First Quarter 2019 Earnings May 3, 2019 www.nblmidstream.com - PowerPoint PPT Presentation

First Quarter 2019 Earnings May 3, 2019 www.nblmidstream.com

Forward Looking Statements This presentation contains certain “forward -looking statements” within the meaning of federal securities law. Words such as “anticipates”, “believes”, “expects”, “intends”, “will”, “should”, “may”, “estimates”, and similar expressions may be used to identify forward-looking statements. Forward-looking statements are not statements of historical fact and reflect Noble Midstream Partners LP’s (Noble Midstream or the Partnership) current views about future events. No assurances can be given that the forward-looking statements contained in this presentation will occur as projected and actual results may differ materially from those projected. Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties that could cause actual results to differ materially from those projected. These risks include, without limitation, our customers’ ability to meet their drilling and development plans, changes in general economic conditions, competitive conditions in the Partnership’s industry, actions taken by third-party operators, gatherers, processors and transporters, the demand for crude oil and natural gas gathering and processing services, the Partnership’s ability to successfully implement its business plan, the Partnership’s ability to complete internal growth projects on time and on budget, the ability of third parties to complete construction of pipelines in which the Partnership holds equity interests on time and on budget, the price 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 alternative and competing fuels, and other risks inherent in the Partnership’s business, including those described under “Risk Factors” and “Forward -Looking Statements” in the Partnership's most recent Annual Report on Form 10-K and in other reports on we file with the Securities and Exchange Commission (SEC). These reports are also available from the Partnership’s office or website, www.nblmidstream.com. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Noble Midstream does not assume any obligation to update forward-looking statements should circumstances, management’s estimates, or opinions change. This presentation also contains certain non-GAAP measures of financial performance that management believes are good tools for internal use and the investment community in evaluating Noble Midstream’s overall financial performance. Please see slides 23 and 24 for definitions and reconciliations of the non-GAAP financial measures used in this presentation to the most directly comparable GAAP financial measures. www.nblmidstream.com 2

1Q19 and Recent Highlights ▪ In-line or Exceeded Guidance Across All Categories; Capturing Meaningful Capital Efficiencies in Base Business ▪ Net Adjusted EBITDA ¹ , ² in upper half of guidance ▪ Net Capital Expenditures below guidance and down 72% compared to 1Q18 ▪ Robust Gathering Segment Contribution ▪ Record Boe/d gathering and sales volumes; up 73% from 1Q18 ▪ Continued Peer-leading Distribution Growth/Coverage and Financial Strength ▪ 20% DPU increase over 1Q18, 1.9x Distribution Coverage Ratio ¹ , 2.9x Annualized Leverage Ratio ³ ▪ Closed Transformational Permian Equity Investments ▪ Exercised and closed equity investment options in the EPIC Crude Pipeline (30%) and EPIC Y-Grade Pipeline (15%) ▪ Secured $200 MM preferred equity commitment for EPIC Crude Pipeline ▪ Closed 50/50 joint venture, Delaware Crossing, for crude oil pipeline and gathering system from southern Delaware to Wink ▪ Projects accelerate shift to Permian, further bolster growth and add stable, contracted free cash flows ▪ Anticipate 50% net Adjusted EBITDA ¹ , ² contribution from the Permian exiting 2020 1. Figures are Non-GAAP; see definition and reconciliation in Appendix hereto 2. Net Adjusted EBITDA is Adjusted EBITDA attributable to the Partnership 3. Figures are Non-GAAP; Annualized leverage defined as 1Q Debt / (1Q EBITDA * 4) or $730 million /($63 million *4) www.nblmidstream.com 3

First Quarter 2019 Actuals vs. Guidance Actuals 1Q Guidance 1Q v 4Q 1Q v 1Q 1Q18 ¹ 4Q18 1Q19 ✓ Oil Gathered (MBbl/d) ² 134 233 228 225 - 235 -2% 70% Gross Volumes ✓ Gas Gathered (MMcf/d) 191 307 353 335 - 350 15% 85% ✓ MBoe/d ² 166 284 287 280 - 293 1% 73% ✓ PW Gathered (MBw/d) 47 148 142 135 - 145 -4% 203% ✓ FW Delivered (MBw/d) 168 180 220 190 - 210 22% 31% Net Income ($MM) 39 57 63 60 - 67 12% 62% ✓ Gross EBITDA ($MM) ³ 59 81 91 85 - 93 11% 55% ✓ Financials ($MM) Net Adjusted EBITDA ✓ ($MM) 3,4 55 59 63 60 - 64 7% 14% ✓ DCF ($MM) ³ 48 47 54 48 - 52 15% 13% ✓ Distribution Coverage Ratio 2.3x 1.8x 1.9x 1.7x - 1.9x ✓ Gross Capex ($MM) ⁵ 249 66 75 115 - 135 14% -70% ✓ Net Capex ($MM) ⁵ 128 35 36 60 - 75 3% -72% 1. Black Diamond Gathering contribution included for period following January 31, 2018 close 2. Includes crude oil sales volumes 3. Figures are Non-GAAP, see definition and reconciliation provided in appendix hereto 4. “Net Adjusted EBITDA” is Adjusted EBITDA attributable to the partnership 5. Excludes additions to investments www.nblmidstream.com 4

