Oge Energy Corp · NYSE:OGE
Oge Energy — Merger or Acquisition (March 2013)
36 slides from Oge Energy's merger presentation, Mar 15, 2013
Slide 1: Investing Today for Tomorrow's Energy Infrastructure
Investing Today for Tomorrow’s Energy Infrastructure Investor Introduction and Overview March 2013 NYSE: CNP investors.centerpointenergy.com NYSE: OGE oge.com/investor-relations
Slide 2: Forward Looking Statement
2 investors.centerpointenergy.com March 2013 oge.com/investor-relations Forward Looking Statement This document does not constitute an offer to sell or a solicitation of an offer to buy any securities described herein, nor shall there be any sale of such securities in any state or jurisdiction in wh
Slide 3: Transaction Overview
3 investors.centerpointenergy.com March 2013 oge.com/investor-relations CenterPoint Energy (“CNP”), OGE Energy Corp. (“OGE”) and ArcLight Capital (“ArcLight”) are forming a midstream partnership composed of CNP’s Field Services and Interstate Pipelines and OGE’s and ArcLight’s Enogex Midstream bus
Slide 4: Midstream Partnership Formation
4 investors.centerpointenergy.com March 2013 oge.com/investor-relations 50% Governance (NYSE:OGE) (NYSE:CNP) Midstream Partnership General Partner Midstream Partnership Formation 50% Governance 40% IDR Interest 60% IDR Interest CNP Assets: Pipelines and Field Services Enogex Assets 59% LP Interest 2
Slide 5: Strong Credit Metrics and Liquidity
5 investors.centerpointenergy.com March 2013 oge.com/investor-relations CenterPoint Energy Resources Corp. (CERC) A Subsidiary of CenterPoint Energy General Partner Strong Credit Metrics and Liquidity Midstream Partnership (1) The Midstream Partnership Term Loan will have a limited guarantee of coll
Slide 6: Benefits of the Partnership
6 investors.centerpointenergy.com March 2013 oge.com/investor-relations Benefits of the Partnership Enhanced scale, with more than $10.7 billion of combined assets Geographic diversification, with operations in major natural gas and liquids- rich producing areas of Oklahoma, Texas, Arkansas and
Slide 7: Midstream Partnership Increased Scale, Scope and Supply Diversity
7 investors.centerpointenergy.com March 2013 oge.com/investor-relations Midstream Partnership Increased Scale, Scope and Supply Diversity
Slide 8: Diversified Asset Base
8 investors.centerpointenergy.com March 2013 oge.com/investor-relations Diversified Asset Base Source: SEC Form 10-K as of December 31, 2012 and other Company materials. Area CNP Midstream Enogex New Midstream Partnership 8,400 miles Interstate pipelines Nearly 2,300 miles Intrastate pipelines 8,400
Slide 9: Balanced Mix of Dry Gas and Liquids-Rich Plays
9 investors.centerpointenergy.com March 2013 oge.com/investor-relations Mississippi Lime Balanced Mix of Dry Gas and Liquids-Rich Plays Significant Producer Activity Across Key Conventional and Shale Basins Unconventional Plays Wet Gas Predominantly Dry gas Heat Map Index 0 – 25 Rigs 26 – 50 Rigs 51
Slide 10: Expanded High Quality Producer Customer Base
10 investors.centerpointenergy.com March 2013 oge.com/investor-relations Expanded High Quality Producer Customer Base Minimal Customer Overlap Average Throughput, MMBtu/d Table reflects each Company’s top ten producer throughput as of December 31, 2012 CenterPoint Energy Field Services Enogex
Slide 11: APPENDIX: Background Information
11 investors.centerpointenergy.com March 2013 oge.com/investor-relations APPENDIX: Background Information
Slide 12: CenterPoint Energy Background Information
12 investors.centerpointenergy.com March 2013 oge.com/investor-relations CenterPoint Energy Background Information
Slide 13: CenterPoint Energy: Domestic Energy Delivery with 147 Year Operating History
13 investors.centerpointenergy.com March 2013 oge.com/investor-relations CenterPoint Energy, Inc (NYSE: CNP) Domestic Energy Delivery with 147 Year Operating History Strategically located assets and attractive service territories that provide operating scale and diversification of risk Regulated
Slide 14: Interstate Pipelines
14 investors.centerpointenergy.com March 2013 oge.com/investor-relations Three pipeline segments across nine states- CEGT with Line CP, MRT, SESH – Long-term agreements with affiliated LDCs extended into 2021 – Nearly 40% of contracted demand serves LDCs and industrial load in and around system –
Slide 15: Field Services
15 investors.centerpointenergy.com March 2013 oge.com/investor-relations Secure core business through superior customer service and product offerings – Attractive margins despite highly competitive business dynamics – Relatively low risk business model utilizing volume commitments and guaranteed r
Slide 16: OGE Background Information
16 investors.centerpointenergy.com March 2013 oge.com/investor-relations OGE Background Information
Slide 17: OGE Energy Corp. Domestic Energy Delivery
17 investors.centerpointenergy.com March 2013 oge.com/investor-relations OGE Energy Corp. (NYSE: OGE) Domestic Energy Delivery with 111 Year Operating History Key financial objectives: − 5% to 7% long-term earnings growth rate − Stable and growing dividend − Strong credit metrics − Reduce earnings
Slide 18: Enogex, LLC
