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BARCLAYS MLP CORPORATE ACCESS DAY – Enterprise Products Partners LP

Enterprise Products Partners LP · Mar 1, 2016 · 40 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. BARCLAYS MLP CORPORATE ACCESS DAY – Enterprise Products Partners LP – slide 1
    ENTERPRISE PRODUCTS PARTNERS L.P. BARCLAYS MLP CORPORATE ACCESS DAY March 12, 2016 Randy Fowler President ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
  2. BARCLAYS MLP CORPORATE ACCESS DAY – 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. BARCLAYS MLP CORPORATE ACCESS DAY – 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. BARCLAYS MLP CORPORATE ACCESS DAY – 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 Gross…
  5. BARCLAYS MLP CORPORATE ACCESS DAY – Enterprise Products Partners LP – slide 5
    COMPOSITE OF TOP 200 CUSTOMERS Revenue from Top 200 Customers by Rating(1) Top 200 customers account for 95.7% of EPD's 2015 revenue < B / B3 Not Rated 9.9% 2.0% AA / Aa3 73.8% of revenue from our LC 19.2% Top 200 customers is…
  6. BARCLAYS MLP CORPORATE ACCESS DAY – Enterprise Products Partners LP – slide 6
    EPD: NATURAL GAS, NGLS, CRUDE OIL, PETROCHEMICALS AND REFINED PRODUCTS Asset Overview Connectivity Pipelines: 49,000 miles of natural gas, NGL, crude oil, petrochemicals and Fully integrated midstream energy company refined…
  7. BARCLAYS MLP CORPORATE ACCESS DAY – Enterprise Products Partners LP – slide 7
    FUNDAMENTALS UPDATE ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
  8. BARCLAYS MLP CORPORATE ACCESS DAY – Enterprise Products Partners LP – slide 8
    2016 MACRO ENERGY OUTLOOK Supplyside: entering 2nd year of a weak commodity price cycle E&P companies protecting balance sheets and liquidity; minimizing drilling; generally, focusing on short cycle / immediate cash flow capital…
  9. BARCLAYS MLP CORPORATE ACCESS DAY – Enterprise Products Partners LP – slide 9
    THE SUPPLY TREADMILL: 1/3 OF GLOBAL PRODUCTION (30 MMBBLS) MUST BE REPLACED BY 2020 Oil and Gas Industry Needs to Replace Declines and Satisfy Demand Growth MMBPD of Oil 2016 2017 2018 2019 2020 Declines of Existing Fields 5.0…
  10. BARCLAYS MLP CORPORATE ACCESS DAY – Enterprise Products Partners LP – slide 10
    INDICATIVE ECONOMICS FOR KEY OIL PLAYS Current Activity Assumes HighGrade Drilling 70 40 captures only highgrade Average Highgrade 50 captures virtually everything 60 Pricing Assumes 20% BFIT ROI 50 40 /Bbl 30 20…
  11. BARCLAYS MLP CORPORATE ACCESS DAY – Enterprise Products Partners LP – slide 11
    INDICATIVE ECONOMICS FOR KEY GAS PLAYS Current Activity Assumes HighGrade Drilling 5.00 Average Highgrade 4.50 4.00 Pricing Assumes 20% BFIT ROI 3.50 3.00 /MMBtu 2.50 2.00 1.50 1.00 0.50 0.00 Note: assumes oil…
  12. BARCLAYS MLP CORPORATE ACCESS DAY – Enterprise Products Partners LP – slide 12
    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 50% of Total Gas Production 60 Far East / Asia…
  13. BARCLAYS MLP CORPORATE ACCESS DAY – Enterprise Products Partners LP – slide 13
    ETHANE: MEETING USGC DEMAND REQUIRES SUPPLIES FROM ALL REGIONS 20162020 (MBPD) ROCKIES 158 200 C2 Rejected 145 200 +30 C2 Rejected APPALACHIAN MIDCONTINENT 130 PERMIAN 338 200 Incremental C2 Rejected Demand…
  14. BARCLAYS MLP CORPORATE ACCESS DAY – Enterprise Products Partners LP – slide 14
    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…
  15. BARCLAYS MLP CORPORATE ACCESS DAY – Enterprise Products Partners LP – slide 15
    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…
  16. BARCLAYS MLP CORPORATE ACCESS DAY – Enterprise Products Partners LP – slide 16
    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…
  17. BARCLAYS MLP CORPORATE ACCESS DAY – Enterprise Products Partners LP – slide 17
    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 &…
  18. BARCLAYS MLP CORPORATE ACCESS DAY – Enterprise Products Partners LP – slide 18
    REGIONAL NGL HUBS: GULF COAST VS. EAST COAST NO COMPARISON USGC East Coast SUPPLY Diversity 7 unique basins linked 1 basin for all supply 2016 4.1 MMBPD Estimated 0.8 MMBPD STORAGE Capacity 300 MMBbls (salt dome) 11 MMBbls…
  19. BARCLAYS MLP CORPORATE ACCESS DAY – Enterprise Products Partners LP – slide 19
    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 20172018 NGL Pipeline & Services LPG export facility on Gulf Coast (up to 16 MMBbls/mo)…
