Second Quarter 2018 Earnings Call August 3, 2018 - PowerPoint PPT Presentation

Second Quarter 2018 Earnings Call August 3, 2018 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 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. www.nblmidstream.com 2

2Q18 Highlights ▪ In-line or Exceeded Guidance Across Majority of Categories ▪ Net Income above and Net EBITDA ¹ in upper half of guidance ▪ Delivered Strong Growth in Core Gathering Business ▪ Combined oil, gas and produced water gathering and sales volume up 30% from 1Q18 ▪ Completed Four Major Projects in the DJ and Delaware Basins in 2Q18, Positioning for Future Capital Efficiency ▪ 2 Central Gathering Facilities (CGFs) and Advantage Pipeline expansion in Delaware Basin, Mustang gathering system in DJ Basin ▪ Over 70% of full-year capital spent in 1H18 ▪ Continued Peer-Leading Distribution Growth/Coverage and Financial Strength ▪ 20% DPU increase over 2Q17, 1.8x Distribution Coverage Ratio ¹ , 2.7x Annualized Leverage Ratio ² ▪ Drove Additional Business Development Success ▪ Increased total DJ and Delaware gathering dedicated acres by 5% to ~580,000 acres in 2Q18 ▪ Continued expansion around NBL equity barrel with additional DJ Basin oil dedication and Permian EPIC y-grade pipeline option 1. Figures are Non-GAAP; see definition in Appendix hereto 2. Figures are Non-GAAP; Annualized leverage defined as 2Q Debt / 2Q EBITDA * 4 ($530 million / $49 million *4) www.nblmidstream.com 3

Second Quarter 2018 Results In-line or exceeding guidance across the majority of categories Actuals 2Q Guidance 2Q v 1Q 1Q18 ¹ 2Q18 Gross Volumes Oil Gathered (MBbl/d) ² 135 158 160 - 175 17% ✓ Gas Gathered (MMcf/d) 191 206 195 - 215 8% ✓ MBoe/d ² 167 192 190 - 210 15% ✓ PW Gathered (MBw/d) 47 86 75 - 90 84% ✓ FW Delivered (MBw/d) 168 160 110 - 130 -5% Net Income ($MM) 39 44 ✓ 34 - 39 13% Financials ($MM) ✓ Gross EBITDA ($MM) ³ 58 64 58 - 63 10% ✓ Net EBITDA ($MM) 3,4 54 49 46 - 51 -9% ✓ DCF ($MM) ³ 47 40 37 - 42 -15% ✓ Distribution Coverage Ratio ³ 2.3x 1.8x 1.7x - 1.9x ✓ Gross Capex ($MM) ⁵ 249 155 145 - 165 Net Capex ($MM) ⁵ 128 71 60 - 70 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 provided in appendix hereto 4. “Net EBITDA” is EBITDA attributable to the partnership 5. Excludes acquisition capital www.nblmidstream.com 4

Peer-Leading Distribution Coverage 1 Continues Gathering volumes driving growth Gathering Segment Alone Provides Ample Distribution Coverage ¹ ▪ Gathering net EBITDA up 13% vs.1Q18 ▪ 1.6x Distribution Coverage Ratio ¹ excluding Fresh Water ▪ Gathering Segment Represented 92% of Net EBITDA ¹ ▪ Full-Year 2018 Guidance: 20% Distribution Growth with Distribution Coverage Ratio 1 of 2.0x – ▪ 2.1x, Above Original Guidance of 1.9x – 2.1x Distribution Coverage Ratio 1,3 & DPU 2Q 2018 NBLX Net EBITDA and Distribution Coverage 1,2 4.5x 2.5x $ in millions $2.19 1.8x 4.x 1.6x $1.81 2.x 3.5x 3.x 1.5x 2.5x 2.1x 2.1x Implied Distribution x Coverage of 2Q 2.x 1.x Distribution 49 45 1.5x Total EBITDA 1.x Fresh Water Delivery .5x EBITDA .5x Gathering EBITDA .x .x FY2017 FY2018 Gathering EBITDA Column1 Total EBITDA 1. Figures are Non-GAAP; see definition in Appendix hereto 2. G&A allocated to gathering and freshwater delivery based on proportionate share of EBITDA; coverage figures reflect full net maintenance capital totals 3. Assumes 20% distribution growth target www.nblmidstream.com 5

Strategic Relationship with Strong Sponsor Continues Incremental Oil Transportation Dedication Established Full-field Commercial Terms with ▪ 1 NBL for Mustang Development in Green River DevCo Fee revised to reflect system design change from a ▪ CGF to a spec gathering system and use of enhanced completions for fresh water delivery Returns consistent with corporate targets, 5x-6x ▪ build multiple on 1 rig program Minimum Fresh Water Delivery Volume ▪ 2 Wells Ranch CGF Threshold Set in Wells Ranch (Colorado River DevCo) Black Diamond Storage 50 MBw/d in 2019 and 60 MBw/d 2020-2021 ▪ Black Diamond System Incremental 10-year Dedication for Oil Wholly Owned System ▪ 3 Future Dedication Transportation from the Wells Ranch CGF to NBLX Dedicated Acreage Platteville Upon Existing 3rd-party Contract Colorado River Fresh Water Delivery Expiration at Year-end 2020 MBw/d FY1 EBITDA ¹ build multiple of <6x ▪ 113 114 Continued expansion around NBL equity barrel ▪ 102 Trunkline buildout expands catchment area and ▪ 80 76 74 potential 3 rd -party customer additions 67 NBL Assigned NBLX its Option to Acquire Up to Year 2-3 MVC 4 ▪ Year 1 MVC 15% Ownership in the EPIC NGL Pipeline Option expiration in early February 2019 ▪ 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 1. Figures are Non-GAAP; see definition in Appendix hereto www.nblmidstream.com 6

Meaningful But Temporary 2Q Decline in Fresh Water From Mix Shift ▪ Enhanced Completions Continue to Drive Robust Fresh Water Demand per Well ▪ NBL Mustang and Wells Ranch standard design of 1,800 lbs/ft ▪ Gathering EBITDA Growth Offset by Fresh Water EBITDA Decline Driven by Mix Shift ▪ Two NBL completion crews in Mustang (Green River, 25% Owned) in 2Q18 with minimal activity in Wells Ranch (Colorado River, 100% Owned) ▪ 2H18E DJ Basin Fresh Water Completion Crew Count of 5: 2 Third-Party and 3 Sponsor ▪ Provides 2019 gathering throughput momentum Net EBITDA ¹ ,2 ($MM) Gross Fresh Water Delivery Volumes and Mix 200 80% $54 Check 70% $49 150 60% 50% 100 40% 30% 50 20% 10% 0 0% 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 1Q18 EBITDA¹ Gathering Increase FW & DevCo Mix 2Q18 EBITDA¹ Gross MBw/d % Green River (25% owned by NBLX) Impact 1. Figures are Non-GAAP; see definition in Appendix hereto 2. G&A allocated to gathering and freshwater delivery based on proportionate share of EBITDA; coverage figures reflect full net maintenance capital totals www.nblmidstream.com 7