permian basin takeaway capacity & product markets 2014

The Only Congress Focussed On Delivering The Very Latest Production Forecasts And Takeaway Capacity For The Permian Basin.

Quantifying Production Volumes & Examining Timescales For

Establishing Takeaway Capacity & Markets To Meet Rising Production Of Crude, Condensate, Natural Gas & NGLsIn The Permian BasinAnd Ensure That Infrastructure Build Out Keeps Up With Levels Of Supply

WHAT’S NEW FOR 2014:

July 15-16, 2014 | Houston | Texas

Keith Skaar Vice President Exploration Element Petroleum

EXCLUSIVE NEW INSIGHTS FROM E&P AND MIDSTREAM SPEAKERS:

M Follow us @UnconventOilGas

www.permian-takeaway-markets-2014.com

Register By FridayMay 16, 2014

SAVE $400

• PRODUCTION FORECASTS: Providing a play-by-play analysis of projected volumes of crude, condensate, NGL and natural gas being produced in key Permian Basin plays, including the Wolfcamp, Bone Spring, Spraberry & Cline

• PIPELINE TAKEAWAY CAPACITY: Quantifying current & planned pipeline takeaway capacity for crude, condensate, natural gas & NGLs in the Permian Basin to determine whether it will be able to match rising production

• MARKET DESTINATIONS - GULF COAST & BEYOND: Breaking down market locations and capacities for Permian crude, NGLs and natural gas in the Gulf Coast & beyond to identify how demand for light sweet crude will impact producer netbacks

• CRUDE TRUCKING, RAIL & BARGE CAPACITY & CRUDE QUALITY: Analyzing and overcoming crude quality challenges specific to the Permian Basin and evaluating the capacity of truck, rail & barge to help meet takeaway requirements

• CONDENSATE BLENDING CONSTRAINTS: Assessing how blending condensates into crude pipelines is impacting the safety & economics of the product

• NATURAL GAS GATHERING & PROCESSING INFRASTRUCTURE: Examining developments in gas gathering and processing plants to reduce flaring and provide increased capacity for producers and midstream operators

Bob Dunn President Prism Midstream LLC

Sam Brown VP Pipeline Business Development Plains All American Pipeline LC

Colby D. Tiffee Commercial Marketing Manager Linn Energy

Danny Collier Vice President Commercial Optimization Valero Energy Corp.

Bernie Thomas Co-Founder & Principal Navigator Energy Services

Pat McGannon Vice President Business Development Rangeland Energy

Mike Latchem Managing Director & Chief Executive Officer Lucid Energy

Organized By:

Venue Information:

The Summit Will Be Held At:

George R. Brown Convention CenterHouston First Corporation1001 Avenida de las AmericasHouston Texas 77010 USA

Tel: 800-427-4697Web: www.houstonconventionctr.com

Register By FridayMay 16, 2014

SAVE $400

www.permian-takeaway-markets-2014.com (1) 800 721 3915 [email protected]

Dear Colleague,

As production volumes rise in the Permian Basin and the glut of sweet light crude puts pressure on existing infrastructure, E&Ps are keen to hear pipeline, rail and trucking solutions to ensure takeaway capacity meets supply and reaches the optimal markets to maximize netback. Meanwhile, midstream providers need to quantify production forecasts on a play-by-play basis to assess the business case for further build out.

The Permian Basin Takeaway Capacity & Product Markets Congress 2014 brings together a diverse variety of E&Ps and midstream companies across the Basin to compare production forecasts play-by-play with the roll out of pipelines for crude, condensate, gas and NGL.

Presentations will also assess markets and destinations, such as the retrofitting of refineries in the gulf coast to cater for sweet light crude and industry leading insights will identify current and future bottlenecks including trucking availability, market saturation and condensate blending limitations.

As the 3rd event in the successful series, this is the only congress to focus purely on the Permian midstream, analysing production play-by-play and takeaway commodity-by-commodity. This is the annual event trusted and attended by every major E&P and midstream company looking to stay in the loop with the ever changing infrastructure and markets attributed to the Permian Basin.

Please take a look through the enclosed agenda and visit

www.permian-takeaway-markets-2014.com to register.

We look forward to welcoming you in Houston in July.

