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

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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,


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Second Quarter 2019 Results

August 2, 2019

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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.

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2Q19 and Recent Highlights

1. Figures are Non-GAAP; see definition and reconciliation in Appendix hereto 2. Net Adjusted EBITDA is Adjusted EBITDA attributable to the Partnership

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▪ In-line or Exceeded Guidance Across All Categories ▪ Delivered Net Adjusted EBITDA¹,² and gathering volumes within guidance on Net Capital Expenditures below expectations ▪ Net Adjusted EBITDA¹,² 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 Ratio¹ ▪ 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 EBITDA¹,² contribution from the Permian exiting 2020

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Actuals 2Q Guidance 2Q v 1Q 2Q v 2Q 2Q18 1Q19 2Q19 Gross Volumes Oil Gathered (MBbl/d)¹ 158 228 226 217

  • 227
  • 1%

43% Gas Gathered (MMcf/d) 206 353 413 395

  • 410

17% 100% MBoe/d¹ 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% Financials ($MM) Net Income ($MM) 44 63 53 45

  • 52
  • 16%

20% Gross EBITDA ($MM)² 65 91 81 76

  • 83
  • 11%

25% 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%

Second Quarter 2019 Actuals vs. Guidance

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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

✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓

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Strong 1H19 Capital Performance Enhances Flexibility

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▪ Lowering 2019 Organic Net Capital Budget

by 23% on 1H19 Performance and Efficiency Gains

▪ Sustainable Savings from Cost Focus, Design

Optimization and Improved Contracting Strategy

▪ Small changes in third-party activity timing

▪ Realizing Capital Efficiency with Backbone

Infrastructure Complete

▪ Focus on well connections, efficiency

upgrades, and facility utilization

▪ Lower per well connection capital through

time with customer activity focused on multi- well pad and sister section development

▪ Completed More Than Two-thirds of

Expected 2019 Equity Investment Contributions for EPIC Crude, EPIC Y-Grade, and Delaware Crossing

▪ Projects progressing on schedule and within

budget

▪ Combined $408 MM YTD, prior to preferred

equity

▪ Bulk of remaining equity investment

anticipated in 3Q19

▪ Minimal follow-on capital for long-haul EPIC

investments

2019 Capital Highlights and Efficiencies Reduction per well connection capital vs. 2018

45%

Reduction in net development capital vs. 2018

65%

Capital focused on efficient well connections

20%

50 100 150 200 250 300 2018 2019E Original 2019E Updated

Net Development Capital Expenditures Trending Materially Lower

$MM

> 2/3

2019 equity investments complete; on budget

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Meaningful 2H19 Catalysts and Expected Gathering Increase

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291 307 - 330 225 245 265 285 305 325 345 1H19 2H19E

Oil and Gas Gathering

MBoe/d

153 177 - 197 130 140 150 160 170 180 190 200 210 1H19 2H19E

Produced Water Gathering

MBw/d

▪ 2H19 Gross Oil and Gas Throughput Anticipated up

Nearly 10% and Produced Water up 22% Versus 1H19 at Guidance Midpoint

▪ Supported by long-haul additions (Delaware)

and additional processing (DJ)

▪ High Visibility Into Growth as 2Q and 3Q Represent

Quarters with Most Well Connections

▪ Mix Tailwind with Over 70% of NBL DJ Basin TILS in

2H19 Located in Colorado River DevCo (100% Owned)

▪ Third-Party Permian Activity Accelerating ▪ 10-15 wells anticipated in Blanco River in 2H19

118 127 - 137 50 70 90 110 130 150 1H19 2H19E

Net EBITDA¹

$MM

+11% +22% +9%

1. Figures are Non-GAAP, see definition and reconciliation provided in appendix hereto; “Net Adjusted EBITDA” is Adjusted EBITDA attributable to the partnership

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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 0% 20% 40% 60% 80% 100% 20 40 60 80 100 120 140 160 180 200 220

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19

Gross MBw/d % Colorado River & Laramie River (100% owned by NBLX) Gross Fresh Water Delivery Volumes and Mix

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2Q19 frac activity in Colorado River DevCo Provides Gathering Momentum in 2H19

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▪ Financial Focus on Maintaining Healthy Liquidity and Prudent Leverage Through

