NGLs Forum

Supplies, Markets, and Infrastructure Development

September 26-27, 2011, Hilton Post Oak Hotel, Houston, Texas Day One Monday, September 26, 2011 7:15 Conference Registration and Continental Breakfast 8:15 Chairman's Welcome and Opening Remarks James H. (Rell) Tipton, Jr., Partner, Energy Transactions/Projects Practice Group Leader, Vinson & Elkins LLP 8:30 NGL Supply Outlook Shift of E&P companies to oil/NGLs What is the overall outlook for rich gas production? What is the current supply outlook from the major plays -- Eagle Ford, Marcellus, Bakken, Granite Wash o rig count in each play Other sources of NGLs economics for producers -- Are they playing a waiting game with project sponsors for new facilities? NGL transportation costs on a Btu basis o how logistics costs impact well-head prices o variation from different basins What is the real gas price uplift from after processing? Anne Keller, Founder & President, Midstream Energy Group, Inc. Domestic and International Demand Outlook -- Ethane, Butane, Propane, and Natural Gasoline 9:00 Ethane Demand Availability of ethane in the US during the next 5 to 10 years Ethane cracking capability of the US petrochemical industry, given recently announced ethylene capacity expansion plans being considered by several petrochemical companies How will the supply and demand for ethane in Canada impact US ethane balances? Will there be enough US ethane supply to support the future needs of the US ethylene industry? What producing regions in the US will be the swing suppliers for ethane and will there be a need for Marcellus ethane to come to the Gulf Coast?

Most likely price range for ethane that will sustain its extraction from natural gas and maintain its status as the most economical ethylene feedstock How are ethylene co-products going to be produced if ethane remains the dominant feedstock for ethylene production? Major risk factors that could derail the future for ethane Peter A. Fasullo, Principal & Founder, EnVantage, Inc. Keynote Address 9:30 The Dow Chemical Company -- Driving Transformation and Fueling Growth Plans to increase ethylene and propylene production to meet demand growth in the Americas Projects targeted at increasing ethylene supply and ethane cracking capabilities in the U.S. Gulf Coast region over the next six years Projects to increase the companys propylene supply over the next seven years Integration of U.S. operations into low-cost feedstock opportunities available from increasing supplies of U.S. shale gas in the Marcellus and Eagle Ford shale regions Investments to support the companys transformational Corporate strategy Manufacturing job creation in America James R. (Jim) Fitterling, Executive Vice President and President, Corporate Development & Hydrocarbons, The Dow Chemical Company 10:00 Networking & Refreshment Break 10:30 Butane/Natural Gasoline Outlook Forecast of NGL supply from natural gas production Outlook for the US refining industry How will the addition of ethanol to gasoline impact the refining industry and butane and natural gasoline? Production of NGLs from natural gas Production and demand for NGLs by refineries What does the export market look like for NGLs? Use of natural gasoline as a diluent for asphaltic crude; to send oil sands production through pipelines Lynn Westfall, Executive Vice President, Turner Mason & Co. 11:00 Retail Propane Demand Outlook Outlook for space heating and minor end uses Factors affecting demand -- Fuel switching or consumer conservation or something else entirely? Impact of increasing supplies on wholesale price, etc. Potential impact of increasing ethylene feedstock demand for ethane and potential for new chemical feedstock markets for propane Gulf Coast waterborne propane exports and the impact on propane availability Dan Lippe, Principle, Petral Worldwide, Inc. 11:30 International Outlook Imports and Exports

International LPG trade flows -- Shifted as a result of increased demand from developing economies and decreased supply from traditional sources US LPG production -- Increasing as a result of rich shale gas development US LPG import volumes -- Decreasing in response to increased domestic production US LPG export volumes -- Becoming an increasingly critical supply source for international markets because of competitive cost position Middle East LPG demand for domestic chemical production -- Impacting international exports Enterprises terminal capabilities and expansion plans Lynn Bourdon, Senior Vice President, Refinery & Petrochemical Services/NGL Marketing, Enterprise Products Operating LLC 12:00 Luncheon Pricing and Contracting 1:15 Outlook for NGL Pricing How are NGLs priced? Relative impact of oil vs. natural gas prices Natural gas to crude spreads Historic volatility Differences between light and heavy ends Outright prices vs. fractionation margins Fractionation spreads Too much or too little? How to mitigate volatility in processing, especially for MLPs Hedging for consumers Is it worth paying for options? Recent growth of NGLs derivatives markets William (Bill) McAdam, President & CEO, Aux Sable Liquid Products Nicholas Dazzo, Vice President, Koch Supply & Trading L.P. 2:15 Trends in NGL Contracting NGL contracting strategies -- End-user requirements, producer requirements Types of contract structures: o keep whole o percentage of proceeds/profits o fixed fee basis o other mechanisms Changes in contract terms: Compliance requirements, revised terms Contract timing and conditions Kelly Knopp, General Manager, NGL and Olefins Marketing, Williams Midstream Infrastructure Current State, Requirements, and Plans for Development 2:45 NGL Infrastructure Current Constraints; Future Constraints vs. Surpluses

