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MMM Permian Midstream Congress

PennTex Assets Platforms

PennTex North Louisiana Platform PennTex Permian Platform

  PennTex Midstream Partners, LP (NASDAQ: PTXP) owns   PTXP’s private parent company acquired 98.5% of
and operates natural gas gathering and processing and Atlantic Midstream, LLC (now named “PennTex
residue gas and NGL transportation services to Permian”) from Atlantic Exploration (now a Centennial
producers in the Terryville Complex in northern Resource Development subsidiary and an NGP portfolio
Louisiana, including MRD Operating, LLC company)
  Area of Mutual Interest and Exclusivity Agreement   System continues to expand and now includes:
grants PTXP the exclusive right to provide midstream □  80+ miles of low pressure 12” gas pipeline, 35+
services to MRD in dedicated area, including all miles of intermediate pressure 12” gas pipeline with
field compression
undedicated volumes and all volumes that become
□  60 MMcf/d of cryogenic processing capacity
available at the end of any prior commitment
□  8” NGL pipeline with capacity to deliver 7,800 bbl/d
  PTXP currently operates one 200 MMcf/d cryogenic □  Plant residue line interconnect with El Paso Natural
plant and is constructing a second 200 MMcf/d Gas, duel meter interconnect for redundancy with
cryogenic plant scheduled to come online in October the capacity to deliver in excess of 120 MMcfd
2015. Once complete the two plants will be capable of   Over 60k gross acres from several producers dedicated
processing a total of 400 MMcf/d. PTXP’s 15-year to the processing plant under long-term agreements.
processing agreement with MRD has an escalating Long term gas and liquid sales agreements in place
minimum throughput commitment that reaches 400 supporting takeaway reliability in-place and active
MMcf/d beginning in July 2016 discussions with other producers in the region to
  PTXP has built or acquired over 100 miles of gas expand footprint
gathering, NGL takeaway and residue pipelines to
support its two cryogenic plants and the production of
MRD and other Terryville producers.

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PennTex Permian Platform Detail

  Gathering System NM

□  80+ miles of low pressure 12” gas pipeline Midland


Basin
Delaware
□  35+ miles of intermediate pressure 12” gas pipeline with Basin

field compression TX

□  35+ miles of 3” field condensate pipeline Central


Platform
□  40+ CDPs
□  Initial service March 2014
  Pecos Processing Processing Plant
□  60 MMcf/d of cryogenic processing capacity
□  Proposed (second plant) 120 or 200 MMcf/d cryogenic natural
gas processing plant with expected in-service 3Q 2016
Ward
□  Redundant compression Pecos
Compressor
Station 4
AMS

□  Residue gas delivered into El Paso’s 36” pipeline in Reeves Compr essor
Station 5
Plant

EPNG
Delivery Compressor

County, TX
Station 1

  NGL Pipeline Compr essor


Station 7
20” Loop
Line Phase 1 Reeves

□  NGL’s delivered into Lone Star via 25 miles of 8” pipeline


with capacity equal to 300-400 MMcf/d of plant inlet.
Compr essor
Station 2

Dedicated Acreage
□  Firm agreement in place for sale of NGL’s to Lone Star
20” Loop
Line Phase 2

Receipt Points / CDP


EPNG Sales Point
Compr essor

System Station 3 Compr essor


Station 6

EP Natural Gas Line


Benchmarking Gas Production with Pipeline and
Processing Capacity

How is drilling activity affected with regard to


existing processing and pipeline takeaway
capacity?
To what degree?

Competitiveness within Midstream Industry


Willingness to share risk
Benchmarking Gas Production with Pipeline and
Processing Capacity

How is drilling activity affected with regard to


existing processing and pipeline takeaway
capacity?
Today?

Vs.
One Year Ago?

55
Trending Rig Activity

66
How is drilling affected?

One year ago?


Crude trading $100+/brl
Significant expansion

Numerous Midstream Capital Projects

Today?
Crude trading ~$50/brl

Producers drilling to hold acreage


Evaluating Gathering and Gas Processing Capital Projects

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Infrastructure development is similar when drilling
for optimal production or to hold acreage

Drilling  for  Production Drilling  to  Hold  Acreage

Processing   Plant Processing   Plant

Gas  Processing  Plant  plus  15  miles  of  Gathering  &  Compression Gas  Processing  Plant  plus  15  miles  of  Gathering  &  Compression
18,000  Mcf/day  Production 7,000  Mcf/day  Production
Benchmarking Gas Production with Pipeline and Processing Capacity

Immediate Needs for Further Gas Processing?


 Needs exist but the challenge in meeting those needs is now
substantially different

 Remaining constraints from initial (prior two years) activity


 New/Future Needs
□  New needs for gathering and gas processing are in many cases
no longer concentrated
□  Lack the immediate volume to support significant plant
processing
□  Competition forces the sharing of risk
Benchmarking Gas Production with Pipeline and Processing Capacity

Projecting the location of new Supply


  The Permian remains one of the most economically attractive regions to
operate
  Operators continue to improve recoveries and lower cost……

Drilling horizontal vs vertical

Longer Laterals

Large Completions

Optimized landing zones


Drilling faster
MMM Permian Midstream Congress

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