Construction Period for EPIC and Delaware Crossing Investments

Ended 2Q19 with liquidity of $439 MM

$430 MM remaining revolver capacity plus $350 MM accordion feature ($780 MM total)

▪ 2Q19 Preferred Equity Balance of $99.6 MM for EPIC Crude Pipeline

Reflects $3 MM accrual of quarterly interest payment in leui of cash

$100 MM remaining tranche available through March 2020

▪ Temporary Increase in Annualized Leverage¹ to ~3.9x-4.2x at Year-end 2019

Clear path to ~3x long-term as equity investments contribute meaningfully to the Partnership

Maintain Prudent Financial Framework While Executing Opportunities

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16% 15% 13%-16% 0% 3% 6% 9% 12% 15% 18% 2018 2019E² Long-Term Corporate ROACE1,3 Prudent Use of Balance Sheet Investment Discipline Investment Discipline Conservative Distribution Policy

1. Figures are Non-GAAP; see definition and reconciliation in Appendix hereto 2. Excludes impact from EPIC Crude and EPIC Y-Grade pipeline 3. Return on average capital employed: earnings before interest and taxes divided by (average total assets – average current liabilities); see definition provided in appendix

2.3x ~3x 3.9x-4.2x x 1x 2x 3x 4x 5x 2018 YE2019E Long-Term Year-end Leverage1 1.5x-1.6x >1.3x 2.0x .0x .5x 1.0x 1.5x 2.0x 2.5x 2018 2019E Long-Term Distribution Coverage Ratio 1

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Supporting NBL’s 2019 DJ Basin Program: Mix Tailwind in 2H19

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Robust Growth at Mustang Continued in 2Q19, With Oil and Gas Gathering Throughput up 41% Versus 1Q19

Supported by diversified gas outlets with delivery to 3 processing providers

Planned Sequential Decline in 2Q19 in Colorado River DevCo as Growth in East Pony Was Offset by Decline in Wells Ranch

Fewer well connections in 1H19

Planned CGF maintenance

NBL 2H19 Well Connections Heavily Weighted Toward Colorado River DevCo

Additional gas offload capacity added at Wells Ranch to maximize throughput from mid-2Q19 and 3Q19 well connections

NBL Long Term Development Planning

Significant long-term growth runway with 550+ existing permits

Submitted application for North Wells Ranch CDP, potential for 250 additional permits

Wells Ranch CGF

0% 20% 40% 60% 80% 100% 1Q19 2Q19 3Q19E 4Q19E

NBL 2019 Well Connection Mix

Wells Ranch, East Pony (Colorado River DevCo, 100% Owned) Mustang (Green River DevCo, 25% Owned)

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Third-Party Ramp at Laramie River Expected in 2H19

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Laramie River Throughput Anticipated up >35% Year-over-Year

3Q19 period with most well connections

Additional Third-party Gas Processing Capacity Anticipated in 3Q19

Vast Majority of Activity Focused in Weld County

Driving Capital Synergies Between Black Diamond and Legacy Infrastructure

Focus on Opportunities to Capture Additional Capital Efficient Bolt-on Acreage Remain

Milton Terminal

Black Diamond Gathering Highlights

> 90

MBbl/d

2019E Throughput up from 66 MBbl/d in 2018

+12%

Increase in Dedicated Acreage Since Acquisition

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▪ Blanco River Capital Down Nearly 60% in 2019

  • vs. 2018

▪ Long growth runway with existing facility

capacity

▪ Focus on multi-well pad and row development

▪ 2Q19 Oil and Gas Throughput up 16% Ahead

  • f Planned 2H19 Ramp
  • 2H19 Delaware Basin oil and gas gathering

throughput up over 30% versus 1H19

  • NBL activity timed to match additional

takeaway capacity in 2H19

▪ Trunkline Connecting Billy Miner and Jesse

James CGFs Completed in 2Q19

▪ Will maximize uptime and performance ▪ Capital efficient way to support peak

production from row development

▪ Gathering ~95% of NBL Permian Production in

2019, Compared to ~70% in 2018

Building Blanco River Throughput Momentum as Capital Declines

~60%

20 40 60 80 100 120 140

2018 2019E

Material Decline in 2019 Net Capital Requirements ($MM)

