first quarter 2018 earnings call - noble...

www.nblmidstream.com

First Quarter 2018 Earnings Call

May 2018


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 identifyforward-looking statements. Forward-looking statements are not statements of historical fact and reflect the Partnership’scurrent views about future events. No assurances can be given that the forward-looking statements contained in this newsrelease will occur as projected and actual results may differ materially from those projected. Forward-looking statements arebased on current expectations, estimates and assumptions that involve a number of risks and uncertainties that could causeactual results to differ materially from those projected. These risks include, without limitation, our customers’ ability to meet theirdrilling 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 gasgathering and processing services, the Partnership’s ability to successfully implement its business plan, the Partnership’s ability tocomplete internal growth projects on time and on budget, the price and availability of debt and equity financing, the availabilityand price of crude oil and natural gas to the consumer compared to the price of alternative and competing fuels, and other risksinherent in the Partnership’s business, including those described under “Risk Factors” and “Forward-Looking Statements” in thePartnership's most recent Annual Report on Form 10-K and in other reports on we file with the Securities and ExchangeCommission (“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. NobleMidstream does not assume any obligation to update forward-looking statements should circumstances, management’sestimates, or opinions change.

2


Strong Execution

Gathering Throughput & Fresh Water Delivery In-line or Exceeding Guidance

First Quarter 2018 Highlights

3

Recent Developments May Black Diamond Nominations of 58 MBbl/d

May Nominations at Advantage of 120 MBbl/d

Collier CGF in Delaware Basin Nearing Completion

DPU Growth4.7% Increase Above 4Q17

24% Increase Over 1Q17

36% Above MQD

Financial Discipline1Q Distribution Coverage Ratio 2.3x 2

1Q Annualized Leverage 2.0x 2, 3

Credit Facility Upsized to $800 MM Plus $350 MM Accordion

Growth Projects DeliveredDelaware CGFs On Schedule:

Coronado Completed March 30

Billy Miner II Online April 20

FWD Delivered at Green River in DJ Basin in March

1Q1 Volumes vs 4Q: Oil, Gas & Produced Water Gathering +22%

Fresh Water Delivery +24% Throughput from Advantage Pipeline +47%

1. Oil gathering reflects two months contribution from acquisition of Black Diamond Gathering which closed on 1/31/182. Distribution Coverage Ratio and Leverage are Non-GAAP measures, see definition provided in appendix hereto3. Defined as 1Q Debt / 1Q EBITDA * 4 ($435 million / $54 million *4)


First Quarter 2018 Results

4

In-line or exceeding guidance across the majority of categories

1. Figures are Non-GAAP, see definition provided in appendix hereto2. 2.2x as reported; 2.4x adjusted for December equity issuance and prior to any Black Diamond acquisition contribution

Actuals 1Q Guidance1Q v 4Q

Gross Volumes: 4Q17 1Q18

Oil Gathered (MBbl/d) 93 130 120 - 135 40%

Gas Gathered (MMcf/d) 175 191 190 - 200 9%

MBoe/d 122 162 152 - 168 33%

PW Gathered (MBw/d) 49 47 42 - 50 -4%

FW Delivered (MBw/d) 135 168 130 - 150 24%

Net Income ($MM) 46 39 42 - 48 -15%

Gross EBITDA ($MM)¹ 52 58 55 - 61 12%

Net EBITDA ($MM)¹ 48 54 52 - 58 13%

DCF ($MM)¹ 43 47 44 - 50 9%

Distribution Coverage Ratio 2.2x/2.4x² 2.3x 2.1x - 2.4x

Gross Capex ($MM) 136 249 225 - 250

Net Capex ($MM) 62 128 110 - 125


40

54

$40

Gathering EBITDA =G2 Total EBITDA

Peer-Leading Distribution Coverage1 Continues

Gathering EBITDA

1Q 2018 NBLX Net EBITDA and Distribution Coverage 1,2

Total EBITDA

Implied Distribution Coverage of 4Q Distribution

x

2.3x

1. Figures are Non-GAAP; see definition in Appendix hereto2. G&A allocated to gathering and freshwater delivery based on proportionate share of EBITDA; coverage figures reflect full net maintenance capital totals3. Assumes 20% distribution growth target

