March 2018 Analyst Day – Enterprise Products Partners LP

Enterprise Products Partners LP · Mar 13, 2018 · 119 slides

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ENTERPRISE PRODUCTS PARTNERS L.P. ANALYST CONFERENCE March 7, 2018 ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
MEETING AGENDA 1. Randa Duncan and Jim Teague Welcome and Opening Remarks 2. Tony Chovanec (& Jim Teague) Supply / Demand Fundamentals 3. Natural Gas & Natural Gas Liquids (NGLs) Panel Moderated by Bill Ordemann Bradley Motal…
WELCOME AND OPENING REMARKS Jim Teague Chief Executive Officer ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
EPD HAS EXECUTED THROUGHOUT THE CYCLE 120 2.50 100 2.00 2.06 2.05 1.97 1.99 1.4x 1.93 1.2x 1.4x 1.3x 80 1.2x 1.72 Operational DCF/Unit 1.58 1.3x 1.50 1.3x /bbl 60 1.00 40 0.50 20 2011 2012 2013 2014…
WE CONTINUE TO GROW 5.5B of Major Capital Projects with More to Come NatGas 1% PDH facility MidlandtoSealy PL 5.0 Petchem Orla III Gas Plant 4.5 30% iBDH NGL Shin Oak pipeline 4.0 4.5 55% Ethylene export dock Crude 3.5 14%…
ENTERPRISE EXPORTS EXPECTED TO CONTINUE TO INCREASE 50,000 45,000 40,000 35,000 30,000 Thousand Bbls 25,000 HURRICANE HARVEY 20,000 15,000 10,000 5,000 0 Jan17 Feb17 Mar17 Apr17 May17 Jun17 Jul17 Aug17 Sep17…
FUNDAMENTALS OVERVIEW Tony Chovanec Senior Vice President ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
A QUICK LOOK BACK Previous Themes, Messages and Questions 2012 Focused on growing NG and NGL production forecasts but highlighted seeing the tip of crude oil iceberg 2013 Stressed the need for exports to support growing…
LIQUID HYDROCARBON DEMAND GROWTH Dominated by Emerging Markets MMBOED World Liquid Hydrocarbon Consumption by Region 35 IEA WEO 2016, COP21 Scenario NonOECD Asia 30 25 20 15 European Union USA 10 Middle East Lat AM…
ENERGY MARKETS GLOBALLY HAVE MOVED TO BACKWARDATION WITH THE FREEZE /Bbl 75 Backwardation = Tight Supplies 65 55 45 35 25 Apr15 Jan15 Oct15 Apr16 Oct16 Apr17 Oct17 Apr18…
NATURAL GAS REMAINS CHALLENGED TO HOLD 3 FLOOR /MMBtu 6 5 4 3 2 1 0 Feb09 Feb10 Feb11 Feb12 Feb13 Feb14 Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Natural Gas Price Source: Bloomberg Section 2 ALL RIGHTS…
OIL & CONDENSATES: MORE THAN 80% OF GROWTH IS FROM PERMIAN AND EAGLE FORD 1,000 AK & CA 750 970 918 885 500 250 0 2,500 ROCKIES Current 2020 2022 2,000 1,500 1,984 2,101 2,127 1,000 APPALACHIAN 500 200 0 100 156 Current…
NGLS: ABOUT 70% OF GROWTH IS FROM PERMIAN AND EAGLE FORD 120 AK & CA 80 103 99 96 40 0 ROCKIES Current 2020 2022 1000 1,006 1,052 873 500 0 APPALACHIAN 1,500 Current 2020 2022 1,402 1,000 1,108 500 844 Total Supply…
U.S. NATURAL GAS SUPPLY POTENTIAL ASSUMING SUFFICIENT MARKETS (BCF/D) 2 AK & CA 1 0.9 0.8 0.8 0 ROCKIES Current 2020 2022 16 12 12 13 13 8 4 0 40 APPALACHIAN Current 2020 2022 30 38 33 20 25 10 MIDCONTINENT 0 12…
PRODUCTION GROWS AS RIGS/COMPLETIONS FALL COMPLETIONS ALREADY ON TRACK FOR 2018 35,000 14 EPD Forecast Oil Well Completions vs Production 30,000 12 10 PRODUCTION RATE, MBPD 25,000 WELLS COMPLETED/YR 20,000 Jan & Feb…
WELL PRODUCTIVITY CONTINUES TO IMPROVE Crude Oil First 6 Months Production/Well 700 Permian* Eagle Ford Bakken 600 500 400 BPD 300 200 100 2010 2011 2012 2013 2014 2015 2016 2017 *Excludes legacy shallow…
RIG COUNTS: 55% OF RIGS ARE IN PERMIAN, EAGLE FORD AND HAYNESVILLE Baker Hughes Rig Counts 1,200 1,000 800 433 600 70 400 50 200 422 0 All Others Haynesville Eagle Ford Permian Source: Baker Hughes Section…