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Meaningful Progress on Transformational EPIC Investments

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Y-Grade Pipeline Crude Oil Pipeline Equity Ownership 15% 30% Specs 700+ miles, 24-inch 650+ miles, 30-inch Capacity 440 MPBD (transportation); 180 MPBD (fractionation) 590 MBPD out of the Permian 200 MBPD incremental out of Eagle Ford In-Service 1Q2020 Interim service online mid-August; permanent service

  • Jan. 2020

NBLX Equity Investment $165-$180 MM $330-$350 MM¹ Permanent Service Milestones ▪ All construction regulatory permits approved ▪ Mainline Phase I, II and III 100% Complete ▪ Delivery of long-lead equipment for greenfield fractionator complete ▪ All construction regulatory permits approved ▪ 30” line pipe 68% delivered, construction ~50% complete; significant synergies with shared Y-Grade ROW ▪ Terminal interconnects and laterals progressing on schedule

1. Prior to preferred financing specific to NBLX’s EPIC Crude Pipeline investment (up to $200 MM commitment)

Interim EPIC Crude Service Online in Mid-August Via EPIC Y-Grade Pipeline

Line fill almost complete and deliveries to Corpus Christi commencing in mid-August

Multiple interconnects in Crane, TX

Several downstream destinations in Corpus Christi completed ▪

Major Milestones Accomplished for On Target Permanent Crude (Jan 2020) and Y-Grade (1Q20) Service

Funded ~70-75% of 2019 anticipated EPIC equity investments

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Continued Buildout of Delaware Intermediate Gathering Platform

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▪ 2Q19 Sequential Volume Decline Reflects Key Volume Commitment Shipper Utilizing Volume Credits Earned in 2018 ▪ Volume matching anticipated to resume in late 2019 ▪ 2019 Trinity River DevCo Revenue and EBITDA Anticipated Flat to Growing YoY ▪ Advantage Connection to EPIC Anticipated in 3Q19 ▪ Strategically Located Asset Expands Infield and Crude Gathering and Transmission Footprint in Southern Delaware Basin to Wink Hub ▪ Total dedicated acres of 192,000 ▪ Meeting Significant Project Milestones: ▪ Wink station 75% complete ▪ Liberty station construction underway ▪ Transportation fees from trunkline to Wink commencing at year-end

Trinity River Revenue ($MM)

2 16 16 2 4 6 8 10 12 14 16 18 2017 2018 2019E

Trinity River Advantage Pipeline JV (50/50 JV with PAA) & Compression Delaware Crossing JV (50/50 JV with Salt Creek Midstream)

Delaware Crossing Wink Station

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+20%

Robust 2019 Financial Expectations

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Benefiting from Increasing Exposure to NBL’s Onshore Program

Third-party Businesses Continue to Increase Growth Runway and Contribution to Overall Business

Driving Significant Organic Capital Efficiency and Scale Benefits of Base Business

Permian facilities in place with capacity for growth

Prudently Fund Growth Projects and Maintain Strong Distribution Coverage Net Adjusted EBITDA¹ Up DPU Growth 4Q19E Annualized Leverage¹

10% to 14% 1.5x - 1.6x ~3.9x - 4.2x

2019 Outlook

Net Development Capital Down

42% to 49%

1. Figures are Non-GAAP; see definition and reconciliation in Appendix hereto

DCF Coverage¹

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2020 Preview and Outlook Through 2022

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Customer Activity Levels Based on Conservative Oil Price Assumption of ~$50/Bbl

Expect 2020 Net Adjusted EBITDA¹ to Exceed $300 MM, Prior to EPIC Contribution

Estimate NBLX’s Share of EPIC Crude and Y-Grade Equity Cash Flows Totaling ~$50-70 MM² Exiting 2020

Additional growth anticipated in 2021 and beyond

Significant Multi-year Cash Flow Growth and Well Positioned for Self- funding Exiting 2020

No Drop-downs Assumed

108 155 223 245-255 300

>350-370

4Q16 Annualized 2017 2018 2019E 2020E Net Adjusted EBITDA¹ ($MM)

2020 Preview

Net Adjusted EBITDA¹, Excluding EPIC Share of EPIC Project Equity Cash Flows² 2020 Exit