5

1.6x

1Q Gathering Net EBITDA1 of $40 MM, an 8% Increase Above 4Q 1.6x Distribution Coverage Ratio1 excluding Fresh Water

Gathering net EBITDA represented 74% of total net EBITDA

Full-Year 2018 Guidance: 20% Distribution Growth with Distribution Coverage Ratio1 of 1.9x –2.1x1

$ in millions

Fresh Water Delivery EBITDA

Gathering volumes driving growth

2.1x 1.9x - 2.1x

$1.81

$2.19

0.00

0.50

1.00

1.50

2.00

2.50

.x

.5x

1.x

1.5x

2.x

2.5x

3.x

3.5x

4.x

4.5x

2017 2018E

Distribution Coverage Ratio1,3 & DPU


Strong Execution Driving Visible Growth

6

89

200 - 235

162

190 - 210

0

50

100

150

200

250

300

2017 2018E 1Q18 2Q18E

Oil and Gas GatheringMBoe/d

24

80 -110

47

75 - 90

0102030405060708090

100110120130

2017 2018E 1Q18 2Q18E

Produced Water GatheringMBw/d

156 130 -190168

110 - 130

0

50

100

150

200

2017 2018E 1Q18 2Q18E

Fresh Water DeliveryMBw/d

Close and Integrate Black Diamond Gathering

Consistent milestones and catalysts throughout the year

Begin Mustang Fresh Water Delivery at Green River DevCo

Start-up Coronado CGF in Delaware Basin

Commence Operations at Billy Miner II CGF in Delaware Basin

Commence Delaware Basin Compression Services for NBL

Complete Collier CGF in Delaware Basin in MayOn

Track

Start-up Green River Spec Oil, Gas and Water System by Mid-yearOn Track

Operational Scorecard

Expand Advantage Capacity to 200 MBbl/d by end of 3Q18On

Track


Net Income Guidance of $175 - $210, or 17% Above 2017

Revised net income reflects higher expected DD&A due to Black Diamond Gathering acquisition

45% Annual Adjusted Net EBITDA1 Growth Anticipated at Guidance Midpoint ($215 - $235 MM)

Decline in Adjusted Net EBITDA1 from 1Q18E to 2Q18E due to development timing, continued conservatism forecasting FWD volumes and customer completion operations shift from Colorado River (100% owned) to Green River (25% owned)

~20% Increase in Net EBITDA1 in 2H18 Compared to 1H18 Provides Visibility and Momentum into 2019

2H18 vs. 2H17 net EBITDA1 anticipated to be up 30%

1H18

2H18E

2018EGross

Capital

1H18 Capital Drives Expected Robust 2H18 Performance

7

2H18 expected growth reflects growth project and customer activity timing

1. Figures are Non-GAAP, see definition provided in appendix; 2018 EBITDA estimates adjusted for $7.5 million in Black Diamond Gathering transaction expenses expected in 1H18E

First Half Weighted Capital Drives Momentum into 2019

$94

$115 - $130

0

10

20

30

40

50

60

70

80

90

100

110

120

130

140

150

2H17 2H18E

+30%

Net Adjusted EBITDA ($MM)¹


DJ Basin Delaware Basin

DevCo% Ownership

Colorado River100%

Laramie River²100%

Green River25%

Blanco River40%

Trinity River100%

Expected 2018 Capital Investment

• Gathering system well connections

• New Wells Ranch gas offload

• Gathering systemwell connections

• Multiple DSU’s for FWD

• Black Diamond capital

• Completion of Mustang backbone infrastructure

• Gathering system well connections

• Buildout of 3 CGFs• Gathering system

well connections

• Expansion of Advantage throughputcapacity to 200 MBbl/d

• Compression

2018 Capital Budget Detail

8

Colorado

River

4%

Laramie

River²

29%

Green

River

13%Other

Blanco

River

45%

Trinity

River

8%

Gross Capital1

$500 - 535MM

1. Excludes acquisition capital2. Includes Black Diamond Gathering capital

Colorado

River

8%

Laramie

River²

37%

Green

River

6%Other

Blanco

River

34%

Trinity

River

15%

Net Capital1

(attributable to the Partnership)

