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April 2018 Mizhuno Energy Summit – Enterprise Products Partners LP

Enterprise Products Partners LP · Apr 9, 2018 · 42 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. April 2018 Mizhuno Energy Summit – Enterprise Products Partners LP – slide 1
    ENTERPRISE PRODUCTS PARTNERS L.P. MIZUHO ENERGY SUMMIT April 9-10, 2018 Bryan Bulawa Senior Vice President & Chief Financial Officer ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
  2. April 2018 Mizhuno Energy Summit – Enterprise Products Partners LP – slide 2
    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…
  3. April 2018 Mizhuno Energy Summit – Enterprise Products Partners LP – slide 3
    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…
  4. April 2018 Mizhuno Energy Summit – Enterprise Products Partners LP – slide 4
    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…
  5. April 2018 Mizhuno Energy Summit – Enterprise Products Partners LP – slide 5
    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…
  6. April 2018 Mizhuno Energy Summit – Enterprise Products Partners LP – slide 6
    ENTERPRISE EXPORTS EXPECTED TO CONTINUE TO INCREASE 1,800 1,600 1,400 1,200 MBPD 1,000 800 HURRICANE HARVEY 600 400 200 0 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17…
  7. April 2018 Mizhuno Energy Summit – Enterprise Products Partners LP – slide 7
    MIDSTREAM ENERGY FUNDAMENTALS ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
  8. April 2018 Mizhuno Energy Summit – Enterprise Products Partners LP – slide 8
    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…
  9. April 2018 Mizhuno Energy Summit – Enterprise Products Partners LP – slide 9
    OIL & CONDENSATES: MORE THAN 80% OF GROWTH IS FROM PERMIAN AND EAGLE FORD AK & CA 1,000 750 970 918 885 500 250 0 2,500 ROCKIES Current 2020 2022 2,000 1,984 2,101 2,127 1,500 1,000 APPALACHIAN 500 200 0 100 156 Current…
  10. April 2018 Mizhuno Energy Summit – Enterprise Products Partners LP – slide 10
    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 ALL…
  11. April 2018 Mizhuno Energy Summit – Enterprise Products Partners LP – slide 11
    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 3,000 186 2,000 3,062 1,000 - All Others Haynesville Eagle Ford Permian…
  12. April 2018 Mizhuno Energy Summit – Enterprise Products Partners LP – slide 12
    PERMIAN CRUDE OIL BALANCES (Using Capacities at 100% Load Factor) 6,500 6,000 EPD NGL Conversion 5,500 S TX Gateway (Open 5,000 Season) Grey Oak (Open Season) 4,500 EPIC 4,000 production Cactus 2 3,500 MBPD BridgeTex…
  13. April 2018 Mizhuno Energy Summit – Enterprise Products Partners LP – slide 13
    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…
  14. April 2018 Mizhuno Energy Summit – Enterprise Products Partners LP – slide 14
    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…
  15. April 2018 Mizhuno Energy Summit – Enterprise Products Partners LP – slide 15
    USGC ETHANE BALANCES EXPECTED TO TREND LONG AGAIN MBPD Ethane Supply-Demand on U.S. Gulf Coast 2,750 Total 2,500 Formosa 2,250 Axiall / Lotte 2,000 Sasol 1,750 Includes Actual Shintech Rejection 1,500 Indorama 1,250…
  16. April 2018 Mizhuno Energy Summit – Enterprise Products Partners LP – slide 16
    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…
  17. April 2018 Mizhuno Energy Summit – Enterprise Products Partners LP – slide 17
    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…
  18. April 2018 Mizhuno Energy Summit – Enterprise Products Partners LP – slide 18
    U.S. LPG SUPPLY GROWTH WILL REQUIRE EXPORTS MBPD 4,000 1 MMBPD looking for 3,500 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 2020 2021 2022 (1) LPG…
  19. April 2018 Mizhuno Energy Summit – Enterprise Products Partners LP – slide 19
    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…
  20. April 2018 Mizhuno Energy Summit – Enterprise Products Partners LP – slide 20
    GROWTH PROJECTS UPDATE ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
  21. April 2018 Mizhuno Energy Summit – Enterprise Products Partners LP – slide 21
    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%…
  22. April 2018 Mizhuno Energy Summit – Enterprise Products Partners LP – slide 22
    ENTERPRISES PERMIAN CRUDE PIPELINE From Permian Supply Hub to Multiple Markets O K L A H O M A Midland-to-Houston pipeline system: Cushing DIRECT ROUTE FROM MIDLAND TO THE TEXAS GULF COAST NEW MEXICO 416-mile, 24 pipeline from…
