.3% STON 0. EVA 0. LGCY 80. NGL 62. CEQP 49.5% EVEP 41.5% HCLP 35. MEP 34.9% CCLP 33.9% SXCP 33.5% AMID 32.1% ETE 30.3% FELP 28.9% CNXC 27.5% SDLP 24.7% NRP 24. ENLC 22. TRGP 21.9% JPEP 21.1% APLP 20.3% ENLK 19.3% TEGP 19.3% MCEP 18. WPZ 16. MMLP 16. SXE 16.3% ENBL 16.3% RRMS 16.1% AROC 15. AM 15. KNOP 15.3% BKEP 15. USAC 14.3% SXL 14.3% OKS 14. EPD 13. GMLP 13.7% DLNG 13.7% PAGP 13.5% WGP 13. PTXP 13.3% RIGP 13.3% EEP 13.1% AZUR 12.7% BSM 12.7% SMLP 12.7% EEQ 12.3% MPLX 11. EQM 11.5% TOO 11.5% ARLP 11. RMP 11. NSH 11.1% PAA 11. ARP 10.9% WES 10.9% DPM 10.5% GEL 10.5% AMZ 10.5% ETP 10. NAP 10. SUN 10.1% TGP Week Price Performance (1) (2) (3) (4) (5) (6) Source: 14

16 GROUP DATA NRP (0.3%) CNXC (1.) BKEP (2.7%) HMLP (4.) ENLC (4.) EEQ (4.) TEP (5.1%) UAN (5.9%) EEP (5.9%) TLLP (5.9%) CAPL (6.5%) VTTI (6.) PBFX (6.) GEL (7.7%) VLP (7.) DKL (8.5%) SUN (9.) NTI (9.) MEMP (10.) SHLX (10.) ARCX (10.9%) STON (11.) ENLK (11.) PTXP (12.5%) CEQP (12.5%) AHGP (13.7%) ETE (15.1%) GPP (15.) MPLX (15.9%) CPPL (17.) WLKP (18.3%) CCLP (20.7%) GLP (23.) SPP (24.) MEP (28.) ARP (31.1%) CPLP (31.9%) SXE (34.) CVRR (35.) VNR (38.) NMM (40.) FELP (41.9%) BBEP (49.3%) ALDW (54.) AZUR (57.) LNCO (58.) LINE (73.) CLMT (75.) NAP 5. TOO 5.1% APLP 5. PAGP 4.9% WES 4. EQM 4.3% WPZ 4. LMRK 3. FUN 3.7% SEP 3. DM 3. AMZ 3.5% MMP 3.1% SPY 2.5% OCIP 1.7% WNRL 1. EVEP 0.7% PSXP 0.7% MCEP 221.9% DLNG 58. SXCP 52.5% TLP 51.3% TRGP 46. WMLP 45. JPEP 44.9% CNNX 44.7% KNOP 41. DMLP 39. GLOP 38. SDLP 37. CINR 31. VNOM 30.9% USDP 30.9% GMLP 30.5% DPM 30.1% USAC 28. SPH 27. RIGP 27.3% HCLP 26. TEGP 25.1% BWP 24.5% LGCY 24. TNH 23.5% APU 22. AROC 22.1% KMI 21. EQGP 21. OKS 21. NGL 20.7% AMID 19.7% RMP 19. ENBL 18.9% NS 18. NKA 17. EMES 17.5% NSH 15.7% EVA 15.7% SGU 15. WPT 13.5% SXL 12.7% BSM 12.1% HEP 12. CQP 11. WGP 11. BIP 10.9% TCP 10.1% FGP 9. TGP 8.9% RRMS 8.7% ARLP 8.5% SRLP 8.1% BPL 7.9% MMLP 7.9% ETP 7. AM 7. SMLP 7. EPD 6.7% PAA 5.9% CELP 5.5% YTD Price Performance (1) (2) (3) (4) (5) (6) (7) (8) Source: 15

