ENERGY TRANSFER LP 2019 Goldman Sachs Global Energy Conference January 8, 2019
ET HIGHLIGHTS
ET KEY INVESTMENT HIGHLIGHTS Growth From Organic Well Positioned Assets Solid Financials Investments Fully integrated platform Completing multi-year Stable cash flow profile spanning entire midstream capex program with minimal…
WHATS NEW Consistent Growth Recent Developments With Strong Financial/Operational Performance Mariner East 2 pipeline placed in service (Dec. 2018) Adj. EBITDA1 10 Announced Frac VII at Mont Belvieu (Nov. 18) Announced Lone Star…
ET ORGANIZATIONAL STRUCTURE ENERGY TRANSFER LP (formerly Energy Transfer Equity, L.P.) (NYSE: ET) Non-economic GP Interest 100% LP interest Energy Transfer Operating, L.P.* (formerly Energy Transfer Partners, L.P.)…
SIGNIFICANT GEOGRAPHIC FOOTPRINT ACROSS THE FAMILY Recently In-service & Asset Overview Announced Growth Projects Marcus Hook Lake Charles LNG Bayou Bridge Energy Transfer Assets Eagle Point Dakota Access Pipeline Rover…
A TRULY UNIQUE FRANCHISE Natural NGLs Crude Gas Oil Gather 12.8 million Fractionate One of the largest Transport 22 Transport 4.3 More than 7.9 billion mmbtu/d of gas & 567,000 bbls/d of planned LNG million mmbtu/d of…
COMPELLING VALUE PROPOSITION 14 EV / 2019 EBITDA 13 12 EV/2019 EBITDA 11 10 9 8 7 ET KMI PAA WMB EPD MMP OKE AMZ 9 Source: Bernstein Research, December 2018
DIVERSIFIED EARNINGS MIX WITH PRIMARILY FEE-BASED BUSINESS Segment1 Contract Structure Strength Q3 2018 Segment Margin by Segment1 Interstate Fees based on Connected to all major U.S. Transport & reserved capacity, supply basins and…
EXPOSURE TO MAJOR PRODUCING REGIONS Energy Transfer is one of the most geographically diverse midstream companies with leading positions in the majority of the active basins in the U. S 15 Number of regions with either…
FULLY INTEGRATED PLATFORM SPANNING THE ENTIRE MIDSTREAM VALUE CHAIN Involvement in Major Midstream Themes Across the Best Basins and Logistics Hubs Franchise Strengths Opportunities Access to multiple shale plays, storage…
FULLY INTEGRATED SERVICES BY REGION ET Services By Region Midstream Natural Gas Liquids Crude Interstate Intrastate Bakken Marcellus/Utica MidCon/Panhandle North Texas Permian Basin Ark-La-Tex Eagle Ford/SE…
ET ASSETS ALIGNED WITH MAJOR U.S. DRILLING REGIONS ET Rig Count Vs. Total US Rig Count ET Rig Count Vs. Lower 48 US Rig Count Rigs: 58 Rigs: 31 Rigs: 121 ET Rig Count by Region Total US Rig Count Rigs: 13 Rigs:…
FULLY INTEGRATED MIDSTREAM/LIQUIDS PLATFORM ACROSS NORTH AMERICA The ability to integrate an end-to-end liquids solution will better serve customers and alleviate bottlenecks currently faced by producers Marcus Hook: The future Mont…
MARCUS HOOK INDUSTRIAL COMPLEX: JUST GETTING STARTED Marcus Hook Overview 800 acre site: inbound and outbound pipeline along with infrastructure connectivity Logistically and financially advantaged for exports being 1,500 miles…
GROWTH FROM ORGANIC INVESTMENTS
ORGANIC GROWTH ENHANCES THE COMBINED ENTITYS STRONG FOOTHOLD IN THE MOST PROLIFIC PRODUCING BASINS 2017 Bakken Crude Pipeline (1) 2013 Mariner West 2014 Mariner East 1 - Propane Active in 9 of the top 10 basins by active 2015…
ET PROJECTS PROVIDE VISIBILITY FOR FUTURE EBITDA GROWTH Bakken Arrowhead PE3 Ramping Up Rebel II Processing Plant Old Ocean Pipeline Red Bluff Express Pipeline ET has a significant number of growth Lone Star Frac V…
FORESEE SIGNIFICANT EBITDA GROWTH IN 2019 FROM COMPLETION OF PROJECT BACKLOG PROJECT SCOPE IN-SERVICE TIMING NGL & Refined Products Lone Star Frac V Additional 120 Mbpd fractionator at Mont Belvieu complex In Service July 2018 Lone…
CRUDE OIL SEGMENT BAKKEN PIPELINE PROJECT Project Details Dakota Access Pipeline connects Bakken production to Patoka Hub, IL, with interconnection to Energy Transfer Crude Oil Pipeline (Trunkline conversion) to reach 1,172 miles…
CRUDE OIL SEGMENT PERMIAN EXPRESS PROJECTS Permian Crude Projects Permian Express 3 Expected to provide Midland & Delaware Basin producers new crude oil takeaway capacity (utilizing existing pipelines) from this rapidly growing…
CRUDE OIL SEGMENT PERMIAN GULF COAST PIPELINE Permian Gulf Coast Pipeline Permian Gulf Coast Pipeline JV Announced joint venture with Magellan Midstream, MPLX and Delek US Holdings to construct crude pipeline to transport crude oil…
