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TORTOISE SYMPOSIUM – Enterprise Products Partners LP

Enterprise Products Partners LP · Sep 14, 2015 · 48 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. TORTOISE SYMPOSIUM – Enterprise Products Partners LP – slide 1
    ENTERPRISE PRODUCTS PARTNERS L.P. TORTOISE SYMPOSIUM September 14, 2015 Randy Fowler Chief Administrative Officer ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
  2. TORTOISE SYMPOSIUM – Enterprise Products Partners LP – slide 2
    ENTERPRISE PRODUCTS PARTNERS L.P. (EPD) One of the largest integrated midstream energy companies Integrated system enables EPD to reduce impact of cyclical commodity swings Large supply aggregator and access to domestic and…
  3. TORTOISE SYMPOSIUM – Enterprise Products Partners LP – slide 3
    SUCCESSFUL EXECUTION THROUGHOUT CYCLES Increased Cash Distributions for 44 Consecutive Quarters MLP Equities: Higher Correlation to Crude for Last 12 Months EPD Has Delivered Consistent Results Throughout Cycles 400% 1,600 160 Gross…
  4. TORTOISE SYMPOSIUM – Enterprise Products Partners LP – slide 4
    SIGNIFICANT INSIDER OWNERSHIP / DEEP BENCH Significant insider ownership EPCO and affiliates own 34.5% of L.P. units EPCO & Affiliates Supportive General Partner 100% Facilitated elimination of incentive General…
  5. TORTOISE SYMPOSIUM – Enterprise Products Partners LP – slide 5
    LOW GAS TO CRUDE SPREAD CONTINUING TO DRIVE U.S. NGL ADVANTAGE NYMEX Natural Gas Price as a % of Crude U.S. Ethane Crackers: Global Cost Advantage 70 Shale Gas Production Now Totals Asia Naphtha 50% of Total Gas Production 60…
  6. TORTOISE SYMPOSIUM – Enterprise Products Partners LP – slide 6
    FUNDAMENTAL UPDATE ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
  7. TORTOISE SYMPOSIUM – Enterprise Products Partners LP – slide 7
    U.S. NATURAL GAS SUPPLY POTENTIAL ASSUMING SUFFICIENT MARKETS (BCF/D) 1 1 ROCKIES OTHER 14 13 21 28 APPALACHIAN MID-CONTINENT 11 10 Base Base Case Case PERMIAN Current 78 Region Current 2020 2025 Gulf Coast (incl.…
  8. TORTOISE SYMPOSIUM – Enterprise Products Partners LP – slide 8
    U.S. OIL & CONDENSATE SUPPLY POTENTIAL ASSUMING SUFFICIENT MARKETS (MBPD) 3,447 CANADA 4,800 ROCKIES 1,104 1,855 956 2,092 117 122 AK and CA APPALACHIAN MID-CONTINENT 658 603 PERMIAN Current 9,177 Forecast Region…
  9. TORTOISE SYMPOSIUM – Enterprise Products Partners LP – slide 9
    U.S. NGL SUPPLY POTENTIAL ASSUMING SUFFICIENT MARKETS (MBPD) 136 127 ROCKIES OTHER 703 859 693 1,015 APPALACHIAN MID-CONTINENT 448 427 PERMIAN Current 3,922 Potential NGL Components Current 2020 790 Year 2020…
  10. TORTOISE SYMPOSIUM – Enterprise Products Partners LP – slide 10
    U.S. ETHANE SUPPLY / DEMAND OUTLOOK MBPD 3,000 Supply Range 2,500 2,000 1,500 1,000 500 2014 2015 2016 2017 2018 2019 2020+ Production Range Ethane Supply Existing Demand Conversions & Expansions New Builds…
  11. TORTOISE SYMPOSIUM – Enterprise Products Partners LP – slide 11
    U.S. LPGA GROWING SURPLUS Supply Range MBPD 1 MMBPD LPG 3,000 Export Capacity 2,500 2,000 1,500 1,000 500 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 LPG Supply LPG Demand Current LPG Exports Surplus…
  12. TORTOISE SYMPOSIUM – Enterprise Products Partners LP – slide 12
    THE CHEMICALS INDUSTRY IS MAKING VERY LARGE BETS ON U.S. SHALES American Chemistry Council (ACC) is tracking 225 U.S. chemical projects valued at 145 billion. They estimate that 60% of these new investments are from foreign…
  13. TORTOISE SYMPOSIUM – Enterprise Products Partners LP – slide 13
    PROJECT UPDATE ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
  14. TORTOISE SYMPOSIUM – Enterprise Products Partners LP – slide 14
    EPD: NATURAL GAS, NGLS, CRUDE OIL, REFINED PRODUCTS AND PETROCHEMICALS Asset Overview Connectivity Pipelines: 49,000 miles of natural gas, NGL, crude oil, refined products and Connected to U.S. major shale basins petrochemical…
  15. TORTOISE SYMPOSIUM – Enterprise Products Partners LP – slide 15
    MARKETS ALWAYS PRESENT OPPORTUNITIES MORNING MEETING EPITOMIZES: TEAMWORK, INTEGRATION AND CONTROLS ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 16
