Upload
vongoc
View
216
Download
0
Embed Size (px)
Citation preview
www.nblmidstream.com
Wells FargoPipeline, MLP and Utility Symposium
December 6 & 7, 2016
www.nblmidstream.com
Forward Looking Statements and Non-GAAP Measures
This presentation contains certain “forward-looking statements” within the meaning of the federal securities law. Words such as “anticipates”, “believes”,“expects”, “intends”, “will”, “should”, “may”, “estimate” and similar expressions may be used to identify forward-looking statements. Forward-lookingstatements are not statements of historical fact and reflect Noble Midstream Partners LP’s (“the Partnership” or “Noble Midstream”) current views aboutfuture events. No assurances can be given that the forward-looking statements contained in this presentation will occur as projected, and actual results maydiffer materially from those projected. Forward-looking statements are based on current expectations, estimates and assumptions that involve a number ofrisks and uncertainties that could cause actual results to differ materially from those projected. These risks include, without limitation, Noble Energy Inc.’sability to meet their drilling and development plans, changes in general economic conditions, competitive conditions in the Partnership’s industry, actionstaken by third-party operators, gatherers, processors and transporters, the demand for crude oil and natural gas gathering and processing services, thePartnership’s ability to successfully implement its business plan, the Partnership’s ability to complete internal growth projects on time and on budget, theprice and availability of debt and equity financing, the availability and price of crude oil and natural gas to the consumer compared to the price of alternativeand competing fuels, and other risks inherent in the Partnership’s business that are discussed in its most recent registration statement on Form S-1 and inthe Partnership’s other reports on file with the Securities and Exchange Commission (“SEC”). These reports are also available from the Partnership’s office orwebsite, www.nblmidstream.com. Forward-looking statements are based on the estimates and opinions of management at the time the statements aremade. Noble Midstream does not assume any obligation to update forward-looking statements should circumstances or management's estimates oropinions change.
This presentation also contains certain non-GAAP measures of financial performance that management believes are good tools for internal use and theinvestment community in evaluating Noble Midstream’s overall financial performance. Please see the attached schedules for reconciliations of the non-GAAPfinancial measures used in this presentation to the most directly comparable GAAP financial measures.
In this presentation, we refer to certain results as “attributable to the Partnership.” Unless otherwise noted herein, this reflects the results of the Partnershipas if it had been in existence for the entire second and third quarters of 2016 and excludes the non-controlling interests in the development companies(“DevCos”) retained by Noble Energy in connection with the closing of our IPO on September 20, 2016. We believe the results “attributable to thePartnership” provide the best representation of the ongoing operations from which our unitholders will benefit. Unless otherwise noted herein, all otherresults included in this presentation reflect the results of our predecessor for accounting purposes (our “Predecessor”), for periods prior to the closing of theIPO, as well as the results of our Partnership, for the 10 day period subsequent to the closing of the IPO.
2
www.nblmidstream.com
Noble Midstream Partners LP Overview
3
Noble Midstream Partners (“NBLX”) is a midstream MLP formed by sponsor, Noble Energy (“NBL”), to support the development of its leading liquids shale plays
NBLX provides a diverse set of midstream services
Crude oil gathering and treating
Natural gas gathering
Produced water and freshwater delivery
NBLX’s development company (“DevCo”) structure provides multiple avenues for organic and drop down growth
NBLX holds significant dedications in two leading U.S. oil shale basins
NBLX 12/2/2016
Unit Price $32.15
Market Cap ($B) $1.0
Yield 4.7%
Partnership Overview Premier E&P Sponsorship
Noble Midstream GP LLC
(NYSE: NBL)
(NYSE: NBLX)
Noble Midstream Services, LLC
DevCos
Public Unitholders
NBLX Unit Information
0-95%Non-Controlling Interests
100%
100%
~45% LP Interest
~55% LP Interest / IDRs
Non-economic GP Interest
5-100% Controlling InterestsDJ Basin
300,000 net acres
Delaware Basin40,000 net acres
www.nblmidstream.com
Diverse Midstream Platform in DJ and Delaware Basins
4
Dedicated Service
DevCo
NBLX Controlling
Interest IDP OperatorDedicated Acres (~)
Crude OilGathering
GasGathering
Prod. WaterGathering
Fresh WaterDelivery
Colorado River 80%Wells Ranch NBL 78k
East Pony NBL 44k
Blanco River 25% Delaware Basin NBL 40k
Laramie River 100% Greeley CrescentSYRG 33k
NBL 32k
Green River 25% Mustang NBL 75k
San Juan River 25% East Pony NBL 44k
Gunnison River 5% Bronco NBL 36k
Structured for long-term growth; drop-down optionality from ROFRs on NBL retained interests
www.nblmidstream.com
Leading global exploration and production company with premier U.S. onshore footprint
U.S. onshore net unrisked resources of ~7 BBoe
7,000 future drilling locations with avg. lateral length of 8,000 ft.
