CHESAPEAKE MIDSTREAM DEVELOPMENT ACQUISITION DECEMBER 11, 2012

Similar documents
CHESAPEAKE MIDSTREAM PARTNERS MARCELLUS ACQUISITION

Chesapeake Midstream Partners Springridge Acquisition December 2010

2014 MASTER LIMITED PARTNERSHIP INVESTOR CONFERENCE MAY 22, 2014

Citi One-On-One MLP / Midstream Infrastructure Conference. August 20, 2014 Strong. Innovative. Growing.

GHS 100 Energy Conference. June 24, 2014

Citi 2014 MLP/Midstream Infrastructure Conference. August 20-21, 2014

UBS One-on-One MLP Conference

Crestwood Midstream Partners LP Arrow Acquisition Overview October 10, 2013

EV Energy Partners, L.P J.P. Morgan Global High Yield and Leveraged Finance Conference

EV Energy Partners, L.P RBC Capital Markets' MLP Conference. November 18, 2015

Credit Suisse MLP & Energy Logistics Conference

RBC Capital Markets MLP Conference

EQM & EQGP Investor Presentation

Investor Presentation. March 2-4, 2015 Strong. Innovative. Growing.

Wells Fargo Pipeline, MLP & Energy Symposium

EQM & EQGP Investor Presentation

2012 Wells Fargo Securities Research & Economics 11 th Annual Pipeline, MLP and Energy. Symposium

Morgan Keegan MLP Conference May 18 th, 2010

RBC Capital Markets 2013 MLP Conference

Investor Presentation. January 4, 2017

First Quarter 2017 Earnings Call Presentation May 9, 2017

2015 NAPTP MLP Investor Conference. May 21, 2015

Credit Suisse 3 rd Annual MLP & Energy Logistics Conference June 23, 2015

EV Energy Partners, L.P. Wells Fargo Energy Symposium

Wells Fargo 8th Annual Pipeline and MLP Symposium. December 8 th, 2009 Bill Davis, Chief Financial Officer

Goldman Sachs Power, Utilities, MLP & Pipeline Conference. August 11, 2015 Strong. Innovative. Growing.

Williams also today announced a proposal to merge Williams Partners L.P. (NYSE:WPZ) with and into Access Midstream Partners.

Second Quarter 2017 Earnings Call Presentation August 3, 2017

EV Energy Partners, L.P. Citi MLP/Midstream Infrastructure Conference

Forward Looking Statements

2013 Citi One-on-One MLP / Midstream Infrastructure Conference August 21-22, 2013

CONE Midstream Partners LP. Capital Link MLP Investing Forum March 5, 2015

Investor Relations Presentation

Antero Resources Announces 2015 Capital Budget and Guidance

Utica Midstream Summit MarkWest Update. April 4, 2018

UBS MLP 1v1 Conference September 1 & 2, 2010

CNX Midstream Partners LP Transaction Conference Call. January 4, 2018

ENERGY TRANSFER EQUITY, L.P.

EQM & EQGP Investor Presentation

Investor Relations Presentation

Enable Midstream Partners, LP

Connections for America s Energy. Wells Fargo 2013 Annual Energy Symposium. Presentation Title. Presentation Subtitle 12/10/2013. December 10-11, 2013

EQM & EQGP Investor Presentation

2012 Wells Fargo Securities Research & Economics 11 th Annual Pipeline, MLP & Energy Symposium. December 4, 2012

Second Quarter 2016 Earnings Call Presentation August 3, 2016

Morgan Stanley Midstream MLP and

Fourth Quarter 2017 Earnings Presentation. February 14, 2018

Enable Midstream Partners, LP

Simplification Overview and

Targa Resources. Acquisition of Atlas Pipeline Partners, L.P. and Atlas Energy, L.P. October 2014

Investor Presentation

Investor Relations Presentation

Expected Closing. Strategic Rationale

Investor Presentation August 2015

Atlas Pipeline Partners, L.P.

