ENTERPRISE PRODUCTS PARTNERS L.P. RAYMOND JAMES INSTITUTIONAL INVESTORS CONFERENCE March 6, 2017 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…
SIGNIFICANT INSIDER OWNERSHIP / DEEP BENCH Supportive GP with significant ownership EPCO and affiliates own 32% of LP units EPCO & Facilitated elimination of IDRs in a Affiliates nontaxable transaction through (EPCO 100%…
SUCCESSFUL EXECUTION THROUGHOUT CYCLES Increased Cash Distributions for 50 Consecutive Quarters MLP Equities: Higher Correlation to Crude for Last 30 Months EPD Has Delivered Consistent Results Throughout Cycles 400% 1,600 160 350%…
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 Diminishing for 12 months ended December 31, 2016 Contribution to Total Gross Operating…
SUPPLY / DEMAND FUNDAMENTALS ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
CURRENT MACRO ENERGY OUTLOOK SupplySide Entering 3rd year of low commodity prices Is recent OPEC agreement, an inflection point to support 50+ crude E&P still living within cash flow; selective in capital allocation Capital markets…
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 in 2016 U.S. began exporting ethane by water in 2016 Record U.S. LPG exports…
LOW GAS TO CRUDE SPREAD CONTINUING TO DRIVE U.S. NGL ADVANTAGE Indicative U.S. Ethylene Cracker Profit Margin by Feedstock U.S. Ethylene Cracker Feedstocks 90 U.S. Ethylene Cracking Capacity 1,200 40% Growth Billion lb/year…
RIG COUNTS IN CRUDE OIL PLAYS 600 500 400 300 200 100 0 Jan12 Jul12 Jan13 Jul13 Jan14 Jul14 Jan15 Jul15 Jan16 Jul16 Jan17 Permian Eagle Ford DJ Basin Bakken…
NATURAL GAS: U.S. GULF COASTCENTRIC DEMAND & FORECASTED FLOW PATTERNS Canada 2016 to 2022 Change in NG Flow +3 Bcf/d Bakken +0.5 1 Bcf/d Canada RC & E.G. +1.5 +1.0 Demand Rockies Marcellus & Utica Other Western…
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…
U.S. GULF COAST ETHANE BALANCES MBPD Appalachia All Regions West of MTBV Supply Potential MBPD 800 Supply Potential +50 2,000 261 120 (1) Utopia Export 400 (1) 217 1,500 120 383 233 178 0 1,000 1,624 Current 2020 500…
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: 6.7B OF MAJOR CAPITAL PROJECTS BY INSERVICE DATE PDH facility Butane recovery facility MidlandtoECHO pipeline Propylene pipeline expansion Crude oil infrastructure 3.0 NGL pipeline expansions 2.8 Permian…
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 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…
MIDLAND TO SEALY CRUDE OIL P/L SEGMENT From the Permian Supply Hub to Multiple Markets 400mile, 24 pipeline from Midland O k l a h o m a Cushing to Sealy segment connects to Sealy storage facility Sealy connected to ECHO by…
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) 150 12 29 10 14 Capacity (MMBbls) MBPD…
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 contractual volume ramp…
ISOBUTANE DEHYDROGENATION (iBDH) Extending the Butane Value Chain EPD Assets Motor Crude Gasoline YGrade Nbutane Isobutane Isobutylene Additives iBDH Isomerization (existing) Crude Gas Plants Fractionation Isobutylene…
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…
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 4.4x 4.3x 5.0 in Billions 4.2x 4.2 4.2x 3.9 4.1x 4.0…
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…
MLPs PROVIDE COMPELLING VALUE COMPARED TO OTHER INCOME SECURITIES Median Current Yield 8.0% 7.04% 7.0% 6.0% EPD 5.7% EPD 5.7% 5.0% 4.45% 4.26% 4.0% 3.55% 3.0% 2.0% 1.0% 0.0% Midstream MLP REIT (RMZ) Midstream C-Corp…
APPENDIX ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
VISIBILITY TO GROWTH: MAJOR CAPITAL PROJECTS 2.2B InService 2016; 6.7B Under Construction In Service Date 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 2018 2019+ 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
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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