Enterprise Products Partners L.P. (NYSE:EPD) NGLs, Crude Oil, Natural Gas, Petrochemicals and Refined Products 50,000 miles of NGL, crude oil, 24 natural gas processing facilities; Fully integrated natural gas, petrochemicals and 18…
Why EPD Diversified & built for the long run Market Capitalization: 24 consecutive Consistent in responsibly returning capital to investors: 56B years of Enterprise Value: distribution TTM Adjusted CFFO(1): 7.6B TTM Adjusted FCF(1):…
EPD Earns Fees Delivering Raw Materials Essential to Everyday Life product & volume Nat. Gas Ethane Propane Butanes C5+ Crude Oil electric generation heating bottled fuels diluent direct uses heating cooking gasoline…
ENERGY FUNDAMENTALS
U.S. Oil & Gas and Global Energy Security Global Population Growth Requires All of the Above Energy Sources Energy Security has replaced Energy Transition as highest priority Energy transition is really energy addition World needs…
Global Energy Needs Wont Disappear Overnight Traditional Energy Demand Global Population Last 30 Timeline 600 Years to 2050 12 2100, 10.9B 500 10 2050, 9.7B Gas growing by Stacked Demand in Exa Joules 400 8 2021, 7.9B 1.8…
IEA on Oil Demand Oil demand only declines in the IEAs Net Zero Emissions scenario, which would be essentially impossible to implement IEA Oil Demand by Scenario 110 105 103 MMBPD Stated Policies Scenario 202130: +8 MMBPD 100 96…
OECD Balances Likely to Worsen in 2H 2022 Market fundamentals point to tighter markets in 2H 2022 No inventory buffer to prevent higher prices Refining margins at historic levels worldwide; Global diesel shortages 2H 2022: Chinas…
EPD Supply Forecasts U.S. Crude Supply Scenarios 16.4 MMBPD We expect significant growth in 17 (+5.3) 16 commodity supply forecasts, even in each 15 14.2 MMBPD Base Case, as post-COVID demand 14 (+3.1) MMBPD 13 recovers…
U.S. Net Imports of Crude & Refined Products Since the Shale Revolution From Over 10 MMBPD of Imports toSignificant Surplus Energy independence means significantly lower prices; as further demonstrated with the Russian / Ukraine…
U.S. Waterborne Exports 4,000 U.S. Waterborne Crude Oil Exports 2020 Average 2022 Average 3,500 2021 Average 3,000 2,500 MBPD 2,000 1,500 1,000 500 0 Houston Corpus Christi All Other Terminals U.S. Waterborne…
Exports from EPD Facilities Remain Resilient EPD Crude exports averaged 695 MBPD in 2022 YTD (23% of U.S. exports) EPD NGL exports averaged 696 MBPD in 2022 YTD (35% of U.S. exports) 2,000 1,800 1,600 1,400 1,200 MBPD…
U.S. Responsible for Virtually All Global LPG Export Growth LPG Waterborne Exports (2022 YTD) LPG Waterborne Export Growth by Country 3,500 30% 3,000 EPD 2,500 2,000 MBPD 1,500 1,000 500 0 EPD Other U.S. Qatar 2010…
Permian Basin Long Term Growth Production Current 19 Bcf/d wellhead gas and 5 MMBPD crude & condensate EPD forecasts by YE 2027, based on modestly increasing activity: 28 Bcf/d and 7.5 MMBPD in Base case 35 Bcf/d and 9.4 MMBPD in…
Permian Takeaway Capacity New Gas Pipes Are Needed 9,000 Permian Crude Oil Balances Permian Natural Gas Balances 25,000 8,000 Pipeline Capacity 7,000 20,000 6,000 15,000 Pipeline Capacity 5,000 MMcf/d MBPD Crude Oil…
Natural Gas Crisis in Europe and Asia U.S. LNG Critical to Euro Security; New Liquefaction / Regas Plants Needed 70 60 Average Weekly Prices in /MMBtu 50 UK Gas 40 Asian LNG 30 20 30/MMBtu 10 U.S. Gas 0 Oct-17…
U.S. Natural Gas Potential is Huge, but LNG Export Terminals are Needed FERC Needs to Fast-Track Projects and the U.S. and E.U. Need to Facilitate the Financing More than 90% of Operational capacity is on the USGC All Under…
Comparing U.S. BTU Values to Markets Overseas U.S. NGLs Expected to Maintain a Material Price Advantage 70 NG - Europe 60 50 LNG - Asia 40 /MMBtu U.S. BTUs hold a drastic advantage Asia Gasoil over EU and Asian 30 EU…
Ethylene Economics: Comparing U.S. vs. Europe Shale Oil Caused a Structural Advantage for Cracking U.S. Ethane Over European Naphtha Global Ethylene Cost of Production Global Ethylene Prices 80 90 Currently, a world scale 3.3 billion…
