First Quarter 2018 Earnings Call May 2018 www.nblmidstream.com - PowerPoint PPT Presentation

First Quarter 2018 Earnings Call May 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 the Partnership’s current views about future events. No assurances can be given that the forward-looking statements contained in this news release 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

First Quarter 2018 Highlights Strong Execution Financial Discipline 1Q 1 Volumes vs 4Q: 1Q Distribution Coverage Ratio 2.3x 2  Oil, Gas & Produced Water Gathering +22% 1Q Annualized Leverage 2.0x 2, 3  Fresh Water Delivery +24% Credit Facility Upsized to $800 MM Plus $350  Throughput from Advantage Pipeline +47% MM Accordion DPU Growth Gathering Throughput & Fresh Water Delivery In-line or Exceeding Guidance 4.7% Increase Above 4Q17 24% Increase Over 1Q17 Growth Projects Delivered 36% Above MQD Delaware CGFs On Schedule: Recent Developments  Coronado Completed March 30  Billy Miner II Online April 20  May Black Diamond Nominations of 58 MBbl/d  FWD Delivered at Green River in DJ Basin in March  May Nominations at Advantage of 120 MBbl/d  Collier CGF in Delaware Basin Nearing Completion 1. Oil gathering reflects two months contribution from acquisition of Black Diamond Gathering which closed on 1/31/18 2. Distribution Coverage Ratio and Leverage are Non-GAAP measures, see definition provided in appendix hereto 3. Defined as 1Q Debt / 1Q EBITDA * 4 ($435 million / $54 million *4) www.nblmidstream.com 3

First Quarter 2018 Results In-line or exceeding guidance across the majority of categories Actuals 1Q Guidance 1Q v 4Q Gross Volumes: 4Q17 1Q18  Oil Gathered (MBbl/d) 93 130 120 - 135 40%  Gas Gathered (MMcf/d) 175 191 190 - 200 9%  MBoe/d 122 162 152 - 168 33%  PW Gathered (MBw/d) 49 47 42 - 50 -4%  FW Delivered (MBw/d) 135 168 130 - 150 24% Net Income ($MM) 46 39 42 - 48 -15%  Gross EBITDA ($MM) ¹ 52 58 55 - 61 12%  Net EBITDA ($MM) ¹ 48 54 52 - 58 13%  DCF ($MM) ¹ 43 47 44 - 50 9%  Distribution Coverage Ratio 2.2x/2.4x ² 2.3x 2.1x - 2.4x  Gross Capex ($MM) 136 249 225 - 250 Net Capex ($MM) 62 128 110 - 125 1. Figures are Non-GAAP, see definition provided in appendix hereto 2. 2.2x as reported; 2.4x adjusted for December equity issuance and prior to any Black Diamond acquisition contribution www.nblmidstream.com 4

Peer-Leading Distribution Coverage 1 Continues Gathering volumes driving growth 1Q Gathering Net EBITDA 1 of $40 MM, an 8% Increase Above 4Q   1.6x Distribution Coverage Ratio 1 excluding Fresh Water  Gathering net EBITDA represented 74% of total net EBITDA Full-Year 2018 Guidance: 20% Distribution Growth with Distribution Coverage Ratio 1 of 1.9x –  2.1x 1 Distribution Coverage Ratio 1,3 & DPU 1Q 2018 NBLX Net EBITDA and Distribution Coverage 1,2 $ in millions 4.5x 2.50 $2.19 2.3x 4.x $1.81 2.00 3.5x 1.6x $40 3.x 1.50 2.5x 2.1x 1.9x - 2.1x Implied Distribution 2.x x Coverage of 4Q 54 1.00 Distribution 1.5x 40 Total EBITDA 1.x Fresh Water Delivery 0.50 EBITDA .5x Gathering EBITDA .x 0.00 2017 2018E Gathering EBITDA =G2 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

Strong Execution Driving Visible Growth Consistent milestones and catalysts throughout the year Operational Scorecard  Oil and Gas Gathering Close and Integrate Black Diamond Gathering MBoe/d  Commence Delaware Basin Compression Services for NBL 300 250  Begin Mustang Fresh Water Delivery at Green River DevCo 200 - 235 190 - 210 200  Start-up Coronado CGF in Delaware Basin 162 150  Commence Operations at Billy Miner II CGF in Delaware Basin 89 100 On Complete Collier CGF in Delaware Basin in May Track 50 On Start-up Green River Spec Oil, Gas and Water System by Mid-year Track 0 On Expand Advantage Capacity to 200 MBbl/d by end of 3Q18 2017 2018E 1Q18 2Q18E Track Fresh Water Delivery Produced Water Gathering MBw/d MBw/d 130 120 200 110 168 80 -110 130 -190 100 156 75 - 90 90 150 80 110 - 130 70 60 47 100 50 40 24 30 50 20 10 0 0 2017 2018E 1Q18 2Q18E 2017 2018E 1Q18 2Q18E www.nblmidstream.com 6

1H18 Capital Drives Expected Robust 2H18 Performance 2H18 expected growth reflects growth project and customer activity timing  Net Income Guidance of $175 - $210, or 17% Above 2017 Revised net income reflects higher expected DD&A due to Black Diamond Gathering acquisition   45% Annual Adjusted Net EBITDA 1 Growth Anticipated at Guidance Midpoint ($215 - $235 MM) Decline in Adjusted Net EBITDA 1 from 1Q18E to 2Q18E due to development timing, continued conservatism forecasting FWD  volumes and customer completion operations shift from Colorado River (100% owned) to Green River (25% owned)  ~20% Increase in Net EBITDA 1 in 2H18 Compared to 1H18 Provides Visibility and Momentum into 2019 2H18 vs. 2H17 net EBITDA 1 anticipated to be up 30%  First Half Weighted Capital Drives Momentum into 2019 Net Adjusted EBITDA ($MM) ¹ 150 140 $115 - $130 130 2H18E 120 +30% 110 $94 100 90 2018E 80 70 Gross 60 Capital 50 40 30 20 1H18 10 0 2H17 2H18E 1. Figures are Non-GAAP, see definition provided in appendix; 2018 EBITDA estimates adjusted for $7.5 million in Black Diamond Gathering transaction expenses expected in 1H18E www.nblmidstream.com 7

2018 Capital Budget Detail Growth capital focused on Blanco River and Laramie River DevCos Net Capital 1 Gross Capital 1 (attributable to the Partnership) Colorado Trinity Colorado Trinity River River River River 4% 8% 8% 15% Laramie River ² Laramie 37% River ² Blanco 29% River $500 - 535 $270 - 285 Blanco 45% MM MM River 34% Green Green River River 13% Other Other 6% No Impact to 2018 Budget from U.S. Steel Tariff DJ Basin Delaware Basin DevCo Colorado River Laramie River ² Green River Blanco River Trinity River % Ownership 100% 100% 25% 40% 100% Expected Gathering system Gathering system Completion of Buildout of 3 CGFs Expansion of • • • • • 2018 Capital well connections well connections Mustang backbone Gathering system Advantage • Investment Multiple DSU’s for infrastructure well connections throughput • New Wells Ranch • FWD Gathering system capacity to 200 • gas offload Black Diamond well connections MBbl/d • capital Compression • 1. Excludes acquisition capital 2. Includes Black Diamond Gathering capital www.nblmidstream.com 8