CRUDE OIL SEGMENT BAYOU BRIDGE PIPELINE Project Details Bayou Bridge Pipeline Map Joint venture between Phillips 66 Partners (40%) and ET (60%, operator) 30 Nederland to Lake Charles segment went into service in April 2016 24…
NGL & REFINED PRODUCTS SEGMENT MARINER EAST SYSTEM A comprehensive Marcellus Shale solution reaching local, regional and international markets Transports Natural Gas Liquids from OH / Western PA to the Marcus Hook Industrial Complex…
MIDSTREAM SEGMENT PERMIAN BASIN INFRASTRUCTURE BUILDOUT ET is nearing capacity in both the Delaware and Midland Basins due to continued producer demand and strong growth outlook in the Permian As a result of this demand, ET has…
MIDSTREAM SEGMENT REVOLUTION SYSTEM Project Details Revolution Project Map System is located in Pennsylvanias Marcellus/Upper Devonian Shale rich-gas area Rich-gas, complete solution system Currently 20 miles of 16 in-service…
INTERSTATE SEGMENT MARCELLUS/UTICA ROVER PIPELINE Project Details Rover Project Map Sourcing natural gas from the Marcellus and Utica shales Connectivity to numerous markets in the U.S. and Canada Midwest: Panhandle Eastern and…
ETE ETP MERGER
TRANSACTION OVERVIEW On October 18, 2018, ETP unitholders voted to adopt the merger agreement, providing for the merger of ETP with ETE for 27 billion in ETE common units Based on the results, over 98% of the units that voted, voted…
STRATEGIC RATIONALE SIMPLIFIES Transaction simplified Energy Transfers corporate structure OWNERSHIP Further aligns economic interests within the Energy Transfer family STRUCTURE Responsive to investor sentiment regarding…
ENHANCED PRO FORMA BALANCE SHEET AND LIQUIDITY POSITION CONSERVATIVE AND FLEXIBLE FINANCIAL POLICY DEBT EXCHANGE OVERVIEW Expect to maintain ET distribution per unit at current level Meaningfully higher retained cash flow to drive…
KEY TAKEAWAYS Diversified business model, together with the geographic diversity of our assets, continues to Business allow our businesses to demonstrate resiliency. The underlying fundamentals of our business Diversity are strong…
APPENDIX
CRUDE OIL SEGMENT Crude Oil Pipelines Crude Oil Acquisition & Marketing 9,360 miles of crude oil trunk and gathering lines located in the Southwest and Crude truck fleet of approximately 370 trucks Midwest United States Purchase…
CRUDE OIL SEGMENT PERMIAN EXPRESS PARTNERS Permian Express Partners Joint Venture Details Strategic joint venture with ExxonMobil (ET owns 88% and is the operator) Combines key crude oil pipeline network of both companies and…
NGL & REFINED PRODUCTS SEGMENT NGL Storage Fractionation NGL Pipeline Transportation TET Mont Belvieu Storage Hub 50 million 5 Mont Belvieu fractionators (540+ Mbpd) 4,300 miles of NGL Pipelines throughout Texas and barrels NGL…
MIDSTREAM ASSETS Midstream Asset Map Midstream Highlights Volume growth in key regions: Q3 2018 gathered volumes reached a record 12.8 million mmbtu/d, and NGLs produced were 583,000 bbls/d, both up substantially over Q3 2017…
INTERSTATE PIPELINE ASSETS Interstate Asset Map Interstate Highlights Our interstate pipelines provide: Stability Approximately 95% of revenue is derived from fixed reservation fees Diversity Rover Access to multiple shale plays,…
INTRASTATE PIPELINE ASSETS Intrastate Asset Map Intrastate Highlights Continue to expect volumes to Mexico to grow, particularly with the startup of Trans-Pecos and Comanche Trail in Q1 2017, which will result in increased demand…
INTRASTATE SEGMENT MEXICO (CFE) Waha Header System 6 Bcf/d Header System Will connect to: Trans-Pecos & Comanche Trail Pipelines ETs vast interstate and Comanche Trail Pipeline intrastate pipeline network Multiple 3rd party…
ET NON-GAAP FINANCIAL MEASURES 42
ET NON-GAAP FINANCIAL MEASURES Energy Transfer LP Reconciliation of Adjusted EBITDA 2015 2016 2017 YTD 9/30/18 Net income 1,061 - 2,366 2,513 (Income) loss from discontinued operations (38) 462 177 265 Interest expense, net 1,622…
ETO NON-GAAP FINANCIAL MEASURES Segment Margin is a non-GAAP financial measure and is presented herein to assist in the analysis of segment operating results and particularly to facilitate an understanding of the impacts that…
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