ENERGY TRANSFER EQUITY & ENERGY TRANSFER PARTNERS Barclays CEO Energy-Power Conference September 5, 2018
ETP HIGHLIGHTS
ETP KEY INVESTMENT HIGHLIGHTS Well Positioned Assets Growth From Organic Solid Financials Investments Fully integrated platform Completing multi-year Stable cash flow profile spanning entire midstream capex program with minimal…
RECENT HIGHLIGHTS ETP Adjusted EBITDA (consolidated): 2.05 billion, up more than 30% year-over-year Distributable Cash Flow attributable to the partners of ETP: 1.32 billion, up nearly 40% year-over-year ETE Distributable Cash Flow,…
SIGNIFICANT GEOGRAPHIC FOOTPRINT ACROSS THE FAMILY Recently In-service & Asset Overview Announced Growth Projects Marcus Hook Lake Charles LNG Bayou Bridge Energy Transfer Assets Eagle Point Dakota Access Pipeline Rover…
A TRULY UNIQUE FRANCHISE Natural NGLs Crude Gas Oil Gather 11.6 million Fractionate One of the largest Transport 19 Transport 4.2 More than 7.9 billion mmbtu/d of gas & 470,000 bbls/d of planned LNG million mmbtu/d of…
FULLY INTEGRATED PLATFORM SPANNING THE ENTIRE MIDSTREAM VALUE CHAIN Involvement in Major Midstream Themes Across the Best Basins and Logistics Hubs Franchise Strengths Opportunities Access to multiple shale plays, storage…
FULLY INTEGRATED SERVICES BY REGION ETP Services By Region Midstream Natural Gas Liquids Crude Interstate Intrastate Bakken Marcellus/Utica MidCon/Panhandle North Texas Permian Basin Ark-La-Tex Eagle Ford/SE…
ETP ASSETS ALIGNED WITH MAJOR U.S. DRILLING REGIONS ETP Rig Count Vs. Total US Rig Count ETP Rig Count Vs. Lower 48 US Rig Count Rigs: 59 Rigs: 37 Rigs: 99 Rigs: 12 Rigs: 443 Rigs: 52 Significant growth…
FULLY INTEGRATED MIDSTREAM/LIQUIDS PLATFORM ACROSS NORTH AMERICA The ability to integrate an end-to-end liquids solution will better serve customers and alleviate bottlenecks currently faced by producers Marcus Hook: The future…
GROWTH FROM ORGANIC INVESTMENTS
ORGANIC GROWTH ENHANCES THE COMBINED ENTITYS STRONG FOOTHOLD IN THE MOST PROLIFIC PRODUCING BASINS 2017 Bakken Crude Pipeline (1) 2013 Mariner West 2014 Mariner East 1 - Propane Active in 9 of the top 10 basins by active 2015…
ETP PROJECTS PROVIDE VISIBILITY FOR FUTURE EBITDA GROWTH TPP CTP Bakken Ramping Up Arrowhead PE3 Phase I Rebel II Processing Plant ETP has a significant number of Old Ocean Pipeline growth projects coming online that Red…
FORESEE SIGNIFICANT EBITDA GROWTH IN 2018 FROM COMPLETION OF PROJECT BACKLOG Project Description Project Timing Trans-Pecos & Comanche Collective 337 miles of natural gas pipelines with 2.5 Bcf/d capacity in the Permian In Service Q1…
CRUDE OIL SEGMENT-BAKKEN PIPELINE PROJECT Project Details Dakota Access Pipeline connects Bakken production to Patoka Hub, IL, with interconnection to Energy Transfer Crude Oil Pipeline (Trunkline conversion) to reach 1,172 miles…
CRUDE OIL SEGMENT PERMIAN EXPRESS PROJECTS Permian Crude Projects Permian Express 3 Expected to provide Midland & Delaware Basin producers new crude oil takeaway capacity (utilizing existing pipelines) from this rapidly growing…
CRUDE OIL SEGMENT GULF COAST PARTNERS PIPELINE Permian Gulf Coast Pipeline Permian Gulf Coast Pipeline JV Announced Joint Venture with Magellan Midstream, MPLX and Delek US Holdings to construct crude pipeline to transport crude…
CRUDE OIL SEGMENT - BAYOU BRIDGE PIPELINE PROJECT Project Details Bayou Bridge Pipeline Map Joint venture between Phillips 66 Partners (40%) and ETP (60%, operator) 30 Nederland to Lake Charles segment went into service in April…
NGL & REFINED PROJECTS SEGMENT: MARINER EAST SYSTEM A comprehensive Marcellus Shale solution reaching local, regional and international markets Will transport Natural Gas Liquids from OH / Western PA to the Marcus Hook Industrial…
MIDSTREAM SEGMENT: PERMIAN BASIN INFRASTRUCTURE BUILDOUT ETP is nearing capacity in both the Delaware and Midland Basins due to continued producer demand and strong growth outlook in the Permian As a result of this demand, ETP has…
MIDSTREAM SEGMENT: REVOLUTION SYSTEM PROJECT Project Details Revolution Project Map System is located in Pennsylvanias Marcellus/Upper Devonian Shale rich-gas area Rich-gas, complete solution system Currently 20 miles of 16…
