ENTERPRISE PRODUCTS PARTNERS L.P. GLOBAL MIZUHO INVESTOR CONFERENCE November 14, 2016 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 32.6% L.P. a nontaxable…
SUCCESSFUL EXECUTION THROUGHOUT CYCLES Increased Cash Distributions for 49 Consecutive Quarters MLP Equities: Higher Correlation to Crude for Last 26 Months EPD Has Delivered Consistent Results Throughout Cycles 400% 1,600 160 Total…
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…
DIVERSIFIED SOURCES OF CASH FLOW BACKED BY FEEBASED BUSINESS MODEL 5.2 Billion Total Gross Operating Margin Natural Gas Gathering & Processing for 12 months ended September 30, 2016 Contribution to Total Gross Operating Margin Total…
COMPOSITE OF TOP 200 CUSTOMERS (1) Revenue from Top 200 Customers by Rating Top 200 customers account for 95.7% of EPD's 2015 revenue Not Rated 75.3% of revenue from our 9.9% AA / Aa3 Top 200 customers is from < B / B3 LC…
SUPPLY / DEMAND FUNDAMENTALS ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
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 50 140% 70 45 Shale Gas Production Now Totals Far East / Asia Naphtha 50% of Total…
THE SUPPLY TREADMILL: 1/3 OF GLOBAL OIL PRODUCTION 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 5.0 5.0…
THE WISDOM OF THE MARKETSOR CANT THEY GET ANYTHING RIGHT 160 June 2008 The Reality: Forward Markets 140 Are Not Paid to Predict Prices 120 Jul 2013 100 80 Oct 2014 Feb 2010 June 2015 60 Jun 2016 March 2015 40 Dec…
GLOBAL OIL INVENTORIES REMAIN VERY HIGH BY HISTORICAL STANDARDS Balancing Act OECD Total Oil Stocks OECD Total Oil Stocks Crudeoil supply is predicted to fall in line with demand this year. million barrels a day average…
THE SHALE REVOLUTION Rapidly Growing Production and Falling Prices Bcf/d NYMEX Natural Gas Price vs. Shale Production /MMBtu 50 16.0 45 14.0 40 Natural Gas Price 12.0 35 30 10.0 25 8.0 20 Shale Gas 6.0 15 4.0 10 5 2.0…
IS IT ABOUT MONEY OR MARKET SHARE Arab Gulf cash flows assuming reducing production by 1 MMBbls/d increase prices by 10/Barrel; Saudi Arabia, Kuwait and UAE currently produce 17 MMBPD The economics are even more compelling for…
U.S. OFFERS WORLD CLASS RESOURCES AT COMPETITIVE PRICES /Bbl Crude Breakeven Price 70 Production Increases 60 50 Production Stable 40 30 20 10 0 Average Highgrade Source: EPD Fundamentals Estimate Note: Assumes gas…
U.S. HAS PLENTIFUL NATURAL GAS BELOW 3.50 /MMBtu Natural Gas Breakeven Price 5 Production Increases 4 3 Production Stable 2 1 0 0 Source: EPD Fundamentals Estimate Average Highgrade Note: Assumes oil price of…
NATURAL GAS: SUPPLIES VS. U.S. GULF COASTCENTRIC DEMAND & FORECASTED FLOW PATTERNS 2014 to 2020 Change in NG Flow Bakken Canada RC & E.G. +0.51.0 +1.5 +12 Midwest Electric Gen Rerouted Midwest +2 Bcf/d Supply: 1 Bcf/d…
U.S. GULF COAST LNG PROJECTS Natural Gas Loading Est Completion Company Owners Location Capacity (MMcf/d) Date Sabine Pass LNG Cheniere Energy 3,500 Sabine Pass, LA 20162019 Freeport LNG Freeport LNG 2,000 Freeport, TX 20182019…
OIL PRODUCTION FORECAST U.S. Oil & Condensate Forecast October 2016 11 11 10 10 9 9 MMBPD 8 8 60+ 5055 Current Forward Strip 7 7 6 6 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Source: EPD Fundamentals ALL RIGHTS…
NGL PRODUCTION FORECAST U.S. Available NGL Supply Forecast October 2016 5.5 5.5 5.0 5.0 4.5 4.5 4.0 4.0 MMBPD 3.5 3.5 3.0 3.0 60+ 5055 Current Forward Strip 2.5 2.5 2.0 2.0 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20…
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 Supply Range Ethane Supply Existing Demand Conversions &…
U.S. LPGBALANCES WILL BE DRIVEN BY EXPORTS MBPD Supply Range 3,000 1.2 MMBPD LPG 1.2 MMBPD LPG Export Capacity 2,500 2,000 1,500 1,000 500 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 LPG Demand Current…
