ENERGY TRANSFER PARTNERS, L.P. Analyst Day Presentation November 18, 2014
AGENDA Partnership Update Commercial Update / Analyst Day 2014 Growth Initiatives Finance Outlook 3
PARTNERSHIP UPDATE
THE ENERGY TRANSFER FAMILY OF PARTNERSHIPS Energy Transfer Equity (ETE) Energy Transfer Sunoco Logistics Partners (ETP) Partners (SXL) Regency Energy Sunoco LP Partners (RGP) (SUN) 5
THE FUTURE OF ETP IS SOLID Quarterly Distribution One of the largest integrated midstream energy Growth MLPs, with a market cap of 23.1 billion and ( per unit) 1.00 enterprise value of 37.3 billion(1) 0.98 Diverse portfolio of…
AS THE PARTNERSHIP STRENGTHENS ITS LEADERSHIP POSITION IN THE U.S. ENERGY VALUE CHAIN Our platform extends across the energy value chain as we continue to build critical mass where we operate, developing new take away capacity,…
WE HAVE ASSEMBLED A NATIONWIDE FOOTPRINT THAT PROVIDES UNIQUE VALUE CREATION OPPORTUNITIES Bakken More than 43,000 miles of natural gas, natural gas liquids (NGL), crude and refined product pipelines More than 5.5 Bcf/d of…
THE ETP GROWTH MODEL AT WORK Approximately 21 Billion Invested in M&A and Organic Projects Since 2011 Alone 9
THE COMBINATION OF KEY M&A TRANSFORMING ETP INTO A DIVERSIFIED ENERGY PARTNERSHIP 2004 2005 2006 2011 2012 2013 2014 Became public Acquired Acquired ETP (70%) and ETE acquired ETP acquired ETP acquired company Houston Transwestern…
AND ORGANIC GROWTH CONTINUING TO GIVE ETP A FOOTHOLD IN PROLIFIC PRODUCING BASINS 2007 2008 2009 2010 2011 2012 2013 2014 Completed first Eight 36 and Midcontinent Fayetteville Chisholm Chisholm Plant, Jackson Plant Rich Eagle Ford…
HAS PROVIDED ETP WITH A STRONG, DIVERSE ASSET BASE THAT HAS DRIVEN STEADY GROWTH Adjusted EBITDA by Operating Segment Interstate Intrastate Midstream Liquids trans. & svcs. Retail Marketing Crude / Refined Products Propane All…
COMMERCIAL UPDATE / GROWTH INITIATIVES
INTRODUCTION
ENERGY TRANSFER ASSETS 15
ETP GROWTH DRIVERS Mexico Export Projects Mariner South Lone Star Frac III Under Development REM Plant II East Texas Plant Lone Star Express Pipeline Rover Pipeline Dakota Access & Trunkline Crude Conversion Project…
WE CONTINUOUSLY EVALUATE OUR ASSETS TO ENSURE THEY ARE BEING PUT TO OPTIMAL USE Repurposing Projects ETP Pipelines Energy Transfer Crude Oil Pipeline Rio Bravo Crude Pipeline Mariner West Transwestern NGL Conversions Mariner…
MIDSTREAM GROWTH INITIATIVES
MIDSTREAM ASSETS Interstate Pipeline Assets 6,500 miles of gathering pipelines with over 2 Bcf/d of processing capacity 19
MIDSTREAM HIGHLIGHTS The Midstream Segment is expected to be a strong and growing contributor to our business over the next several years as more than 4.2 billion of growth projects placed in service over the past several years ramp up…
WTI BREAKEVEN PRICE FOR 15% AFTER-TAX IRR ASSUMES NATURAL GAS AT 4.00/MMBTU 100.00 90.00 76/bbl Current Price 80.00 70.00 60.00 50.00 40.00 30.00 20.00 10.00 - Energy Transfer G&P Areas Wall Street Research 21
EAGLE FORD AND EAGLEBINE FEE-BASED VOLUMES CONTINUE TO RAMP UP Processed volumes increased by over 500 MMcf/d from 2013 to 2014 Expect processed volumes to increase 400 MMcf/d by the end of 2015 Eagle Ford and Eaglebine…
JACKSON PLANT COMPLEX (4 200 MMCF/D TRAINS) 23
PERMIAN BASIN EXPANSION Rebel processing plant placed in-service July Martin Howard Andrews 2014 16 Big Spring Expect plant to be at full Mitchell capacity of 180 MMcf/d by Q3 2015 Midland 20 Gathering capacity Ector 6…
LONE STAR NGL UPDATE
Lone Star NGL Asset Overview LONE STAR NGL ASSETS NGL Storage Pipeline Transportation Fractionation and Processing 53 million barrels NGL storage 2,000+ miles of NGL Pipelines Two 100,000 Bpd fractionators at Permitted to drill…