17 16 GMLP ARCX WGP EEP ENLK DMLP SMLP EEQ SXCP AMID TEGP CELP PTXP MCEP CVRR JPEP WMLP MEP CPPL CNXC APLP WPZ UAN PAA ARLP SPP CCLP CPLP NGL MPLX KMI ENLC OCIP ALDW TRGP AHGP SDLP TGP PAGP ETE GLP CEQP TOO RRMS NRP HCLP EVEP CLMT LGCY SXE MEMP NMM FELP VNR EMES ARP AZUR BBEP LNCO LINE (12) (10) (8) (6) (4) (2) HEP TLP BIP FUN TNH SEP OKS EVA BWP RMP NKA BPL EQM APU VLP CQP SGU LMRK VNOM DPM WPT GPP MMP NTI AM PBFX BSM DLNG PSXP TCP HMLP TLLP SRLP FGP KNOP TEP WNRL EPD STON RIGP OKE SPH NS SHLX CAPL NAP GLOP DM VTTI CNNX GEL EQGP SUN DKL WES USAC MMLP USDP SXL ETP ENBL NSH WLKP BKEP (4) (35%) (3) (25%) (2) (15%) (1) (5%) GROUP DATA % Below 52 Week Highs Positive number indicates close at a new high. Source:

18 GROUP DATA DMLP KMI HMLP TCP SUN EEP PSXP MEMP EEQ BPL TEP ARLP TNH SPH CNXC AM BSM LMRK CQP CPLP DKL SHLX AHGP VNOM VNR EQGP SRLP CAPL BKEP WNRL ARCX EQM BIP APU SEP DM FGP OCIP TLLP ARP WLKP VTTI GPP PTXP LINE CPPL WPT MMP PBFX SGU VLP AZUR FUN EPD CVRR BBEP STON NTI CLMT ALDW GLP SXE 51 MCEP 41 JPEP 277% LGCY 25 NKA 20 LNCO 201% TOO 19 SDLP ETE TRGP EMES AMID SPP NRP WMLP RRMS GMLP CCLP APLP SXCP DLNG NGL ENLK CEQP WPZ NMM ENLC DPM GLOP HCLP USAC USDP PAGP WGP TEGP KNOP TLP ENBL MPLX RIGP NSH WES RMP OKE ETP SXL FELP NAP NS CNNX EVA MEP MMLP BWP CELP TGP EVEP SMLP GEL OKS PAA HEP UAN % Above 52 Week Lows 25 Negative number indicates close at a new low Source: 17

19 GROUP DATA Current Yield Current Yield Yield versus Growth 3 25% 2 15% 1 5% Current Yield vs. 3 Year Historical Distribution Growth Rate y = -0.64x x R² = % 1 15% 2 25% 3 35% 4 3 Year Historical Distribution Growth Rate Current Yield vs. 3 Year Forward Distribution Growth Rate Includes data set for flat or positive 3 year historical growth rates. 3 25% y = -0.23x x R² = % 1 5% (10) (8) (6) (4) (2) Year Forward Distribution Growth Rate Source: Internal estimates, variable distribution MLP estimates are the least accurate and will vary materially from any data shown. 18

20 GROUP DATA Current Yield Yield versus Growth 1 1 Current Yield vs. 3 Year Forward Distribution Growth Rate 5% y = 1.64x x R² = % 1 15% 2 25% 3 Year Forward Distribution Growth Rate Source: Internal estimates, variable distribution MLP estimates are the least accurate and will vary materially from any data shown. 19

21 GROUP DATA Natural Gas & NGL Pipelines Tickers by Segment Crude & Refined Product Pipelines Gathering & Processing Terminal & Storage Upstream Propane & NGL Logistics Marine Coal General Partners Variable / Plants Downstream & Marketing BWP BPL AM ARCX ARP APU CPLP ARLP AHGP OCIP ALDW BIP CPPL EEP AMID BKEP BBEP FGP DLNG CNXC AROC TNH CAPL CINR EPD EEQ APLP CQP EVEP NGL GLOP NRP ATLS WLKP CLMT EMES ETP HEP CCLP DKL LGCY SGU GMLP SXCP ENLC UAN CVRR EVA KMI MMP CELP DM LINE SPH HMLP WMLP EQGP GLP FUN OKS MPLX CEQP GEL LNCO KNOP ETE NTI HCLP SEP NS CNNX GPP MCEP NAP NSH SRLP LMRK TCP PAA DPM JPEP MEMP NMM OKE SUN STON TEP PSXP ENBL MMLP SPP RIGP PAGP WPZ SHLX ENLK NKA VNR SDLP TEGP SXL EQM PBFX BSM TGP WGP VLP MEP RRMS DMLP TOO PTXP TLLP VNOM RMP TLP SMLP TRGP USAC WES AZUR SXE USDP VTTI WNRL WPT BANKRUPTCY DELISTING NSLP FELP ATLS Other Click Here for Links to Company Presentations RED tickers indicate a past distribution cut. / ORANGE tickers indicate VARIABLE distributions. / YELLOW highlighting indicates companies & MLPs that DO NOT send a K-1 tax form. All other tickers send a K-1 tax form, MLP positions that generate a K-1 tax form are not appropriate for any type of tax advantaged accounts (i.e. IRAs, etc.). / General Partner list is not exhaustive, others include MPC, PSX, VLO, WMB, etc.,etc. / Expect more Upstream MLP distribution cuts. / Bottom of Upstream list are oil and gas Mineral Interest owners. / Expect more bankruptcies. 20