DUCS: 60% OF ALL DUCS ARE IN PERMIAN, EAGLE FORD AND HAYNESVILLE Drilled Uncompleted Wells 8,000 7,000 6,000 2,777 5,000 4,000 1,468 186 3,000 2,000 3,062 1,000 All Others Haynesville Eagle Ford Permian…
CRUDE EXPORTS KEY TO PRODUCTION GROWTH Expect Light Oil Exports and Heavy / Medium Imports U.S. Light, Sweet Crude Offers a Worldwide GRADE and SULFUR Arbitrage MMBPD 22 Potential Exports: Up to 4 MMBPD of mostly light oil and 20…
U.S. LPG SUPPLY GROWTH WILL REQUIRE EXPORTS MBPD 4,000 1 MMBPD looking 3,500 for a home 3,000 LPG Supply 2,500 2,000 1,500 1,000 500 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 (1) 2020 2021 2022 LPG Domestic…
ASIA ABOUT HALF OF LPG IS IMPORTED Currently 40% from U.S. A large portion of this demand is consumeroriented and relatively inelastic Between 2012 and 2017, Chinese and Indian LPG demand grew at 17% and 8% CAGR, respectively…
EXPORTS OF REFINED PRODUCTS ALSO EXPECTED TO CONTINUE TO GROW Exports of refined products are expected to grow driven by (belated but expected) declining demand in the U.S. but stronger demand in Latin America and Africa U.S.…
PETROCHEMICALS ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
GAS TO CRUDEU.S. GAS AND ETHANE ARE SUPERIOR GLOBALLY 13.0 12.0 11.0 10.0 9/MMBtu 9.0 /MMBtu 8.0 Asian LNG European Gas 7.0 6.0 5.0 U.S. Ethane 4.0 11.5 cpg 3.0 2.0 1.0 FEB 18 FEB 19 JUN 18 JAN…
U.S. ETHYLENE DERIVED FROM ETHANE IS SUPERIOR GLOBALLY Global Ethylene Cash Costs 70 60 50 U.S. Cents per Pound 40 30 20 10 0 Jan13 Jul13 Jan14 Jul14 Jan15 Jul15 Jan16 Jul16 Jan17 Jul17 Jan18 US Ethane US…
THE CHEMICALS INDUSTRY IS MAKING LARGE INVESTMENTS BASED ON U.S. SHALES American Chemistry Council (ACC) shows 164 billion in spending could lead to 105 billion per year products, with much of the output headed for export Petchems…
USGC ETHANE BALANCES EXPECTED TO TREND LONG AGAIN MBPD Ethane SupplyDemand on U.S. Gulf Coast 2,750 2,500 Total Formosa 2,250 Axiall / Lotte 2,000 Includes Actual Sasol 1,750 Rejection Shintech 1,500 Indorama 1,250…
ETHYLENE & PROPYLENE DEMAND STRONG Growth is Function of Rising Living Standards Between 2010 and 2019 the Compounded Annual Growth Rates (CAGR) are approximately: GDP: 3.0% Oil 1.5% Note that most consultants have similar…
STRONG GLOBAL GROWTH AHEAD FOR OLEFINS U.S. NGL Feedstock an Ideal Solution Ethylene: Beyond 2020 there is uncertainty about half of the new supplies needed to fulfill demand growth (inadequate firm FID, including CoalToOlefins (CTO)…
PRODUCTION PETCHEMS EXPORTS Stronger U.S. oil and NGLs production driven by continued increases in technology and efficiency gains For EPD More processing, fracs and pipes provide feebased and value chain growth Natural Gas…
NATURAL GAS & NGL PANEL Bradley Motal SVP, Natural Gas Tug Hanley VP, Regulated NGLs Chris DAnna VP, Unregulated NGLs ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
NATURAL GAS & GAS PROCESSING ASSETS Multiple Basin, Multiple Opportunities 27 Natural Gas Processing Plants 12.5 Bcf/d Processing Capacity 20,000 Miles of Pipeline Section 3 ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS…
ORLA GAS PROCESSING COMPLEX Executing in the Permian The Orla Complex is progressing on schedule: 3 trains provide 1 Bcf/d of capacity Chaparral 36,000 BPD of stabilization 150,000 BPD of NGL production Connected to EPDs…
PERMIAN GROWTH STORY Timeline & Contract Mix PERMIAN VOLUME GROWTH 1,600 Orla III (300) PERMIAN CONTRACT MIX 1,400 Orla I (300) Orla II (300) 1,200 Dedication 42% 1,000 58% MMcf/d Demand 800 South Eddy (200) DBGP…