5 Robust Gathering Segment Fundamentals in Delaware Basin Delaware Basin Oil, Gas and Water Gathering and Sales Throughput ¹ (MBoew/d) 182 - 211 200 180 166 155 160 135 140 120 100 87 80 45 60 39 40 12 20 +92% +55% +23% -7% +210% +18% 0 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2019E 1Q Delaware Basin Highlights • Oil, Gas and Produced Water Gathering Throughput Lower Versus 4Q18 as Anticipated; Increased >3x Year-over-Year • Connected 9 wells for infield oil, gas, & water gathering for NBL • Throughput growth anticipated to resume in 2Q19 • Nearly 100 Cumulative Wells Connected Across Five Central Gathering Facilities Since 3Q17 • Average CGF availability of 99% during 1Q19 • NBL Activity Timed to Match Row Development with Additional Takeaway Capacity in 2H19 • Gathering ~95% of NBL Permian production in 2019, compared to ~70% in 2018 • Gained New Third- party Gathering Customer for Oil, Gas, and Produced Water with NBL’s 1Q19 Southwest Delaware Acreage Monetization • Over ~30k gross acres dedicated from multiple third-parties for oil, gas and produced water infield gathering • 10 to 15 third-party wells anticipated in 2019 1. Advantage excluded from total throughput due to accounting treatment as investment income www.nblmidstream.com 5

6 Strong Customer Activity in DJ Basin Driving Growth DJ Basin Oil, Gas and Water Gathering and Sales Throughput (MBoew/d) 277-304 300 273 280 266 260 240 212 220 191 200 180 167 160 132 140 110 120 +3% +26% +15% +26% +11% +21% 100 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2019E 1Q DJ Basin Highlights • Oil, Gas and Produced Water Gathering and Sales Throughput Increased 3% Over 4Q18; Up >1.5x Year-over-Year • Growth driven by Green River and Laramie River DevCos • No new well connections at Wells Ranch or East Pony in Colorado River during 1Q19 • Record Contribution from Mustang Oil, Gas and Produced Water Gathering in Green River DevCo • Oil and gas throughput averaged 35 MBoe/d, up ~10 MBoe/d vs 4Q18 • Diversified gas outlets with delivery to 3 processing providers • Continued Basin-wide Processing Additions in 2019 a Catalyst for Volume Growth Across the Basin in the Future www.nblmidstream.com 6

Maintain Strong Financial Framework While Executing on Opportunities ▪ Financial Focus on Maintaining Healthy Liquidity and Prudent Leverage Through Construction Period for EPIC and Delaware Crossing Investments Ended 1Q19 with liquidity of $580 MM ▪ $570 MM remaining revolver capacity plus $350 MM accordion feature ($920 MM total) ▪ ▪ Secured $200 MM Preferred Equity Commitment for EPIC Crude Pipeline Favorable terms, including annual dividend rate of 6.5% and ability to accrue unpaid ▪ dividends during first two years following closing $100 MM funded in 1Q19, remaining tranche available for one year period following ▪ closing ▪ Temporary Increase in Annualized Leverage ¹ to ~4x-4.25x at Year-end 2019 Clear path to ~3x long-term as equity investments contribute meaningfully to the ▪ Partnership Conservative Distribution Policy Prudent Use of Balance Sheet Investment Discipline Investment Discipline Distribution Coverage Ratio 1 Corporate ROACE 1,3 Year-end Leverage 1 2.5x 5x 2.0x 18% 4-4.25x 16% 2.0x 13%-16% 15% 4x 15% 1.5x-1.6x ~3x 1.5x >1.3x 12% 3x 2.3x 9% 1.0x 2x 6% 1x .5x 3% x 0% .0x 2018 YE2019E Long-Term 2018 2019E² Long-Term 2018 2019E Long-Term 1. Figures are Non-GAAP; see definition and reconciliation in Appendix hereto 2. Excludes impact from EPIC Crude and EPIC Y-Grade pipeline 3. Return on average capital employed: earnings before interest and taxes divided by (average total assets – average current liabilities); see definition provided in appendix www.nblmidstream.com 7