22 SECTION III SEGMENT YIELD DATA

23 SEGMENT YIELD DATA Investment Grade Names Ticker EPD MMP EEP PAA OKS SXL SEP PSXP ETP WPZ WES TCP MPLX EQM KMI BPL SHLX VLP CPPL S&P Debt Rating / Outlook BBB+ BBB+ BBB BBB BBB BBB BBB BBB BBB- BBB- BBB- BBB- BBB- BBB- BBB- BBB- (Neg) GP: AA GP: BBB GP: BBB- Current Yield* % % % % 6.5% 6.5% 6.1% % % 5. Forward Yield % 10.7% % 6.9% 5.3% 3.3% % % % Estimated Fee Based Cash Flow 8 85% % 85% % % Year Distribution Growth Rates: Trailing % % 8.9% NA 5.7% 0.9% 14.7% 4.5% (31.) 4. NA NA NA Projected 2.3% (7.7%) (8.1%) 7.5% % (15.) (28.5%) 3.7% % 14.9% % 7.5% General Partner / IDR Owner - - ENB PAGP OKE ETE SE PSX ETE WMB WGP TRP MPC EQT - - RDS-A VLO CPGX *Current Yield is calculated based on most recently announced distribution annualized. Current Yield % % 1 8.7% % 6.5% 6.5% 6.1% % % 5. EPD MMP EEP PAA OKS SXL SEP PSXP ETP WPZ WES TCP MPLX EQM KMI BPL SHLX VLP CPPL Forward Yield % 10.7% % 6.9% 5.3% 3.3% % % % EPD MMP EEP PAA OKS SXL SEP PSXP ETP WPZ WES TCP MPLX EQM KMI BPL SHLX VLP CPPL Source: Internal estimates, variable distribution MLP estimates are the least accurate and will vary materially from any data shown. RED tickers indicate a past distribution cut. ORANGE tickers indicate VARIABLE distributions. 22

24 SEGMENT YIELD DATA APLP CCLP CELP MEP USAC CEQP SMLP ENBL AMID ENLK DPM PTXP CNNX TRGP WES RMP EQM AM AZUR SXE ARCX MMLP USDP RRMS GPP BKEP PBFX GEL WPT DKL TLLP TLP WNRL VTTI CQP DM JPEP NKA % 15.1% 14.9% % 11.1% % % 6.7% % 4.1% % 13.9% 13.1% 12.7% 11.9% % % 7.7% 7.1% % 5.9% % 0. ETP WPZ OKS TEP TCP EPD SEP CPPL KMI BWP EEQ EEP PAA NS SXL HEP BPL MPLX MMP PSXP VLP SHLX % 6.9% 6.7% 6.7% % 3.3% % 8.3% % % 10.7% % 11. Forward Yields by Segment Natural Gas & NGL Pipelines Crude & Refined Product Pipelines 1 1 Gathering & Processing Terminal & Storage Source: Internal estimates, variable distribution MLP estimates are the least accurate and will vary materially from any data shown. 23

25 SEGMENT YIELD DATA CPLP GMLP RIGP SDLP DLNG KNOP GLOP NAP HMLP TOO TGP NMM ARLP SXCP WMLP CNXC NRP FELP % 6.5% % % 9.7% % MEMP SPP ARP BSM VNOM DMLP EVEP BBEP LGCY LINE LNCO MCEP VNR NGL SPH FGP APU SGU 0.5% % % 5.9% 5.5% % % Forward Yields by Segment Upstream Propane & NGL Logistics Marine Coal Source: Internal estimates, variable distribution MLP estimates are the least accurate and will vary materially from any data shown. 24

