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Citi MLP and Midstream Infrastructure Conference – Enterprise Products Partners LP

Enterprise Products Partners LP · Aug 20, 2014 · 46 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Citi MLP and Midstream Infrastructure Conference – Enterprise Products Partners LP – slide 1
    ENTERPRISE PRODUCTS PARTNERS L.P. CITI MLP / MIDSTREAM INFRASTRUCTURE CONFERENCE August 2021, 2014 ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
  2. Citi MLP and Midstream Infrastructure Conference – Enterprise Products Partners LP – slide 2
    KEY INVESTMENT CONSIDERATIONS EPD is one of the largest U.S. publicly traded energy partnerships with an enterprise value of 88 billion 56th on Fortune 500 One of the largest integrated midstream energy systems Diversified sources…
  3. Citi MLP and Midstream Infrastructure Conference – Enterprise Products Partners LP – slide 3
    SIMPLE OWNERSHIP STRUCTURE GP ALIGNED WITH LIMITED PARTNERS EPCO & Public Affiliates 36.4% L.P. Noneconomic GP 63.6% L.P. Interest Interest Enterprise Products Partners L.P. (NYSE: EPD) Note: as of July 31, 2014…
  4. Citi MLP and Midstream Infrastructure Conference – Enterprise Products Partners LP – slide 4
    ENTERPRISE ASSETS: NATURAL GAS, NGLS, CRUDE OIL AND PETROCHEMICALS Asset Overview Connectivity Pipelines: 51,000 miles of natural gas, NGL, crude oil, refined Connected to U.S. major shale basins products and petrochemical…
  5. Citi MLP and Midstream Infrastructure Conference – Enterprise Products Partners LP – slide 5
    GEOGRAPHIC AND BUSINESS DIVERSIFICATION PROVIDE MULTIPLE EARNINGS STREAMS (1) 5.0 Billion Gross Operating Margin 4 Year Growth Capital Allocation 20132016E For 12 months ended June 30, 2014 12 Billion 16% 16% 12% 56% 22%…
  6. Citi MLP and Midstream Infrastructure Conference – Enterprise Products Partners LP – slide 6
    FUNDAMENTALS OVERVIEW ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
  7. Citi MLP and Midstream Infrastructure Conference – Enterprise Products Partners LP – slide 7
    UNCONVENTIONAL / SHALE PLAYS Decades of DrillingDecades of Production POTENTIAL YEARS OF DRILLING IN COMMERCIAL PLAYS Bakken 40k to 100k locations 20 to 50 years Utica 95k to 160k locations Mancos / Niobrara 100 years 75k to…
  8. Citi MLP and Midstream Infrastructure Conference – Enterprise Products Partners LP – slide 8
    U.S. NATURAL GAS SUPPLY POTENTIAL ASSUMING SUFFICIENT MARKETS (Bcf/d) 1 1 ROCKIES OTHER 14 16 16 32 APPALACHIAN MIDCONTINENT 12 16 Base High High Case Case Case PERMIAN Current Region Current 2020 2020 2025 74…
  9. Citi MLP and Midstream Infrastructure Conference – Enterprise Products Partners LP – slide 9
    U.S. NGL SUPPLY POTENTIAL ASSUMING SUFFICIENT MARKETS (MBPD) 135 128 ROCKIES OTHER 581 922 301 1,182 APPALACHIAN MIDCONTINENT 501 661 PERMIAN Current (1) NGL Components Current 2020 3,192 MBPD Ethane 1,377 2,509…
  10. Citi MLP and Midstream Infrastructure Conference – Enterprise Products Partners LP – slide 10
    U.S. OIL & CONDENSATE SUPPLY POTENTIAL ASSUMING SUFFICIENT MARKETS (MBPD) 3,447 CANADA 4,800 1,136 1,043 ROCKIES AK & CA 1,589 2,243 78 185 APPALACHIAN MIDCONTINENT 616 966 PERMIAN Current U.S. Region Current 2020…
  11. Citi MLP and Midstream Infrastructure Conference – Enterprise Products Partners LP – slide 11
    LOW GAS TO CRUDE SPREAD CONTINUING TO DRIVE U.S. NGL ADVANTAGE NYMEX Natural Gas Price as a % of Crude U.S. Ethane Crackers: Global Cost Advantage 140% Shale Gas Production Now Totals 50% 40 70 of Total Gas Production Oct2005…
  12. Citi MLP and Midstream Infrastructure Conference – Enterprise Products Partners LP – slide 12
