Skip to main content Howard Weil Energy Conference – Enterprise Products Partners LP Investor Presentation | Shale Experts
Loading...
Database
Slide Database

Howard Weil Energy Conference – Enterprise Products Partners LP

Enterprise Products Partners LP · Mar 25, 2014 · 39 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. Howard Weil Energy Conference – Enterprise Products Partners LP – slide 1
    Enterprise Products Partners L.P. Howard Weil Energy Conference March 25, 2014 Mike Creel www.enterpriseproducts.com Chief Executive Officer All rights reserved. Enterprise Products Partners L.P.
  2. Howard Weil Energy 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 82 billion 64th on Fortune 500 One of the largest integrated midstream energy systems Diversified sources of…
  3. Howard Weil Energy Conference – Enterprise Products Partners LP – slide 3
    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…
  4. Howard Weil Energy Conference – Enterprise Products Partners LP – slide 4
    2013: Another Record Year Solid Operating Performance(1) 16 Natural Gas Pipeline Volumes Liquids Pipeline Volumes 5.0 5.0 14.3 14.5 14 13.6 12.7 4.5 11.9 4.3 12 4.2 Million BPD TBtu/d Offshore 4.0 4.0 4.0 10 Onshore…
  5. Howard Weil Energy Conference – Enterprise Products Partners LP – slide 5
    2013: Another Record Year Led to Strong Financial Results Gross Operating Margin 4.5 Distributable Cash Flow (DCF) 5.0 4.8 (1) 4.1 (1) (1) 3.8 3.8 4.5 4.4 3.5 4.0 3.9 3.7 Billions Billions 3.5 3.3 2.5 2.3 3.0 2.8 3.0 2.9…
  6. Howard Weil Energy Conference – Enterprise Products Partners LP – slide 6
    2013: Another Record Year Successful Execution in Construction of Capital Projects Since 2009, completed 70 major capital projects totaling 10 billion of gross investment approximately 3% under budget 4% 2% 2.6% 0% % Over /…
  7. Howard Weil Energy Conference – Enterprise Products Partners LP – slide 7
    Geographic and Business Diversification Provide Multiple Earnings Streams 4.8 Billion Gross Operating Margin 4 Year Growth Capital Allocation 20132016E(1) For 12 months ended December 31, 2013 10.4 Billion 16% 23% 13% 52% 49%…
  8. Howard Weil Energy Conference – Enterprise Products Partners LP – slide 8
    Visibility to Growth: Major Capital Projects 5.8B 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…
  9. Howard Weil Energy Conference – Enterprise Products Partners LP – slide 9
    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 2 NGL fractionators; expect the other 2…
  10. Howard Weil Energy Conference – Enterprise Products Partners LP – slide 10
    Seaway Expansion Nears Completion Cushing Seaway Loop: 512 mile, 30 parallel pipeline along Seaway Oklahoma Reversal under construction Arkan (expected completion 2Q 2014) Welding complete; 9 mainline booster stations with 14 of…
  11. Howard Weil Energy Conference – Enterprise Products Partners LP – slide 11
    ECHO Distribution System Access to 8 MMBPD Refining and Water From Cushing Galena Park 24 Katy VLO H.R. PRSI Shell Pasadena Bertron Rancho 24 36 18 Motiva VLO TOT XOM Genoa ECHO Baytown Rancho II XOM 30 30 Beaumont 18…
  12. Howard Weil Energy Conference – Enterprise Products Partners LP – slide 12
    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 fee-based contracts that average 15 years with…
  13. Howard Weil Energy Conference – Enterprise Products Partners LP – slide 13
    LPGA Growing Surplus MBPD 1,250 MBPD Excess 3,000 2,500 2,000 1,500 1,000 500 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 LPG Demand Current LPG Exports Growing Surplus LPG Supply Source: EPD Fundamentals…
  14. Howard Weil Energy Conference – Enterprise Products Partners LP – slide 14
    Propane Export Destinations U.S. Exported 112 MMBbls in 2013 Europe / North Africa 21 MMBbls Far East 19% of U.S. Exports 13 MMBbls 16% of destination market 11% of U.S. Exports 5% of destination market Americas 78 MMBbls Top…
  15. Howard Weil Energy Conference – Enterprise Products Partners LP – slide 15
    EPD LPG Export Facility Significant Expansions Expected in 2015 Existing (7.5 MMBbls/mo) 1Q 2015 (1.5 MMBbls/mo) 4Q 2015 (7.0 MMBbls/mo) 4Q 2015 (New 30 P/L from Mont Belvieu) LPG Docks: 1 4 5 6 7 All rights…
  16. Howard Weil Energy Conference – Enterprise Products Partners LP – slide 16
    Financial All rights reserved. Enterprise Products Partners L.P.
  17. Howard Weil Energy Conference – Enterprise Products Partners LP – slide 17
    History of Financial Discipline While Executing Growth Strategy (1) (2) Total Growth Capex & Debt Leverage Issued 9.2 million common units in 4.5 November 2013; net proceeds of 4.2 4.1 4.7x 553 million to effectively prefund 4.0…
  18. Howard Weil Energy Conference – Enterprise Products Partners LP – slide 18
