Summit Midstream Bakken & Niobrara Assets - · PDF fileSummit Midstream Bakken & Niobrara...

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Privileged & Confidential April 16, 2013 Jesse G. Wood Sr. Vice President - Rockies Engineering Construction and Operations Summit Midstream Bakken & Niobrara Assets Platts 7 th Annual Rockies Oil & Gas Conference Presentation

Transcript of Summit Midstream Bakken & Niobrara Assets - · PDF fileSummit Midstream Bakken & Niobrara...

Privileged & Confidential

April 16, 2013 Jesse G. Wood Sr. Vice President - Rockies Engineering Construction and Operations

Summit Midstream Bakken & Niobrara Assets Platts 7th Annual Rockies Oil & Gas Conference Presentation

Overview of Summit Midstream & Sponsors

Founded in 2009 as the midstream energy platform affiliate of Energy Capital Partners (“ECP”); headquartered in Dallas with offices in Houston, Denver and Atlanta

Targeting investment opportunities that include the acquisition and development of strategically located midstream assets (excluding gas storage assets) with limited direct commodity exposure in the core regions of unconventional shale basins

Management team with extensive energy experience in engineering, development, construction, operations, M&A and finance

In September 2009, Summit acquired DFW Midstream, a natural gas gathering system located in the core of the Barnett Shale

Acquired Grand River Gathering from Encana Oil & Gas (USA) (“Encana”) Piceance Assets in October 2011

Acquired ETC Canyon located in CO and UT from Energy Transfer Partners, L.P. in October 2012

On September 27, 2012, Summit priced its Initial Public Offering, and its units began selling publicly on the NYSE on September 28th under the ticker symbol “SMLP”

On February 15, 2013, Summit closed its acquisition of Bear Tracker Energy, LLC for $513 million and renamed the entity Meadowlark Midstream Company, LLC

Private equity firm founded in 2005 with $2.25 billion committed to Fund I and $4.34 billion committed to Fund II

Focused on power generation, transmission and midstream energy infrastructure investment opportunities in North America

ECP’s investments include a diverse array of fourteen portfolio companies spanning the energy infrastructure sector

Minority equity investment in Summit completed in August 2011

Hold approximately $20 billion in energy investments worldwide

Have invested in more than 40,000 miles of pipeline, as well as refineries and other downstream oil and gas segments

Summit’s Focus on Energy Value Chain

GATHERING, TREATING, AND FIELD PROCESSING

GAS PROCESSING PLANTS

NGL EXTRACTION AND FRACTIONATION

TRANSMISSION AND STORAGE

OIL

GAS

DOWNSTREAM

NGL EXTRACTION AND FRACTIONATION

TRANSMISSION AND STORAGE

MIDSTREAM UPSTREAM

Summit is focused on owning, operating and developing midstream infrastructure assets that are strategically located, generate fee-based, MLP qualifying income and have limited direct commodity exposure

Specific midstream assets we target include:

Gathering Pipelines (natural gas and crude oil)

Transmission / Transportation Pipelines (natural gas, crude oil, refined products and NGLs)

Fee-based Processing, Treating and Fractionation Plants (natural gas and NGLs)

Liquids Terminals (crude oil, refined products, NGLs, chemicals, etc.)

Natural Gas Compression

Summit Map of Operations

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Bear Tracker Acquisition – February 15, 2013 Meadowlark Midstream Company, LLC

Polar Oil and Water System (Bakken): Oil and water gathering system in Williams County, North Dakota

Divide Oil Gathering System (Bakken):

Divide Oil gathering system in Divide County, North Dakota

Niobrara Gas Gathering and Processing System (Niobrara): Associated gas gathering & processing system in Northern Weld County, Colorado

Over $120 MM of projects to be completed in 2013

Mountrail Gas Gathering (Bakken): Associated gas gathering, compression, and treating systems in Mountrail and Burke counties,

North Dakota

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Meadowlark Midstream Company, LLC Assets Summary

Currently in Operation

Under Construction

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Meadowlark Mountrail Gas Gathering

Mountrail Asset Description

Mountrail gas gathering system in Mountrail and Burke counties, North Dakota

195 miles of polyethylene gas gathering pipeline and 76 miles of high-pressure steel pipeline for gathering associated gas from Bakken and Three Forks Shale drilling with delivery to Aux Sable Palermo Plant

