INTERNAL USE ONLY – DO NOT DISTRIBUTE PROPRIETARY AND CONFIDENTIAL. This document is not a public record. Ohio Revised Code 149.43(A)(1)(bb) and 187.04(C)(1) and (2).

Ohio Energy Markets & Shale Energy/Petrochemicals Sector Strategy Matt Cybulski

Director, Shale Energy & Petrochemicals

July 24, 2017

2 Confidential – Internal Use Only |

JobsOhio Overview

Mission Statement

Client Focus

Key Partners

Private-Public

Results Oriented

JobsOhio is a private, non-profit corporation committed to driving job creation and new capital investment in Ohio through business attraction, retention and expansion efforts

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Targeted Industry Sectors

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Select Executives Board of Directors

John Minor President & CIO Previously MD at Evercore

James Boland Chairman Ret. Vice Chair, E&Y

John Minor President & CIO

Thomas L. Williams President & CEO, North American Properties

John Bishop Chairman, Motorists Insurance

William G. Batchelder Frm. Speaker, Ohio House of Representatives

Gary Heminger President & CEO, Marathon Petroleum

Barbara Snyder President, Case Western Reserve University

Lawrence Kidd Principal & CEO, Reliable Staffing Services

Stephen E. Markovich Sr. Vice President OhioHealth

JobsOhio Leadership

David Mustine Senior Advisor Previously Secretary ODNR SVP – AEP Regulated

Aaron Pitts Senior Managing Director Previously Strategy Executive, Cardinal Health

Kristi Tanner Senior Managing Director Previously COO – ODOD

Dana Saucier Managing Director Previously Founded Accent Energy

Ted Griffith Managing Director Previously H-P Executive

Glenn Richardson Managing Director Previously VP, Rolls-Royce Energy and Dana Holding

Valentina Isakina Managing Director Previously Vice President, Nationwide

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JobsOhio Overview

Mission Statement

Client Focus

Key Partners

Private-Public

Results Oriented

JobsOhio’s model is centered around serving our clients – companies creating jobs in Ohio – and developing long-term relationships

6 Confidential – Internal Use Only |

JobsOhio Overview

Mission Statement

Client Focus

Key Partners

Private-Public

Results Oriented

JobsOhio brings together organizations and stakeholders from across the state – including our six regional network partners (JON), consultants, site selectors, local development offices, industry associations, government officials and others – to drive economic development activity in Ohio

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JobsOhio Overview

Mission Statement

Client Focus

Key Partners

Private-Public

Results Oriented

JobsOhio’s acquisition of a 25-year franchise on the state’s liquor business provides private funding that we utilize to fulfill a public purpose of creating jobs and improving the economic well-being for Ohio’s citizens

8 Confidential – Internal Use Only |

JobsOhio Overview

Mission Statement

Client Focus

Key Partners

Private-Public

Results Oriented JobsOhio’s model is working. Since Q1 2011 – December 31, 2016, we have won over 1,450 projects and companies have committed to create over 104,000 new jobs, create nearly $4.7 billion in new payroll, and invest over $27 billion of new capital in Ohio.

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Then and Now – Electricity and Natural Gas in Ohio

Then (Pre-2005) Now (2005-Present)

Ohio was a regulated utility state Deregulated for electricity and gas

Regulated power plant ownership Merchant power plant ownership

Coal-fired generation dominated Coal, Natural Gas, and Renewable Generation

Unstable natural gas costs Abundant shale gas – cheapest in the world

Importing of natural gas from Gulf/Rockies $50 billion invested related to shale in upstream, midstream, and downstream*

*Source: Cleveland State University: June 2017

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• July 1999 – Senate Bill 3 passed to move Ohio to a deregulated market • January 2001 – Senate Bill 3 took effect, beginning the transition to deregulation • Ohio power markets have been fully deregulated for 12 years • Ohio natural gas markets have been deregulated for over 20 years • Large industrials to residential customers are shopping energy needs • Over 50 full service natural energy marketing firms targeting industrials in Ohio • Large Ohio industrial consumers command highly customized supply structures that

meet their business needs and profitability targets

Deregulation in Ohio Timeline

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Power Deregulation in Ohio

Source: U.S. Energy Information Administration, World Bank

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Deregulation in Ohio – Portion of Ohio Electricity Sold to Shoppers 2008 - 2016

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16AEP Duke DPL First Energy

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What’s Next in Energy – Grid Modernization and Beyond the Meter

Opportunities to develop controls, valves, microelectronics, software, services…

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• It can take time to explain deregulation/the ability to shop • Over 50 full service natural energy marketing firms targeting industrials in Ohio

• Knowing where to begin can be overwhelming • Regulated states can offer long-term, fixed pricing – this provides clarity to clients

• Companies and especially site selection consultants like to see the definitive, long-term pricing

• Ohio’s deregulated market can often offer competitive or cheaper pricing and flexibility, but getting those rates is not straightforward

• Responding to RFI’s doesn’t allow for clear answers – we provide average costs and other scenarios but try to discuss shopping and its advantages

• As coal-fired power plants are shuttered, local communities are negatively impacted by loss of jobs and tax revenue

Economic Development Challenges Related to Deregulation

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Shale Energy/Petrochemical Strategy

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Ohio’s Skyrocketing Shale Production and Competitive Price

• The Utica and Marcellus shale plays in eastern Ohio, western Pennsylvania, and West Virginia represent 85 percent of the growth in U.S. shale gas production since 2012.