18 investors.centerpointenergy.com March 2013 oge.com/investor-relations Enogex, LLC Expanding midcontinent footprint primarily in the gathering and processing businesses − Over 2.5 million acres of long-term acreage dedications in Western Oklahoma, the Texas Panhandle and the Southeast Cana regio
Slide 19: Detailed Asset Overview CenterPoint Energy Midstream
19 investors.centerpointenergy.com March 2013 oge.com/investor-relations Detailed Asset Overview CenterPoint Energy Midstream
Slide 20: CenterPoint Energy Midstream Asset Overview
20 investors.centerpointenergy.com March 2013 oge.com/investor-relations CenterPoint Energy Midstream Asset Overview
Slide 21: CenterPoint Energy Gas Transmission (CEGT)
21 investors.centerpointenergy.com March 2013 oge.com/investor-relations Diverse supply sources from Haynesville, Fayetteville, Woodford and Barnett shale plays Access to Gulf Coast via Perryville Hub™ / SESH Diverse customer base with strong credit profile Note: The above data does not reflec
Slide 22: CNP's Line CP
22 investors.centerpointenergy.com March 2013 oge.com/investor-relations Sub-segment of CEGT with its own fixed fuel treatment running from Carthage, TX to Perryville, LA Provides market access for supply from the Barnett and Haynesville Shales Access to Gulf Coast and other off-system markets
Slide 23: CNP's Perryville Hub
23 investors.centerpointenergy.com March 2013 oge.com/investor-relations SONAT PV Core CGT PV Core SESH FM-65 Core TENN 800 Core SESH / SONAT Header GSPL Header MEP Header CGT CP ANR CP TGC CP TGT CP TGT PV core TENN 100 Core TGC Core ANR PV Core TETCO W Monroe Core GSPL W Monroe Core MRT PV Core St
Slide 24: CNP's Mississippi River Transmission (MRT)
24 investors.centerpointenergy.com March 2013 oge.com/investor-relations Barnett Shale Woodford Shale Fayetteville Shale Haynesville Shale Access to key supply source shale plays Significant demand from large LDC customer Access to Gulf Coast via Perryville Hub™ / SESH CNP’s Mississippi River
Slide 25: CNP's Southeast Supply Header (SESH)
25 investors.centerpointenergy.com March 2013 oge.com/investor-relations CNP’s Southeast Supply Header (SESH) 50/50 joint venture between CenterPoint and Spectra Energy − CenterPoint provides field operations − Spectra provides commercial operations − SONAT undivided interest in first 115 miles (5
Slide 26: CenterPoint Energy Field Services (CEFS)
26 investors.centerpointenergy.com March 2013 oge.com/investor-relations – Anadarko basin – Arkoma basin (includes Woodford and Fayetteville shales) – Ark-La-Tex basin (includes Haynesville shale) CenterPoint Energy Field Services (CEFS) Statistics reflect July 2012 Anadarko Basin Arkoma Basin Ark-L
Slide 27: Detailed Asset Overview Enogex LLC
27 investors.centerpointenergy.com March 2013 oge.com/investor-relations Detailed Asset Overview Enogex LLC
Slide 28: Enogex Asset Overview
28 investors.centerpointenergy.com March 2013 oge.com/investor-relations Enogex Asset Overview
Slide 29: Large Acreage Dedications
29 investors.centerpointenergy.com March 2013 oge.com/investor-relations Large acreage dedications Western Oklahoma, the Texas Panhandle and Mississippi Lime Greater Granite Wash (Tonk/Clev/Marm/GW) (rich) Apache PVR Chesapeake Questar Devon Cimarex NW Cana (less rich) Devon Cimarex Continental Ques
Slide 30: Enogex Rich Gas Header System
30 investors.centerpointenergy.com March 2013 oge.com/investor-relations Enogex Rich Gas Header System Source: Enogex management presentation (November 2012)
Slide 31: Enogex Processing Plants
31 investors.centerpointenergy.com March 2013 oge.com/investor-relations Enogex Processing Plants Nameplate Processing Year Capacity Plant Installed Type of Plant (MMcf/d) Calumet 1969 Lean Oil 250 Thomas 1981 Cryogenic 135 Wetumka 1983 Cryogenic 60 Cox City 1994 Cryogenic 60 Canute 1996 Cryogenic 6
Slide 32: Enogex Expanding Position in the Mid-Continent
32 investors.centerpointenergy.com March 2013 oge.com/investor-relations Enogex Expanding Position in the Mid-Continent
Slide 33: Enogex Transportation
33 investors.centerpointenergy.com March 2013 oge.com/investor-relations ● Strategically located transportation assets − ~2,250 miles intrastate transportation pipelines Average throughput of ~2.1 TBtu/d − OG&E and PSO are two largest customers − Deliver natural gas to 15 electric generation facil
Slide 34: Enogex Storage Overview
34 investors.centerpointenergy.com March 2013 oge.com/investor-relations Enogex Storage Overview The two natural gas storage facilities on the east side of the Enogex system provide approximately 24 Bcf of working gas capacity to customers. The Wetumka storage field − Services the majority of th
Slide 35: CenterPoint Energy, Inc (CNP) and OGE Energy Corp (OGE) have included the non-GAAP financial
35 investors.centerpointenergy.com March 2013 oge.com/investor-relations CenterPoint Energy, Inc (CNP) and OGE Energy Corp (OGE) have included the non-GAAP financial measure EBITDA based on information in their respective 2012 Form 10-K and the combined partnership. EBITDA is a supplemental non- GAA
Slide 36: Reconciliation of EBITDA to GAAP
36 investors.centerpointenergy.com March 2013 oge.com/investor-relations Reconciliation of EBITDA to GAAP (A) As of November 1, 2010, Enogex Holdings' earnings are no longer subject to tax (other than Texas state margin taxes) and are taxable at the individual partner level. (B) Includes amortizatio