1. Pipelines on the Horizon
Westwood
Investing Where It Counts
Pipelines on the Horizon
Casey C. Cass, CFA
Vice President
Portfolio Specialist
For Institutional Use Only - Not for Public Distribution

2. Energy Infrastructure | Booming
Source: Annotated image from NASA’s Black Marble composite of nighttime lights as seen by the Suomi NPP satellite.

3. Energy Infrastructure | Booming
Source: Bloomberg photo by David Wethe.

4. Energy Infrastructure | Our View of the Market
Tailwinds
Cross-Currents
Headwinds
Commodity Prices
Fundamental Valuations
Infrastructure Policy
Infrastructure Demand
Interest Rates
Entity Structure Shift
Regulatory Changes
Investor Sentiment

5. Underlying Assets are Strong | Growing Liquids Volumes
U.S. is Largest Liquids Producer in the World
Million Barrels Per Day
2023 Permian Oil Production Estimate
2017 Permian Oil Production
2006
2017
Source: U.S. Energy Information Administration (EIA). Permian Oil Production Data from IHS Markit.

6. Permian Supply vs. Takeaway
Current State | We Need More Pipes
Crude Oil Production / Takeaway Capacity (MBbls/d)
Existing Pipelines
Pipes Under Construction
Potential Pipelines / Expansions
End of Year Production
Permian Supply vs. Takeaway
Today
Source: Bentek, Company Data, EIA and Wells Fargo Securities, LLC estimates.

7. Energy Infrastructure | Midstream 2.0

8. Energy Infrastructure | How Did MLPs Get Here?
Investors Demand Growth
New Projects > Require Equity and Debt
Negative Feedback Loop
Concerns over Leverage
Equity Risk Rises
Higher Cost of Equity
More Debt > Higher Leverage
Investors Demand More Growth

9. Before After Old vs. New Model | Midstream 2.0 Complicated Structures
Focused on Growth
Serial Capital Issuers
Simplified Structures
Focused on Returns
Disciplined Capital Allocators

10. Capital Markets Activity
Midstream | Moving to Self-Funding
Capital Markets Activity
$ in Billions
MLP Equity Issuance
C-Corp Equity Issuance
Source: Partnership reports and Wells Fargo Securities, LLC estimates. Note: estimates are based on the Wells Fargo coverage universe only.

11. Energy Infrastructure | Why Now?

12. Energy Infrastructure | Why Now?“
Wherever there is change, and wherever there is uncertainty, there is opportunity!
- Mark Cuban

13. Energy Infrastructure | Potential Benefits of Midstream 2.0
Inflation-Protected Income
Hard assets and inflation-indexed contracts provide a degree of inflation protection
Yield + Sustainable Growth
Attractive yield with sustainable growth via self-funding
Income-oriented securities with compelling total return opportunities
Energy Exportation
U.S. is becoming the gateway to global energy markets
Simplified Structure
Opens up to wider range of investors, easier to understand

14. Why Westwood MLP Infrastructure Renewal | Focus on High Quality and Value
2.7%
Annualized Excess Return Since Inception
Using net of fees returns vs. Alerian MLP Index
12.9%
Annualized Return Since Inception
Using net of fees returns 15
Year Strategy Track Record
With over 30 years of experience
investing in the energy sector
10%
3 Year Distribution CAGR
Stronger distribution growth and coverage than the Alerian MLP Index
All data as of 6/30/2018 with inception date of 1/1/2003. Frequency: Quarterly. All calculations shown use the Alerian MLP Index as the benchmark. Data Source: © 2018 FactSet Research Systems Inc. All Rights Reserved. Past performance is not indicative of future results. As with any investment strategy, this strategy involves risk of loss. Please see appendix for full performance disclosures. The disclosures provided are considered an integral part of this presentation.

15. …ONE MORE THING

16. Midstream | One More Thing…
Total Midstream Investable Universe
$714B
$18T
Total Active and Passive U.S. Assets
25X
Source: FactSet and Morningstar. The midstream investable universe incorporates MLPs, midstream companies, utilities and yield cos. (including general partners), marine midstream companies and MLP affiliates.

17. MLP Infrastructure Renewal | Compliant Presentation