$270 - 285MM

Growth capital focused on Blanco River and Laramie River DevCos

No Impact to 2018 Budget from U.S. Steel Tariff

www.nblmidstream.com 9

90 MBbl/d of Crude Oil Capacity (115 MBoe/d) from 5 CGFs Planned to be Operational by Mid-2018

5th planned CGF, Collier, nearing completion

CGF Capacity at Mid-Year Provides Long Runway for Sponsor Planned Volume Growth

All CGFs Connected and Flowing Through Advantage Pipeline

Substantial Capital Efficiency Expected in 2019 Once Backbone Infrastructure is Complete

Near-Term Delaware Basin CGF Projects

Daily Capacity

Oil (MBbl/d)

Gas(MMcf/d)

PW(MBw/d)

Est. Online

#1 Billy Miner I 15 30 30 Online

#2 Jesse James 15 30 30 Online

#3 Coronado * 20 30 60 Online

#4 Billy Miner II 20 30 60 Online

#5 Collier * 20 30 60 1H 2018

Delaware Basin: Blanco River

* expandable to 30 MBbl/d and 60 MMcf/d with minimal equipment additions

Significant 2018 growth driver

Blanco River Activity 4Q17 1Q18

Oil & Gas Gathered (MBoe/d) 15 19

PW Gathered (MBw/d) 24 26

FW Delivered (MBw/d) - -

Gross Organic Capital ($MM) 95 154

Net Organic Capital ($MM) 38 62

Well Connections 9 9

Average Lateral Length (ft) ~6,400 ~7,700


Delaware Basin: Trinity River

10

April Nominations of 108 MBbl/d; May Nominations of ~120 MBbl/d

2018 Volumes Now Anticipated to Average in Excess of 100 MBbl/d

Additional Upside Opportunities Currently Being Negotiated

Opportunities for additional acreage dedications and volume commitments

Leverage asset footprint with minimal capital required

Advantage Pipeline Positioned to Benefit from Tightness in Delaware Basin Takeaway Capacity

Additional pump ordered to expand system capacity to 200 MBbl/d by end of 3Q18

New Build Compression Started at Coronado and Billy Miner II, Installation at Collier Under Way

18,000 HP of owned compression installed by mid-year

30

60

88

>100

0

20

40

60

80

100

120

Apr-17 4Q17 1Q18 2018E

Value creation continues at Advantage with record volumes

Advantage Pipeline

Additional upside

opportunities under

negotiation

Advantage Pipeline Oil Throughput (MBbl/d)

Trinity River Activity 4Q17 1Q18

Gross Organic Capital($MM)

0 27

Net Organic Capital($MM)

0 27

Advantage Throughput*(MBbl/d)

60 88

Owned Compression HP 6,000 12,000

Compression

*Excluded from total throughput due to accounting treatment as investment income


DJ Basin: Laramie River

11

Successful Integration of Black Diamond Gathering Operations

Tallgrass Outlet In-Service, Completing Connectivity to Every DJ Downstream Takeaway Option

Realizing Operational and Financial Synergies

Connection of wholly owned system at Lucerne Terminal complete

Planned Green River connection at Milton Terminal

Potential addition of complementary services, including storage

Significant Undedicated Acreage in Catchment Area Remaining

2018 Exit Volumes Expected to be Higher than Acquisition Case

May nominations of 58 MBbl/d

Planning for Significant 2H18 Activity and Throughput Ramp

Planned System Integration with Downstream Outlets and Black Diamond Gathering

Significant third-party activity acceleration underway

Laramie River Activity 4Q17 1Q18


PW Gathered (MBw/d) 4.5 5

FW Delivered (MBw/d) 34 44





Black Diamond Gathering

Wholly Owned Infrastructure

* Includes two months of contribution from Black Diamond Gathering


DJ Basin: Colorado River

12

DevCo Represents 4% of Gross 2018E Capital Budget and ~55% of 2018E Gross EBITDA1