1. Figures are Non-GAAP; see definition and reconciliation in Appendix hereto 2. Prior to $200 MM preferred equity investment specific to EPIC Crude Pipeline; assumes refinancing

  • f project debt

3. Assumes $200 MM preferred equity specific to NBLX’s EPIC Crude investment

Represents 63%+ Growth

  • vs. 2018

Organic Outlook Through 2022

20%

Annual DPU Growth

>1.3

Distribution Coverage Ratio¹

~3x

Annualized Leverage1,3 ~3.9x - 4.2x YE 2019E ~3.5x YE 2020E ~3.0x Long-term

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Quarterly Full Year 1Q19A 2Q19A 3Q19E 2018 2019E Gross Volumes Oil Gathered (MBbl/d) 228 226 230 - 240 177 230 – 240 Gas Gathered (MMcf/d) 353 413 425 - 445 239 415 – 425 Oil and Gas Gathered (MBoe/d) 287 295 301 - 314 217 299 – 311 Produced Water Gathered (MBw/d) 142 164 175 - 185 101 165 – 175 Fresh Water Delivered (MBw/d) 220 179 135 - 155 176 145 – 170 Financials ($MM) Net Income 63 53 57 - 66 189 237 – 247 Adjusted Gross EBITDA¹ 91 81 89 - 94 277 355 – 365 Adjusted EBITDA¹ 63 56 59 - 64 223 245 – 255 Distributable Cash Flow¹ 54 41 44 – 46.5 182 190 – 195 Distribution Coverage Ratio ¹,² 1.9x 1.4x 1.4x 2.0x 1.5x – 1.6x Gross Capex³ 76 57 81 - 91 550 $285 – $315 Net Capex ³ 36 29 40 - 50 275 $140 – $160 Equity Investments in Delaware Crossing, EPIC Crude and EPIC Y- Grade 265 143 $570 – $615

Updated 2019 Guidance Detail

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1. Includes Non-GAAP measures; see definition in Appendix 2. Estimates include forecasted DPU growth of 4.7% quarterly, or 20% annual 3. Excludes equity investments

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NBLX Asset Map: DJ Basin

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Black Diamond (54.4%) Laramie River DevCo (100%)

  • Oil Gathering

Area: East Pony Colorado River DevCo (100%)

  • Oil Gathering

San Juan River DevCo (25%)

  • FW Delivery

Area: Mustang Green River DevCo (25%)

  • Oil Gathering
  • Gas Gathering
  • PW Gathering
  • FW Delivery

Area: Wells Ranch Colorado River DevCo (100%)

  • Oil Gathering
  • Gas Gathering
  • PW Gathering
  • FW Delivery

Area: Greeley Crescent Laramie River DevCo (100%)

  • Oil Gathering
  • PW Gathering
  • FW Delivery

Area: Bronco Gunnison River DevCo (5%)

  • Oil Gathering
  • PW Gathering
  • FW Delivery
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NBLX Asset Map: Delaware Basin

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Area: Delaware Basin Blanco River DevCo (40%)

  • Oil Gathering
  • Gas Gathering
  • PW Gathering

Trinity River DevCo (100%)

  • HP Gas Compression

Advantage JV (50%) Trinity River DevCo (100%)

  • Oil Transmission

Map excludes 13k 3rd-party acres dedicated for oil, gas and produced water gathering in Blanco River.

Delaware Crossing (50%) Dos Rios DevCo (100%)

  • Oil Gathering and Transmission

EPIC Crude(30%) & EPIC Y-Grade (15%) Dos Rios DevCo (100%)

  • Oil and NGL Transmission
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NBLX Structure

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Noble Midstream Services, LLC Public Unitholders (LP) White Cliffs Pipeline L.L.C. ROFR/Wholly Owned Assets:

  • East Pony Gas Gathering
  • East Pony Gas Processing
  • Eagle Ford Shale Midstream
  • Additional DJ Acreage
  • Additional Delaware Basin Services

