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: 23 consecutive Consistent in responsibly returning capital to investors: 61B years of Enterprise Value: distribution TTM Adjusted CFFO(1): 7.2B 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 Stocks Started 2022 at 5 Year Lows Market fundamentals pointed to tight markets even before Russia invaded Ukraine No inventory buffer to prevent higher prices Low diesel stocks to support margins & refinery demand Gasoline…
EPD Supply Forecasts U.S. Crude Supply Scenarios 16.4 MMBpd 17 (+5.3) 16 We expect significant growth in 15 14.2 MMBpd (+3.1) commodity supply forecasts, as post 14 MMBpd 13 COVID demand continues to recover 12 along with…
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 U.S. Waterborne Crude Oil Exports 4,000 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 528 MBpd in 2021 (18% of U.S. exports) EPD NGL exports averaged 658 MBpd in 2021 (33% of U.S. exports) 2,000 1,800 1,600 1,400 1,200 MBpd 1,000…
U.S. Responsible for Virtually All Global LPG Export Growth LPG Waterborne Exports (2021) LPG Waterborne Export Growth by Country 3,500 30% 3,000 EPD 2,500 2,000 MBpd 1,500 1,000 30% 500 EPD 0 EPD Other U.S. 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 25,000 Permian Natural Gas Balances 8,000 Pipeline Capacity 20,000 7,000 6,000 15,000 Pipeline Capacity 5,000 MMcfd MBpd Crude Oil…
Natural Gas Crisis in Europe and Asia U.S. LNG Critical to Euro Security; New Liquefaction / Regas Plants Needed 60 Average Weekly Prices in /MMBtu 50 40 30 UK Gas 20 Asian LNG 17/MMBtu 10 U.S. Gas 0 After several…
U.S. Natural Gas Potential is Huge, but LNG Export Terminals are Needed FERC Needs to FastTrack 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 Construction…
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 80 Currently, a world scale 3.3…
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 propylene growth 4.0% 3.5% 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 Year…
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 netzero 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 openpit mine in Mountain Pass, CA All Rights Reserved. Enterprise Products…
COMMERCIAL UPDATES
Growth Capital Updates 4.6B of Major Projects Under Construction Capital Project Summary Forecast Estimated 1.5B of Annual InService Organic Capital Project Spending 1.5 Midland Basin Plant 6 2Q 2023 Natural Gas Liquids…
Enterprise Expands into Midland Basin with Navitas Purchase 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 WellDefined Core with Diverse Customer Mix Enterprise Plant Volume Forecast 1.5 Plant 6 InService 1.0 Bcf/d 0.5 New Plant 6 0.0 2019 2020 2021 2022 2023…
Delaware Basin Gathering and Processing Basin Wide Access to Growing Production Enterprise Plant Volume Forecast 2.5 Mentone II InService 2.0 1.5 Bcf/d 1.0 New Mentone II 0.5 0.0 2019 2020 2021 2022 2023 2024 2025…
Fractionation Capacity vs. Growth Ability to React Quickly to Rapidly Increasing Production New Frac 12 Utilizing existing nonbase 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 onpurpose 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(2) Baa1 ratings in the midstream space 30,000 24,296 25,000 Ample amount of liquidity, 20,000 3.9B of following the…
LongTerm, DistributionFocused Unitholder Base EPD Common Unit Ownership by Type 2.2 Billion Common Units Outstanding EPCO & Individuals Affiliates & Trusts Excluding EPCO & Affiliates, 66% of remaining 45% 32% units are held by…
Responsibly Returning Capital to Unitholders SelfFunded in MMs Moderated Distribution Capex Growth; SelfFund 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 1Q 2022 4.2 Billion Returned to 5.3 Billion Equity Holders 80% Adjusted 8.0 7.2 (5.0) FCF Payout 7.0 Ratio(1) 6.0 3.2 (4.0) 5.0 Billions 4.0 0.8 (3.2) 3.0 1.5 (0.1) 2.0…
Notable Growth in Adjusted Free Cash Flow Adjusted Free Cash Flow(1) Adjusted FCF Payout Ratio(1) excluding net cash used for business combinations(2) 6 100% 5.3 5 34% 4.9 90% 84% 80% 80% CAGR 70% 4 3.4 60% 2.9…
Financial Objectives Invest in midstream energy infrastructure with attractive, longterm 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% 3% 3% 1% 50% 40% 83% 77% 78% 77% 65% 67% 69% 68% 30% 64% 63% 61% 62% 61% 55%…
Total Return Since 1998 of XLE, SPX and EPD 3500% EPD: 3,124% 3000% 2500% 2000% 1500% SPX: 470% 1000% XLE: 478% 500% 0% 500% 12/31/1998 12/31/1999 12/31/2000 12/31/2001 12/31/2002 12/31/2003 12/31/2004…
Successful History of Cash Flow per Unit Durability Financial Crisis Oil Price Collapse COVID19 Pandemic 3.50 3.25 3.26 3.17 3.00 3.03 3.01 3.00 2.96 2.92 2.78 Operational DCF and Adjusted CFFO per Unit (1) 2.65 2.50…
Indicative Attribution of Gross Operating Margin Slide 51 attributes gross operating margin (GOM) among feebased, commoditybased and differentialbased 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…
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 nonGAAP 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 nonGAAP…
Investor Relations Contact Information Randy Burkhalter Vice President, Investor Relations (713) 3816812 rburkhaltereprod.com Joe Theriac Director, Finance & Investor Relations (713) 3816394 jstheriaceprod.com Libby Strait…
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