LONE STAR NGL HIGHLIGHTS Announced Projects Lone Star Express NGL Pipeline Conversion of existing 12 NGL line to crude oil service Fractionator III Mariner South expected in-service by year end Volume Growth Volumes transported…
OUR INTEGRATED ASSETS ALLOW FOR NUMEROUS SYNERGIES ACROSS THE FAMILY Lone Star West Texas Pipeline 12 (140 Mbpd) ETP Godley 1, 2, 3, 5 ETP Freedom/Liberty RGP (75 Mbpd) RGP RGP Keystone ETP Jal Red Bluff Rebel ETP Justice…
LONE STAR EXPRESS NGL PIPELINE & CONVERSION OF EXISTING 12 NGL LINE TO CRUDE OIL SERVICE 533 miles of new 24 and 30 NGL pipelines from the Permian Basin to Mont Belvieu Capacity: Initial scope of 375 Mbpd Expandable up to 495…
LONE STARS MONT BELVIEU COMPLEX FRAC III TO BE IN-SERVICE DECEMBER 2015 Potential site for Fracs IV , V, VI Frac I 100 Mbpd Dec 12 Frac II 100 Mbpd Oct 13 Frac III 100 Mbpd Dec 15 De-C2 100 Mbpd Nov 14 30
MARINER SOUTH - EXPECTED IN-SERVICE BY YEAR END Joint project between SXL and Lone Star Will integrate SXLs existing Nederland terminal and pipeline with Lone Stars Mont Belvieu fractionation and storage facilities Creates a…
BAKKEN CRUDE OIL PIPELINE Originates in the Bakken/Three Forks production area and will deliver in excess of 450 Mbpd to the Patoka Hub in Illinois 1,124 miles of new 30 Delivery points include up to 3 terminal interconnections at…
SEPARATE GROWTH OPPORTUNITIES Rail Deliveries to East Coast Local Transportation Service in North Dakota Using DAPL Assets Powder River Basin Extension DJ Basin / Niobrara Lateral Canadian Bakken North Dakota Bakken Oil & Gas…
RIO BRAVO CRUDE PIPELINE Conversion of 84 miles of gas pipelines to crude/ condensate service In-service October 2014 Capacity Lease Agreement Leased 100% of system to Trafigura 100 - 110 Mbpd 10-year agreement with renewal…
INTERSTATE GROWTH INITIATIVES
INTERSTATE PIPELINE ASSETS Trunkline Transwestern Fayetteville Express 1 Tiger Florida Gas Transmission Sea Robin 17,500 miles of Interstate pipelines with over 15 Bcf/d of throughput capacity 38
INTERSTATE PIPELINE BACKHAUL OPPORTUNITIES AWAY FROM TRADITIONAL MARKETS Current Flow Potential Flow 39
INTERSTATE HIGHLIGHTS Our Interstate pipelines provide: Diversity - access to multiple shale plays, storage facilities and markets Stability - nearly 90% of revenue is derived from fixed reservation fees Growth Opportunity -…
MARCELLUS/UTICA ROVER PIPELINE - 3.25 BCF/D FULLY CONTRACTED Sourcing natural gas from the Marcellus and Dawn Utica shales Connectivity to numerous markets in the U.S. and Canada Expected in-service: December 2016 to Midwest…
INTRASTATE GROWTH INITIATIVES
Interstate Pipeline INTRASTATE PIPELINEAssets ASSETS Houston Pipeline ET Fuel Oasis Katy Over 7,700 miles of intrastate pipelines 14 Bcf/d of throughput capacity 74 Bcf of owned storage capacity 43
INTRASTATE HIGHLIGHTS - TURNING THE CORNER While our Intrastate Segment has been challenged these past several years, we believe the downward trend in EBITDA is largely behind us and expect a flattening to upward trend over the next…
MEXICO PROJECTS UNDER DEVELOPMENT Edinburg Extension 24 miles of 24 intrastate pipeline expansion connecting HPL to Mexico ETP ownership of 1.5 miles of pipeline and meter station across the border of Mexico Capacity 130,000…
POTENTIAL MEXICO PROJECTS U.S. SIDE Waha to Mexico Pipelines Two 42 pipelines with up to 2.8 Bcf/d capacity Header system at Waha Open bid process Bids due: Dec 2014/Jan 2015 46
MEXICO INTERIOR PROJECTS Ojinaga to El Encino 148 Miles of 42 pipeline system Total capacity of 1,356 MMcf/d delivered to EL Encino Contract term: 25 years Bids due: Oct 2014 Award date: Nov 2014 Scheduled in-service: Mar…
FINANCE UPDATE
