ENTERPRISE PRODUCTS PARTNERS L.P. BARCLAYS INVESTMENT GRADE ENERGY & PIPELINE CONFERENCE March 12, 2017 Randy Fowler President ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
EPD KEY CREDIT HIGHLIGHTS Fully integrated midstream energy company aggregating domestic supply with direct connections to domestic and international demand History of successful execution on 62 billion of growth projects and M&A…
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…
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…
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…
LPG DOCK SPACE WILL NOT BE IN EXCESS FOREVER MBPD 3,500 Export Capacity at LPG Supply 85% Utilization 3,000 2,500 2,000 1,500 1,000 500 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 LPG…
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…
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…
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…
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…
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…
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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