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RBC Capital Markets Midstream Conference – Enterprise Products Partners LP

Enterprise Products Partners LP · Nov 14, 2018 · 49 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. RBC Capital Markets Midstream Conference – Enterprise Products Partners LP – slide 1
    ENTERPRISE PRODUCTS PARTNERS L.P. RBC CAPITAL MARKETS MIDSTREAM CONFERENCE November 1314, 2018 Randy Fowler President and Chief Financial Officer ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
  2. RBC Capital Markets Midstream 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. RBC Capital Markets Midstream Conference – Enterprise Products Partners LP – slide 3
    EPDS UNIQUE ADVANTAGE Financially Strong and Supportive GP Supportive and unlevered GP with EPCO & significant ownership Affiliates 100% EPCO and affiliates own 32% of LP units Eliminated 50% IDRs in 2002 for Public General no…
  4. RBC Capital Markets Midstream 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. RBC Capital Markets Midstream 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 5,188 1,350 30% 27% 1,200 25% 1,050 900 17% 20% % of Total GOM 15% in Millions 750 12% 15%…
  6. RBC Capital Markets Midstream 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. RBC Capital Markets Midstream Conference – Enterprise Products Partners LP – slide 7
    ENTERPRISE EXPORTS EXPECTED TO CONTINUE TO INCREASE 2,000 1,800 1,600 1,400 673 1,200 HURRICANE MBPD HARVEY 1,000 376 800 600 400 717 200 0 NGL Petchem & Ref. Products EPD Crude Exports Sources:…
  8. RBC Capital Markets Midstream Conference – Enterprise Products Partners LP – slide 8
    MIDSTREAM ENERGY FUNDAMENTALS ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
  9. RBC Capital Markets Midstream Conference – Enterprise Products Partners LP – slide 9
    MACRO ENERGY THEMES Natural Gas Basis Spread /MMbtu HSC vs. Permian 0.0 Transitory 13 Years 0.5 Production growth continues to surprise to the 1.0 1.5 upside 2.0 DUCs, especially in the Permian, continue to grow 2.5…
  10. RBC Capital Markets Midstream Conference – Enterprise Products Partners LP – slide 10
    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 16 80 93 79 12 14 60 12 59 8 10 40 20 4 5 2010 2018 2020 2022 2025…
  11. RBC Capital Markets Midstream Conference – Enterprise Products Partners LP – slide 11
    RIG COUNTS: 58% OF RIGS ARE IN PERMIAN, EAGLE FORD AND HAYNESVILLE Rig Counts 1,200 1,000 800 487 600 79 51 400 200 450 0 All Others Haynesville Eagle Ford Permian Source: Baker Hughes ALL RIGHTS RESERVED.…
  12. RBC Capital Markets Midstream Conference – Enterprise Products Partners LP – slide 12
    DUCS: 65% OF ALL DUCs ARE IN PERMIAN, EAGLE FORD AND HAYNESVILLE Drilled Uncompleted Wells 9,000 8,000 7,000 3,722 6,000 5,000 4,000 1,584 3,000 199 2,000 2,884 1,000 All Others Haynesville Eagle Ford Permian…
  13. RBC Capital Markets Midstream Conference – Enterprise Products Partners LP – slide 13
    PERMIAN BASIN PIPELINE BALANCES Crude Oil Takeaway Using Capacities at 100% Load Factor 8,000 ETP: Midland to * Currently under construction Nederland* Local Refining Plains: Cactus 2 End Market MBPD Expansion* Capacity 7,000…
  14. RBC Capital Markets Midstream Conference – Enterprise Products Partners LP – slide 14
    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…
  15. RBC Capital Markets Midstream Conference – Enterprise Products Partners LP – slide 15
    ETHANE TO POLYETHYLENE MARGINS STRONG Indicative U.S. Ethylene Cracker Profit Margin by Feedstock Polyethylene vs. Ethylene Prices (FOB Houston) 75 0.8 HDPE + LDPE is 60% of production 60 Margin Cents per Pound 0.6 45 per…
  16. RBC Capital Markets Midstream Conference – Enterprise Products Partners LP – slide 16
    THE CHEMICALS INDUSTRY IS MAKING LARGE INVESTMENTS BASED ON U.S. SHALES Petchems are now signaling a second wave of new U.S. plants in early 2020s U.S. World Scale Ethylene Plants Under Construction Capacity Ethane Capacity Ethane…