Backbone infrastructure in place

Activity highly focused on capital efficient well connects

Total NBLX Wells Ranch System Capacity Expanded to 200 MMcf/d

Upstream Results Continue to Perform Well Versus NBLX Expectations

No Fresh Water Delivery Volumes in 2Q18 Due to NBL Activity Shift to Mustang (Green River)

Mature Infrastructure Highlights Capital Efficiency: $3 MM in 1Q18 Capital for 31 Well Connections for Oil, Gas, and Produced Water

Significant free cash generation

Colorado River Activity 4Q17 1Q18


PW Gathered (MBw/d) 20 16

FW Delivered (MBw/d) 67 102





Wells Ranch Infrastructure

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


DJ Basin: Green River

13

Fresh Water Delivery Began in March

Two NBL completion crews operating in Mustang during 2Q18

Spec Oil, Gas and Produced Water Backbone Gathering Infrastructure On Track for Mid-Year Startup

Gathering volumes anticipated mid-year 2018

Planned Oil Connection into Black Diamond Milton Terminal

Development Drilling and Row Concept in Southern Portion of Mustang Drives Highly Efficient Infrastructure Spend from the Start

Full Infrastructure Build Out Includes ~250 Miles of Pipelines (Oil, Gas, PW and FW)

~$500 MM Total Development Capital Over 10 Years

Anticipate 4.5x to 5.5x organic build multiples

Mustang Infrastructure Design

Infrastructure build out to support NBL’s Mustang Area

Green River Activity 4Q17 1Q18

Oil & Gas Gathered (MBoe/d) - -

PW Gathered (MBw/d) - -

FW Delivered (MBw/d) - 22



Well Connections - -

Average Lateral Length (ft) - -


Fresh Water Mix Creates Quarterly Fluctuations in Net Financials

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

Enhanced Completions Continue to Drive Robust Fresh Water Demand per Well

NBL Mustang and Wells Ranch standard design of 1,800 lbs/ft

Future Volumes and Net EBITDA1 will Reflect Mix Shift to Green River (25% Owned) from Colorado River (100% Owned)

Fresh Water Delivery to NBL’s Mustang Development Commenced in March

Two NBL completion crews in Mustang (Green River) in 2Q18

Balance between Wells Ranch (Colorado River) and Mustang (Green River) in 2H18

No fresh water delivery activity at East Pony (San Juan River) currently forecasted for 2018

Zero Colorado River fresh water delivery volumes anticipated in 2Q18

Colorado

River

San Juan

River

Laramie River

2017

Colorado

River

Green

River

Laramie

River

2018

Gross Fresh Water Volume Mix by DevCo

14

Forecasted FWD Completion Crews 1Q18 2Q18E 3Q18E 4Q18E

Colorado River (100% Owned) 1.7 0 1.3 1.5

Green River (25% Owned) 0.3 2.0 1.3 1.5

Laramie River (100% Owned) 1.0 1.0 1.5 2.0


2Q18 and 2018 Guidance Detail

15

Quarterly Full Year

1Q¹Actuals

2Q Estimate¹

2017 Actuals

Updated 2018E¹

Gro

ss V

olu

me

s

Oil Gathered (MBbl/d) 130 160 - 175 66 165 - 190

Gas Gathered (MMcf/d) 191 195 - 215 139 215 - 265

Oil and Gas Gathered (MBoe/d) 162 190 - 210 89 200 - 235

Produced Water Gathered (MBw/d) 47 75 - 90 24 80 - 110

Fresh Water Delivered (MBw/d) 168 110 - 130 156 130 - 190

Fin

an

cia

ls (

$M

M)

(1)