ENTERPRISE PROCESSING PLANTS Gas Supply is NGL Supply ENTERPRISE NGL PRODUCTION 700 Permian drives NGL growth with 600 150 MBPD by 2020 500 NGL MBPD 400 2018 2020 300 200 100 2012 2013 2014 2015 2016 2017…
REGULATED NGL AND REFINED PRODUCTS Pipeline Systems Overview Regulated pipeline system spans nearly 20,000 miles or 40% of total Enterprise pipeline miles Reaches 27 states transporting over 2 MMBbls/d Connects major production…
SHIN OAK PIPELINE More than just a Permian Pipeline SHIN OAK HIGHLIGHTS GAS PROCESSING PLANT Rerouted through the heart of the basin UNDERGROUND LIQUIDS STORAGE FRACTIONATOR 24 new build pipeline, scheduled inservice: 2Q19 SHIN OAK…
ENTERPRISE PERMIAN NGL PIPELINES Building on a Strong Foundation STRENGTH IN THE SYSTEM Integrated pipeline systems provide flow assurance, reliability, and redundancy Unparalleled flexibility with access to 6 key takeaway pipelines…
UNREGULATED NGL BUSINESS Systems Overview 4,000 miles of pipelines 170 MMBbls of NGL storage capacity 116 MBPD C4 isomerization capacity 10 MBPH ethane export capacity 1.2 MMBPD fractionation capacity Section 3 ALL RIGHTS…
NGL FRACTIONATION Expected Supply Forecast 1,400 Supply Forecast Systemwide Capacity 1,200 1,000 Mont Belvieu Capacity 800 MBPD 600 400 200 2010 2011 2012 2013 2014 2015 2016 2017 2018E 2019E…
MONT BELVIEU STORAGE COMPLEX Four Facilities Our Core Advantage North Storage 10 Wells 31 MMbbls Central Storage 3 wells (under Expansion Property development) 10 MMbbls Brine 38 MMbbls pits in 2017 East Storage 17…
EAST TEXAS / LOUISIANA Opportunities Abound Texas Azure acquisition (BTA) pays immediate dividends Louisiana Creates one system Increases exposure to TX Haynesville & Cotton Valley Enhances our Louisiana value chain Provides…
EAGLE FORD / SOUTH TEXAS Start of the Comeback Rich Eagle Ford Production continues to increase Large acreage holders have exited or have announced their exit Shell, Anadarko, BHP, and Pioneer The shift towards basincentric…
ENTERPRISE ROCKIES G&P ASSETS Rockies Resurgence Regionally focused producers 17 rigs, up 143% from a low of 7 rigs in March 2016 Horizontal development Ultras 1st HZ peaked at 51 MMcf/d, 2nd at 17 MMcf/d & 3rd on flow back at 45…
FRONT RANGE & TEXAS EXPRESS Established Options, Poised for Growth WELL POSITIONED ASSETS Front Range & Texas Express: an established DJ Basin, Barnett & North Texas ygrade takeaway option with connectivity to MAPL & Mont Belvieu…
ATEX: APPALACHIAN ETHANE SOLUTION Executing Today AT E X P I P E L I N E MEETING THE NEEDS OF THE APPALACHIAN Key ethane takeaway solution serving the BASIN Appalachian Basin Expanded from 130 MBPD to 145 MBPD in late 2017…
ENTERPRISE ETHANE HEADER Prepared for Tomorrow S U P P LY I N G G U L F C O A S T C R A C K E R S 515Mile Ethane Pipeline System from Corpus Christi to the Mississippi River South Texas & Aegis Pipeline: Both fully contracted and…
BUTANE ISOMERIZATION Always in Demand 150,000 Isom Production 30.0 iC4/nC4 Spread (cpg) 20.0 BPD (average) 100,000 10.0 0.0 50,000 10.0 20.0 BPD NC4IC4 Spread 3 plants, total capacity 116 MBPD Most Isom…
CRUDE/REFINED PRODUCTS, TERMINALS & MARKETING PANEL Jay Bany VP, Crude Pipeline & Terminals Theresa Houston VP, Crude & Refined Products Terminals Brent Secrest SVP, Marketing ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS…
CRUDE OIL SYSTEM Aggregation, Pipelines, Terminals and Docks Strategically linked terminals are O K L A H O M A Terminal Eagle Ford Terminal essential for supply aggregation, Cushing Seaway segregation, batching, and exports Red…
