Enterprise Products Partners L.P. Analyst Conference C f Houston Texas Houston, A il 17 April 17, 2013 All rights reserved. Enterprise Products Partners L.P.
Meeting Agenda 1. Michael Creel Welcome and Opening Remarks 2 2. Jim Teague Business Overview 3. Tony Chovanec Fundamentals / Supply & Demand Response 4. Bill Ordemann Unregulated g NGLs / Onshore Crude Oil / Offshore 5. Jim Cisarik…
Welcome and O Opening i R Remarks k Mike Creel Chi f Executive Chief E ti Officer Offi All rights reserved. Enterprise Products Partners L.P.
The Enterprise Way A Unique MLP Largest publicly traded energy partnership with an enterprise value of approximately 72 billion EPD went public 15 years ago in July 1998 Unique and simple structure for long-term viability and…
Complex Organization Structure All rights reserved. Enterprise Products Partners L.P. 3
Complex Organization Structure as of December 31, 2007 Dan L. L Duncan, Duncan EPCO Holdings 13.4% L.P. and Other 0.01% G.P. 77.1% L.P. Interest Affiliates Interest Interest 30.3% L.P. Interest 34 9% 34.9% Interest…
Simple Organization Structure Today EPCO & Public Affiliates Non-economic GP 37.1% L.P. 62.9% L.P. (1) Interest Interest Enterprise p Products Partners L.P. (NYSE: EPD) Completed actions over the past several years…
2012 Accomplishments Completed 26 major capital projects: total cost of approximately 3 billion and approximately 3.3% under budget Sold remaining 29.3 million ETE units in 2012 for approximately 1.1 billion in proceeds; reinvested…
EPD and AMZ MLP Index Attractive Total Return vs. 9 Other Asset Classes 10-Year 5-Year 3-Year 2006 2007 2008 2009 2010 2011 2012 3M 2013 CAGR 1 CAGR 1 CAGR 1 REIT Commodities IG Bonds MLP Index EPD EPD EPD EPD REIT EPD EPD EPD EPD…
2013: Growth and Execution Continues 7.5 billion of announced major capital projects currently under construction 2.2 billion of remaining major capital projects expected to begin service in 2013 Third gas processing train at Yoak…
Business Overview Jim Teague Chief Operating Officer All rights reserved. Enterprise Products Partners L.P.
What This Map Tells You We are not a collector of assets We are a builder of systems Systems are highly integrated between the supply and demand side of the value chain Proven ability to repurpose assets with and without partners…
The Enterprise Way Three Tightly Integrated Functions with One Common Goal Asset Marketing Development p / Distribution S i Services Management (Implementation and Optimization) (Flexibility, Market (Complete Integration…
How the Enterprise Way and Enterprise People Matter Supply: Flow Assurance and Market Choices Eagle Ford: 4 billion in asset additions in 3 years; comprehensive assets across all the hydrocarbon commodities in the hottest play in the…
The People of Enterprise Unparalleled Assets Special People All rights reserved. Enterprise Products Partners L.P. 5
Additions to Last Years Comments EPD has unique ability to identify and execute on strategic projects ATEX ethane and Seaway are cornerstone projects that we expect to build upon for years to come Add Propylene Dehydrogenation and…
Additions to Last Years Comments (continued) The U.S. energy industry must now focus on growing markets. EPD is uniquely q yp positioned to meet these g growing g demands EPD is currently in discussions for long-term contracts to…
What to Expect Crude: expect cash flows from crude oil related activities to continue to increase at a rapid rate rate, as EPD develops the leading Gulf Coast crude hub centered around our ECHO Terminal, and direct and indirect…
What to Expect (continued) Exports: EPD export-directed activities will include multiple commodities with an industry leading position in each commodities, NGLs: expect EPD to remain the largest exporter in the U.S. and to broaden…
Fundamentals / Supply & D DemanddRResponse Tony Chovanec Vi P Vice President id t All rights reserved. Enterprise Products Partners L.P.
