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+      Rick Moncrief    Executive Vice President     Business Development        Caiman Energy               d     Marcell...
+    Today’s Topics    • Chicken or the Egg    • Caiman Development    • Marcellus Volume Ramp-Up    • Residue Takeaway   ...
Chicken or the Egg                                                               3                           What Comes Fi...
Chicken or the Egg                                                                                                        ...
Chicken or the Egg                                                                                        5               ...
Caiman Eastern Overview                                          Caiman has a franchise position                          ...
+ Rich Marcellus Processing Capacities         1,400         1,200         1,000           800           600           400...
+aiman ProcessingC                        Forecasted Processing Volumes        1,400        1,200        1,000   MMcf/d   ...
9Caiman Fractionation Development                           Forecasted Fractionation Volumes             80,000           ...
+ Residue Takeaway                                                     TETCO (Team 2012 Project) by Spectra               ...
+ NGL TakeawayMultiple ethane alternatives have materialized for Marcellus producers                                      ...
+ NGL TakeawayDrastically changing NGL supply / demand market in the NortheastPADD I Mixed NGL Supply       (1)           ...
+ Conclusion  Chicken or the Egg Dilemma   • Marcellus beyond this issue   • Utica will be able to utilize Marcellus infra...
Everything Midstream www.CaimanEnergy.com     214.580.3700     Rick Moncrief Executive Vice President
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Caiman Energy Rick Moncrief Executive Vice President Business Development

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Caiman Energy Rick Moncrief Executive Vice President Business Development