Noble Energy NYSE: NBL Noble Midstream Partners LP NYSE: NBLX Noble Midstream GP LLC 45.4% Limited Partner Interest 100% 3.33% Non-Operating Membership Interest 54.6% Limited Partner Interest 100% Non-Economic General Partner Interest 50% Green River San Juan River Gunnison River Colorado River Laramie River Trinity River Blanco River Controlling Interest 100% 100% 100% 5% 25% 25% 40% 75% 95% Advantage JV 60% 75% Black Diamond 54.4% Dos Rios 100% Delaware Crossing JV 50% EPIC Crude JV EPIC Y-Grade JV 30% 15% Non-Controlling Interest

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Non-GAAP Financial Measures

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This presentation includes Adjusted EBITDA, Distributable Cash Flow, Distribution Coverage Ratio, Annualized Leverage Ratio and ROACE, all of which are non-GAAP measures which may be used periodically by management when discussing our financial results with investors and analysts. As a result of our increased investment in midstream entities during first quarter 2019, we have refined our presentation of Adjusted EBITDA to adjust for items with respect to our unconsolidated

  • investments. We now define Adjusted EBITDA as net income before income taxes, net interest expense, depreciation and amortization, transaction expenses, unit-based compensation and certain
  • ther items that we do no view as indicative of our ongoing performance. Additionally, Adjusted EBITDA reflects the adjusted earnings impact of our unconsolidated investments by adjusting our

equity earnings or losses from our unconsolidated investments to reflect our proportionate share of their EBITDA. Prior period Adjusted EBITDA has been reclassified to conform to the current period presentation. Adjusted EBITDA is used as a supplemental financial measure by management and by external users of our financial statements, such as investors, industry analysts, lenders and ratings agencies, to assess:

  • ur operating performance as compared to those of other companies in the midstream energy industry, without regard to financing methods, historical cost basis or capital structure;
  • the ability of our assets to generate sufficient cash flow to make distributions to our partners;
  • ur ability to incur and service debt and fund capital expenditures;
  • and the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.

As a result of our increased investment in midstream entities during first quarter 2019, we have also refined our presentation of Distributable Cash Flow to adjust for items with respect to our unconsolidated investments. We now define Distributable Cash Flow as Adjusted EBITDA plus distributions received from our unconsolidated investments less our proportionate share of Adjusted EBITDA from unconsolidated investments, estimated maintenance capital expenditures and cash interest paid. Prior period distributable cash flow has been reclassified to conform to the current period presentation. Distributable Cash Flow is used by management to evaluate our overall performance. Our partnership agreement requires us to distribute all available cash on a quarterly basis, and Distributable Cash Flow is one of the factors used by the board of directors of our general partner to help determine the amount of available cash that is available to our unitholders for a given period. We define Distribution Coverage Ratio as Distributable Cash Flow divided by total distributions declared. The Distribution Coverage Ratio is used by management to illustrate our ability to make our distributions each quarter. We define ROACE as earnings before interest and taxes divided by (average total assets – average current liabilities). ROACE is used by management to measure the efficiency of the utilization of the capital that we employ. We define Annualized Leverage Ratio as total debt divided by quarterly adjusted EBITDA attributable to the Partnership, annualized for four quarters. Annualized Leverage Ratio is used by management to assess our ability to incur and service debt and fund capital expenditures. We believe that the presentation of Adjusted EBITDA, Distributable Cash Flow, Distribution Coverage Ratio, Annualized Leverage Ratio and ROACE provide information useful to investors in assessing our financial condition and results of operations. The GAAP measure most directly comparable to Adjusted EBITDA, Distributable Cash Flow, Distribution Coverage Ratio, Annualized Leverage Ratio and ROACE is Net Income. Adjusted EBITDA, Distributable Cash Flow, Distribution Coverage Ratio, Annualized Leverage Ratio and ROACE should not be considered alternatives to net income or any other measure of financial performance or liquidity presented in accordance with GAAP. Adjusted EBITDA, Distributable Cash Flow, Distribution Coverage Ratio, Annualized Leverage Ratio and ROACE exclude some, but not all, items that affect net income, and these measures may vary from those of other companies. As a result, Adjusted EBITDA, Distributable Cash Flow, Distribution Coverage Ratio, Annualized Leverage Ratio and ROACE as presented herein may not be comparable to similarly titled measures of other companies. Noble Midstream does not provide guidance on the reconciling items between forecasted Net Income, forecasted Adjusted EBITDA, forecasted Distributable Cash Flow and forecasted Distribution Coverage Ratio due to the uncertainty regarding timing and estimates of these items. Noble Midstream provides a range for the forecasts of Net Income, Adjusted EBITDA, Distributable Cash Flow and Distribution Coverage Ratio to allow for the variability in timing and uncertainty of estimates of reconciling items between forecasted Net Income, forecasted Adjusted EBITDA, forecasted Distributable Cash Flow and forecasted Distribution Coverage Ratio. Therefore, the Partnership cannot reconcile forecasted Net Income to forecasted Adjusted EBITDA, forecasted Distributable Cash Flow or forecasted Distribution Coverage Ratio without unreasonable effort. In addition to Net Income, the GAAP measure most directly comparable to Adjusted EBITDA and Distributable Cash Flow is net cash provided by operating activities. Adjusted EBITDA and Distributable Cash Flow should not be considered alternatives to net income, net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Due to the forward-looking nature of net cash provided by operating activities, management cannot reliably predict certain of the necessary components of the most directly comparable forward-looking GAAP measures, such as future impairments and future changes in working capital. Accordingly, Noble Midstream is unable to present a quantitative reconciliation of the aforementioned forward-looking non-GAAP financial measures to net cash provided by operating activities. Amounts excluded from these non-GAAP measures in future periods could be significant.