Net Income 39 34 - 39 164 175 - 210

Adjusted Gross EBITDA2,3 58 58 - 63 179 275 - 315

Adjusted EBITDA2,3 54 46 - 51 155 215 - 235

Distributable Cash Flow2 47 37 - 42 138 180 - 195

Distribution Coverage Ratio 2,4 2.3x 1.7x – 1.9x 2.1x 1.9x - 2.1x

Gross Capex5 249 145 - 165 390 500 - 535

Net Capex 5 128 60 - 70 225 270 - 285

1. Black Diamond Gathering contribution included for period following January 31, 2018 close2. Includes Non-GAAP measures; see definition in Appendix hereto3. 1Q18 , 2Q18 and 2018 Adjusted for in Black Diamond transaction expenses not capitalized4. Estimates include forecasted DPU growth of 4.7% quarterly, or 20% annual5. Excludes acquisition capital


Leading Long-Term Outlook

16

Organic – No Drop Downs 2017-2020E 2018E 2019-2022E

Old New New

Distribution per Unit 20% 20% 20%

Coverage (in all years) (1) > 1.3x 1.9 – 2.1x > 1.3x

Leverage (in all years) < 2.5x < 2.5x < 2.0x

ROACE (1, 3) NA > 15% 13 – 16%

DCF Funding % of Capex and Distributions (4) NA ~50%

~90% (cumulative)

1. Non-GAAP measures, definition provided in appendix2. Reflects combined Black Diamond, Advantage, and 2017 drop-down net acquisition cost divided by net EBTIDA; definition of EBITDA provided in appendix3. Return on average capital employed: earnings before interest and taxes divided by (average total assets – average current liabilities); see definition provided in appendix4. % of distributions + capex funded by distributable cash flow

Substantial organic growth with large existing drop-down inventory

Material Upside to Improved Outlook

Prudent Commodity Price View: Based on $50/Bbl and $3/McfPrice Deck vs. Current Strip

Continued Business Development Success, Leveraging Asset Footprints

Permian Crude / Y-Grade Project and Other Long-Haul

Significant and Growing Drop-Down Inventory

~90%% of distributions + capex

covered by DCF¹ 2019-2022E (cumulative) in organic base

plan

~6x(2)

combined adjusted EBITIDA¹ acquisition multiple by 2020E

ROACE(1,3)

2018: >15% Long-Term: 13 - 16%

Extending and improving long-term distribution growth, coverage, and

leverage


Steel Tariff and FERC Tax Allowance Policy Change: Immaterial Impact

17

Current Tariff: 25% on Steel, 10% on Aluminum

Domestic and foreign line pipe pricing increase following announcement

Remaining uncertainty around permanent exemptions

No Impact to 2018 Budget Expected:

Steel for DJ Basin and Delaware Basin capital projects procured in late 2017/early 2018 prior to tariff announcement

Beyond 2018, Worst Case Sensitivity Analysis Indicates Just ~3-5% Increase in Overall Project Costs

U.S. Steel Tariff

FERC Income Tax Allowance Policy Change

FERC Ruled to No Longer Allow Income Taxes to be Included in Cost-of-Service Rates for Interstate Pipelines Structured as Partnerships

Immaterial Impact as Noble Midstream Does Not Have Cost-of-Service Pipeline Rates

Current NBLX rate structure: negotiated rates

Gathering Systems and Advantage Pipeline are Under State Regulation or Operate Under FERC Waivers


Appendix

18


NBLX Asset Map: DJ Basin

19

Black Diamond (54.4%) 1

Dedicated Acres: 141k2

Laramie River DevCo (100%)• Oil Gathering

Area: East PonyDedicated Acres: 44k

Colorado River DevCo (100%)• Oil Gathering

San Juan River DevCo (25%)• FW Delivery

Area: MustangDedicated Acres: 75k

Green River DevCo (25%)• Oil Gathering• Gas Gathering• PW Gathering• FW Delivery

Area: Wells RanchDedicated Acres: 78k

Colorado River DevCo (100%)• Oil Gathering• Gas Gathering• PW Gathering• FW Delivery