Topics Drilling trends Production EPD production forecasts Producer economics Resource potential Developing plays near EPD assets Crude oil flows and EPDs EPD s growing asset base Demand Overview: coming to a Gulf Coast city…
Existing Wells and Shale Plays Shales: Source Rock of Conventional Oil & Gas I no coincidence Its i id EPD Pipelines Gas Crude Oil Liquids (NGL & Products) Shale Plays Existing North American Production 0 250 500 Miles…
Crude Oil and Natural Gas Prices Moving in Very Different Directions 160 16 Historical Forecast 140 14 120 12 Natural N Nat Gas 100 10 /Bbl - /Bbl Gas - /M 80 8 TII MMBtu WT WT /MMBtu 60 6 40 4…
Huge Shift from Gas to Oil Drilling Baker Hughes Rig Counts Gas rigs down 561 (60%) and Oil rigs up 277 (26%) in last 18 months Total U.S. Gas Total U.S. Oil Sources: Baker Hughes and EPD Fundamentals All rights reserved.…
Both Lean Gas and Rich Gas Rigs have Declined Precipitously Baker Hughes Rig Counts Rich Gas rigs down 273 (57%) & Lean Hz Gas rigs down 163 (65%) & Other Gas rigs down 125 (62%) in last 18 months Sources: Baker Hughes and EPD…
Plentiful Supply Available Below 5 Gas Price Gas Price Required for 20% Before Income Tax (BFIT) Returns Includes NGL Upgrade (if any) 1 to 4 PotentialPotential gas gas 2 to 3 Bcf/d additions additions 2012 Bcf/d to 2012 to…
Natural Gas Oriented Producers Equities Suffering with Low Prices (2010Today) (2010 Today) S&P 500 Gas-Oriented Producers Sources: NYSE and EPD Fundamentals All rights reserved. Enterprise Products Partners L.P. 8
Understanding Profitability and Producer Incentives Comparison of NG Values /Mcf of Gas 6.5 6 26/Mcf 6.26/Mcf Ethane 0.29 6.0 Nat. Gasoline 0.45 5.5 4 83/Mcf 4.83/Mcf I Butane Iso B t 0.63 0 63 5.0 Ethane 0.03 Nat. Gasoline…
Rich Gas Will Continue to Dominate Source: EPD Fundamentals All rights reserved. Enterprise Products Partners L.P. 10
EPD View of U.S. Supply Potential Assuming Sufficient Markets Gas NGLs Ethane Propane Butanes C5+ (Bcf/d) (MBPD) (MBPD) (MBPD) (MBPD) (MBPD) Current (Jan-13) 68.6 2,361 902 741 416 302 2015 70.0 70.8 3,645 3,790 1,670 1,740 1,000…
Where is Lean Gas On the Shelf Plentiful Resources Available for New Markets Appalachian Basin Appalachian Basin Lean Utica Lean Marcellus Uinta Basin Tite Sands & Mancos Arkoma Basin Piceance Basin Lean Woodford Tite…
Where is NGL Upside Williston Basin Three Forks Appalachian Basin Utica Oil Appalachian pp Green River Basin Basin Upper tite sands & Powder River Devonian shales Basin Niobrara Michigan & Mowry Basin Utica Uinta Basin Denver…
Emerging Opportunities Near EPD Assets Drilling Marcellus Utica Anadarko Miss. Tuscaloosa Permian San Juan Piceance Play Rich Gas Rich Gas Cana Chat / Lime Marine Avalon Shale, Mancos Mancos Woodford Shale Bone Spring, Niobrara…
NG Demand Growth Next 57 Years Power Generation, Industrial and Exports Oil Sands (Demand) 1.01.5 RC NE 0.71.5 0 1 EG West 1.0 MW EG EG 1.0 2.0 SE Gulf EG EG 10 1.0 Power Generation Generation* 40 70 4.07.0 1.0…
The Importance of Exports Critical in Maintaining NGL Production Propane Inventory Forecast MMB (excludes Propylene) 140 Without exports, inventory overhang 2012 Inventories without likely devastating to rig counts Exports 120…
Its Not Just Gas / NGLs 7.3 MMBPD Crude Oil Increase (2008 to 2020) Canada +2.35 Williston +1.25 CA / AK Rockies NE U.S. 0.36 +0.10 +0.36 Mid-Cont. +0.41 North of Cushing / 4.11 MMBPD Permian South S th off Cushing C hi…
Gulf Coast Refining Infrastructure Infrastructure built around imports and south / north flow. Crude imports to the USGC averaged almost 6 MMBPD last decade, with minimal refined product exports. EPD Pipeline EPD Marketing…
Crude and Product Flow Reversing Seaway and EPD Assets Will Play a Key Role Domestic and Canadian production expected to rise 4 0 MMBPD within 5 years 4.0 ECHO while hil refined fi d products d t exports t will easily…
U.S. PetChems: Retooling and Expanding Announced Incremental C2 Demand Ranges from 600750 600 750 MBPD CP Chemical Dow Chemical ExxonMobil CEO announced permits Filed permits to expand 4 billion investment to filed for 1 1.5 5 MM…
