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Wells Fargo Securities 10th Annual Pipeline – Energy Transfer

Energy Transfer · Dec 6, 2011 · 50 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 1
    Energy Transfer Partners Wells Fargo Securities 10th Annual Pipeline, MLP and E&P, Services and Utility Symposiums December 6, 2011
  2. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 2
    ETP Overview
  3. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 3
    ETP Overview Energy Transfer Partners, L.P. (ETP) is one of the largest publicly traded investment grade MLPs 1.67 billion Adjusted EBITDA for the twelve months ended September 30, 2011 Equity market capitalization of approximately…
  4. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 4
    ETP Asset Overview 5
  5. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 5
    Our Current Structure ETE Capitalization Energy Transfer Equity, L.P. 1.8 billion debt outstanding (NYSE: ETE) 315 million preferred units 1 Corporate Rating: BB-/Ba1/BB 8.1 billion market value (LP) 2 Ownership in RGP…
  6. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 6
    Acquisitions and Divestitures Update
  7. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 7
    ETC Northeast Pipeline AmeriGas Contribution 8
  8. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 8
    APU Transaction Overview ETP has agreed to contribute its retail propane business (Heritage) to AmeriGas Partners, L.P. (APU) in exchange for 2.9 billion, consisting of: Approximately 30.3 million APU common units (1.3 billion) which…
  9. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 9
    Strategic Rationale ETP becomes one of the largest pure-play natural gas / NGL operators with a focus on long-term, fee-based businesses Increases percentage of revenue attributable to fee-based operations with long-term contracts…
  10. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 10
    ETC Northeast Pipeline SUG Acquisition Update 11
  11. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 11
    SUG Transaction Update ETEs acquisition of SUG is on track to close in the 1st Quarter of 2012 ETE has already completed several transaction milestones including the expiration of the Hart-Scott-Rodino review period (July), entry into…
  12. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 12
    ETE and SUG Pipeline Assets ETE-controlled assets Southern Union assets ETP natural gas pipelines Florida Gas Transmission Lone Star pipeline Panhandle Eastern Pipeline RGP pipelines Trunkline Gas RGP gathering system Sea…
  13. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 13
    Pro Forma APU and SUG Closing Organizational Structure Energy Transfer Equity, L.P. (NYSE: ETE) Ownership in RGP Ownership in ETP Ownership in SUG 100% RGP IDRs 100% ETP IDRs 100% SUG Shares 1.8% General Partner Interest…
  14. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 14
    Operations
  15. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 15
    ETC Northeast Pipeline Midstream Segment 16
  16. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 16
    Midstream Highlights Focuses on the gathering, compression, treating, blending, processing, and marketing of natural gas through: Approximately 7,000 miles of natural gas gathering pipelines 3 natural gas processing plants 17…
  17. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 17
    Eagle Ford Shale Projects 18
  18. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 18
    Eagle Ford Shale Projects Expected Project Project Description Capacity Completion Cost Dos Hermanas 50-mile, 24-inch pipeline originating in northwest Webb County 400 MMcf/d In-service 43MM Pipeline and extending to ETP's existing…
  19. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 19
    Woodford Shale Project 95 miles of 30-inch pipe and 22 miles of 24-inch loop of existing system 450,000 Mcf/d of initial pipeline capacity Originating in Carter County, OK and terminating in Johnson County at the Godley…
  20. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 20
    ETC Northeast Pipeline NGL Transportation and Storage 21
  21. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 21
    Lone Star NGL Transportation and Storage Overview NGL Transportation and Services segment consists primarily of Lone Star Joint venture owned 70% by ETP and 30% by Regency Formed to acquire the NGL storage, fractionation and…
  22. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 22
    Lone Star Asset Overview Storage Pipeline Transportation Fractionation and Processing Mont Belvieu Storage Facility West Texas NGL Pipeline Two cryogenic processing plants Hattiesburg Storage Facility 25,000 Bbl/d fractionator Sea…
  23. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 23
    Lone Star Projects Mont Belvieu Fractionator 100,000 Bbl/d NGL fractionator to be constructed at Mont Belvieu Additional Y-grade liquids storage facilities to be developed A substantial amount of the fractionation capacity will be…
  24. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 24
    ETP NGL Pipeline Projects Freedom Pipeline 43 mile 8-inch NGL pipeline 40,000 bpd design capacity In-service September 2011 Project cost 30MM Liberty Pipeline 93 mile 12-inch NGL pipeline 90,000 bpd design capacity 50/50 JV…
  25. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 25
    ETC Northeast Pipeline Interstate Transportation Segment 26
  26. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 26
    Interstate Highlights ETP owns and operates approximately 2,875 miles of interstate natural gas pipeline via the Transwestern & Tiger Pipelines ETP also has a 50% interest in the joint venture that owns the 185-mile Fayetteville…
  27. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 27
    Fayetteville Express Pipeline (FEP) 50/50 joint venture with KMP ETP managed construction and operates the pipeline 185 mile, 42-inch interstate pipeline Initial capacity of 2.0 Bcf/d; 1.85 Bcf/d sold under 10-12 year…
