Utica Midstream Conference Presentation Blue Racer Midstream. June 8th, 2016

Transcription

1 fp Utica Midstream Conference Presentation Blue Racer Midstream June 8th, 2016

2 Utica Midstream Conference Disclaimer n Forward-Looking Statements This presentation contains forward-looking statements based on the beliefs of the company, as well as assumptions made by, and information currently available to our management team. When used in this presentation, words such as anticipate, project, expect, plan, seek, goal, estimate, forecast, intend, could, should, will, believe, may, potential and similar expressions and statements regarding our plans and objectives for future operations, are intended to identify forwardlooking statements. Although management believes that the expectations reflected in such forwardlooking statements are reasonable, it can give no assurance that such expectations will prove to be correct. You should not put undue reliance on any forward-looking statements, which speak only as of their dates. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those expected, including insufficient cash from operations, adverse market conditions, governmental regulations, the possibility that tax or other costs or difficulties related thereto will be greater than expected, the impact of competition and other factors. All forward-looking statements attributable to Caiman Energy II, LLC, Blue Racer Midstream, LLC or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained herein. Except as required by law, we do not intend to update or revise our forward-looking statements, whether as a result of new information, future events or otherwise. 1

3 Natural Gas and Natural Gas Liquids Observations

4 Natural Gas and NGL Observations Marcellus and Utica drilling has dropped significantly, production has continued to grow 3

5 Natural Gas and NGL Observations Will there be enough northeast takeaway capacity to help negative basis? 4

6 Natural Gas and NGL Observations Natural Gas demand coming to the rescue? 5

7 Natural Gas and NGL Observations U.S. LNG Exports up and running, will that help lift gas pricing? 6

8 Natural Gas and NGL Observations North American Energy Prices behind drilling slowdown 7

9 Natural Gas and NGL Observations Petrochemical Crackers to the rescue for ethane? 8

10 Natural Gas and NGL Observations U.S. ethane waterborne exports to the rescue? 9

11 Natural Gas and NGL Observations Exports of propane continue to rise and are traveling farther distances 10

12 Blue Racer Midstream Overview

13 Blue Racer Midstream Overview Formation of Blue Racer Midstream n In December 2012, Dominion and Caiman Energy II, LLC formed Blue Racer Midstream, LLC, a JV to provide midstream services to natural gas producers in the Utica shale Dominion contributed midstream assets Leveraged existing presence in the Utica with new capacity designed to meet producer needs n Caiman contributed private equity capital Services offered include gas gathering, condensate gathering, compression, processing, fractionation and NGL transportation/marketing n Gathering pipeline system could be expanded to gather and process at least 2 Bcf/d 12

14 Blue Racer Midstream Overview Blue Racer Ownership Structure Williams Partners EnCap Flatrock Midstream Oaktree Capital Management / Others Dominion Resources Inc. Caiman Energy II, LLC Caiman Ohio Midstream, LLC 50% 50% Dominion Natrium Holdings Senior Secured Credit Facility: $1,000 MM Senior Notes: $850MM Blue Racer Midstream, LLC 100% Blue Racer NGL Pipelines, LLC Blue Racer Finance Co. 13

15 Blue Racer Midstream Overview Existing Infrastructure n BRM (Operating) ~690 miles of gas gathering pipeline ~155 miles of NGL and condensate pipeline 800 MMcf/d of processing capacity 123,000 Bbls/d of frac. capacity 12,500 Bbls/d of condensate stabilization capacity Berne: 10,000 Bbls/d Natrium: 2,500 Bbls/d n BRM (Under Construction) ~25 miles of gathering pipeline 200 MMcf/d of processing capacity 14

16 Blue Racer Midstream Overview Natrium Complex n Location: Ohio River in West Virginia Processing Operating: Two 200 MMcf/d cryogenic processing plants (400 MMcf/d of processing capacity) Under Construction: One 200 MMcf/d cryogenic processing plant Site can accommodate a total of four plants Fractionation Operating: 123,000 Bbls/d of total fractionation capacity n 2,500 Bbls/d of onsite stabilization n Rail, Barge, and Truck loading 15

17 Blue Racer Midstream Overview Berne Complex n Location: NW Monroe County, Ohio Processing Operating: 400 MMcf/d n 10,000 Bbls/d of condensate stabilization n ~28-mile pipeline to Natrium to fractionate processed liquids n ~28-mile condensate pipeline to Natrium for marketing Site can accommodate a third plant 16

18 Blue Racer Midstream Overview Blue Racer Residue Outlets n Natrium Residue currently flowing into Dominion Transmission ( DTI ), Texas Eastern Transmission Company ( TETCO ), and Rockies Express Pipeline ( REX ) 1 Future connections to developing projects n Berne ETC Rover (Q2 2017), Columbia (Q1 2018), EQT (Q1 2019) Residue currently flowing into TETCO Future connection to ETC Rover (Q2 2017) 1) TETCO and REX are connected through a 3 rd party midstream company 17

19 Blue Racer Midstream Overview Blue Racer NGL Outlets n Ethane Connection to ATEX, Mariner East I and Mariner West via G-151 and WPZ/OVM n Propane Connection to TEPPCO via G-150 Connection to Mariner East II via G-150 (on ME II s completion) On-site rail/truck loading at Natrium n Butanes Connection to Mariner East II via G-150 (on ME II s completion) On-site rail loading at Natrium n NGLs/Condensate On-site rail, barge, and truck loading 18

20 Utica Midstream Conference Customer relationships create lasting success. We appreciate our partnerships. 19