  20. BARCLAYS MLP CORPORATE ACCESS DAY – Enterprise Products Partners LP – slide 20
    VISIBILITY TO GROWTH: 6B OF MAJOR CAPITAL PROJECTS BY INSERVICE DATE 3.5 2.7 Billion 6.0 Billion 3.3 PDH facility Crude oil / refined 3.0 products infrastructure MidlandtoSealy NGL & propylene 2.5 pipeline expansions Eagle…
  21. BARCLAYS MLP CORPORATE ACCESS DAY – Enterprise Products Partners LP – slide 21
    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…
  22. BARCLAYS MLP CORPORATE ACCESS DAY – Enterprise Products Partners LP – slide 22
    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…
  23. BARCLAYS MLP CORPORATE ACCESS DAY – Enterprise Products Partners LP – slide 23
    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 under longterm…
  24. BARCLAYS MLP CORPORATE ACCESS DAY – Enterprise Products Partners LP – slide 24
    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…
  25. BARCLAYS MLP CORPORATE ACCESS DAY – Enterprise Products Partners LP – slide 25
    CRUDE OIL EXPORT LOADING Enterprise Hydrocarbon Terminal (EHT) loaded its first cargo of U.S. crude oil for export since the lifting of the 40year ban 600,000 barrels loaded January 2016 Light crude oil, API gravity 4547…
  26. BARCLAYS MLP CORPORATE ACCESS DAY – Enterprise Products Partners LP – slide 26
    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…
  27. BARCLAYS MLP CORPORATE ACCESS DAY – Enterprise Products Partners LP – slide 27
    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…
  28. BARCLAYS MLP CORPORATE ACCESS DAY – Enterprise Products Partners LP – slide 28
    U.S. BECOMES LARGEST EXPORTER OF LPG LPG Exports from EPD Facilities Through 2015 2015 LPG Exports from EPD Facilities by Destination Region: 107.3 MMBbls % of Cargoes Loaded % of Destination Market North America / Caribbean 23% 37%…
  29. BARCLAYS MLP CORPORATE ACCESS DAY – Enterprise Products Partners LP – slide 29
    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…
  30. BARCLAYS MLP CORPORATE ACCESS DAY – Enterprise Products Partners LP – slide 30
    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…
  31. BARCLAYS MLP CORPORATE ACCESS DAY – Enterprise Products Partners LP – slide 31
    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…
  32. BARCLAYS MLP CORPORATE ACCESS DAY – Enterprise Products Partners LP – slide 32
    SOLID OPERATING PERFORMANCE 5.5 Liquids Pipeline Volumes 5.3 150 Equity NGL Production 5.5 5.0 & Feebased Processing 4.9 5.0 130 5.0 Equity NGL Production Feebased Processing 4.7 4.8 126 133 Million BPD 4.5 4.3 110…
  33. BARCLAYS MLP CORPORATE ACCESS DAY – Enterprise Products Partners LP – slide 33
    STRONG FINANCIAL RESULTS (1) 6.0 Gross Operating Margin 6.0 Distributable Cash Flow (DCF) 5.6 5.3 5.3 5.0 4.8 5.0 4.4 4.1 4.1 3.9 3.8 3.8 Billions Billions 4.0 4.0 3.9 4.0 3.7 3.0 3.0 3.0 2.8 2.0 2.0 1.0 1.0 2011…
  34. BARCLAYS MLP CORPORATE ACCESS DAY – Enterprise Products Partners LP – slide 34
    STRENGTHENING DEBT PORTFOLIO Extending Maturities Without Increasing Costs 18.4 Billion Notes Issued 91.8% Fixed Rate Debt 15 20092015 14.1 14.1 7.5% 13 13.3 Average Maturity Years 10.3% 12.4 Cost of Debt 10.6%…
  35. BARCLAYS MLP CORPORATE ACCESS DAY – Enterprise Products Partners LP – slide 35
    HISTORY OF FINANCIAL DISCIPLINE WHILE EXECUTING GROWTH STRATEGY Total Growth Capex & Debt Leverage 8.0 7.8 4.6 4.7x 7.0 6.2 4.5x 6.0 2.5 Debt / Adjusted EBITDA 4.3x 5.0 in Billions 4.2x 4.2 4.2x Up to 4.1x 3.9 3.8…
  36. BARCLAYS MLP CORPORATE ACCESS DAY – Enterprise Products Partners LP – slide 36
    NONGAAP RECONCILIATIONS ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
  37. BARCLAYS MLP CORPORATE ACCESS DAY – Enterprise Products Partners LP – slide 37
    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…
  38. BARCLAYS MLP CORPORATE ACCESS DAY – Enterprise Products Partners LP – slide 38
    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…
  39. BARCLAYS MLP CORPORATE ACCESS DAY – Enterprise Products Partners LP – slide 39
    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…
  40. BARCLAYS MLP CORPORATE ACCESS DAY – Enterprise Products Partners LP – slide 40
    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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