PERMIAN BASIN EXPANSION Strategic Supply Aggregation Mesa Plains Centurion PET Hobbs Lynch EPD West Texas Gathering EPD Loving County Pipeline Enterprise ENTERPRISE EPD Loving County Cowboy EPD Midland to ECHO Red…
ENTERPRISES PERMIAN CRUDE PIPELINE From Permian Supply Hub to Multiple Markets O K L A H O M A MIDLAND TO ECHO Cushing DIRECT ROUTE FROM MIDLAND TO THE TEXAS GULF COAST NEW 416mile, 24 pipeline from Midland to Sealy MEXICO with…
ECHO TERMINAL 1.5 MMBPD of Throughput STORAGE AND CONNECTIVITY HOUSTON SHIP CHANNEL 7.4 MMBbls shell capacity of crude & condensate storage Operational storage for Seaway, Midland to ECHO, and Eagle Ford pipelines, and merchant…
ENTERPRISES DISTRIBUTION SYSTEM Unparalleled Connectivity Moore Road CUSHING 36/24/24 EHSC 45 draft Galena Park 24 30/30/24 24 SEALY XOM Baytown VLO H.R. PRSI Shell BEAUMONT 30 KATY SDP Junction 24 Genoa Junction…
ENTERPRISE EXPORT CAPACITY Linking U.S. Supplies to Global Demand Beaumont West Beaumont East Enterprise HSC Mont Belvieu Sealy Morgans Point ECHO Texas City Freeport / Jones Creek ENTERPRISE ASSETS Max Loading…
HOUSTON SHIP CHANNEL TERMINAL ENTERPRISE HOUSTON SHIP CHANNEL Best in Class EHSC Crude & Products CONNECTIVITY Storage EPD ECHO Terminal Zydeco HOHO Over 24 MMBbls of storage MMP Longhorn & BridgeTex TransCanada Marketlink Docks…
MARINE TERMINAL / DOCK ACTIVITY Crude Oil & Condensate(1,2) Petrochemical & Refined Products(2) 750 406 400 389 355 107 600 557 531 103 495 270 366 300 294 299 MBPD 450 328 286 MBPD 200 258 300 150 237 100 191…
CONTINUED GROWTH IN LPG SUPPLY US Supply to Exceed Terminal Capacities US LPG Supply & Demand Forward View 4,000 3,500 ACTUAL FORECAST 3,000 2,500 MBPD 2,000 1,500 1,000 500 0 2013 2014 2015 2016 2017 2018…
ENTERPRISE NGL EXPORTS Product Flows Evolved 2014 2017 250 MBPD 508 MBPD 54% of US Exports 46% of US Exports Europe/Africa 80 60 Asia North/Central America MBPD 400 40 80 61 300 20 MBPD 60 38 MBPD 200 0…
ENTERPRISE SHIP CHANNEL TERMINAL LPG/PGP Across the Dock Premier LPG/PGP Export Facility Capacity 30+ MBPH under current configuration Ability to load multiple ships and multiple products simultaneously using the 30, 16 and 10…
ENTERPRISE SHIP CHANNEL TERMINAL Growing Through the Cycles Appelt 58 Acres Section 4 ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. Page 12
ENTERPRISE SHIP CHANNEL TERMINAL Growing Through the Cycles 58 Acre Expansion Update Storage 3 MMBbls available in 2018 Room for additional 1.5 MMBbls Connectivity New inbound ECHO 30 pipeline 2 outbound dock lines Full…
US CRUDE ARBS ONE YEAR LATER Growing US Supply Prices to Export ICE Brent less WTI Cushing 2017 vs. 2018 2,000 8.00 1,800 7.00 1,600 6.00 1,400 5.00 1,200 Forced Exports MBPD /Bbl 1,000 4.00 800 3.00 600 2.00…
ENTERPRISE CRUDE EXPORT SALES Product Flows Evolving Nov 2017 Jan 2018 158 MBPD 274 MBPD Europe/Africa 10% of US Exports 20% of US Exports 100 75 MBPD 50 87 84 North/Central America 25 50 0 Nov '17 Jan '18 40 MBPD…
BEAUMONT TERMINALS Beaumont (BEA), West (BMW) and East (BME) B e a u m o n t Te r m i n a l Beaumont Marine West Construction 2.6 MMBbls of fungible storage capacity 2 export lines capable of up to 25MBPH BEA…
SOUTHERN COMPLEX CONNECTIVITY Refined Products System TE PRODUCTS EXXONMOBIL PIPELINE BEAUMONT IAH TOTAL SUPPLY ACCESS N. HOUSTON NHD MONT 362mbpd VIA INDIRECT TERMINAL BELVIEU SOURCES 225mbpd 340mbpd BAYTOWN BEAUMONT…
TRUCK AND RAIL TERMINALS ERPC, ET&S, and EPT&S Network VT NH M N INVER GROVE N Y W I S D PINE BEND SELKIRK MA MANKATO ONEONTA JACKSON WATKINS CT SANBORN M I GLEN HARFORD MILLS JANESVILLE I A DUBUQUE DUBOIS WHITING OGDEN P…
