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Analyst Day
Water Solutions Overview
December 17, 2018
This presentation includes “forward looking statements” within the meaning of
federal securities laws. All statements, other than statements of historical fact,
included in this presentation are forward looking statements, including
statements regarding the Partnership’s future results of operations or ability to
generate income or cash flow, make acquisitions, or make distributions to
unitholders. Words such as “anticipate,” “project,” “expect,” “plan,” “goal,”
“forecast,” “intend,” “could,” “believe,” “may” and similar expressions and
statements are intended to identify forward-looking statements. Although
management believes that the expectations on which such forward-looking
statements are based are reasonable, neither the Partnership nor its general
partner can give assurances that such expectations will prove to be correct.
Forward looking statements rely on assumptions concerning future events
and are subject to a number of uncertainties, factors and risks, many of which
are outside of management’s ability to control or predict. If one or more of
these risks or uncertainties materialize, or if underlying assumptions prove
incorrect, the Partnership’s actual results may vary materially from those
anticipated, estimated, projected or expected.
Additional information concerning these and other factors that could impact
the Partnership can be found in Part I, Item 1A, “Risk Factors” of the
Partnership’s Annual Report on Form 10-K for the year ended March 31,
2018 and in the other reports it files from time to time with the Securities and
Exchange Commission.
Readers are cautioned not to place undue reliance on any forward-looking
statements contained in this presentation, which reflect management’s
opinions only as of the date hereof. Except as required by law, the
Partnership undertakes no obligation to revise or publicly update any forward-
looking statement.
Company Information
Contact Information
Forward Looking Statements NGL Energy Partners LP
(1) Market Data and Unit Count as of 12/14/2018. (NGL-PB ticker for Class B Preferred Units)
(2) Balance Sheet Data as of 9/30/2018, Market Capitalization and Enterprise Value include Preferred Equity
Corporate Headquarters
NGL Energy Partners LP
6120 South Yale Avenue, Suite 805
Tulsa, Oklahoma 74136
Website
www.nglenergypartners.com
Investor Relations
Contact us at (918) 481-1119
or e-mail us at
InvestorInfo@nglep.com
NYSE Ticker NGL
Unit Price (1) 10.20 $
Market Capitalization (1)(2) 1.69 $ Billion
Enterprise Value (1)(2) 4.31 $ Billion
Yield (1) 15.29%
2
Agenda
Water Solutions Operations & Overview
NGL Operations & Strategy
Integrated Platform: Services by Region
Contracting Strategy & Operational Efficiencies
Pinedale Anticline
DJ Basin
Eagle Ford Basin
Midland Basin
Delaware Basin
Investment Thesis & Valuation Observations
3
Water Solutions Operations
& Overview
4
1) During the process of drilling or fracking for oil and gas, fresh water is injected (along with other additives) into
the hydrocarbon reservoir to increase pressure allowing the oil and gas to be pumped to the surface.
2) The hydrocarbon reservoirs are also filled with salty water which gets pumped to the surface alongside the oil
and gas. This water is known as “produced water” or brine.
3) The water disposal business disposes of the flow back and produced water by injection into disposal wells
which are wells drilled to specific porous underground formations (deeper than oil or gas producing wells)
which have ample space for the water to disperse
4) NGL generates revenue by providing this disposal service to producers allowing them to continue their drilling
or fracking plans
What is Salt Water Disposal?
5
When an oil or natural gas
well is hydraulically fractured,
typically several million
gallons of water (along with
sand and other additives) are
pumped into a hydrocarbon
bearing rock formation deep
in the ground. Some of this
water will remain locked in
the formation, but some will
come back up through the
well to the surface. The water
is known as “flowback.”
When oil or natural gas is
produced, salty water is
typically produced
alongside it, which is
known as “produced
water” or brine.
Flow back Water Ongoing Produced Water
The Disposal Process
6
Gun Barrel Tanks
Water Tanks
Skim Oil Tanks
Water is piped to well and injected
via Horizontal pumps 0
Oil is picked up and sold
Sand Tanks
Barriers to Entry
Land Owners & Royalties
Long-term Contracts
Local Relationships
Location & Geology Size & Scale
Regulatory
7
Efficiencies of 3rd Party Water Infrastructure Provider
Exploration and Production expertise
Higher cost per BBL
Smaller initial build-out
Lower utilization
Higher volume volatility
Minimal Commercial efforts
Salt Water Disposal expertise
Lower cost per BBL
Larger initial buildout
Higher utilization rates
Lower volume volatility
More efficient capital utilization
Connect disparate acreage blocks
Market competitive rates
Substantial redundancy over significant
territory
Seismic expertise and monitoring
Water Midstream Providers Offer Capital Savings, Operational Efficiencies, and Surety of Disposal to Operators
Producer Owned Water Disposal 3RD Party Water Disposal Vs.
8
New Disposal Facility Development
1. Determine Location for
new facility or well based
on customer needs and
production
2. Consider needs of truck
bay or if new facility is
based solely on piped
volumes
3. Purchase land when
possible to eliminate
royalty and land owner
leverage (risk)
4. Obtain required permits
5. Notify all producers in the
area of plans and
contract as much volume
as possible
Land Purchase and
Permitting Well Development Operational
~$100,000-$500,000 ~$1.5-$2.0 million
1. Move in rig and drill to
required depth (8-12
days in TX, 90 days in
NM)
2. Conduct step-rate test to
ensure well capacity (1-3
days)
3. Order appropriate
injection pumps as
determined by capacity
1. Obtain station power from
local utility
2. Ramp up injection pressure
and continue to monitor
3. Maintain all compliance
requirements and inspections
4. Continue to increase
utilization with additional
pipelines
5. Continue to market facility
Total time to Completion: ~4-6
months + permit approval
Total Investment: ~$4.6-7.5
million
~60-90 days + permit approval ~1-3 weeks
Note: Typical for West Texas Disposal Facility
Surface Development
~$3.0-$5.0 million
1. Order all tanks required
(6-8 week lead time)
• Sand
• Gun-barrel
• Crude Oil
• Water Storage
2. Complete dirt work
3. Assemble tanks, pumps,
and pipelines
4. Build containment walls
5. Initial electrical
installation
~2-3 months
9
Oil Sub-Play Break evens
Source: Wall Street research.
