2014 MASTER LIMITED PARTNERSHIP INVESTOR CONFERENCE MAY 22, 2014

Transcription

1 2014 MASTER LIMITED PARTNERSHIP INVESTOR CONFERENCE MAY 22, 2014

2 FORWARD-LOOKING STATEMENTS Certain statements and information in this presentation may constitute forward-looking statements. The words believe, expect, anticipate, plan, intend, foresee, should, would, could, or similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. These forward-looking statements are based on current expectations and beliefs concerning future developments and their potential effect on us. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. All comments concerning our expectations for future revenues and operating results are based on our forecasts for our existing operations and do not include the potential impact of any future acquisitions. Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, those summarized below: dependence on Chesapeake Energy Corporation, Total E&P USA, Inc., Mitsui & Co., Anadarko Petroleum Corporation and Statoil for a majority of our revenues; the impact on our growth strategy and ability to increase cash distributions if producers do not increase the volume of natural gas they provide to our gathering systems; oil and natural gas realized prices; the termination of our gas gathering agreements; the availability, terms and effects of acquisitions; our potential inability to maintain existing distribution amounts or pay the minimum quarterly distribution to our unitholders; the limitations that our level of indebtedness may have on our financial flexibility; our ability to obtain new sources of natural gas, which is dependent on factors largely beyond our control; the availability of capital resources to fund capital expenditures and other contractual obligations, and our ability to access those resources through the debt or equity capital markets; competitive conditions; the unavailability of third-party pipelines interconnected to our gathering systems or the potential that the volumes we gather do not meet the quality requirement of such pipelines; new asset construction may not result in revenue increases and will be subject to regulatory, environmental, political, legal and economic risks; our exposure to direct commodity price risk may increase in the future; our ability to maintain and/or obtain rights to operate our assets on land owned by third parties; hazards and operational risks that may not be fully covered by insurance; our dependence on Exterran Partners, L.P. for a significant portion of our compression capacity; our lack of industry diversification; and legislative or regulatory changes, including changes in environmental regulations, environmental risks, regulations by FERC and liability under federal and state environmental laws and regulations. Other factors that could cause our actual results to differ from our projected results are described in our 2013 Form 10-K and our other SEC filings. Individuals are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise. 2

3 PARTNERSHIP OVERVIEW Gathering and processing master limited partnership formed in 2010 Leadership position in 9 unconventional basins in U.S. ~$12 billion market capitalization with 49% public float Global Infrastructure Partners and Williams each own 50% of the GP Natural Gas Value Chain: Access Midstream Partners Wellhead Facilities/ Flowlines Gathering Systems Gathering Facilities Processing Facilities Pipeline Transportation Distribution Wellhead Central Delivery Points Customer 3

4 EXPANDING ASSET BASE HIGH QUALITY, SCALABLE ASSET BASE IN HIGH GROWTH UNCONVENTIONAL PLAYS Key Operating Data (1) Total Assets: ~$8.3 billion Dedicated Areas: ~8.3 million acres Miles of Pipe: 6,414 Volume: 3,828 mmcf/d Employees: ~1,450 1) Data as of quarter ended March 31, Volume is net to Partnership. Gross throughput volumes were 5,437 mmcf/d. 4

5 ACCESS COMPRESSION ACQUISITION SUMMARY ACMP acquired CHK s compression units servicing ACMP s gathering systems in the Marcellus and Utica regions for a purchase price of $160 million Asset portfolio fits ACMP business model ~8x forward EBITDA multiple provides attractive returns on insourcing Exterran Partners, L.P. to provide compression services to other Access Regions Transaction closed on March 31,

6 WHERE WE VE BEEN 2010 The Year of IPO 2011 The Year of Dropdowns 2012 The Year of Transition $ The Year of Execution $ The Year of the Customer $15.5 (1) $4.3 $5.0 Enterprise Value ($ billions) 1) Data as of quarter ended March 31,

7 BEST IN CLASS MLP Best in class midstream business model Industry leading organic growth platform Key investment highlights include: Low Risk Business Model Industry Leading Growth Conservative Financial Strategy Experienced Management Team World Class Sponsorship 7

8 OUR GROWTH FOCUS Organic growth ~$4.3 billion in Substantial processing investment Business development growth New producer opportunities Bolt-on acquisitions Contractual growth Escalating minimum volume commitments Long-term, cost of service fee structures Growth CAPEX $ in millions $1,468 $1,100-$1,200 $900-$1,000 $660 $600-$800 $ A 2012A 2013A 2014E 2015E 2016E EBITDA Growth $ in millions $1,400-$1,600 $1,250-$1,350 $1,025-$1,125 $859 $478 $ A 2012A 2013A 2014E 2015E 2016E 8