DJ and Delaware combined CAGR of nearly 20% 2016-2020E on base plan
Robust preliminary 2017 outlook
2017E total volumes raised nearly 10% from original expectations to 400-410 MBoe/d
Over 70% of 2017E total capital allocation to U.S. onshore
DJ Basin, Delaware Basin and Eagle Ford Shale volumes up 25% 2H17E from 2H16
Strong financial position and flexibility
Investment grade credit rating at all three rating agencies
>$5B of liquidity
About Our Sponsor (1)
5
Noble Energy’s Core Operating Areas
Investing in low cost / high value horizontal programs in the DJ Basin, Delaware Basin, Eagle Ford Shale and Marcellus Shale
U.S. Onshore Global OffshoreEastern Mediterranean
Delivering natural gas in Israel and positioned to provide regional gas needs via Tamar expansion and Leviathan development
Oil-levered assets in the GOM and West Africa providing meaningful cash flow and production
USO
EMED &
Global Offshore
2016E Capital <$1.5B
*Adjusted for divestitures
USO
EMED &
Global Offshore
2016E MBoe/d
400*
(1) Based on NBL publically available information
www.nblmidstream.com
Investment Thesis
Large-Cap, investment grade E&P sponsor
Strategic midstream vehicle for NBL
Incentivized to support NBLX through significant post-IPO ownership (including the General Partner and Incentive Distribution Rights)
Strong Sponsor Commitment
StrategicallyPositioned Assets
Visible, Long-TermGrowth Opportunities
Long-Term, Fixed-Fee Contracts
Financial Flexibility and Strong Capital Structure
Significant dedications in DJ Basin and Delaware Basin
Aligned with NBL capital allocation priorities
Diverse midstream services portfolio
Targeting long-term 20% distribution per unit growth
Significant drop down inventory
Contractual ROFR on NBL retained midstream assets (1) and future services
15-year, fixed fee contracts
Annual rate escalators
Undrawn $350 MM revolving credit facility
Conservative distribution coverage and leverage ratio
6
1. Excluding Marcellus Shale
www.nblmidstream.com
3Q Highlights and Takeaways
7
Record gathering volumes; oil and gas of 63.0 MBoe/d and produced water of 11.6 MBw/d
Connected 45 equivalent wells to gathering system in the quarter (1)
Record fresh water delivery volumes of 136.0 MBw/d
Nearly 3.0x more per lateral foot than average of prior six quarters
Nearly all of the 42 equivalent wells completed in the quarter were enhanced slickwater completions
Net Income and Net Cash Provided by Operating Activities of $22.4 million and $33.6 million, respectively, on a gross basis
Gross EBITDA (2) of $38.2 million, with $29.6 million attributable to NBLX, up 63% from prior quarter
DCF (2) attributable to NBLX of $27.7 million (2.3x cash coverage), with $3.1 million for 10 day post IPO period
Oil and gas gathered volumes up 7% from 2Q ’16 on $8.0 million of capital
Primarily gathering system extensions in East Pony and Wells Ranch
First quarterly distribution will be declared following the conclusion of the fourth quarter (3)
1. Normalized to 4,500’ lateral length2. EBITDA and DCF are not measures calculated and presented in accordance with accounting principles generally accepted in the U.S. (“GAAP”). Definitions and reconciliations of these non-GAAP measures to GAAP reporting
measures appear in the Appendix.3. Initial distribution will include adjustment for the 10 day period from the closing of the initial public offering to the start of the fourth quarter
Strong 3Q 2016 Financial and Operational Performance Across All Business Segments
