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Credit Suisse MLP and Energy Logistics Conference – Enterprise Products Partners LP

Enterprise Products Partners LP · Jun 10, 2014 · 39 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. Credit Suisse MLP and Energy Logistics Conference – Enterprise Products Partners LP – slide 1
    Enterprise Products Partners L.P. Credit Suisse MLP & Energy Logistics Conference June 10, 2014 Bryan Bulawa www.enterpriseproducts.com SVP and Treasurer All rights reserved. Enterprise Products Partners L.P.
  2. Credit Suisse MLP and Energy Logistics Conference – Enterprise Products Partners LP – slide 2
    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…
  3. Credit Suisse MLP and Energy Logistics Conference – Enterprise Products Partners LP – slide 3
    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,…
  4. Credit Suisse MLP and Energy Logistics Conference – Enterprise Products Partners LP – slide 4
    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…
  5. Credit Suisse MLP and Energy Logistics Conference – Enterprise Products Partners LP – slide 5
    Fundamentals Overview All rights reserved. Enterprise Products Partners L.P.
  6. Credit Suisse MLP and Energy Logistics Conference – Enterprise Products Partners LP – slide 6
    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…
  7. Credit Suisse MLP and Energy Logistics Conference – Enterprise Products Partners LP – slide 7
    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…
  8. Credit Suisse MLP and Energy Logistics Conference – Enterprise Products Partners LP – slide 8
    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…
  9. Credit Suisse MLP and Energy Logistics Conference – Enterprise Products Partners LP – slide 9
    LPGA Growing Surplus MBPD 1,250 MBPD Excess 3,000 2,500 2,000 1,500 1,000 500 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 LPG Demand Current LPG Exports Growing Surplus LPG Supply Source: EPD Fundamentals…
  10. Credit Suisse MLP and Energy Logistics Conference – Enterprise Products Partners LP – slide 10
    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…
  11. Credit Suisse MLP and Energy Logistics Conference – Enterprise Products Partners LP – slide 11
    EPD Booking Cargoes / Building Capacity 2,052 Cargoes Scheduled Through 2024 100% Existing Capacity: 7.5 MMBbls/mo Expansion 1Q 2015: +1.5 MMBbls/mo Expansion 4Q 2015: +7.0 MMBbls/mo Ultimate Capacity: 16.0 MMBbls/mo 80% Dock…
  12. Credit Suisse MLP and Energy Logistics Conference – Enterprise Products Partners LP – slide 12
    Ethane Supply Potential / Demand U.S. Expected to Remain Chronically Oversupplied MBPD 3,000 450700 MBPD excess before rejection 2,500 2,000 200250 MBPD rejection in 2013 1,500 1,000 500 0 2012 2013 2014 2015 2016…
  13. Credit Suisse MLP and Energy Logistics Conference – Enterprise Products Partners LP – slide 13
    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…
  14. Credit Suisse MLP and Energy Logistics Conference – Enterprise Products Partners LP – slide 14
    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…
  15. Credit Suisse MLP and Energy Logistics Conference – Enterprise Products Partners LP – slide 15
    Major Capital Projects Update All rights reserved. Enterprise Products Partners L.P.
  16. Credit Suisse MLP and Energy Logistics Conference – Enterprise Products Partners LP – slide 16
    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…
  17. Credit Suisse MLP and Energy Logistics Conference – Enterprise Products Partners LP – slide 17
    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…
  18. Credit Suisse MLP and Energy Logistics Conference – Enterprise Products Partners LP – slide 18
    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…
  19. Credit Suisse MLP and Energy Logistics Conference – Enterprise Products Partners LP – slide 19
    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…
  20. Credit Suisse MLP and Energy Logistics Conference – Enterprise Products Partners LP – slide 20
    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…
  21. Credit Suisse MLP and Energy Logistics Conference – Enterprise Products Partners LP – slide 21
    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…
  22. Credit Suisse MLP and Energy Logistics Conference – Enterprise Products Partners LP – slide 22
    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…
  23. Credit Suisse MLP and Energy Logistics Conference – Enterprise Products Partners LP – slide 23
    Financial All rights reserved. Enterprise Products Partners L.P.
  24. Credit Suisse MLP and Energy Logistics Conference – Enterprise Products Partners LP – slide 24
    Solid Operating Performance 5.2 Liquids Pipeline Volumes 5.1 Equity NGL Production & Fee-based Processing 5.0 137 140 5 121 126 4.7 120 116 4.7 4.5 Equity NGL Production Fee-based Processing 4.6 101 100 Million…
  25. Credit Suisse MLP and Energy Logistics Conference – Enterprise Products Partners LP – slide 25
    Drives Strong Financial Results Gross Operating Margin 4.5 Distributable Cash Flow (DCF) (1) 5.0 4.8 4.1 4.4 3.8 3.8 3.9 4.0 3.5 3.3 3.7 Billions Billions 3.0 2.5 2.3 3.0 2.8 2.0 1.3 2.2 1.5 1.0 1.1 1.0 0.0 0.5 2010…
  26. Credit Suisse MLP and Energy Logistics Conference – Enterprise Products Partners LP – slide 26
    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…
  27. Credit Suisse MLP and Energy Logistics Conference – Enterprise Products Partners LP – slide 27
    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…
  28. Credit Suisse MLP and Energy Logistics Conference – Enterprise Products Partners LP – slide 28
    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)…
  29. Credit Suisse MLP and Energy Logistics Conference – Enterprise Products Partners LP – slide 29
    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…
  30. Credit Suisse MLP and Energy Logistics Conference – Enterprise Products Partners LP – slide 30
    Appendix All rights reserved. Enterprise Products Partners L.P.
  31. Credit Suisse MLP and Energy Logistics Conference – Enterprise Products Partners LP – slide 31
    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…
  32. Credit Suisse MLP and Energy Logistics Conference – Enterprise Products Partners LP – slide 32
    Non-GAAP Reconciliations All rights reserved. Enterprise Products Partners L.P.
  33. Credit Suisse MLP and Energy Logistics Conference – Enterprise Products Partners LP – slide 33
    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…
  34. Credit Suisse MLP and Energy Logistics Conference – Enterprise Products Partners LP – slide 34
    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…
  35. Credit Suisse MLP and Energy Logistics Conference – Enterprise Products Partners LP – slide 35
    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…
  36. Credit Suisse MLP and Energy Logistics Conference – Enterprise Products Partners LP – slide 36
    MLP Math Illustrative Example All rights reserved. Enterprise Products Partners L.P.
  37. Credit Suisse MLP and Energy Logistics Conference – Enterprise Products Partners LP – slide 37
    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…
  38. Credit Suisse MLP and Energy Logistics Conference – Enterprise Products Partners LP – slide 38
    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…
  39. Credit Suisse MLP and Energy Logistics Conference – Enterprise Products Partners LP – slide 39
    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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