North America Crude Markets and Storage Summit. Cost Effective Transportation Methods for Moving High Gravity Crude to Markets.

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1 North America Crude Markets and Storage Summit Cost Effective Transportation Methods for Moving High Gravity Crude to Markets Rangeland Energy Creating Value Through Transportation 1

2 Rangeland Energy Rangeland Energy is a midstream energy company focused on developing, owning and operating midstream assets Backed with private equity commitments from EnCap Flatrock Midstream Experienced leadership team with over 200 years of midstream experience (crude oil, natural gas, NGLs & refined products) with major integrated oil and midstream companies 2

3 The RIO Transportation System Carlsbad RIO Hub Loving Centurion Pipeline Strategy: Maximize value and flexibility for crude oil producers and buyers through cost competitive pipeline and rail transportation options Hub: Large scale crude oil, condensate and frac sand terminal/market hub Pipeline: Crude oil access to Midland terminal/pipeline hub Gathering: Gathering systems w/ access to pipeline and rail export options Phillips 66 Pipeline NEW MEXICO RIO Gathering RIO Pipeline RIO Midland Terminal TEXAS State Line Terminal Midland RIO Target Gathering Area

4 AGENDA Condensate Production Trends Eagle Ford Permian -Delaware Basin Markets for High Gravity Crude and Condensate Major High Gravity Pipeline Takeaway Permian -Delaware Basin Eagle Ford Potential Role for Rail Benefits of Combining Pipeline and Rail Options Conclusions

5 Condensate Production Trends Significant increases in lease condensate production Eagle Ford has been the primary driver Permian will drive the future growth of condensate

6 High Gravity Sweet Eagle Ford Established Light Tight Oil Play

7 Permian Basin High Gravity Sweet Horizontal drilling is just getting started

8 GRAVITY TRENDS IN PERMIAN BASIN PIPELINES Existing pipelines carry WTI ( 42 to 44 gravity limit) Pipeline aggregate stream gravities are at the limit Pipelines beginning to reject high gravity crudes New pipelines out of the Delaware Basin and will have separate high gravity segregations

9 Markets for High Gravity Crudes/Condensate Blend into Crude to Refineries 43 to 47 Gravity Splitters 45 to 58 Gravity Chemical Plants 52 to 62 Gravity Diluent to Canada 65 Gravity Plus Export Plant or Processed Condensates

10 Eagle Ford Takeaway Pipelines High Gravity Pipelines are Well Established

11 Permian Basin Takeaway Pipelines High Gravity Solutions are Under Development RIO Hub RIO Pipeline State Line Terminal

12 High Gravity Crude and Condensate Potential Role of Rail Rail heavier crudes in -to blend down high gravity Solution for moving condensates that do not meet pipeline specs Consistent quality for Refiners, Splitters, Chem Plants Move stabilized condensate to gulf for export

13 Delaware Basin Rail Facilities Lovington LogiBio Hobbs Cetane-Murex Carlsbad RIO Hub Rail Terminal NEW MEXICO TEXAS Atlas Genesis Midland Pecos Kinder-Watco

14 Benefits of Combining Pipeline and Rail Options Flow Assurance Avoid Production Shut In Market Optionality Flexibility to choose best market as crude differentials shift Rail to Any Location Not constrained to pipeline routes

15 Conclusions Horizontal drilling in the Eagle Ford and the Permian will significantly increase the volume of high gravity crude and condensate production Markets for condensates are on the Gulf Coast Splitters, Chem Plants, Exports Takeaway pipelines for light crude and condensates are established in the Eagle Ford and under development in the Permian Rail provides flow assurance, a solution for high gravity condensates and provides flexibility to choose between market options as crude oil differentials change