Kind Regards,

Permian Basin Team

Engage In Open Discussions

Extended Networking Opportunities

Strategic Insights And Interactive Discussion

PRODUCTION FORECASTS, PIPELINE TAKEAWAY CAPACITY AND MARKET DESTINATIONSForecasting Permian Production, Mapping Out Takeaway Infrastructure Capacity And Identfying Markets With The Highest Netbacks To Match Each Well To Its Destination

Day 1Tuesday July 15, 2014

PRODUCTION FORECASTSQUANTIFYING THE VOLUME OF CRUDE, NGL AND

NATURAL GAS BEING PRODUCED IN THE PERMIAN BASIN TO DETEREMINE TAKEAWAY CAPACITY REQUIREMENTS &

PRICING DYNAMICS

8.30 Chair’s Opening Remarks

CRUDE PRODUCTION FORECASTS: PLAY-BY-PLAY

8.40 Providing A Play By Play Forecast Of Crude Oil Production Volumes And Qualities Across The Permian Basin To Quantify Takeaway Capacity Requirements

• Providing an analysis of drilling activity across the Permian and expected crude quantities produced from key play including the:

• Wolfcamp• Bone Spring• Spraberry• Cline

• Examining how production volumes will interact with other factors including takeaway capacity and global market dynamics to determine impact on pricing

• Contrasting previous forecasts with actual production and assessing causes for disparities to evaluate the reliability of today’s forecasts

• Evaluating existing deals between E&P and midstream companies for today and the future to establish takeaway gaps and opportunities for new business

Keith Skaar, Vice President Exploration, Element Petroleum

9.10 Question & Answer Session

GAS PRODUCTION FORECASTS

9.20 Examining Drilling Expectations, Flaring Quantities And Gas Price Trends To Determine Likely Gas Production Volumes And Producer Takeaway Needs

• Quantifying expectations for gas production volumes and the scale of flaring across each play to identify the existing takeaway capacity demands

• Understanding how future gas drilling is affected by factors such as the weather through the influence of gas prices and markets and evaluating likely trends for short term gas price rises

• Determining the reliability of gas supply from each basin to understand and mitigate risk of infrastructure investment

• Comparing previous gas price and production volume forecasts to the quantities delivered to markets in recent years to assess viability and confidence in new forecasts

Colby D. Ti!ee, Commercial Marketing Manager, Linn Energy


NGL PRODUCTION FORECASTS

10.00 Examining How Wet Gas Production Volumes & Fractionation Capacity In The Permian Basin Will Interact To Determine Projected Quantities Of Recoverable NGLs

• Reviewing current production of NGL across each Permian play and expectations for future volumes based on drilling plans

• Providing an overview of what NGL production volumes would look like if flaring could be eliminated and all gases were efficiently captured

• Understanding the production limitations based on existing takeaway infrastructure and fractionator capacity

• Evaluating how future NGL production will be affected by prices, land royalty disputes over flaring and midstream partnership costs

Darrel Hagerman, Vice President Commercial Development, Crestwood Midstream Partners


10.40 Morning Refreshments In The Exhibition Showcase Area

PIPELINE TAKEAWAY CAPACITYQUANTIFYING CURRENT & PLANNED PIPELINE TAKEAWAY

CAPACITY FOR CRUDE, CONDENSATE, GAS & NGLS IN THE PERMIAN BASIN TO DETERMINE WHETHER IT WILL

BE ABLE TO MATCH RISING PRODUCTION

INTRA BASIN TAKEAWAY CAPACITY

11.10 Analyzing The Latest Developments In Intra- & Inter-Basin Infrastructure To Find Solutions For Gathering Products From Isolated Wells And Deliver Them To Key Takeaway Hubs

• Reviewing the locations served, capacity and time until operation for in-field infrastructure planned and under construction

• Understanding the financial operations for new intra-basin takeaway services, including costs per mile and tariff rates to assess affordability for producers

• Determining the optimal transportation method for in-field gathering infrastructure, comparing trucks, rail and pipelines to aggregate commodities into injection sites

• Examining the scalability of in-field infrastructure solutions through their ability to affordably connect single wells, either by small independent producers or test wells from larger producers

Bernie "omas, Co-Founder & Principal, Navigator Energy Services


CRUDE PIPELINE TAKEAWAY CAPACITY

11.50 Comparing Current & Planned Crude Pipeline Takeaway Capacity To Projected Production Volumes To Determine Whether It Will Be Able To Meet Producer Needs Going Forward

• New Pipelines: Revealing the locations, time to service, total capacity volumes and capacities already sold and remaining for business to map out areas still facing capacity shortages

• Comparing the value of re-purposing and expanding old pipelines to the costs, capacities and right of way difficulties associated with new takeaway infrastructure