Primary Petrochemical Demand Poised for Growth 2020 Case Study World GDP declined by 3.5% Oil demand fell by 9% Ethylene and Propylene demand held steady Global Ethylene & Propylene Demand Trends Relative to Oil 200,000 120,000…
The U.S. Feedstock and Energy Advantage Spurs Growth Global Average Compound Annual Growth Rates The U.S. feedstock cost advantage continues (20102020) to encourage additional ethylene and 4.0% 3.5% propylene growth 3.5% 70…
Everyday Products Made from Oil 96% of all manufactured goods are directly touched by the petrochemicals industry Electronics Asphalt Renewable Medicines Plastics Cosmetics Cleaning Products Devices such as A building block of…
Commodity Super Cycle: Metals, Food & Energy Russia invasion has exacerbated mineral, food and energy inflation already impacted by underinvestment, lack of strategic sourcing of green metals, and post COVID supply chain issues 1…
Critical Minerals Extraction and Processing Did you know Mineral demand to facilitate clean energy tech would need to increase by 46x by 2040 to meet Sustainable Development and Scenario (SDS) and net-zero climate goals(1) Why does it…
The Grass Isn't Always Greener How Environmentally Sustainable is Your Energy Rare Earth Mineral Mine Petroleum Pipeline MP Materials rare earth open-pit mine in Mountain Pass, CA All Rights Reserved. Enterprise Products…
COMMERCIAL UPDATES
Growth Capital Updates 5.5B of Major Projects Under Construction Capital Project Summary Forecast Estimated Annual Organic Capital In-Service Project Spending 2.0 Midland Basin Plant 6 2Q 2023 1.8 Midland Basin Plant 7 1Q 2024…
Enterprise Expands into Midland Basin with Navitas Acquisition Why Navitas Midland Basin Customer Base MIDLAND BASIN Quality of Assets Downstream Integration Navitas Acquisition DELAWARE BASIN Approximately 1,750 miles of…
Midland Basin Gathering and Processing Premier Footprint in the Well-Defined Core with Diverse Customer Mix Enterprise Plant Volume Forecast 2.0 Plant 7 In-Service Plant 6 In-Service 1.5 New Plant 7 New Plant 6 Bcf/d 1.0…
Delaware Basin Gathering and Processing Basin Wide Access to Growing Production Enterprise Plant Volume Forecast 3.0 Mentone III In-Service 2.5 Mentone II In-Service 2.0 Bcf/d 1.5 Mentone III 1.0 Mentone II 0.5…
Fractionation Capacity vs. Growth Ability to React Quickly to Rapidly Increasing Production New Frac 12 Utilizing existing non-base capacity 1.8 today, while building to meet the 1.7 growing needs of the future 1.6 Frac 12…
Ethane Supply Growth Supports Expansion Expansion is needed to support forecasted growing global demand Production + Rejected Ethane 3,000 Excess Supply New Enterprise Terminal(1) 2,500 New Crackers Future New Crackers…
Expanding to Reach Premium Gulf Coast Markets Incremental Production Growth Haynesville / ETX production is forecasted to exceed 18 Bcf/d in the coming years Acadian Haynesville Expansion 2Q 2023 LNG Expansion +0.4 Bcf/d Over 4…
PDH 2 Fulfilling Global Demand for Propylene Growing demand for propylene derivatives ASSET PRODUCTION CAPACITY U.S. RANK requires additional on-purpose production Propylene Splitters(1) 7.9 billion pounds per year 1 Our significant…
TW Products (Texas Western Products System) This integral project will utilize both new and existing assets to service refined products markets in West Texas, New Mexico, C O L O R A D O Colorado and Utah U T A H GRAND JUNCTION Up…
Enterprise Petrochemical Exports Large Scale Terminals Deliver Cost Advantaged Olefins to the World We operate the worlds largest ethylene export New capital efficient expansion for ethylene terminal at Morgans Point with capacity of…
Enterprises Role in Energy Evolution The Evolutionary Technologies Team Our team identifies and assesses opportunities to manage our own carbon footprint while also providing our customers with solutions to meet their environmental…