    POTENTIAL ENERGY PRODUCTION GROWTH 100 U.S. Natural Gas 20 North American Crude Oil & Condensate 90 U.S. Canada 16.7 90 15 80 Million BPD 71 10.7 Bcf/d 70 10 7.5 60 59 5 50 40 0 3.0 U.S. Ethane 3.0 U.S. LPG…
  13. Citi MLP and Midstream Infrastructure Conference – Enterprise Products Partners LP – slide 13
    U.S. REFINERS LOOKING GOOD EXCEPT FOR DOMESTIC DEMAND IEA expects U.S. demand for Refined Products to decline steadily over next 5 years 0.60% annual decline for Mogas; 0.40% annual decline for Distillate; 0.50% annual decline for…
  14. Citi MLP and Midstream Infrastructure Conference – Enterprise Products Partners LP – slide 14
    U.S. BALANCE OF TRADE Petroleum Exports Helping to Close U.S. Trade Gap 2010 2011 2012 2013 1H 2013 1H 2014 0 (100) (200) in Billions (300) (400) (500) (600) Petroleum Total Source: U.S. Census Bureau ALL RIGHTS…
  15. Citi MLP and Midstream Infrastructure Conference – Enterprise Products Partners LP – slide 15
    VISIBILITY TO GROWTH: MAJOR CAPITAL PROJECTS 6.3B InService in 2013 / 3Q14; 5.4B Under Construction In Service Date 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 2015/2016 NGL Pipeline & Services Eagle Ford Yoakum gas processing facility…
  16. Citi MLP and Midstream Infrastructure Conference – Enterprise Products Partners LP – slide 16
    MAJOR NGL CAPITAL GROWTH PROJECTS ATEX and Aegis Ethane Pipelines ATEX Pipeline Initial Origins 1,265mile, 16 and 20 pipeline Initial capacity 125 MBPD, expandable to 265 MBPD Connected to 4 NGL fractionators 15 year shiporpay…
  17. Citi MLP and Midstream Infrastructure Conference – Enterprise Products Partners LP – slide 17
    EPD PDH FACILITY UPDATE Capacity to produce up to 1.65 billion pounds per year of polymer grade propylene (25 MBPD) Will consume 35 MBPD of propane 100% of capacity is contracted under feebased contracts that average 15…
  18. Citi MLP and Midstream Infrastructure Conference – Enterprise Products Partners LP – slide 18
    VISIBILITY TO GROWTH Additional Opportunities Under Development Supplyside Opportunities Demandside Opportunities NGLs NGLs Purity and mixed NGL pipelines from Pipeline and storage projects to serve expanding petrochemical industry…
  19. Citi MLP and Midstream Infrastructure Conference – Enterprise Products Partners LP – slide 19
    EXPORT CAPACITY: LINKING U.S. SUPPLIES TO GROWING GLOBAL DEMAND Beaumont Beaumont Mont Sealy Belvieu Houston OTI Morgans Point ECHO Texas City Dock Terminal Freeport / Pipeline Corridors Jones Creek NGLs…
  20. Citi MLP and Midstream Infrastructure Conference – Enterprise Products Partners LP – slide 20
    EXPORT OPPORTUNITY MATRIX 90% High 80% C1 C2 -258.7F 70% -127.5F Boiling Point Indicative Arbitrage Value Discount to NW Europe 60% 50% 40% 30% C3 -44.0F C4 31.0F 20% 10% C5+ 97.0F Low 0% Harder Easier…
  21. Citi MLP and Midstream Infrastructure Conference – Enterprise Products Partners LP – slide 21
    U.S. BECOMES LARGEST EXPORTER OF PROPANE Propane Exports by Destination as of July 2014 2014 YTD Propane Exports (from EPD Facility) by Destination Region: 45 MMBbls % of Cargoes Loaded % of Destination Market North America 31% 41%…
  22. Citi MLP and Midstream Infrastructure Conference – Enterprise Products Partners LP – slide 22
    EPD BOOKING CARGOES / BUILDING CAPACITY 2,000 Cargoes Scheduled Through 2024 Existing Capacity: 7.5 MMBbls/mo 100% o Expansion 1Q 2015: +1.5 MMBbls/mo o Expansion 4Q 2015: +7.0 MMBbls/mo Ultimate Capacity: 16.0 MMBbls/mo 80% Dock…
  23. Citi MLP and Midstream Infrastructure Conference – Enterprise Products Partners LP – slide 23
