Enterprise Products Partners L.P. Platts NGLs Conference September 23, 2013 Lynn Bourdon www.enterpriseproducts.com Group SVP All rights reserved. Enterprise Products Partners L.P.
Topics Shale Fundamentals NGL Supply Potential U.S. LPG Export Update Ethane Fundamentals and A New Market On Purpose Polymer Production Questions All rights reserved. Enterprise Products Partners L.P. 3
Key Investment Considerations One of the largest U.S. publicly traded energy partnerships with an enterprise value of more than 70 billion 64th on Fortune 500 Integrated midstream energy system serving producers and consumers of…
EPD Portfolio of Integrated Assets Major Asset Overview 50,000 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…
Existing Wells and Shale Plays Shales: Source Rock of Conventional Oil and Gas POTENTIAL YEARS OF DRILLING Bakken / Williston 35 years Utica 80 years Marcellus 100 years Mississippian 40 years EPD Pipelines Haynesville /…
Crude Oil and Natural Gas Prices Shale Brings a New Normal Historical Forecast Source: NYMEX All rights reserved. Enterprise Products Partners L.P. 7
Plentiful Supply Available Below 5 Gas Price Required Potential for 20% Gas Additions 25Before Income to 50 Bcf/d Tax (BFIT) Returns by 2025 Includes NGL Upgrade (if any) 1 to 4 Potential gas 2 to 3 Bcf/d additions 2012 1 to 2…
Rich Gas Dominates Source: EPD Fundamentals All rights reserved. Enterprise Products Partners L.P. 9
Producer NGL Uplift Using 12 Month Strip Source: EPD Fundamentals and NYMEX; as of September 2013 All rights reserved. Enterprise Products Partners L.P. 10
NG Demand Growth Next 57 Years Power Generation, Industrial and Exports Oil Sands (Demand) 1.01.5 RC NE 0.71.5 EG West 1.0 MW EG EG 1.0 2.0 SE Gulf EG EG 1.0 Power Generation* 4.07.0 1.0 Industrial / Chems 2.04.0…
U.S. NGL Supply Potential Assuming Sufficient Markets MBbls/d 975 ROCKIES 902 APPALACHIAN 694 MID-CONTINENT MBD 839 4966 PERMIAN Total Mbd 1425 GULF COAST 131 OTHER 2015-2020 Growth 2013-2015 Growth April 2013…
NGLs U.S. Demand Matrix Normal Natural NGL Ethane Propane Butane Iso-Butane Gasoline Percent of 40% 30% 8% 10% 12% NGL BBL Petrochemicals Heating, Crop Drying, Fuels Motor Fuels Export Source: EPD Fundamentals…
Propane: Growing Supply Keeps Prices Low Global Propane Prices Incentive For Exports The U.S. has become more favorably priced and competitive in the worldwide market due to the impact of shale production on Natural Gas and…
Led by Enterprises Loadings, the U.S. is Now the Top Propane Exporter 80 Top Propane Exporters 2013 YTD 70 60 50 Million Barrels 40 30 20 10 0 2012 2013 2012 2013 2012 2013 Qatar U.S.A. Saudi Arabia…
However U.S. Butane Exports Have Lagged Behind, But Not For Long Top LPG Exporters 2013 YTD 130 120 110 100 90 80 Million Barrels 70 60 50 40 30 20 10 - 2012 2013 2012 2013 Qatar U.S.A. Saudi Arabia U.A.E. Norway…
EPDs LPG Export System The World Class Facility Continues to Grow EPD has 655 MBPD of fractionation capacity that can produce LE propane Pipeline interconnectivity provides access to additional supply Multiple high rate propane wells…
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…
Ethane Supply / Demand Picture Looking for a New Market 2,400 2,200 Available 2,000 for Export 1,800 MBPD 1,600 1,400 1,200 1,000 2013 2014 2015 2016 2017 2018 2019 2020 Supply Forcast Cracker Demand Non…
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 700MM per year incremental margin for a single plant 60…
NWE is a Prime Opportunity for a New Ethane Outlet Ethane Naphtha (MTBV) (NWE) cpg 25 250 Ethylene Costs (Dollars per pound) .08 .48 Savings of 700 Million per Year Total NWE Ethylene Capacity: 23.7 MM mt/year Converting…
Changing to an Ethane Feedstock Has a Dramatic Impact on Co-Product Supply Converting a 1.5 Billion Lb/year naphtha cracker to ethane reduces propylene production by 740 Million Lbs/year and butane production by 390 Million Lbs/year…
On Purpose Propylene Production is Expected to Fill the Gap 40 35 Economic PDH Gap 30 Recession 25 Million Pounds 20 15 10 5 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Stm. Cracker…
Summary Shale resources are significant and long term Even with projected robust gas demand growth there is still 25 Bcf/d of gas supply on the shelf at low prices U.S. LPG exports will continue to serve as a viable balancing…
Thank you Questions All rights reserved. Enterprise Products Partners L.P. 27
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