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UBS MLP One on One Conference – Enterprise Products Partners LP

Enterprise Products Partners LP · Jan 14, 2014 · 41 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. UBS MLP One on One Conference – Enterprise Products Partners LP – slide 1
    Enterprise Products Partners L.P. UBS MLP One-on-One Conference January 14 and 15, 2014 Randy Fowler www.enterpriseproducts.com EVP and CFO All rights reserved. Enterprise Products Partners L.P.
  2. UBS MLP One on One Conference – Enterprise Products Partners LP – slide 2
    Natural Gas, NGL and Crude Oil Supply and Demand Fundamentals All rights reserved. Enterprise Products Partners L.P.
  3. UBS MLP One on One Conference – Enterprise Products Partners LP – slide 3
    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…
  4. UBS MLP One on One Conference – Enterprise Products Partners LP – slide 4
    Plentiful Supply of Natural Gas Available Below 5 Gas Price Required for 20% Before Income Tax (BFIT) Returns Potential Net Gas Additions 25 to 50 Bcf/d by 2025 Includes NGL Upgrade (if any) 1 to 4 2 to 3 Bcf/d 1 to 2 Bcf/d 5 to…
  5. UBS MLP One on One Conference – Enterprise Products Partners LP – slide 5
    U.S. Natural Gas Supply Potential Assuming Sufficient Markets (Bcf/d) 1 OTHER ROCKIES 18 29 APPALACHIAN 19 MID-CONTINENT Base High PERMIAN Case Case Region Current 2020 2020 Potential Gulf Coast 28 31 40 7 Year 2020…
  6. UBS MLP One on One Conference – Enterprise Products Partners LP – slide 6
    U.S. NGL Supply Potential Assuming Sufficient Markets (MBPD) 129 OTHER ROCKIES 961 1,103 APPALACHIAN 645 MID-CONTINENT PERMIAN NGL Components Current 2020 Potential 875 Ethane* 970 2,425 Year 2020 Propane 838 1,401…
  7. UBS MLP One on One Conference – Enterprise Products Partners LP – slide 7
    Low Gas to Crude Spread Continuing to Drive U.S. NGL Advantage NatGas as a % of WTI vs. U.S. Shale Gas Production U.S. Ethane Crackers: Global Cost Advantage 140% 40 70 NatGas at % of WTI Oct-2005 Current 120% 35 60 U.S. Cents Per…
  8. UBS MLP One on One Conference – Enterprise Products Partners LP – slide 8
    Ethane Supply / Demand Picture Could Remain Significantly Oversupplied 450700 MBPD excess before rejection In 2013, 200250 MBPD before rejection Source: EPD Fundamentals All rights reserved. Enterprise Products Partners…
  9. UBS MLP One on One Conference – Enterprise Products Partners LP – slide 9
    NW Europe is a Prime Opportunity for a New Market for U.S. Ethane Potential Ethane Naphtha conversion (MTBV) (NWE) Price per Gallon 0.25 2.50 Ethylene Costs (Dollars per pound) 0.08 0.48 Advantage of 600 Million per Year Total…
  10. UBS MLP One on One Conference – Enterprise Products Partners LP – slide 10
    LPG Supply / Demand Picture: Significant Bbls Available for Export MBPD 3,000 2,500 1,200 MBPD Excess 2,000 1,500 1,000 500 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 LPG Demand Current LPG Exports…
  11. UBS MLP One on One Conference – Enterprise Products Partners LP – slide 11
    Propane Exports Global Supply / Demand EPD 10 Mos. 2013: 58.6 MMBbls Supply North Sea / Northwest Europe Decline in North Exports Loaded % of Destination Market Sea output and ongoing field and terminal maintenance programs…
  12. UBS MLP One on One Conference – Enterprise Products Partners LP – slide 12
    Changing Flow of Crude Oil EPDs Assets Are At The Center Of It All Canada Heavy (20122020) Light (20122020) 1.8 MMBPD to 3.1 MMBPD 0.7 MMBPD to 1.5MMBPD 2012 2020 2012 2020 Light Imports 20122020 1.2 MMBPD to 0 MMBPD…
  13. UBS MLP One on One Conference – Enterprise Products Partners LP – slide 13
    Enterprise Products Partners L.P. All rights reserved. Enterprise Products Partners L.P.