www.nblmidstream.com
Gathering Increasing Share of NBL DJ Horizontal Volumes
8
0
25
50
75
100
125
Gross Volumes
(MBoe/d)
NBLX Gathered Volumes NBL Gross Horizontal Volumes
NBLX Gathered Volumes as % of NBL Gross Hz. Production
4Q ’13 4Q ’14 4Q ’15 1Q ’16 2Q ’16 3Q ‘16
20% 30% 49% 51% 52% 53%
NBLX Gathered Volumes and NBL DJ Basin Gross Horizontal Production (1)
1. NBL gross volumes assume 78% NBL net revenue interest
www.nblmidstream.com
3Q 2016 Results and Coverage
Gathering EBITDA
MQD Coverage of 2.3x; MQD Coverage of 1.7x with normalized freshwater use
3Q 2016 NBLX Net EBITDA (1,2)
$17.1
$22.2
$29.6
$0.0
$10.0
$20.0
$30.0
$40.0
Normalized Freshwater Delivery EBITDA (3)
Actual Freshwater Delivery EBITDA
Implied DCF Coverage at MQD
x
1.7x
2.3x
Note: MQD refers to Minimum Quarterly Distribution; coverage based on 3Q 2016 unit count1. Figures are Non-GAAP; see reconciliation to GAAP measures in Appendix2. G&A allocated to gathering and freshwater delivery based on proportionate share of EBITDA; coverage figures reflect full net G&A and net maintenance capital totals3. Assumes 1H 2016 average water volumes / equivalent well and 3Q16 wells completed
9
Ample 3Q ‘16 Coverage in Normalized Freshwater Environment
3Q 2016 Net EBITDA of $29.6 million and DCF of $27.7 million, with implied coverage of 2.3x the MQD
Driven by strong underlying gathering business performance and significant increases in freshwater delivery volumes
Normalizing the 3Q 2016 freshwater delivery volumes to 1H 2016 average volumes / equivalent well results in $22.2 million in Net EBITDA and DCF that covers the MQD by 1.7x
Gathering segment alone covers the MQD by greater than 1.2x
Expect freshwater delivery segment to continue to exceed historical volume levels per equivalent well
www.nblmidstream.com
4Q Guidance
10
Continued volume outperformance driving projected >2.0x Coverage
4Q expected equivalent wells completed in excess of previous guidance
Anticipate 4Q average water per equivalent well of ~250 MBw
150% above 1Q ’15 – 2Q ’16 Average
Majority of 4Q Completions in East Pony
Lower controlling interest in San Juan River DevCo reduces EBITDA as % attributable to the Partnership
3Q 2016Actuals
4Q 2016Current Est.
Gro
ss V
olu
me
s
Oil Gathered (MBbl/d) 44.8 44 – 46
Gas Gathered (BBtu/d) 141.6 139 – 147
Oil and Gas Gathered (MBoe/d) 63.0 62 – 65
Produced Water Gathered (MBw/d) 11.6 10 – 12
Fresh Water Delivered (MBw/d) 136.0 125 – 150
Fin
an
cia
ls (
$M
M)
(1) Gross EBITDA $38.2 $36 – $40
Net EBITDA $29.6 $26 – $29
Distributable Cash Flow* $27.7 $24 – $27
Implied Cash Coverage (at MQD)* 2.3x 2.0x – 2.2x
Total Capital Spending $8.0 $20 – $25
Act
ivit
y Eq. Wells Connected 45 32 – 36
Eq. Wells Completed 42 46 – 55
1. Includes Non-GAAP measures; see reconciliation to GAAP measures in Appendix
Continued Outperformance In All Segments as Key 2017 Growth Projects Progress
* Assumes no additional common units issued during 4Q 2016
www.nblmidstream.com
3.7
2.7
5.6
8.7
10.3 9.5
11.6 10 – 12
0
2
4
6
8
10
12
14
1Q '15 2Q '15 3Q '15 4Q '15 1Q '16 2Q '16 3Q '16 4Q '16 (E)
Gathering Volumes Ahead of Initial Forecast
31.3
41.1
46.3
61.0 62.9
58.9 63.0
62 – 65
0
10
20
30
40
50
60
70
1Q '15 2Q '15 3Q '15 4Q '15 1Q '16 2Q '16 3Q '16 4Q '16 (E)
28
43
70
50
43
28
45
32 – 36
0
10
20
30
40
50
60
70
80
1Q '15 2Q '15 3Q '15 4Q '15 1Q '16 2Q '16 3Q '16 4Q '16 (E)
Average = 44
Oil and Gas Gathered (MBoe/d)