9 FINANCIAL PERFORMANCE FINANCIAL PERFORMANCE HIGHLIGHTS STRENGTH OF ACMP MODEL Adjusted EBITDA (1) $ in millions $ in billions $241 $250 $227 $207 $184 $118 $121 $120 $119 $73 $76 $84 $92 $97 $2.6 Enterprise Value $14.9 $15.5 $9.0 $4.3 $5.0 IPO Q 2014 Distribution / Unit Distribution Coverage Ratio $ / unit basis x 1.23x 1.23x 1.49x 1.38x Q 2014 (1) Includes quarterly allocation of MVC payments in 2010, 2011, 2013 and

10 HIGHLY VISIBLE GROWTH ACMP FINANCIAL OUTLOOK UPDATED WITH 2016 ($ million) EBITDA 1,025 1,125 1,250 1,350 1,400 1,600 Growth Capital 1,100 1, , Maintenance Capital ~130 ~130 ~130 Capable of delivering sustained ~15% annual distribution growth 10

11 ORGANIZATIONAL REALIGNMENT Focused Accountability Business Development reports to Chief Operating Officer VP Business Development & Commercial position created Expanded Organization Increasing the number of Commercial Representatives Leveraging GP support Business Process Improvement Reducing cycle time Customer acquisition capabilities 11

12 COMMERCIAL PRIORITIES MOVING FORWARD Organic focus Leverage existing footprint Leverage core competencies Leverage balance sheet Organizational capability In-house resources JV partners General Partners Track record Most well connects amongst G&P peers Largest acreage dedication Diversifying customer base Continue filling portfolio with fee based cash flows 12

13 COMMERCIAL WINS UEO Expansion Fifteen year term with a fifteen year extension option held by the Upstream JV Increase area of dedication by 53% Volume cap increases from 600,000 Mcf/d to 1.0 Bcf/d UEO to extend High Pressure Gathering Spine AEU Dedication Fifteen year term 15,000 acre dedication within a 145,000 acre AMI Southern Carroll County and northern Harrison County QEP Dedication Fifteen year term Over 19,000 acre dedication Cost of service model with mid-teens return Leveraging existing footprint to add three new opportunities to portfolio 13

14 NEW CONTRACTED VOLUME New cumulative contracted volume Mcf/d Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Aug-13 Sep-13 Oct-13 Oct-13 Nov-13 Dec-13 Dec-13 Jan-14 Jan-14 Jan-14 Jan-14 Jan-14 Jan-14 Jan-14 Jan-14 Feb-14 Feb-14 Feb-14 Feb-14 Mar-14 Apr-14 May-14 Marcellus North - Chief O&G Barnett - Vantage Barnett - Producer 1 Barnett - Devon Energy Permian - FiveStone Energy Anadarko - Producer 2 Eagle Ford - Producer 3 Eagle Ford - Producer 4 Midcon - Apache Anadarko - Twenty Twenty Oil and Gas Inc. Anadarko - Bluebonnet Oil LLC Anadarko - R & R Oilfield Rental Services Anadarko - Continental Resources Inc. Anadarko - Producer 5 Eagle Ford - Carrizo-Jasik Eagle Ford - Producer 6 Haynesville - Exco Eagle Ford - Buffco Eagle Ford - Producer 7 Eagle Ford - Producer 8 Permian - QEP - Quail COS CHK volume has decreased from 81% in 2012 to 71% today 14

15 EXPANDING CUSTOMER BASE ACMP Volume Mix CHK % 81% 71% ~55-60% ~50% NE Growth New Customers NE Growth Target 12/31/2012 Today 2015 Non-CHK Volume CHK Volume Customer Highlights Strong leading customer Leading unconventional producer Expansive position in leading basins Strong operating and financial performance Increasing activity with other customers NE (Marcellus, Utica) production growth from CHK and other ACMP customers New customer contracts across portfolio Additional opportunities New contracts Disciplined ACMP bolt-ons Potential CHK portfolio management 15

16 OUR COMMITMENT TO SAFETY & ENVIRONMENTAL EXCELLENCE Every day, across every part of our business, Access is committed to safety and environmental excellence Every day, we commit to: Excellence Safety Environment Community Focus Continuous Improvement Through: Continuous Training Screening Contractors Implementing Safety Programs Stewardship Projects Minimizing our Environmental Footprint 16

17 CORPORATE INFORMATION ACMP Headquarters 525 Central Park Dr. Oklahoma City, OK (877) Web site: Contact: Dave Shiels Chief Financial Officer (405)