2012 Wells Fargo Pipeline, MLP and Energy Symposium December 4, 2012

Transcription

1 2012 Wells Fargo Pipeline, MLP and Energy Symposium December 4, 2012

2 Forward Looking Statements This presentation contains forward looking statements within the meaning of the federal securities laws. Forward looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. The future results of Crosstex Energy, L.P. and its affiliates (collectively known as Crosstex ) may differ materially from those expressed in the forward-looking statements contained throughout this presentation and in documents filed with the SEC. Many of the factors that will determine these results are beyond Crosstex s ability to control or predict. These statements are necessarily based upon various assumptions involving judgments with respect to the future, including, among others, the ability to achieve synergies and revenue growth; national, international, regional and local economic, competitive and regulatory conditions and developments; technological developments; capital markets conditions; inflation rates; interest rates; the political and economic stability of oil producing nations; energy markets; weather conditions; business and regulatory or legal decisions; the pace of deregulation of retail natural gas and electricity; the timing and success of business development efforts; and other uncertainties. You are cautioned not to put undue reliance on any forward looking statement. Crosstex has no obligation to publicly update or revise any forward looking statement, whether as a result of new information, future events or otherwise. 2

3 Key Investment Considerations Growth Focused on Crude and NGL Business Cajun Sibon Phase I Riverside Crude Phase 2 Ohio River Valley Permian joint venture with Apache Strong Fee-Based Business ~90% of third quarter 2012 gross operating margin income from fee-based business All new projects focused on fee-based income Fully funded announced growth projects Funded ~$500 MM of 2012 growth capital through recent debt and equity issues 3

4 Diverse Assets Across Entire Midstream Value Chain Over 3,500 miles of natural gas, oil and natural gas liquids pipelines 10 natural gas processing plants 4 fractionators 2.4 MM barrels of NGL cavern storage Barge and rail terminals Brine disposal wells 4

5 Strategically Located Assets 5

6 Ohio River Valley: Strategically Positioned Assets LTM 09/30/2012 Segment Profit * $ in MM $46.2, 17% $83.3, 32% $6.9, 3% $6.9, 3% $126.6, 48% ORV Truck Unloading Station Brine Disposal Well Barge Terminal Rail Terminal Existing Pipeline Source: Ohio Department of Natural Resources * Segment Profit acquisition date of 07/02/2012 through 09/30/2012 6

7 PNGL: Strategically Positioned Assets LTM 9/30/2012 Segment Profit $ in MM $6.9, 3% $46.2, 17% $83.3, 32% $126.6, 48% PNGL LTM 9/30/2012 Throughput: Processing 788,000 MMBtu/d NGL Fractionation 1,255,000 gal/d Note: Segment Cash Flow is a non-gaap financial measure. See Appendix for reconciliation to Operating Income (loss). 7

8 PNGL: Cajun Sibon Phase I Project 130 Mile NGL Pipeline with ~70Mbpd capacity Expand Fractionator from 15Mbpd to 55 Mbpd 8

9 LIG: Strategically Positioned Assets LTM 09/30/2012 Segment Profit $ in MM $6.9, 3% $46.2, 17% $83.3, 32% $126.6, 48% LIG LTM 9/30/2012 Throughput: LIG Gathering/Transmission 841,000 MMBtu/d LIG Processing 246,000 MMBtu/d Note: Segment Cash Flow is a non-gaap financial measure. See Appendix for reconciliation to Operating Income (loss). 9

10 NTX: Strategically Positioned in the Barnett Shale LTM 09/30/12 Segment Profit $ in MM $6.9, 3% $46.2, 17% $126.6, 48% $83.3, 32% NTX LTM 9/30/2012 Throughput : NTX Gathering 814,000 MMBtu/d NTX Transmission 353,000 MMBtu/d NTX Processing 327,000 MMBtu/d Note: Segment Cash Flow is a non-gaap financial measure. See Appendix for reconciliation to Operating Income (loss). 10

11 NTX: Permian Basin Well Positioned for Expansion Joint venture with Apache: 50 MMcf/d cryogenic facility; 50% owned Operated by Crosstex Mesquite fractionator and rail terminal: 100% owned - Creates space for Apache NGLs 11

12 Howard Energy: Strategic Investment in Eagle Ford Strategic investment in Howard Energy Partners to pursue opportunities in the Eagle Ford Shale Completed a 30-mile, 12-inch diameter pipeline expansion for rich gas header since initial acquisition Acquired Meritage assets in April

13 Financial Overview

14 Current Financial Focus Strong liquidity maintaining flexibility with no near term debt maturities Conserving capital - maintaining conservative capital structure and leverage ratios Match distributions with more reliable cash flows 4.50x 4.00x 3.50x 3.00x Quarterly Leverage and Distribution 4.07x 3.95x 4.06x 3.88x 3.96x 3.92x 3.78x $0.34 $0.33 $0.32 $0.31 Reinvest excess coverage from less sustainable cash flows Funded approximately $500 million of 2012 growth capital through recent debt and equity issuance Improving cash flows - Investing in highreturn projects and improving efficiencies of existing assets 2.50x 2.00x 1.50x 1.00x 0.50x 1.96x 1.53x 1.52x 1.43x 1.19x 1.13x 0.87x 1Q Q Q Q Q Q Q 2012 Dist/unit Leverage Dist. Coverage $0.30 $0.29 $0.28 $

15 Fee Based Focus 100% 90% 80% 70% 60% 10% 15% 17% 12% 13% 11% 11% 9% 13% 19% 14% 13% 17% 11% 8% 50% 40% 30% 20% 58% 66% 62% 57% 64% ~ 81% Fee-based business 10% 0% 2008* ** Gathering & Transmission Fee Based Processing & Fractionation Processing Margin Percent of Liquids * 2008 excludes discontinued operations ** 2012 represents actual for nine months ended September 30th 15

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