Area: Greeley CrescentDedicated Acres: 65k

Laramie River DevCo (100%)• Oil Gathering• PW Gathering• FW Delivery

Area: BroncoDedicated Acres: 36k

Gunnison River DevCo (5%)• Oil Gathering• PW Gathering• FW Delivery

1. Acquisition closed January 31, 20182. Reflects expansion of PDC Energy acreage dedication to Black Diamond Gathering system


NBLX Asset Map: Delaware Basin

20

Area: Delaware BasinDedicated Acres: 111k

Blanco River DevCo (40%)• Oil Gathering• Gas Gathering• PW Gathering

Trinity River DevCo (100%)• HP Gas Compression

Advantage JV (50%)NBL Dedicated Acres: 47k

Trinity River DevCo (100%)• Oil Transmission


50%

NBLX Structure

21

GreenRiver

San JuanRiver

Gunnison River

ColoradoRiver

LaramieRiver

TrinityRiver

BlancoRiver

ControllingInterest

Noble MidstreamServices, LLC

Public Unitholders (LP)

White Cliffs Pipeline L.L.C.

ROFR Assets:• East Pony Gas Gathering• East Pony Gas Processing• Eagle Ford Shale Midstream• Additional DJ Acreage• Additional Delaware Basin

Services

Noble EnergyNYSE: NBL

Noble MidstreamPartners LPNYSE: NBLX

Noble Midstream GP LLC45.5% Limited

Partner Interest

100%

100%100%100%5%25%25%40%

75% 95%

3.33% Non-OperatingMembership Interest

54.5% LimitedPartner Interest

100%

Non-Economic GeneralPartner Interest

AdvantageJV

60% 75%

Black Diamond

Non-ControllingInterest

54.4%


Non-GAAP Financial Measures

22

This presentation includes Adjusted EBITDA, Distributable Cash Flow, Distribution Coverage 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.

We define Adjusted EBITDA as net income before income taxes, net interest expense, depreciation and amortization and unit-based compensation. 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: our 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; our 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. We define Distributable Cash Flow as Adjusted EBITDA less estimated maintenance capital expenditures and cash interest expense. Distributable Cash Flow is used by management to evaluate our overall performance. Our partnership agreement requires us to distribute all 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 calculate our 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 believe that the presentation of Adjusted EBITDA, Distributable Cash Flow, Distribution Coverage 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 and ROACE is Net Income. Adjusted EBITDA, Distributable Cash Flow, Distribution Coverage 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 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 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.


Non-GAAP Reconciliation

23

$ in millions 1Q 2Q 3Q 4Q FY 1Q 2QE FY

Net Income 35$ 39$ 44$ 46$ 164$ 39 34 - 39 175 - 210

Add: Depreciation and Amortization 2 2 4 4 13 11 19 75 - 80

Add: Interest Expense, Net of Amount Capitalized 0 0 1 1 1 1 3 15 - 16

Add: Income Tax Provision - - 0 (0) 0 0.1 - -

Add: Unit-Based Compensation 0 0 0 0 1 0.3 0.3 2

Add: Transaction Expenses 6 1.5 7.5

EBITDA 37$ 42$ 48$ 52$ 179$ 58 58 - 63 275 - 315

Less: EBITDA Attributable to Noncontrolling Interests 11 8 2 3 24 4 12 60 - 80

EBITDA Attributable to NBLX 26$ 34$ 46$ 48$ 155$ 54 46 - 51 215 - 235

Less: Maintenance Capital Expenditures & Cash Interest 3 4 5 5 17 7 9 35-40

DCF Attributable to NBLX 24$ 30$ 41$ 43$ 138$ 47 37 - 42 180- 195

Distribution Coverage 1.8x 1.9x 2.4x 2.2x 2.1x 2.3x 1.7x - 1.9x 1.9x - 2.1x

2017 2018


1001 Noble Energy WayHouston, TX 77070

Contact Information

Megan Repine

Investor Relations

[email protected]

832.639.7380

first quarter 2018 earnings call - noble...

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