Bank of America Merrill Lynch Global Energy Conference November 13, 2012 Randy Fowler www.enterpriseproducts.com EVP & CFO All rights reserved. Enterprise Products Partners L.P.
Key Investment Considerations Largest publicly traded energy partnership with an enterprise value of approximately 63 billion 62nd on Fortune 500; 226th on Fortune Global 500 Integrated midstream energy infrastructure serving…
EPD Portfolio of Integrated Assets Major Asset Overview 50,700 miles of natural gas, NGL, crude oil, refined 21 NGL & Propylene fractionators products and petrochemical pipelines 6 offshore hub platforms 190 MMBbls of NGL, refined…
Geographic and Business Diversification Provide Multiple Earnings Streams 4.3 Billion Gross Operating Margin NGL Pipelines & Services (57%) For 12 months ended September 30, 2012 Natural gas processing & related NGL marketing…
Existing Wells and Shale Plays Its No Coincidence EPD Pipelines Gas Crude Oil Liquids (NGL & Products) Shale Plays Existing North American Production 0 250 500 Oil Miles Gas Source: USGS Production 2008 All rights…
Shale Plays: LongTerm Future Development Potential Play Estimated Acres Remaining Wells per Potential Years of Locations Year Drilling Marcellus 15,000,000 175,000 1,650 100 Utica 13,000,000 50,000 600 80 Eagle Ford 10,000,000…
Timeline to Energy Security Two 2020 Forecasts, Same Answer Liquid Petroleum Products 2007 2012 2020 2020 (MBPD) YTD EPD PIRA* U.S. Consumption (excl. exports) 20,700 18,500 19,000 19,700 U.S. Production (incl. refinery gain &…
Visibility to Growth: 7.7 Billion in Major Capital Projects Under Construction In Service Date 1Q12 2Q12 3Q12 4Q12 2013 20142015 Haynesville Gas Gathering Pipeline SE Stanley & Treating Facility DONE Eagle Ford Mixed NGL Pipeline (Phase…
Major EPD Growth Projects All rights reserved. Enterprise Products Partners L.P.
Shale Plays Drive EPDs Western NGL Pipeline Expansions: 1.0 Billion MAPL Rocky Mountain NGL Pipeline Expansion 218 miles of 16 pipeline loops and 18 pump modifications to increase capacity from 275 MBPD to 340 MBPD 10-year,…
EPDs Eagle Ford Shale Projects Cumulative Capital Expenditures 4 Billion Eagle Ford Crude / 875 900 Condensate Production 600 530 MBPD 300 Eagle Ford Crude / 214 Condensate Production 3 35 0 2009 2010 2011 2012 2013 Source:…
EPD 50% / PAA 50% Crude Oil Pipeline Joint Venture Long-term commitments of 210 MBPD Targeted capacity of 350 MBPD Initial base tariff rate of 1.25/Bbl from Gardendale to all destinations 35-mile Three Rivers to Lyssy Pipeline:…
Seaway Crude Oil Pipeline Relieves Cushing Bottleneck Joint Venture reversed flow of Seaway and plans to expand capacity to provide Gulf Coast access for Mid-Continent, Bakken and Canadian crude oil ECHO Terminal Pipeline began…
Largest (and Growing) Ethane Market is on the U.S. Gulf Coast Alberta Ethane Market: 0.2 MMBPD (2013) Eastern Canadian Ethane Market: 0.06 MMBPD (2013) BASF, CP Chem, Dow, Exxon, Formosa, Ineos, LyondellBassell, Sasol, Shell,…
NGL Demand Growth by Petrochemical Industry All rights reserved. Enterprise Products Partners L.P.
Low Gas to Crude Spread Drives U.S. NGL Advantage NYMEX Natural Gas Price as a % of Crude Global Indicative Ethylene Cash Costs Bcf/d Dollars Per Metric Ton Ethylene 180% 30 1,400 160% 1,200 25 140% 1,000 120% 20 800 100% 600 15…
Increased Ethane Usage Reduces U.S. Propylene Supply Demand for ethane continues to Propylene Supply from Ethylene Crackers Has Decreased with Increased Usage of Ethane increase vs. naphtha as ethylene 16 1000 crackers favor NGL…
Enterprise Import / Export Facilities Company C3 Timing (MMBbl/m) EPD 6.6 7.7 January 2013 Targa 2.6 3.7* Q3 2013 * Includes Semi Ref MarkWest 0.6 1.2** Q3 2014 ** All Semi Ref MMBbl/m Historical & Projected Propane Exports Middle…
Propane Dehydrogenation Plant (PDH) EPD announced plans to build one of the worlds largest PDH units along the Texas Gulf Coast Will consume up to 35 MBPD of propane to produce up to 1.65 billion lbs. per year (25 MBPD) of polymer…
Financial All rights reserved. Enterprise Products Partners L.P.
History of Financial Discipline While Executing Growth Strategy (1) (2) Total Growth Capex & Debt Leverage 4.0 4.0 5.1 billion of capital growth 4.6x 3.6 4.7x projects were completed 3.5 4.5x on-time and 7% under 3.1 4.5x budget…
EPD Financial Snapshot Unit Price / Yield Debt Capitalization (as of September 30, 2012) EPD LP Unit Price (November 8, 2012) 52.40 Senior Unsecured Debt (Billions) 14.4 Current Annualized Cash Distribution Rate 2.60 Junior…
EPD and AMZ MLP Index Attractive Total Return vs. 8 Other Asset Classes 10-Year 5-Year 3-Year 2006 2007 2008 2009 2010 2011 9M 2012 1 1 1 CAGR CAGR CAGR REIT Commodities IG Bonds MLP Index EPD EPD EPD EPD EPD EPD EPD EPD EPD EPD…
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…
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