Pbi15 Day Two 1130 Jeff Whitnah Penntex Midstream.1438262197 1f6r6d

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Permian Midstream Congress

PennTex Assets Platforms PennTex North Louisiana Platform

PennTex Permian Platform

  PennTex Midstream Partners, LP (NASDAQ: PTXP) owns and operates natural gas gathering and processing and residue gas and NGL transportation services to producers in the Terryville Complex in northern Louisiana, including MRD Operating, LLC   Area of Mutual Interest and Exclusivity Agreement grants PTXP the exclusive right to provide midstream services to MRD in dedicated area, including all undedicated volumes and all volumes that become available at the end of any prior commitment   PTXP currently operates one 200 MMcf/d cryogenic plant and is constructing a second 200 MMcf/d cryogenic plant scheduled to come online in October 2015. Once complete the two plants will be capable of processing a total of 400 MMcf/d. PTXP’s 15-year processing agreement with MRD has an escalating minimum throughput commitment that reaches 400 MMcf/d beginning in July 2016   PTXP has built or acquired over 100 miles of gas gathering, NGL takeaway and residue pipelines to its two cryogenic plants and the production of MRD and other Terryville producers.

  PTXP’s private parent company acquired 98.5% of Atlantic Midstream, LLC (now named “PennTex Permian”) from Atlantic Exploration (now a Centennial Resource Development subsidiary and an NGP portfolio company)   System continues to expand and now includes: □  80+ miles of low pressure 12” gas pipeline, 35+ miles of intermediate pressure 12” gas pipeline with field compression □  60 MMcf/d of cryogenic processing capacity □  8” NGL pipeline with capacity to deliver 7,800 bbl/d □  Plant residue line interconnect with El Paso Natural Gas, duel meter interconnect for redundancy with the capacity to deliver in excess of 120 MMcfd   Over 60k gross acres from several producers dedicated to the processing plant under long-term agreements. Long term gas and liquid sales agreements in place ing takeaway reliability in-place and active discussions with other producers in the region to expand footprint

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PennTex Permian Platform Detail   Gathering System

NM

□  80+ miles of low pressure 12” gas pipeline

Midland Basin

Delaware Basin

□  35+ miles of intermediate pressure 12” gas pipeline with 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 □  Residue gas delivered into El Paso’s 36” pipeline in Reeves County, TX

Compr essor Station 5

  NGL Pipeline

AMS Plant EPNG Delivery

Compressor Station 1

Reeves

20” Loop Line Phase 1

Compr essor Station 7

□  NGL’s delivered into Lone Star via 25 miles of 8” pipeline with capacity equal to 300-400 MMcf/d of plant inlet. □  Firm agreement in place for sale of NGL’s to Lone Star

Compressor Station 4

Pecos

Compr essor Station 2

Dedicated Acreage

20” Loop Line Phase 2

Receipt Points / CDP EPNG Sales Point System EP Natural Gas Line

Compr essor Station 3

Compr essor Station 6

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?

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Trending Rig Activity

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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

Processing   Plant

Gas  Processing  Plant  plus  15  miles  of  Gathering  &  Compression 18,000  Mcf/day  Production

Drilling  to  Hold  Acreage

Processing   Plant

Gas  Processing  Plant  plus  15  miles  of  Gathering  &  Compression 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 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

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Permian Midstream Congress