MMM. Permian Midstream Congress

Transcription

1 MMM Permian Midstream Congress

2 PennTex Assets Platforms PennTex North Louisiana Platform PennTex Permian Platform PennTex Midstream Partners, LP (NASDAQ: PTXP) owns and operates natural gas gathering and processing and residue gas and NGL transportation services to producers in the Terryville Complex in northern Louisiana, including MRD Operating, LLC Area of Mutual Interest and Exclusivity Agreement grants PTXP the exclusive right to provide midstream services to MRD in dedicated area, including all undedicated volumes and all volumes that become available at the end of any prior commitment PTXP currently operates one 200 MMcf/d cryogenic plant and is constructing a second 200 MMcf/d cryogenic plant scheduled to come online in October Once complete the two plants will be capable of processing a total of 400 MMcf/d. PTXP s 15-year processing agreement with MRD has an escalating minimum throughput commitment that reaches 400 MMcf/d beginning in July 2016 PTXP has built or acquired over 100 miles of gas gathering, NGL takeaway and residue pipelines to support its two cryogenic plants and the production of MRD and other Terryville producers. PTXP s private parent company acquired 98.5% of Atlantic Midstream, LLC (now named PennTex Permian ) from Atlantic Exploration (now a Centennial Resource Development subsidiary and an NGP portfolio company) System continues to expand and now includes: 80+ miles of low pressure 12 gas pipeline, 35+ miles of intermediate pressure 12 gas pipeline with field compression 60 MMcf/d of cryogenic processing capacity 8 NGL pipeline with capacity to deliver 7,800 bbl/d Plant residue line interconnect with El Paso Natural Gas, duel meter interconnect for redundancy with the capacity to deliver in excess of 120 MMcfd Over 60k gross acres from several producers dedicated to the processing plant under long-term agreements. Long term gas and liquid sales agreements in place supporting takeaway reliability in-place and active discussions with other producers in the region to expand footprint 22

3 PennTex Permian Platform Detail Gathering System NM 80+ miles of low pressure 12 gas pipeline 35+ miles of intermediate pressure 12 gas pipeline with field compression Delaware Basin Midland Basin TX 35+ miles of 3 field condensate pipeline 40+ CDPs Central Platform Initial service March 2014 Pecos Processing Processing Plant 60 MMcf/d of cryogenic processing capacity Proposed (second plant) 120 or 200 MMcf/d cryogenic natural gas processing plant with expected in-service 3Q 2016 Redundant compression Residue gas delivered into El Paso s 36 pipeline in Reeves County, TX Compr essor Station 5 Pecos AMS Plant EPNG Delivery Compressor Station 1 Compressor Station 4 Ward NGL Pipeline Compr essor Station 7 20 Loop Line Phase 1 Reeves NGL s delivered into Lone Star via 25 miles of 8 pipeline with capacity equal to MMcf/d of plant inlet. Firm agreement in place for sale of NGL s to Lone Star Dedicated Acreage Receipt Points / CDP Compr essor Station 2 20 Loop Line Phase 2 EPNG Sales Point System Compr essor Station 3 Compr essor Station 6 EP Natural Gas Line

4 Benchmarking Gas Production with Pipeline and Processing Capacity How is drilling activity affected with regard to existing processing and pipeline takeaway capacity? To what degree? Competitiveness within Midstream Industry Willingness to share risk

5 Benchmarking Gas Production with Pipeline and Processing Capacity How is drilling activity affected with regard to existing processing and pipeline takeaway capacity? Today? Vs. One Year Ago? 55

6 Trending Rig Activity 66

7 How is drilling affected? One year ago? Crude trading $100+/brl Significant expansion Numerous Midstream Capital Projects Today? Crude trading ~$50/brl Producers drilling to hold acreage Evaluating Gathering and Gas Processing Capital Projects 77

8 Infrastructure development is similar when drilling for optimal production or to hold acreage Drilling for Production Drilling to Hold Acreage Processing Plant Processing Plant Gas Processing Plant plus 15 miles of Gathering & Compression 18,000 Mcf/day Production Gas Processing Plant plus 15 miles of Gathering & Compression 7,000 Mcf/day Production

9 Benchmarking Gas Production with Pipeline and Processing Capacity Immediate Needs for Further Gas Processing? Needs exist but the challenge in meeting those needs is now substantially different Remaining constraints from initial (prior two years) activity New/Future Needs New needs for gathering and gas processing are in many cases no longer concentrated Lack the immediate volume to support significant plant processing Competition forces the sharing of risk

10 Benchmarking Gas Production with Pipeline and Processing Capacity Projecting the location of new Supply The Permian remains one of the most economically attractive regions to operate Operators continue to improve recoveries and lower cost Drilling horizontal vs vertical Longer Laterals Large Completions Optimized landing zones Drilling faster

11 MMM Permian Midstream Congress