Produced Water Gathered (MBw/d)
Equivalent Wells Connected (1)
1. Normalized to 4,500’ lateral length
11
www.nblmidstream.com
30 34
72 69
44 43 42
46 – 55
0
20
40
60
80
1Q '15 2Q '15 3Q '15 4Q '15 1Q '16 2Q '16 3Q '16 4Q '16 (E)
Recent trending in fresh water per well expected to continue into 4Q as NBL continues to focus on enhanced slickwater completions
S-1 forecast assumed water per equivalent well in line with early 2015 use
Estimated increased completion activity in 4Q
Average = 48
Equivalent Wells Completed (1)
1. Normalized to 4,500’ lateral length
12
4Q daily fresh water volumes relatively flat on increased completion activity with lower per well use
27 30
72 78
58 57
136
125 – 150
0
25
50
75
100
125
150
175
1Q '15 2Q '15 3Q '15 4Q '15 1Q '16 2Q '16 3Q '16 4Q '16 (E)
Fresh Water Delivered (Mbw/d)
82 80 91
104 120 120
294
250
0
50
100
150
200
250
300
350
1Q '15 2Q '15 3Q '15 4Q '15 1Q '16 2Q '16 3Q '16 4Q '16 (E)
~200% Higher than 1Q15 – 2Q16 Average
Fresh Water Delivered (MBw/equivalent well) (1)
1Q ’15 – 2Q ‘16 Average = 100
Fresh Water Delivery Volumes Remain Strong
www.nblmidstream.com
NBL Accelerating Activity on NBLX Dedicated Acreage
13
NBL activity plans well ahead of NBLX assumption through 2020
On NBLX dedicated acreage, NBL Base Case(1) is ~ 2 rigs above prior NBLX estimate in 2017 and 2020
Increase of 49% for 2017 vs. prior expectations
Upside Case(2) has 3 additional rigs in 2020 on NBLX acreage
90% of NBL USO Capital focused on NBLX dedicated acreage (DJ and Delaware) and ROFR acreage (Eagle Ford)
Formal 2017 Budget and Capital Program is expected to be finalized early in 2017
2.3 2.5
4.45.0
1.4
3.0
3.6
5.0
3.7
5.5
8.0
10.0
NBLX Prior
Estimate
NBL Updated
Base Case
NBLX Prior
Estimate
NBL Updated
Base Case
DJ Basin Delaware Basin
2017(E) 2020(E)
(3)
Rig Assumptions (3)
+49%
+25%
1. Base Case Assumes $50 WTI in 20172. Upside Case $60 WTI in 20173. Excludes 3rd party rigs on dedicated acreage
www.nblmidstream.com
DJ Basin: Foundational Asset for NBL USO(1)
14
IDP
3 Stream EUR
(MBoe)
LateralLength
(ft.)Commodity Mix %
(Oil / NGL / Gas)Gross
LocationsEquivalent
Locations (2)
NBLXDedicated
DJ
Ba
sin
Wells Ranch 1,000 9,500 40 / 30 / 30 540 1,140
East Pony 570 7,500 75 / 10 / 15 160 267
Mustang 975 9,500 40 / 30 / 30 910 1,921
Bronco 900 7,500 20 / 30 / 50 640 1,067
Greeley Crescent 900 9,500 30 / 30 / 40 510 1,077
1. Based on NBL publically available information2. Normalized to 4,500’ lateral length
2 BBoe with large, high-quality, contiguous acreage position
Creating differential value with long laterals, midstream advantage and high liquids content
2016 well performance 15% above 2015
2017 2.5 rigs delivers same lateral footage as 9 rigs in 2014
50 wells on average per rig year (based on actual lateral lengths)
Continued expansion of necessary NBLX infrastructure to support growth
www.nblmidstream.com
Delaware Basin: Long-term Growth Engine for NBL
15
IDP3 Stream
EUR (MBoe)Lateral
Length (ft.)Commodity Mix %
(Oil / NGL / Gas)Gross
LocationsEquivalent
Locations (1)
NBLXDedicated
De
law
are
Ba
sin 3rd Bone Spring 920 7,500 70 / 15 / 15 215 358
Wolfcamp A(Lower & Upper)
1,200 7,500 70 / 15 / 15 695 1,158
Wolfcamp B 1,135 7,500 70 / 15 / 15 385 642
Wolfcamp C 900 7,500 70 / 15 / 15 380 633
1 BBoe in the heart of the Delaware
WCA Type Curve Up 20% per lateral foot
NBL Accelerating into Full Development Mode
0.5 rigs in 2016 to 3 rigs in 2017(E)
15 wells on average per rig year (based on actual lateral lengths)