• Understanding the midstream company preferences for developing gathering systems straight from the well head to a refinery or only between central collection points

• Scrutinizing options for structuring the deal - comparing acreage and volume commitments and understanding the criteria and collection profiles that midstream companies require

Rick Van Eyk, Vice President Permian Midstream Strategic Development, Occidental PetroleumBrian Melton, Vice President Pipeline Marketing & Business Development, Blueknight Energy Partners


12.50 Networking Lunch In The Exhibition Showcase Area

CONDENSATE PIPELINE TAKEAWAY CAPACITY

1.20 Evaluating The Readiness Of Existing Crude Pipeline Infrastructure To Handle Condensates To Determine What Upgrades Will Be Required To Meet Rising Condensate Production Volumes

• Breaking down takeaway capacity for condensates at each stage from gathering and stabilizing to delivering to key markets

• Benchmarking transportation costs between dedicated condensate takeaway infrastructure with combined crude and condensate blended options

• Examining options for converting existing crude pipelines to optimize the handling of condensates


NGL TAKEAWAY CAPACITY

2.30 Providing Insight Into Steps Being Taken To Speed Up The Process Of Getting NGLs To Market & Whether Companies Are Prioritizing Propane, Ethane Or Unfractionated Liquids

• Understanding how companies can optimally take advantage of new NGL takeaway infrastructure in a price constrained market

• Analyzing recent trends in commodity trading to determine whether companies are prioritizing propane, ethane or unfractionated liquids and how this could impact infrastructure requirements

• Assessing the saturation of the NGL markets following recent pipeline completions and the criteria required to justify additional takeaway infrastructure in the near future

• Evaluating the role of rail in a pipeline dominated market and comparing the ability of rail and pipe to rapidly increase capacity to meet future market demands if and when required

David Barth, Managing Director NGL, DCP Midstream


GAS PIPELINE TAKEAWAY CAPACITY

3.10 Analyzing The Interaction Between Gas Pipeline Capacity, Residue Line Upgrades And Current Prices To Quantify The Business Case For New Takeaway Infrastructure To Reduce Flaring Volumes• Revealing the capacity and storage abilities of the existing gas

takeaway infrastructure compared to transportation demands from producers

• Analyzing the ability of midstream companies to adapt to rising gas prices and rapidly expand pipeline capacity if and when required by market forces

• Reviewing the ability of midstream providers to gain viable commitment for a new gas pipeline and identify an anchor tenant by getting several producers to share infrastructure

• Assessing the capacity of gas residue lines compared to takeaway demand to mitigate any bottlenecks before they occur

• Examining the state of existing gas infrastructure and reducing the scale of gas loss due to leakages to maximize capacity of product arriving at market

Mike Latchem, Managing Director & Chief Executive Officer, Lucid Energy3.40 Question & Answer Session

3.50 Afternoon Refreshments In The Exhibition Showcase Area

MARKET DESTINATIONS: GULF COAST AND BEYONDEXAMINING OPTIMAL MARKETS FOR PERMIAN CRUDE, NGLS AND NATURAL GAS TO MAXIMIZE NETBACKS AND

OPTIMIZE FLOW ASSURANCE

GULF COAST - CRUDE REFINING CAPACITY

4.20 Specifying The Plans Of Gulf Coast Refiners To Retrofit Their Refineries To Increase Capacity For Light Sweet Crude

• Comparing the Permian light sweet crude with the sour crudes gulf refineries are designed to run to assess the threat of light sweet saturation

• Quantifying the volumes of light sweet crude oil that Gulf Coast refineries are capable of taking compared to the forecasts in production out of the Permian

• Detail plans for modifying refineries in preparation for increases in sweet light crude production to maximize the size of the gulf coast market

• Assessing the quality of Permian basin production and the impact of grades getting lighter to understand the point which refiners will simply not accept it

Dan Collier, Vice President Commercial Optimization, Valero Energy Corp.Les Harding, Executive Director Crude Trading, Valero Energy Corp.