    NEW MARKETS DEVELOP FOR U.S. ETHANE Market Potential EPD Ethane Export Facility at Morgans Point, TX Ethylene cracker feedstock displacing current Supported by longterm contracts crude oil derivative feedstocks or new demand Combined…
  24. Citi MLP and Midstream Infrastructure Conference – Enterprise Products Partners LP – slide 24
    MORGANS POINT ETHANE EXPORT FACILITY Operational Mont synergy from Oiltanking Belvieu proximity to Mont Belvieu Vessel size Morgans 45 ft. draft Point 900 ft. LOA Houston Ship Channel Transit time from anchorage: 4…
  25. Citi MLP and Midstream Infrastructure Conference – Enterprise Products Partners LP – slide 25
    ONSHORE CRUDE OIL ASSETS 1.5 MMBPD Expected by YearEnd 1,600 Pipeline Throughput O k l a h o m a Enterprise Terminal 1,338 Cushing Eagle Ford Terminal (JV) 1,175 Seaway Pipeline (JV) 1,200 Red River Gathering 828 MBPD 800…
  26. Citi MLP and Midstream Infrastructure Conference – Enterprise Products Partners LP – slide 26
    SEAWAY CRUDE OIL PIPELINE EXPANSION COMPLETED Cushing Seaway Loop: 512 mile, 30 parallel pipeline along existing pipeline; O k l a h o m a completed June 2014 A r k a n Awaiting upstream pipeline connections Jones Creek to…
  27. Citi MLP and Midstream Infrastructure Conference – Enterprise Products Partners LP – slide 27
    ENTERPRISE ECHO DISTRIBUTION SYSTEM Access to 8 MMBPD Refining and Water From Cushing Galena Park Sealy VLO H.R. PRSI Shell Katy 24 Baytown 36 Bertron Motiva VLO TOT XOM XOM Genoa ECHO Port Arthur Lateral 30 18 Beaumont…
  28. Citi MLP and Midstream Infrastructure Conference – Enterprise Products Partners LP – slide 28
    EPD REFINED PRODUCTS TERMINAL BEGINS OPERATIONS Capabilities ExxonMobil EPD facility located at the Port of Beaumont, TX EPD Beaumont Terminal Capable of loading Panamax vessels at EPD Beaumont rates up to 15,000 Bbls/hr Tank…
  29. Citi MLP and Midstream Infrastructure Conference – Enterprise Products Partners LP – slide 29
    FINANCIAL ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
  30. Citi MLP and Midstream Infrastructure Conference – Enterprise Products Partners LP – slide 30
    SOLID OPERATING PERFORMANCE 5.3 Liquids Pipeline Volumes 5.2 Equity NGL Production & Feebased Processing 5.0 136 140 5 121 126 4.8 116 4.8 Feebased Processing 120 Equity NGL Production 4.6 4.5 101 Million BPD 100…
  31. Citi MLP and Midstream Infrastructure Conference – Enterprise Products Partners LP – slide 31
    DRIVES STRONG FINANCIAL RESULTS Gross Operating Margin 4.5 Distributable Cash Flow (DCF) (1) 5.0 4.8 4.1 4.4 3.8 3.8 3.9 4.0 3.5 3.3 3.7 Billions Billions 3.0 2.6 2.5 2.3 3.0 2.8 2.0 2.0 2.2 1.5 1.0 1.9 0.0 0.5…
  32. Citi MLP and Midstream Infrastructure Conference – Enterprise Products Partners LP – slide 32
    HISTORY OF FINANCIAL DISCIPLINE WHILE EXECUTING GROWTH STRATEGY (1) (2) Total Growth Capex & Debt Leverage 4.5 4.2 4.7x 4.0 3.9 3.8 3.6 3.5 4.5x 3.1 3.4 Debt / Adjusted EBITDA 3.0 4.3x 2.5 Billions 4.1x 2.0 3.9x…
  33. Citi MLP and Midstream Infrastructure Conference – Enterprise Products Partners LP – slide 33
    STRENGTHENING DEBT PORTFOLIO Extending Maturities Without Increasing Costs 13.1 Billion Notes Issued 99.2% Fixed Rate Debt 2009 2Q 2014 15 14.3 7.5% 13 13.3 Average Maturity Years 8.8% 8.8% 12.4 Cost of Debt 6.5%…
  34. Citi MLP and Midstream Infrastructure Conference – Enterprise Products Partners LP – slide 34
    NO GP IDRS AND RETAINED DCF SUPPORT LONGTERM DISTRIBUTION GROWTH Indicative Amount of EPD Growth Capital Required No GP IDRs significantly to Support 0.16/unit Distribution Growth based on Return on Capital (ROC) Assumptions…
  35. Citi MLP and Midstream Infrastructure Conference – Enterprise Products Partners LP – slide 35
