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Citi 1x1 MLP Infrastructure Conference – Enterprise Products Partners LP

Enterprise Products Partners LP · Aug 15, 2018 · 43 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. Citi 1x1 MLP Infrastructure Conference – Enterprise Products Partners LP – slide 1
    ENTERPRISE PRODUCTS PARTNERS L.P. CITI 1X1 MLP / MIDSTREAM INFRASTRUCTURE CONFERENCE August 1516, 2018 ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
  2. Citi 1x1 MLP Infrastructure Conference – 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. Citi 1x1 MLP Infrastructure Conference – Enterprise Products Partners LP – slide 3
    EPDS UNIQUE ADVANTAGE Financially Strong and Supportive GP Supportive and unlevered GP with EPCO & significant ownership Affiliates EPCO and affiliates own 32% of LP units 100% Eliminated 50% IDRs in 2002 for General Public…
  4. Citi 1x1 MLP Infrastructure Conference – 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…
  5. Citi 1x1 MLP Infrastructure Conference – Enterprise Products Partners LP – slide 5
    NATURAL GAS GATHERING AND PROCESSING Leverage to Improving Commodity Prices Total GOM 4,387 4,814 5,205 5,339 5,248 5,680 3,064 1,350 30% 27% 1,200 25% 1,050 900 17% 20% % of Total GOM 15% in Millions 750 15% 600…
  6. Citi 1x1 MLP Infrastructure Conference – Enterprise Products Partners LP – slide 6
    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 (1) Max…
  7. Citi 1x1 MLP Infrastructure Conference – Enterprise Products Partners LP – slide 7
    ENTERPRISE EXPORTS EXPECTED TO CONTINUE TO INCREASE 2,000 1,800 1,600 645 1,400 1,200 HURRICANE MBPD HARVEY 1,000 260 800 600 660 400 200 0 NGL Petchem & Ref. Products Crude Sources: Waterborne (IHS),…
  8. Citi 1x1 MLP Infrastructure Conference – Enterprise Products Partners LP – slide 8
    OFFSHORE CRUDE OIL EXPORT TERMINAL Loaded 2nd VLCC at Texas City Plans underway to develop an offshore crude oil export terminal off Texas Gulf Coast capable of fully loading VLCCs VLCC has capacity of 2 million barrels…
  9. Citi 1x1 MLP Infrastructure Conference – Enterprise Products Partners LP – slide 9
    MIDSTREAM ENERGY FUNDAMENTALS ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
  10. Citi 1x1 MLP Infrastructure Conference – Enterprise Products Partners LP – slide 10
    U.S. NATURAL GAS SUPPLY POTENTIAL ASSUMING SUFFICIENT MARKETS (Bcf/d) 1.0 AK and CA 0.7 0.6 0.5 0.5 ROCKIES 0.0 15 Current 2020 2022 10 13 13 13 5 0 Current 2020 2022 40 APPALACHIAN 30 37 33 20 28 10 0 Current 2020…
  11. Citi 1x1 MLP Infrastructure Conference – Enterprise Products Partners LP – slide 11
    OIL AND CONDENSATES: MORE THAN 80% OF GROWTH IS FROM PERMIAN AND EAGLE FORD AK and CA 1,000 750 500 825 653 577 250 2,500 ROCKIES 0 2,000 Current 2020 2022 2,103 2,233 2,233 1,500 1,000 500 0 Current 2020 2022 150…
  12. Citi 1x1 MLP Infrastructure Conference – Enterprise Products Partners LP – slide 12
    RIG COUNTS: 58% OF RIGS ARE IN PERMIAN, EAGLE FORD AND HAYNESVILLE Rig Counts 1,200 1,000 480 800 600 80 48 400 440 200 0 All Others Haynesville Eagle Ford Permian Source: Baker Hughes ALL RIGHTS…
  13. Citi 1x1 MLP Infrastructure Conference – Enterprise Products Partners LP – slide 13
    DUCS: 65% OF ALL DUCs ARE IN PERMIAN, EAGLE FORD AND HAYNESVILLE Drilled Uncompleted Wells 8,000 7,000 3,203 6,000 5,000 4,000 1,485 3,000 186 2,000 2,898 1,000 All Others Haynesville Eagle Ford Permian…
  14. Citi 1x1 MLP Infrastructure Conference – Enterprise Products Partners LP – slide 14