Note: Highlighted sub-plays reflect areas served by NGL’s saltwater disposal assets: blue – Delaware, red – Midland, green – Eagle Ford, yellow – DJ.
1. Analysis assumes half-cycle economics, 30% before tax IRRs, and 20% well productivity gains.
Breakeven Oil Price (1)
$31.26
$31.61
$31.99
$32.33
$33.35
$33.45
$33.82
$34.18
$34.20
$34.42
$34.83
$35.72
$35.86
$36.14
$36.65
$37.48
$37.61
$38.26
$38.28
$39.65
$39.98
$40.15
$40.48
$40.72
$41.01
$41.86
$41.92
$42.14
$42.54
$43.36
$46.68
$46.69
$47.81
$48.10
$48.41
$48.52
$53.21
$55.02
$56.30
$60.77
$61.81
$65.87
$68.21
$75.70
$76.44
$82.48
$0.00 $20.00 $40.00 $60.00 $80.00 $100.00
W. Howard County - Wolfcamp A
STACK Meramec - Over-Pressured Oil
S. Delaware Basin - Reeves Wolfcamp A
Core Midland - Wolfcamp A&B
N. Delaware Basin - Avalon / Leonard
N. Delaware Basin - Wolfcamp XY
Core Midland - Wolfcamp C
Core Midland - Lower Spraberry
DJ Basin - Wattenberg Core XRL
Western Glasscock - Lower Spraberry
N. Delaware Basin - 1st Bone Spring
STACK - Merge
W. Howard County - Lower Spraberry
N. Delaware Basin Culberson Upper Wolfcamp
Western Glasscock Wolfcamp A&B
Bakken - Core
S. Delaware Basin - Ward Wolfcamp A
East Merge - Woodford Oil
Eagle Ford - Karnes Trough
SCOOP Woodford Condy
STACK Meramec - Normal-Pressured Oil
Midland East Glasscock - Wolfcamp A&B
S. Delaware Basin Ward - Wolfcamp B
SCOOP Oil
DJ Basin - Wattenberg Extension XRL
DJ Basin - Wattenberg Core SRL
N. Delaware Basin - NM Bone Spring
Eagle Ford - Black Oil
Bakken - Three Forks
DJ Basin - Northeast Colorado SRL
Anadarko Basin - Oswego
Cleveland
Powder River Basin - Oil
S. Delaware Basin Ward - 3rd Bone Spring
S. Delaware Basin - 2nd Bone Spring
Eagle Ford Maverick Basin - Condensate
Uinta - Green River Vt.
Southern Midland Ozona - Wolfcamp A&B
DJ Basin - Wattenberg Extension SRL
Mississippian Lime
Bakken - None Core
Eagle Ford - East Texas Eaglebine
Utica Shale - Condensate Core
Tuscaloosa Marine Shale
Granite Wash
Uinta Basin - Hz.
Bottom
Quartile
Basin Map
Shale Basin Outlines
Sub Plays
Top
Quartile
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
1
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
NGL’s water assets serve some of the most productive and
economically resilient shale formations in the lower 48
10
1,248 1,164
1,081 945
764 762 733
580 445
0
200
400
600
800
1,000
1,200
1,400
1,600
Boe/d Max Mo.boepd Max Mo.boe20pd
155 150
125 122
104 101 93
64 56
20
40
60
80
100
120
140
160
180
MBoe
6 mos. Cum MBOE 6 mos. Cum MBOE20:120.3x
18.8x 17.9x
15.2x 14.1x 13.9x
11.6x 11.4x
7.7x
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
18.0x
20.0x
22.0x
11
NGL
Key
Region
Macro Trends in Our Basins
Commentary
Well recoveries in the Delaware are dominating
the US unconventional arena despite a lower
percentage of long laterals when compared to
other more mature basins
Eagle Ford Karnes Trough, Delaware, and DJ
basins dominate economic results emerging from
optimum well deliverability relative to capex
required unlocking rapid cost recoveries
2016+ Initial Rates by Basin (2)
Lat. Length: 5,768 5,542 6,673 5,765 9,295 8,173 6,004 6,023 4,514
Cost Recovery Efficiency (1) 2016+ 6 Month Cumulative by Basin (2)
Note: As of Q1 ‘18. Well performance (IPs and 6 month cums) per state record data from Drillinginfo; D&C guided through public disclosures.
0.03
0.13
0.14
0.27
0.32
0.39
0.41
0.44
0.69
0.75
1.16
2.02
2.03
4.42
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0
Barnett
Powder River
Appalachia
Granite Wash
ARKLATX
Piceance
Bakken
Central Basin
Eagle Ford
DJ
Haynesville
Scoop-Stack
Midland
Delaware
12
Several basins receiving major capital deployment, some achieve more wells or lateral footage relative to others, but US
L48 unconventional arena is definitively driving large activity levels
Operators are aggressively developing their assets, facilitating a ramp in future volumes and driving demand for disposal
services and fresh water in several basins
Delaware basin not only carries the most rigs in the US Lower 48, but it deploys them efficiently as well
Ranks at the top across several activity metrics while operators keep improving drilling results
Lateral footage is expected to keep climbing as drilling days further compress and lateral lengths keep expanding
Midland, Delaware, Eagle Ford, Bakken, and DJ achieve the most lateral footage unlocked by efficient rig utilization