Williams and Williams Partners Fourth Quarter 2017 Earnings Call

Enable Midstream Partners, LP

THE TRANSFORMATION AND THE FUTURE. Doug Lawler President and Chief Executive Officer

JP Morgan High Yield & Leveraged

USA Compression Partners, LP Jefferies Global Energy Conference 2013 November 13, 2013

Third Quarter 2018 Earnings Call Presentation NOVEMBER 1, 2018

Regency Energy Partners LP NAPTP MLP Investor Conference May 22, 2013

Shea Snyder. Devon Energy and Crosstex Energy to Create New Midstream Business

Tudor Pickering Holt & Co. Midstream / Chemicals / NGL Conference

CONE Midstream Partners LP. Citi 2015 MLP/Midstream Infrastructure Conference August 19-20, 2015

Antero Midstream Reports Fourth Quarter and Full Year 2016 Financial and Operational Results

Williams and Williams Partners Third Quarter Earnings Call

Morgan Stanley MLP Bus Tour

Investor Presentation. March 2014

NAPTP MLP Investor Conference. May 23, 2013

Antero Midstream and AMGP Report Second Quarter 2018 Financial and Operating Results

Antero Resources to Acquire 55,000 Net Acres in the Core of the Marcellus Shale

Streamlining Transaction Summary. April 2018

EV Energy Partners (EVEP) Supporting Materials for March 1, 2013 Conference Call

ENERGY TRANSFER EQUITY

MMM. Permian Midstream Congress

Shell Midstream Partners, L.P. (SHLX) Morgan Stanley Presentation. Shell Midstream Partners

February 5, 2013 Cleveland, Ohio

Enable Midstream Partners, LP

Connections for America s Energy. Investor Presentation. Presentation Title. Presentation Subtitle. March /3/2015

Investor Presentation. December 2016

Williams and Williams Partners 2 nd Quarter Earnings Call August 2, 2018

2017 WELLS FARGO PIPELINE, MLP AND UTILITY SYMPOSIUM

Antero Midstream Partners LP

Crestwood Announces First Quarter 2018 Financial and Operating Results

Capital Link Master Limited Partnership Investing Forum

Copano Energy. Memphis, TN

Midcoast Energy Partners, L.P. Investment Community Presentation. March 2014

Jefferies 2012 Global Energy Conference

1Q 16 EARNINGS May 5, 2016

Tall Oak Midstream Acquisition December 7, 2015

Rice Midstream Partners First Quarter 2016 Supplemental Slides May 4,

Connections for America s Energy. Jefferies 2017 Investor Conference. Presentation Title 11/28/17

Antero Resources Reports First Quarter 2013 Results

January SemGroup and KKR Form Canadian Joint Venture and Acquire Meritage Midstream ULC

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

Partnership Overview JANUARY 2019

MPLX Overview. Scott Garner, VP Corporate Development October 19, 2017

Rice Midstream Partners First Quarter 2015 Supplemental Slides May 7, 2015

Second Quarter 2018 Earnings Presentation. August 2, 2018

Transcription:

CHESAPEAKE MIDSTREAM DEVELOPMENT ACQUISITION DECEMBER 11, 2012

TRANSACTION OVERVIEW ACMP Acquisition of CHK Midstream Assets (CMD) ACMP to acquire a substantial majority of Chesapeake Energy s remaining midstream assets ( CMD ) for $2.16 billion Unique opportunity to accelerate ACMP s drop down story Partnership establishes a significant footprint in leading unconventional basins Enhances strategic scale and diversity WMB Strategic Investment in ACMP The Williams Companies, Inc. ( WMB ) to partner with GIP, enhancing sponsorship of ACMP WMB to acquire 50% of ACMP GP and ~23% of LP Units; an endorsement of ACMP s strategic platform and potential Leading midstream operational and development capabilities complement ACMP s already strong position Substantial GIP and WMB Equity Commitment Sponsors investing new long-term equity in transaction $1.16 billion committed Equity structured with PIK and subordinated features to support near-term build out of gathering and processing platform Demonstrates commitment to ACMP s long term success 2