U.S. Ethylene Crackers: Significant Global Cost Advantage Using an average ethylene plant (1.5 billion lbs. per year), 70 a 40 cent per lb. margin advantage is Oct-2005 Current 600MM per yyear incremental marging for a singleg plant…
Enterprise Connectivity to USGC EPD Gas Pipelines EPD Liquid Pipelines Source: EPD Fundamentals All rights reserved. Enterprise Products Partners L.P. 22
Enterprise Connectivity to USGC EPD Gas Pipelines EPD Liquid Pipelines Proposed Aegis Ethane Header Source: EPD Fundamentals All rights reserved. Enterprise Products Partners L.P. 23
Enterprise Connectivity to USGC Ethylene Plants (96% of U.S. Capacity) USGC is home to 1.1MMBPD of Petchem demand for Ethane EPD Gas Pipelines EPD Liquid Pipelines Proposed Aegis Ethane Header EPD Petrochemical Customers…
Enterprise Connectivity to USGC Ethylene Plants (96% of U.S. Capacity) Petchems planning 250 MBPD of ethane demand through expansion and conversions con ersions EPD Gas Pipelines EPD Liquid Pipelines Proposed Aegis Ethane…
Energy Intensive Industries Adding Significant USGC Capacity Numerous other industries (Ammonia, Steel and Methanol) are also adding USGC capacit capacity EPD Gas Pipelines EPD Liquid Pipelines Proposed Aegis Ethane Header EPD…
Enterprise, Ideally Situated to Support World Scale Additions Last, but not least, six world scale ethylene plants are also planned Announced World Scale Ethylene Plant EPD Gas Pipelines EPD Liquid Pipelines Proposed Aegis…
Enterprise, Ideally Situated for New Demand for Multiple Commodities Several LNG Export facilities are planned near EPD Assets Announced World Scale Ethylene Plant EPD Gas Pipelines EPD Liquid Pipelines Proposed Aegis Ethane…
In Summary Natural Gas: resources have now moved to on the shelf availability for both lean and rich gas supplies, with significant additional development potential near EPD assets NGLs: some NGLs have moved into oversupplied…
Unregulated NGLs, Onshore C d Oil and Crude d Off Offshore h Bill Ordemann G Group Senior S i ViceVi P President id t All rights reserved. Enterprise Products Partners L.P.
Unregulated g NGLs Shale Production Feeds the Value Chain All rights reserved. Enterprise Products Partners L.P.
EPD Midstream Value Chain Midstream Energy Services Natural Gas Natural Gas Pipelines Storage Pipelines Ethane NGL Exports Propane Natural Gas Pipelines Butane Gas Processing Iso-Butane Natural N Gasoline NGL Pipelines Gas…
EPDs Eagle Ford NGL Pipeline Projects Approximately 340 Miles of New Pipelines 150 Eagle Ford Y-Grade 142 100 90 73 MBPD 72 50 0 2009 2010 2011 2012 Source: EPD Fundamentals All rights reserved. Enterprise Products…
EPDs Mont Belvieu Complex The World Class Facility Grows Fracs VII and VIII expected to be completed by 4Q 2013 Over 650 MBPD Mont Belvieu NGL fractionation capacity expected by year end 2013 1.0 MMBbls/d EPD capacity expected by…
EPDs Mont Belvieu Storage Caverns Largest NGL Storage Complex in the World Infrastructure projects progressing to increase deliverability and reliability Frac Area North Storage 4 wells (12 MMBbls) in development 34 existing wells…
What Interconnectivity Looks Like All rights reserved. Enterprise Products Partners L.P. 7
EPDs LPG Export System EPDs fractionators produce over 200 MBPD of low-ethane propane Pipeline interconnectivity provides access to additional supply Multiple high rate propane wells provide 20,000 bph (480 MBPD) delivery rate…
Carlsbad Gathering Systems Resurgence of an Experienced Experienced System Carlsbad system is experiencing a resurgence with the Permian liquids rich shale plays Over 180 MMcf/d of treating and processing space is available in Indian…
San Juan Gathering System Overlays a Promising Mancos Shale Play San Juan Basin producers are in the early stages of evaluating a liquids rich shale play Richest areas seem to be to the south and west EPD gathering and processing…
Onshore Crude Oil IInefficient ffi i t Market M k t Breeds B d Opportunities pp All rights reserved. Enterprise Products Partners L.P.
