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Presentation to NAPTP

Presentation to NAPTP. May 23, 2013. Cautionary Language Re: Forward-Looking Statements.

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Presentation to NAPTP

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  1. Presentation to NAPTP May 23, 2013

  2. Cautionary Language Re: Forward-Looking Statements This presentation contains forward-looking statements. Western Gas Partners, LP and Western Gas Equity Partners, LP believe that their expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove to have been correct. A number of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this presentation. These factors include the ability to meet financial guidance or distribution-growth expectations; the ability to obtain new sources of natural gas supplies; the effect of fluctuations in commodity prices and the demand for natural gas and related products; the ability to meet projected in-service dates for capital growth projects; and construction costs or capital expenditures exceeding estimated or budgeted costs or expenditures, as well as other factors described in the “Risk Factors” section of Western Gas Partners, LP’s most recent Form 10-K and Western Gas Equity Partners, LP’s registration statement on Form S-1 filed with the Securities and Exchange Commission and other public filings and press releases made by Western Gas Partners, LP or Western Gas Equity Partners, LP. Neither Western Gas Partners, LP nor Western Gas Equity Partners, LP undertake any obligation to publicly update or revise any forward-looking statements. Please also see Western Gas Partners, LP’s earnings release, posted on its website at www.westerngas.com, and the information provided at the end of this presentation for reconciliations of the differences between any non-GAAP financial measures used in this presentation and the most directly comparable GAAP financial measures.

  3. APC – WGP – WES Relationships Anadarko Petroleum Corporation NYSE: APC 91.0% WGP Public Unitholders Western Gas Equity Partners, LP NYSE: WGP 9.0% 0.4% LP Interest 2.0% GP Interest 46.0% LP Interest WES Public Unitholders Western Gas Partners, LP NYSE: WES 51.6% Operating Subsidiaries Joint Ventures

  4. Two Public Securities • Adjusted EBITDA $410 – 450MM • Total Capex $550 – 600MM • Maint. Capex as % of Adj. EBITDA 9 – 12% • Minimum 15% Distribution Growth Western Gas Equity Partners, LP • Minimum 33% Distribution Growth Western Gas Partners, LP 2013 Outlook

  5. WES at IPO (2008) Powder River 2Q08 Gross Margin Uintah Dry Gas Basins (Non-Demand Charge) 85% Hugoton Bossier DelawareBasin Dry Gas Basins (Demand Charge) 15% Dry Gas Basin Pipelines 5

  6. Accretive Acquisitions Since IPO 3/2013 $490 MM Marcellus 9/2010 $38 MM10% of White Cliffs 12/2008 $210 MM PRB 7/2009 $107 MM Chipeta 51% 8/2012 $135 MM Chipeta 24% 7/2011 $130 MM Bison 1/2010 $254 MM Granger 3/2013 $134 MM CHK Marcellus 1/2012 $483 MM Red Desert 2/2011 $302 MM Platte Valley Dropdown Transaction 8/2010 $498 MMWattenberg Third-Party Acquisition 6

  7. The WES Asset Portfolio Average Daily Throughput Attributable to WES(1) MIGC Hilight Bison Marcellus Newcastle Fort Union Rendezvous Red Desert Granger Platte Valley Ft. Lupton Lancaster Chipeta Helper Wattenberg White Cliffs Clawson Hugoton • Current Assets / Investments • 15 natural gas gathering systems • 8 natural gas treating facilities • 10 processing facilities • 1 natural gas pipeline • 2 NGL pipelines • 1 crude oil pipeline 1. As reported Dew / Pinnacle Haley Brasada 7

  8. WES Today Powder River Marcellus Greater Green River Basin Niobrara 1Q13 Gross Margin Uinta DJ Basin Liquids-Rich Basins 67% Hugoton Marcellus Dry Gas 13% Bossier DelawareBasin Non-Marcellus Dry Gas (Cost of Service) 14% Non-Marcellus Dry Gas (Demand Charge) 6% Eagleford Assets well-positioned to gather and process third-party volumes Dry Gas Basin Liquids-Rich Basin Maverick Pipelines 8