KEY TRANSACTION HIGHLIGHTS CMD Areas of Operation Key Transaction Highlights Expanding Footprint and Scale Increased Diversification Low Risk Contract Structure Predictable Cash Flow Growth High Quality Organic Growth Platform Strong Sponsorship from GIP / WMB 3

TRANSACTION HIGHLIGHTS EXPANDS SCALE AND DIVERSITY WITH STRATEGIC SPONSOR SUPPORT Expanding Footprint and Scale Creates the largest gathering and processing MLP measured by volume and invested capital Addition of CMD midstream assets positions ACMP among largest midstream MLPs Increased Diversification Low Risk Contract Structure Adds significant acreage dedications in key unconventional basins Enhanced exposure to oil/liquids focused drilling and entry into gas processing segment of the value chain Low-risk gathering and processing contracts with appropriate downside protection that provide stable cash flow profile No direct commodity exposure in all basins with contractual features supporting cash flow generation Predictable Cash Flow Growth Contractual features deliver predictable, growing cash flows Near-term contractual downside protection provides near-term revenue risk mitigation High Quality Organic Growth Platform Industry leading long-term organic growth project pipeline Substantial growth capex expected to be deployed in the next five years, earning a contractual mid-teens return Strong Sponsorship from GIP / WMB Significant incremental equity investment from strong sponsors in GIP and WMB Williams adds vast expertise across the midstream value chain for natural gas and NGLs with its significant strategic investment and endorsement of ACMP 4

SCALE OF ACMP OPERATIONS ACMP IS THE LARGEST G&P MLP MEASURED BY VOLUME AND INVESTED CAPITAL 3Q 2012 PF Average Daily Throughput of Gathering Assets Key Operating Data (1) Mmcfe/d 4,500 Current Pro Forma 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 (1) ACMP NGLS XTEX DPM MWE RGP WES CPNO CMLP APL Basins 7 10 Invested Capital: $3.8 billion $6.0 billion Dedicated Acreage: 4.4 million 8.7 million Miles of Pipe: 4,155 5,828 Volume: (mmcf/d) 2,825 3,909 Wells Gathered: 5,808 8,603 Direct Employees: 533 1,124 (1) Data for 3 months ending 9/30/12 from quarterly filings and is pro-forma to include CMD throughput. 1. Actual throughput volumes of 2,802MMcf/d; contribution from dropped assets of ~574MMcf/d. 5

BASIN AND CUSTOMER DIVERSIFICATION EXPANDING ACCESS TO BASINS AND CUSTOMER BASE Growth from seven to ten basins Greater geographic diversity Current ACMP Assets Pro Forma ACMP Assets Pro Forma ACMP Customer Base Chesapeake ExxonMobil Statoil Total Anadarko Shell Mitsui Enervest 6

BASIN DIVERSIFICATION BROAD EXPOSURE TO WET GAS, OIL, AND DRY GAS RESOURCE PLAYS Barnett Marcellus Mid-Continent Haynesville Eagle Ford Utica Niobrara Basin Characteristics Dry Gas Dry Gas; Wet Gas Dry Gas; Wet Gas; Oil Dry Gas Wet Gas; Oil Dry Gas; Wet Gas; Oil Wet Gas; Oil Gas Gathered (3Q 2012) 1,236 MMcfd 717 MMcfd 573 MMcfd 1,189 MMcfd 158 MMcfd 26 MMcfd 10 MMcfd Existing Dedication Current / Pro Forma (acres) 931,000 / 931,000 1,329,000 / 1,740,000 1,964,000 / 1,964,000 209,000 / 547,000 0 / 1,382,000 0 / 1,846,000 0 / 311,000 Business Lines Gas Gathering; Treating; Compression Gas Gathering; Compression Gas Gathering; Treating; Compression Gas Gathering; Treating; Compression Gas Gathering; Treating; Compression Gas Gathering; Treating; Compression; Gas Processing and Fractionation Gas Gathering; Treating; Compression; Gas Processing Contract Terms MVC and Fee Redetermination and EBITDA Guaranty Annual Fee Redetermination Annual Fee Redetermination / MVC and Fee Tiers and Fee Tiers (gathering) / Fixed-Fee (processing) 7