  28. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 28
    FEP Demand (Take or Pay) Volumes through 2012 Bcf/d Pipeline Capacity Contractual Demand 2.5 2.0 1.5 1.0 0.5 0.0 Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug-…
  29. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 29
    Tiger Pipeline 100% owned and operated by ETP 175 mile, 42-inch interstate pipeline 2.4 Bcf/d of capacity sold under 10-15 year agreements (includes 0.4 Bcf/d sold under planned expansion) Project costs were…
  30. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 30
    Tiger Demand (Take or Pay) Volumes Through 2012 Bcf/d Pipeline Capacity Contractual Demand 2.5 2.0 1.5 1.0 0.5 0.0 Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug-…
  31. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 31
    Transwestern Pipeline Mainline and Laterals TWP Pipeline Ignacio 43 54 Blanco Hub Mainline 1 West 1 San Juan Lateral Needles 7 6 Topock Mainline West Thoreau 2 Panhandle Lateral 3 Phoenix Phoenix Lateral Mainline…
  32. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 32
    Transwestern Update Rate Case Settlement Filed September 21 (Docket No. RP11-2576) Eliminated requirement to file rate case by Oct 1, 2011 Provides certainty for 3-year term with rate case filing in Oct 1, 2014 Establishes TW…
  33. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 33
    Transwestern 2011 System Deliveries Bcf/d TW West TW East TW SJ 2.5 2.0 1.5 1.0 0.5 0.0 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 34
  34. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 34
    ETC Northeast Pipeline Intrastate Transportation and Storage Segment 35
  35. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 35
    Intrastate Transportation and Storage Segment ETP owns and operates the largest intrastate pipeline system in the United States Focused on the transportation of natural gas to major markets from various prolific natural gas…
  36. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 36
    Financial and Liquidity Overview
  37. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 37
    Financial Objectives Resume growth in distributable cash flow Target projects/assets that provide for attractive rates of return and that integrate with our existing asset base Achieve and maintain a 1.05x distribution coverage…
  38. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 38
    Adjusted EBITDA Will Continue to Grow 1,674.7 1,540.9 1,477.4 1,378.9 1,143.4 ETP has announced 765.7 investments of more than 2 billion for organic growth projects 400.5 and 3.3 billion for strategic acquisitions…
  39. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 39
    Our Business Has Diversified As We Have Grown Business Performance by Operating Segment1 Intrastate Midstream Interstate Propane NGL 100% 5% 10% 17% 14% 19% 22% 19% 15% 28% 12% 75% 12% 13% 28% 22% 13% 17% 16% 15% 27% 15%…
  40. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 40
    We Have Taken A Balanced Approach To Funding Growth 2 Equity + Excess Cash Flow Debt Total Capital Deployed1 ( mm): 1,292 1,204 2,092 970 1,896 1,328 834 3,028 12,643 21% 24% 40% 51% 51% 49% 71% 66% 76% 79% 76% 60%…
  41. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 41
    Growth Expenditures ( millions) 2010 1Q 2011 2Q 2011 3Q 2011 2011E 2012E Growth Capital Expenditures Intrastate / Midstream 430 142 283 295 950 - 1,000 700 - 850 Interstate 825 38 79 16 140 - 160 - NGL 1 - - 10 16 120 - 160 550 -…
  42. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 42
    Debt Capitalization ( million) 9/30/2011 12/31/2010 Revolving Credit Facility 574.6 402.3 Senior Notes: 5.65% due 2012 400.0 400.0 6.00% due 2013 350.0 350.0 8.50% due 2014 350.0 350.0 5.95% due 2015 750.0 750.0 6.13% due 2017…
  43. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 43
    Leverage And Credit Ratings ( million) 9/30/2011 12/31/2010 Leverage Debt 8,063 6,910 LTM Adjusted EBITDA 1,675 1,541 Pro Forma and Material Projects Adjustments (MPA)1 254 231 LTM Adjusted EBITDA with Pro Forma MPA 1,929 1,772…
  44. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 44
    Commodity Hedging Activities Intrastate Retained Fuel Intrastate Gas Storage Propane Net retained fuel volumes hedged We maintain hedges to manage We maintain hedges to manage with collars as of 9/30/11: exposure associated with…
  45. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 45
    Investment Considerations Large, diversified assets well positioned in markets ETP is one of the largest MLPs with an equity market capitalization of approximately 9.8 billion1 Large Diversified and an enterprise value of 17.8…
  46. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 46
    ETC Northeast Pipeline Supplemental Information 47
  47. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 47
    Adjusted EBITDA Reconciliation Year Ended Year Ended Year Ended Twelve Months ( thousands) December 31, 2008 December 31, 2009 December 31, 2010 Ended June 30, 2011 Net income 866,023 791,542 617,222 706,749 Interest expense, net of…
  48. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 48
    Distributable Cash Flow Reconciliation Twelve Months Year Ended Year Ended Year Ended Ended September ( thousands) December 31, 2008 December 31, 2009 December 31, 2010 30, 2011 Net income 866,023 791,542 617,222 706,749…
  49. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 49
    Reconciliation of Capital Deployed and Funding Sources Fiscal Years Ended 8/31 Four Months Calendar Years Ended 12/31 Nine Months Ended ( millions) 2005 2006 2007 Ended 12/31/07 2008 2009 2010 9/30/11 Net cash used in investing…
  50. Wells Fargo Securities 10th Annual Pipeline – Energy Transfer – slide 50
    Definitions The following is a list of certain acronyms and terms generally used in the energy industry and throughout this presentation: /d per day Btu British thermal unit, an energy measurement Capacity capacity of a pipeline,…

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