  17. RBC Capital Markets Midstream Conference – Enterprise Products Partners LP – slide 17
    ETHYLENE AND PROPYLENE DEMAND STRONG Growth is Function of Rising Living Standards Approximate 2010 to 2019 Compounded Annual Growth Rates (CAGR) globally: GDP: 3.0% Oil 1.5% Note that most consultants have similar forecasts…
  18. RBC Capital Markets Midstream Conference – Enterprise Products Partners LP – slide 18
    MONT BELVIEU FRACTIONATION CAPACITY GETTING TIGHT MBbls 6,000 5,000 4,000 3,000 2,000 1,000 Existing Potential New Frac Capacity Cumulative New Supply This chart measures total supply vs. Mont Belvieu Frac…
  19. RBC Capital Markets Midstream Conference – Enterprise Products Partners LP – slide 19
    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…
  20. RBC Capital Markets Midstream Conference – Enterprise Products Partners LP – slide 20
    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…
  21. RBC Capital Markets Midstream Conference – Enterprise Products Partners LP – slide 21
    GROWTH PROJECTS UPDATE ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
  22. RBC Capital Markets Midstream Conference – Enterprise Products Partners LP – slide 22
    WE CONTINUE TO GROW 6B of Major Capital Projects with More to Come NatGas 2% Petchem 23% 6.0 PDH facility MidlandtoSealy PL Orla III gas plant iBDH NGL 5.5 Crude 59% Shin Oak pipeline 5.0 Ethylene export dock 16% Front Range…
  23. RBC Capital Markets Midstream Conference – Enterprise Products Partners LP – slide 23
    PERMIAN EXPANSION PROJECTS 6 Billion of Capital Investments...more to come NGL Projects South Eddy and Waha Gas Plants added 350 MMcf/d Orla Gas Plants I&II (inservice) and III (scheduled 2Q 2019) and related gathering 3…
  24. RBC Capital Markets Midstream 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 Western Gas exercised an option for…
  25. RBC Capital Markets Midstream Conference – Enterprise Products Partners LP – slide 25
    LPG EXPORT TERMINAL EXPANSION Expected 2nd Half of 2019 EHT LPG Expansion Capacity expected to increase 175 MBPD or 5 MMBbls/month 30% expansion Brings total export capacity to 700 MBPD, or 21 MMBbls/month Timeline expected 2H…
  26. RBC Capital Markets Midstream Conference – Enterprise Products Partners LP – slide 26
    ENTERPRISE MONT BELVIEU Adding 300 MBPD of Frac Capacity; Expected 2020 iBDH 2 PDH & PDH Splitter Frac IX Frac IV, V, VI, New Frac capacity VII & VIII iBDH 1 & MTBE (BEF) Splitters II & IV Splitter I Frac II & III Isoms…
  27. RBC Capital Markets Midstream 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. RBC Capital Markets Midstream 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. RBC Capital Markets Midstream Conference – Enterprise Products Partners LP – slide 29
    ENTERPRISE ETHYLENE SYSTEM Under Development STORAGE & CONNECTIVITY PIPELINE EXPORT TERMINAL Cavern capacity 600 million lbs. Access to USGC ethylene via Export System capable of Cavern In / Out delivery rates Enterprise Mont…
  30. RBC Capital Markets Midstream Conference – Enterprise Products Partners LP – slide 30
    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 costeffective…
  31. RBC Capital Markets Midstream Conference – Enterprise Products Partners LP – slide 31
    CME / NYMEX HOUSTON WTI FUTURES CONTRACT SPECIFICATIONS AND PHYSICAL DELIVERY POINTS Specifications are reflective of Midland crude, and Cushing Cushing Refinery Export provide a consistent, quality barrel of crude oil…
  32. RBC Capital Markets Midstream Conference – Enterprise Products Partners LP – slide 32
    HOUSTON WTI FUTURES DELIVERY POINT SUPPLY / MARKET CONNECTIVITY KEYSTONE 36 Cushing Moore Rd. Junction Colorado EHSC EHSC 36 BRIDGETEX 20 24 City Magellan EHSC 24 East XOM Crane LONGHORN 18 Houston…
  33. RBC Capital Markets Midstream Conference – Enterprise Products Partners LP – slide 33
    MORE GROWTH ON THE HORIZON Potential Opportunities Producer driven projects Additional gas processing plants Add natural gas, NGL and crude pipeline capacity Increase crude storage capacity in Permian Basin Expand existing and…
