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UBS MLP 1X1 Conference – Enterprise Products Partners LP

Enterprise Products Partners LP · Jan 10, 2017 · 54 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 1X1 Conference – Enterprise Products Partners LP – slide 1
    ENTERPRISE PRODUCTS PARTNERS L.P. UBS MLP 1X1 CONFERENCE January 1011, 2017 ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
  2. UBS MLP 1X1 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 1X1 Conference – Enterprise Products Partners LP – slide 3
    SIGNIFICANT INSIDER OWNERSHIP Supportive GP with significant EPCO & ownership Affiliates EPCO and affiliates own 32% of 100% LP units General Public Partner Facilitated elimination of IDRs in 32.4% L.P. a nontaxable…
  4. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 4
    SUCCESSFUL EXECUTION THROUGHOUT CYCLES Increased Cash Distributions for 50 Consecutive Quarters MLP Equities: Higher Correlation to Crude for Last 26 Months EPD Has Delivered Consistent Results Throughout Cycles 400% 1,600 160 Total…
  5. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 5
    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…
  6. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 6
    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…
  7. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 7
    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…
  8. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 8
    SUPPLY / DEMAND FUNDAMENTALS ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
  9. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 9
    CURRENT MACRO ENERGY OUTLOOK SupplySide Entering 3rd year of low commodity prices Although with recent OPEC agreement, curve has broken through the 50 range E&P still living within cash flow; selective in capital allocation Capital…
  10. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 10
    CURRENT MACRO ENERGY OUTLOOK DemandSide Demandside pull dominates this part of the cycle U.S. petrochemical industry consumed a record 1.6 MMBPD of NGLs through 3Q 2016 U.S. began exporting ethane by water in 2016 Record U.S. LPG…
  11. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 11
    RIG COUNTS IN CRUDE OIL PLAYS 400 350 300 250 200 150 100 50 0 Permian Eagle Ford EagleFord Bakken Williston DJ Source: Baker Hughes ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 12
  12. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 12
    TECHNOLOGY DRIVES BETTER RETURNS HighGrade Crude Oil Breakeven Comparison /Bbl 2014 vs. 2016 60 50 40 30 20 10 0 2014 2016 Source: EPD Fundamentals Estimate Note: Assumes gas price of 2.75/MMBtu. Assumes 20% BFIT…
  13. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 13
    LOW GAS TO CRUDE SPREAD CONTINUING TO DRIVE U.S. NGL ADVANTAGE U.S. Ethane Crackers: Global Cost Advantage Margin Cents Indicative U.S. Ethylene Cracker 70 Per Pound Profit Margin by Feedstock Far East / Asia Naphtha 70 60 U.S.…
  14. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 14
    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…
  15. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 15
    PROGRESSION OF CRUDE OIL FORWARD CURVES 120 Forward Markets Are Not Jul 2013 Paid to Predict Prices 100 80 Feb 2010 Oct 2014 June 2015 60 Flat Now 40 March 2015 Feb 2016 20 Jan10 Mar11 May12…
  16. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 16
    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…
  17. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 17
    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…
  18. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 18
    IS IT ABOUT MONEY OR MARKET SHARE Arab Gulf cash flows assuming reducing production by 1 MMBbls/d increase prices by 5 and 10/Barrel; Saudi Arabia, Kuwait and UAE currently produce 17 MMBPD The economics are even more compelling for…
  19. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 19
    NATURAL GAS: U.S. GULF COASTCENTRIC DEMAND & FORECASTED FLOW PATTERNS Canada +23 Bcf/d 2015 to 2020 Change in NG Flow Bakken +0.51.0 1 Bcf/d Canada RC & E.G. +1.5 +1.02.0 Midwest Electric Gen +2 Bcf/d Demand Rockies…
  20. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 20
    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…
  21. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 21
    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…
  22. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 22
    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…
  23. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 23
    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 &…
  24. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 24
    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…
  25. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 25
    U.S. THE LARGEST EXPORTER OF LPG LPG Exports by Destination through December 2016 2016 EPD LPG Exports by Destination Region: 155.4 MMBbls % of Cargos Loaded EPD% of Destination Market North America / Caribbean 23% 58% Central & South…
  26. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 26
    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…
  27. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 27