  23. April 2018 Mizhuno Energy Summit – Enterprise Products Partners LP – slide 23
    PERMIAN NGL EXPANSION PROJECTS Pipelines and Processing GAS PROCESSING PLANT UNDERGROUND LIQUIDS STORAGE FRACTIONATOR Shin Oak NGL Pipeline: SHIN OAK OTHER ENTERPRISE PIPELINES Rerouted through the heart of the Permian basin 24…
  24. April 2018 Mizhuno Energy Summit – Enterprise Products Partners LP – slide 24
    ENTERPRISE MONT BELVIEU Expanding NGL and Petrochemical Services Businesses 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…
  25. April 2018 Mizhuno Energy Summit – Enterprise Products Partners LP – slide 25
    PDH: FUNDAMENTALS REMAIN STRONG Production began ramping up in 1Q 2018 with 65% utilization rate in March First PDH PGP sales were December 2017 100% of the capacity is contracted Propane plus insures cash flow without market…
  26. April 2018 Mizhuno Energy Summit – Enterprise Products Partners LP – slide 26
    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…
  27. April 2018 Mizhuno Energy Summit – Enterprise Products Partners LP – slide 27
    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…
  28. April 2018 Mizhuno Energy Summit – Enterprise Products Partners LP – slide 28
    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…
  29. April 2018 Mizhuno Energy Summit – Enterprise Products Partners LP – slide 29
    FINANCIAL OVERVIEW ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
  30. April 2018 Mizhuno Energy Summit – Enterprise Products Partners LP – slide 30
    STRONG FINANCIAL RESULTS Vs. 2017 2016 Distributions Declared Per Key Drivers 1.6825 +5% Unit Asset Footprint Gross Operating Margin (1) 5.7B +8% Highly integrated Diversified Distributable Cash Flow Majority of assets backed…
  31. April 2018 Mizhuno Energy Summit – Enterprise Products Partners LP – slide 31
    CONSISTENT FINANCIAL RESULTS THROUGH CYCLES MLP Equities: Correlation to Crude EPD Has Delivered Consistent Results Throughout Cycles in the Downturn, Disconnected in the Upturn 160 1,600 400% 140 1,400 350% 120 1,200 300% 100…
  32. April 2018 Mizhuno Energy Summit – Enterprise Products Partners LP – slide 32
    STABLE DCF METRICS THROUGH A COMMODITY CYCLE 120 2.50 100 2.06 2.00 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…
  33. April 2018 Mizhuno Energy Summit – Enterprise Products Partners LP – slide 33
    EPD HAS DELIVERED CONSISTENT RETURNS 13.3% 14.0% 12.9% 13.1% 100 12.5% 11.8% 12.0% 11.6% 12.0% 11.4% 11.2% 11.0% 10.8% 10.9% 10.7% 10.5% 10.4% 10.2% 80 9.7% 10.0% 9.5% 8.7% 8.0% Unlevered ROIC % 60 6.9% 6.7%…
  34. April 2018 Mizhuno Energy Summit – Enterprise Products Partners LP – slide 34
    EPDS PATH TO SELF-FUNDING Structured For and Executing Through Cycles ( in Billions) 4.0 3.9 Growth CAPEX & Acquisitions funded by Equity & Retained DCF 3.5 (1) 83% 3.2 3.0 3.0 3.1 2.5 70% ATM 62% 2.0 ATM 50% ATM 1.5…
  35. April 2018 Mizhuno Energy Summit – Enterprise Products Partners LP – slide 35
    FUNDING GROWTH WITH FINANCIAL DISCIPLINE 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 4.2 4.2x 3.9 3.94.0x(2) 4.1x 4.0 3.6 4.1x(3) 3.7…
  36. April 2018 Mizhuno Energy Summit – Enterprise Products Partners LP – slide 36
    STRENGTHENING DEBT PORTFOLIO 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% 18.0 Cost of Debt 17.7 6.0% 49.9% 17.0 17.3…
  37. April 2018 Mizhuno Energy Summit – Enterprise Products Partners LP – slide 37
    CLOSING COMMENTS Overall macro environment is improving Growing demand for U.S. hydrocarbons from international markets Commodity prices improving; WTI prices had a 29% CAGR in 2 years; averaging 34/bbl in March 2016 to 63/bbl March…
  38. April 2018 Mizhuno Energy Summit – Enterprise Products Partners LP – slide 38
    NONGAAP RECONCILIATIONS ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
  39. April 2018 Mizhuno Energy Summit – Enterprise Products Partners LP – slide 39
    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…
  40. April 2018 Mizhuno Energy Summit – Enterprise Products Partners LP – slide 40
    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…
  41. April 2018 Mizhuno Energy Summit – Enterprise Products Partners LP – slide 41
    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…
  42. April 2018 Mizhuno Energy Summit – Enterprise Products Partners LP – slide 42
    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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