jefferies 2017 energy...

w w w . w e s t e r n g a s . c o m | N Y S E : W E S , W G P

W E S T E R N G A S

JON VANDENBRAND

Director, Investor Relations

(832) 636-1007

I N V E S T O R

R E L A T I O N S

JEFFERIES 2017 ENERGY CONFERENCE

November 28, 2017Benjamin Fink – President & CEO

W E S T E R N G A Sw w w . w e s t e r n g a s . c o m | N Y S E : W E S , W G P W E S T E R N G A Sw w w . w e s t e r n g a s . c o m | N Y S E : W E S , W G P 2

Cautionary Language Regarding Forward Looking Statements

This presentation contains forward-looking statements. Western Gas Partners, LP and Western Gas Equity Partners, LP believe that their expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove to have been correct. A number of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this presentation. These factors include the ability to meet financial guidance or distribution-growth expectations; the ability to safely and efficiently operate WES’s assets; the ability to obtain new sources of natural gas supplies; the effect of fluctuations in commodity prices and the demand for natural gas and related products; the ability to meet projected in-service dates for capital growth projects; construction costs or capital expenditures exceeding estimated or budgeted costs or expenditures; and the other factors described in the “Risk Factors” section of WES’s and WGP’s most recent Forms 10-K and Forms 10-Q filed with the Securities and Exchange Commission and in their other public filings and press releases. Western Gas Partners, LP and Western Gas Equity Partners, LP undertake no obligation to publicly update or revise any forward-looking statements.


WES Today

Western Gas Portfolio1

Gathering Systems 20

Natural Gas Processing Plants,

Trains and Treating Facilities51

Natural Gas Pipelines 5

NGL/Crude Oil Pipelines 7

Pipeline Miles 13,280

1) As of September 30, 2017 and includes equity interests. Pipeline miles as of December 31, 2016.

Greater

Green

River Basin

Dry Gas Basin

Pipelines

Liquids-Rich Basin

Powder

River

Eagleford

Marcellus

DJ Basin

Our Largest Asset

Delaware Basin

Our Fastest Growing Asset


DJ Basin: A Core WES AreaI N T E G R A T E D I N F R A S T R U C T U R E I N P L A C E

C O N T I G U O U S C O R E

2+ BBOENET RESOURCES

4,500+DRILLING LOCATIONS1

35%ROYALTY UPLIFT2

~560MBOE WELL EUR1

A P C D E V E L O P M E N T A R E A

Source: Anadarko Petroleum Corp. November 2017 Investor Book1) 6,700-foot mid-lateral equivalents: 18-24 wells per section2) BTAX NPV-10 per well, based on WTI $55/Bbl and HH $3/Mcf

APC Acreage

APC Mineral Interest

WES Gas Gathering

APC Oil Pipelines

WES/APC Processing or

Stabilization Facility

Future Processing Facility

Front Range(33.33% WES)

OPPL

White Cliffs

Saddlehorn(10% WES)

Lancaster

Wattenberg

Platte Valley

COSF

Latham 1&2

Texas Express(20% WES)

Mt. BelvieuNGL HUB

CushingWTI HUB

ConwayNGL HUB

5 MILES

Market Center

Oil Equity Pipeline

NGL Equity Pipeline

NGL Pipeline

Development Area: 400,000 Net Acres

W E S T E R N G A Sw w w . w e s t e r n g a s . c o m | N Y S E : W E S , W G P W E S T E R N G A Sw w w . w e s t e r n g a s . c o m | N Y S E : W E S , W G P

0

200

400

600

800

1000

1200

0

2

4

6

8

10

12

14

16

Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3

2012 2013 2014 2015 2016 2017

Vo

lum

es

Mm

cfe

/d

Rig

Co

un

t

APC Rig Count APC Volumes

5

DJ Basin: Growth Follows Rig Increases

Steady Rig Increase in

2013 – 2014…

… Significant Volume Growth in

2014 – 2015

Rig Count Decreased in

2015 – 2016…… Rig Count Increasing

2016 – 2017…

Source: Anadarko Petroleum Corp. Operations Reports1APC Volumes include dry gas and NGL volumes converted assuming a 6 Mcf to 1 Bbl conversion ratio

1


Delaware Basin: Even Bigger

BECKMAN AGNES /26/2

WFMP_FOXTROT_T-WFMP_B_T

PENN_T

WFMP_T-WFMP_A_T

Z_WFMP_GULF_T


PENN_T

WFMP_T-WFMP_A_T

Z_WFMP_GULF_T

-660

0-6

800

-700

0-7

200

-740

0-7

600

-780

0-8

000

-820

0-8

400

-860

0-8

800

-900

0-9

200

-940

0-9

600


PENN_T

WFMP_T-WFMP_A_T

Z_WFMP_GULF_T


PENN_T

WFMP_T-WFMP_A_T

Z_WFMP_GULF_T

HS=0

PETRA 2/28/2017 1:28:57 PM (IR_Support_WFMP_Beckman_Agnes_JGrant-Feb2017.CSP)

For internal information only. Depicted information is subjective and its accuracy has not been verified.