26 SEGMENT YIELD DATA GLP CAPL SRLP SUN NTI ALDW CVRR CLMT STON EVA LMRK CINR FUN BIP EMES HCLP % % 6.3% 9.9% % 11.1% AHGP NSH AROC PAGP ENLC OKE ETE TEGP WGP EQGP UAN OCIP TNH WLKP % 7.5% % 4.9% % 2.5% 7.7% 6.9% 18.9% 9.3% 9.1% Forward Yields by Segment General Partners Variable / Plants % 7% 5% 3% 1% Downstream & Marketing Other Source: Internal estimates, variable distribution MLP estimates are the least accurate and will vary materially from any data shown. 25

27 SECTION IV GP VALUATION COMPS

28 GP VALUATION COMPS General Partner Peer Group GP Ticker AHGP AROC ENLC WGP EQGP PAGP NSH OKE TEGP ETE LP Ticker ARLP APLP ENLK WES EQM PAA NS OKS TEP ETP / SXL / SUN ETP SXL SUN GP Interest + IDRs Maximum Tier % Segment Coal Gath & Process Gath & Process Gath & Process Gath & Process Crude & Ref Prod Pipes Crude & Ref Prod Pipes Nat Gas & NGL Pipes Nat Gas & NGL Pipes Nat Gas & NGL Pipes Crude & Ref Prod Pipes Downstream & Marketing GP Units / Shares (in Millions) (1) LP Units LP Units Owned by GP GP Unit / Share Price $ $ 9.18 $ $ $ $ 9.91 $ $ $ $ GP Current Yield % 7.07% 4.21% % 6.87% GP Forward Yield 18.93% 7.49% % 4.89% GP Estimated 3 Year Forward Distribution Growth Rate (27.) (33.3%) (15.) 5.5% 22. (15.5%) (9.) (16.1%) 10.9% (100.) LP Unit / Share Price $ $ $ $ $ $ $ $ $ $ $ $ LP Current Yield % 10.67% % 11.45% % % LP Forward Yield % % 11.19% (2) LP Estimated 3 Year Forward Distribution Growth Rate (21.5%) (25.) (10.) 3.7% 14.9% (7.7%) (4.) (8.1%) 9.1% (9.) (15.) 7.5% 10. (2) GP Forward Yield Less LP Forward Yield 2.53% (9.11%) (3.6) (2.3) (1.59%) (2.7) (0.5) (2.0) (3.03%) (5.4) (6.3) (2.03%) (4.55%) (2) LP Estimated Fee Based Cash Flow 10 97% % 81% 99% 83% 8 85% 2 (2) LP TTM Distribution Coverage Ratio 1.62x 1.24x 1.02x 1.11x 1.67x 0.88x 1.11x 0.86x 1.43x 1.04x 0.99x 1.20x 1.29x (2) LP Net Debt / EBITDA 1.2x 4.5x 4.5x 3.4x 1.4x 4.1x 4.8x 4.7x 2.9x 4.9x 4.8x 4.3x GP Market Cap (in Millions) $ 1,042.8 $ $ 2,596.0 $ 8,822.5 $ 6,696.7 $ 6,006.0 $ 1,050.5 $ 7,519.7 $ 3,141.4 $ 8,342.3 GP Stand Alone Net Debt (5.2) (12.1) (1.7) , ,404.0 GP Enterprise Value ( EV ) $ 1,037.6 $ $ 2,583.9 $ 8,820.8 $ 6,696.7 $ 6,597.0 $ 1,116.0 $ 9,058.5 $ 3,288.8 $ 14,746.3 GP Stand Alone EBITDA / DCF (4Q15 Annualized) 4Q15 4Q15 4Q15 4Q15 4Q15 4Q15 4Q15 4Q15 4Q15 4Q15 4Q15 4Q15 4Q15 GP Distributions Received From GP Interest + IDRs $ $ 21.8 $ 57.6 $ $ 70.1 $ $ 51.1 $ $ 64.2 $ 1,592.0 $ 1,216.0 $ $ 68.0 From LP Units Owned GP Direct Asset Revenues or EBITDA Total GP Revenue , , Net G&A GP EBITDA $ $ $ $ $ $ $ 93.4 $ $ $ 1,651.0 $ 1,227.0 $ $ 68.0 Interest Expense Cash Income Taxes Capital Expenditures GP Distributable Cash Flow ( DCF ) $ $ 58.6 $ $ $ $ $ 89.7 $ $ $ 1,351.0 $ 1,227.0 $ $ 68.0 GP Net Debt / EBITDA (0.0x) 1.3x (0.1x) (0.0x) 0.0x 1.0x 0.7x 2.0x 1.2x 3.9x GP EV / EBITDA 4.5x 6.4x 13.5x 24.7x 51.8x 10.7x 12.0x 11.6x 27.8x 8.9x GP EV / DCF 4.5x 13.7x 13.5x 24.7x 51.8x 10.9x 12.4x 13.6x 28.8x 10.9x Value of LP Units owned by GP $ $ $ 1,294.3 $ 2,456.4 $ 1,715.0 $ - $ $ 4,168.1 $ $ 94.4 $ 94.4 $ - $ - Effective Valuation of GP Interest + IDRs (GP EV less LP unit value) $ $ $ 1,289.6 $ 6,364.4 $ 4,981.7 $ 6,597.0 $ $ 4,890.4 $ 2,506.4 $ 14,652.0 GP Interest + IDRs EBITDA (Total GP EBITDA less LP Distributions) $ $ 71.2 $ 53.2 $ $ 67.4 $ $ 48.5 $ $ 62.2 $ 1,640.0 GP Interest + IDRs DCF (Total GP DCF less LP Distributions) $ $ 4.6 $ 52.8 $ $ 67.4 $ $ 44.8 $ $ 58.1 $ 1,340.0 Effective Standalone GP EV / EBITDA 3.9x 7.0x 24.2x 32.5x 73.9x 10.7x 13.0x 11.6x 40.3x 8.9x Effective Standalone GP EV / DCF 3.9x 108.4x 24.4x 32.5x 73.9x 10.9x 14.1x 16.0x 43.1x 10.9x (3) GP + LP Consolidated EV / EBITDA 3.4x 7.4x 13.7x 20.4x 26.2x 12.4x 11.3x 14.6x 22.9x 12.6x GP + LP Consolidated Net Debt / EBITDA 1.2x 4.4x 4.6x 3.5x 1.4x 4.3x 4.9x 5.7x 3.5x 5.9x GP + LP Consolidated Net Debt & Preferred / EBITDA 1.2x 4.4x 4.6x 3.5x 1.4x 5.1x 4.9x 5.7x 3.5x 6.6x (1) PAGP share count assumes full conversion of the private Class B shareholders. (2) Underlying LP metrics for ETE are shown as the GP + IDR weighted average of ETP, SXL and SUN. (3) ETE GP valuation multiple is somewhat diluted by the direct assets owned at ETE, mainly the Lake Charles LNG assets that generate ~ of ETE s EBITDA. 27