Ideally Positioned to Provide CO2 Takeaway Signed a LOI with Occidental to work toward a potential CO2 transportation and sequestration solution for the Texas Gulf Coast; the project is initially focused on emitters in the greater…
Flexibility in Focus EPDs Strengthening Balance Sheet BBB+ One of the highest credit Debt Maturity Schedule(1) Baa1 ratings in the midstream space 30,000 24,296 25,000 Ample amount of liquidity, 20,000 4.1B of following the…
Long-Term, Distribution-Focused Unitholder Base EPD Common Unit Ownership by Type 2.2 Billion Common Units Outstanding EPCO & Individuals Affiliates & Trusts Excluding EPCO & Affiliates, 63% of remaining 43% 32% units are held by…
Responsibly Returning Capital to Unitholders Self-Funded in MMs Moderated Distribution Capex Growth; Self-Fund Equity 7,000 6,000 Completely Eliminated IDRs 5,000 and Collapsed GP Holdco 4,000 1.7x 1.6x 1.7x 1.2x 1.5x 1.2x…
Returning Capital to Equity Investors for TTM 2Q 2022 4.2 Billion Returned to 5.9 Billion Equity Holders 72% Adjusted 9.0 FCF Payout 7.6 (4.8) 8.0 Ratio(1) 7.0 3.2 (4.0) 6.0 Billions 5.0 4.0 0.2 (3.2) (0.1) 1.2 3.0…
Notable Growth in Adjusted Free Cash Flow Adjusted Free Cash Flow(1) excluding net cash used for business combinations(2) Adjusted FCF Payout Ratio(1) 5.9 100% 6 90% 84% 36% 4.9 5 80% CAGR 70% 72% 4 3.4 60% Billions…
Financial Objectives Invest in midstream energy infrastructure with attractive, long-term returns on investment ALL Support and grow cash distributions to partners OF Buybacks THE Support strong balance sheet and financial…
Consistent History of Returning Capital to Partners Adjusted CFFO Payout Ratio* 100% 90% 80% % of Adjusted CFFO Payout Ratio 70% 1% 3% 60% 1% 3% 3% 50% 40% 83% 77% 78% 77% 65% 67% 69% 68% 30% 64% 63% 61% 62% 61% 55%…
1000% 1500% 2000% 2500% 3000% 0% 500% 3500% -500% 12/31/1998 6/30/1999 12/31/1999 6/30/2000 12/31/2000 6/30/2001 12/31/2001 6/30/2002 12/31/2002 6/30/2003 12/31/2003 6/30/2004 Past results may not be…
Successful History of Cash Flow per Unit Durability Financial Crisis Oil Price Collapse COVID-19 Pandemic 3.50 3.44 3.25 3.17 3.23 3.00 3.03 3.00 2.92 2.96 2.78 Operational DCF and Adjusted CFFO per Unit (1) 2.65 2.50…
Indicative Attribution of Gross Operating Margin Slide 52 attributes gross operating margin (GOM) among fee-based, commodity-based and differential-based business activities. Most activities fit easily into one category; however, the…
Definitions Operational DCF per Unit represents Distributable Cash Flow (DCF) excluding proceeds from asset sales and property damage insurance claims and net receipts / payments from the monetization of interest rate derivative…
Distributable Cash Flow We measure cash available for distribution by reference to distributable cash flow (DCF). DCF is a quantitative standard used by the investment community for evaluating publicly traded partnerships since the value…
Gross Operating Margin We evaluate segment performance based on our financial measure of gross operating margin (GOM). GOM is an important performance measure of the core profitability of our operations and forms the basis of our internal…
Free Cash Flow (FCF) and Adjusted FCF Free cash flow (FCF) is a traditional cash flow metric that is widely used by investors and other participants in the financial community. In general, FCF is a measure of how much cash flow a business…
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 rating agencies, to assess…
Adjusted CFFO Adjusted CFFO is a non-GAAP measure that represents net cash flow provided by operating activities (CFFO) before the net effect of changes in operating accounts. We believe that it is important to consider this non-GAAP…
Investor Relations Contact Information Randy Burkhalter Vice President, Investor Relations (713) 381-6812 rburkhaltereprod.com Joe Theriac Director, Finance & Investor Relations (713) 381-6394 jstheriaceprod.com Libby Strait…
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