Enterprise Products Partners L.P. J.P. Morgan Energy Infrastructure / MLP 1x1 Forum June 12, 2014 www.enterpriseproducts.com All rights reserved. Enterprise Products Partners L.P.
Key Investment Considerations EPD is one of the largest U.S. publicly traded energy partnerships with an enterprise value of 88 billion 64th on Fortune 500 One of the largest integrated midstream energy systems Diversified sources of…
Simple Ownership Structure GP Aligned with Limited Partners EPCO, Affiliates & Public Management 36.4% L.P. Non-economic GP 63.6% L.P. Interest Interest Enterprise Products Partners L.P. (NYSE: EPD) Note: as of May 31,…
Enterprise Assets: Natural Gas, NGLs, Crude Oil and Petrochemicals Asset Overview Connectivity Pipelines: 51,000 miles of natural gas, NGL, crude oil, refined Connected to U.S. major shale basins products and petrochemical pipelines…
Fundamentals Overview All rights reserved. Enterprise Products Partners L.P.
Unconventional / Shale Plays Decades of DrillingDecades of Production POTENTIAL YEARS OF DRILLING IN COMMERCIAL PLAYS Bakken 40k to 100k locations 20 to 50 years Utica 95k to 160k locations Mancos / Niobrara 100 years 75k to…
U.S. NGL Supply Potential Assuming Sufficient Markets (MBPD) 137 128 ROCKIES OTHER 573 923 123 1,181 APPALACHIAN 508 661 MID-CONTINENT PERMIAN Current 2,982 MBD NGL Components 4Q 2008 Current 2020 559 Ethane* 686 1,275…
Potential Energy Production Growth 100 U.S. Natural Gas 20 North American Crude Oil & Condensate 90 U.S. Canada 16.7 90 15 80 Million BPD 71 10.7 Bcf/d 70 10 7.5 60 59 5 50 40 0 3.0 U.S. Ethane 3.0 U.S. LPG…
Low Gas to Crude Spread Continuing to Drive U.S. NGL Advantage NYMEX Natural Gas Price as a % of Crude U.S. Ethane Crackers: Global Cost Advantage 140% 40 70 Shale Gas Production Now Totals 50% of Total Gas Production May-2013…
The U.S. Has Shifted to a Net Exporter of Refined Products IEA expects U.S. demand for Refined Products to decline steadily: 0.60% annual decline for Mogas (motor gasoline) demand 0.40% annual decline for Distillate (diesel, jet fuel…
History of Successful Execution; Visibility to Growth Organic Growth Capital Projects Projects completed since 2011: 11.3 Billion 6.8B Under 5.0 approximately 3% under budget 11.3B Completed Construction 4.6 Pipelines: 4,200 miles…
Visibility to Growth Additional Opportunities Under Development Supply-side Opportunities Demand-side Opportunities NGLs NGLs Purity and mixed NGL pipelines from Pipeline and storage projects to serve expanding petrochemical growing…
Major Capital Projects Update All rights reserved. Enterprise Products Partners L.P.
Major NGL Capital Growth Projects ATEX and Aegis Ethane Pipelines Initial Origins ATEX Pipeline 1,265-mile, 16 and 20 pipeline Initial capacity 125 MBPD, expandable to 265 MBPD Connected to 2 NGL fractionators; expect 2 additional…
U.S. Becomes Largest Exporter of Propane Propane Exports by Destination as of May 2014 2014 YTD Propane Exports (from EPD Facility) by Destination Region: 34 MMBbls % of Cargoes Loaded % of Destination Market North America 29% 41% South…
NW Europe and Asia Offer New Markets for U.S. Ethane EPD Announces Ethane Export Facility NW Europe Building a fully refrigerated ethane export facility Ethane Naphtha on Texas Gulf Coast (MTBV) (NWE) Designed aggregate loading rate…
EPD PDH Facility Update Capacity to produce up to 1.65 billion pounds per year of polymer grade propylene (25 MBPD) Will consume 35 MBPD of propane 100% of capacity is contracted under fee-based contracts that average 15 years…
Seaway Expansion Nears Completion Cushing Seaway Loop: 512 mile, 30 parallel pipeline under construction Oklahoma along existing Seaway pipeline Arkan (expected completion June 2014) Only final station checkouts and pipeline…
Enterprise ECHO Distribution System Access to 8 MMBPD Refining and Water From Cushing Galena Park Sealy 24 Katy VLO H.R. PRSI Shell Pasadena Bertron Rancho 24 36 18 Motiva VLO TOT XOM Genoa Baytown ECHO Rancho II XOM 30 30…
EPD Refined Products Terminal Begins Operations Capabilities ExxonMobil EPDfacility located at the Port of Beaumont, TX EPD Beaumont Terminal Capable of loading Panamax vessels EPD Beaumont at rates up to 15,000 Bbls/hr Tank…
Financial All rights reserved. Enterprise Products Partners L.P.
History of Financial Discipline While Executing Growth Strategy (1) (2) 4.5 Total Growth Capex & Debt Leverage 4.2 4.1 4.7x 4.0 3.9 3.6 3.7 4.5x 3.5 3.1 Debt / Adjusted EBITDA 3.0 4.3x Billions 2.5 4.1x 2.0 3.9x…
Strengthening Debt Portfolio Extending Maturities Without Increasing Costs 13.1 Billion Notes Issued 99.2% Fixed Rate Debt 2009 1Q 2014 15 14.6 8.8% 7.5% 8.8% 13 13.3 Average Maturity Years 12.4 Cost of Debt 6.5% 11…
No GP IDRs and Retained DCF Support Long-Term Distribution Growth Indicative Amount of EPD Growth Capital Required to Support 0.16/unit Distribution Growth based on No GP IDRs significantly Return on Capital (ROC) Assumptions(1)…
EPD and AMZ MLP Index Attractive Total Return vs. 8 Other Asset Classes 15-Year 10-Year 5-Year 3-Year 2006 2007 2008 2009 2010 2011 2012 2013 3M 2014 CAGR 1 CAGR 1 CAGR 1 CAGR 1 REIT Commodities IG Bonds MLP Index EPD EPD EPD EPD…
Appendix All rights reserved. Enterprise Products Partners L.P.
Visibility to Growth: Major Capital Projects 6.8B Under Construction; 4.8B In-Service in 2013 / 1Q14 In Service Date: 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 2015/2016 NGL Pipeline & Services Eagle Ford Yoakum gas processing facility…
Non-GAAP Reconciliations All rights reserved. Enterprise Products Partners L.P.
Gross Operating Margin We evaluate segment performance based on the non-GAAP financial measure of gross operating margin. Gross operating margin (either in total or by individual segment) is an important performance measure of the core…
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…
MLP Math Illustrative Example All rights reserved. Enterprise Products Partners L.P.
MLP Math: Illustrative Accretion from Investment 10.0% Assumed Return Source of Capital EPD Distribution Growth Matrix 100% Retained 40% Debt / 60% 40% Debt / 60% USD in millions, unless noted /unit DCF Retained DCF Common Units…
MLP Math: Illustrative Accretion from Investment 12.5% Assumed Return Source of Capital EPD Distribution Growth Matrix 100% Retained 50% Debt / 50% 50% Debt / 50% USD in millions, unless noted /unit DCF Retained DCF Common Units…
MLP Math: Illustrative Accretion from Investment 15.0% Assumed Return Source of Capital EPD Distribution Growth Matrix 100% Retained 60% Debt / 40% 60% Debt / 40% USD in millions, unless noted /unit DCF Retained DCF Common Units…
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