2014 dug permian basin jarrett vick, president permian transport ...

2014 DUG PERMIAN BASIN JARRETT VICK, PRESIDENT PERMIAN TRANSPORT & TRADING MIDLAND, TX

AGENDA • Who We Are/What We Do • Market Conditions – Production now and projected – Midstream infrastructure • Permian Basin (PB) Pipeline • Permian Basin Rail • Potential Disruptions

• Challenges • Conclusion

WHAT WE ARE NOT

CORE OPERATIONS: CRUDE TRANSPORT

CORE OPERATIONS: CRUDE TRANSPORT Contract

First Purchaser Lease

Truck Transportation

PTT Assets

Refinery

Pipeline

Pipeline Injection

PTT TRUCK YARD LOCATIONS

PERMIAN BASIN PERMIAN BASIN

PTT OPERATED STATIONS

PB CRUDE PRODUCTION PROJECTION

PB CRUDE TAKEAWAY CAPACITY 3000 2500

2000 1500 1000 500 0

Permian Crude Takeaway Capacity Mb/d

MAJOR CURRENT AND PROPOSED PB PIPELINES

PB RAIL INFRASTRUCTURE BNSF

Carlsbad, NM Odessa UP

Wink

Monahans

Pecos TXPF

Barnhart

POTENTIAL DISRUPTION: STORAGE CAPACITY

STORAGE CAPACITY: PRICE IMPLICATIONS

CHALLENGES • Crowded Marketplace – Safety concerns - most dangerous roads in the country – Finding qualified drivers – Housing markets competitive and expensive

CONCLUSION • Permian Basin Midstream Market – PTT well positioned with asset locations – Strong crude projections present opportunities – Cognizant of potential disruptions and challenges