EPD Onshore Crude Oil Assets A System Not a Collection Assets complemented by large truck and barge fleets All rights reserved. Enterprise Products Partners L.P. 12
EPDs Eagle Ford Crude Oil Pipelines Connecting Growing Production to Markets Eagle Ford Crude / 600 Condensate Production 550 400 MBPD 214 200 Eagle Ford Crude / Condensate Production 3 35 0 2009 2010 2011 2012 Source: EPD…
EPD / PAA Joint Venture Pipeline Extending Reach While Optimizing Capital Eagle Ford Crude / 600 Condensate Production 550 400 MBPD 214 200 Eagle Ford Crude / Condensate Production 3 35 0 2009 2010 2011 2012 Source: EPD…
Seaway Crude Oil Pipeline Repurposing and Expanding Seaway JV (50 / 50 EPD / ENB) reversed flow and expanded p capacity p y to provide Gulf Coast access for Mid-Continent, Bakken and Canadian crude oil Seaway Loop: constructing…
EPD ECHO Terminal A New Player in the Market Cushing, OK 1.6 million BPD 0.8 million BPD Crude Oil Complex Houston Texas City Refining Complex Refining Complex Canadian / Bakken Crude Production 400850 MBPD West Texas Crude…
EPD ECHO Terminal Room to Grow Purchased February 2012 ECHO Terminal Property Seaway Texas City Pipeline Incoming Eagle Ford and Seaway Jones Creek Pipelines All rights reserved. Enterprise Products Partners L.P. 17
EPDs West Texas Crude Oil System Capturing Supply Growth in the Permian Basin Trinity Project Phase I: in service August 2012 Includes truck terminal and gathering systems 50 MBPD capacity Phase II: scheduled in service mid-2013…
Crude Oil Supply and Marketing Growth Lease Purchases, Year Over Region Year Increase Rockies 16.1% Mid-Continent 5.6% West Texas 31.7% Gulf Coast 41 4% 41.4% Total Lease Purchases 23.4% Total Barrels M k t d Marketed 12…
Crude Oil Supply We provide producers flow assurance and access to markets through our assets: Trucks Unloading Stations Gathering Systems and Pipelines Terminals Lease Purchase Volumes 400 373 307 300 243 211 PD MBP…
Crude Oil Marketing We focus on utilizing our assets to provide end user customers with p reliable, flexible and cost effective supply: Terminals Pipelines Barges Marketed Volumes 500 422 392 400 301 300 PD 238…
Offshore Return From Macondo All rights reserved. Enterprise Products Partners L.P.
Gulf of Mexico Crude Oil Production Reversing the Decline Oil Production Forecast 3,000 High Expected 2,500 2,000 MBPD 1,500 , M 1,000 500 0 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17…
The Deepwater The Driver of GOM Production Growth EPD can provide unified solutions for oil, gas and NGLs Development drilling is underway at Shenzi, Atlantis, Caesar Tonga, Heidelberg, Hadrian, Stampede, Shenandoa North Platte…
EPD Offshore Assets Well Positioned to Handle GOM Growth Discoveries P Prospects t All rights reserved. Enterprise Products Partners L.P. 25
Lucius Crude Oil Export Pipeline Repurposing and Extending the Value Chain SEKCO EPD / GEL 50 / 50 JV g 18 Phoenix Gas Pipeline 46 miles existing p (repurposed) 100 miles new 18 pipeline (extended) Design capacity of 115 MBPD…
Lucius Crude Oil Pipeline Repurposing and Extending the Value Chain Revitalizing Poseidons Poseidon s SMI 205 Platform (440 SMI-205 (440 water depth) to serve as Lucius Pipeline terminus Removing idle equipment Installing new…
Onshore Natural Gas Pipelines & Services S Jim Cisarik S i Vice Senior Vi P President id t All rights reserved. Enterprise Products Partners L.P.
