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1 Columbia Pipeline Group // MRC Global
Confidential Information
Columbia Pipeline Group // MRC Global
September 2015
Sheree Parks Downey
Vice President, Supply Chain
Columbia Pipeline Group
Rory Isaac Senior Vice President, Business Development
MRC Global Inc.
2 Columbia Pipeline Group // MRC Global
Confidential Information
Agenda
Columbia Pipeline Group Overview
MRC Global Overview
Finding the Right Integrated Supply Partner
A Relationship Built to Last
Foundation of Trust, Respect and Mutual Values
Questions
3 Columbia Pipeline Group // MRC Global
Confidential Information
Business Update
NYSE Bell Ringing – July 8, 2015
4 Columbia Pipeline Group // MRC Global
Confidential Information
Columbia Pipeline Group
• Continue to Deepen Growth Project Inventory
• Optimize & Expand Strategically Located Assets & Midstream Franchise
• Grow Investment-Driven Earnings, Cash Flow & Dividends
• Maintain Solid Investment Grade Rating
Providing Value to Shareholders
Delivering for Customers
• Maintain Safe, Reliable System
• Meet or Exceed Customer Expectations Every Day
• Deliver Projects On-Time, On-Budget & Safely
• Partner with Customers in Creative, Transparent & Respectful Ways
• Provide Open, Consistent & Convenient Customer Communication
Engaging Employees
• Advance Interdependent Safety Culture
• Provide Employees with Leadership & Talent Development
Opportunities
• Foster a Collaborative, Inclusive & Diverse Work Environment
• Keep Employees Engaged & Informed Through Frequent, Transparent
Communications
Three Stars: Representing CPG’s Commitment to…
5 Columbia Pipeline Group // MRC Global
Confidential Information
Columbia Pipeline Group
5
A Premier Pipeline, Midstream and Storage Company
• Serving Attractive Northeast,
Midwest, Mid-Atlantic and Gulf
Coast Markets
• Strategically Positioned Overlaying
Prolific Marcellus and Utica Shale
Regions
• ~15,000 Pipeline Miles
• ~1.3 Tcf Annual Throughput
• ~300 MMDth of Working Gas
Capacity
• Diversified and High-Quality
Customer Base: LDCs, Gas-Fired
Electric Generators, Producers and
Marketers
• Anchored by Long-Term Fee-Based
Contracts
• Robust Growth Profile
6 Columbia Pipeline Group // MRC Global
Confidential Information
Columbia Pipeline Group
Executing CPG’s 4M Strategy
Safe, Engaged, Diverse Employees
M M
M M
Key Deliverables
• ADVANCE Our Safety Culture
• DELIVER Safe, Reliable Service Every Day
• EXECUTE Projects On Time, On Budget
• REGAIN Premier Customer Service Position
• DEEPEN Our Project Investment Inventory
• GROW Our Midstream Business
• IMPLEMENT Process Excellence
• DELIVER Financial Results
Marketing, Modernization, Midstream & Minerals
7 Columbia Pipeline Group // MRC Global
Confidential Information
CPG Interstate Pipeline and Storage Assets
Inte
rsta
te P
ipe
lin
e &
Sto
rag
e
11,395 mile interstate pipeline
Operations are located in Delaware, Kentucky, Maryland, New Jersey, New York, North Carolina,
Ohio, Pennsylvania, Virginia and West Virginia
89 compressor stations with 635,671 horsepower of installed capacity and ~3,400 underground
storage wells with approximately 290 MMDth of working gas capacity
3,341 mile interstate pipeline
Operations are location in Kentucky, Louisiana, Mississippi, Tennessee, Texas and Wyoming
11 compressor stations with ~470,200 horsepower of installed capacity
Columbia OpCo owns a 47.5% ownership interest in Millennium Pipeline Company, which
transports an average of 1 MMDth/d of natural gas
Columbia OpCo owns at 49% ownership interest in Hardy Storage Company, LLC, which
owns an underground gas storage field in Hardy and Hampshire counties in West Virginia.
Hardy Storage has a working storage capacity of ~12MMDth
Millennium Pipeline Joint Venture
Columbia Gas Transmission
Columbia Gulf Transmission
Strategically located network of FERC-regulated interstate pipelines and natural gas storage systems.
