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RBC Capital Markets MLP Conference – Enterprise Products Partners LP

Enterprise Products Partners LP · Nov 19, 2015 · 43 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. RBC Capital Markets MLP Conference – Enterprise Products Partners LP – slide 1
    ENTERPRISE PRODUCTS PARTNERS L.P. RBC CAPITAL MARKETS MLP CONFERENCE November 1819, 2015 Randy Fowler Chief Administrative Officer ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
  2. RBC Capital Markets MLP Conference – 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. RBC Capital Markets MLP Conference – Enterprise Products Partners LP – slide 3
    SIGNIFICANT INSIDER OWNERSHIP / DEEP BENCH Significant insider ownership EPCO and affiliates own 34% of L.P. units EPCO & Affiliates Supportive General Partner 100% Facilitated elimination of incentive General distribution…
  4. RBC Capital Markets MLP Conference – Enterprise Products Partners LP – slide 4
    SUCCESSFUL EXECUTION THROUGHOUT CYCLES Increased Cash Distributions for 45 Consecutive Quarters MLP Equities: Higher Correlation to Crude for Last 12 Months EPD Has Delivered Consistent Results Throughout Cycles 400% 1,600 160 350%…
  5. RBC Capital Markets MLP Conference – Enterprise Products Partners LP – slide 5
    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…
  6. RBC Capital Markets MLP Conference – Enterprise Products Partners LP – slide 6
    FUNDAMENTALS UPDATE ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
  7. RBC Capital Markets MLP Conference – Enterprise Products Partners LP – slide 7
    INDICATIVE ECONOMICS FOR KEY OIL PLAYS Current Activity Assumes HighGrade Drilling 90 HighGrade Average 80 Pricing Assumes 20% BFIT ROI 70 60 50 40 30 20 10 0 Source: EPD Fundamentals Estimates ALL RIGHTS…
  8. RBC Capital Markets MLP Conference – Enterprise Products Partners LP – slide 8
    INDICATIVE ECONOMICS FOR KEY GAS PLAYS Current Activity Assumes HighGrade Drilling 5.00 HighGrade Average 4.00 Pricing Assumes 20% BFIT ROI 3.00 2.00 1.00 0.00 Source: EPD Fundamentals Estimates ALL RIGHTS…
  9. RBC Capital Markets MLP Conference – Enterprise Products Partners LP – slide 9
    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…
  10. RBC Capital Markets MLP Conference – 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. RBC Capital Markets MLP Conference – Enterprise Products Partners LP – slide 11
    THE CHEMICALS INDUSTRY IS MAKING VERY LARGE INVESTMENTS BASED 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…
  12. RBC Capital Markets MLP Conference – Enterprise Products Partners LP – slide 12
    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…
  13. RBC Capital Markets MLP Conference – Enterprise Products Partners LP – slide 13
    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…
  14. RBC Capital Markets MLP Conference – Enterprise Products Partners LP – slide 14
    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…
  15. RBC Capital Markets MLP Conference – Enterprise Products Partners LP – slide 15
    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.…
  16. RBC Capital Markets MLP Conference – Enterprise Products Partners LP – slide 16
    NORTHEAST GAS DISPLACES OTHER SUPPLIES WHILE DEMAND ON GULF COAST GROWS 2014 to 2020 Change in NG Flow Bakken Canada RC & E.G. +0.51.0 +1.5 +1.02.0 Midwest Electric Gen +2 Bcf/d Rerouted Midwest Supply: 1 Bcf/d Marcellus &…
  17. RBC Capital Markets MLP Conference – Enterprise Products Partners LP – slide 17
    EPD MAJOR ORGANIC GROWTH PROJECTS Demand Pull and Market Creation Focus Aegis Ethane PDH Pipeline Facility Houston / Port Arthur / Beaumont Crude Oil Distribution Echo Crude Oil LPG export Oiltanking terminal…
  18. RBC Capital Markets MLP Conference – Enterprise Products Partners LP – slide 18
    VISIBILITY TO GROWTH: MAJOR CAPITAL PROJECTS BY INSERVICE DATE 2.5 0.9 Billion 7.8 Billion PDH 2.3 Crude Oil / Refined Products Infrastructure LPG Export Expansion Aegis Ethane Pipeline 2.0 MidlandtoSealy 1.8 Other Ethane…
  19. RBC Capital Markets MLP Conference – Enterprise Products Partners LP – slide 19
    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 ATEX C2 Contracted Volumes 150 Ethane…
  20. RBC Capital Markets MLP Conference – Enterprise Products Partners LP – slide 20
    NORTHEAST PROPANE BALANCES REQUIRES SEASONAL SOLUTION Northeast has transitioned from a supply short to a seasonal supply long position Without an evacuation pipeline, propane is steeply discounted due to growing volumes evacuated…
  21. RBC Capital Markets MLP Conference – Enterprise Products Partners LP – slide 21
    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…
  22. RBC Capital Markets MLP Conference – Enterprise Products Partners LP – slide 22
    MIDLAND TO HOUSTON CRUDE OIL PIPELINE From the Permian Supply Hub to Multiple Markets 400mile, 24 pipeline from Oklahoma Midland to Sealy, Texas Cushing Capacity: 450 MBPD Major environmental permits received; Long lead time…
