Investor Handout October 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
What ’ s New? New Permian Basin opportunities ▪ Additional progress towards goal of 50% net EBITDA ¹ contribution from the Permian Basin by the end of 2020 ▪ LOI with Salt Creek Midstream, LLC ( “ SCM ” ) for 50/50 Joint Development of 1 Delaware Basin Crude Oil Gathering and Transportation System Underpinned by ~180,000 dedicated acres and 6 customers (including NBL) ▪ Closing anticipated in 4Q18 ▪ ▪ Additional Permian Commercial Success 2 Signed long-term agreement for Advantage Pipeline System to service facilities for a major ▪ producer with ~20,000 acres in the Southern Delaware Basin Connected initial third-party well for infield oil, gas, water gathering (~13,000 dedicated acres), ▪ with future activity on the acreage anticipated in 2019 1. Figures are Non-GAAP; see definition in Appendix hereto www.nblmidstream.com 3
Enhancing Noble Midstream’s Permian Opportunities Infield In-Basin Transportation Long-haul / Fractionation Entity Blanco River Trinity River Trinity River SCM JV EPIC Crude EPIC Y-Grade • NGL Long-haul • Crude gathering • (Permian to Advantage Pipeline Crude Long-Haul Crude Gathering and • Gas gathering Corpus Christi) Service (Permian to Crude Transportation Transportation • Produced water Gas Compression • Corpus Christi) (Pecos, Reeves to Fractionation Offerings (Reeves to Crane, gathering • Wink) • Midland) Marine storage Purity product • Central facilities transport Acreage Dedicated Acreage Dedicated Customer Count Acreage Dedicated MDQ Capacity Acreage Dedicated Customer Mix NBL NBL NBL NBL NBL NBL Third Party Third Party Third Party Third Party Third Party 50% NBLX 40% NBLX 50% NBLX 15% NBLX 100% NBLX 50% SCM 30% NBL (Option)² Ownership (Option)² 60% NBL 50% PAA (LOI)¹ Recent Opportunity Addition 1. Closing anticipated in 4Q18 2. Option expires February 2019 www.nblmidstream.com 4
Strategic Delaware Basin Partnership Opportunity with Salt Creek Agreement Summary Proposed Joint Venture Structure ¹ 730 Miles of ▪ Signed a Letter of Intent with Salt Creek to Form a 50/50 Partnership on a Delaware Crude Oil Pipeline and Gathering System Pipe ▪ Closing anticipated in 4Q18 100% ▪ Strategically Located Asset Would Expand Oil Trinity River DevCo Infield And Intermediate Crude Gathering and LLC Transmission Footprint in Delaware Basin Dedication of Crude Gathering Southern Portion of and Transportation ▪ NBLX ’ s 50% Net Capital Investment Anticipated to Reeves County Dedications Total $60-$80 Million over Five Years Acreage 50% 50% ▪ ~75-80% of net capital funded by year-end 2019E Jointly Develop 20 ” Wink Trunk Line ▪ Economics Supported By Acreage Dedications and Production Ramp From 6 Customers (Including NBL): NewCo Crude Transportation JV ~180,000 contributed acres • ▪ Existing dedications totaling ~180,000 acres 6 existing customers • ▪ Line of sight to additional dedications 2019E rig activity: 8-10 • totaling ~100,000 acres ▪ Peak Build EBITDA ² Multiple of ~3.5x to 4.5x 1. Simplified organizational structure 2. Figures are Non-GAAP; see definition in Appendix hereto www.nblmidstream.com 5
Expanding Delaware Basin Footprint with JV System System Details System Map 730 Miles of ▪ SCM Commenced Construction on Newbuild Pipeline with Targeted 2Q19 In-service Date Pipe ▪ 95-Mile, 20 Inch Crude Oil Trunk Line ▪ 200 MBbl/d initial throughput capacity ▪ Provides “ Wellhead to Water ” Solution for Customers via Planned EPIC Connectivity ▪ Pipeline Originates in Pecos County, TX, Connects in Reeves County, TX, and Provides Access to Wink Hub ▪ Wink is a key origination point for all recently announced long-haul pipes, including premium Gulf Coast markets ▪ Project Scope Includes 200 MBbls of Incremental Crude Oil Storage ▪ About Salt Creek: ▪ Formed in 2017 by ARM Energy Holdings LLC and Ares Management, LP ▪ Full-service midstream provider, offering gas and crude gathering, compression, cryogenic processing and treating services www.nblmidstream.com 6
Expanded NBLX Permian Basin Footprint 730 Miles of Pipe www.nblmidstream.com 7
EPIC Crude (NBL) and Y-Grade Pipeline (NBLX) Opportunities ▪ Option Period Allows for More Construction and Commercial Progress Before Making Equity Investment ▪ Options expire February 2019 ▪ Operational and Capital Synergies from Shared Right of Way of Crude and NGL Lines NBL EPIC Crude Pipeline NBLX EPIC Y-Grade Pipeline ▪ NBLX Option on 15% Equity Interest Through Feb 1 st 2019 ▪ NBL Option on Up to 30% Equity Interest Through Feb 1 st 2019 ▪ ~700-mile Pipeline from Permian and Eagle Ford to the ▪ 1,100 (720 Mainline)-mile Pipeline from Multiple Corpus Christi Origination Points to Corpus Christi ▪ 24 ” diameter ▪ 24 ” diameter, may be upsized to 30 ” ▪ 600 MBbl/d Capacity ▪ Terminals in Orla, Saragosa, Crane, Wink, ▪ Significant plant dedication and volumes Midland, Helena, and Gardendale, with export committed from Permian processing plants access ▪ Fractionation in Corpus Christi (600 MBbl/d) ▪ Base Capacity from the Permian of 440 MBbl/d (Expandable to 675 MBbl/d) ▪ Initially 2-100 mbpd trains Future total up to 5 potential trains ▪ ▪ Purity Product Pipelines in Corpus Christi www.nblmidstream.com 8
EPIC Crude Pipeline Map- NBL Option ¹ 1. Option expires February 2019 www.nblmidstream.com 9
EPIC Y-Grade Pipeline Map- NBLX Option ¹ 1. Option expires February 2019 www.nblmidstream.com 10
Peer-Leading Metrics and Outlook Peer Peer Peer Peer Peer Peer Peer NBLX G A B C D E F 20%+ 2018E ✓ ✓ Distribution Growth ✓ >2.1x 2018E DCF Coverage ¹ ✓ ✓ ✓ ✓ <2.8x 2018E Leverage ¹ ✓ ✓ 3-Year DPU CAGR of +20% ✓ ✓ ✓ 5- Year Outlook NBLX Peer Avg. 2018E Distribution Growth 20% 13% 2018E DCF Coverage ¹ 2.0x - 2.1x 1.2x 2018E Leverage ¹ <2.8x 2.9x Source: Company Reports and Wells Fargo Weekly Note: Peers Include WES, OMP, HESM, EQM, ENLK, CNXM, AM 1. Figures are Non-GAAP; see definition in Appendix hereto 11 www.nblmidstream.com
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