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…
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…
MACRO ENERGY THEMES Natural Gas Basis Spread /MMBtu 2.0 HSC vs. Permian Transitory 13 Years 1.6 Production growth continues to surprise to the 1.2 upside 0.8 0.4 DUCs, especially in the Permian, continue to grow 0.0…
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…
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 Source:…
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…
MONT BELVIEU FRACTIONATION CAPACITY GETTING TIGHT (MBbls) 6,000 5,000 4,000 3,000 2,000 1,000 - Existing Potential New Frac Capacity Cummulative new supply This chart measures total supply vs. Mont Belvieu Frac…
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…
LPG SUPPLY TRENDING LONG Dock Capacity Additions Will Be Required to Balance Market 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…
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 -…
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…
PERMIAN EXPANSION PROJECTS 5 Billion of Capital Investments...more to come NGL Projects South Eddy and Waha Gas Plants and related pipelines Added 350 MMcf/d capacity Orla Gas Plants (I, II (scheduled 4Q 2018) and III (scheduled…
LPG EXPORTS: OPPORTUNITY FOR EXPANSION EHT LPG Potential Expansion Capacity could increase 175 MBPD or 5 MMBbls/month 30% expansion Brings total export capacity to 700 MBPD, or 21 MMBbls/month Timeline would be 1824…
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…
FINANCIAL SECTION ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
EPD HAS DELIVERED CONSISTENT RETURNS Structured For and Executing Through Cycles 13.3% 14.0% 12.9% 13.1% 12.5% 100 12.0% 11.8% 11.6% 11.4% 11.2% 12.0% 10.8% 11.0% 10.5% 10.7% 10.2% 80 10.0% Unlevered ROIC % 8.0% 60…
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…
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…
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…
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