NBLX facility startup 2Q 2017(E)
Significant Improvements from Initial NBL Wells
Stronger well performance with higher proppant loading and shorter stages
Testing higher proppant concentration upside
1. Normalized to 4,500’ lateral length
www.nblmidstream.com
Asset Overview & Projects Update
DJ Basin Updates
Greeley Crescent infrastructure(3Q ’17)
Wells Ranch Produced Water Expansion (1Q ’17)
Mustang infrastructure (YE 2017)
Delaware Basin Updates
Oil and Produced Water Systems & 1st
Central Gathering Facility (2Q ’17)
2nd Central Gathering Facility (4Q ’17)
Delaware Basin
Blanco River
25% Interest
Laramie River
100% Interest
Gunnison River
5% Interest
Green River
25% Interest
San Juan River
25% Interest
EASTPONY
MUSTANG
BRONCO
GREELEYCRESCENT
WELLSRANCH
Colorado River
80% Interest
DJ Basin
Reeves County, TX
Weld County, CO
16
Growth projects remain on schedule for 2017 startups
www.nblmidstream.com
Appendix
17
www.nblmidstream.com
Strong 3Q Results and Exceptional Future Growth Runway
18
Colorado River(Wells Ranch and
East Pony)
Green River(Mustang)
San Juan River(East Pony)
Laramie River(Greeley Crescent)
Blanco River(Delaware Basin)
Gunnison River(Bronco)
NBLX’s development company (“DevCo”) structure provides multiple avenues for organic and drop down growth
• 63.0 MBoe/d oil and gas gathered
• 11.6 MBw/d produced water gathered
• 113.5 MBw/d FW Delivered
• $4.7mm Capex
• 3.3 MBw/d FW Delivered
• $0.4mm Capex
• 19.2 MBw/d FW Delivered
• $0.2mm Capex
• $2.1mm Capex• Service begins 3Q ‘17
• $0.6mm Capex• Service beings 2Q ‘17
$40.8
($2.6)
$38.2
$29.6
($1.9)
$27.7
2.3x
Net Capex
3Q 2016 Cash Balance
RCF Balance Outstanding
RCF Capacity
Total Liquidity
$6.2
$47.5
-
$350.0
$397.5
Gross EBITDA (Pre-G&A)
G&A Expense
Gross EBITDA
Net EBITDA
Maintenance Capex
Distributable Cash Flow
Implied Cash Coverage (at MQD)
$ in million (1)
• Future development• No development
assumed in 5 years
• ~$1.1mm income from equity investment
Anchor Business
White Cliffs
Organic Growth Opportunities
Crude oil and natural gas gathering
Water services (WR)
Crude oil and natural gas gathering
Water services
Water Services Crude oil gathering Water services
Crude oil gathering Produced water
services
Crude oil gathering Water services
Dedicated Service
~3.3% Equity Interest
80% 25% 25% 100% 25% 5%
Drop down flexibility through NBL’s retained DevCo interests and other midstream assets
NBLX Ownership %
Note: MQD refers to Minimum Quarterly Distribution; coverage based on 3Q 2016 unit count1. Figures are Non-GAAP; see reconciliation to GAAP measures in Appendix
www.nblmidstream.com
EBITDA Reconciliation
19
$ in millions4Q '16
Current Est.3Q '16Actual
Net Income $34 - $37 $22.4
Add: Depreciation and Amortization 2 – 3 2.3
Add: Interest Expense, Net of Amount Capitalized 0 2.5
Add: Income Tax Provision 0 11.1
EBITDA $36 - $40 $38.2
Less: EBITDA Attributable to Noncontrolling Interests 10 – 11 8.6
EBITDA Attributable to NBLX $26 - $29 $29.6
Less: Maintenance Capital Expenditures 2 1.9
Distributable Cash Flow of NBLX $24 - $27 $27.7
Non-GAAP Financial Measures
This presentation includes EBITDA and Distributable Cash Flow, both of which are non-GAAP measures which may be used periodically by management when discussing our financial results with investors and analysts. The following presents a reconciliation of each of these non-GAAP financial measures to their nearest comparable GAAP measure.
