Bill Waldheim Business Unit President November 3, 2011

1. PFAA – 18th Annual Conference NGL Infrastructure Back to the Future Bill WaldheimBusiness Unit President November 3, 2011

2. NGL Infrastructure 1985 1955

3. NGL Infrastructure Doc Brown Einstein Flux Capacitor

4. NGL Infrastructure DeLorean 1981

5. NGL Infrastructure What musician or band wrote the soundtrack for the original movie? Huey Lewis and the News!

6. Back in Time – 1990’s-2000’s Rockies Mid-Continent Permian Gulf Coast GOM 2000-2010 1986-2000 • A period of declining domestic crude oil production and uncertain gas production

7. Gas Evolution Timeline Infrastructure Build 1990 2010 Supply Build Demand Build Overbuild • More capacity than needed • Repurpose lines • Marcellus displacement • REX - Rockies & MidCont to East Coast • Gulf Stream - Gulf Coast to Florida • Expanding of Transwestern, El Paso & Questar • Maritimes • Portland Natural Gas Pipeline • Expansion of Texas Intrastate Pipeline infrastructure • Shift in power generation & industrial loads to gas • PetChem industry relied on heavier (Naptha) feeds • Rising demand for plastic & packaging materials • Viewed as environmentally friendly energy source • Deregulate natural gas industry • Conventional / Tight Sands Drilling • Rising natural gas prices • NGPA pricing incentives • More than 20,000 miles of natural gas transmission pipelines were placed in service in the US over the past 10 years

8. Historical Gas Infrastructure Constraints West to East Flows Market Market Production Growth Areas Move East Capacity Constraints • High gas production with capacity bottlenecks to move gas to market

9. Gas Infrastructure West to East Bottleneck • Gas Infrastructure proposals to alleviate capacity constraints

10. Gas Basis Spreads • Natural Gas basis spreads narrowed with Gas infrastructure build out

11. 2000’s forward • Drilling shifts to liquids rich areas, driving growth in NGL supply

12. Increased NGL Supply Bottleneck • New rich shale gas driving the need for additional NGL Infrastructure

13. NGL Infrastructure Constraints Market Wet Gas Fairway Capacity Constraints Market • NGL evolution is beginning similar to Gas. High NGL production with capacity constraints to move to market

14. Proposed NGL Infrastructure • Additional access to Mt. Belvieu expected to drive a tightening in Conway/Belvieu basis spreads

15. DCP Midstream’s NGL Projects • Providing customers with NGL transportation services

16. Basis Spreads ?? • Expect basis spreads to narrow with additional pipeline infrastructure build

17. NGL Evolution Timeline 2000 Forward Infrastructure Build Supply Build Demand Build Overbuild • What’s next? • Narrow basis spreads • Operational improvements • Extra capacity to handle outages and turnarounds • Reverse flow on NGL Lines • Repurposing • Mapco • Seminole • Chevron • Oneok - OPPL • Southern Hills • Oneok - Sterling • Sand Hills • MEPS • Vantage Pipeline • Lone Star West Texas Pipeline • Texas Express Pipeline • Shift from to gas fired power generation • Petrochemical companies incentives to convert to lighter feed stocks • Increased consumer demand for plastics and packaging materials • Emerging Shale pays • New horizontal drilling technology • Gas to crude ratios • Infrastructure needed to meet production and demand growth

18. Evolution Timeline • The NGL market development cycle is evolving similar to gas, just later in time.

19. Summary ?