U.S. THE LARGEST EXPORTER OF LPG LPG Exports by Destination through 3Q 2016 2016 EPD LPG Exports by Destination Region: 112.2 MMBbls % of Cargos Loaded EPD% of Destination Market North America / Caribbean 21% 40% Central & South…
LPG LOADINGS Committed Loadings vs. Capacity 1,150 Cargos Scheduled from 20152020 16 Average Commitments per Year Avg Monthly Loadings Per Year (As of Aug2015) Operational Capacity 14 12 10 MMBbls 8 6 MONT 4…
NGLs: U.S. GULF COAST IS SHORT NGLs; PRODUCERS NEED PRICE SIGNAL TO PRODUCE / TRANSPORT 20162020 (MBPD) OTHER ROCKIES 131 769 759 APPALACHIAN +100 MIDCONTINENT 426 PERMIAN 900 Total Demand Current Supply 1,111…
ETHANE: APPALACHIA ALONE CANNOT MEET U.S. DEMAND 20162020 (MBPD) +50 Utopia Export Rejection Production Demand* All Regions West of MTBV Current 285 178 178 2020 152 403 403 Rejection Production Current 297 1,099 105 2020 0…
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 Much of new…
PROJECT UPDATES ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
VISIBILITY TO GROWTH: 10.2B OF MAJOR CAPITAL PROJECTS BY INSERVICE DATE 4.6 Billion 5.6 Billion 5.2 5.0 Petchem NGL PDH facility 31% 36% Crude oil / refined products infrastructure MidlandtoSealy 4.0 NGL & propylene LPG…
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…
EXPANDING FOOTPRINT IN PERMIAN BASIN Bringing Gas Processing Capacity to 800 MMcf/d South Eddy cryogenic gas processing facility and related pipelines 200 MMcf/d natural gas; 25 MBPD NGLs Constructed 90 miles of new gathering…
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 Decision to expand…
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…
ETHANE EXPORT FACILITY Largest of Its Kind Average Annual Contracted Volumes Shipbuilders Response to Increased Ethane Demand 200 Estimated Ethane / Ethylene Vessel Capacity (1) 12 150 49 10 45 Capacity (MMBbls) MBPD…
LONG TERM PROPYLENE MARKET STRONGER THAN EXPECTED PDH competition is reduced with 6 projects cancelled or indefinitely delayed Propylene supplies have declined with ethylene cracker utilizing lightend feedstock International…
PDH FACILITY Produce up to 1.65 billion lbs/year (25 MBPD) of PGP Consume 30 MBPD of propane 100% of capacity subscribed under feebased contracts with investment grade companies averaging 15 years No volume ramp after…
PROJECTS UNDER DEVELOPMENT ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
PROJECT UNDER DEVELOPMENT: isoButane DeHydro (iBDH) EPD is advantaged with full integration for Isobutylene production EPD Assets Crude MTBE YGrade Nbutane Isobutane Isobutylene isoButane Crude Gas Plants Fractionation…
PROJECT UNDER DEVELOPMENT: Potential Northeast Takeaway Project 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…
PROJECT UNDER DEVELOPMENT: 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…
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 4.5x Debt / Adjusted EBITDA 4.3x 5.0 in Billions 4.2x 4.2 4.2x 3.9 4.1x 4.0…
STRENGTHENING DEBT PORTFOLIO Extending Maturities Without Increasing Costs 19.6 Billion Notes Issued 86.3 % Fixed Rate Debt 2009 April 2016 20 8.0% 18 17.7 17.6 17.2 17.3 7.0% 9.7% 16 Average Maturity Years 16.2 16.2…
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%…
APPENDIX ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
VISIBILITY TO GROWTH: MAJOR CAPITAL PROJECTS 4.6B InService 2015/9M 2016; 5.6B Under Construction In Service Date 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 20172018 NGL Pipeline & Services ATEX Express ethane pipeline 25 MBPD expansion…
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
TOTAL GROSS OPERATING MARGIN We evaluate segment performance based on our financial measure of gross operating margin. Gross operating margin is an important performance measure of the core profitability of our operations and forms the…
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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