  9. 2013 Capital and Equity Investments Excludes amounts spent on acquisitions

  10. Commodity Risk Management… • Long-term fee-based contracts and fixed-price agreements • Anadarko has retained commodity-price risk related to dropdown assets Gross Margin Last Twelve Months ending 3/31/2013 98% Fee-Based and Fixed-Price 2% Unhedged 10

  11. … and Dry Gas Volumetric Risk Management MIGC 52 MMcf/d Demand Charge Demand Charges - MIGC, Bison, Ft. Union Bison 332 MMcf/d Demand Charge Rate Reset Mechanism Ft. Union 83 MMcf/d Demand Charge Rate Reset Mechanism Rate Reset Mechanism Rate Reset Mechanism *As of March 31, 2013 • History of Rate Resets: • 2008 – Haley rate reset • 2011 – Pinnacle rate reset • 2012 – Haley rate reset • 2012 – Helper rate reset Rate Reset Mechanism Rate Reset Mechanism Rate Reset Mechanism

  12. Growth Strategy #1: Continued Dropdowns or Acquisitions MIGC Powder River Bison Hilight Newcastle Rendezvous Fort Union Red Desert Granger Platte Valley Ft. Lupton Lancaster Natural Buttes Helper Chipeta Wattenberg Wattenberg Plant Clawson White Cliffs Satanta Hugoton Front Range • Combined aggregate throughput of approximately 5.1 Bcf/d for 2012 • Anadarko continues to invest in midstream assets: • Over $1B in 2011 • Over $700MM in 2012 • Over $500MM expected in 2013 • Combined portfolio serves several major producing basins Texas Express Sabine Valley Haley Bone Spring Dew / Pinnacle East Chalk Ozona Brasada Maverick ____________________________________ (1) Including acquisitions. 12 Marcellus

  13. Growth Strategy #2: Organic Growth Projects Brasada Plant, Pipeline and Stabilization Facility(2Q 2013 expected start-up) 200 MMcf/d cryogenic processing train; $250 million total cost Serving liquids-rich Eagleford shale production from the Maverick Basin 10-year, 100% fixed-fee agreement 180 MMcf/d throughput guarantee (90% of capacity) from Anadarko Base case EBITDA multiple of ~6.5x 2014 EBITDA Lancaster Plant (1Q 2014 expected start-up) 300 MMcf/d cryogenic processing train; $160 million total cost Serving DJ Basin production (Niobrara and Codell formations in the Wattenberg field) 10-year, 100% fixed-fee agreement 270 MMcf/d throughput guarantee (90% of capacity) from Anadarko Base case EBITDA multiple of ~6.5x EBITDA 13

  14. Growth Strategy #3: Negotiated Equity Interests • APC has negotiated equity interests in concert with its long-term volume commitments to certain projects • 2010 – WES acquires and exercises APC’s 10% White Cliffs option Remaining APC Negotiated Equity Interests 14

  15. Predictable, Transparent Results WES Quarterly Distribution WES Reported EBITDA 17% LTM Growth 3-Year CAGR: 38% Note: All figures shown as originally reported

  16. www.westerngas.com

  17. Non-GAAP Adjusted EBITDA Reconciliation ____________________________________ As reported. Includes the Partnership's 51% share of income tax expense, depreciation, amortization and impairment, and other income, net, attributable to Chipeta Processing LLC.

  18. Non-GAAP DCF Reconciliation ____________________________________ As reported. Includes the Partnership's 51% share of income tax expense, depreciation, amortization and impairment, and other income, net, attributable to Chipeta Processing LLC. 3Q08-3Q09 distributions used in the coverage ratio calculation are based on the weighted average units outstanding during the period. Excludes $2.5 million prior-period benefit.

  19. www.westerngas.com

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