  23. RBC Capital Markets MLP Conference – Enterprise Products Partners LP – slide 23
    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…
  24. RBC Capital Markets MLP Conference – Enterprise Products Partners LP – slide 24
    ENTERPRISE EXPORT CAPACITY: LINKING U.S. SUPPLIES TO GLOBAL DEMAND Beaumont West Beaumont East Mont Enterprise Belvieu HSC Morgans Point Ship Barge Under Odfjell Product Docks Docks Construction ECHO Enterprise Multi 2…
  25. RBC Capital Markets MLP Conference – Enterprise Products Partners LP – slide 25
    U.S. BECOMES LARGEST EXPORTER OF LPG LPG Exports from EPD Facilities as of October 2015 YTD 2015 LPG Exports from EPD Facilities by Destination Region: 84 MMBbls % of Cargoes Loaded % of Destination Market North America 24% 28%…
  26. RBC Capital Markets MLP Conference – Enterprise Products Partners LP – slide 26
    ENTERPRISE LPG PROJECTS: EXPANDING THE PREMIER U.S. LPG EXPORT FACILITY 16,500 BPH, using two dedicated pipes from Mont Belvieu (9.0 MMBbls/month) Upon completion of the expansion: New 30 pipeline from Mont Belvieu Maximum…
  27. RBC Capital Markets MLP Conference – Enterprise Products Partners LP – slide 27
    ETHANE EXPORT FACILITY Largest of Its Kind Shipbuilders Response to Increased Ethane Demand Estimated Ethane / Ethylene Vessel Capacity (1) 14 50 12 Capacity (MMBbls) 10 8 6 29 4 14 2 5 0 2014 2015 2016 2017 (1) of…
  28. RBC Capital Markets MLP Conference – Enterprise Products Partners LP – slide 28
    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…
  29. RBC Capital Markets MLP Conference – Enterprise Products Partners LP – slide 29
    FINANCIAL UPDATE ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
  30. RBC Capital Markets MLP Conference – Enterprise Products Partners LP – slide 30
    SOLID OPERATING PERFORMANCE 6.0 Liquids Pipeline Volumes 5.7 Equity NGL Production & Feebased Processing 140 4.8 4.9 5 5.5 5.3 126 120 116 4.4 116 129 Feebased Processing Equity NGL Production 4.5 5.0 101 Million BPD…
  31. RBC Capital Markets MLP Conference – Enterprise Products Partners LP – slide 31
    STRONG FINANCIAL RESULTS Gross Operating Margin Distributable Cash Flow (DCF) (1) 5.3 4.5 4.5 5.0 4.8 4.1 4.1 4.4 3.8 3.8 3.9 4.0 3.9 4.0 3.5 3.7 Billions Billions 3.0 3.0 3.0 2.5 2.8 2.0 1.5 1.0 0.0 0.5 2011 2012…
  32. RBC Capital Markets MLP Conference – Enterprise Products Partners LP – slide 32
    FINANCIAL DISCIPLINE SUPPORTS FINANCIAL FLEXIBILITY AND FUTURE GROWTH Simplified structure by collapsing GP while preserving MLP model Capped splits at 25% in 2002; eliminated IDRs in 2010 EPCO and affiliates waived 322 million of…
  33. RBC Capital Markets MLP Conference – Enterprise Products Partners LP – slide 33
    HISTORY OF FINANCIAL DISCIPLINE WHILE EXECUTING GROWTH STRATEGY Total Growth Capex & Debt Leverage Retained 1.4 billion of DCF in 8.0 7.8 2014; 0.7 billion for first nine 4.6 4.7x months of 2015 to reinvest in the 7.0…
  34. RBC Capital Markets MLP Conference – Enterprise Products Partners LP – slide 34
    STRENGTHENING DEBT PORTFOLIO Extending Maturities Without Increasing Costs 18.4 Billion Notes Issued 92.8% Fixed Rate Debt 15 2009 2015 14.4 14.1 7.5% 13 13.3 Average Maturity Years 10.3% 12.4 Cost of Debt 10.6%…
  35. RBC Capital Markets MLP Conference – Enterprise Products Partners LP – slide 35
    APPENDIX ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
  36. RBC Capital Markets MLP Conference – Enterprise Products Partners LP – slide 36
    VISIBILITY TO GROWTH: MAJOR CAPITAL PROJECTS 5.0B InService 2014 / 3Q 2015; 7.8B Under Construction In Service Date 2014 1Q2015 2Q2015 3Q2015 4Q2015 2016/2017 NGL Pipeline & Services Mid-America NGL pipeline expansion Rocky Mountain…
  37. RBC Capital Markets MLP Conference – Enterprise Products Partners LP – slide 37
    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…
  38. RBC Capital Markets MLP Conference – Enterprise Products Partners LP – slide 38
    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…
  39. RBC Capital Markets MLP Conference – Enterprise Products Partners LP – slide 39
    NONGAAP RECONCILIATIONS ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
  40. RBC Capital Markets MLP Conference – Enterprise Products Partners LP – slide 40
    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…
  41. RBC Capital Markets MLP Conference – Enterprise Products Partners LP – slide 41
    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…
  42. RBC Capital Markets MLP Conference – Enterprise Products Partners LP – slide 42
    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…
  43. RBC Capital Markets MLP Conference – Enterprise Products Partners LP – slide 43
    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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