We define EBITDA as net income before income taxes, net interest expense, depreciation and amortization. EBITDA is used as a supplemental financial measure by management and by external users of our financial statements, such as investors, industry analysts, lenders and ratings agencies, to assess:• our operating performance as compared to those of other companies in the
midstream energy industry, without regard to financing methods, historical cost basis or capital structure;
• the ability of our assets to generate sufficient cash flow to make distributions to our partners;
• our ability to incur and service debt and fund capital expenditures; and• the viability of acquisitions and other capital expenditure projects and the returns on
investment of various investment opportunities.
We define Distributable Cash Flow as EBITDA less estimated maintenance capital expenditures. Distributable Cash Flow is used by management to evaluate our overall performance. Our partnership agreement requires us to distribute all available cash on a quarterly basis, and Distributable Cash Flow is one of the factors used by the board of directors of our general partner (the “Board”) to help determine the amount of available cash that is available to our unitholders for a given period.
We believe that the presentation of EBITDA and Distributable Cash Flow provide information useful to investors in assessing our financial condition and results of operations. The GAAP measure most directly comparable to EBITDA and Distributable Cash Flow is net income. EBITDA and Distributable Cash Flow should not be considered alternatives to net income, net cash provided by (used in) operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP.
EBITDA and Distributable Cash Flow exclude some, but not all, items that affect net income, and these measures may vary from those of other companies. As a result, EBITDA and Distributable Cash Flow as presented herein may not be comparable to similarly titled measures of other companies.
EBITDA and Distributable Cash Flow should not be considered as alternatives to GAAP measures, such as net income, operating income, cash flow from operating activities, or any other GAAP measure of financial performance.
www.nblmidstream.com
IDP/DevCo/Dedication Table
NBLX Asset Overview
DevCo Areas Served NBLX Dedicated Service Current Status of Asset
Dedicated Net
Acreage
Existing / Planned System
Capacity
NBLX
Ownership
Gross Capital
Spent to Date
Gross S-1 Forecast
Period / 5-yr Capital
Wells Ranch IDP
• Crude Oil Gathering
• Natural Gas Gathering
• Water Services
• Operational 79,000(4)
• Oil: 50 MBbl/d
• Gas: 165 MMcf/d
• Saltwater: 30 MBw/d
East Pony IDP • Crude Oil Gathering • Operational 44,000 • 40 MBbl/d
All Noble DJ Basin
Acreage• Crude Oil Treating • Operational N/A
(1) • ~4,600 MBbl per year
Green River Mustang IDP(2)
• Crude Oil Gathering
• Natural Gas Gathering
• Water Services
• Under Construction
• Under Construction
• Partially Operational
75,000
• Oil: 50 MBbl/d
• Gas: 275 MMcf/d
• Saltwater: 20 MBw/d
• 25% $16mm $29mm / $153mm
Blanco River Delaware Basin• Crude Oil Gathering
• Produced Water Services• Under Construction 40,000
(5) • Oil: 60 MBbl/d
• Saltwater: 75 MBw/d• 25% $0mm $31mm / $106mm
Laramie River Greeley Crescent
IDP(3)
• Crude Oil Gathering
• Water Services• Under Construction 65,000
(3) • Oil: 60 MBbl/d
• Saltwater: 20 MBw/d• 100% $0mm $48mm / $100mm
San Juan River East Pony IDP(6) • Water Services
• Freshwater Operational
• Produced Water Planned44,000 • ~10 mi. of FW delivery pipe • 25% $15mm $10mm / $22mm
Gunnison River Bronco IDP(2) • Crude Oil Gathering
• Water Services• Future Development 36,000
(4) • TBD • 5% $0mm $0mm / $0mm
Total ~340,000 $292mm $165mm / $536mm
$48mm / $156mmColorado River • 80% $249mm
20
1. Crude oil treating fee is not acreage based. NBLX receives monthly fee for each Noble operated well producing in paying quantities in Weld County not connected to NBLX crude oil gathering systems during each month, which was 4,480 wells as of June 30, 2016.