Where are the constraints today? Where will new infrastructure constraints and surpluses develop? Will there be enough gas processing capacity? Where will new Y-grade (mixed stream) pipelines be needed? State of fractionation Too little or too much? NGL storage Location? Enough to handle refinery butane summer surpluses? Could increasing propane supply in the Marcellus, combined with declining propane demand at the retail level, drive down utilization on purity product pipelines? Export terminal capacity More needed for propane exports? E. Russell Braziel, Vice President Sales & Marketing, Bentek Energy 3:15 Networking & Refreshment Break 3:45 Rockies, Bakken, and DJ/Niobrara -- Connecting NGLs to Distant Markets Bakken Little infrastructure; NGL solutions needed to capture value and accommodate growth Other Rockies CO, WY, and UT have NGL pipeline access; expansions may be required [Case Study] DCP Rockies and Niobrara o Rockies NGL production growth outlook o NGL Pipeline takeaway to Conway and premium Belvieu markets [Case Studies] Williams and ONEOK o Overland Pass Pipeline expansion o Conway fractionator and storage expansions o Bushton fractionator expansion o Sterling pipeline expansion Other infrastructure for western and midcontinent NGLs [Case Study] Vantage Pipeline o taking specification ethane production from Tioga gas plant in the Bakken to Nova Chemicals Corp. in Canada Don Baldridge, Vice President, Natural Gas and NGL Marketing, DCP Midstream Gord Salahor, Vice President, Vantage Pipeline Canada ULC Mac Hummel, Vice President, NGL and Olefins, Williams Midstream 5:15 Close of Day One 5:15-6:15 Wine & Cheese Networking Reception Day Two -- Tuesday, September 27, 2011 7:45 Continental Breakfast

8:15 Chairman's Review of Day One

James H. (Rell) Tipton, Jr., Partner, Energy Transactions/Projects Practice Group Leader, Vinson & Elkins LLP 8:30 Marcellus and Utica NGL Solutions [Case Study] Dominions Recent NGL Projects Why the Natrium Plant is ideally positioned to process Marcellus and Utica shale production o size o why Natrium? NGL markets Value of NGLs in the region How ethane represents an opportunity Marc A. Halbritter, Managing Director, Commercial Activities, Gathering, Dominion Transmission Inc. [Case Studies] MarkWest Energy Partners/Sunoco Logistics Project Mariner Mariner West o 65,000 Bbl/d ethane pipeline to Sarnia o MarkWest Liberty Houston and Majorsville plant enhancements to recover ethane; construction of 45-mile ethane pipeline o Sunoco conversion of existing 420-mile LPG and refined products pipeline to ethane service o operational in 2012 Mariner East o 50,000 Bbl/d ethane pipeline to Philadelphia; scalable o direct access to Gulf Coast markets MarkWest to construct 45-mile ethane pipeline Sunoco conversion of existing 250-mile refined products pipeline to ethane service; construction of refrigerated ethane storage and ship loading facilities Use of refrigerated LPG carriers for transport to Gulf Coast Operational in 2012-2013 Scott J. Garner, Vice President, Corporate Development & Joint Venture Management, MarkWest Energy Partners L.P. [Case Study] El Paso/Spectra Marcellus Ethane Pipeline System (MEPS) Overall project scope Estimated cost In-service date Project timeline/milestones TGP Pipeline FERC abandonment Commercial market dynamics Expandability Russell A. Mahan, Vice President, Business Development, El Paso Midstream Group

[Case Studies] Caiman Energy Marcellus NGL Infrastructure Development Hear an update/progress review of Caiman Energys major investment in processing, Y-grade pipeline, fractionation, and transportation. Ft. Bealer Processing Complex Phase II completion (2011), 320,000 MMB/d Phase III Additional 200,000 MMB/day (2012) Y-grade pipeline (2011) Fractionation Complex 12,500 b/d (2011); Phase II 15.000 b/d (2012) Marketing alliance Inergy Ethane options Jack Lafield, President & CEO, Caiman Energy LLC [Case Study] Williams Marcellus Assets and Plans Williams history in the Marcellus to date (gas pipes, E&P, and midstream) Recent projects -- $1B spent on midstream by year end 2011 Williams view on North American ethane supply/demand Ethane blending as short and mid-term solutions in the Marcellus James Scheel, Vice President, Business Development, Williams Midstream 10:30 Networking & Refreshment Break 11:00 Eagle Ford, Avalon, and Permian NGL Infrastructure [Case Studies] Copano Energy Houston Central Complex - Processing and fractionation expansions o processing capacity to be increased from 700 MMcfd to 1.1 Bcf/d o fractionation capacity to be increased from 22,000 b/d to 44,000b/d Liberty Pipeline o 75,000 b/d, 83-mile NGL pipeline to Formosa Point Comfort Complex and NGL storage facility o joint venture with Energy Transfer Rob Schaefer, Director, NGL Marketing and Logistics, Copano Energy, L.L.C. [Case Studies] Energy Transfer/Lone Star Rich Eagle Ford Mainline (REM) 230 miles 0f 30-36 pipe; capacity of 600 MMcf/d Lone Star fractionation facility at Mont Belvieu, Texas -- 100,000 barrels per day Greg Bowles, Senior Vice President, Lone Star NGL LLC [Case Study] DCP Sand Hills Pipeline, LLC Rapid NGL production growth from new plays in the Eagle Ford, Avalon, Upper Penn, and Wolfcamp have overwhelmed traditional NGL infrastructure. In order to continue growing,

companies like DCP Midstream are moving forward with plans to construct, own, and operate new NGL pipelines, gas gathering systems, and gas processing plants in South Texas, West Texas, and Southeast New Mexico. Examine how NGL production growth has filled existing infrastructure from the Permian Basin area Review supply and demand needs in South Texas DCPs production growth and needs The Sandhills solution Sharon Beemer, Managing Director, DCP NGL Services LLP 12:15 Close of Conference