INTERSTATE SEGMENT: MARCELLUS/UTICA ROVER PIPELINE Project Details Rover Project Map Sourcing natural gas from the Marcellus and Utica shales Connectivity to numerous markets in the U.S. and Canada Midwest: Panhandle Eastern and…
SOLID FINANCIALS
PRIMARILY FEE-BASED BUSINESS MIX Stability of Cash Flows Q2 2018 Segment Margin by Segment Midstream: Approximately 80% fee-based margins from All Other minimum volume commitment, acreage dedication and 3% throughput-based…
STRONG FOCUS ON THE BALANCE SHEET AND LIQUIDITY POSITION Focus on liquidity and the balance sheet Improving leverage metrics Liquidity update: December 2017, the Partnership entered into a new 4 billion 5- Further year revolving…
ETE - ETP MERGER OVERVIEW
TRANSACTION OVERVIEW Energy Transfer Equity, LP (ETE) and Energy Transfer Partners, LP (ETP) have entered into a merger agreement providing for the acquisition of ETP by ETE for 27 billion in ETE units 1.280x ETE common units for…
STRATEGIC RATIONALE SIMPLIFIES Transaction will simplify Energy Transfers corporate structure OWNERSHIP Further aligns economic interests within the Energy Transfer family STRUCTURE Responsive to investor sentiment regarding…
ILLUSTRATIVE TRANSACTION STRUCTURE 1 ETE acquires all of the outstanding ETP common units (excluding units owned by ETE or its subsidiaries) in a unit-for-unit exchange at a fixed exchange ratio of 1.280x LE GP Management / Public…
ENHANCED PRO FORMA BALANCE SHEET AND LIQUIDITY POSITION CONSERVATIVE AND FLEXIBLE FINANCIAL POLICY DEBT EXCHANGE OVERVIEW Expect to maintain ETE distribution per unit at current level Meaningfully higher retained cash flow to…
ETE CLASS A UNIT OVERVIEW Under the ETE partnership agreement, the general partner of ETE, LE GP, has a contractual right to purchase common units from ETE whenever ETE issues common units so that LE GP can maintain its and its…
KEY TAKEAWAYS Diversified business model, together with the geographical diversity of our assets, continues to Business allow our businesses to demonstrate resiliency. The underlying fundamentals of our business Diversity are strong…
APPENDIX
CRUDE OIL SEGMENT Crude Oil Pipelines Crude Oil Acquisition & Marketing 9,360 miles of crude oil trunk and gathering lines located in the Southwest and Crude truck fleet of approximately 370 trucks Midwest United States Purchase…
CRUDE OIL SEGMENT - PERMIAN EXPRESS PARTNERS Permian Express Partners Joint Venture Details Strategic joint venture with ExxonMobil (ETP owns 88% and is the operator) Combines key crude oil pipeline network of both companies and…
NGL & REFINED PRODUCTS SEGMENT NGL Storage Fractionation NGL Pipeline Transportation TET Mont Belvieu Storage Hub 50 million 4 Mont Belvieu fractionators (420+ Mbpd) 4,300 miles of NGL Pipelines throughout Texas and barrels NGL…
MIDSTREAM ASSETS Midstream Asset Map Midstream Highlights Volume growth in key regions: Q1 2018 gathered volumes averaged 11.3 million mmbtu/d, and NGLs produced were 503,000 bbls/d, both up over Q1 2017 Permian Capacity…
INTERSTATE PIPELINE ASSETS Interstate Asset Map Interstate Highlights Our interstate pipelines provide: Stability Approximately 95% of revenue is derived from fixed reservation fees Diversity Rover Access to multiple shale…
INTRASTATE PIPELINE ASSETS Intrastate Asset Map Intrastate Highlights Continue to expect volumes to Mexico to grow, particularly with the startup of Trans-Pecos and Comanche Trail in Q1 2017, which will result in increased demand…
INTRASTATE SEGMENT: MEXICO (CFE) Waha Header System 6 Bcf/d Header System Will connect to: Trans-Pecos & Comanche Trail Pipelines ETPs vast interstate and Comanche Trail Pipeline intrastate pipeline network Multiple 3rd party…
ETP NON-GAAP FINANCIAL MEASURES 42
ETP NON-GAAP FINANCIAL MEASURES Segment Margin is a non-GAAP financial measure and is presented herein to assist in the analysis of segment operating results and particularly to facilitate an understanding of the impacts that…
ETE NON-GAAP FINANCIAL MEASURES 2016 2017 2018 Full Year Q1 Q2 Q3 Q4 YTD Q1 Q2 YTD Net income attributable to partners 995 239 212 252 251 954 363 355 718 Equity in earnings related to investments in ETP, Sunoco LP and USAC (1,374)…
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