EAGLE FORD TO MULTIPLE MARKETS Engaged for Opportunity Llano Brazos Walker Tyler Eagle ford Activity Mason Burnet Williamson Milam San Jacinto Polk Burleson Grimes Jasper Targeting Eagle Ford focused customers Montgomery…
ENTERPRISES DEDICATION TO QUALITY Providing Consistent Quality Preservation I N I T I AT I V E Initially based upon feedback from producers, shippers, and refiners about the value in consistent quality from origin to…
PETROCHEMICALS R.B. Herrscher Senior Vice President, Petrochemicals ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
PETCHEM ASSETS & ANNUAL CAPACITIES Existing & Under Construction Texas Louisiana PGP, RGP, CGP, Ethylene & Isobutylene Pipelines (526 miles) Underground Storage Propane / Propylene Caverns Underground Storage Splitters (7…
ENTERPRISE MONT BELVIEU Petchem Started it All iBDH 2 PDH & PDH Splitter Frac IX Frac IV, V, VI, VII & VIII iBDH 1 & MTBE (BEF) Splitters II & IV Splitter I Frac II & III Isoms & DIBs Splitter III Units 1, 2 &…
ENTERPRISE PROPYLENE A Value Chain Within a Value Chain 59 Refinery sources of RGP in 2017 Reliable takeaway service is a refinerys 231 Miles of gathering pipelines most critical 100 Railcars per day RGP unload capacity…
PDH: FUNDAMENTALS REMAIN STRONG Production ramp up is ongoing First PDH PGP sales in December Inservice date was February 1st 100% of the capacity is contracted Propane plus insures cash flow without market price risk…
GLOBAL PROPYLENE GROWTH A Supply Deficit Beyond 2020 Beyond 2020, there is no significant CTO/MTO capacity being planned or triggered (FID) so far Between 2020 and 2024, cracking Naphtha only, would require an additional 2.7 MMBD…
PGP EXPORTS Global demand for PGP continues to grow Enterprise is filling the gap U.S. pricing is now Annual PGP Exports globally competitive 1,400 1,000 800 2017 Analyst Meeting Contracted export 1,200 Million Lbs 600…
BUTANE TO BUTYLENE VALUE CHAIN Continuing Strategy: Convert low cost NGLs into value added olefins Enterprise Assets Existing Crude MTBE YGrade nButane IsoButane Isobutylene IsoButane isoButane Crude Gas Plants Fractionation…
iBDH The Other DeHydrogenation Project Facility rendering Capacity 937 million pounds of isobutylene annually (425,000 metric tons) Doubles Enterprises capacity Consumes 30,000 bpd butane Schedule Permit received last Fall…
MTBE: OCTANE ENHANCEMENT Gasoline exports to Latin America are forecast to remain strong L.A. demand growth Unreliable refinery operations Opening of the Mexico market Globally, octane components continue their growth trend…
ISOBUTYLENE: CRUDE AND HIGH PURITY Extension of EPD Butane value chain into more specialized olefin building blocks Crude Isobutylene Feedstock for Polyisobutylene for lubricants and additives Lubricant technology is getting more…
ENTERPRISE ETHYLENE SYSTEM: Under Development STORAGE & CONNECTIVITY PIPELINE EXPORT TERMINAL Cavern capacity 600 million lbs Access to USGC ethylene via Export System capable of 2.2 Cavern In/Out delivery rates over Enterprise…
ETHYLENE EXPORT Enterprises premier export position for LPG, Ethane, and Propylene will now be broadened to include Ethylene Exporting derivatives (primarily polyethylene) is the best answer for the continuing expansion of U.S.…
OPERATIONS AND ENGINEERING Graham Bacon Executive Vice President, Operations and Engineering ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