1. Source: DrillingInfo 2. Between January 2017 and June 2018.
NGL’s Assets are in the Strongest Basins NGL’s Assets are located in the Strongest Basins
0.02
0.55
0.89
1.30
1.41
3.23
3.99
8.38
9.26
13.89
14.55
17.10
19.06
24.50
0 5 10 15 20 25 30
Piceance
Barnett
Central Basin
Powder River
Granite Wash
Haynesville
ARKLATX
Scoop-Stack
DJ
Bakken
Appalachia
Delaware
Eagle Ford
Midland
2017+ Footage Drilled (MM ft) (1)(2) 2017+ Footage Relative to Basin Size (1)(2) Rigs / 100k Acres (1)
11
33
69
186
234
294
300
682
993
1,378
1,523
2,389
2,635
2,841
0 500 1,000 1,500 2,000 2,500 3,000
Piceance
Barnett
Powder River
ARKLATX
Central Basin
Granite Wash
Appalachia
Haynesville
Bakken
Eagle Ford
Scoop-Stack
DJ
Midland
Delaware
NGL Operations & Strategy
13
14
Water Disposal Recycling & Freshwater Solids Solutions Water Pipelines
~134 completed SWD wells with
over 3,200,000 BPD of total
permitted capacity spanning:
Pinedale Anticline (WY)
DJ (CO)
Eagle Ford (TX)
Midland (TX)
Delaware (TX)
24x7 operations at most locations
1 water recycling facilities with
65,000 BPD of total capacity
Recycling opportunities in
Delaware Basin
Over 60 million barrels of water
recycled and discharged since
inception
11.6 million barrels per year of
freshwater rights in New Mexico
23 million barrels per year of
freshwater capacity in Texas
8 solids disposal facilities with
60,000 BPD of total capacity in
Texas
2 solids facilities in Colorado
Solids Processing Facility (C6)
Solids Slurry Injection (C9)
Provides producers with in-field
disposal alternative for Gels, High
Solids Content Water, Water and
Oil-Based Mud, and Tank Bottoms
2 landfill facilities in permitting
stages in New Mexico
~100 miles of water pipelines
owned by NGL plus > 75 miles
under development
>100 miles of water pipelines
owned by producers
Currently disposing of > 404,000
BPD of wastewater via pipelines
NGL is the largest wastewater midstream company in the United States
– NGL’s integrated footprint spans 5 basins and multiple wastewater services
– Over 500 employees dedicated to Water Solutions
Full Service Water Platform
Water Disposal(1) Water Supply Solids Solutions Water Pipelines Land Assets
Anticline /
Pinedale (WY)
DJ Basin
(CO)
Midland Basin
(TX)
Delaware Basin
(TX)
Eagle Ford
Basin (TX)
1 well plus multiple
wells in development
with pipelines
Acquired 2,479 acres
north of the Anticline
Facility for future SWD
and pipeline
development
65 KBPD water
recycling facility
Ability to return water
for fracking or
discharge into river
95% of water piped
Developing additional
pipelines
28 wells at 14 facilities
467 KBPD permitted
disposal capacity
74% of wells are on
owned land with no
royalties
Previously deployed
recycling in DJ for a
major E&P operator
Capacity was 20
KBPD
Installing bidirectional
pipeline with reuse
capabilities
Solids processing at
C6
Solids slurry injection
at C9
34% of water piped
Developing additional
pipelines including a
bidirectional system
with reuse capabilities
15 wells at 15 facilities
400 KBPD of
permitted disposal
capacity
100% of wells are on
owned land with no
royalties
31% of water piped
50 wells at 34 facilities
1.37 MMBPD of
permitted disposal
capacity
70% of wells are on
owned land with no
royalties
123,000 acres of New
Mexico ranch land
acquired in 2018
11.6 MM bbls/year
freshwater rights in
NM
23 MM bbls/year
freshwater capacity in
TX
4 solids slurry
injection wells
60% of water piped
> 50 miles completed
pipelines plus ~75 miles
in development
37 wells at 25 facilities
916 KBPD permitted
disposal capacity
65% of wells are on
owned land with no
royalties
NGL has exclusive
development
agreement on an West
Texas Ranch
4 solids slurry
injection wells
17% of water piped
Existing and under
construction pipelines
Services by Region
15 (1) Excludes 3 wells at 2 facilities with 60 KBPD of capacity in the Granite Wash (Wheeler and Canadian, Texas)
16
Targeting largest producers and best credit in core
operating areas
MVCs and acreage dedications are primary contract
structures with targeted terms in excess of 5 years
Offer pipeline construction, redundancy and
interconnectivity
Multiple service provider through integrated platform
NGL’s Contracting Strategy
Key Customers
MVC
Acreage Dedication
Pipeline Agreement
Service Agreement
Va
luati
on
Contract Type Initial Term
1) Producer A MVC 5 Years
2) Producer B MVC with Fixed
Monthly Pipeline Fee 5 Years
3) Producer C Acreage Dedication Life of Lease
4) Producer D Acreage Dedication &
Pipeline Agreement 10 Years
5) Producer E
Central Facility
Dedication & Pipeline
Agreement
10 Years
New Picture
28
18
29
138
17
16
17 7
20
Total Piped Water (Excludes Bakken)
59 KBPD 213 KBPD 404 KBPD
9/30/16 9/30/17 9/30/18
Piped % of Total
Water (Excludes Bakken)
12% 32% 41%
Piped Water by
Region (KBPD)
Piped Water Trends
Six Months Ending September 30
($ in Millions) 2016 2017 2018 CAGR
KBPD Water 498 676 1,040 44%
KBPD Oil 1.8 2.6 3.5 40%
Oil Skim % 0.36% 0.38% 0.33% -3%
Fixed Opex/BBL 0.18$ 0.14$ 0.11$ -22%
Variable Opex/BBL 0.28$ 0.26$ 0.24$ -7%
Total Opex/BBL 0.46$ 0.39$ 0.35$ -13%
Operating Efficiencies
18
NGL has decreased its Total Opex/BBL
by 13% since FY17
Operating Leverage
– As volumes increased at a 44%
CAGR, NGL’s Fixed Opex only
increased by 12% on an absolute
basis
Reduced operating expense will offset
expected decline in skim oil %
– Skim oil % will decline as more
volumes are transported via piped
NGL is deploying additional cost
savings initiatives around Chemicals,
R&M, Labor, Supplies and Overhead
Costs
KBPD - Oil 2018 2019 2020 2021 2022
DJ 262 290 357 384 380
Eagle Ford 1,325 1,408 1,615 1,817 1,924
Permian 3,338 3,573 3,965 4,286 4,599