• Ohio’s natural gas production reached 1.37 trillion cubic feet in 2016, up 43% from 2015 production.

• The abundance of reliable natural gas in Ohio has resulted in access to low-cost natural gas.

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Marcellus & Utica Leading the US in Natural Gas Growth

Source: U.S. Energy Information Administration, World Bank

Source: Marathon Petroleum J.P. Morgan 2017 Energy Equity Investor Conference: June 26, 2017

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Attraction opportunity for Ohio

Methanol plants

Ethane Steam Crackers On-purpose propylene

plants

Ammonia plants

Upstream extractors

Gas Pipelines

Fractionators/processors Power generators

Raw fossil fuels

Complex chemicals

Refineries

Industrial chemicals, coatings, and polymers companies/ JO Wins

Liquids Pipelines

Alkylation plants

Liquids Storage

Pre-2011 Energy/Petchem Presence in Ohio

*Not Exhaustive

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Methanol plants

Steam crackers

On-purpose propylene

plants

Ammonia plants

Upstream extractors

Gas Pipelines

Fractionators/processors Power generators

Raw fossil fuels

Complex chemicals

Refineries Liquids Storage

Industrial chemicals, coatings, and polymers companies

Alkylation plants

Lordstown

Energy

Liquids Pipelines

Renewables

Pre-2011 Energy/Petchem Presence in Ohio

~$50 Billion

Invested*

Attraction opportunity for Ohio

Not Exhaustive

*Source: Cleveland State University Report: June 2017

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20

Natural Gas Liquids Value Chain & Job Creation Multiplier

Job Growth Increases As Value Is Added To The Commodity

Source: Dept of Energy, Cleveland State

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Upstream Extraction

• Massive growth in natural gas, butane, ethane, propane, condensate – low price market

Strategy:

• Assist connecting industry with large end-users, Drilling investment tracking underway

Midstream (Fractionation/Pipelines)

• Over $12 billion in processing investments, Over 40 pipelines under development in region

• M&A activity – MPLX/MarkWest, TransCanada/Columbia Pipeline, Enbridge/Spectra

Strategy:

• Expand and attract demand for feedstock

• Maximize follow-on asset build-out opportunities

• Maximize pipeline offtake points

• Proactive site development around new infrastructure

Downstream - Power Generation

• $3.8bn 4 new natural gas power plants under construction

• Power costs trending down to a 10 year low - Use local low cost natural gas

Strategy:

• 4 additional plants under development approx. $4.1bn additional investment

• New infrastructure creating site synergies

Downstream - Power Generation - Renewables

• Three new utility grade wind farms $400mn

• Of high interest to industries particularly high tech

Strategy:

• Opportunity to develop 4 additional wind farms $400mn investment

• Cross sector involvement with high tech industry seeking renewables

Continue Building On Ohio’s Global Energy and Chemical Lead Position

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Downstream – Ethane to Ethylene, HDPE, etc..

• Utica wet gas leading to significant regional ethane feed-stocks

• Limited large river sites inventory in shale region for large scale projects

Strategy:

• Working with PTT Global Chemical to land a world scale cracker

Downstream – Butane, Propane, Natural Gas

• Significant cost advantaged regional butane, propane, and natural gas feed-stocks

• Liquids processing and transportation build-out allow for additional development

Strategy:

• Efforts underway to develop uses for butane

• Efforts underway to develop natural gas feed-stocks to methanol for use in plastics, pains, resins, adhesives,

solvents etc.

• Working to develop interest in Propane (PDH) to propylene

Downstream – Chemicals, Adhesives, Coatings, Polymers, Plastics, etc.

• Build on Ohio’s #1 position in polymer output, polyolefin demand, plastics output

• 6th largest chemical producing state

Strategy:

• Leverage Ohio’s shale advantage and established chemical market to develop/attract additional market and

additional supply chain

• Outreach to specialty chemical players abroad

Continue Building On Ohio’s Global Energy and Chemical Lead Position

INTERNAL USE ONLY – DO NOT DISTRIBUTE PROPRIETARY AND CONFIDENTIAL. This document is not a public record. Ohio Revised Code 149.43(A)(1)(bb) and 187.04(C)(1) and (2).

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Cumulative Announced Chemical Industry Investment From Shale Gas

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

0255075

100125150175200225250275300

Total Investment Number of Announced Projects

$Bil # of Projects

Source: ACC analysis, December 2010 – December 2016

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Announced Plastic Processor Projects By State

Announced

Projects

40+

30-39

20-29

10-19

5-9

1-4

0

Ohio is

third in

projects

Announcements since June 2012

Source: Plastics News, ACC analysis

Updated –8/1/16

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Key Takeaways

• JobsOhio values relationships with our utility partners

• Most expansion and attraction projects are very energy intensive – electricity, natural gas, or both – across most industry sectors

• Ohio’s electricity prices are at a 10-year low

• Communicating to clients on how deregulation works and the benefits of shopping is critical

• Utica and Marcellus Shale exploration and production has resulted in Ohio having access to the world’s lowest natural gas prices

• With the ongoing retirement of coal fired power generation, new natural gas combined cycle plants are coming online with more under development

• Shuttered coal plants are targets for redevelopment

• Sites with existing infrastructure or within very close proximity are critical to our success

26 Confidential – Internal Use Only |

Thank You