Second Quarter 2019 Results August 2, 2019 www.nblmidstream.com - PowerPoint PPT Presentation

Second Quarter 2019 Results August 2, 2019 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 ability of third parties to complete construction of pipelines in which the Partnership holds equity interests 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. This presentation also contains certain non-GAAP measures of financial performance that management believes are good tools for internal use and the investment community in evaluating Noble Midstream’s overall financial performance. Please see slides 20 and 21 for definitions and reconciliations of the non-GAAP financial measures used in this presentation to the most directly comparable GAAP financial measures. www.nblmidstream.com 2

2Q19 and Recent Highlights ▪ In-line or Exceeded Guidance Across All Categories ▪ Delivered Net Adjusted EBITDA ¹ , ² and gathering volumes within guidance on Net Capital Expenditures below expectations ▪ Net Adjusted EBITDA ¹ , ² up 13% versus 2Q18 ▪ Capturing Meaningful Capital Efficiencies in Base Business ▪ Net Capital Expenditures down 59% compared to 2Q18 ▪ Enhanced infrastructure designs, construction processes and contracting strategy ▪ 20% reduction in per well connection costs in 2019 ▪ Record Boe/d Gross Gathering Throughput, Up 54% from 2Q18 and 3% from 1Q19 ▪ Growth in Blanco River and Green River offset by planned decline in Laramie River and Colorado River (100% owned) versus 1Q19 ▪ Continued Peer-leading Distribution Growth and Coverage ▪ 20% DPU increase over 2Q18, 1.4x Distribution Coverage Ratio ¹ ▪ Transformational Permian Equity Investments Progressing to Schedule and Budget ▪ EPIC Crude, EPIC Y-Grade and Delaware Crossing projects accelerate shift to Permian, further bolster growth and add stable, contracted cash flows ▪ Funded more than two-thirds of anticipated 2019 equity investments in 1H19 ▪ EPIC interim crude service online in mid-August 2019 ▪ Anticipate 50% net Adjusted EBITDA ¹ , ² contribution from the Permian exiting 2020 1. Figures are Non-GAAP; see definition and reconciliation in Appendix hereto 2. Net Adjusted EBITDA is Adjusted EBITDA attributable to the Partnership www.nblmidstream.com 3

Second Quarter 2019 Actuals vs. Guidance Actuals 2Q Guidance 2Q v 1Q 2Q v 2Q 2Q18 1Q19 2Q19 ✓ Oil Gathered (MBbl/d) ¹ 158 228 226 217 - 227 -1% 43% Gross Volumes ✓ Gas Gathered (MMcf/d) 206 353 413 395 - 410 17% 100% ✓ MBoe/d ¹ 192 287 295 283 - 295 3% 54% ✓ PW Gathered (MBw/d) 86 142 164 160 - 170 16% 91% ✓ FW Delivered (MBw/d) 160 220 179 140 - 160 -19% 12% Net Income ($MM) 44 63 53 45 - 52 -16% 20% ✓ Gross EBITDA ($MM) ² 65 91 81 76 - 83 -11% 25% ✓ Financials ($MM) ✓ Net Adjusted EBITDA ($MM) ² ,3 49 63 56 55 - 61 -11% 13% ✓ DCF ($MM) ² 38 54 41 39 - 46 -25% 7% ✓ Distribution Coverage Ratio 1.7x 1.9x 1.4x 1.3x - 1.5x ✓ Gross Capex ($MM) ⁴ 155 76 57 80 - 90 -25% -63% ✓ Net Capex ($MM) ⁴ 71 36 29 40 - 50 -19% -59% 1. Includes crude oil sales volumes 2. Figures are Non-GAAP, see definition and reconciliation provided in appendix hereto 3. “Net Adjusted EBITDA” is Adjusted EBITDA attributable to the partnership 4. Excludes additions to investments www.nblmidstream.com 4

Strong 1H19 Capital Performance Enhances Flexibility ▪ Lowering 2019 Organic Net Capital Budget by 23% on 1H19 Performance and Efficiency Net Development Capital Expenditures Gains Trending Materially Lower $MM ▪ Sustainable Savings from Cost Focus, Design 300 Optimization and Improved Contracting Strategy 250 200 ▪ Small changes in third-party activity timing ▪ Realizing Capital Efficiency with Backbone 150 Infrastructure Complete 100 ▪ Focus on well connections, efficiency 50 upgrades, and facility utilization 0 ▪ Lower per well connection capital through 2018 2019E Original 2019E Updated time with customer activity focused on multi- 2019 Capital Highlights and Efficiencies well pad and sister section development Reduction in net development ▪ Completed More Than Two-thirds of 45% capital vs. 2018 Expected 2019 Equity Investment Contributions for EPIC Crude, EPIC Y-Grade, 2019 equity investments > 2/3 and Delaware Crossing complete; on budget ▪ Projects progressing on schedule and within Capital focused on efficient well 65% budget connections ▪ Combined $408 MM YTD, prior to preferred equity Reduction per well connection 20% ▪ Bulk of remaining equity investment capital vs. 2018 anticipated in 3Q19 ▪ Minimal follow-on capital for long-haul EPIC investments www.nblmidstream.com 5

Meaningful 2H19 Catalysts and Expected Gathering Increase ▪ 2H19 Gross Oil and Gas Throughput Anticipated up Nearly 10% and Produced Water up 22% Versus Net EBITDA ¹ 1H19 at Guidance Midpoint 150 $MM 127 - 137 ▪ Supported by long-haul additions (Delaware) +11% 130 118 and additional processing (DJ) 110 ▪ High Visibility Into Growth as 2Q and 3Q Represent 90 Quarters with Most Well Connections 70 ▪ Mix Tailwind with Over 70% of NBL DJ Basin TILS in 2H19 Located in Colorado River DevCo (100% 50 1H19 2H19E Owned) ▪ Third-Party Permian Activity Accelerating ▪ 10-15 wells anticipated in Blanco River in 2H19 Oil and Gas Gathering Produced Water Gathering MBw/d MBoe/d 210 345 200 307 - 330 177 - 197 325 190 +9% 180 305 291 +22% 170 285 153 160 265 150 245 140 130 225 1H19 2H19E 1H19 2H19E 6 1. Figures are Non- GAAP, see definition and reconciliation provided in appendix hereto; “Net Adjusted EBITDA” is Adjusted EBITDA at tributable to the partnership www.nblmidstream.com 6

Quarterly Fluctuations from Fresh Water Segment ▪ 2Q19 Fresh Water Volumes Exceeded the High End of Guidance as Customer Activity was Higher than Anticipated ▪ Gross Fresh Water Volumes Down 19% in 2Q19 Compared to 1Q19 ▪ Reflects delivery to 2.3 completion crews in 2Q19 versus nearly 4 in 1Q19 ▪ Net fresh water delivery volumes were up 27% sequentially with NBL focus in 100% owned Colorado River DevCo ▪ 2H19 Fresh Water Delivery Guidance Reflects Potential Reduction in Year-end Customer Activity ▪ Meaningful De-risking of Segment Through Wells Ranch MVC Which Commenced in 2019 ▪ 50 MBw/d in 2019; 60 MBw/d in 2020-2021 ▪ Mitigates financial impact of lower 2H19 volumes Gross Fresh Water Delivery Volumes and Mix 220 100% 200 180 80% 160 2Q19 frac activity in Colorado 140 60% River DevCo Provides Gathering 120 100 Momentum in 2H19 40% 80 60 20% 40 20 0 0% 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 Gross MBw/d % Colorado River & Laramie River (100% owned by NBLX) www.nblmidstream.com 7