Total KBPD - Oil 4,925 5,271 5,937 6,487 6,904
Water to Oil Ratio 2018 2019 2020 2021 2022
DJ 1.0x 1.0x 1.0x 1.0x 1.0x
Eagle Ford 1.0x 1.0x 1.0x 1.0x 1.0x
Permian 3.5x 3.5x 3.5x 3.5x 3.5x
WAVG Water to Oil Ratio 2.7x 2.7x 2.7x 2.7x 2.7x
KBPD - Water 2018 2019 2020 2021 2022
DJ 262 290 357 384 380
Eagle Ford 1,325 1,408 1,615 1,817 1,924
Permian 11,683 12,505 13,876 15,001 16,098
Total KBPD - Water 13,270 14,203 15,848 17,202 18,402
19
Estimated Produced Water Volumes by Basin
Projections demonstrate the water disposal growth potential in the Permian basin
Note: forecasts are for conceptual illustration purposes
20
Example Inputs & Metrics Incremental EBITDA Sensitivty Matrrix
Incremental KBPD 100 15.0$ 50 100 150 200 250 300 350
Avg Disposal Fee 0.50$ 35$ 6.7$ 13.3$ 20.0$ 26.6$ 33.3$ 40.0$ 46.6$
40$ 6.9$ 13.9$ 20.8$ 27.7$ 34.7$ 41.6$ 48.5$
Avg Oil Skim % 0.30% 45$ 7.2$ 14.4$ 21.6$ 28.8$ 36.0$ 43.3$ 50.5$
Effective Oil Price 50$ 50$ 7.5$ 15.0$ 22.4$ 29.9$ 37.4$ 44.9$ 52.4$
Oil Revenue/BBL 0.15$ 55$ 7.8$ 15.5$ 23.3$ 31.0$ 38.8$ 46.5$ 54.3$
60$ 8.0$ 16.1$ 24.1$ 32.1$ 40.2$ 48.2$ 56.2$
Total Revenue/BBL 0.65$ 65$ 8.3$ 16.6$ 24.9$ 33.2$ 41.5$ 49.8$ 58.1$
Variable Opex/BBL 0.24$
EBITDA/BBL 0.41$
EBITDA/Yr in $MM's 15.0$
Incremental Volumes in KBPD
Effe
ctiv
e O
il P
rice
100 KBPD increase in utilization adds an estimated $15MM in incremental EBITDA
Assumes variable costs remain consistent with 1H-FY19 results and no incremental fixed costs are incurred
Incremental Capacity Utilization & EBITDA
Note: example inputs are for conceptual illustration purposes
Example Inputs & Metrics Incremental EBITDA Sensitivity Matrix
NGL’s Seismicity Management Program
• NGL Management is closely monitoring seismic activity and has been working with regulators in all
areas of operations (TX, NM, and CO) as well as in Oklahoma to better understand and minimize the
impact of water disposal on the environment
• Seismic monitors installed to monitor commercial injection wells
• Interpretation of seismic data conducted by qualified independent contractor
• Geologist on staff that monitors seismic and works with GeoEnergy Monitoring Systems, Inc. (and
others if applicable), has installed its own seismic stations as well as using public info (TexNet) to
monitor recent activity and comparisons to historical data.
21
Seismicity in Delaware Basin
Magnitude 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Total
2 4 7 7 11 8 5 42
2.1 5 1 9 12 7 8 14 17 73
2.2 3 2 2 9 9 12 10 6 53
2.3 1 1 2 2 4 6 9 10 35
2.4 1 1 2 4 5 2 4 19
2.5 1 1 2 4 4 3 10 1 26
2.6 2 4 2 2 10 6 3 29
2.7 1 4 3 2 7 2 19
2.8 2 1 1 1 2 7
2.9 1 1 1 1 3 7
3 1 1 2 3 7
3.1 1 1 1 3
Total 11 10 32 46 41 66 63 51 320
2017 2018
• 320 earthquakes over 2.0
magnitude in the focus area
since January 2017
• The vast majority of the activity
has centered near the town of
Pecos, TX
• No seismic activity noted in
southern New Mexico since
2012
Source: TexNet Earthquake Catalog 1/1/17 - 12/14/18; USGS 22
23
Pinedale Anticline (WY)
Anticline Analytics
Volume Trends (KBPD) Strategy
Selected Key Customers
September Volumes
1) Increased horizontal fracking will greatly extend
the life of the field
2) Acquired royalty free land and developing
additional disposal wells and pipeline assets
3) Continue to optimize and reduce cost structure
Gross Margin and Opex per BBL Trends(1)
(1) Gross Margin per BBL includes skim oil revenue. 24
$-
$2.00
$4.00
$6.00
2015 2016 2017 2018 2019 YTD
Gross Margin per BBL Operating Expense per BBL
25
DJ Basin (CO)
26
DJ Basin Operating Activity
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1.0
0
100
200
300
400
500
600
700
800
900
20
12
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
13
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
14
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
15
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
16
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
17
Q1
20
17
Q2
20
17
Q3
20
17
Q4
20
18
Q1
20
18
Q2
WO
R, B
bl/B
bl
Mb
oe20/d
Basin Production WOR
Source: DrillingInfo and EIA.
DJ Basin Active Rigs
Lateral Footage and Production per Rig
0
200
400
600
800
1,000
1,200
1,400
1,600
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
20
12
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
13
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
14
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
15
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
16
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
17
Q1
20
17
Q2
20
17
Q3
20
17
Q4
20
18
Q1
20
18
Q2
Bo
e20/d
/rig
Late
ral
Fo
ota
ge
Gas Condensate Eastern Extension
Jubilee Hereford
North Volatile Oil Nunn Volatile Oil Wet Gas
CO
WY NE
UT
Highpoint (5) Bonanza Creek (2) Extraction (2) SRC (2)
Noble (2) PDC (3) EOG (2)
Anadarko (4) Crestone (2) Great Western (2) Others (3)
Daily Production and WOR
Basin Production Lat. Footage Drilled
27
Completed
In Development
DJ Basin Assets
HIGHPOINT
DJ Basin Analytics
Volume Trends (KBPD) Strategy
Long-Term, High-Quality, Creditworthy Customers
September Volumes
1) Continue to develop new pipelines including a bi-
directional trunk line (produced water to the SWD
and treated water back to the central facility)
2) Increase pipeline volumes as a percentage of total
disposal volumes
3) Continue to increase long-term acreage dedication
commitments (currently ~90% of total volumes)
• Dedications range from 5 years to “life of
lease”
4) Reduce operating expenses through automation
Gross Margin and Opex per BBL Trends(1)
$-
$0.60
$1.20
$1.80
2015 2016 2017 2018 2019 YTD
Gross Margin per BBL Operating Expense per BBL
28 (1) Gross Margin per BBL includes skim oil revenue.