29 GP VALUATION COMPS Metrics vs Estimated LP Forward Yield Consolidated EV / EBITDA Consolidated Net Debt / EBITDA 30x 3 7x 3 25x 25% 6x 25% 20x 15x 10x 5x 0x % % % % 3.4x 7.4x 11.3x 12.4x 12.6x 13.7x 14.6x 20.4x 22.9x 26.2x AHGP AROC NSH PAGP ETE ENLC OKE WGP TEGP EQGP GP + LP Consolidated EV / EBITDA LP Forward Yield 2 15% 1 5% 5x 4x 3x 2x 1x 0x % 9.1% % % % 5% 1.2x 4.4x 4.9x 4.3x 5.9x 4.6x 5.7x 3.5x 3.5x 1.4x AHGP AROC NSH PAGP ETE ENLC OKE WGP TEGP EQGP GP + LP Consolidated Net Debt / EBITDA LP Forward Yield Underlying LP TTM Distribution Coverage Ratio 3.0x 3 2.5x 25% 2.0x x 15% 1.0x 0.5x 0.0x 9.1% % % % 1.62x 1.24x 1.11x 0.88x 1.04x 1.02x 0.86x 1.11x 1.43x 1.67x AHGP AROC NSH PAGP ETE ENLC OKE WGP TEGP EQGP LP TTM Distribution Coverage Ratio LP Forward Yield 1 5% 28