Hardy Storage Joint Venture
8 Columbia Pipeline Group // MRC Global
Confidential Information
CPG Gathering, Processing and Other Assets
8
Gath
eri
ng
& P
rocessin
g
Oth
er
Northern West Virginia and Southwestern Pennsylvania
350 MMcf/d wet gas gathering pipeline system
Western Pennsylvania
20’’ and 24’’ high pressure gathering pipeline system with 425 MMcf/d of capacity
Northeast Ohio and Western Pennsylvania
50/50 partnership with Hilcorp affiliate
43 miles of wet gas gathering pipelines with 500 MMcf/d of capacity, a 200 MMcf/d cryogenic
processing plant and a 37 mile 45,000 Bbl/d NGL pipeline (expandable to 90,000 Bbl/d)
Pennant JV / Hickory Bend Gathering System
Majorsville Gathering System
Big Pine Gathering System
Manages Columbia OpCo’s mineral rights positions in the Marcellus and Utica shales
Owns production rights to over 450,000 acres and has sub-leased the production rights in
four storage fields and has also contributed its production rights in one other field
9 Columbia Pipeline Group // MRC Global
Confidential Information
By the Numbers1
Industry Sectors Product
Categories
Business
Model
TTM Sales
TTM Adjusted EBITDA
$5.621B
$384M
Locations 400+
Countries
• Operations
• Direct Sales
(>$100,000)
• All countries
22..
45+
90+
Customers 21,000+
Suppliers 21,000+
SKU’s 230,000+
Employees ~4,500+
Company Snapshot
US
77%
Canada
9%
Europe / Asia
Pacific
14%
MRC Global is the largest global distributor of pipe, valves and fittings (PVF) to the energy industry
Upstream Valves
Midstream
Downstream /
Industrial
Line Pipe / OCTG
Fittings / Flanges
1. Trailing 12-month period as of June 30, 2015.
10 Columbia Pipeline Group // MRC Global
Confidential Information
MRC Global Footprint
400+ global locations // Sales to 90+ countries
Regional Distribution Centers
Corporate Headquarters
Valve Automation Centers
Branch Locations
North America International
Branches US = 125+
Canada = 35+ 60+
Distribution Centers
US= 9
Canada = 1
Australia = 2
Netherlands = 1
Norway = 1
Singapore = 1
UAE = 1
UK = 1
Valve Automation Centers US =13
Canada = 1 20
Carbon Tubular Locations US = 97
Canada = 18 22
11 Columbia Pipeline Group // MRC Global
Confidential Information
MRC Global’s Valve Business
At a Glance
1. Trailing 12-month period as of June 30, 2015.
Valve & Specialty
Product Sales
Current Valve
Inventory
Valve Actuation
Centers
Valve Distribution
Centers
Valve Engineers
6
34
$350 million+
$1.8 billion+1
200+
12 Columbia Pipeline Group // MRC Global
Confidential Information
In the Beginning (1997)
• High staffing levels (warehouse, procurement, transportation)
• Changing regulations
• High inventory investment
• Technology challenges
• Managing multiple relationships
Focus on the Core Business
13 Columbia Pipeline Group // MRC Global
Confidential Information
In the Beginning (1997)
100s of manufacturers 1000s of products 100s of delivery sites +
Inefficient Supply Chain
Projects
Operations &
Maintenance
Manufacturers and Distributors CPG Activity
14 Columbia Pipeline Group // MRC Global
Confidential Information
GOALS
Focus on the Core Business
Streamline Operations
Increase Efficiencies
Improve Cost-competitiveness
SOLUTION
Find the right partner with the right strengths
INTEGRATED SUPPLY PARTNER
15 Columbia Pipeline Group // MRC Global
Confidential Information
Looking For an Extension of Our Supply Chain
• Leverage the use of technology and industry best practices (estimating,
bidding, procurement, and payment)
• Leverage material requirements to provide lowest total cost of ownership
• Identify and align with key manufacturers for strategic alliances
• Minimize product lead times through utilization of inventories and other
strategic initiatives
• Ensure continuity of supply of quality materials per CPG specifications and
Approved Manufacturers List
• Align with material needs and business requirements
• Delivery of reliable materials safely, on-time, and on-budget
16 Columbia Pipeline Group // MRC Global
Confidential Information
The Transformation
Projects
Operations &
Maintenance
CPG Activity
INTEGRATED SUPPLY PARTNER
Manufacturers and Distributors
17 Columbia Pipeline Group // MRC Global
Confidential Information
Choosing the Right Partner
• Vision and Values
• Infrastructure
• Service Offerings
• Process Excellence
• Recognition in the
Marketplace
• Pricing Structure
• Sustainability
18 Columbia Pipeline Group // MRC Global
Confidential Information
Why Still Today?