29
Eagle Ford Region (TX)
Eagle Ford Basin Operating Activity
Daily Production and WOR
Lateral Footage and Production per Rig
0
500
1,000
1,500
2,000
2,500
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
20
12
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
13
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
14
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
15
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
16
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
17
Q1
20
17
Q2
20
17
Q3
20
17
Q4
20
18
Q1
20
18
Q2
Bo
e20/d
/rig
Late
ral
Fo
ota
ge
0.0
0.5
1.0
1.5
2.0
2.5
0
500
1,000
1,500
2,000
2,500
20
12
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
13
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
14
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
15
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
16
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
17
Q1
20
17
Q2
20
17
Q3
20
17
Q4
20
18
Q1
20
18
Q2
WO
R, B
bl/B
bl
Mb
oe20/d
Basin Production WOR
Volatile Oil
Oil
Gas Condensate
Gas
TX
NMOK AR
Eagle Ford Basin Active Rigs
Wildhorse (3) Marathon (4) Carrizo (4)
EOG (11) EP Energy (4) Hawkwood (4)
COP (7) Chesapeake (4) Sanchez (3)
Penn Virginia (3)
Others (48) Basin Production Lat. Footage Drilled
1
30
Source: DrillingInfo and EIA
31
Eagle Ford Basin Assets
Eagle Ford Basin Analytics
Volume Trends (KBPD) Strategy
Long-Term, High-Quality, Creditworthy Customers
September Volumes
1) Develop new pipelines and increase pipeline %
of total volumes
2) Continue to increase commitments (added
substantial minimum volume commitments in
2018)
3) Growth via exclusive development on large West
Texas ranch
4) Reduce operating expenses through automation
Gross Margin and Opex per BBL Trends(1)
$-
$0.50
$1.00
$1.50
2015 2016 2017 2018 2019 YTD
Gross Margin per BBL Operating Expense per BBL
(1) Gross Margin per BBL includes skim oil revenue. 32
33
Midland Basin (TX)
Overview (1)
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
5,000,000
Q1-1
6
Q2-1
6
Q3-1
6
Q4-1
6
Q1-1
7
Q2-1
7
Q3-1
7
Q4-1
7
Q1-1
8
Q2-1
8
LL (ft)
Midland Footage Drilled
Current Rig Activity
Parsley (12) Crownquest (9) Apache (6)
Pioneer (22) Concho (11) Endeavor (7) Others (88)
Surge (6) XTO (19) Diamondback (7)
Central Basin Platform
Delaware Basin
Midland Basin
0
500
1000
1500
2000
2500
3000
3500
4000
4500
0
100
200
300
400
500
600
700
800
900
Q1 -
16
Q2 -
16
Q3 -
16
Q4 -
16
Q1 -
17
Q2 -
17
Q3 -
17
Q4 -
17
Q1 -
18
Q2 -
18
Q3 -
18
New well production per rig
Basin production
New well production per rig
Boe 20 / day
Basin production
Mboe 20 / day
Midland Basin Operating Activity
Source: DrillingInfo 1. Represents total oil and gas production in the Permian basin. 34
35
Midland Basin Assets
Midland Basin Analytics
Volume Trends (KBPD) Strategy
Long-Term, High-Quality, Creditworthy Customers
September Volumes
1) Improve capacity utilization
2) Increase pipeline volumes
3) Add producer connected pipelines
4) Reduce operating expenses through automation
Gross Margin and Opex per BBL Trends(1)
$-
$0.40
$0.80
$1.20
2015 2016 2017 2018 2019 YTD
Gross Margin per BBL Operating Expense per BBL
(1) Gross Margin per BBL includes skim oil revenue. 36
37
Delaware Basin (TX)
58 64 83
111
146
181 187 204
229 251 254 263
0%
5%
10%
15%
20%
25%
30%
0
50
100
150
200
250
300
Q1-1
6
Q2-1
6
Q3-1
6
Q4-1
6
Q1-1
7
Q2-1
7
Q3-1
7
Q4-1
7
Q1-1
8
Q2-1
8
Q3-1
8
Curr
ent
# of Rigs
Delaware Rigs % of Total U.S. Hz. Rigs
>25% of All US Rig Activity Occurs in the Delaware
NGL is strategically located within the core of the Delaware
Basin, which has emerged as North America’s premier basin
– Well results demonstrate great rock quality with large upside
potential given short laterals dominate historical activity
– Wolfcamp A section is thick, over-pressured and organic-rich,
which are the primary drivers for recent basin-leading well
results
Rig activity focused on longer laterals to drive capital efficiencies
– Translates into accelerated volume growth on the dedication
% of Total
TX
NM
Delaware
CBP
Midland
Permian Basin
Overview Current Rig Activity
CXO (17) Cimarex (12) Devon (9)
EOG (19) Oxy (13) Felix (9) Other (151)
Diamondback (8) XTO (14) Chevron (11)
Delaware rig activity continues to set records with 263 rigs running all focused on longer laterals to drive capital
efficiencies, which translates into accelerated growth across the basin
4
Strategically Located in the Prolific Delaware Basin
Source: DrillingInfo.