30 GP VALUATION COMPS 4Q15 Annualized DCF in millions Metrics vs Estimated GP Forward Yield GP Distributable Cash Flow ( DCF ) GP Net Debt / EBITDA $1, x 3 $1,350 $1,200 $1, % 27% 2 21% 5.0x 4.0x 18.9% 25% 2 $900 $ % 3.0x 15% $600 $450 $300 $150 $0 7.5% % % 4.9% 4.3% % $232 $59 $90 $604 $1,351 $191 $666 $357 $114 $129 AHGP AROC NSH PAGP ETE ENLC OKE WGP TEGP EQGP 9% 3% 2.0x 1.0x 0.0x (1.0x) 4.9% % 7.5% % 4.3% % 1.3x 0.7x 1.0x 3.9x 2.0x 1.2x 0.0x (0.0x) (0.1x) (0.0x) AHGP AROC NSH PAGP ETE ENLC OKE WGP TEGP EQGP 1 5% (5%) GP Distributable Cash Flow ( DCF ) GP Forward Yield GP Net Debt / EBITDA GP Forward Yield Effective Standalone GP EV / DCF 100x 3 90x 27% 80x 2 70x 18.9% 21% 60x 1 50x 15% 40x 30x 20x 10x 0x 7.5% % % 4.9% 4.3% % 3.9x 108.4x 14.1x 10.9x 10.9x 24.4x 16.0x 32.5x 43.1x 73.9x AHGP AROC NSH PAGP ETE ENLC OKE WGP TEGP EQGP 9% 3% Effective Standalone GP EV / DCF GP Forward Yield 29

31 SECTION V SELECTED REGIONAL DATA

32 SELECTED REGIONAL DATA Total Regions Barnett Bossier Cotton Valley DJ Basin Haynesville Fayetville Powder River Marcellus Uitna Utica San Juan Woodford / Arkoma Anadarko / Hugoton Eagle Ford Granite Wash Mississippi Lime Offshore Gas Piceance Jonah / Pinedale Permian SCOOP Brown Dense Eagle Ford Four Corners Monterrey Offshore oil Niobrara Permian Utica Williston / Bakken Selected MLP Exposure to Major Producing Regions Dry / Modestly Wet Gas Plays NGL-Rich Gas Plays Oil Plays Ticker Current Yield Forward Yield 3 Year Hist Dist Growth AMID G G-P BKEP % 1 T BWP (42.7% ) 7 T T T T G T G-P CEQP 13.19% 13.19% NA 6 G-P G T-G G-P G T DKL 7.47% G DPM G G-P G-P G EEP T-G-P T-G-P G T-G-P T-G-P T ENBL 11.63% 11.3 NA 10 T-G-P T-G-P T-G-P T-G T-G-P T-G-P T-G-P T T-G-P G ENLK 10.67% 10.4 NA 8 T-G-P T-G T-G G-P G-P P P T EPD 5.79% T-G T-G T T-G-P T-G-P T-G-P T-G-P T-G-P T T T EQM 3.61% 4.05% T-G ETP 11.63% 11.19% 5.7% 13 T-G-P T-G-P T-G-P T T-G T-G-P T T-G-P T T-G-P G-P T-G-P T-G-P GEL T T GLP 13.79% 13.79% (6.7% ) 1 G HEP 6.59% 6.69% 6. 1 G KMI (31. ) 15 T-G-P T-G G T-G T T T T-G-P T T T T-G-P T T-P T MMP 4.59% % 2 T T NS T OKS T T-G T-G-P G-P T-G-P T-G-P T T T T-G-P PAA 11.45% T T T-G T T T T-G T-G RRMS 16.15% 12.69% G-P T T-G SEP 5.17% 5.27% 8.9% 2 T-G T SMLP % 2 G G SXE (100. ) 1 G-P SXL % 1 T TCP 6.51% 6.59% 4.5% 1 T TEP NA 3 T T-P T TLLP % T-G TRGP % 4 G-P G-P G-P G WES % 10 G G G-P T-G-P G P G P G-P P WNRL 6.33% 6.6 NA 2 T-G T-G WPZ % 0.9% 11 T T T T-G-P G-P T-G-P T-P T-G-P T-G-P T-G-P T Total Counts Transportation (Least Risky) Gathering Processing (Most Risky) Total Source: Producing regions as per Wells Fargo Securities, LLC MLP Monthly report, other data as per internal estimates 31

33 SELECTED REGIONAL DATA Lower 48 Shale Plays 32