Executing on Our Robust Investment Opportunity
Significant Net Investment Growth
$0.9B
$2.7B
$1.0B ~$13.5B
19 Columbia Pipeline Group // MRC Global
Confidential Information
• Transaction Management
• Quality Audits Product Inspections
• Electronic and Systems Integration
• Technical Expertise
• Market Experience / Intelligence
• Standardization
• Inventory Management
• Material Handling and Storage
• Logistics Management
• Leverage Spend for Savings
Eliminates
Redundancies
Reduces
Total Cost
MRC Global Integrated Supply Offering
20 Columbia Pipeline Group // MRC Global
Confidential Information
CPG // MRC Global Contract
Products
• Mainline pipeline ball valves
• All other valves
• All line pipe
• OCTG
• Wellhead equipment
• High yield fittings and flanges
• Code tanks and vessels
• Cathodic protection
• Automation and Controls
• Instrumentation
• Fabricated equipment
• Electrical
• Metering
• Regulation
Anything CPG asks us to find
21 Columbia Pipeline Group // MRC Global
Confidential Information
CPG // MRC Global Contract
Solutions
• Inventory Availability
• Pre-purchase of materials into MRC Global inventory for project usage
• AML Management / Quality
• Collaborative management of CPG’s AML and material specifications
• Material Staging
• Pre-project planning to ensure availability
• Materials Management
• Joint management of material and logistics to provide accountability – beyond our traditional role
• Logistics,
• Mobile Storage Units
• Specific and general project material
• Dedicated Resources
• Forecasting, bidding, purchasing, expediting, logistics, etc.
• Systems Integration
• Streamlining business transactions
• Valve Automation
• Technical Support
22 Columbia Pipeline Group // MRC Global
Confidential Information
CPG // MRC Global
Integrated Business Partners
What We Are
• An extension of the CPG Supply Chain
• The RIGHT PEOPLE collaborating on key supply chain functions
• Audits, AML, project planning and development, electronic processes, etc.
• Daily field service team
• Long-term project management service team
What We Are Not
• Traditional buy-sell distributor
• Manufacturer
We are not you and we still need you!
23 Columbia Pipeline Group // MRC Global
Confidential Information
Integrated Supply Adds Value to Manufacturers
Provides resources more suited to distribution model
• Manage services
• Provide transactional efficiencies and e-commerce connectivity with
customers
• Understand customer valve requirements and specifications
• Lead customers and manufacturers through the quality process
• Monitor and utilize existing inventory
• Bring together manufacturers with decision makers in the customer
organization
24 Columbia Pipeline Group // MRC Global
Confidential Information
A Relationship Built to Last
Surviving Change
3
1997
3
2000
5
2003
5
2008
5
2013
Columbia Energy Group
THEN NOW Right Decision Right Reasons
25 Columbia Pipeline Group // MRC Global
Confidential Information
Premier Pipeline, Midstream and
Storage Company
Two Companies with Common Values
Personal Accountability
Integrity
Safety Results
Inclusion
Teamwork
Employee
Development
Safety Teamwork
Customer
Satisfaction
Operational
Excellence Business
Ethics
Premier PVF Products and
Services Distribution Company
Personal Accountability
Integrity
Safety Results
Inclusion
Teamwork
Personal
Accountability
Safety Teamwork
Inclusion
Results Integrity
26 Columbia Pipeline Group // MRC Global
Confidential Information
Safe Reliable On time On budget
TRUST – RESPECT – MUTUAL VALUES