Overview
Delaware Basin Horizontal Rig Count
38
0
100
200
300
400
2010 2011 2012 2013 2014 2015 2016 2017 2018
Monthly Permits
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2010 2011 2012 2013 2014 2015 2016 2017 2018
Mbbl/d
39
Delaware Performance by county
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2010 2011 2012 2013 2014 2015 2016 2017 2018
Mbbl/d
Daily Water Rate vs. Time
Wells Spud Over Time
0
50
100
150
200
250
300
2010 2011 2012 2013 2014 2015 2016 2017 2018
Monthly Wells Spud
Daily Oil Rate vs. Time
County Name Daily Oil (1)
Reeves 320.9
Lea 221.5
Loving 210.2
Eddy 191.0
Ward 63.4
Culberson 50.0
Pecos 34.0
Winkler 14.2
Chaves 2.0
Permit Count Over Time
Source: DrillingInfo
1. Represents rate at the end of Q1 2018 based on latest available data.
Reeves Eddy Loving Lea Culberson Ward Pecos Winkler Chaves
County Name Daily Water (1)
Reeves 934.4
Eddy 632.7
Loving 581.0
Lea 488.6
Culberson 359.1
Ward 145.0
Pecos 63.8
Winkler 29.6
Chaves 4.2
39
40
Delaware Basin Geologic Overview
Source: DrillingInfo
Water-Oil-Ratio by Bench Delaware Basin
Delaware/Brushy Canyon
Avalon
1st Bone Spring
2nd Bone Spring
3rd Bone Spring
Wolfcamp A
Wolfcamp B
Wolfcamp C
Wolfcamp D
Cisco
Canyon
Strawn
Atoka
640 – 1,280 acre unit 1 mile
1-2 mile
Pen
n
Wo
lfcam
p
Leo
nard
```
Gu
ad
Wolfcamp XY
Primary Target Upside
Bone Spring (Full) Wolfcamp XY
Wolfcamp D Wolfcamp C Wolfcamp B
Wolfcamp A
6+
4
3
<1
WOR
Bone Spring
Analogous to Spraberry Shale in
Midland with great well results
2nd BS includes channel facies
flow units
3rd BS shows discrete shale
packages with frac isolation
conducive to multiple landing
zones
Wolfcamp X/Y
Sandstone and siltstone reservoir
with conventional reservoir flow
characteristics including higher
permeability
Along with the Wolfcamp A, the two
formations are one of the highest oil
producers in North America
Wolfcamp A
Primary target throughout the
Delaware basin
Thick, over-pressured, prolific,
organic rich source rock with
excellent repeatability
Wolfcamp B
Competitive returns to WCA, but with
slightly gassier fluid composition
Wolfcamp C/D
Expansion into the C, and D benches
is increasing
Wolfcamp C penetrations have been
focused on state-line area and in the
deep portion of basin
Wolfcamp D presents large over-
pressuring >0.8 psi/ft and high
condensate yields; continues to show
massive potential
6+
4
3
<1
WOR 6+
4
3
<1
WOR
6+
4
3
<1
WOR 6+
4
3
<1
WOR 6+
4
3
<1
WOR
DELAWARE BASIN
0
100
200
300
400
500
600
700
800
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Cum
ula
tive
Pro
du
ctio
n (M
Bb
l)
Dai
ly
Pro
du
ctio
n (
Bb
l/d
)
Months Online
Delaware Basin Water Type Curve
DID Daily RJ Modeled Daily DID Daily RJ Modeled Daily
2.3x
2.5x
2.8x
3.0x
3.3x
3.5x
3.8x
4.0x
0
100
200
300
400
500
600
700
800
900
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Tota
l P
rod
uct
ion
(M
bb
ls)
Months Online
Delaware Basin Cumulative Produced Oil + Water
Cumulative Oil Production (RJ Modeled) Cumulative Water Prouction (RJ Modeled) WOR
Water
Oil0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Dai
ly
Pro
du
ctio
n (
Bb
l/d
)
Months Online
Delaware Basin Oil + Water Decline Curves
DID Daily RJ Modeled Daily DID Daily RJ Modeled Daily
2.3x
2.5x
2.8x
3.0x
3.3x
3.5x
3.8x
4.0x
4.3x
4.5x
4.8x
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Avg
. W
ate
r-O
il R
atio
Months Online
Delaware Basin Water-to-Oil Ratio
DID Water-to-Oil Ratios RJ Modeled Water-to-Oil Ratio
Source: Raymond James and DrillingInfo
Delaware Basin Type Curves
41
42
NGL
North
Ranch
NGL
South
Ranch
New Mexico Sub-Region Assets
NGL’s strategy is to provide an integrated
service offering to our E&P customer base
spanning disposal, land use, freshwater, solids
and pipeline transportation
NGL’s sources of revenue on the ranches
include:
1) Fees for surface use and ROW/easements
2) Freshwater sales
3) Disposal income
4) Landfill income
5) Caliche/sand mining income
6) Pipeline fees
McCloy Ranch acquisition (NGL North Ranch)
– 87,000 acres in Eddy and Lea Counties
– 2 million barrels of annual water rights in Eddy
and Lea Counties, New Mexico
Beckham Ranch acquisition (NGL South Ranch)
– 36,000 acres in Lea County
– 9.6 million barrels of annual water rights in Lea
County, New Mexico
Total acquisition consideration = ~$93MM
Total Run Rate Adj. EBITDA = ~$18MM
– Run Rate Multiple = 5.2x excluding Growth
Projects
43
1
1 2
2
NGL’s McCloy and Beckham Ranch Acquisitions(1)
(1) E&P statistics are based on data from DrillingInfo as of 12/6/18
E&P activity on NGL’s McCloy and Beckham Ranches:
14 rigs
2,137 wells
2,043 permits
Ranch Acquisition Strategy
44
NGL Striker 2
NGL Striker 6
NGL Striker 5
Rigs & Active Permits Near NGL Ranches
45
NGL’s strategy is to provide an integrated
service offering to our E&P customer base
spanning disposal, land use, freshwater,
solids and pipeline transportation
NGL has capabilities to supply ~35 million
barrels per year of freshwater spanning the
Northern and Central areas of the Delaware
Basin
Beckham Ranch acquisition
– ~9.6 million barrels of annual water rights
in Lea County, New Mexico
McCloy Ranch acquisition
– ~2 million barrels of annual water rights in
Eddy and Lea Counties, New Mexico
Other acquisitions
– ~23 million barrels of annual water
production capacity in Reeves County,
Texas
Both lateral length and water used per later
foot are increasing in all of our key basins
A 10,000 feet lateral requires 500,000 barrels
of water based on a ratio of 50 barrels / LF
NGL’s Freshwater Assets(1)
Freshwater Strategy
46
NGL’s Beckham Ranch
has some of the best
hydrology in Lea County,
NM given its proximity to
the thick areas of the
Pecos Valley Aquifer
NGL’s freshwater assets in
Reeves county are well
positioned in the best part
of the aquifer
Hydrology Map of Pecos Valley Aquifer
Source: Meyer et al, 2012
47
Completed SWD
Approved Permit
Pending Permit
Orla Sub-Region Assets
48
Mentone Sub-Region Assets
Pecos Sub-Region Assets
49
Asset Map
REEVES COUNTY
WARD COUNTY
Ranger
Pecos 3
