In reviewing some of the MUM presentations, I want to identify some key information in order to provide overview of the conference.

Crestwood Midstream – Edmund Knolle

• NE Marcellus reserves will supply the region for generations.
• More infrastructure required to bring regional gas to regional markets
• NE market demand will grow significantly over next 10 years driven by coal retirements and new gas fired power plants sited near low cost reserves
• Increased regional use of natural gas for electric generation will increase short term volatility and the need for regional liquidity and balancing services

Navigator Energy Services – John O’Shea

• Producer Budgets 2015
o Cabot   +4.3%
o Southwestern +8.3%
o EQT   +4.2%
o Range  (18.2%)
o Rex   (44.4%)
o Antero  (41.0%)

Kinder Morgan – Karen Kabin

Kinder Morgan Projects
• Utopia East – 330 miles, 12”
o Ethane/Ethane Propane Mix
o Harrison County, OH to Windsor Ontario
o January 1, 2018 in-service
• Utopia West – 450 miles, 12”
o Natural Gasoline (Diluent)
o Harrison County, OH to Illinois
o January 1, 2018 in-service
• Utica Marcellus Texas Pipeline
o Purity NGL’s, mixed NGL’s, Condensate to the U.S. Gulf Coast
o TPG Station
o 155 miles new build in the Appalachian Basin
o 1005 miles of conversion
o 200 miles new build from TPG Station 40
o Mont Belvieu fractionation and dock access

Blue Racer Midstream – William Scott
• BRM  (Current  Assets)
 
•647  miles  of  gathering  pipeline 
•400  MMcf/d  of  processing  capacity   
•47,000  Bbls/d  of  frac capacity   
•2,500  Bbls/d  of  condensate  capacity 
•133 miles  of  NGL  and  condensate  transportation
 
• BRM  (Assets  Under  Construc7on)
 
•200 miles  of  gathering  pipeline 
•400 MMcf/d  of  processing  capacity   
•76,000 Bbls/d  of  frac capacity 
•32 miles  of  NGL  and  condensate  transportation

• Natrium Complex

o Natrium  I  Processing  &  Fractionation  became  fully  operational  in  May  2013 
o Natrium  II  Processing  Plant  (200  MMcf/d)  became  fully  operational  in April  2014 
 Location:  Ohio  River  in  West  Virginia 
 Resources:  Two  200  MMcf/d  cryogenic  processing  plants  (400  MMcf/d  of  Processing  Capacity) 
 Fractionation:  123,000  Bbls/d  (Q3 2015) 
• 2,500 Bbls/d  of  onsite  stabilization 
• Rail,  trucking  and  Barge(under construction) 
o Residue  takeaway  options 
o Liquids  handling  options
 NGL’s 
 Condensate

• Berne  I  &  II 
o Location:  NW  Monroe  County,  Ohio 
o 400  MMcf/d  under  construction
 Berne  I: 200 MMcf/d  cryogenic processing  plant  that  is  mechanically  complete  with  an operation  date  of  Q1  2015
 Berne  II: 200 MMcf/d  cryogenic processing  plant  with  expected  Q2 2015  completion 
o Site  can  accommodate a third plant 
o Residue  Takeaway:  Currently  TETCO 
• Liquids  Handling: NGLs 
• Condensate   ]-­‐Both  to  Natrium  through  8”  &  10”  pipelines

• The Utica: Challenges Ahead

o The  next  two  years  is  pivotal 
 Bulk  of  natural  gas  infrastructure  decisions made 
 Decisions  based  on  the  supply/demand needs   
 Inadequate  infrastructure  to  meet  supply 
o Higher  upfront  costs  with  new  pipeline  projects 
 Promotes potential JVs with  midstream companies 
o To  alleviate  those  challenges
 Midstream  companies  such  as  Blue  Racer will  continue to  increase  their  gathering and  processing  capacity  over  the  next  10  years  to  meet  the  supply   
• An  estimated ~ $30billion  will  need to be spent  on  infrastructure  development  to meet  the  supply

Joseph Barone
President
ShaleDirectories.com
610.764.1232

www.shaledirectories.com