Fourth Quarter 2016 and 2017 Update Earnings Call February 14, 2017 - PowerPoint PPT Presentation

Fourth Quarter 2016 and 2017 Update Earnings Call – February 14, 2017

Forward-Looking Statements Under the Private Securities Litigation Act of 1995 This document may contain or incorporate by reference forward-looking statements as defined under the federal securities laws regarding DCP Midstream, LP (the “Partnership” or “DCP”), including projections, estimates, forecasts, plans and objectives. Although management believes that expectations reflected in such forward- looking statements are reasonable, no assurance can be given that such expectations will prove to be correct. In addition, these statements are subject to certain risks, uncertainties and other assumptions that are difficult to predict and may be beyond our control. If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, the Partnership’s actual results may vary materially from what management anticipated, estimated, projected or expected. The key risk factors that may have a direct bearing on the Partnership’s results of operations and financial condition are highlighted in the earnings release to which this presentation relates and are described in detail in the Partnership’s periodic reports most recently filed with the Securities and Exchange Commission, including its most recent Form 10-Q and 10-K. Investors are encouraged to consider closely the disclosures and risk factors contained in the Partnership’s annual and quarterly reports filed from time to time with the Securities and Exchange Commission. The Partnership undertakes no obligation to publicly update or revise any forward- looking statements, whether as a result of new information, future events or otherwise. Information contained in this document speaks only as of the date hereof, is unaudited, and is subject to change. Regulation G This document includes certain non-GAAP financial measures as defined under SEC Regulation G, such as distributable cash flow, adjusted EBITDA, adjusted segment EBITDA, forecasted distributable cash flow and forecasted adjusted EBITDA. A reconciliation of these measures to the most directly comparable GAAP measures is included in the Appendix to this presentation. 2

Legacy DPM Standalone Q4 and YTD 2016 Results 3

2016 Highlights… 2017 Path Forward Legacy DPM Standalone 2016 Highlights Exceeded Exceeded Executed Held distribution Generated $515-525 million $575-585 million DCP 2020 strategy, at $0.78/unit distribution 2016 DCF target 2016 Adjusted delivered strong quarterly and coverage of 1.0x for Q4’16 and 1.11x range EBITDA (1) target results $3.12/unit range annualized for full year 2016 New DCP creates the largest U.S. NGL producer and gas processor with an ~$11 billion enterprise value (NYSE: DCP) DCP 2017 Path Forward Key Considerations Announced New Growth Projects • Strong track record of execution • DJ Basin expansion (~$395 million) • DCP well positioned to take advantage of • 200 MMcf/d plant & gathering strengthening industry environment • Sand Hills pipeline increasing capacity to • Ample liquidity and financial flexibility 365,000 BPD (~$70 million) • Financial strategy focused on unitholder value • Line of sight to incremental organic growth creation while managing commodity exposure opportunities • Clear pathway to distribution growth (1) 2016 and prior period Adjusted EBITDA excludes distributions in excess of equity earning Delivered strong 2016 results – DCP well positioned for 2017 and beyond 4

Q4 and YTD 2016 DPM Standalone Results Q4 Q4 YTD YTD Results ($MM) 2015 2016 2015 2016 Natural Gas Services Adjusted EBITDA (1) $135 $120 $515 $453 NGL Logistics Adjusted EBITDA (1) $52 $50 $182 $203 Wholesale Propane Adjusted EBITDA (1) $11 $7 $44 $27 Adjusted EBITDA (1) $176 $151 $656 $594 Distributable Cash Flow $145 $120 $572 $537 Bank Leverage Ratio (2) 3.3x 3.5x Distribution Coverage Ratio (Paid) 1.21x 1.00x 1.19x 1.11x Performance drivers for Q4 2016 vs Q4 2015: Natural Gas Services NGL Logistics & Wholesale Propane • Decreased primarily due to: • Decreased primarily due to: • Lower hedge settlement gains • Lower unit margins on Wholesale Propane • Volume declines in Eagle Ford, East Texas and Southeast Texas • Higher maintenance costs on NGL Logistics • Sale of North Louisiana • Partially offset by: • Partially offset by: • Higher NGL pipeline throughput volumes and earnings • DJ Basin growth – Lucerne 2 plant and Grand Parkway • Natural gas storage commercial activities and lower operating costs (1) Adjusted EBITDA excludes distributions from unconsolidated affiliates. See Non GAAP reconciliation in the appendix section As defined in Revolving Credit Facility – includes EBITDA Project Credits and other adjustments (2) Proactive execution… exceeded 2016 target ranges 5