Highway 17S
Pecos
Central Reeves
PECOS
COUNTY
Barstow
Pyote
Toyah 8
Toyah 7
Pecos 2
Toyah 4
Toyah 6
Central Reeves 4 Central Reeves 3
Central Reeves 5
Legend
Approved Permit
In-Service
Pending Permit
Producer E to Pecos Pipeline
Central Reeves to Pecos Pipeline
Major Highways, Major Roads
County Line
Producer Pipeline
Pecos South
NGL owns and operates 9 saltwater disposal facilities in
Reeves and Ward counties near Pecos, Texas
Located in a high demand area with a substantial and
predominantly royalty-free land position
Total permitted capacity of 270,000 barrels per day
NGL also possesses a portfolio of well permits that will
further drive growth to meet demand
Newly built assets with significant pipeline infrastructure
2 company-owned pipelines; 7 of 9 facilities connected
via one or more pipelines
~75% of volumes are piped
Cash flow profile supported by multi-producer platform, fee-
based contracts with long-term customers, minimal
commodity price exposure, low maintenance capex, and
high operating margins
Asset Overview
Select Area Producers
Delaware Basin Analytics
Volume Trends (KBPD) Strategy
Long-Term, High-Quality, Creditworthy Customers
September Volumes
1) Acquired ROW and building Western Express trunk line
system for transporting water across disposal network
2) Increase pipeline volumes (current piped water is 60% of
total in the Delaware)
3) Continue development of large multi-well assets with a
shared surface facility
4) Add to and extend our term contracts with key producers
5) Grow solids and freshwater volumes at our existing assets
6) Reduce operating expenses through automation
Gross Margin and Opex per BBL Trends(1)
$-
$0.40
$0.80
$1.20
2015 2016 2017 2018 2019 YTD
Gross Margin per BBL Operating Expense per BBL
(1) Gross Margin per BBL includes skim oil revenue. 50
Investment Thesis &
Valuation Observations
51
NGL has transitioned to a fully integrated water platform across each of its operating areas
52
Business
Description
Asset
Characteristics
Cash Flow
Characteristics
Valuation
Metrics &
Other
Considerations
Provides short-term equipment rental
(pumps, lay-flat hoses, frac tanks etc.)
services on-demand to E&P operators
and water hauling (“OFS model”)
Low barriers to entry (capital &
regulatory)
Provides disposal services on-demand
Primarily trucked volumes
AR mainly with trucking companies
Medium barriers to entry (capital &
regulatory)
Provides disposal services in the G&P
model (i.e. pipeline gathering of
wastewater from E&P acreage to
centralized disposal assets)
Assets span multiple basins and services
(disposal, solids, fresh and treated)
Short-lived mobile assets
Useful life ~5 years
Requires frequent replacement of fleet
due to short asset life
Long-lived fixed assets
Useful life ~20 years
Long-lived fixed assets integrated with
pipelines
Useful life ~20 years
Use of automation and advanced
integration/monitoring
Primarily margin-based cash flow
High correlation to drilling activity
Short-term day-basis contracts for on-
demand services
High Maintenance Capex
Minimal fee-based cash flow
Medium correlation to drilling activity
Generally month-to-month contracts
70-80% fee-based cash flow based on
lower skim oil cuts from piped water
Less correlation to drilling activity given
contract structure (MVCs, cumulative
revenue/volume commitments,
facility/acreage dedications)
< 5.0x EV/EBITDA due to high cash flow
volatility and low barriers to entry
4.5-6.5x EV/EBITDA depending on
location and prospects for volume growth
Fragmented ownership is ripe for further
consolidation by larger players with scale
and inter-basin presence
8.5-10.5x EV/EBITDA depending on
contract profile, location and prospects
for volume growth and future pipeline
connections
Low Maintenance Capex
AR directly with large E&P operators
Water Midstream Value Chain
Wastewater Service
Companies
Traditional Disposal
Companies Integrated Water Platforms
NGL Operational Assumptions Significant Growth Opportunities
Margin Enhancement
Volume Growth
Technological
Innovation & Expertise
Consolidation
Continued reduction of operating expenses through expansion of pipeline infrastructure
Increased pipeline connectivity allows for each incremental BBL to contribute more margin
Can move produced water to multiple disposal facilities
Providing producers a menu of services
Continued effort to execute long-term contracts with the largest producers in area of operations
Delaware Basin produced water growth will continue to expand the third party disposal market rapidly
NGL is the largest third party disposal operator in the basin and has an opportunity to grow market share
Continued growth in pipeline connectivity allows NGL to maximize our utilization rates across our footprint
Delaware Basin fresh and produced water growth will continue to strain current infrastructure, this lends itself to the recycle and or reuse market
NGL able to clean produced water to drinking quality
NGL has been recycling water in the Anticline basin for over 15 years
Seismic expertise and monitoring
Recent activity in the space and interest implies the water disposal industry is at the very early stages of it’s life cycle
Fragmented third party disposal market with numerous acquisition opportunities
Producers have the largest portion of water disposal in the Delaware Basin
Producers expected to transfer the costs to third party disposal which will allow for further consolidation in the market
The NGL Water Solution
Continued focus on investing capital into NGL’s core basins and growing market share
Minimizing the cost of water disposal and recycle and or reuse to the producers in their operating areas allowing NGL to provide all post-frac water needs
Provide customers with critical water disposal redundancy
Provide NGL’s superior water knowledge to customers and help them reduce their break-evens on their acreage
53
Water Valuation Analysis
Historical Today & Going Forward Gathering & Processing
1) Trucks
2) Counterparty = Trucking Cos.
