Investor Presentation May/June 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 described in detail in the Partnership’s periodic reports most recently filed with the Securities and Exchange Commission, including its most recent Form 10-K and 10-Qs. 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 segment gross margin, 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
Diversified Portfolio of Assets in Premier Basins One of the largest U.S. NGL producers and gas processors Leading Integrated Midstream Provider 61 7.8 Must-run business with high plants (1) Bcf/d processing quality diversified assets in capacity (1) premier basins ~64,200 Integrated G&P and Logistics miles of pipeline (1) business providing wellhead to market center services Strong track record of delivering results and strategy execution Significant growth opportunities to extend our value chain around our footprint Environmental, Health and Safety (EHS) leader in the midstream space Focus on capital efficiency and operating leverage/asset utilization (1) Statistics as of March 31, 2017 including idled plants Integrated midstream business with competitive footprint and geographic diversity 3
Commitments Delivered through DCP 2020 Execution Contract 2015 Forward Lowered Realignment Cost Base Increased and stabilizing cash flow • Contract realignment ~$235 million since inception • Growth in fee based assets to 60% System Rationalization • Multi-year hedging program… currently 74% fee and hedged Efficiencies • Total base cost reductions ~$200 million • Reduced headcount from ~3,500 to ~2,700 • Running ~$7 billion larger asset base with same cost structure as 2011 Improved System rationalization Reliability • Sale of non-core assets (~$460 million cash proceeds) • Consolidation of operations reduced costs (5 plants idled) • Increased compressor utilization (320+ units idled) Improved Reliability • Preventative maintenance process improvement • Assets achieving best run time and reliability in recent history Strengthened Balance Strengthened balance sheet Sheet • $3 billion owner contribution • ~$2 billion debt reduction since mid 2015 • DCP 2020 execution added incremental EBITDA Aligned organization, delivering results, set up for 2017 and beyond 4
Growth Focus Clear line of sight to $1.5-2B of Est Target Capex Current and Potential in strategic growth projects $MM net to Growth Projects Status Service DCP’s interest around our footprint Logistics & Marketing Growth Sand Hills expansion to 365 MBpd In progress ~$70 Q4 2017 Logistics & Marketing: Sand Hills 1 Sand Hills supply connectors In progress ~$70 2017 Sand Hills NGL Pipeline expansion Sand Hills future expansion(s) Commencing Phase I Up to ~$900 TBD • Expansion from 280 MBpd to 365 MBpd in Q4 2017 • Multiple new supply connectors in flight throughout 2017 Gulf Coast Express w/KMI In development TBD 2H 2019 • Commencing further expansion of Sand Hills ~550+ MBpd G&P Growth (phased approach) DJ 200 MMcf/d Mewbourn 3 plant In progress ~$395 Q4 2018 & Grand Parkway gathering Logistics & Marketing: Gulf Coast Express 2 DJ Basin bypass ~$25 Q3 2017 In progress Potential Permian Natural Gas Pipeline JV with KMI • 430 mile 42” intrastate pipeline connecting Permian to Gulf DJ 200 MMcf/d plant 11 ~$350-400 Mid 2019 In development Coast; 1.7 Bcf/d capacity; in service the second half 2019 Growth Opportunities $1,500-2,000 • Jointly working the project with KMI • Supply push from Permian growth where DCP’s G&P position Logistics & Marketing Gathering & Processing provides significant connectivity 2 3 G&P: DJ Basin 3 1 DJ Basin expansion • 200 MMcf/d Mewbourn 3 Plant and Grand Parkway gathering in Q4 2018 • 40 MMcf/d offloads/ bypass project on schedule for Q3 2017 • Additional 200 MMcf/d plant 11 in development for Mid 2019 Integrated G&P and Logistics asset portfolio driving fee-based growth opportunities 5
Strategically High-Grading Portfolio Redeploying Douglas Kicking Off Strategic Proceeds to Organic Growth Sand Hills Expansion Pipeline • Undertaking large scale expansion of • Announced Douglas sale of ~1,500 mile Sand Hills which will increase fee-based WY gathering system for ~$128 million earnings and leverage our significant to Tallgrass Energy Partners integrated footprint in the Permian • Non-core asset divestiture expected to close in Q2 2017 • Phased expansion lowers risk by matching capital outlay with supply growth • Redeploying proceeds into strong • Phase I to increase capacity by 85 MBpd return, lower risk, accretive fee-based up to ~450 MBpd; estimated capital projects ~$300-350 million • Approved ~$70 million to commence Phase I and fund long lead time equipment and right of way Clear path forward for strategic Sand Hills expansion driven by growth and high-grading our Permian growth backed by integrated asset footprint customer supply commitments Sand Hills $’s noted are at DCP’s 67% interest Continuing to optimize portfolio… proceeds from non-core divestiture to fund strategic growth 6
Logistics & Marketing: Sand Hills Expansion Current Sand Hills Phased Sand Hills Expansion in Progress Expansion • 365 MBpd by Q4 2017 • Phase I: 450 MBpd by 2H 2018 • New supply connectors throughout 2017 • Phase II: 550+ MBpd timing TBD Sand Hills $70 million expansion to Commencing Phase I expansion adding ~365 MBpd from 280 MBpd underway 85 MBpd to increase capacity to 450 MBpd • Install three additional pump stations and a lateral to • Estimated capital ~$300-350 million primarily increase Permian capacity • Approved ~$70 million to commence Phase I funding for • Backed by long term, 10-20 year third party plant long lead time equipment and right of way dedications • Phase I includes partial looping and seven new pump • Expected in service Q4 2017 stations adding 85 MBpd of Permian capacity and raising total Permian capacity to 380 MBpd • Expected in service 2H 2018 Multiple new supply connectors Future Phase II expansion totaling ~$70 million to 550+ MBpd • Backed by plant dedications • Leverage Phase I to complete a full loop of Sand Hills adding 100+ MBpd • Brings incremental NGL volumes in 2017 and beyond • Estimated capital up to ~$550-600 million • Supply connections occurring throughout 2017 • Timing paced with market growth $’s noted are at DCP’s 67% interest Demand driven expansion of customer friendly NGL pipeline allows flexibility to take NGLs to multiple delivery points along Gulf Coast 7
Financial Information 8
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