Printed or saved versions may be outdated. Depictions and information are intended to be confidential,

and may be subject to legal restrictions or protections. For questions regarding appropriate use,

contact BITS E&P Systems, Tim Donovan.

Ev

alu

ati

ng

Po

ten

tia

l

A

B

C

D

Wolfcamp

Type Log

~3,000-FOOT

THICKNESS

UP

PE

RM

IDD

LE

LO

WE

R

3+

Ta

rge

t Z

on

es

8 -

24

+ P

ote

nti

al

We

lls

/Se

cti

on

Source: Anadarko Petroleum Corp. November 2017 Investor Book

1) 7,500-foot mid-lateral equivalents

A P C W O L F C A M P A

3+ BBOENET RESOURCES


1,500+MBOE WELL EUR*

A P C W O L F C A M P P O S I T I O N A D VA N TA G E

WOLFCAMP

PRODUCTIVITY

DRIVERSCULBERSON

WARD

WINKLER

LOVING

REEVES

NEW MEXICO

TEXAS

10 MILES

APC ACREAGE

IMPROVING QUALITY

Thickness

Porosity

GOR

Pressure

Approximate APC DJ Basin Acreage Footprint


Haley: An Original WES IPO Asset

D e l a w a r e B a s i n I n f r a s t r u c t u r e D e l a w a r e B a s i n S t a c k

P r i m a r y

T a r g e t

Lean Gas

~8

,500

-FO

OT

TH

ICK

NE

SS

AVALON B

3rd BONE SPRING

2nd BONE SPRING

AVALON A

WOLFCAMP B

WOLFCAMP A

WOLFCAMP C

WOLFCAMP D

PENNSYLVANIAN

Haley Gas Gathering


DBJV: Exploring the Delaware Basin Stack


~8

,500

-FO

OT

TH

ICK

NE

SS

AVALON B

3rd BONE SPRING

2nd BONE SPRING

AVALON A

WOLFCAMP B

WOLFCAMP A

WOLFCAMP C

WOLFCAMP D

PENNSYLVANIAN

P r i m a r y

T a r g e t

Oil & Rich Gas

Haley Gas Gathering

50% DBJV Gas Gathering


Integrating the System: Bone Spring and MiVida Processing Capacity


~8

,500

-FO

OT

TH

ICK

NE

SS

AVALON B

3rd BONE SPRING

2nd BONE SPRING

AVALON A

WOLFCAMP B

WOLFCAMP A

WOLFCAMP C

WOLFCAMP D

PENNSYLVANIAN

P r i m a r y

T a r g e t

Oil & Rich Gas

U p s i d e

T a r g e t s

Oil & Rich Gas

Haley Gas Gathering APC Processing Plant Interest

50% DBJV Gas Gathering


Nuevo Acquisition: Creating a 3rd Party Business

D e l a w a r e B a s i n I n f r a s t r u c t u r e W E S 3 r d P a r t y B u s i n e s s

525+ MMcf/dAs of September 2017

Volumetr ic

Commitments

160,000+ AcresAs of September 2017

Acreage

Dedicat ions


50% DBJV Gas Gathering Ramsey Processing Plant

DBM Gas Gathering


The Delaware Basin: One Step Ahead of Permania

U p s t r e a m D e l a w a r e B a s i n M & A

( S i n c e 2 0 1 5 )

M i d s t r e a m D e l a w a r e B a s i n M & A

( S i n c e 2 0 1 5 )

