Investor Presentation Forward-Looking Information Certain matters - PowerPoint PPT Presentation

March 2019 Investor Presentation

Forward-Looking Information Certain matters contained in this Presentation include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included in this presentation including the prospects of our industry, our anticipated financial performance, our anticipated annual dividend growth rate, management's plans and objectives for future operations, planned capital expenditures, business prospects, outcome of regulatory proceedings, market conditions, and other matters, may constitute forward-looking statements. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot assure you that these expectations will prove to be correct. These forward-looking statements are subject to certain known and unknown risks and uncertainties, as well as assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements. Factors that might cause actual results to differ include, but are not limited to, our ability to generate sufficient cash flow from operations to enable us to pay our debt obligations and our current and expected dividends or to fund our other liquidity needs; any sustained reduction in demand for, or supply of, the petroleum products we gather, transport, process, market and store; the effect of our debt level on our future financial and operating flexibility, including our ability to obtain additional capital on terms that are favorable to us; our ability to access the debt and equity markets, which will depend on general market conditions and the credit ratings for our debt obligations and equity; the loss of, or a material nonpayment or nonperformance by, any of our key customers; the amount of cash distributions, capital requirements and performance of our investments and joint ventures; the consequences of any divestitures of non-strategic operating assets or divestitures of interests in some of our operating assets through partnerships and/or join ventures; the failure to realize the anticipated benefits of our acquisition of Meritage Midstream ULC and its midstream infrastructure assets through our joint venture SemCAMS Midstream ULC; the amount of collateral required to be posted from time to time in our commodity purchase, sale or derivative transactions; the impact of operational and developmental hazards and unforeseen interruptions; our ability to obtain new sources of supply of petroleum products; competition from other midstream energy companies; our ability to comply with the covenants contained in our credit agreements, continuing covenant agreement, and the indentures governing our notes, including requirements under our credit agreements and continuing covenant agreement to maintain certain financial ratios; our ability to renew or replace expiring storage, transportation and related contracts; the overall forward markets for crude oil, natural gas and natural gas liquids; the possibility that the construction or acquisition of new assets may not result in the corresponding anticipated revenue increases; any future impairment of goodwill resulting from the loss of customers or business; changes in currency exchange rates; weather and other natural phenomena, including climate conditions; a cyber attack involving our information systems and related infrastructure, or that of our business associates; the risks and uncertainties of doing business outside of the U.S., including political and economic instability and changes in local governmental laws, regulations and policies; costs of, or changes in, laws and regulations and our failure to comply with new or existing laws or regulations, particularly with regard to taxes, safety and protection of the environment; the possibility that our hedging activities may result in losses or may have a negative impact on our financial results; general economic, market and business conditions; as well as other risk factors discussed from time to time in our each of our documents and reports filed with the SEC. Readers are cautioned not to place undue reliance on any forward-looking statements contained in this press release, which reflect management’s opinions only as of the date hereof. Except as required by law, we undertake no obligation to revise or publicly release the results of any revision to any forward-looking statements. We use our Investor Relations website and social media outlets as channels of distribution of material company information. Such information is routinely posted and accessible on our Investor Relations website at ir.semgroupcorp.com. We are present on Twitter and LinkedIn: SemGroup Twitter and LinkedIn 2

SemGroup Transformed Portfolio Provides Strategic Platform 2016 - 2018 2019 & Beyond Simplify | Transform Execute | Strengthen | Deliver • Rolled up Rose Rock Midstream MLP • Complete key projects • Sold non-core assets • Successfully renew contracts • Acquired Gulf Coast platform • Focus on cost savings • Announced Canadian growth projects • Continue deleveraging efforts • Deployed strategies to optimize existing assets • Capital efficient growth around existing platforms • Improved quality of cash flows • Focus on project returns • Focused efforts to strengthen balance sheet • Unlock synergies in Canada and connect MidCon to Gulf Coast Completed In Focus 3

