ENTERPRISE PRODUCTS PARTNERS L.P. RAYMOND JAMES INSTITUTIONAL INVESTOR CONFERENCE March 06, 2018 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…
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…
EPD: NATURAL GAS, NGLS, CRUDE OIL, PETROCHEMICALS AND REFINED PRODUCTS Asset Overview Connectivity Pipelines: 50,000 miles of natural gas, NGL, crude oil, petrochemicals and Fully integrated midstream energy company refined products…
DIVERSIFIED SOURCES OF CASH FLOW BACKED BY FEEBASED BUSINESS MODEL 5.7 Billion Total Gross Operating Margin Natural Gas Gathering & Processing Diminishing for 12 months ended December 31, 2017 Contribution to Total Gross Operating…
MIDSTREAM ENERGY FUNDAMENTALS ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
HOW QUICKLY WILL DRILLED UNCOMPLETED WELLS (DUCs) TURN INTO PRODUCTION 3,000 Permian 1,800 Eagle Ford 2,613 1,600 1,519 2,500 1,441 1,400 1,001 1,189 2,000 1,200 of Wells 944 of Wells 1,000 1,500 1,281 1,197 800…
LOW GAS TO CRUDE SPREAD CONTINUING TO DRIVE U.S. NGL ADVANTAGE Indicative U.S. Ethylene Cracker Global Ethylene Cash Costs Profit Margin by Feedstock 70 70 60 55 Margin Cents per Pound U.S. Cents per Pound 50 40 40 25…
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 investment…
CRACKING ETHANE HAS A HIDDEN COST (OPPORTUNITY): FEW HEAVIER OLEFINS Production* Ethylene Propylene Butylene Butadiene Other Ethane 78% 0% 1% 2% 19% Propane 42% 17% 1% 3% 37% Feedstock Butane 40% 17% 7% 3% 33% Naphtha 31% 16%…
ENTERPRISE EXPORT CAPACITY Linking U.S. Supplies to Global Demand (5 MMBPD) Beaumont West Beaumont East Enterprise HSC Mont Belvieu Sealy Morgans Point ECHO Texas City 800 Dock Activity: 4Q 2017 700 600 241 Freeport…
U.S. IS THE LARGEST EXPORTER OF LPG LPG Exports by Destination through December 2017 EPD LPG Exports by Destination Region through December 2017: 422 MBPD EPD% of US exports to % of Cargos Loaded Destination Market North America 14%…
U.S. LPG DEMAND IS EXPECTED TO REMAIN FLAT AS PRODUCTION GROWS MMBPD 3.5 LPG Supply 3.0 Industry Export Capacity at 85% Operating Rate 2.5 2.0 1.5 1.0 0.5 0.0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021…
ETHANE EXPORT FACILITY Largest of Its Kind HOUSTON SHIP CHANNEL MORGANS POINT Dock 8 Dock 7 Train 2 Train 1 200 Average Annual Contracted Volumes 150 Combined operating loading rate of 200 MBPD MBPD 100 50…
TO MATCH REFINERS PREFERRED FEED SLATE: Expect Light Oil Exports & Heavy / Medium Imports By 2022 Global crude oil demand (excluding the U.S.) is expected to reach 7073 MMBPD vs. 65 MMBPD today The U.S. is expected to export 4 MMBPD,…
GROWTH PROJECTS UPDATE ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
EPD VISIBILITY TO GROWTH 5.5B of Major Capital Projects with More to Come NatGas PDH facility 1% MidlandtoSealy PL 5.0 Orla III Gas Plant 4.5 Petchem iBDH 30% Shin Oak pipeline 4.0 4.5 NGL Ethylene export dock 55% 3.5 Crude…
ETHANE TAKEAWAY SOLUTIONS Steady Volume Commitment Growth ATEX C2 Contracted Volumes ATEX 150 120 Current capacity of 130 MBPD 90 MBPD Expansion to 145 MBPD scheduled by year 60 131 104 116 81 end to meet contractual…
EXPANDING NGL FOOTPRINT IN PERMIAN Announced Orla III Orla Gas Processing complex: Capacity of 900 MMcf/d inlet gas and 120 MBPD of NGL production Bringing Delaware Basin gas processing capacity to 1.2 Bcf/d and 200 MBPD of NGL…
MIDLAND TO ECHO CRUDE PIPELINES MidlandtoECHO Contracted Volumes in Annual Averages O K L A H O M A MidlandtoECHO 350 Cushing 300 416-mile, 24 pipeline from 250 200 Midland to Sealy segment connects NEW to Sealy storage…
PDH FACILITY New PGP supply is needed since other industry PDH projects are on hold or cancelled, and other industry derivative capacity expansions are in progress Designed to produce 1.65 billion lbs/year (25 MBPD) of PGP with…
ISOBUTYLENE VALUE CHAIN Continuing Strategy: Convert low cost NGLs into value added olefins EPD Assets Crude MTBE Y-Grade N-butane Isobutane Isobutylene isoButane Crude Gas Plants Fractionation Isomerization DeHydro Isobutylene…
iBDH Converting Low Cost NGLs into Value Added Olefins Capacity 937 million pounds of isobutylene annually Doubles Enterprise capacity Will consume 30 MBPD isobutane Schedule Engineering is in full swing Permits have been…
FINANCIAL OVERVIEW ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
SUCCESSFUL EXECUTION THROUGHOUT CYCLES Increased Cash Distributions for 54 Consecutive Quarters MLP Equities: Correlation to Crude EPD Has Delivered Consistent Results Throughout Cycles in the Downturn, Lacking in the Upturn 160…
EPDS ROADMAP TO SELF-FUNDING EQUITY PORTION OF GROWTH CAPEX EPDs goal is to self-fund equity portion of organic growth capital growth investments in 2019 Assumes 2.5 - 3.0 billion of growth capital investment 867 million of Retained…
STRENGTHENING DEBT PORTFOLIO Extending Maturities Without Increasing Costs 24.0 Billion Notes Issued 93.4% Fixed Rate Debt(1) 21.0 8.0% 2009February 2018 20.5 20.0 11.0% 19.0 7.0% Average Maturity Years 18.8 10.5%…
CLOSING COMMENTS Overall macro environment is improving Growing demand for U.S. hydrocarbons from international markets Commodity prices improving; WTI increased from 26/bbl in February 2016 to 53+ in February 2017 to 60/bbl February…
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 non-GAAP 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) 381-6812 rburkhaltereprod.com Jackie Richert Director, Investor Relations (713) 381-3920 jmricherteprod.com ALL RIGHTS RESERVED. ENTERPRISE…
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