Barclays CEO Energy Power Conference – Enterprise Products Partners LP

Enterprise Products Partners LP · Sep 5, 2018 · 43 slides

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ENTERPRISE PRODUCTS PARTNERS L.P. BARCLAYS CEO ENERGYPOWER CONFERENCE September 5, 2018 Randy Fowler President and 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 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 no…
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 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% 15% % of Total GOM in Millions 750 15% 600…
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…
ENTERPRISE EXPORTS EXPECTED TO CONTINUE TO INCREASE 2,000 1,800 1,600 645 1,400 1,200 HURRICANE HARVEY MBPD 1,000 260 800 600 660 400 200 0 NGL Petchem & Ref. Products Crude Sources: Waterborne (IHS), EPD…
OFFSHORE CRUDE OIL EXPORT TERMINAL Plans underway to develop an offshore crude oil export terminal off Texas Gulf Coast capable of fully loading VLCCs VLCCs have a capacity of 2 million barrels Efficient and cost-effective solution…
MIDSTREAM ENERGY FUNDAMENTALS ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
RIG COUNTS: 58% OF RIGS ARE IN PERMIAN, EAGLE FORD AND HAYNESVILLE Rig Counts 1,200 1,000 486 800 600 79 48 400 442 200 0 All Others Haynesville Eagle Ford Permian Source: Baker Hughes ALL RIGHTS RESERVED.…
DUCS: 65% OF ALL DUCs ARE IN PERMIAN, EAGLE FORD AND HAYNESVILLE Drilled Uncompleted Wells 8,000 7,000 3,470 6,000 5,000 4,000 1,512 3,000 182 2,000 2,869 1,000 - All Others Haynesville Eagle Ford Permian…
U.S. OIL AND GAS SUPPLY EXPECTED TO CONTINUE GROWING Dry Natural Gas Production (Bcf/d) Oil & Condensate Production (MMBPD) 120 20 100 110 16 101 80 93 16 79 12 14 60 12 59 8 10 40 20 4 5 - - 2010 2018 2020 2022 2025 2010…
PERMIAN BASIN PIPELINE BALANCES Crude Oil Takeaway Permian Crude Oil Balances (Using Capacities at 100% Load Factor) 8,000 Plains: Cactus 2 Expansion* * Currently under construction End Market MBPD Local Refining Capacity EPD: NGL…
U.S. PROJECTED TO BECOME A MAJOR CRUDE EXPORTER MMBPD 26 24 Destined for Export 22 20 US Prod - Light 18 2017 U.S. Demand for Crude: 16.8 US Prod - Cond 16 LIGHT OIL US Prod - Medium 14 US Prod - Heavy 12 10 Imports - Canada…
ETHANE TO POLYETHYLENE MARGINS 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 0.70 per…
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 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…
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…
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 5.7B 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. 4.6 4.5 29%…
ENTERPRISES PERMIAN CRUDE PIPELINE From Permian Supply Hub to Multiple Markets Midland-to-Houston pipeline system: 416-mile, 24 pipeline from Midland to Sealy with Cushing a 575 MBPD max capacity Integrated with existing 1+ MMBPD…
PERMIAN NGL EXPANSION PROJECTS Pipelines and Processing GAS PROCESSING PLANT UNDERGROUND LIQUIDS STORAGE FRACTIONATOR Shin Oak NGL Pipeline SHIN OAK OTHER ENTERPRISE PIPELINES 658-mile, 24 new build pipeline, scheduled…
ENTERPRISE MONT BELVIEU Frac IX and PDH facilities began commercial service 2Q18 PDH contributed 46 million to gross operating margin on 26 MBPD in 2Q 2018 iBDH 2 PDH & PDH Splitter Frac X Frac IX Frac IV, V, VI, VII & VIII iBDH…
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 MBPD butane Schedule Permit received last Fall Major…
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
MARKED FUNDAMENTAL IMPROVEMENT SINCE 2015 2015 2018 Change NGL Fractionation (MBPD): 1H Operating Measures 810 876 8% Liquid & Nat. Gas Equivalent Pipeline Transportation (MBPD): 1H 8,025 9,712 21% NGL, Crude, Refined…
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…
STABLE DCF METRICS THROUGH A COMMODITY CYCLE 120 2.50 100 2.06 2.05 2.00 1.4x 1.99 1.97 1.93 1.2x 1.3x 1.4x 1.2x Operational DCF/Unit 80 1.50 /bbl 60 1.29 1.5x 1.00 1.01 40 1.2x 0.50 20 - 0.00 2013…
EPDS PATH TO EQUITY SELF-FUNDING Structured For and Executing Through Cycles 4.0 3.9 3.5 83% Growth CAPEX & Acquisitions funded by 3.2 (1) 3.1 3.0 3.0 Equity & Retained DCF 2.5 70% ( in Billions) ATM 62% 2.0…
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 4.4x Debt / Adjusted EBITDA 4.3x 5.0 in Billions 4.2 4.2x 3.9 4.0x(2) 4.1x 4.0 4.1x 3.2 3.7 1.0 3.1…
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…
EPD FINANCIAL METRICS COMPARISON S&P 500 ENTERPRISE PRODUCTS PARTNERS Largest Energy Companies by Market Capitalization 1 EXXON MOBIL CORP 340,885 Ticker: EPD Date: 8/28/2018 2 CHEVRON CORP 229,612 Ranking in S&P 500 Index 3…
MORE GROWTH ON THE HORIZON Potential Opportunities Producer driven projects Additional gas processing plants Add natural gas, NGL and crude pipeline capacity Convert NGL pipeline to crude service Increase crude storage capacity in…
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…
NON-GAAP 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 assess:…
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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