  16. TORTOISE SYMPOSIUM – Enterprise Products Partners LP – slide 16
    PROJECT FOCUS ON DEMAND PULL AND MARKET CREATION PDH Facility LPG Export Terminal Aegis Ethane Pipeline Midland to Sealy Crude Oil Pipeline Ethane Export Terminal ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS…
  17. TORTOISE SYMPOSIUM – Enterprise Products Partners LP – slide 17
    ETHANE TAKEAWAY SOLUTIONS PROVIDES ACCESS TO GULF COAST MARKETS ATEX Pipeline Currently moving 70 MBPD; expandable to 265 MBPD Connected to 4 NGL fractionators 15 year shiporpay commitments 150 ATEX C2 Contracted Volumes Ethane…
  18. TORTOISE SYMPOSIUM – Enterprise Products Partners LP – slide 18
    POTENTIAL TAKEAWAY FOR NORTHEAST NGLs AND MIDWEST REFINED PRODUCTS Centennial Pipeline 800mile, 26/24 northbound refined products pipeline from Beaumont, TX to Bourbon, IL; idle since 2011 2 MMBbls of refined products storage…
  19. TORTOISE SYMPOSIUM – Enterprise Products Partners LP – slide 19
    MIDLAND TO HOUSTON CRUDE OIL PIPELINE From the Permian Supply Hub to Multiple Markets 400mile, 24 pipeline from Oklahoma Cushing Midland to Sealy, Texas Capacity: 450 MBPD Supported by longterm agreements Hobbs Expected…
  20. TORTOISE SYMPOSIUM – Enterprise Products Partners LP – slide 20
    HOUSTON AREA CRUDE OIL DISTRIBUTION Moore Road 36/24/24 EHSC From Cushing 45 draft Galena Park 24 XOM 24 Sealy Baytown 24 VLO H.R. PRSI Shell 24/30/30 Beaumont Katy 24 1012 Rancho I 30 24 Motiva VLO TOT XOM 24 36 BMW…
  21. TORTOISE SYMPOSIUM – Enterprise Products Partners LP – slide 21
    ENTERPRISE EXPORT CAPACITY: LINKING U.S. SUPPLIES TO GLOBAL DEMAND Beaumont West Beaumont East Mont Enterprise Belvieu HSC Morgans Point Ship Barge Under Product Docks Docks Construction ECHO Enterprise Multi 2 2 2…
  22. TORTOISE SYMPOSIUM – Enterprise Products Partners LP – slide 22
    U.S. BECOMES LARGEST EXPORTER OF PROPANE Propane Exports from EPD Facilities as of July 2015 2015 Propane Exports from EPD Facilities by Destination Region: 45 MMBbls % of Cargoes Loaded % of Destination Market North America 26% 51%…
  23. TORTOISE SYMPOSIUM – Enterprise Products Partners LP – slide 23
    LPG LOADINGS Historical and Committed Loadings vs. Capacity 1,150 Cargos Scheduled from 20152020 16 Avg Monthly Loadings Per Year (As of Aug2015) Operational Capacity 14 12 10 MMBbls 8 6 4 Existing Capacity: 9.0…
  24. TORTOISE SYMPOSIUM – Enterprise Products Partners LP – slide 24
    ETHANE EXPORT FACILITY Largest of Its Kind Located at Morgans Shipbuilders Response to Increased Ethane Demand Point on Houston Ship Estimated Ethane / Ethylene Vessel Capacity (1) 14 Channel; combined 50 12 operating rate…
  25. TORTOISE SYMPOSIUM – Enterprise Products Partners LP – slide 25
    GROWING U.S. PROPANE DEMAND ENTERPRISE PDH FACILITY New PDH facility will produce up to 1.65 billion pounds per year of polymer grade propylene or 25 MBPD Consume 35 MBPD of propane 100% of capacity contracted under feebased…
  26. TORTOISE SYMPOSIUM – Enterprise Products Partners LP – slide 26
    FINANCIAL UPDATE ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
  27. TORTOISE SYMPOSIUM – Enterprise Products Partners LP – slide 27
    SOLID OPERATING PERFORMANCE 5.5 5.5 Liquids Pipeline Volumes 5.3 Equity NGL Production & Feebased Processing 140 126 4.8 129 5 5.0 5.0 116 4.4 116 4.8 Feebased Processing 120 Equity NGL Production 4.5 101 Million…
  28. TORTOISE SYMPOSIUM – Enterprise Products Partners LP – slide 28
    STRONG FINANCIAL RESULTS Gross Operating Margin 4.5 Distributable Cash Flow (DCF) (1) 5.3 4.1 4.1 5.0 4.8 3.8 3.8 4.4 3.9 3.9 3.5 3.9 4.0 3.7 Billions Billions 3.0 2.6 2.5 3.0 2.8 2.0 2.0 1.5 1.0 0.0 0.5 2011…
  29. TORTOISE SYMPOSIUM – Enterprise Products Partners LP – slide 29
    HISTORY OF FINANCIAL DISCIPLINE WHILE EXECUTING GROWTH STRATEGY Total Growth Capex & Debt Leverage Retained 1.4 billion of DCF 8.0 7.8 in 2014; 0.5 billion for first 4.6 4.7x six months of 2015 to 7.0 reinvest in the…
  30. TORTOISE SYMPOSIUM – Enterprise Products Partners LP – slide 30