2. NBLX currently has limited midstream infrastructure assets in the Mustang IDP and no midstream infrastructure assets in the Bronco IDP. The assets in these IDP areas currently consist primarily of dedications to us from Noble for future production in these IDP areas. In the Mustang IDP, NBLX also owns one fresh water storage pond and certain rights-of-way and surface rights. NBLX anticipates the first centralized facility servicing the Mustang IDP and related gathering infrastructure to be in service by the end of 2017.
3. NBLX assets in Greeley Crescent IDP currently consist of dedications from Noble and an unaffiliated third party. On May 3, 2016, Noble announced a sale of approximately 33,000 net acres to such third party. All acreage in the Greeley Crescent IDP remains subject to the dedication in favor of NBLX for crude oil gathering, produced water services and fresh water services.
4. On June 15, 2016, Noble entered into an acreage swap pursuant to which Noble will increase its holdings in the Wells Ranch IDP by approximately 11,700 net acres in exchange for reducing its interest in the Bronco IDP by approximately 13,500 net acres. Upon completion, all of the outbound acreage in the Bronco IDP will be released from the prior dedications to NBLX, and the inbound acreage in the Wells Ranch IDP will become dedicated to NBLX. After giving effect to this acreage swap, the dedication in the Wells Ranch IDP is approximately 79,000 net acres and the dedication in the Bronco IDP is approximately 36,000 net acres.
5. Includes acreage currently dedicated to other providers for produced water services and committed to NBLX upon expiration of existing dedications. The majority of these dedications will expire or are expected to be terminated by Noble by the time NBLX’s planned infrastructure is operational in 2017.
6. NBLX currently provides produced water services through third party transportation providers and saltwater disposal facilities, and may provide additional produced water services in the future.
www.nblmidstream.com
NBLX Structure
Public
Unitholders (LP)
Noble Midstream
GP LLC
Noble Midstream
Partners LP
NYSE: NBLX
Noble Energy, Inc.
NYSE: NBL
100%
Noneconomic general partner interest
Noble Midstream
Services, LLC
[TBD]% limited partner interest
100%
White Cliffs
Pipeline, L.L.C.
3.33% nonoperatingmembership interest
Colorado
River
Green
River
Gunnison
River
Laramie
River
San Juan
River
Wells Ranch IDP
Crude Oil Gathering Natural Gas Gathering
Water Services
East Pony IDP
Crude Oil GatheringOther DJ Basin Facilities
Crude Oil Treating Facilities
Mustang IDP Future
Development Crude Oil Gathering
Natural Gas Gathering
Water Services
Bronco IDP Future
Development Crude Oil Gathering
Water Services
Greeley Crescent IDP
Crude Oil Gathering Water Services
East Pony IDP
Water Services
80% controlling
interest
25% controlling
interest
5% controlling
interest100% controlling
interest
25% controlling
interest
[TBD]% limited
partner interest
20% non-
controlling interest
75% non-
controlling interest
95% non-
controlling interest75% non-
controlling interest
Blanco
River
25% controlling
interest
75% non-
controlling interest
Delaware Basin
Crude Oil Gathering Produced Water Services
ROFR Assets:• East Pony Gas Gathering• East Pony Gas Processing• Eagle Ford Shale Midstream• Additional DJ Acreage• Additional Delaware Basin
Services
21
54.8% limited partner interest
45.2% limitedpartner interest
www.nblmidstream.com
John BookoutChief Financial Officer
www.nblmidstream.com
1001 Noble Energy WayHouston, TX 77070
Contact Information
Chris HickmanVP, Investor Relations