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P A R T N E R S H I P P R E S E N T A T I O N
NYSE QEPM
CAUTIONARY STATEMENTS & NON-GAAP MEASURES
This presentation includes 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. Forward-looking statements can be identified by words such as “anticipates,” “believes,” “forecasts,” “plans,” “estimates,” “expects,” “should,” “will” or other similar expressions. Such statements are based on management’s current expectations, estimates and projections, which are subject to a wide range of uncertainties and business risks. These forward-looking statements include statements regarding the stability and predictability of cash flows of QEP Midstream Partners, LP (QEPM); QEPM’s financial flexibility and strong capital structure and ability to maintain same; quality of QEPM’s assets; potential of drop-down of assets from QEP Resources, Inc. (QEP); plans to pursue third-party acquisition opportunities; increase in throughput by capturing third-party volumes; increase in production at QEP; and stability of QEPM’s fee-based business and plans to focus on such business. Actual results may differ materially from those included in the forward-looking statements due to a number of factors, including weather conditions; global geopolitical and macroeconomic factors; the U.S. federal budget and debt ceiling crisis; acts of terrorism; changes in oil, natural gas and NGL prices; outcome of pending litigation; demand for oil and natural gas storage and transportation services; defaults by large customers; legislative or regulatory changes; actions taken by third-party operators, processors and transporters; and the other risks discussed in QEPM’s filings with the Securities and Exchange Commission, including the Risk Factors section of QEPM’s Registration Statement on Form S-1, as amended, effective August 8, 2013 (QEPM’s Registration Statement). QEPM undertakes no obligation to publicly correct or update the forward-looking statements in this news release, in other documents, or on the website to reflect future events or circumstances. All such statements are expressly qualified by this cautionary statement. Adjusted EBITDA is defined as net income attributable to QEPM’s Predecessor or QEPM before the following items: depreciation and amortization, interest and other income, interest expense and deferred revenue associated with minimum volume commitment payments. Adjusted EBITDA is used as a supplemental financial measure by management and by external users of our financial statements, such as investors and commercial banks, to assess: (1) QEPM’s operating performance as compared to those of other companies in the midstream sector, without regard to financing methods, historical cost basis or capital structure; (2) the ability of QEPM’s assets to generate sufficient cash flow to make distributions to its partners; (3) QEPM’s ability to incur and service debt and fund capital expenditures; and (4) the viability
- f acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities. For a reconciliation
- f QEPM’s Adjusted EBITDA to net income for the three months ended March 31, 2013, please see QEPM’s Registration Statement.
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