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Non-GAAP Reconciliation

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Q3 2019E FY 2019E ($ thousands) Q1 2018 Q2 2018 Q3 2018 Q4 2018 2018 Q1 2019 Q2 2019 Low High Low High Reconciliation from Net Income Net Income 39,136 44,442 48,703 56,595 188,876 63,255 53,198 57,000 66,000 237,031 247,031 Add: Depreciation and Amortization 11,329 16,371 18,376 19,238 65,314 19,351 20,285 21,000 21,000 83,000 83,000 Interest Expense, Net of Amount Capitalized 1,033 1,681 3,506 4,272 10,492 5,230 2,325 4,000 4,000 17,000 17,000 Income Tax Provision 74 183 (94) 58 221 107 91 100 100 400 400 Transaction and Integration Expenses 5,969 1,280 301 52 7,602 57 12 69 69 Unit-Based Compensation and Other 321 393 343 1,335 2,392 545 466 700 700 2,500 2,500 Proportionate Share of Equity Method Investment EBITDA Adjustments 704 638 579 (221) 1,700 2,003 4,570 4,600 4,600 15,000 15,000 Adjusted EBITDA 58,566 64,988 71,714 81,329 276,597 90,548 80,947 89,000 94,000 355,000 365,000 Less: Adjusted EBITDA Attributable to Noncontrolling Interests 3,585 15,691 11,784 22,393 53,453 27,698 25,326 30,000 30,000 110,000 110,000 Adjusted EBITDA Attributable to Noble Midstream Partners LP 54,981 49,297 59,930 58,936 223,144 62,850 55,621 59,000 64,000 245,000 255,000 Plus: Distributions from Equity Method Investments 2,255 1,265 2,799 2,900 9,219 6,659 285 2,000 2,000 11,000 12,000 Less: Proportionate Share of Equity Method Investment Adjusted EBITDA 2,566 3,571 3,353 4,090 13,580 3,031 1,459 1,000 5,000 7,000 15,000 Cash Interest Paid 2,407 4,030 4,728 5,065 16,230 6,558 7,991 10,000 9,000 35,000 34,000 Maintenance Capital Expenditures 4,540 4,772 5,406 5,721 20,439 5,955 5,815 6,000 5,500 24,000 23,000 Distributable Cash Flow of Noble Midstream Partners LP 47,723 38,189 49,242 46,960 182,114 53,965 40,641 44,000 46,500 190,000 195,000 Distribution 21,048 22,306 23,620 25,613 92,587 27,792 30,057 32,400 32,400 125,148 125,148 Distribution Coverage Ratio 2.3 1.7x 2.1x 1.8x 2.x 1.9x 1.4x 1.4x 1.4x 1.5x 1.6x

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1001 Noble Energy Way Houston, TX 77070

Contact Information

Megan Repine Investor Relations megan.repine@nblmidstream.com 832.639.7380