WE ARE DELIVERING ON THE INVESTMENTS MADE OVER THE PAST SEVERAL YEARS Adjusted EBITDA ( millions) Distribution / LP Unit 5,000 1.00 Interstate Intrastate 4,533 Midstream Liquids Trans. & Svcs. 328 0.98 0.975 Retail Marketing…
WHILE ETP HAS PERFORMED WELL AGAINST ITS PEERS SINCE IT RESUMED DISTRIBUTION GROWTH Relative Price Performance Since July 1, 2013 ETP WPZ PAA OKS EPD EEP 140% 130% 128% 120% 120% 115% 110% 100% 101% 95% 94% 90%…
WE BELIEVE IT IS STILL UNDERVALUED GIVEN ITS PROVEN DISTRIBUTION GROWTH Distribution Growth Rates Distribution Annualized Growth Since ETP WPZ PAA OKS EPD EEP Yield Q2 2013 14% 12.3% 5.0% 12% 10% 9.1% 6.0% 8% 7.7% 7.1%…
AND ITS ROBUST BACKLOG OF ATTRACTIVE GROWTH PROJECTS BACKED BY LONG-TERM, FEE-BASED CONTRACTS Liquids Transportation & Intrastate Midstream Interstate Storage 210mm capex 375mm 410mm capex 3.8bn 4.4bn capex1 6.9bn 7.4bn capex1…
ETP HAS ADDITIONAL LEVERS TO DRIVE INCREMENTAL VALUE WHICH ARE NOT REFLECTED IN ITS CURRENT UNIT PRICE 67.1 million LP Units 50% GP / IDRs 15.0 million LP Units 100% GP/IDRs 40% interest in Lake Charles LNG Export Company,…
WE DO NOT BELIEVE OUR BONDS REFLECT THE UNDERLYING VALUE & SECURITY OF OUR ASSETS Yield to Maturity for Notes of Similar Maturity Since July 1, 2013 ETP WPZ PAA OKS EPD EEP 5.0% 4.5% 4.0% 3.80% 3.68% 3.57% 3.5% 3.33%…
GIVEN OUR STRENGTHENING CREDIT PROFILE & DEMONSTRATED COMMITMENT TO INVESTMENT GRADE RATINGS Increased size, scale and geographic reach with ETP consolidated PP&E now 31.7 billion and consolidated LTM Adjusted EBITDA of 4.5 billion…
WE HAVE FOCUSED ON REDUCING VOLATILITY THROUGH FEE-BASED CONTRACTS & REDUCED COMMODITY EXPOSURE Primary Revenue Mix % Fee-Based Demand fees consisting of fixed fees for the reservation of an agreed Intrastate Transportation amount of…
WE MANAGE OUR LIMITED COMMODITY PRICE EXPOSURE THROUGH PRUDENT RISK MANAGEMENT POLICIES Fee-based cash flows make up a significant portion of our business 2015 Average Commodity Price Sensitivity Impact of Where we have commodity…
OUR UNSECURED CREDIT EXPOSURE IS SIGNIFICANTLY WEIGHTED TOWARDS INVESTMENT GRADE COUNTERPARTIES Top 20 Unsecured Counterparties Unsecured Exposure by Rating2 Unsecured % of Total Internal Credit Exposure…
WE ARE SUCCESSFULLY EXECUTING ON OUR FINANCIAL GOALS & OBJECTIVES Q3 2014 marked the fifth consecutive increase in quarterly distributions, delivering 7.7% Distribution Growth distribution growth over the past year Maintain a…
AND WILL CONTINUE TO FUND OUR BUSINESS IN A PRUDENT MANNER ETP will continue to opportunistically access the capital markets to finance growth and manage credit metrics and debt maturities Consistent with past practices, we expect to…
OUR LONG-TERM REFINANCING OBLIGATIONS ARE MANAGEABLE millions ETP Debt Maturity Profile, Excluding SXL and SUN 1,400 1,200 1,000 800 600 400 200 - 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2029 2036…
AND COULD PROVIDE INCREMENTAL CASH FLOW BENEFITS IN THE CURRENT RATE ENVIRONMENT Indicative New Issue Rates Wtd Avg Rate of Maturities Debt by Interest Rate Type (net of swaps) 30-Year 10-Year Floating, 9.1% 4.9% 5-Year 6.9%…
SUNOCO LP UPDATE Having closed on the acquisition of Susser Holdings on August 29, ETP's intent is to migrate the entire retail business into Sunoco LP in a series of dropdowns for newly issued SUN common units and cash The first…
APPENDIX
ENERGY TRANSFER PARTNERS, L.P. NON-GAAP RECONCILIATIONS Twelve Months Ended December 31, (MM) 2009 2010 2011 2012 2013 3Q14 (1) LTM (1) Net income 791 617 697 1,648 768 447 1,046 Interest expense, net of interest capitalized 395…
ETP 2014 2015 CAPEX SUMMARY Full Year - 2014 Full Year - 2015 (mm) Low High Low High Growth Capex Direct Midstream 750 850 350 400 NGL transportation and services 400 450 2,500 2,600 Interstate transportation and storage 110 130…
Loading...