DPM Standalone Volume Update Natural gas volumes decreased ~14% from Q4 2015 NGL pipeline throughput increased 6% from Q4 2015 primarily primarily due to declines in the South (Eagle Ford, East due to growth in NGL production from DCP and third party plants Texas & Southeast Texas) (1) NGL Pipeline Throughput (MBbls/d) (1) Natural Gas Throughput (MMcf/d) 298 2,421 (2) 283 2,264 (2) 266 55 (4) 49 2,078 436 45 496 56 471 54 63 821 21 20 685 16 15 557 19 34 16 34 29 590 33 450 405 31 23 239 239 236 83 80 71 395 406 338 Q4'15 Q3'16 Q4'16 Q4'15 Q3'16 Q4'16 Sand Hills Southern Hills Front Range Texas Express DJ Basin Discovery East Texas Eagle Ford Other (3) Wattenberg Black Lake Other (3) Average Plant Utilization Average Pipeline Utilization Q4’16 Q4’16 Net Processing Gross Throughput Region Region Capacity (MBbls/d) Capacity (Bcf/d) (4) Utilization % Utilization % DJ Basin Sand Hills 280 ~85% 0.4 103% Discovery 0.2 100% Southern Hills 175 ~55% Eagle Ford 0.9 62% Front Range 150 ~70% East Texas 0.8 52% Texas Express 280 ~55% (1) Represents total throughput allocated to our proportionate ownership share (2) Q4’15 was adjusted to remove throughput volumes associated with the North Louisiana system. All periods shown have been adjusted to remove throughput volumes associated with a small gathering line in the Eagle Ford that was sold in Q4’16 (3) Natural Gas Other includes the following systems: SE Texas, Michigan, Southern Oklahoma, Wyoming & Piceance / NGL Pipeline. NGL Pipeline Other includes Panola, Seabreeze and Wilbreeze NGL pipelines (4) Net Processing Capacity excludes idled plants Asset optimization, cost savings and strong reliability offsetting volume declines 6

2017 Financial Overview 7

DCP 2017e Guidance ($ in Millions, except per unit amounts) 2017e DCP 2017e Margin: Key Metrics Guidance 72% fee-based & hedged Previous Adjusted EBITDA Range $865-1,025 Retaining upside Distributions in excess of equity earnings $75-85 in a rising 2017 Adjusted EBITDA (1) $940-1,110 commodity price ~28% Commodity environment Distributable Cash Flow (DCF) $545-670 60% Total GP/LP Distributions $618 Fee ≥1.0x Distribution Coverage Ratio (TTM) (2) ~12% Hedged Bank Leverage Ratio (3) <4.5x Distribution per Unit $3.12 2017… Year of Transition Maintenance Capital $100-145 • Strong line of sight to growth opportunities Growth Capital $325-375 • Sand Hills expansion 2017 Hedged Commodity Sensitivities • DJ Basin continued infrastructure expansion Per unit 2017 • Opportunities in Permian, SCOOP/STACK ∆ Commodity Price range ($MM) • Industry environment is strengthening $0.50-0.65 NGL ($/gallon) $0.01 $5 • DCP well positioned to take advantage of industry Natural Gas ($/MMBtu) $0.10 $7 $3.00-3.50 and ethane recovery Crude Oil ($/Barrel) $1.00 $4 $50-60 (1) 2017 Adjusted EBITDA definition has been updated to include distributions from unconsolidated affiliates, consistent with bank definition. See Non GAAP reconciliation in the appendix section (2) Includes IDR giveback, if needed, to target a 1.0x distribution coverage ratio (3) Bank leverage ratio calculation = Adjusted EBITDA, plus certain project EBITDA credits from projects under construction, divided by bank debt (excludes $550 million Jr. Subordinated notes which are treated as equity) DCP 2020 strategy execution positions DCP for significant upside in recovery 8

2017e Adjusted EBITDA Breakdown 2017e Adjusted EBITDA by Region (Standalone and Combined) Contributed to DCP’s $1,025MM (1) portfolio One third interest in Sand Hills & Southern Hills 40% Midcontinent, including $575MM (1) 10% SCOOP/STACK $450MM (1) 15% Midstream’s 45% 35% strong position in the Permian 15% 20% 30% DJ Basin 30% contracts and 20% Midstream’s 25% infrastructure 15% DPM Midstream DCP North Permian South Midcontinent Logistics (1) Assumes midpoint of 2017e adjusted EBITDA guidance range DCP combination significantly expands footprint and Adjusted EBITDA in growth basins 9