CONTRACT STRUCTURE PREDICTABLE BUSINESS MODEL EXTENDS TO NEW BASINS ACMP Haynesville Eagle Ford Utica Niobrara Direct Commodity Price Exposure None None None None None Contract Structure, Fee Redetermination, MVC Fixed Fee with MVC and Fee Tiers and Fee Tiers (gathering) / Fixed Fee (processing) Re-Contracting 15 20 Year Acreage Dedications 20 Year Acreage Dedication 20 Year Acreage Dedication 15-20 Year Acreage Dedication 20 Year Acreage Dedication Volume Protection MVC, Fee Redetermination, EBITDA Commitment 5 Year MVC, Fee Tiers Two Year Fee Tiers, (gathering only) Inflation Protection Escalation, 2.5% Fee Escalation (gathering) / 1.5% Fee Escalation (processing) Capital Protection, Fee Redetermination Annual Fee Redetermination (gathering only) Business Model Provides Low Risk, Visible Distributions 8

STRONG SPONSORSHIP SPONSORS BRING COMBINATION OF OPERATIONAL AND FINANCIAL EXPERTISE AND RESOURCES WMB Leading Midstream Player Williams provides an established history of managing, developing and completing large scale organic projects within the midstream sector Williams management team adds further operational and development experience Potential to expand services to new customer base Ability to take advantage of shared services Benefit from best practices from industry leader GIP Leading Infrastructure Investor Energy sector expertise combined with industrial operational management Global infrastructure fund manager with over $15 billion under management Energy investments include ACMP, Ruby Pipeline, Transitgas Pipeline, Terra- Gen Power and Channelview Cogeneration Significant Sponsor Equity Commitment GIP and WMB committing $1.16 billion to transaction funding Sponsor equity structured for long-term to support transaction Significant WMB strategic investment provides endorsement of transaction 9

PARTNERSHIP STRUCTURE STRATEGIC GENERAL PARTNERS; STRONG GOVERNANCE Pre-Transaction Structure Pro Forma ACMP Structure Global Infrastructure Partners II Global Infrastructure Partners I Global Infrastructure Partners II The Williams Companies, Inc LP units 50% 50% LP units LP units PIK units 50% 50% LP units PIK units Access Midstream Partners GP, LLC 100% of 2% GP interest + IDRs Public Common Unit Holders LP units Access Midstream Partners GP, LLC 100% of 2% GP interest + IDRs Public Common Unit Holders LP units Access Midstream Partners, LP (NYSE:ACMP) Access Midstream Partners, LP (NYSE:ACMP) Existing Operating Assets (Barnett, Marcellus, Haynesville, Mid-Continent) Existing Operating Assets CMD Chesapeake Midstream Development Mid- Continent Potential 1Q 13 Transaction 10

ACQUISITION FUNDING Debt financing backstopped by $1.0 billion bridge facility commitment Equity financing backstopped by $1.16 billion commitments from sponsors Expect to close by end of 2012 regulatory approvals complete Sources ($MM) Bridge Facility $1,000.0 Sponsor Equity Commitments 1,160.0 Uses ($MM) CMD Acquisition $2,160.0 Total $2,160.0 Total $2,160.0 11

FINANCIAL OUTLOOK POST-ACQUISITION ACMP FINANCIAL OUTLOOK 2013/2014 ACMP Financial Outlook ($ million) 2013 2014 Pre-Acquisition Post-Acquisition Pre-Acquisition Post-Acquisition EBITDA 550-575 800 850 600-650 1,000 1,100 Growth Capital 550-600 1,600 1,700 300-325 1,000 1,100 Maintenance Capital ~74 ~110 ~74 ~110 CMD transaction will allow sustained 15% annual distribution growth 12