SemGroup 2019 Strategic Goals and Priorities BALANCE prudent capital management with CAPTURING strategic growth opportunities • Expand SemCAMS Midstream JV Footprint Capture • Montney liquids takeaway via proposed Montney-to-Market (M2M) Pipeline Growth Opportunities • Connect Mid-Con & Gulf Coast assets via proposed Gladiator Pipeline • Maximize export opportunities at HFOTCO to meet growing demand Capture EBITDA growth from organic projects • Continue • Evaluate partner funding for new growth projects Deleveraging Efforts • Consider additional JVs and asset sales • Opportunistically seek other sources of cost-effective capital Expand Canadian system connectivity and capacity • Complete ◦ Pipestone Pipeline, Patterson Creek Expansion, Smoke Lake Plant Key Growth Projects • Conversion of White Cliffs pipe to NGL service • Increase HFOTCO connectivity via Moore Road pipeline • Execute contract renewals across portfolio Commercialization & • Integrate Meritage and SemCAMS assets Asset Optimization • Enhance HFOTCO pipeline connectivity 4

SemCAMS Midstream Competitive Advantages Irreplicable sour Asset footprint gas processing in prolific and Montney and acid gas transfer Duvernay solution plays Facility interconnections Experienced provide and reliable operational operator flexibility & optimization Stable cash Takeaway flows supported optionality by credit-worthy via pipeline, customers truck & rail Montney and Duvernay Focused Midstream Company 5

SemCAMS Midstream Primed for Optimization Canada Gathering & Processing Assets Operational Processing Capacity 1.3 Pipestone ▶ ~1.1 bcf/d operational capacity Pipeline System Bcf/d ▶ 260 mmcf/d under construction Wapiti Operational Pipeline Capacity ▶ Total Operating ~700 miles of natural gas pipelines Capacity (1) ▶ ~60 miles of liquids pipelines Patterson Creek Growth Projects Under Construction ▶ Patterson Creek Plant Phase III - 200 mmcf/d (3Q 2019) Wapiti Pipeline System ▶ Smoke Lake Plant - 60mmcf/d (4Q 2019) Smoke Lake ▶ Pipestone Pipeline (4Q 2019) KA Fox Creek K3 Potential Growth Projects WWC ▶ Montney-to-Market NGL Pipeline (current open season) ▶ Meritage Patterson Creek Plant Phase IV Processing Existing Under Construction Permitted Growth ▶ Pipestone Plant (regulatory permit received) SemCAMS Patterson Creek Proposed Montney-to-Market 1) Includes growth projects under construction 6

Recently Acquired Patterson Creek System Patterson Creek Overview Patterson Creek Footprint ▶ Assets located in prolific liquids-rich Montney play • Situated in the Gold Creek and Karr regions • Basin is top quartile with highly competitive well economics • Producer IRR’s ~30% - 50% on C$50 Ed Par oil / C$2 AECO • Significant stacked resource potential ▶ Acreage Dedication & MVCs provide cash flow stability Patterson • 400,000 acres dedicated Creek Assets • MVCs constitute ~31% of 2018E revenue ▶ Existing 195 mmcf/d processing capacity to double • Phase III Expansion under construction Patterson Creek Overview (estimated completion 3Q 2019) • Expansion adds 200 mmcf/d capacity Gas Processing Existing : 195 mmcf/d ▶ Capacity Under Construction : 200 mmcf/d ~3Q 2019 Producer development plans to support future growth ▶ 101 miles of gas gathering pipelines; 38 miles Service offerings continue to expand as producers Miles of of oil gathering pipelines; 18 miles of emulsion accelerate development Pipelines and gas lift pipelines • Emulsion handling / central delivery batteries business rapidly Residue Gas : TCPL and Alliance growing in Western Canada Interconnects Raw Gas : CNRL ▶ Largest producers are private equity sponsored E&P’s Liquids : Pembina Peace Pipeline highly incentivized to continue delineation of acreage and enhance value 7