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 • Andy Deck Vision & Panel 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
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