APPENDIX

CMD EAGLE FORD OVERVIEW LIQUIDS RICH BASIN Resource Services Asset Summary Associated Gas (Oil), Wet Gas Gathering, Compression, Treating Gas Gathering Systems 12 Amine Treater (H 2 S) Miles of Pipeline (In-Service) 1 (30 MMcf/d) 615.8 Gas Delivery Points 18 Gas Gathered (3Q 2012) Contract Structure 158 MMcf/d, Fee Tiers in 2013, 2014 Dedicated Acreage 1,382,000 Asset Map 14

CMD UTICA GATHERING SYSTEM OVERVIEW WET GAS, DRY GAS AND NGL SERVICES Asset Asset Summary Cardinal Gas Services ( CGS ) Utica Gas Services ( UGS ) Asset Map Resource Services Associated Gas (Oil), Wet Gas Gathering, Compression, Dehydration Dry Gas Gathering, Compression, Dehydration Gas Gathering Systems 5 4 CDP / Interconnect 2 1 Miles of Pipeline (In-Service) 44.2 8.1 Delivery Points 5 1 Gas Gathered (3Q 2012) 23 MMcf/d 3 MMcf/d Ownership CMD 66%, Operator TOTAL 25% EnerVest 9% 100% CMD owned and operated Contract Structure Dedicated Acreage 1,453,000 393,000 15

CMD UTICA EAST OHIO PROCESSING OVERVIEW PROCESSING DEDICATION IN WET GAS WINDOW Current Status Processing Plants Fractionation NGL Storage Processing Spine Pipeline Project Summary Under Construction 3 (200 MMcf/d each) 90,000 Bbl/d (C2+) 870,000 Bbls Propane 450,000 Bbls Butane 300,000 Bbls Natural Gasoline 120,000 Bbls 24 processing spine pipeline Asset Map NGL Pipeline Residue Gas Delivery Points 12 NGL pipeline NGL Delivery Points 2 Contract Structure 2 Fixed Fee with capex protection Ownership CMD 49% Momentum 30% EnerVest 21% 16

CMD NIOBRARA OVERVIEW LIQUIDS-RICH GATHERING & PROCESSING DEDICATION WITH COST OF SERVICE CONTRACT STRUCTURE Asset Summary Asset Map Resource Associated Gas (Oil), Wet Gas Services Gathering, Compression, Processing Gas Gathering Systems 2 Miles of Pipeline (In-Service) 60.1 Delivery Points 2 Gas Gathered (3Q 2012) 10 MMcf/d Contract Structure Dedicated Acreage 311,000 Ownership CMD 50% RKI Exploration 50% 17

CMD HAYNESVILLE OVERVIEW MATURE ASSET WITH CONTRACTUAL PROTECTION Asset Summary Resource Dry Gas Asset Map Services Gathering, Compression, Treating Gas Gathering Systems 4 Treating Facilities Miles of Pipeline (In-Service) North DeSoto: 550 MMcf/d Converse: 330 MMcf/d Freeman: 120 MMcf/d 325.3 Delivery Points 7 Gas Gathered (3Q 2012) 864 MMcf/d Contract Structure Fixed fee with MVC and fee tiers Dedicated Acreage 338,000 18

CMD MARCELLUS OVERVIEW INCREMENTAL MARCELLUS DEDICATION Resource Services Low Pressure Gas Gathering Systems Asset Summary Dry Gas Gathering, Compression CDP / Interconnect 24 Miles of Pipeline (In-Service) Miles of Pipeline (Construction or Route Dev.) 24 619.2 Compressor Stations 13 0 Asset Map Gas Gathered (3Q 2012) 26 MMcf/d Ownership 100% Dedicated Acreage 411,000 19

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 ( Chesapeake or CHK ), Total E&P USA, Inc. ( Total ) and other producers for a substantial majority of our revenues; the impact on our growth strategy and ability to increase cash distributions if Chesapeake, Total or other 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 with Chesapeake or Total; the availability, terms and effects of acquisitions from Chesapeake; our potential inability to maintain existing distribution amounts or pay the minimum quarterly distribution to our unitholders; the limitations that Chesapeake s and our own 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 Chesapeake for substantially all 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 2011 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. 20