  14. UBS MLP One on One Conference – Enterprise Products Partners LP – slide 14
    Key Investment Considerations 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 natural…
  15. UBS MLP One on One Conference – Enterprise Products Partners LP – slide 15
    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…
  16. UBS MLP One on One Conference – Enterprise Products Partners LP – slide 16
    Geographic and Business Diversification Provides Multiple Earnings Streams 4.7 Billion Gross Operating Margin 3 Year Growth Capital Allocation 20132015E (1) For 12 months ended September 30, 2013 10.0 Billion 17% 19% 52% 13%…
  17. UBS MLP One on One Conference – Enterprise Products Partners LP – slide 17
    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…
  18. UBS MLP One on One Conference – Enterprise Products Partners LP – slide 18
    Major NGL Capital Growth Projects ATEX and Aegis Ethane Pipelines ATEX Pipeline Initial Origins 1,230-mile, 16 and 20 pipeline Initial capacity 125 MBPD, expandable to at least 260 MBPD 15 year ship-or-pay commitments Currently…
  19. UBS MLP One on One Conference – Enterprise Products Partners LP – slide 19
    EPDs LPG Export System The World Class Facility Continues to Grow EPD has 655 MBPD of NGL fractionation capacity at Mont Belvieu that can produce low ethane (LE) propane Integrated pipeline system dedicated to propane and butane…
  20. UBS MLP One on One Conference – Enterprise Products Partners LP – slide 20
    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…
  21. UBS MLP One on One Conference – Enterprise Products Partners LP – slide 21
    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 96 mile, 30 lateral from ECHO to Beaumont / Port…
  22. UBS MLP One on One Conference – Enterprise Products Partners LP – slide 22
    ECHO Terminal The Crude Oil Crossroads of Southeast Texas Expansion Phase 1 in service 2Q 2014 Expansion Phase 2 in-service 4Q 20141Q 2015 Beltway 8 Total Tankage 12 x 400 MBbl 5 x 250 MBbl 400 400 Phase 2 400 400 400 400 400…
  23. UBS MLP One on One Conference – Enterprise Products Partners LP – slide 23
    Financial All rights reserved. Enterprise Products Partners L.P.
  24. UBS MLP One on One Conference – Enterprise Products Partners LP – slide 24
    (1) Solid Operating Performance 16 Natural Gas Pipeline Volumes 5,000 Liquids Pipeline Volumes 14.3 14.5 4,855 14 13.8 4,800 12.7 11.9 4,600 12 TBtu/d MBPD Offshore 4,400 4,289 10 4,205 4,200 Onshore 8 4,024 3,990…
  25. UBS MLP One on One Conference – Enterprise Products Partners LP – slide 25
    Drives Strong Financial Results 5.0 Gross Operating Margin 4.5 Distributable Cash Flow (DCF) 4.4 4.1 3.8 4.0 3.9 3.5 3.5 3.3 2.9 Billions 3.0 2.7 Billions 3.1 2.5 2.3 2.8 2.0 2.6 1.6 2.1 1.5 1.0 0.0 0.5 2009…
  26. UBS MLP One on One Conference – Enterprise Products Partners LP – slide 26
    History of Financial Discipline While Executing Growth Strategy (1) (2) Total Growth Capex & Debt Leverage 4.5 4.2 4.50x 4.0 3.9 4.2x 3.6 4.25x 3.5 3.1 Debt / Adjusted EBITDA Total Growth Capex 3.0 3.9x 4.00x 2.5…
  27. UBS MLP One on One Conference – Enterprise Products Partners LP – slide 27
    Strengthening Debt Portfolio Extending Maturities Without Increasing Costs 14 8.0% 11.1 Billion Notes Issued 98% Fixed Rate Debt 20092013 13.4 10.4% 12 12.4 7.0% 10.4% 11.0 Cost of Debt 6.1% Year 10 6.0% 5.7% 5.8%…
  28. UBS MLP One on One Conference – Enterprise Products Partners LP – slide 28
    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)…
  29. UBS MLP One on One Conference – Enterprise Products Partners LP – slide 29
    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 9M 2013 1 1 1 1 CAGR CAGR CAGR CAGR REIT Commodities IG Bonds MLP Index EPD EPD EPD EPD REIT…
  30. UBS MLP One on One Conference – Enterprise Products Partners LP – slide 30
    Non-GAAP Reconciliations All rights reserved. Enterprise Products Partners L.P.
  31. UBS MLP One on One Conference – Enterprise Products Partners LP – slide 31
    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…
  32. UBS MLP One on One Conference – Enterprise Products Partners LP – slide 32
    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…
  33. UBS MLP One on One Conference – Enterprise Products Partners LP – slide 33
    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…
  34. UBS MLP One on One Conference – Enterprise Products Partners LP – slide 34
    Appendix All rights reserved. Enterprise Products Partners L.P.
  35. UBS MLP One on One Conference – Enterprise Products Partners LP – slide 35
    Visibility to Growth: Major Capital Projects 7.3B Under Construction; 2.3B In-Service in 2013 In Service Date 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 2015 NGL Pipeline & Services Eagle Ford Yoakum gas processing facility (phase III…
  36. UBS MLP One on One Conference – Enterprise Products Partners LP – slide 36
    MLP Math Illustrative Example All rights reserved. Enterprise Products Partners L.P.
  37. UBS MLP One on One Conference – Enterprise Products Partners LP – slide 37
    Overview of Hypothetical Distribution Growth Analysis The slide on page 29 and the following supporting schedules are intended to demonstrate the potential capital investment required to support our most recent annual distribution growth…
  38. UBS MLP One on One Conference – Enterprise Products Partners LP – slide 38
    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…
  39. UBS MLP One on One Conference – Enterprise Products Partners LP – slide 39
    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…
  40. UBS MLP One on One Conference – Enterprise Products Partners LP – slide 40
    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…
  41. UBS MLP One on One Conference – Enterprise Products Partners LP – slide 41
    MLP Math: Illustrative Accretion from Investment 17.5% Assumed Return Source of Capital EPD Distribution Growth Matrix 100% Retained 70% Debt / 30% 70% Debt / 30% USD in millions, unless noted /unit DCF Retained DCF Common Units…

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