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UBS MLP One On One Conference – Enterprise Products Partners LP

Enterprise Products Partners LP · Jan 12, 2016 · 46 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. UBS MLP One On One Conference – Enterprise Products Partners LP – slide 1
    ENTERPRISE PRODUCTS PARTNERS L.P. UBS MLP ONEONONE CONFERENCE January 1213, 2016 Randy Fowler President ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
  2. UBS MLP One On One Conference – Enterprise Products Partners LP – slide 2
    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…
  3. UBS MLP One On One Conference – Enterprise Products Partners LP – slide 3
    SIGNIFICANT INSIDER OWNERSHIP / DEEP BENCH Supportive GP with significant EPCO & ownership Affiliates EPCO and affiliates own 34% of LP units 100% Facilitated elimination of IDRs in a nontaxable transaction through General…
  4. UBS MLP One On One Conference – Enterprise Products Partners LP – slide 4
    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…
  5. UBS MLP One On One Conference – Enterprise Products Partners LP – slide 5
    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…
  6. UBS MLP One On One Conference – Enterprise Products Partners LP – slide 6
    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…
  7. UBS MLP One On One Conference – Enterprise Products Partners LP – slide 7
    FUNDAMENTALS UPDATE ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
  8. UBS MLP One On One Conference – Enterprise Products Partners LP – slide 8
    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…
  9. UBS MLP One On One Conference – Enterprise Products Partners LP – slide 9
    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…
  10. UBS MLP One On One Conference – Enterprise Products Partners LP – slide 10
    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…
  11. UBS MLP One On One Conference – Enterprise Products Partners LP – slide 11
    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…
  12. UBS MLP One On One Conference – Enterprise Products Partners LP – slide 12
    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…
  13. UBS MLP One On One Conference – Enterprise Products Partners LP – slide 13
    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…
  14. UBS MLP One On One Conference – Enterprise Products Partners LP – slide 14
    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…
  15. UBS MLP One On One Conference – Enterprise Products Partners LP – slide 15
    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…
  16. UBS MLP One On One Conference – Enterprise Products Partners LP – slide 16
    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…
  17. UBS MLP One On One Conference – Enterprise Products Partners LP – slide 17
    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…
  18. UBS MLP One On One Conference – Enterprise Products Partners LP – slide 18
    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…
  19. UBS MLP One On One Conference – Enterprise Products Partners LP – slide 19
    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…
  20. UBS MLP One On One Conference – Enterprise Products Partners LP – slide 20
    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…
  21. UBS MLP One On One Conference – Enterprise Products Partners LP – slide 21
    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…
  22. UBS MLP One On One Conference – Enterprise Products Partners LP – slide 22
    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%…
  23. UBS MLP One On One Conference – Enterprise Products Partners LP – slide 23
    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 3Q 2016…
  24. UBS MLP One On One Conference – Enterprise Products Partners LP – slide 24
    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…
  25. UBS MLP One On One Conference – Enterprise Products Partners LP – slide 25
    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…
  26. UBS MLP One On One Conference – Enterprise Products Partners LP – slide 26
    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…
  27. UBS MLP One On One Conference – Enterprise Products Partners LP – slide 27
    APPENDIX ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
  28. UBS MLP One On One Conference – Enterprise Products Partners LP – slide 28
    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…
  29. UBS MLP One On One Conference – Enterprise Products Partners LP – slide 29
    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…
  30. UBS MLP One On One Conference – Enterprise Products Partners LP – slide 30
    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.…
  31. UBS MLP One On One Conference – Enterprise Products Partners LP – slide 31
    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 &…
  32. UBS MLP One On One Conference – Enterprise Products Partners LP – slide 32
    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…
  33. UBS MLP One On One Conference – Enterprise Products Partners LP – slide 33
    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…
  34. UBS MLP One On One Conference – Enterprise Products Partners LP – slide 34
    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…
  35. UBS MLP One On One Conference – Enterprise Products Partners LP – slide 35
    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…
  36. UBS MLP One On One Conference – Enterprise Products Partners LP – slide 36
    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%…
  37. UBS MLP One On One Conference – Enterprise Products Partners LP – slide 37
    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)…
  38. UBS MLP One On One Conference – Enterprise Products Partners LP – slide 38
    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…
  39. UBS MLP One On One Conference – Enterprise Products Partners LP – slide 39
    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…
  40. UBS MLP One On One Conference – Enterprise Products Partners LP – slide 40
    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…
  41. UBS MLP One On One Conference – Enterprise Products Partners LP – slide 41
    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…
  42. UBS MLP One On One Conference – Enterprise Products Partners LP – slide 42
    NONGAAP RECONCILIATIONS ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
  43. UBS MLP One On One Conference – Enterprise Products Partners LP – slide 43
    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…
  44. UBS MLP One On One Conference – Enterprise Products Partners LP – slide 44
    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…
  45. UBS MLP One On One Conference – Enterprise Products Partners LP – slide 45
    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…
  46. UBS MLP One On One Conference – Enterprise Products Partners LP – slide 46
    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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