  34. RBC Capital Markets Midstream Conference – Enterprise Products Partners LP – slide 34
    FINANCIAL SECTION ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
  35. RBC Capital Markets Midstream Conference – Enterprise Products Partners LP – slide 35
    2018: RECORD RESULTS AND FUNDAMENTAL IMPROVEMENT 2017 2018 Change Operating Measures NGL Fractionation (MBPD): 9 mos. 818 942 +15% Liquid & Natural Gas Equivalent Pipeline Transportation (MBPD): 9 mos. 8,542 9,781 +15%…
  36. RBC Capital Markets Midstream Conference – Enterprise Products Partners LP – slide 36
    CONSISTENT FINANCIAL RESULTS THROUGH CYCLES EPDs 3Q Price Reflects Current Sentiment EPD Has Delivered Consistent Results Throughout Cycles 400% in Millions 350% 160 2,500 140 300% 2,000 120 250% 100 1,500 200% Bbl 80 150% 60…
  37. RBC Capital Markets Midstream Conference – Enterprise Products Partners LP – slide 37
    EPD HAS DELIVERED CONSISTENT RETURNS Structured For and Executing Through Cycles 13.3% 14.0% 12.9% 13.1% 12.5% 12.6% 100 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…
  38. RBC Capital Markets Midstream Conference – Enterprise Products Partners LP – slide 38
    STABLE DCF METRICS THROUGH A COMMODITY CYCLE 120 2.50 100 2.06 2.05 2.00 1.97 1.99 2.00 1.4x 1.93 1.2x 1.4x 1.3x 1.6x 1.2x 80 Operational DCF/Unit 1.50 1.45 1.49 /bbl 60 1.2x 1.2x 1.00 40 0.50 20 0.00…
  39. RBC Capital Markets Midstream Conference – Enterprise Products Partners LP – slide 39
    FUNDING GROWTH WITH FINANCIAL DISCIPLINE Total Growth Capex & Debt Leverage 8.0 7.8 4.6 4.7x 7.0 6.2 4.5x 4.4x 6.0 2.5 Debt / Adjusted EBITDA 4.3x 5.0 in Billions 4.2 4.2x 4.1x 3.9 4.0x(2) 4.1x 4.0 3.2 3.7 1.0…
  40. RBC Capital Markets Midstream Conference – Enterprise Products Partners LP – slide 40
    STRENGTHENING DEBT PORTFOLIO Extending Maturities Without Increasing Costs 27.0 Billion Notes Issued 88.6% Fixed Rate Debt (at 9/30/2018) 2009October 2018 20.0 8.0% 19.4 19.0 18.8 7.0% 12.6% Average Maturity Years 18.0…
  41. RBC Capital Markets Midstream Conference – Enterprise Products Partners LP – slide 41
    EPDS PATH TO EQUITY SELFFUNDING Structured For and Executing Through Cycles 4.0 3.9 Growth CAPEX & Acquisitions funded by 3.5 83% 3.5 3.2 (1) 3.1 3.0 3.0 Equity & Retained DCF 2.5 ( in Billions) 70% ATM 62% 67%…
  42. RBC Capital Markets Midstream Conference – Enterprise Products Partners LP – slide 42
    EPD FINANCIAL METRICS COMPARISON S&P 500 ENTERPRISE PRODUCTS PARTNERS Largest Energy Companies by Market Capitalization 1 EXXON MOBIL CORP 340,821 Ticker: EPD Date: 11/9/2018 2 CHEVRON CORP 225,987 3 CONOCOPHILLIPS 75,602 Ranking…
  43. RBC Capital Markets Midstream Conference – Enterprise Products Partners LP – slide 43
    CLOSING COMMENTS Overall macro environment is improving Growing demand for U.S. hydrocarbons from international markets Commodity prices improving; WTI prices averaged 69.50/Bbl in 3Q18 Ethane prices averaged 0.43/gallon in 3Q 2018…
  44. RBC Capital Markets Midstream Conference – Enterprise Products Partners LP – slide 44
    NONGAAP RECONCILIATIONS & APPENDIX ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
  45. RBC Capital Markets Midstream Conference – Enterprise Products Partners LP – slide 45
    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…
  46. RBC Capital Markets Midstream Conference – Enterprise Products Partners LP – slide 46
    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…
  47. RBC Capital Markets Midstream Conference – Enterprise Products Partners LP – slide 47
    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…
  48. RBC Capital Markets Midstream Conference – Enterprise Products Partners LP – slide 48
    GROWTH CAPITAL PROJECTS 2017 Completed 2018 Remaining 2018 2019 2020 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) 150…
  49. RBC Capital Markets Midstream Conference – Enterprise Products Partners LP – slide 49
    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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