  1. 1. + Rick Moncrief Executive Vice President Business Development Caiman Energy d Marcellus Midstream March 2012
  2. 2. + Today’s Topics • Chicken or the Egg • Caiman Development • Marcellus Volume Ramp-Up • Residue Takeaway • NGL Takeaway
  3. 3. Chicken or the Egg 3 What Comes First?Producer – The Egg? Confidence in reserves underpins midstream developmentMidstream – The Chicken? Confidence in reserves can not be determined without infrastructure to allow production dataProducers and Midstream operators must determine how to provideappropriate assurances to allow for timely infrastructuredevelopment 3
  4. 4. Chicken or the Egg 4 Rapid increase in activity has followed as processing infrastructure comes online(1) Rig Count in Caiman Footprint Caiman Producer Permits Fort Beeler in service(# of Active Rigs) (# of Permts) 18 187 200 15 12 150 118 9 101 100 6 3 50 0 0 Se 09 Se 0 Se 11 Ju 9 Ju 0 Ju 1 M 9 M 0 M 1 M 09 Ja 9 M 0 Ja 0 M 11 1 N 9 N 0 N 1 l-1 -0 -1 -1 -0 -1 -1 -1 0 1 1 0 1 1 p- p- p- l- l- n- n- n- - - ov ov ov ay ay ay ar ar ar 2009 2010 2011 Ja1. Represents 4-month moving average. Counties referenced include Brooke, Marshall, Wetzel, Ohio and Tyler Counties in West Virginia and Monroe County in Ohio. 4
  5. 5. Chicken or the Egg 5 Marcellus gas development can be dramatic once infrastructure in place Using 6.2 Bcf type curve, Producers can generate 100 MMcfd running 1 rig Type Curve (5,000 Ft. Laterals) One Rig Volumes (5,000 Ft. Laterals) 6 100 90 5 80 70 4 60MMcd/d MMcd/d 3 50 40 2 30 20 1 10 - - 5
  6. 6. Caiman Eastern Overview Caiman has a franchise position in the rich gas area of the Marcellus Shale  Franchise system: ~231,000 dedicated acres Ohio Washington  Residue Takeaway capacity via TETCO  Fort Beeler NGL Processing and De-ethanization Complex Marshall  545 MMcf/d of gas processing capacity by Q3 2012 Belmont  30,000 Bbls/d of de-ethanization in-service by mid 2013  Moundsville Fractionation Moundsville Complex (Fractionation)  72,500 Bbls/d of C3+ fractionation capacity by Q4 2013 Greene  Taylor NGL Processing and De-ethanization Complex TETCO  420 MMcf/d gas processing capacity in-service by year-end 2013  15,000 Bbls/d of de-ethanization in-service by early 2014 Fort Beeler Complex (NGL Processing & De-  200 miles of gathering lines by year-end 2013 Monroe ethanization)  Over 50 miles of condensate gathering lines by year-end 2013 Taylor Complex  50 miles of ethane lines by year-end 2013 (NGL Processing & De- ethanization)  $1.3 billion invested capital in infrastructure by year-end 2013  Substantial organic growth opportunities from liquids rich Marcellus and Upper Devonian Shales in existing acreage  Adjacent to rich gas Utica Shale in Ohio Marion Wetzel Pipeline Complete Dedicated Acreage Tyler Pipeline Under Construction Acreage of Producers with Volumetric Pipeline Proposed Processing Commitments (1) NGL Pipeline Under Construction Ethane Pipeline Under Construction Texas Eastern (TETCO) (2) Doddridge___________________________1. Represents acreage of Chesapeake and CONSOL/Noble that is currently not dedicated to Caiman but for which Caiman has volumetric commitments from each company. Acreage estimate based on information available to Caiman.2. Primary residue gas takeaway pipeline owned and operated by Spectra. 16
  7. 7. + Rich Marcellus Processing Capacities 1,400 1,200 1,000 800 600 400 200 - Caiman Energy MarkWest REX / Stonehenge •Total rich Marcellus processing capacity will reach 2 Bcf by year-end 2013 • Caiman will represent ~ 40% of this capacity •300% increase since year-end 2010Rich Marcellus play one of the most prolific and economical natural gas shale basins in NA___________________________Source: MarkWest capacities taken from Chickasaw Presentation in December 2011Source: Rex Energy Corporate Presentation in March 2012.
  8. 8. +aiman ProcessingC Forecasted Processing Volumes 1,400 1,200 1,000 MMcf/d 800 600 400 200 - Processing Facilities Cryo I – 125 MMcf/d – Fort Beeler Complex – April 2011 Cryo II – 210 MMcf/d – Fort Beeler Complex – February 2012 Cryo III – 210 MMcf/d – Fort Beeler Complex – August 2012 Cryo IV – 210 MMcf/d – Fort Wetzel Complex – March 2013 Cryo V – 210 MMcf/d – Fort Wetzel Complex – October 2013
  9. 9. 9Caiman Fractionation Development Forecasted Fractionation Volumes 80,000 70,000 60,000 50,000 Bbls/d 40,000 30,000 20,000 10,000 - Fractionation Facilities Frac I – 12,500 Bbls/d – Moundsville Complex - March 2012 Frac II – 30,000 Bbls/d – Moundsville Complex – October 2012 Frac III – 30,000 Bbls/d – Moundsville Complex – October 2013 9
  10. 10. + Residue Takeaway TETCO (Team 2012 Project) by Spectra  Adds 200 MMcf/d – Late 2012 Appalachian Gateway Atlantic Access by WMB  Adds 350 MMcf/d – Late 2014 Appalachian Gateway TETCO REX Northeastern Express (Team 2012)  Dominion Expansion – Late 2012 Atlantic Express REX Northeastern Express Proposed extension of Rockies NiSource Express Pipeline EQUITRANS NiSource West Side Expansion  Proposed expansion – Late 2014
  11. 11. + NGL TakeawayMultiple ethane alternatives have materialized for Marcellus producers Ethane Residue takeaway waivers NOVA  Contracted to take 50,000 Bbl/d from the Marcellus  Caiman has contracted 15,000-20,000 Bbls/d of this takeaway TEPPCO  190,000 Bbls/d of takeaway capacity  Other opportunities Shell Cracker  Shell recently announced plans to further evaluate an ethane cracker in Beaver County, PA
  12. 12. + NGL TakeawayDrastically changing NGL supply / demand market in the NortheastPADD I Mixed NGL Supply (1) Surging NGL volumes changing (%)(Bbls/d) 60% market dynamic in the northeast300,000 ~54% CAGR 2011-2016250,000 45%200,000150,000 30% Midstream Focus on:100,000 15% 50,000 0 0% • Value 2011 2012 2013 2014 2015 2016  Maximize value for each individual NGL component U.S. Gas Plant Fractionation: PADD I Market Share (1) • Take-away  Keep gas and liquids flowing
  13. 13. + Conclusion Chicken or the Egg Dilemma • Marcellus beyond this issue • Utica will be able to utilize Marcellus infrastructure to avoid this hurdle Downstream Infrastructure Expansions Progressing • With Marcellus proven and Utica proving-out, necessary downstream projects emerging  Residue expansions  NGL takeaway alternatives  Further expansions / development will be required as Utica volumes develop
  14. 14. Everything Midstream www.CaimanEnergy.com 214.580.3700 Rick Moncrief Executive Vice President

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