CRUDE DESTINATIONS BEYOND GULF COAST

5.00 Evaluating Market Options On The East & West Coast And The Appetite For Crude Exports To Identify Optimal Netbacks And Flow Assurance If The Gulf Coast Becomes Saturated With Light Sweet Crude

• Determining the readiness of East Coast refineries for absorbing supply of light sweet crude if the Gulf Coast becomes saturated

• Examining the demand and price drivers of refineries in California for light sweet crude

• Gaining insight into the latest developments in the debate over crude exports to determine how regulatory changes would impact crude market dynamics

• Evaluating the existing takeaway infrastructure between the Permian and markets beyond the Gulf Coast to assess the requirements for new midstream business


5.40 Chair’s Closing Remarks

5.50-6.50 Networking Drinks In The Exhibition Showcase Area


CRUDE TRUCKING, RAIL, BARGE CAPACITY & CRUDE QUALITY

ANALYZING AND OVERCOMING CRUDE QUALITY CHALLENGES SPECIFIC TO THE PERMIAN BASIN AND

EVALUATING THE CAPACITY OF TRUCK, RAIL & BARGE TO HELP MEET TAKEAWAY REQUIREMENTS

8.50 Chair’s Opening RemarksCRUDE QUALITY9.00 Understanding How The Trend Towards Lighter Crudes In The Permian Basin Will Affect Pipeline, Refinery & Rail Transportation & What Can Be Done To Mitigate The Impact On Economics• Evaluating what capabilities are in place to control which

crude qualities are injected into pipelines• Outlining the capacity of pipelines to transport lighter

crudes due to be completed and planned expansions in gravity specifications

• Understanding the impact of lighter crudes upon the volatility of the product and implications for the safety, regulatory challenges and netbacks of rail takeaway

• Examining whether modifications to refinery crude slates will allow them to absorb more light sweet crude

Sam Brown, Vice President Pipeline Business Development, Plains All American Pipeline LLC9.30 Question & Answer Session

TRUCKING AVAILABILITY & CAPACITY9.40 Examining Solutions For Securing Truck And Qualified Driver Supply For Hauling Permian Crude In The Context Of Limited Trucking Capacity• Examining trends in trucking use across the Permian to

gather crude and comparing demand with capacity to establish the need for an increase in truck supply

• Detailing the challenges associated with finding qualified truck drivers with appropriate licenses to ensure every truck remains in service when required

• Evaluating the fluctuating demand in trucking across each area of the Permian to ensure that trucks are in the optimal location to maximize product volumes getting to market

Brian Melton, Vice President Pipeline Marketing & Business Development, Blueknight Energy Partners10.10 Question & Answer Session

CRUDE BY RAIL10.20 Quantifying the contribution of rail as a backup to pipeline, including the ability to rapidly ramp up takeaway capacity when the price is right• Evaluating the pros & cons of rail vs. pipelines in terms of

safety, economics and flow assurance• Understanding the pricing mechanisms and market

destinations required for rail to become a long term competitive option to pipelines

• Dealing with the shortage of rail carts across the basin to ensure that rail is available when required

Allan Roach, Senior Vice President, Kinder-Watco Express10.50 Morning Refreshments Served In Exhibition Showcase Area


CRUDE BY BARGE11.30 Evaluating The Destinations, Dock Infrastructure, Capacity, Netbacks And Demand Forecasts Of Crude By Barge To Determine Which Crude Markets Can Be Viably Served Via Water Transportation• Mapping out the key destinations that US crude can be

transported to by barge & in what volumes to ascertain how it can help increase takeaway capacity

• Examining transportation methods from the Permian to the docks and infrastructure required for barge to become a mainstream takeaway solution

• Understanding the growth expectations of barge companies and their plans for capacity expansion, based on forecasts of the saturation of the Gulf Coast crude market

• Comparing netback and flow assurance expectations compared to traditional takeaway infrastructure to assess the long term financial viability of crude by barge

Adam Bedard, Sr Director, Strategic Planning And Market Analysis, High Sierra Energy12.00 Question & Answer Session

CONDENSATE BLENDING CONSTRAINTSEXAMINING HOW BLENDING CONDENSATES INTO CRUDE PIPELINES IS IMPACTING THE SAFETY & ECONOMICS OF

THE PRODUCT

CONDENSATE & HIGH GRAVITY CRUDE

12.10 Reviewing Regional Blending Constraints And Options For Condensate Takeaway By Rail To Ensure Condensates & High Gravity Crudes Can Be Safely & Economically Transported To Market

• Evaluating trends in condensate blending and market appetite for receiving blended condensate with crude, including Gulf Coast splitters

• Examining the capacity and flow assurance of condensate by rail and identifying optimally priced destinations

• Assessing the value of keeping pipeline and rail takeaway solutions available to allow for market fluctuations and maximize flow assurance

