2015 Analyst & Investor Day

90 Pages·2015·5.69 MB·English

by  Shea Snyder

2015 Analyst &
Investor Day

March 30, 2015
Strong. Innovative. Growing.
Forward-Looking Statements
This presentation contains forward-looking statements within the meaning of the federal securities laws. Forward-looking
statements are not guarantees of performance. They involve risks, uncertainties and assumptions. The future results of
EnLink Midstream, LLC, EnLink Midstream Partners, LP and their respective affiliates (collectively known as “EnLink
Midstream”) may differ materially from those expressed in the forward-looking statements contained throughout this
presentation and in documents filed with the Securities and Exchange Commission (“SEC”). Many of the factors that will
determine these results are beyond EnLink Midstream’s ability to control or predict. These statements are necessarily
based upon various assumptions involving judgments with respect to the future, including, among others, drilling levels;
the dependence on Devon Energy Corporation for a substantial portion of the natural gas that EnLink Midstream gathers,
processes and transports; EnLink Midstream’s lack of asset diversification; EnLink Midstream’s vulnerability to having a
significant portion of its operations concentrated in the Barnett Shale; the amount of hydrocarbons transported in EnLink
Midstream’s gathering and transmission lines and the level of its processing and fractionation operations; fluctuations in
oil, natural gas and natural gas liquids (NGL) prices; construction risks in its major development projects; its ability to
consummate future acquisitions, successfully integrate any acquired businesses, realize any cost savings and other
synergies from any acquisition; changes in the availability and cost of capital; competitive conditions in EnLink
Midstream’s industry and their impact on its ability to connect hydrocarbon supplies to its assets; operating hazards,
natural disasters, weather-related delays, casualty losses and other matters beyond its control; a failure in its computing
systems or a cyber-attack on its systems; and the effects of existing and future laws and governmental regulations,
including environmental and climate change requirements and other uncertainties and other factors discussed in EnLink
Midstream’s Annual Reports on Form 10-K for the year ended December 31, 2014, and in EnLink Midstream’s other
filings with the SEC. You are cautioned not to put undue reliance on any forward-looking statement. EnLink Midstream has
no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future
events or otherwise.
2
Non-GAAP Financial Information
This presentation contains non-generally accepted accounting principle financial measures that EnLink Midstream refers
to as adjusted EBITDA, gross operating margin, segment cash flows, adjusted EBITDA of EMH, growth capital
expenditures and maintenance capital expenditures. Adjusted EBITDA is defined as net income plus interest expense,
provision for income taxes, depreciation and amortization expense, stock-based compensation, (gain) loss on noncash
derivatives, transaction costs, distribution of equity investment and non-controlling interest; and income (loss) on equity
investment. Gross operating margin is defined as revenue less the cost of purchased gas, NGLs, condensate and crude
oil. Segment cash flows is defined as revenue less the cost of purchased gas, NGLs, condensate, crude oil and operating
and maintenance expenditures. Adjusted EBITDA of EMH is defined as earnings plus depreciation, provisions for income
taxes and distribution of equity investment less income on equity investment. Growth capital expenditures are defined as
all construction-related direct labor and material costs, as well as indirect construction costs including general engineering
costs and the costs of funds used in construction. The amounts included in the calculation of these measures are
computed in accordance with generally accepted accounting principles (GAAP) with the exception of maintenance capital
expenditures. Maintenance capital expenditures are capital expenditures made to replace partially or fully depreciated
assets in order to maintain the existing operating capacity of the assets and to extend their useful lives.
EnLink Midstream believes these measures are useful to investors because they may provide users of this financial
information with meaningful comparisons between current results and prior-reported results and a meaningful measure of
EnLink Midstream’s cash flow after it has satisfied the capital and related requirements of its operations.
Adjusted EBITDA, segment cash flows, gross operating margin, adjusted EBITDA of EMH, growth capital expenditures
and maintenance capital expenditures, as defined above, are not measures of financial performance or liquidity under
GAAP. They should not be considered in isolation or as an indicator of EnLink Midstream’s performance. Furthermore,
they should not be seen as measures of liquidity or a substitute for metrics prepared in accordance with GAAP.
Reconciliations of these measures to their most directly comparable GAAP measures are included in the Appendix to this
presentation.