    PERMIAN CRUDE OIL BALANCES Using Capacities at 100% Load Factor 8,500 Midland to Nederland (Open Season) 8,000 EPD NGL Conversion 7,500 (Potential) 7,000 Epic to Corpus 6,500 Gray Oak 6,000 5,500 Cactus 2 5,000 Basin…
  15. Citi 1x1 MLP Infrastructure Conference – Enterprise Products Partners LP – slide 15
    TO MATCH REFINERS PREFERRED FEED SLATE: Expect Light Oil Exports & Heavy / Medium Imports BY 2022The U.S. is expected to export 5 MMBPD, which would represent over 5% of global oil demand (90 MMBPD) MMBPD Potential Exports: 24…
  16. Citi 1x1 MLP Infrastructure Conference – Enterprise Products Partners LP – slide 16
    NGLs: ABOUT 70% OF GROWTH IS FROM PERMIAN AND EAGLE FORD 100 AK and CA 75 92 50 79 74 25 0 1500 ROCKIES Current 2020 2022 1000 1,157 1,006 962 500 0 MBPD TOTAL SUPPLY(1) Current 2020 2022 1,500 APPALACHIAN 6,600 7,125…
  17. Citi 1x1 MLP Infrastructure Conference – Enterprise Products Partners LP – slide 17
    ETHANE TO POLYETHYLENE FUNDAMENTALS REMAIN STRONG Indicative US Ethylene Cracker Profit Margin by Feedstock Polyethylene vs. Ethylene Prices 75 1.00 HDPE + LDPE is 60% of production 0.90 60 0.80 Margin Cents per Pound 45…
  18. Citi 1x1 MLP Infrastructure Conference – Enterprise Products Partners LP – slide 18
    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…
  19. Citi 1x1 MLP Infrastructure Conference – Enterprise Products Partners LP – slide 19
    ETHYLENE AND 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…
  20. Citi 1x1 MLP Infrastructure Conference – Enterprise Products Partners LP – slide 20
    DOCK CAPACITY EXPANSIONS WILL BE REQUIRED MBPD 4,500 1.5 MMBPD looking 4,000 for a home 3,500 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 2023 2024 2025 LPG…
  21. Citi 1x1 MLP Infrastructure Conference – Enterprise Products Partners LP – slide 21
    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…
  22. Citi 1x1 MLP Infrastructure Conference – Enterprise Products Partners LP – slide 22
    GROWTH PROJECTS UPDATE ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
  23. Citi 1x1 MLP Infrastructure Conference – Enterprise Products Partners LP – slide 23
    WE CONTINUE TO GROW 5.2B of Major Capital Projects with More to Come NatGas 4% Orla III Gas Plant iBDH PDH facility Shin Oak pipeline MidlandtoSealy PL Ethylene export dock 5.0 Petchem Front Range & TX Express exp. 4.5 31% NGL…
  24. Citi 1x1 MLP Infrastructure Conference – Enterprise Products Partners LP – slide 24
    ENTERPRISES PERMIAN CRUDE PIPELINE From Permian Supply Hub to Multiple Markets MidlandtoHouston pipeline system: 416mile, 24 pipeline from Midland to Sealy with Cushing a 575 MBPD max capacity Integrated with existing 1+ MMBPD…
  25. Citi 1x1 MLP Infrastructure Conference – Enterprise Products Partners LP – slide 25
    PERMIAN NGL EXPANSION PROJECTS Pipelines and Processing GAS PROCESSING PLANT UNDERGROUND LIQUIDS STORAGE FRACTIONATOR Shin Oak NGL Pipeline SHIN OAK OTHER ENTERPRISE PIPELINES 658mile, 24 new build pipeline, scheduled…
  26. Citi 1x1 MLP Infrastructure Conference – Enterprise Products Partners LP – slide 26
    ENTERPRISE MONT BELVIEU Frac IX and PDH facilities began commercial service 2Q18 Contributed 46 million gross operating margin iBDH 2 PDH & 26 MBPD in 2Q 2018 PDH Splitter Frac IX Frac IV, V, VI, VII & VIII iBDH 1 & MTBE…
  27. Citi 1x1 MLP Infrastructure Conference – Enterprise Products Partners LP – slide 27
    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…
  28. Citi 1x1 MLP Infrastructure Conference – Enterprise Products Partners LP – slide 28
