ENTERPRISE PRODUCTS PARTNERS L.P. MLPA INVESTOR CONFERENCE June 3, 2016 Bryan Bulawa SVP and CFO 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 Supportive GP with significant EPCO & ownership Affiliates EPCO and affiliates own 33% of 100% LP units General Public Partner Facilitated elimination of IDRs in 32.9% L.P. a nontaxable…
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…
SUCCESSFUL EXECUTION THROUGHOUT CYCLES Increased Cash Distributions for 47 Consecutive Quarters MLP Equities: Higher Correlation to Crude for Last 12 Months EPD Has Delivered Consistent Results Throughout Cycles 400% 1,600 160 Gross…
DIVERSIFIED SOURCES OF CASH FLOW BACKED BY FEEBASED BUSINESS MODEL 5.3 Billion Gross Operating Margin Natural Gas Gathering & Processing for 12 months ended March 31, 2016 Contribution to Gross Operating Margin Total GOM: 3,871…
CREDIT RISK TOP 200 CUSTOMERS Revenue from Top 200 Customers by Rating(1) Top 200 customers account for 95.7% of EPD's 2015 revenue Not Rated 74.0% of revenue from our < B / B3 9.9% AA / Aa3 Top 200 customers is from 3.2% LC…
SUPPLY / DEMAND FUNDAMENTALS ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
THE SUPPLY TREADMILL: 1/3 OF GLOBAL SUPPLIES (30 MMBPD) MUST BE REPLACED BY 2020AT THESE PRICES Oil and Gas Industry Needs to Replace Declines and Satisfy Demand Growth MMBPD of Oil 2016 2017 2018 2019 2020 Declines of Existing…
FORECASTS FOR 2017 FORWARD ARE MUCH HIGHER THAN NYMEX Currently, 2016 WTI market price is above forecasters expectations Majority banks / consultants expect WTI prices at 60+ next 3 years Very few are forecasting long term prices…
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 &…
THE CHEMICALS INDUSTRY IS MAKING LARGE INVESTMENTS BASED ON U.S. SHALES American Chemistry Council (ACC) analysis shows 164 billion in capital spending could lead to 105 billion per year in new chemical output. Support 738,000…
ETHANE: APPALACHIA ALONE CANNOT MEET U.S. DEMAND 20162020 (MBPD) +50 Utopia Export Rejection Production Demand* All Regions West of MTBV Current 309 168 168 2020 195 360 360 Rejection Production Current 421 995 +70 2020 0…
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 60 131 104 116 81 30…
U.S. LPGBALANCES WILL BE DRIVEN BY EXPORTS MBPD 1.2 MMBPD LPG 1.2 MMBPD LPG Supply Range 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 LPG…
U.S. THE LARGEST EXPORTER OF LPG LPG Exports by Destination through 1Q2016 2016 EPD LPG Exports by Destination Region: 41.0 MMBbls % of Cargos Loaded EPD% of Destination Market North America / Caribbean 25% 51% Central & South…
PROJECT UPDATES ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
VISIBILITY TO GROWTH: 6.1B OF MAJOR CAPITAL PROJECTS BY INSERVICE DATE 3.4 Billion 6.1 Billion 4.5 4.3 4.0 PDH facility Crude oil / refined products infrastructure MidlandtoSealy 3.5 NGL & propylene pipeline expansions…
ETHANE EXPORT FACILITY Largest of Its Kind New ethane export facility with a HOUSTON SHIP combined operating rate of 200 CHANNEL MBPD across two docks MORGANS 18 miles of 24 pipeline MTBV to POINT Morgans Point 90% of…
EXPANDING FOOTPRINT IN PERMIAN BASIN South Eddy cryogenic gas processing facility and related pipelines 200 MMcf/d natural gas; 25 MBPD NGLs Constructed 90 miles of new gathering pipelines; 71mile pipeline extension of MAPL…
PROPANE DEHYDROGENATION (PDH) FACILITY Produce up to 1.65 billion lbs/year (25 MBPD) of PGP Consume 35 MBPD of propane 100% of capacity subscribed under feebased contracts with investment grade companies averaging 15 years No…
LONG TERM PROPYLENE MARKET STRONGER THAN EXPECTED PDH competition is reduced with 6 projects cancelled or indefinitely delayed only Dow is building a facility in addition to Enterprise PDH projects are leading to unexpected…
MIDLAND TO HOUSTON CRUDE OIL PIPELINE From the Permian Supply Hub to Multiple Markets 400mile, 24 pipeline from Midland O k l a h o m a Cushing to Sealy, Texas 60% of initial capacity of 300 MBPD contracted Capacity expandable…
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…
FINANCIAL UPDATE ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
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 4.2x(2) 3.9 4.1x…
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%…
ENTERPRISE PRODUCTS PARTNERS L.P. MLPA INVESTOR CONFERENCE June 3, 2016 Bryan Bulawa SVP and CFO ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
APPENDIX ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
VISIBILITY TO GROWTH: MAJOR CAPITAL PROJECTS 3.4B InService 2015/1H16; 6.1B 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)…
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…
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 Director, Investor Relations (713) 3813920 jmricherteprod.com ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS…
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