summit midstream bakken & niobrara assets - platts · meadowlark is currently constructing oil...
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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 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
Privileged & Confidential
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
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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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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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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