    iBDH The Other DeHydrogenation Project Facility rendering Capacity 937 million pounds of isobutylene annually (425,000 metric tons) Doubles Enterprises capacity Consumes 30 MBPD butane Schedule Permit received last Fall…
  29. Citi 1x1 MLP Infrastructure Conference – Enterprise Products Partners LP – slide 29
    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…
  30. Citi 1x1 MLP Infrastructure Conference – Enterprise Products Partners LP – slide 30
    FINANCIAL OVERVIEW ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
  31. Citi 1x1 MLP Infrastructure Conference – Enterprise Products Partners LP – slide 31
    FINANCIAL RESULTS IN PERSPECTIVE 2Q 2Q Market Measures 2015 2018 Change Mr. Market does not always act rationally Despite improving crude, MLPs are still lagging EPD Unit Price (July 31) 28.33 29.00 +2% In large part due to poor…
  32. Citi 1x1 MLP Infrastructure Conference – Enterprise Products Partners LP – slide 32
    CONSISTENT FINANCIAL RESULTS THROUGH CYCLES EPD Has Delivered Consistent Results EPDs 2Q Price Reflects Improved Sentiment Throughout Cycles in Millions 400% 160 1,750 350% 140 1,500 300% 120 1,250 250% 100 1,000 200% 80…
  33. Citi 1x1 MLP Infrastructure Conference – Enterprise Products Partners LP – slide 33
    STABLE DCF METRICS THROUGH A COMMODITY CYCLE 120 2.50 100 2.06 2.05 2.00 1.97 1.99 1.4x 1.93 1.2x 1.4x 1.3x 80 1.2x Operational DCF/Unit 1.50 /bbl 60 1.29 1.5x 1.00 40 0.50 20 0.00 2013 2014 2015 2016…
  34. Citi 1x1 MLP Infrastructure Conference – Enterprise Products Partners LP – slide 34
    EPDS PATH TO EQUITY SELFFUNDING Structured For and Executing Through Cycles 4.0 3.9 3.5 Growth CAPEX & Acquisitions funded by 83% 3.2 (1) 3.1 3.0 3.0 Equity & Retained DCF 2.5 70% ( in Billions) ATM 62% 2.0…
  35. Citi 1x1 MLP Infrastructure Conference – 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 4.0x(2) 4.1x 4.0 4.1x (3) 3.2 3.7…
  36. Citi 1x1 MLP Infrastructure Conference – Enterprise Products Partners LP – slide 36
    STRENGTHENING DEBT PORTFOLIO 24.0 Billion Notes Issued 21.0 89.3% Fixed Rate Debt 8.0% 2009February 2018 20.0 11.0% 19.4 7.0% 19.0 Average Maturity Years 18.8 10.5% 18.0 Cost of Debt 17.7 6.0% 17.3 17.6 17.0 17.3…
  37. Citi 1x1 MLP Infrastructure Conference – 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 averaged 67.88/bbl in 2Q18 Ethane prices averaged 0.29/gallon in 2Q 2018…
  38. Citi 1x1 MLP Infrastructure Conference – Enterprise Products Partners LP – slide 38
    NONGAAP RECONCILIATIONS AND APPENDIX ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
  39. Citi 1x1 MLP Infrastructure Conference – 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. Citi 1x1 MLP Infrastructure Conference – 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 assess:…
  41. Citi 1x1 MLP Infrastructure Conference – Enterprise Products Partners LP – slide 41
    DISTRIBUTABLE CASH FLOW Distributable cash flow is an important nonGAAP 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. Citi 1x1 MLP Infrastructure Conference – Enterprise Products Partners LP – slide 42
    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)…
  43. Citi 1x1 MLP Infrastructure Conference – Enterprise Products Partners LP – slide 43
    CONTACT INFORMATION Randy Burkhalter Vice President, Investor Relations (713) 3816812 rburkhaltereprod.com Jackie Richert Director, Investor Relations (713) 3813920 jmricherteprod.com ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS…

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