Capitalizing on the Changing Environment Supply Breeds Markets Spreads across Gulf Coast expected to stay low from 2008 highs; presently p y in single g digits g Producer Push EPD built significant new firm capacity around…
Texas Natural Gas Pipelines Massive Network Linked to World Scale Basins Texas New Markets 8,400 miles and 103 pipeline Currently yp pursuingg over 5 Bcf/d of new load interconnections growth; industrials, ammonia, methanol, 5.5…
EPDs Eagle Ford Shale Gas Projects 500 miles of New Gas Pipelines Eagle Ford 2,500 Natural Gas Volumes 2,385 2 000 2,000 MMcf/d 1,500 1,219 1,000 500 324 50 0 2009 2010 2011 2012 Source: EPD Fundamentals All rights…
Eagle Ford Yoakum Gas Processing Plant Largest in North America in NGL Production Executed contracts to process over 900 MMcf/d of new Eagle Ford supply at Yoakum Performance for each train exceeding expectations expectations,…
Louisiana Natural Gas Pipelines Growing Markets Tied to World Scale Gas Source Acadian Haynesville Extension Louisiana Natural Gas Pipeline Volumes Supported by 1.6 Bcf/d of firm, long-term 2,500 2,143 contracts Haynesville 2,000 1…
Ideally Positioned for New and Expanded Markets EPD Texas / Louisiana assets connected to 4 of the largest resource plays p y in U.S. Eagle g Ford,, Permian,, Barnett and Haynesville y Eagle Ford build-out nearing completion. Yoakum…
Petrochemicals and M i S Marine Services i Jerry Cardillo S i Vice Senior Vi PPresident id t All rights reserved. Enterprise Products Partners L.P.
EPD Marine Services Providing marine transportation services for upstream oil and downstream refined products and chemicals This past year was a year of optimization and improvement Also focusing efforts on technology, technology…
Demand Continues to be Strong Fleet Utilization 20112012 100% 95% 90% 85% 80% Nov-10 Feb-11 Jun-11 Sep-11 Dec-11 Apr-12 Jul-12 Oct-12 Jan-13 Inland rates increased 3.5% from 2010 to 2011 and 7.3% from 2011 to 2012 All…
Enterprise Marine Services A Busy and Safe 2012 Marine Total Recordable Incident Rate 2.5 ees 2.37 per 100 Employe 2.02 2.0 1.85 1.66 1.5 Number of Incidents p 1.0 0.68 0.5 0.0 2008 2009 2010 2011 2012…
A Measured Growth Strategy The Enterprise Way: continue to integrate g Marine Services business with existing EPD assets and commodity portfolio Crudeoil,, refined products, p , NGLs,, petrochemicals Barge additions 2012 / 2013 =…
Petrochemicals All rights reserved. Enterprise Products Partners L.P.
Petrochemicals: The Enterprise Way Refinery S Suppliers li NGL Fractionation Petrochemicals C3 /C3= C2 C3 C3 C 3= LeC3 Gas Liquids Splitters C4 C4 C 4= C 5+ HPIB MTBE Isooctane All rights reserved. Enterprise…
Enterprise Propylene: The Foundation of the Franchise Refineries EPD buys C3 from suppliers (RGP refineries and CGP from crackers); EPD splits RGP into purity products and markets PGP and propane EPD also processes RGP for third…
Infrastructure Remains Critical to Our Success in Petrochemicals RGP gathering system receives material from 57 facilities across North America by pipeline, vessels, barge rail and truck barge, Increased RGP barge and ship unloading…
Enterprise World-Scale PDH Plant EPD building one of the worlds largest PDH units at MTBV Will consume up to 35 MBPD of propane to produce up to 1.65 billion lbs./year (25 MBPD) of polymer grade propylene Will integrate with…
On Purpose Propylene Production is Expected to Fill the Gap 40 35 Economic PDH Recession 30 Gap 25 Billion Pounds 20 15 10 5 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Stm. Cracker…
Propylene System 2012 Mis CGP EPD PGP EPD RGP EPD CGP Third Party PGP Third Party Receipt / Delivery Point Louisiana EPD Owned Propylene Capacity (in MMLbs) 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1 000…
Proposed Propylene System CGP Line Repurposed Mis Louisiana PGP EPD RGP EPD CGP Third Party PGP Third Party Receipt / Delivery Point All rights reserved. Enterprise Products Partners L.P. 13
C4 Value Chain: Fuels and Chemicals Extension of EPD Butane value chain ensures utilization and margins for our assets Octane Enhancement Marketconditions continue to support a shift to produce a combination of MTBE and isobutylene…
What to Expect Marine Services Strategic growth of marine assets targeting services that will be in high demand with changing oil and product flows Continued focus on efficiency and best in industry safety standards Petrochemicals…
Regulated Businesses and R fi d P Refined Products d t Tom Zulim G Group Senior S Vice President All rights reserved. Enterprise Products Partners L.P.
Topics Regulated NGL / Refined Products Pipelines Western Y-Grade Expansions Purity Ethane Systems Diluent Service Refined Products All rights reserved. Enterprise Products Partners L.P. 2
Regulated NGL / Refined Products Systems Inbound Outbound All rights reserved. Enterprise Products Partners L.P. 3
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