ENTERPRISE PRODUCTS PARTNERS L.P. SCOTIA HOWARD WEIL ENERGY CONFERENCE March 21, 2016 Randy Fowler President 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…
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…
CREDIT COMPOSITION OF TOP 200 CUSTOMERS GROWTH HAS REDUCED G&P CONTRIBUTION (1) Revenue from Top 200 Customers by Rating Top 200 customers account for 96% of EPD's 2015 revenue < B / B3 Not Rated 9.9% AA / Aa3 2.0% LC 19.2%…
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…
CRUDE OIL BREAK EVEN PRICES REQUIRE HIGHGRADE DRILLING Current Activity Assumes HighGrade Drilling 70 40 captures only highgrade Average Highgrade 50 captures virtually everything 60 Pricing Assumes 20% BFIT ROI 50 40…
PLENTIFUL NATURAL GAS AVAILABLE BELOW 5; BELOW 4; BELOW 3.50 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…
U.S. ETHANE SUPPLY / DEMAND OUTLOOK Demand Increases by 800 MBPD MBPD 3,000 Supply Range 2,500 2,000 1,500 1,000 500 2015 2016 2017 2018 2019 2020+ Ethane Supply Supply Range Existing Demand Conversions &…
ETHANE: MEETING U.S. GULF COAST DEMAND WILL REQUIRE SUPPLIES FROM ALL REGIONS 20162020 (MBPD) ROCKIES 158 200 C2 Rejected 145 200 +30 C2 Rejected APPALACHIAN MIDCONTINENT 130 PERMIAN 338 200 Incremental C2…
U.S. LPG BALANCES WILL BE DRIVEN BY EXPORTS MBPD Supply Range 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 Supply Range Suply Range LPG Demand…
ENTERPRISE EXPORT ACTIVITY Significant Volumes of a Wide Range of Products Average Daily Volume Through Enterprise Facilities / Docks 2015 Volume 1Q16 Volume* Product (MBPD) (MBPD) Comments LPG 299 467 Processed Condensate 67 62…
VISIBILITY TO GROWTH: 6.6B OF MAJOR CAPITAL PROJECTS BY INSERVICE DATE 4.5 2.9 Billion 6.6 Billion 4.1 4.0 PDH facility Crude oil / refined products infrastructure MidlandtoSealy 3.5 NGL & propylene pipeline expansions Eagle…
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…
EXPANSION OF PERMIAN ASSET FOOTPRINT Existing Assets 2 gas gathering systems: 1,500 miles of pipe 3 gas processing plants: 350 MMcf/d capacity 75 MBPD of NGL fractionation capacity at Hobbs 2.1 MMBbls of NGL cavern storage 950…
MIDLAND TO HOUSTON CRUDE OIL PIPELINE From the Permian Supply Hub to Multiple Markets 400mile, 24 pipeline from Midland to O k l a h o m a Sealy, Texas Cushing 60% of initial capacity of 300 MBPD contracted Capacity expandable…
CRUDE DISTRIBUTION SYSTEM Interconnectivity: The Enterprise Business Model Seaway JV EHSC System Chambers South TX Crude System Moore Rd Jct EDS Header Third Party Pipeline Dashed lines indicate under construction EHSC 24…
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%…
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…
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…
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…
ETHYLENE EXPORT: CULTIVATING DEMAND Enterprises export position for LPG, Ethane and Propylene can be broadened to include Ethylene Asian demand for ethylene continues to grow beyond local production; Asia is looking to diversify…
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…
INVESTOR TAKEAWAYS EPDS MLP MODEL WORKS BBB+/Baa1 credit rating provides financial strength / access to capital No GP IDRs provides financial flexibility and lower cost of capital EPDs current 10year WACC (50% 10year debt / 50%…
VISIBILITY TO GROWTH: MAJOR CAPITAL PROJECTS 2.9B InService 2015; 6.6B 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 16MMBbls/mo)…
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…
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