ENTERPRISE PRODUCTS PARTNERS L.P. J.P. MORGAN 2018 ENERGY CONFERENCE June 19-20, 2018 Bryan Bulawa Senior Vice President & Chief Financial Officer 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 & Affiliates Supportive and unlevered GP with 100% significant ownership General Public EPCO and affiliates own 32% of LP units Partner 32% L.P. Eliminated 50% IDRs…
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…
Natural Gas Gathering & Processing Diminishing Contribution to Total Gross Operating Margin Total GOM 4,387 4,814 5,205 5,339 5,248 5,680 1,586 1,350 30% 27% 1,200 25% 1,050 % of Total GOM 17% 900 15% 20% in Millions…
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…
FIRST VLCC TO BE LOADED AT A TEXAS PORT Seaway plans to load the first VLCC (FPMC C Melody) at a Texas port this month at its Texas City marine terminal Expects to load approx. 1.1 million barrels (approx. 50% of VLCC 2.0 million…
MIDSTREAM ENERGY FUNDAMENTALS ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
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…
OIL & CONDENSATES: MORE THAN 80% OF GROWTH IS FROM PERMIAN AND EAGLE FORD AK & CA 1,000 750 970 918 885 500 ROCKIES 250 2,500 0 2,000 1,500 1,984 2,101 2,127 Current 2020 2022 1,000 500 0 APPALACHIAN 200 Current 2020 2022…
RIG COUNTS: 57% OF RIGS ARE IN PERMIAN, EAGLE FORD AND HAYNESVILLE Baker Hughes Rig Counts 1,200 1,000 800 458 600 76 54 400 200 444 0 All Others Haynesville Eagle Ford Permian Source: Baker Hughes ALL…
DUCS: 60% OF ALL DUCS ARE IN PERMIAN, EAGLE FORD AND HAYNESVILLE Drilled Uncompleted Wells 9,000 8,000 7,000 6,000 3,044 5,000 4,000 1,507 3,000 175 2,000 2,966 1,000 - Dec-13 Dec-14 Dec-15…
PERMIAN CRUDE OIL BALANCES (Using Capacities at 100% Load Factor) 7,000 Midland to Nederland 6,500 (Open Season) EPD NGL Conversion 6,000 5,500 Epic to Corpus 5,000 Gray Oak 4,500 Production Cactus 2 4,000 MBPD 3,500…
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…
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 MBPD TOTAL…
ETHANE TO POLYETHYLENE FUNDAMENTALS REMAIN STRONG Indicative US Ethylene Cracker Profit Margin by Feedstock Polyethylene vs Ethylene Prices 75 1.00 HDPE is 60% of production 0.90 60 0.80 Margin Cents per Pound 45 0.70…
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…
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…
U.S. LPG SUPPLY GROWTH WILL REQUIRE EXPORTS MBPD 4,000 1 MMBPD looking for a home 3,500 Industry Export Capacity at 85% 3,000 Operating Rate 2,500 LPG Supply 2,000 1,500 1,000 500 0 2011 2012 2013 2014 2015…
ASIA ABOUT HALF OF LPG IS IMPORTED Currently 40% from U.S. A large portion of this demand is consumer -oriented and relatively inelastic Between 2012 and 2017, Chinese and Indian LPG demand grew at 17% and 8% CAGR, respectively…
GROWTH PROJECTS UPDATE ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
WE CONTINUE TO GROW 4.9B of Major Capital Projects with More to Come NatGas 2% Orla III Gas Plant PDH facility iBDH 5.0 MidlandtoSealy PL Shin Oak pipeline Petchem Ethylene export dock 30% Front Range & TX Express exp. 4.5 4.0…
ENTERPRISES PERMIAN CRUDE PIPELINE From Permian Supply Hub to Multiple Markets 20.0 /bbl Midland-to-Houston pipeline system: 15.0 10.0 416-mile, 24 pipeline from Midland to 5.0 Sealy with a 575 MBPD max capacity 0.0 Cushing…
PERMIAN NGL EXPANSION PROJECTS Pipelines and Processing GAS PROCESSING PLANT UNDERGROUND LIQUIDS STORAGE Shin Oak NGL Pipeline: FRACTIONATOR SHIN OAK OTHER ENTERPRISE PIPELINES 658-mile, 24 new build pipeline, scheduled in-…
ENTERPRISE MONT BELVIEU Frac IX & PDH Facilities began commercial service 2Q18 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…
PDH: FUNDAMENTALS REMAIN STRONG Commercial contracts became effective in June 2018 Alleviated bridge obligations allowing propylene splitters to capture market spreads between RGP & PGP Currently running in excess of nameplate…
BUTANE TO BUTYLENE VALUE CHAIN Continuing Strategy: Convert low cost NGLs into value added olefins Enterprise Assets Existing Crude MTBE Y-Grade n-Butane 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…
ENTERPRISE ETHYLENE SYSTEM: Under Development STORAGE & CONNECTIVITY PIPELINE EXPORT TERMINAL Cavern capacity 600 million lbs Export System capable of Access to USGC ethylene via 2.2 billion lbs per year Cavern In/Out delivery…
FINANCIAL OVERVIEW ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
CONSISTENT FINANCIAL RESULTS THROUGH CYCLES MLP Equities: Correlation to Crude EPD Has Delivered Consistent Results in the Downturn, Disconnected in the Upturn Throughout Cycles in Millions 400% 160 1,750 350% 140 1,500 300% 120…
CLOSING COMMENTS Overall macro environment is improving Growing demand for U.S. hydrocarbons from international markets Commodity prices improving; WTI prices reached 70/bbl in May; Ethane prices are currently 0.30/gal in June;…
NONGAAP RECONCILIATIONS & APPENDIX 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…
MAJOR CAPITAL PROJECT DETAILS 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 2019+ NGL Pipeline & Services South Eddy (Permian) gas plant 200 MMcf/d & related pipelines Ethane export facility on Gulf Coast Delaware Basin gas plant (Oxy JV)…
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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