    STRENGTHENING DEBT PORTFOLIO Extending Maturities Without Increasing Costs 18.4 Billion Notes Issued 96.6% Fixed Rate Debt 15 2009 2015 14.6 14.1 7.5% 13 13.3 Average Maturity Years 10.3% 12.4 Cost of Debt 10.6%…
  31. TORTOISE SYMPOSIUM – Enterprise Products Partners LP – slide 31
    NO GP IDRS AND RETAINED DCF SUPPORT LONGTERM DISTRIBUTION GROWTH Indicative Amount of Annual EPD Growth Capital No GP IDRs significantly Required to Support 0.08/unit Distribution Growth reduces cost of capital, (1) based on…
  32. TORTOISE SYMPOSIUM – Enterprise Products Partners LP – slide 32
    APPENDIX ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
  33. TORTOISE SYMPOSIUM – Enterprise Products Partners LP – slide 33
    VISIBILITY TO GROWTH: MAJOR CAPITAL PROJECTS 4.6B InService 2014 / 3Q 2015; 8.0B Under Construction In Service Date 2014 1Q2015 2Q2015 3Q2015 4Q2015 2016/2017 NGL Pipeline & Services Mid-America NGL pipeline expansion Rocky Mountain…
  34. TORTOISE SYMPOSIUM – Enterprise Products Partners LP – slide 34
    REGIONAL NGL HUBS: USGC VS. EAST COAST NO COMPARISON USGC East Coast SUPPLY Diversity 7 unique basins linked 1 basin for all supply Supply Potential Estimated 4.5 MMBPD by 2020 Estimated 1 MMBPD by 2020 STORAGE Capacity 300 MMBbls…
  35. TORTOISE SYMPOSIUM – Enterprise Products Partners LP – slide 35
    MARINE TERMINAL / DOCK ACTIVITY Annualized 4Q Oiltanking for 2014 LPG Export Loadings 350 Product Export Loadings (1) 329 300 275 252 300 Processed Condensate 283 250 237 Refined & Petrochemical Products 250 200 208 200…
  36. TORTOISE SYMPOSIUM – Enterprise Products Partners LP – slide 36
    INDICATIVE ECONOMICS FOR KEY OIL PLAYS Before / After Drill and Complete Cost Improvements Current Activity Assumes HighGrade Drilling 90 HighGrade Average 80 Pricing Assumes 20% BFIT ROI 70 60 50 40 30 20 10…
  37. TORTOISE SYMPOSIUM – Enterprise Products Partners LP – slide 37
    INDICATIVE ECONOMICS FOR KEY GAS PLAYS Before / After Drill and Complete Cost Improvements Current Activity Assumes HighGrade Drilling 5.00 HighGrade Average 4.00 Pricing Assumes 20% BFIT ROI 3.00 2.00 1.00…
  38. TORTOISE SYMPOSIUM – Enterprise Products Partners LP – slide 38
    EPD AN INDUSTRY LEADER CONNECTING PRODUCERS WITH PREMIUM MARKETS EPD will export over 20 MMBbls of Processed Condensate in 2015 Source: EPD ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 39
  39. TORTOISE SYMPOSIUM – Enterprise Products Partners LP – slide 39
    MLP MATH ILLUSTRATIVE EXAMPLE ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
  40. TORTOISE SYMPOSIUM – Enterprise Products Partners LP – slide 40
    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…
  41. TORTOISE SYMPOSIUM – Enterprise Products Partners LP – slide 41
    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…
  42. TORTOISE SYMPOSIUM – Enterprise Products Partners LP – slide 42
    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…
  43. TORTOISE SYMPOSIUM – Enterprise Products Partners LP – slide 43
    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…
  44. TORTOISE SYMPOSIUM – Enterprise Products Partners LP – slide 44
    NONGAAP RECONCILIATIONS ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
  45. TORTOISE SYMPOSIUM – Enterprise Products Partners LP – slide 45
    GROSS OPERATING MARGIN We evaluate segment performance based on the nonGAAP financial measure of gross operating margin. Gross operating margin (either in total or by individual segment) is an important performance measure of the core…
  46. TORTOISE SYMPOSIUM – Enterprise Products Partners LP – slide 46
    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…
  47. TORTOISE SYMPOSIUM – Enterprise Products Partners LP – slide 47
    DISTRIBUTABLE CASH FLOW Distributable cash flow is an important nonGAAP 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…
  48. TORTOISE SYMPOSIUM – Enterprise Products Partners LP – slide 48
    CONTACT INFORMATION Randy Burkhalter Vice President, Investor Relations (713) 3816812 rburkhaltereprod.com Jackie Richert Senior Manager, Investor Relations (713) 3813920 jmricherteprod.com ALL RIGHTS RESERVED. ENTERPRISE…

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