Date Buyer Seller

Jun-17 Howard Energy Partners WPX Energy

Apr-17 Blackstone Energy EagleClaw Midstream

Apr-17 NuStar Energy Navigator Energy Services

Feb-17 Five Point Capital Matador Resources

Jan-17 Plains All American Alpha Crude Connector

Jan-17 Targa Resources Outrigger Energy

Sep-16 EagleClaw Midstream PennTex Midstream

Sep-16 Lucid Energy Agave Energy

Jul-16 Caprock Midstream Resolute Energy

Sep-15 Enlink Midstream Matador Resources

Feb-15 Enlink Midstream Coronado Midstream

Jan-15 Enlink Midstream LPC Crude Oil Marketing

Oct-14 Western Gas Nuevo Midstream

Source: Public company announcements

1

2

43

5

12

13 19

1625

10

22

14

8

9

6

7

27

31

1124

1829

28

23

26

21

17

1530

20

34

3332

35

36

37

38


Preparing for the Future: DBJV Consolidation & Mentone

D e l a w a r e B a s i n I n f r a s t r u c t u r e

40+%5-YEAR OIL CAGR


3+ BBOEWOLFCAMP A

1+ BBOEPOTENTIAL UPSIDE

REST OF STACK

NET RESOURCES

A P C D e l a w a r e O p p o r t u n i t y 1


100% DBJV Gas Gathering Ramsey Processing Plant

DBM Gas Gathering Mentone Processing Plant (Under Construction)Source: Anadarko Petroleum Corp. November 2017 Investor Book1) 7,500-foot mid-lateral equivalents


Near Term Delaware Basin Development Plan – Natural Gas

CULBERSON

NEW MEXICO

TEXAS

REEVES

WARD

LOVING

WINKLER

5 MILES

LEAEDDY

APC Leasehold

Gas Gathering Lines

Compressor Station

Gas Plant

Future Gas Gathering Lines

Future Compressor Station

Future Gas Plant

~300 miles

Pipelines

F U T U R E A D D I T I O N S

~77,000 hp

Compression

~600 MMcf/d

ProcessingCapacity


Near Term Delaware Basin Development Plan – Crude Oil

CULBERSON

NEW MEXICO

TEXAS

WARD

WINKLER

5 MILES

EDDY

REEVES

APC Leasehold

Gas Gathering Lines

Central Processing Facility

Oil Storage Facility

Future Oil Pipeline

Future Pump Station

Future Oil Treating Facility

LEA

LOVING

~250 miles

Pipelines


~180 MBOPD

Oil Treating


Near Term Delaware Basin Development Plan – Water

CULBERSON

NEW MEXICO

TEXAS

REEVES

WARD

WINKLER

APC Leasehold

Existing Water Pipelines

Saltwater Disposal

EDDY LEA

LOVING

Future Water Pipelines

Future Saltwater Disposal 5 MILES

~230 miles

Pipelines


~690 MBW/d

Disposal Capacity


APC Divestitures Fuel Growth in Other Areas

$3.5 Billion Divestiture Proceeds to Redeploy Into

DJ Basin and Delaware Basin

M a r c e l l u sE a g l e f o r d

Sanchez Energy acquired APC acreage in 1Q17

Returned to sequential volumetric growth in 3Q17

Alta Resources Development acquired APC acreage in 1Q17

▪ Marcellus acreage is only asset in portfolio

▪ Established track record of successful shale development

Dimmit La Salle

Webb

Maverick

10 Miles

Oil Handling FacilityBrasada Gas Plant


High-Quality Dropdown Inventory Provides Safety

Current Inventory

Natural Buttes

Gathering

Panola

Pipeline1

Delaware Basin

Bone Spring

Plant1 MiVida Plant1

Crude Oil

Gathering

Delaware Basin

Water

Extremely attractive locations

▪ 80+% cash flow from Delaware and DJ Basin assets

Significant anticipated growth

▪ $150 to $200 million run-rate EBITDA same as 2016,

despite APC Marcellus divestiture (~$40 million

EBITDA)

Substantial Anadarko investment

▪ Significant 2017E APC midstream capital spend

▪ ~60% directed towards crude oil gathering in

Delaware and DJ Basins

▪ ~40% directed towards Delaware Basin produced

water infrastructure

▪ Equity investment optionality

DJ Basin

Wattenberg

Plant

DJ Basin Oil

Gathering

Saddlehorn

Pipeline1

1) Anadarko owns a non-operated interest


Preparing for the Next Stage of Growth

L a r g e s t C a p i t a l B u d g e t i n

H i s t o r y

( $ 8 0 0 M M - $ 8 5 0 M M )

F u l l o w n e r s h i p o f D B J V

D r o p d o w n I n v e n t o r y

R e p l e n i s h m e n t

E a r l y C o n v e r s i o n o f

S e r i e s A P r e f e r r e d u n i t s

2 Q 1 7

2017

The Year

of Action


Why WES?

F o r e c a s t e d 2 0 1 7 & 2 0 1 8

D i s t r i b u t i o n G r o w t h o f 7 %

S u p p o r t i v e B l u e - C h i p E & P

S p o n s o r

L a r g e - C a p G a t h e r i n g , P r o c e s s i n g

a n d T r a n s p o r t a t i o n M L P

V i s i b l e O r g a n i c & I n o r g a n i c

G r o w t h P r o f i l e

S t r o n g C o m m o d i t y & V o l u m e t r i c

R i s k M i t i g a t i o n

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