    History of Financial Discipline Retaining DCF for Financial Flexibility Long-term focus Distributable Cash Flow 4.5 (Retained 5.7B since 2009) Attractive reinvestment 4.0 opportunities in organic 1.1 0.1 growth projects 3.5 1.0…
  19. Howard Weil Energy Conference – Enterprise Products Partners LP – slide 19
    Strengthening Debt Portfolio Extending Maturities Without Increasing Costs 15 13.1 Billion Notes Issued 99% Fixed Rate Debt 20092013(1) 14.4 7.5% 8.8% 13 13.3 8.8% Average Maturity Years 12.4 Cost of Debt 6.5% 11 6.1%…
  20. Howard Weil Energy Conference – Enterprise Products Partners LP – slide 20
    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)…
  21. Howard Weil Energy Conference – Enterprise Products Partners LP – slide 21
    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…
  22. Howard Weil Energy Conference – Enterprise Products Partners LP – slide 22
    Summary Portfolio of integrated assets led to new financial / operating records in 2013 Proven track record of executing growth strategies and completing capital projects on time and within budget Strong balance sheet with one of the…
  23. Howard Weil Energy Conference – Enterprise Products Partners LP – slide 23
    Appendix All rights reserved. Enterprise Products Partners L.P.
  24. Howard Weil Energy Conference – Enterprise Products Partners LP – slide 24
    Non-GAAP Reconciliations All rights reserved. Enterprise Products Partners L.P.
  25. Howard Weil Energy Conference – Enterprise Products Partners LP – slide 25
    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…
  26. Howard Weil Energy Conference – Enterprise Products Partners LP – slide 26
    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…
  27. Howard Weil Energy Conference – Enterprise Products Partners LP – slide 27
    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…
  28. Howard Weil Energy Conference – Enterprise Products Partners LP – slide 28
    MLP Math Illustrative Example All rights reserved. Enterprise Products Partners L.P.
  29. Howard Weil Energy Conference – Enterprise Products Partners LP – slide 29
    Overview of Hypothetical Distribution Growth Analysis The slide on page 20 the following supporting schedules are intended to demonstrate the potential capital investment required to support our most recent annual distribution growth rate…
  30. Howard Weil Energy Conference – Enterprise Products Partners LP – slide 30
    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…
  31. Howard Weil Energy Conference – Enterprise Products Partners LP – slide 31
    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…
  32. Howard Weil Energy Conference – Enterprise Products Partners LP – slide 32
    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…
  33. Howard Weil Energy Conference – Enterprise Products Partners LP – slide 33
    Other Slides for Investor 1x1 Meetings All rights reserved. Enterprise Products Partners L.P.
  34. Howard Weil Energy Conference – Enterprise Products Partners LP – slide 34
    Shale Plays: Decades of Drilling and Production POTENTIAL YEARS OF DRILLING Bakken 35 years 70k locations 7MM acres Utica 95 years 60k locations Mancos / Niobrara 13MM acres 45 years 80k locations Marcellus 110 years 10MM…
  35. Howard Weil Energy Conference – Enterprise Products Partners LP – slide 35
    Plentiful Supply of Natural Gas Available Below 5 Approaching 4 Potential Net Gas Additions 24 to 45 Bcf/d by 2025 1 to 4 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…
  36. Howard Weil Energy Conference – Enterprise Products Partners LP – slide 36
    U.S. NGL Supply Potential Assuming Sufficient Markets (MBPD) 128 OTHER ROCKIES 923 1,181 APPALACHIAN 661 MID-CONTINENT PERMIAN NGL Components 4Q 2008 Current 2020 Potential 1,026 Ethane* 686 1,275 2,509 Year 2020 Propane…
  37. Howard Weil Energy Conference – Enterprise Products Partners LP – slide 37
    Ethane Supply Potential / Demand Expected to Remain Chronically Oversupplied MBPD 3,000 450700 MBPD excess before rejection 2,500 2,000 200250 MBPD rejection in 2013 1,500 1,000 500 0 2012 2013 2014 2015 2016 2017…
  38. Howard Weil Energy Conference – Enterprise Products Partners LP – slide 38
    NW Europe and Asia Offer New Markets for U.S. Ethane NW Europe Current Feedstock Mix 8% Ethane 22% Other 70% Naphtha 300 MBPD ethane demand generated by converting 1/4th of operating capacity to ethane feedstock Feedstock…
  39. Howard Weil Energy Conference – Enterprise Products Partners LP – slide 39
    New Crudes and Changing Flows EPDs Assets Are At The Center Of It All Bakken Light Canada Heavy 1.5 3 0.9 1.5 2013 2020 2013 2020 Light Imports Eagle Ford & Permian Light 0.8 0.1 5 2013 2020 2.6 ECHO 2013 2020 Heavy…

From the store

Browse maps, data & reports in the Shale Experts store