    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…
  28. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 28
    ADDITIONAL ETHANE PRODUCTION NEEDS ACCESS TO GULF COAST MARKETS 20162020 (MBPD) +50 Utopia Export Rejection Production All Regions West of MTBV Current 217 178 2020 200 403 Rejection Production Current 233 1,090 APPALACHIA…
  29. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 29
    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…
  30. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 30
    PROJECT UPDATES ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
  31. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 31
    VISIBILITY TO GROWTH: 10.2B OF MAJOR CAPITAL PROJECTS BY INSERVICE DATE 4.9 Billion 5.3 Billion LPG export expansion PDH facility 3.0 Aegis ethane pipeline Butane recovery facility 2.7 Propylene pipeline expansion Permian…
  32. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 32
    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…
  33. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 33
    EXPANDING FOOTPRINT IN DELAWARE 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…
  34. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 34
    MIDLAND TO ECHO 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 to ECHO storage facility 60% of initial capacity of 300 MBPD contracted under…
  35. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 35
    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…
  36. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 36
    ETHANE EXPORT FACILITY Largest of Its Kind Average Annual Contracted Volumes Shipbuilders Response to Increased Ethane Demand 200 Estimated Ethane / Ethylene Vessel Capacity (1) 150 12 29 10 14 Capacity (MMBbls) MBPD…
  37. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 37
    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…
  38. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 38
    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…
  39. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 39
    PROJECTS UNDER DEVELOPMENT ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
  40. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 40
    PROJECT UNDER DEVELOPMENT: isoButane DeHydrogenation (iBDH) EPD Assets Motor Crude Gasoline YGrade Nbutane Isobutane Isobutylene Additives iBDH Crude Gas Plants Fractionation Isomerization Isobutylene High Purity…
  41. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 41
    PROJECT UNDER DEVELOPMENT: Potential Northeast NGL Product 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…
  42. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 42
    SOLID OPERATING PERFORMANCE 5.5 Liquids Pipeline Volumes 5.3 150 Equity NGL Production 5.5 5.2 5.0 & Feebased Processing 5.0 130 5.0 Equity NGL Production Feebased Processing 4.7 4.9 4.9 Million BPD 4.5 4.3 110 4.8…
  43. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 43
    MARINE TERMINAL / DOCK ACTIVITY (1,2) (1) Crude Oil & Condensate Petrochemical & Refined Products 750 400 381 691 355 481 96 600 557 97 504 300 270 366 285 MBPD MBPD 450 322 97 258 200 300 210 173 100 150 172 210…
  44. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 44
    STRONG FINANCIAL RESULTS (1) Total Gross Operating Margin (Total GOM) Distributable Cash Flow (DCF) 6.0 6.0 5.6 5.2 5.3 4.8 5.0 5.0 4.4 3.9 4.1 4.1 4.0 4.0 3.8 Billions Billions 3.9 4.0 3.0 3.7 3.0 3.0 3.1 2.0 2.0…
  45. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 45
    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…
  46. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 46
    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…
  47. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 47
    INVESTOR TAKEAWAYS EPDS MLP MODEL WORKS Simple organization structure only one equity security GP sponsor / management interests truly aligned with unitholders BBB+/Baa1 credit rating provides financial strength / access to…
  48. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 48
    MLPs PROVIDE COMPELLING VALUE COMPARED TO OTHER INCOME SECURITIES Median Current Yield 8.0% 7.27% 7.0% 6.0% EPD 5.99% 5.0% 4.51% 4.02% 4.0% 3.63% 3.0% 2.0% 1.0% 0.0% REIT (RMZ) Utility (UTY) Midstream C-Corp Midstream…
  49. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 49
    VISIBILITY TO GROWTH: MAJOR CAPITAL PROJECTS 4.9B InService 2015/2016; 5.3B Under Construction In Service Date 2015 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 2018+ NGL Pipeline & Services LPG export facility on Gulf Coast (up to 16…
  50. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 50
    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…
  51. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 51
    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…
  52. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 52
    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…
  53. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 53
    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…
  54. UBS MLP 1X1 Conference – Enterprise Products Partners LP – slide 54
    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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