Eleven compressors at six compressor stations totaling 6,600 HP

System expansion initiatives currently underway

― Two new compressor stations (Phoenix and Rachel) to support drilling activity

― Expanding North station in May and July 2013

System Map

Meadowlark Mountrail Gas Gathering Overview

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Mirage

North

Sidonia

West

Ross

Phoenix (NEW)

Rachel (NEW) Palermo Gas Conditioning Plant

East

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Meadowlark Crude & Water Gathering

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Map of Meadowlark’s North Dakota Assets (Divide, Mountrail, Polar) Divide Crude Gathering: Construction Begins April 2013

Polar Oil and Water : Under Construction

Mountrail Gas Gathering: In Operation

Meadowlark is currently constructing oil and water gathering systems in Williams County, North Dakota ― Initial build-out will connect 38 well pads; some well

pads will have up to 8 wells per pad ― Crude system will include ~50 miles of gathering

pipeline connecting at Epping, North Dakota ― Water gathering system will include ~35 miles

connecting to producer’s operated water injection wells

Agreement in-place with Rangeland Energy to deliver crude to the COLT Hub Terminal

System designed for 50,000 BBL/Day Oil Gathering

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Polar Oil and Water Gathering System - Asset Overview System Overview

Area of Dedication

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Polar and Divide Oil Gathering Systems – Takeaway Solution Polar system has an existing interconnect agreement with Rangeland Energy’s COLT terminal

― COLT terminal provides 190,000 Bbls/d of combined rail and pipeline takeaway capacity, including: Enbridge to Chicago, Patoka, and Cushing; Tesoro to Mandan; and Hiland to Baker, Guernsey, Denver, and Wood River

― Creates attractive pricing opportunities for producers tied to Meadowlark’s gathering facilities

Takeaway Solution

Meadowlark is on schedule to begin construction on an oil gathering system in Divide County, North Dakota in April 2013 ― Initial build-out will connect 32 well pads ― Crude system includes ~45 miles of steel gathering lines ― 36-mile high pressure steel line to Epping, North Dakota

using same interconnect facilities at Epping as Meadowlark’s Polar system

Capacity will be approximately 34,000 Bbls/d using an eight-inch trunk line ― Additional capacity expansion is possible through pump

additions and line looping ― Truck Oil Unloading System and tanks will be built near

trunk line in Divide County to reduce truck hauling distance for other producers

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Divide Oil Gathering System - Asset Overview System Overview

Area of Dedication

Meadowlark Divide Oil Gathering

36 mile 8 Inch Oil Trunk Line To Epping Colt Oil Terminal

Trucked Oil Unloading Terminal

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Meadowlark Niobrara Gas Gathering and Processing

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Map of Meadowlark Niobrara Gas Gathering System (Under Construction)

Niobrara Plant and Compressor Station Under Construction Gathering System Under Construction Startup – June 2013

Area of Dedication

Angus Compressor Station

Meadowlark Niobrara Plant

Meadowlark Midstream Company also consists of assets located in the DJ Basin of Weld County, CO where producers are drilling for oil and gas in the Niobrara Shale

Meadowlark is currently constructing a gathering and processing facility to handle associated gas

Initial facilities will include a 125-mile gathering system and 20 MMcf/d cryogenic processing plant

The system is currently under construction and estimated to be in-service by July 2013

Meadowlark Niobrara Gathering and Processing System

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Niobrara Gas Gathering System – Takeaway Solution The Niobrara gathering system and cryogenic plant are situated to capture new production in Northern Weld

County in Colorado Meadowlark has executed an agreement with Colorado Interstate Gas Pipeline (“CIG”) and is finalizing an NGL

interconnect agreement with Overland Pass Pipeline, which flows into Conway, KS ― Provides access to takeaway capacity for residue and natural gas liquids being gathered and processed

through the Meadowlark systems ― Agreements result in more favorable economics to producers connected to the Meadowlark systems,

creating demand for the Company’s gathering and processing services

Takeaway Solution

Meadowlark Niobrara Plant

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Thanks – I will be around to answer any questions.