    10 LARGEST MLPS BY MARKET CAP Distribution and DCF Yield % Current Distribution Yield(1) 2014 DCF Yield(2) Market Cap Market Cap Yield % (Billions) Yield % (Billions) 8.0 80 9.0 80 7.3 8.2 6.8 6.9 8.0 70 7.0 70 6.3 7.0 7.0…
  36. Citi MLP and Midstream Infrastructure Conference – Enterprise Products Partners LP – slide 36
    EPD AND AMZ MLP INDEX Attractive Total Return vs. 8 Other Asset Classes 15-Year 10-Year 5-Year 3-Year 2006 2007 2008 2009 2010 2011 2012 2013 6M 2014 1 1 1 1 CAGR CAGR CAGR CAGR REIT Commodities IG Bonds MLP Index EPD EPD EPD EPD…
  37. Citi MLP and Midstream Infrastructure Conference – Enterprise Products Partners LP – slide 37
    NONGAAP RECONCILIATIONS ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
  38. Citi MLP and Midstream Infrastructure Conference – Enterprise Products Partners LP – slide 38
    GROSS OPERATING MARGIN We evaluate segment performance based on the nonGAAP financial measure of gross operating margin. Gross operating margin (either in total or by individual segment) is an important performance measure of the core…
  39. Citi MLP and Midstream Infrastructure Conference – Enterprise Products Partners LP – slide 39
    ADJUSTED EBITDA Adjusted EBITDA is commonly used as a supplemental financial measure by our management and external users of our financial statements, such as investors, commercial banks, research analysts and ratings agencies to…
  40. Citi MLP and Midstream Infrastructure Conference – Enterprise Products Partners LP – slide 40
    DISTRIBUTABLE CASH FLOW Distributable cash flow is an important nonGAAP financial measure for our limited partners since it serves as an indicator of our success in providing a cash return on investment. Specifically, this financial…
  41. Citi MLP and Midstream Infrastructure Conference – Enterprise Products Partners LP – slide 41
    MLP MATH ILLUSTRATIVE EXAMPLE ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
  42. Citi MLP and Midstream Infrastructure Conference – Enterprise Products Partners LP – slide 42
    OVERVIEW OF HYPOTHETICAL DISTRIBUTION GROWTH ANALYSIS The slide on page 35 and the following supporting schedules are intended to demonstrate the potential capital investment required to support our most recent annual distribution…
  43. Citi MLP and Midstream Infrastructure Conference – Enterprise Products Partners LP – slide 43
    MLP MATH: ILLUSTRATIVE ACCRETION FROM INVESTMENT 10.0% ASSUMED RETURN Source of Capital EPD Distribution Growth Matrix 100% Retained 40% Debt / 60% 40% Debt / 60% USD in millions, unless noted /unit DCF Retained DCF Common Units…
  44. Citi MLP and Midstream Infrastructure Conference – Enterprise Products Partners LP – slide 44
    MLP MATH: ILLUSTRATIVE ACCRETION FROM INVESTMENT 12.5% ASSUMED RETURN Source of Capital EPD Distribution Growth Matrix 100% Retained 50% Debt / 50% 50% Debt / 50% USD in millions, unless noted /unit DCF Retained DCF Common Units…
  45. Citi MLP and Midstream Infrastructure Conference – Enterprise Products Partners LP – slide 45
    MLP MATH: ILLUSTRATIVE ACCRETION FROM INVESTMENT 15.0% ASSUMED RETURN Source of Capital EPD Distribution Growth Matrix 100% Retained 60% Debt / 40% 60% Debt / 40% USD in millions, unless noted /unit DCF Retained DCF Common Units…
  46. Citi MLP and Midstream Infrastructure Conference – Enterprise Products Partners LP – slide 46
    CONTACT INFORMATION Randy Burkhalter Vice President, Investor Relations (713) 3816812 rburkhaltereprod.com Jackie Richert Manager, Investor Relations (713) 3813920 jmricherteprod.com ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS…

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