OPERATIONS AND ENGINEERING THE ENTERPRISE ADVANTAGE Safety Major Project Updates Our Approach to Project Execution Materials and Labor Market Update The People of Enterprise Hurricane Harvey Section 6 ALL RIGHTS RESERVED.…
SAFETY PERFORMANCE Plants, Pipeline and Terminal Operations 1.6 1.40 1.4 1.2 1.01 1.00 1.0 0.91 Injury Rate 0.8 0.76 0.70 0.65 0.61 0.6 0.41 0.4 0.2 0.0 2009 2010 2011 2012 2013 2014 2015 2016 2017 Total Recordable…
RESPONSIBLE GROWTH The safety of our employees, the environment, and the communities we operate in is of utmost importance Leadership Involvement Beyond injury statistics Review multiple metrics that identify risk Reducing…
MAJOR PROJECT UPDATES IBDH Construction in progress Major equipment purchased Detailed engineering nearing completion Shin Oak ROW acquisition over 50% complete Pipe order placed and price locked in prior to cost increases…
THE PROJECT PROCESS Commercial/Engineering Engagement Starts at Project Concept Permitting Inhouse staff specialized in regulatory permitting Working relationships with regulatory agencies Early routing to avoid environmentally…
MARKET UPDATE: MATERIAL AND LABOR ERW Pipe (1624) & Steel Pricing 1,200 Equipment lead times for 1,100 pumps, valves and motors 1,000 900 remained steady during 2017 /Ton 800 700 Steel prices remained steady 600 in 2017…
OUR PEOPLE AND HURRICANE HARVEY 10 PM 8/30 10 PM 8/27 10 PM 8/26 10 PM 8/29 10 PM 8/25 10 PM 8/28 Section 6 ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. Page 7
ENTERPRISE RESPONSE: First in Reliability Across the Value Chain Through the storm Remained the only integrated midstream provider at full operational capacity in NGLs, Crude, and Natural Gas Critical support for refineries…
HARVEY OPERATIONS Strength in Our People Our people responded in magnificent fashion with creative solutions to the myriad of issues that came up during and after the flood Ride out teams enabled sustained operations through the…
FINANCIAL OVERVIEW Bryan Bulawa Senior Vice President & Chief Financial Officer ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
EPD FINANCIAL OBJECTIVES Structured For and Executing Through Cycles Financial approach that does not change through cycles Maintain a strong balance sheet, liquidity, and leverage metrics that support a solid investment grade…
EPDS UNIQUE ADVANTAGE Financially Strong & Supportive GP EPCO & Supportive and unlevered GP with Affiliates significant ownership 100% General EPCO and affiliates own 32% of LP units Public Partner Eliminated 50% IDRs in 2002…
STRONG FINANCIAL RESULTS Structured For and Executing Through Cycles Vs. 2017 2016 Distributions Declared Per Unit 1.6825 +5% Key Drivers Asset Footprint Gross Operating Margin (1) 5.7B +8% Highly integrated Diversified…
STRONG FINANCIAL RESULTS Structured For and Executing Through Cycles Total Gross Operating Margin (Total GOM) Distributable Cash Flow (DCF)(1) 6.0 5.7 6.0 5.6 5.2 5.3 5.2 4.8 5.0 4.5 5.0 4.1 4.1 4.0 3.8 4.0 Billions…
DIVERSIFIED BUSINESS MIX WITH AMPLE GROWTH Structured For and Executing Through Cycles 2015 5.3B GOM 2016 5.2B GOM Offshore 2% NatGas NatGas 14% 15% Petchem Petchem 13% NGL NGL 13% 57% 52% Crude Crude 16% 18% 5.5B of…
CONSISTENT FINANCIAL RESULTS THROUGH CYCLES Structured For and Executing Through Cycles MLP Equities: Correlation to Crude EPD Has Delivered Consistent Results Throughout Cycles in the Downturn, Disconnected in the Upturn 160 1,600…
COMMODITY PRICE HEADWINDS OFFSET WITH GROWTH Structured For and Executing Through Cycles 2.50 (2) 4.4% CAGR 2.00 1.50 0.72 (0.37) 1.93 2.05 1.00 1.2x 1.2x 1.58 1.3x 0.50 2011 Impact from lower Gas Growth: New…