ENTERPRISE PRODUCTS PARTNERS L.P. GOLDMAN SACHS ENERGY CONFERENCE January 67, 2016 Bryan Bulawa Chief Financial Officer ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
KEY INVESTMENT CONSIDERATIONS 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 international…
SIGNIFICANT INSIDER OWNERSHIP / DEEP BENCH Supportive GP with significant ownership EPCO and affiliates own 34% of LP units EPCO & Affiliates Facilitated elimination of IDRs in a 100% nontaxable transaction through waiver of…
SUCCESSFUL EXECUTION THROUGHOUT CYCLES Increased Cash Distributions for 46 Consecutive Quarters MLP Equities: Higher Correlation to Crude for Last 12 Months EPD Has Delivered Consistent Results Throughout Cycles 400% 1,600 160 1,400…
COMPOSITE OF TOP 30 CUSTOMERS (1) Revenue from Top 30 Customers by Rating Top 30 customers account for 70% of EPD's 2014 LC revenue 3% < BB+ / Ba1 86% of revenue from our 14% AA / Aa3 27% Top 30 customers is from customers…
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…
FUNDAMENTALS UPDATE ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
THE SUPPLY TREADMILL Industry needs to replace declines and satisfy demand growth MMBPD of Oil 2016 2017 2018 2019 2020 Declines of Existing Fields 5.0 5.0 5.0 5.0 5.0 Annual Demand Growth 1.4 1.4 1.4 1.4 1.4 Annual Additions to…
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…
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…
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…
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…
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…
VISIBILITY TO GROWTH: 6B OF MAJOR CAPITAL PROJECTS BY INSERVICE DATE 2.5 2.7 Billion 6.0 Billion PDH commissioning 2.3 Crude oil / refined MidlandtoSealy products infrastructure NGL & propylene LPG export expansion Aegis ethane…
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…
ETHANE TAKEAWAY SOLUTIONS PROVIDES ACCESS TO GULF COAST MARKETS ATEX C2 Contracted Volumes ATEX Pipeline 150 120 Current capacity of 125 MBPD MBPD 90 expandable to 265 MBPD; would require 60 104 116 131 additional…
MIDLAND TO HOUSTON CRUDE OIL PIPELINE From the Permian Supply Hub to Multiple Markets 400mile, 24 pipeline from Midland to Oklahoma Sealy, Texas Cushing 60% of initial capacity of 300 MBPD is contracted Capacity expandable to…
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…
ENTERPRISE EXPORT CAPACITY: LINKING U.S. SUPPLIES TO GLOBAL DEMAND Beaumont West Beaumont East Mont Enterprise Belvieu HSC Morgans Point Odfjell ECHO Ship Barge Under Product Docks Docks Construction Texas City…
LPG LOADINGS Historical and Committed Loadings vs. Capacity 1,365 Cargos Scheduled from 20162020 16 Avg Monthly Loadings Per Year (As of Aug2015) Operational Capacity 14 12 10 MMBbls 8 6 4 2 Total Capacity: 16.0…
U.S. BECOMES LARGEST EXPORTER OF LPG LPG Exports from EPD Facilities as of November 2015 YTD 2015 LPG Exports from EPD Facilities by Destination Region: 96.4 MMBbls % of Cargoes Loaded % of Destination Market North America 22% 40%…
ETHANE EXPORT FACILITY Largest of Its Kind New ethane export facility with a combined operating rate of 200 MBPD across two docks 18 miles of 24 P/L MTBV to Morgans Point 90% of capacity is under longterm contracts Vessels:…
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…
POTENTIAL TAKEAWAY FOR NORTHEAST NGLs Centennial Pipeline 800mile, 26/24 northbound refined products pipeline from Beaumont, TX to Bourbon, IL; idle since 2011 2 MMBbls of refined products storage at Creal Springs Owned 50/50…
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…
APPENDIX ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
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 9,172 Forecast Region…
U.S. NGL SUPPLY POTENTIAL ASSUMING SUFFICIENT MARKETS (MBPD) 135 123 ROCKIES OTHER 727 837 717 909 APPALACHIAN MID-CONTINENT 445 450 PERMIAN Current 3,993 Potential NGL Components Current 2020 863 Year 2020…
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.…
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 Rerouted Midwest +2 Bcf/d Supply: 1 Bcf/d Marcellus &…
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…
VISIBILITY TO GROWTH: MAJOR CAPITAL PROJECTS 2.7B InService 2015; 6.0B Under Construction In Service Date 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 2017 NGL Pipeline & Services LPG export facility on Gulf Coast (up to 16 MMBbls/mo) Done…
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%…
NO GP IDRS AND RETAINED DCF SUPPORT LONGTERM DISTRIBUTION GROWTH Indicative Amount of EPD Growth Capital Required to Support 0.08/unit Distribution Growth based No GP IDRs significantly (1) 4,000 on Return on Capital (ROC)…
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% DCF Retained DCF Common Units USD in millions, unless noted /unit…
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…
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…
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…
NONGAAP RECONCILIATIONS ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
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…
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…
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…
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…
Loading...
