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Steve Spaulding, Senior Vice President
Processing and Natural Gas Liquids1
RBC Capital Markets MLP Conference
November 2010
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Forward Looking StatementsThis 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 Crosstex
Energy, L.P. and its affiliates (collectively known as “Crosstex”) may differ materially
from those expressed in the forward-looking statements contained throughout this
presentation and in documents filed with the SEC. Many of the factors that will
determine these results are beyond Crosstex’s ability to control or predict. These
statements are necessarily based upon various assumptions involving judgments with
respect to the future, including, among others, the ability to achieve synergies and
revenue growth; national, international, regional and local economic, competitive and
regulatory conditions and developments; technological developments; capital markets
conditions; inflation rates; interest rates; the political and economic stability of oil
producing nations; energy markets; weather conditions; business and regulatory or
legal decisions; the pace of deregulation of retail natural gas and electricity; the timing
and success of business development efforts; and other uncertainties. You are cautioned
not to put undue reliance on any forward looking statement. Crosstex has no obligation
to publicly update or revise any forward looking statement, whether as a result of new
information, future events or otherwise.
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Midstream energy services company focused
on full value chain
Assets strategically located in key producing
areas and market regions
Focus on Barnett and Haynesville shale plays
Focused Midstream Company Diversity of Services
Over 3,300 miles of natural gas gathering
and transmission pipeline
9 natural gas processing plants
2 fractionators
Over 400 miles of NGL pipeline
2.4 MM barrels of NGL storage capacity
Wellhead
Gathering, Dehydration & Compression
Processing , Conditioning & Treating
Transmission Lines
NGL Transportation & Fractionation
Natural Gas Consumers
NGL Markets
We Span the Value Chain
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Strategically Positioned Assets
North Texas
~780 miles of pipeline
3 processing plants
LIG
~2,100 miles of pipeline
2 processing plants
Processing & NGLs ~440 miles of NGL pipeline
4 processing plants
2 fractionation facilities
North Texas
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Well Positioned Assets (current capacity) :
NTPL – 375 MMcfd
NTX Gathering Assets – 1 Bcfd +
Azle plant – 50 MMcfd
Goforth plant – 30 MMcfd
Silvercreek plant – 200 MMcfd
North Texas Gathering
Systems
North Texas Pipeline
Processing Plant
NTX: Strategically Positioned in the Barnett Shale
Fossil Creek
Benbrook
North Texas Expansion Project 1:
New 10 yr. transport agreement on N.TX Volume commitment of at least 50
MMBtu/d
Expected capital of less than $10 million cash
Expected annual run-rate cash flow of approximately $8 million
System expected in operations first quarter 2011
North Texas Expansion Project 2:
$25 million, 15-mile expansion project supported by volumetric commitments
Seven-mile low-pressure pipeline, eight-mile high-pressure pipeline and
compressor station in southwest Tarrant County
Peak flow rate in 2012 expected to be more than 100 MMBtu/d
System expected in operation first quarter 2011 7
NTX: New Long Term Gathering Agreements
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LIG
LIG: Strategically Located Assets
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LIG System
NGL System
Processing Plant
Well Positioned Assets (current capacity) :
LIG ~ 1Bcfd
Gibson Plant – 145 MMcfd
Plaquemine Plant – 225 MMcfd
LIG: Strong Execution Haynesville Opportunities
Haynesville Projects
Capacity MMcf/d Contract
In Service Total Contracted Term (1)
N. LIG Contracted Projects
Red River Project Q3 2007 240 240 7 yr
North LIG Expansion Phase I Q4 2008 35 35 10 yr
North LIG Expansion Phase II Q2 2009 100 100 10 yr
Black Lake Interconnect Phase III – Part I Q4 2009 35 35 3 yr
Red River Amine Unit (120 MMcf/d Capacity) Q4 2009 3yr
Black Lake Interconnect Phase III – Part II Q2 2010 25 25 1.5 yr
LIG Phase IV Expansion- Part I Q3 2010 30 30 5 yr
Total Contracted 465 465
10(1) Volume Weighted Average Life of 5.14 Yrs
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Processing and Natural Gas Liquids
PNGL Business Description
Sabine
Corridor
Eunice
CorridorPelican
Corridor
PNGL: Eunice Frac Restart
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Restarting 15,000 Bbls/d of Existing 36,000 Bbls/d Frac
Capex - $9.3MM with Op Income Contribution of $3.3MM
Economics Supported by New Volume Commitments, Liquids
from Our Plants and Expense Savings
Project Will Also Connect Plaquemine Fractionation Into Our
NGL System and Access New Markets
Upside – Additional Capacity to Bring Liquids from Other Plays
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NGL Demand Review
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U.S. Gulf Coast Product Supplied of Ethane (EIA)
U.S. Gulf Coast Ethane Supply
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Louisiana Gulf Coast Gas Plant Production of Ethane (EIA)
Ethane to Gas/Ethylene/Crude
• Fundamental price relationships are changing
– Crude to gas is 25 to 1 versus historical 9 to 1
• NGLs trade on crude oil relationship
– North America Petrochemical business has the second lowest
feedstock price and fuel price
– Record high run rates for North America Ethylene crackers
– Ethane is currently the only positive margin feedstock to
Ethylene crackers
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