3) No Contracted Volumes
4) Direct commodity price exposure
(Skim oil drove returns)
5) Limited 3rd party market
6) Large expense to Producers
7) Very fragmented market
8) Water cannot be flared
9) Higher liability for producer with
water on trucks
1) Pipelines
2) Counterparty = Producers
3) Long-term Contracts (MVCs & ADs
>5 years)
4) Limited direct commodity price
exposure (disposal & pipeline fees
drive returns)
5) Growing 3rd party market
6) Value added (must dispose of water
to continue production & decrease
producer LOE)
7) Higher efficiencies of scale
8) Water cannot be flared
9) Reduction in liability for producer
with water via pipelines
1) Pipelines
2) Counterparty = Producers
3) Long-term Contracts (MVCs & ADs
>5 years)
4) Limited direct commodity price
exposure (% of proceeds & keep
whole contracts)
5) Growing 3rd party market
6) Value added (getting production to
market)
7) Higher efficiencies of scale
8) Gas can be flared
9) More dangerous and highly
regulated environment
Historical Valuation
>5.0x
Valuation Today
?-?x
Historical Valuation
10-12x
54
Select Precedent Water Transactions
55
Water Midstream Transactions Date Headline EBITDA EBITDA Multiple
Announced Buyer Seller Value ($mm) LTM FY1 LTM FY1 Location Description
12/11/2018 Hess Infrastructure Partners LP Hess Corporation $225 NA NA NA NA Bakken
11/12/2018 Tallgrass Energy LP NGL Energy Partners LP $91 NA NA NA NA Bakken
10/31/2018 WaterBridge Halcon $325NA $22 $33 14.5x 10.0x Delaware
2/7/2018 Tallgrass Energy Partners LP Buckhorn $140 NA $28 NA 5.0x Bakken
9/12/2017 Enable Midstream Partners LP Align Midstream $300 NA $30 NA 10.0x Ark - LA - TX
11/5/2015 Rice Midstream Partners LP Rice Energy $200 NA $38 NA 5.3x Appalachia
9/18/2015 Antero Midstream Partners LP Antero Resources $1,050 NA $120 NA 8.8x Marcellus / Utica
6/18/2015 American Water Works Rex Energy Corporation $130 $14 NA 9.0x NA Appalachia
2/23/2015 Cypress Energy Partners LP Cypress Energy Holdings $53 $8 NA 7.0x NA Bakken / Permian
Median $200 $14 $33 9.0x 8.8x
Mean $279 $15 $50 10.2x 7.8x
Min $53 $8 $28 7.0x 5.0x
Max $1,050 $22 $120 14.5x 10.0x
Water gathering assets and saltwater disposal services in ND;
150+ miles of pipelines capturing 24,000 BPD
5 saltwater disposal wells located in McKenzie and Dunn
Counties, ND
Water gathering lines, SWDs, freshwater wells, and water
recycling facilities in the Delaware; $200mm payable upon
closing plus $125mm earn-out over 5 year period
10 SWD's and 39 miles of water gathering infrastructure;
servicing 133K dedicated acres for multiple producers;
$95mm upfront plus $45mm of growth capex
Gas, crude, and water gathering pipelines, treating and gas
processing plants, and SWDs in the Cotton Valley and
Haynesville with long-term, fee-based contracts
Unowned 49.9% of Tulsa Inspection Resources; saltwater
disposal and other water and environmental services including
pipeline inspection services
Rex's 60% interest in Water Solutions Holdings; acquires,
manages, and operates water treatment, disposal, and
transportation facilities
Delivery business with rights to provide fresh water for AR's
operations in WV and OH and to construct AR's 60 MBPD
wastewater treatment facility
Distribution systems and related facilities with rights to provide
fresh water and collect, recycle or dispose of flowback and
produced water for Rice Energy
___________________________
Source: Public filings, earnings transcripts, and company press releases.
1. Transaction EBITDA and multiple figures based on the midpoint of the 14.0x – 15.0x all-in LTM EBITDA multiple range and 10x upfront payment referenced in Halcon’s earnings call.
2. Implied FY1 EBITDA based on 5.0x expected all-in cash flow multiple on total investment, once additional infrastructure is completed.
3. Implied FY1 EBITDA based on 10.0x EBITDA multiple referenced in Enable’s earnings call.
4. Implied FY1 EBITDA based on the midpoint of the 8.5x – 9.0x EBITDA multiple range stated in the Antero press release.
5. Implied LTM EBITDA based on 9.0x EBITDA multiple referenced in American Water Works earnings call.
6. Implied LTM EBITDA based on 7.0x EBITDA multiple stated in the Cypress press release.
(1)
(3)
(2)
(4)
(5)
(6)
Assets are strategically positioned across operating basin footprint
Most of the rig activity centers around NGL’s SWDs
Located along main development areas to facilitate pipeline buildout
Delaware basin holds the highest produced water to crude ratio and also the largest total water disposal market in the U.S.
Flowback water in Delaware basin is lowest % of total water disposal in the U.S.
NGL Assets are located in the basins with the highest Producer RoR
Less exposure to rig count and commodity price
Fee-based cash flows from contracts with long-term customers and minimal commodity price exposure
High operating margins and low maintenance capex per BBL
Located in high demand areas with a predominately royalty-free land foothold
Strong track record of historical volume and cash flow growth
Significant pipeline infrastructure increases customer “stickiness” and predictability of cash flows
Producer and NGL-owned pipelines represent ~50% of total delivered volumes
Assets located in a premier basin with attractive growth prospects
Significant upside as lateral lengths keep expanding and drilling days further compress, accelerating growth and increasing
SWD demand
Blue chip customer base reinforces growth story
Portfolio of additional valuable well permits that will further drive growth to meet demand
Includes a substantial royalty-free land position, supporting future development
Portfolio of newly built and high quality assets
Facilities utilize automated control systems to maximize uptime and efficiency
Commitment to safety on entire network with robust controls in place
Experienced operations team with successful track record optimizing SWD logistics
Key Investment Highlights
Strategically
Located Assets
Best-in-Class
Facilities and
Equipment
Backlog
of Growth
Opportunities
Stable Fee-
Based Cash
Flows
56
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