3
Investor Notice
The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible
reserves that meet the SEC's definitions for such terms, and price and cost sensitivities for such reserves, and prohibits
disclosure of resources that do not constitute such reserves. This presentation may contain certain terms, such as
resource potential and exploration target size and risked resource. These estimates are by their nature more speculative
than estimates of proved, probable and possible reserves and accordingly are subject to substantially greater risk of being
actually realized. The SEC guidelines strictly prohibit us from including these estimates in filings with the SEC. Investors
are urged to consider closely the disclosure in Devon Energy Corporation’s Form 10-K, available at Devon Energy
Corporation, Attn. Investor Relations, 333 West Sheridan, Oklahoma City, OK 73102-5015. You can also obtain this form
from the SEC by calling 1-800-SEC-0330 or from the SEC’s website at www.sec.gov.
4
Agenda & Speakers
EnLink Midstream
• Barry Davis President & CEO
Vision & Strategy
• Michael Garberding EVP & CFO
Devon Energy
• David Hager Devon Energy Corporation, COO
Sponsorship
Presenter & Panelist
• Steve Hoppe EVP, President of Gas Business Unit
Natural Gas
Panelists
Businesses
• Mike Burdett SVP of Commercial
Vision & Panel • Andy Deck SVP of Permian Basin
• Stan Golemon SVP of Engineering & Operations Services
• Ben Lamb SVP of Finance & Corporate Development
Presenter & Panelist
Liquids • Mac Hummel EVP & President of Liquids Business Unit
Businesses Panelists
• Ben Lamb SVP of Finance & Corporate Development
Strategic Vision
• Shannon Flowers VP of Crude
& Panel
• John Pellegrin VP of Commercial
• Chris Tennant VP of NGL
Financial Overview • Michael Garberding EVP & CFO
5
The Leadership
Experienced Executive Management Team
with a Proven Track Record
EnLink Midstream’s executive management team is comprised of former Crosstex and Devon
senior management and other experienced midstream leaders
Management Team Experience
Barry Davis is President and Chief Executive Officer of EnLink Midstream. Mr. Davis led the founding
Barry Davis of Crosstex Energy in 1996 prior to the initial public offerings of Crosstex Energy, L.P. in 2002 and
President & CEO Crosstex Energy, Inc. in 2004. Under his leadership, Crosstex Energy evolved into a significant
service provider in the energy industry’s midstream business sector.
Michael Garberding is Executive Vice President and Chief Financial Officer of EnLink Midstream.
Previously, Mr. Garberding held various positions at Crosstex Energy, including Executive Vice
Michael Garberding President and Chief Financial Officer, and Senior Vice President of Business Development and
EVP & CFO Finance. Prior to joining Crosstex in 2008, Mr. Garberding was assistant treasurer at TXU Corp. where
he focused on structured transactions such as project financing for coal plant development and the
sale of TXU Gas Company.
Steve Hoppe is Executive Vice President and President of the Gathering, Processing and
Steve Hoppe
Transportation Business of EnLink Midstream. Mr. Hoppe previously served as Vice President of
EVP & President of
Midstream Operations for Devon, which he joined in 2007. Prior to joining Devon, Mr. Hoppe spent
Gas Business Unit
eight years at Thunder Creek Gas Services, most recently serving as president.
Mac Hummel is Executive Vice President and President of the Natural Gas Liquids and Crude
McMillan (Mac) Hummel
Business of EnLink Midstream. Mr. Hummel previously served as Vice President of Commodity
EVP & President of
Services at Williams Companies Inc. since 2013, and prior to that he served as Vice President, NGLs
Liquids Business Unit
& Olefins at Williams from 2010 to 2012. Mr. Hummel worked at Williams for 29 years.
6
Built for the Road Ahead:
Executing on Our Growth
Strategy
Barry E. Davis,
President and Chief Executive Officer
7
Strong, Diversified Investment in the MLP Space
Designed for Safety, Stability & Growth
Top tier midstream energy service for our customers
 Mastio Service Award winner in 2014
Stability of cash flows
 ~95% fee-based contracts
 ~50% of gross operating margin from long-term Devon contracts
Leverage Devon Energy sponsorship for growth
 Expect significant growth from dropdowns
 Serve Devon E&P portfolio in its growth areas
Strong organic growth
 South Louisiana, West Texas and Ohio River Valley (ORV) expansion projects
Top-tier balance sheet
 Investment grade credit rating at ENLK since inception
 Strong liquidity with a $1.5 billion credit facility

8
Note: Adjusted EBITDA and gross operating margin are non-GAAP financial measures and are explained on page 3.
The Vehicle for Sustainable Growth
Diverse, Fee-Based Cash Flows
 Devon is EnLink Midstream’s largest customer
(>50% of consolidated 2015E adjusted EBITDA*)
 EnLink Midstream’s growth projects focused on crude/NGL services and rich gas processing
 Strong emphasis on fee-based contracts

2015E EnLink Midstream Consolidated *

Segment Cash Flow Gross Operating Margin Gross Operating Margin
By Region ** By Customer ** By Contract Type **
5%
Commodity

Oklahoma Sensitive
17%
Ohio
52%
6% Texas 48%
Devon
51% Other
Louisiana
26%
95%
Fee-Based
* Based on 2015 Guidance information.
9
** Gross operating margin, segment cash flow and adjusted EBITDA percentage estimates are provided for illustrative purposes.
Note: Adjusted EBITDA, segment cash flow and gross operating margin are non-GAAP financial measures and are explained on page 3.
The Vehicle for Sustainable Growth
Stable Cash Flows From High Quality Contracts
~80% of EnLink’s segment cash flows are supported by long-term, fee-based contracts with
either firm transport agreements or minimum volume commitments.
Segment
Cash Flow
100%
~80%
80%
Top Customers
60% Include
40%
20%
0%
Texas Oklahoma Louisiana Ohio River
Valley
10
Note: Segment cash flow is a Non-GAAP metric and is explained in greater detail on page 3. See Appendix for a reconciliation to Operating Income.