Pat McGannon, Vice President Business Development, Rangeland Energy


12.50 Networking Lunch Served In Exhibition Showcase Area

NATURAL GAS GATHERING & PROCESSING INFRASTRUCTURE

EXAMINING DEVELOPMENTS IN GAS GATHERING AND PROCESSING PLANTS TO REDUCE FLARING AND PROVIDE INCREASED CAPACITY FOR PRODUCERS AND MIDSTREAM

OPERATORS

GAS GATHERING

1.50 Determining The Role Of New Gas Gathering Systems And The Demands For Additional Takeaway Capacity On A Play By Play Basis To Reduce Flaring

• Reviewing the construction plans for new gathering systems and timelines for coming online to quantify the increase in gas takeaway capacity for each play

• Identifying bottlenecks and the cause for excessive flaring through a play by play analysis of takeaway capacity versus gas production volumes

• Understanding the price mechanisms on offer by midstream companies to ensure a fair deal that sees producers and land owners getting the product to market

David Stone, Permian Basin Vice President of Business Development, DCP Midstream


GAS PROCESSING

2.30 Quantifying The Capacity Of New Gas Processing Facilities Compared To The Volumes Currently Being Flared To Assess Opportunities For Additional Plants And New Business

• Examining the capacity of new processing plants under construction and the timelines towards operation compared to the demands of producers

• Evaluating what impact new gas plants could have on the drive towards flare reduction

• Revealing the proportion of new capacity that is already contracted out for and how much is remaining for producers looking to open up new business

• Assessing advances in the handling and removal of nitrogen and CO2 for natural gas streams

Bob Dunn, President, Prism Midstream LLC


3.10 Afternoon Refreshments Served In Exhibition Showcase Area

MARKET DESTINATIONS: GAS & NGLEXAMINING OPTIMAL MARKETS FOR PERMIAN GAS &

NGL, INCLUDING THE IMPACT OF LNG EXPORTS ACROSS MONT BELVIEU AND BEYOND

LNG EXPORTS: IMPACT ON GAS PRICES

3.40 Examining How LNG Exports Will Impact Market Dynamics & Prices For Permian Basin Natural Gas

• Providing an update on current and planned LNG export projects to determine volumes of natural gas they will requireEvaluating what role Permian Basin natural gas will play in supplying LNG export terminals based on the suitability of current takeaway infrastructure

• Forecasting how LNG export developments will affect overall pricing dynamics for natural gas in the U.S.A. and what impact that will have on the economics of producing gas in the Permian Basin

• Understanding the impact of LNG exports upon the destinations and capacity demands placed upon takeaway infrastructure


NGL DESTINATIONS4.20 Analyzing How Current Fractionation Capacity In Mont Belvieu Will Impact NGL Price Differentials & Examining Alternative Market Destinations To Maximize Netbacks• Determining the extent to which Mont Belvieu can

continue to serve as such a dominant market for Permian Basin NGLs in the context of increased production volumes

• Identifying fractionation capacity outside of Mont Belvieu to determine alternative market destination options in the long term

• Evaluating the netback available within and beyond Mont Belvieu to establish business cases for taking NGL elsewhere

• Understanding the flow assurance on offer through midstream companies taking NGL to other destinations


OVERCOMING LABOR SHORTAGESATTRACTING WORKERS TO THE PERMIAN BASIN TO

DRIVE TRUCKS, BUILD PIPELINES AND ULTIMATELY GET PRODUCTS TO MARKET

LABOR SHORTAGES5.00 Brainstorming Strategies For Securing Skilled Labor For Permian Basin Takeaway Infrastructure Projects• Evaluating methods to entice qualified staff out of the

cities and into West Texas and understanding how staffing shortages exist at a time of high unemployment

• Developing attractive pay structures and plans for staff that are affordable and reflect the lost business caused by staff shortages to optimize work done

• Examining the role of hired contractors across each job sector, from engineering to truck driving to enhance flexibility of the staff roster

• Reducing the costs of training new staff such as graduates without sacrificing quality of the work done

Allan Roach, Senior Vice President, Kinder-Watco Express5.30 Question & Answer Session

5.40 Chair’s Closing Remarks5.50 End Of Congress

Day 2Wednesday July 16, 2014

CRUDE BY RAIL, TRUCK & BARGE CAPACITY, CONDENSATE BLENDING CONSTRAINTS & GAS GATHERING & PROCESSING INFRASTRUCTURE DEVELOPENTS


DCP Midstream“I enjoyed the diverse information offered through different speakers presentation”

WHC Inc“I enjoyed the information regarding the long term opportunities in the permian”