ENTERPRISE PRODUCTS PARTNERS L.P. GLOBAL MIZUHO INVESTOR CONFERENCE December 4, 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 midstream energy companies Integrated system enables EPD to reduce impact of cyclical commodity swings Large supply aggregator and access to domestic and international markets provides…
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…
EPDS INTEGRATED MIDSTREAM VALUE CHAIN Earning Fees at Each Link Its not uncommon for Enterprise to touch a molecule 57 times throughout the system Natural Gas Natural Gas Pipelines Storage Pipelines Ethane NGL Exports Natural…
FINANCIAL UPDATE ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
2018: RECORD RESULTS Driven by Strong Fundamentals and New Assets 2017 2018 Change NGL Fractionation (MBPD): 9M 818 942 +15% Operating Measures Liquid & Natural Gas Equivalent Pipeline Transportation (MBPD): 9M 8,542 9,781…
CONSISTENT FINANCIAL RESULTS THROUGH BUSINESS CYCLES EPDs 3Q Price Reflects Current Investor Sentiment EPD Has Delivered Consistent Results Throughout Cycles 400% in Millions 350% 160 2,500 140 300% 2,000 120 250% 100 1,500…
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…
DURABLE CASH FLOW METRICS THROUGHOUT COMMODITY CYCLE 120 As measured by MLP or Conventional metrics 2.50 100 2.20 2.16 2.09 2.06 65% 2.05 78% 2.00 1.97 64% 1.99 1.99 2.00 1.95 1.4x 1.93 1.94 1.2x 1.4x 1.3x 76% 1.6x 66%…
EPD COMPARES WELL AGAINST S&P 100 ON CONVENTIONAL METRICS vs. S&P 100 Market Price / Price / Total CFFO Payout Rating Cap. Earnings Cash Flow Return Ratio AAPL 845B NFLX 97.1x AIG 89.1x FOX 59% MSFT AAA KHC 216% MSFT 857B CHTR…
EPD COMPARES WELL AGAINST UTILITIES ON CONVENTIONAL METRICS vs. Utilities Market Price / Price / Total CFFO Payout Rating Cap. Earnings Cash Flow Return Ratio NEE 84.6B AWK 28.0x AWK 13.8x AES 51% ES A+ EPD 61% DUK 62.4B EVRG…
TRANSITIONING TO A TRADITIONAL FINANCIAL MODEL 2-year transition period (2018 and 2019) Continued distribution growth Self-fund equity portion of capital investments in 2019 Target leverage: 3.5x area debt to normalized LTM EBITDA…
MIDSTREAM ENERGY FUNDAMENTALS ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
MACRO ENERGY THEMES Natural Gas Basis Spread /MMbtu HSC vs. Permian 0.0 Transitory 13 Years -1.0 Production growth continues to surprise to -2.0 -3.0 the upside -4.0 DUCs, especially in the Permian, continue to -5.0 grow…
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…
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 -…
LPG SUPPLY TRENDING LONG Significant Export Capacity Additions Will Be Required MBPD 4,500 1.5 MMBPD looking 4,000 for a home LPG Supply 3,500 3,000 2,500 2,000 1,500 1,000 500 0 2011 2012 2013 2014 2015 2016 2017 2018…
ETHYLENE AND PROPYLENE DEMAND STRONG Growth is Function of Rising Living Standards Globally Approximate 2010 to 2019 Compounded Annual Growth Rates (CAGR) globally: GDP: 3.0% Oil 1.5% Note that most consultants have similar…
ETHANE TO POLYETHYLENE MARGINS STRONG Indicative U.S. Ethylene Cracker Profit Margin by Feedstock Polyethylene vs. Ethylene Prices (FOB Houston) 65 0.8 HDPE + LDPE is 60% of production 50 Margin Cents per Pound 0.6 35…
GROWTH PROJECTS UPDATE ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
WE CONTINUE TO GROW 6B of Major Capital Projects with More to Come NatGas 2% Petchem 23% 6.0 PDH facility MidlandtoSealy P/L Orla III gas plant iBDH NGL 5.5 Crude 59% Shin Oak P/L 5.0 Ethylene export dock 16% Front Range &…
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 (in-service) and III (scheduled 2Q 2019) and related gathering 3…
ENTERPRISES PERMIAN CRUDE PIPELINE From Permian Supply Hub to Multiple Markets Midland-to-Houston pipeline system: 416-mile, 24 pipeline from Midland to Sealy Cushing currently at 575 MBPD max capacity Currently moving volumes at…
OFFSHORE CRUDE OIL EXPORT TERMINAL Developing 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 to export crude…
ENTERPRISE CME / NYMEX HOUSTON WTI FUTURES CONTRACT Meeting customer demands: Cushing Refinery Cushing Export Specifications are reflective of Midland crude and provide a Magellan EHSC Magellan consistent, quality barrel of crude…
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…
WHY ENTERPRISE 20 Years Publicly Traded Partnership Market Capitalization: Geographic Diversification: 20 consecutive Total Return Potential: 57B (Yield + DCF/Unit growth) 1015%/year years of Enterprise Value: distribution 83B…
APPENDIX & NON-GAAP RECONCILIATIONS ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
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…
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 Loading…
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…
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…
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 Belvieu…
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…
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% 15% 20% % of Total GOM in Millions 750 12% 15%…
MONT BELVIEU FRACTIONATION CAPACITY 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 capacity and does not…
PETROCHEMICAL MIDSTREAM SERVICES 803 MM in Gross Operating Margin 9-Months 2018 9.5 billion lbs of total capacity TE Products FERC regulated 1.65B lbs PDH Gulf Coast Terminals PDH: 100% fixed fee contracts 8 ship/barge docks,…
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 DeHydro Crude Gas Plants…
iBDH The Other DeHydrogenation Project Capacity Facility rendering 937 million pounds of isobutylene annually (425,000 metric tons) Doubles Enterprises capacity Consumes 30 MBPD butane Schedule Permits received Major…
HOUSTON WTI FUTURES DELIVERY POINT SUPPLY / MARKET CONNECTIVITY KEYSTONE 36 Cushing Moore Rd. Junction Colorado EHSC EHSC BRIDGETEX 20 36 24 City Magellan EHSC 24 East XOM Crane LONGHORN 18 Houston…
RIG COUNTS: 58% OF RIGS ARE IN PERMIAN, EAGLE FORD AND HAYNESVILLE Rig Counts 1,200 1,000 800 493 600 78 51 400 200 457 0 All Others Haynesville Eagle Ford Permian Source: Baker Hughes ALL RIGHTS…
DUCS: 65% OF ALL DUCS ARE IN PERMIAN, EAGLE FORD AND HAYNESVILLE Drilled Uncompleted Wells 9,000 8,000 7,000 3,866 6,000 5,000 4,000 1,571 3,000 203 2,000 2,905 1,000 - All Others Haynesville Eagle Ford Permian…
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…
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…
Loading...
