Enterprise Products Partners L.P. Raymond James Institutional Investors Conference March 3, 2014 Bryan Bulawa www.enterpriseproducts.com SVP, Finance and Treasurer All rights reserved. Enterprise Products Partners L.P.
Shale Plays Source Rock Substantial AcreageDecades of Drilling POTENTIAL YEARS OF DRILLING Bakken / Williston 35 years (7,000,000 acres) Utica 80 years (13,000,000 Acres) Mancos / Niobrara Marcellus 100 years 45 years…
Plentiful Supply of Natural Gas Available Below 5 Potential Net Gas Additions 23 to 45 Bcf/d by 2025 1 to 1 6 Bcf/d Average Well Best 25% of Wells 5 2 to 4 0 to 1 5 to 8 Bcf/d 0 to 1 Bcf/d /MMBtu For 20% BFIT 2 to 3 Bcf/d 1…
Ethane Supply Potential / Demand Could Remain Significantly Oversupplied 450700 MBPD excess before rejection In 2013, assumes 200250 MBPD of rejection Source: EPD Fundamentals All rights reserved. Enterprise Products…
NW Europe is One of Several Opportunities for a New Market for U.S. Ethane Potential Ethane Naphtha conversion (MTBV) (NWE) Price per Gallon 0.25 2.50 Grangemouth Ethylene Costs (Dollars per pound) 0.08 0.48 under conversion…
Key Investment Considerations EPD is one of the largest U.S. publicly traded energy partnerships with an enterprise value of nearly 80 billion 64th on Fortune 500 Integrated midstream energy system serving producers and consumers of…
EPD Portfolio of Integrated Assets Major Asset Overview 51,000 miles of natural gas, NGL, crude oil, refined 22 NGL & Propylene fractionators products and petrochemical pipelines 6 offshore hub platforms 200 MMBbls of NGL, refined…
Geographic and Business Diversification Provide Multiple Earnings Streams (1) 4.8 Billion Gross Operating Margin 4 Year Growth Capital Allocation 20132016E For 12 months ended December 31, 2013 10.1 Billion 16% 19% 13% 52% 57%…
Visibility to Growth: Major Capital Projects 5.5B Under Construction; 4.6B In-Service in 2013 / 1Q14 In Service Date 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 2015/2016 NGL Pipeline & Services Eagle Ford Yoakum gas processing facility…
Major NGL Capital Growth Projects Western Pipeline Expansions Front Range Contracted Volumes 120 Front Range 100 JV: 1/3 each EPD, Anadarko and DCP 435 miles of 16 pipe; DJ basin to Skellytown; 80 MBPD connections to Texas…
Major NGL Capital Growth Projects ATEX and Aegis Ethane Pipelines Initial Origins ATEX Pipeline 1,230-mile, 16 and 20 pipeline Initial capacity 125 MBPD, expandable to 265 MBPD Connected to MarkWest Houston NGL fractionator; expect…
Propane Exports Global Supply / Demand 2013 EPD Propane Exports by Destination Region: 81 MMBbls Supply North Sea / Northwest Europe Decline in North % of Cargoes Loaded % of Destination Market Sea output and ongoing field and…
EPDs LPG Export System The World Class Facility Continues to Grow EPD has 670 MBPD of NGL fractionation nameplate capacity at Mont Belvieu that can produce low ethane (LE) propane Integrated pipeline system dedicated to propane and…
Propane Dehydrogenation Unit (PDH) U.S. petrochemical industry is retooling 16 1000 to maximize ethane consumption; shift 15.2 14.7 to ethane by ethylene crackers has 14 900 reduced propylene production by 38% 12.8 800 Enterprise…
Major Crude Oil Growth Projects Seaway JV Looping & Laterals 512 mile, 30 parallel pipeline Supported by commitments up to 20 years 65 mile, 36 lateral from Jones Creek to ECHO: completed January 2014 96 mile, 30 lateral from ECHO…
Financial All rights reserved. Enterprise Products Partners L.P.
No GP IDRs and Retained DCF Support Long-Term Distribution Growth Indicative Amount of EPD Growth Capital Required to Support 0.16/unit Distribution Growth based on No GP IDRs significantly Return on Capital (ROC) Assumptions(1)…
EPD and AMZ MLP Index Attractive Total Return vs. 9 Other Asset Classes 15-Year 10-Year 5-Year 3-Year 2006 2007 2008 2009 2010 2011 2012 2013 1 1 1 1 CAGR CAGR CAGR CAGR REIT Commodities IG Bonds MLP Index EPD EPD EPD EPD REIT Small…
Non-GAAP Reconciliations All rights reserved. Enterprise Products Partners L.P.
Gross Operating Margin We evaluate segment performance based on the non-GAAP financial measure of gross operating margin. Gross operating margin (either in total or by individual segment) is an important performance measure of the core…
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…
Distributable Cash Flow Distributable cash flow is an important non-GAAP 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…
MLP Math Illustrative Example All rights reserved. Enterprise Products Partners L.P.
Overview of Hypothetical Distribution Growth Analysis The slide on page 24 and the following supporting schedules are intended to demonstrate the potential capital investment required to support our most recent annual distribution growth…
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…
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…
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…
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