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Wells Fargo Pipeline and MLP Symposium – Enterprise Products Partners LP

Enterprise Products Partners LP · Dec 10, 2013 · 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. Wells Fargo Pipeline and MLP Symposium – Enterprise Products Partners LP – slide 1
    Enterprise Products Partners L.P. Wells Fargo Pipeline & MLP Symposium December 10, 2013 Mike Creel www.enterpriseproducts.com Chief Executive Officer All rights reserved. Enterprise Products Partners L.P.
  2. Wells Fargo Pipeline and MLP Symposium – Enterprise Products Partners LP – slide 2
    Natural Gas, NGL and Crude Oil Supply and Demand Fundamentals All rights reserved. Enterprise Products Partners L.P.
  3. Wells Fargo Pipeline and MLP Symposium – Enterprise Products Partners LP – slide 3
    Shale Plays Source Rock Substantial AcreageDecades of Drilling POTENTIAL YEARS OF DRILLING Bakken / Williston 35 years (7,000,000 acres) Utica 80 years (13,000,000 Acres) Mancos / Niobrara Marcellus 100 years 45 years…
  4. Wells Fargo Pipeline and MLP Symposium – Enterprise Products Partners LP – slide 4
    Plentiful Supply of Natural Gas Available Below 5 Gas Price Required for 20% Before Income Tax (BFIT) Returns Potential Net Gas Additions 25 to 50 Bcf/d by 2025 Includes NGL Upgrade (if any) 1 to 4 2 to 3 Bcf/d 1 to 2 Bcf/d 5 to…
  5. Wells Fargo Pipeline and MLP Symposium – Enterprise Products Partners LP – slide 5
    U.S. NGL Supply Potential Assuming Sufficient Markets 129 OTHER ROCKIES 961 1,103 APPALACHIAN 645 MID-CONTINENT NGL Components Current 2020 PERMIAN Ethane* 970 2,425 Propane 838 1,401 Potential 875 Normal Butane 210 488…
  6. Wells Fargo Pipeline and MLP Symposium – Enterprise Products Partners LP – slide 6
    Low Gas to Crude Spread Continuing to Drive U.S. NGL Advantage NYMEX Natural Gas Price as a % of Crude Bcf/d U.S. Ethane Crackers: Global Cost Advantage 180% 30 70 Oct-2005 Current 160% 25 60 U.S. Cents Per Pound 140% 50…
  7. Wells Fargo Pipeline and MLP Symposium – Enterprise Products Partners LP – slide 7
    Ethane Supply / Demand Picture Could Remain Significantly Oversupplied MBPD 2,400 2,200 450700 MBPD excess before rejection 2,000 1,800 1,600 1,400 1,200 1,000 800 2013 2014 2015 2016 2017 2018 2019 2020 Expected…
  8. Wells Fargo Pipeline and MLP Symposium – Enterprise Products Partners LP – slide 8
    NW Europe is a Prime Opportunity for a New Market for U.S. Ethane Potential Ethane Naphtha conversion (MTBV) (NWE) Price per Gallon 0.25 2.50 Ethylene Costs (Dollars per pound) 0.08 0.48 Advantage of 600 Million per Year Total…
  9. Wells Fargo Pipeline and MLP Symposium – Enterprise Products Partners LP – slide 9
    LPG Supply / Demand Picture: Significant Bbls Available for Export MBPD 3,000 2,500 1,200 MBPD Excess 2,000 1,500 1,000 500 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 LPG Demand Current LPG Exports…
  10. Wells Fargo Pipeline and MLP Symposium – Enterprise Products Partners LP – slide 10
    Propane Exports Global Supply / Demand EPD 10 Mos. 2013: 63 MMBbls Supply North Sea / Northwest Europe Decline in North Exports Loaded % of Destination Market Sea output and ongoing field and terminal maintenance programs impact…
  11. Wells Fargo Pipeline and MLP Symposium – Enterprise Products Partners LP – slide 11
    Changing Flow of Crude Oil EPDs Assets Are At The Center Of It All Canada Heavy (20122020) Light (20122020) 1.8 MMBPD to 3.1 MMBPD 0.7 MMBPD to 1.5MMBPD 2012 2020 2012 2020 Light Imports 20122020 1.2 MMBPD to 0 MMBPD…
  12. Wells Fargo Pipeline and MLP Symposium – Enterprise Products Partners LP – slide 12
    Enterprise Products Partners L.P. All rights reserved. Enterprise Products Partners L.P.
  13. Wells Fargo Pipeline and MLP Symposium – Enterprise Products Partners LP – slide 13
    Key Investment Considerations One of the largest U.S. publicly traded energy partnerships with an enterprise value of approximately 75 billion 64th on Fortune 500 Integrated midstream energy system serving producers and consumers of…
  14. Wells Fargo Pipeline and MLP Symposium – Enterprise Products Partners LP – slide 14
    EPD Portfolio of Integrated Assets Major Asset Overview 51,000 miles of natural gas, NGL, crude oil, refined 22 NGL & Propylene fractionators products and petrochemical pipelines 6 offshore hub platforms 200 MMBbls of NGL, refined…
  15. Wells Fargo Pipeline and MLP Symposium – Enterprise Products Partners LP – slide 15
    Geographic and Business Diversification Provides Multiple Earnings Streams 4.7 Billion Gross Operating Margin 3 Year Growth Capital Allocation 20132015E (1) For 12 months ended September 30, 2013 10.0 Billion 17% 19% 52% 13%…
  16. Wells Fargo Pipeline and MLP Symposium – Enterprise Products Partners LP – slide 16
    Major NGL Capital Growth Projects Western Pipeline Expansions Front Range Contracted Volumes 120 Front Range 100 JV: 1/3 each EPD, Anadarko and DCP 435 miles of 16 pipe; DJ basin to Skellytown; 80 MBPD connections to Texas…
  17. Wells Fargo Pipeline and MLP Symposium – Enterprise Products Partners LP – slide 17
    Major NGL Capital Growth Projects ATEX and Aegis Ethane Pipelines ATEX Pipeline Initial Origins 1,230-mile, 16 and 20 pipeline Initial capacity 125 MBPD, expandable to at least 260 MBPD 15 year ship-or-pay commitments Contracted…
  18. Wells Fargo Pipeline and MLP Symposium – Enterprise Products Partners LP – slide 18
    EPDs LPG Export System The World Class Facility Continues to Grow EPD has 655 MBPD of NGL fractionation capacity at Mont Belvieu that can produce low ethane (LE) propane Integrated pipeline system dedicated to propane and butane…
  19. Wells Fargo Pipeline and MLP Symposium – Enterprise Products Partners LP – slide 19
    Propane Dehydrogenation Unit (PDH) U.S. petrochemical industry is retooling 16 1000 to maximize ethane consumption; shift 15.2 14.7 to ethane by ethylene crackers has 14 900 reduced propylene production by 38% 12.8 800 Enterprise…
  20. Wells Fargo Pipeline and MLP Symposium – Enterprise Products Partners LP – slide 20
    Major Crude Oil Growth Projects Seaway JV Looping & Laterals 512 mile, 30 parallel pipeline Supported by commitments up to 20 years 45 mile, 36 lateral from Jones Creek to ECHO 96 mile, 30 lateral from ECHO to Beaumont / Port…
  21. Wells Fargo Pipeline and MLP Symposium – Enterprise Products Partners LP – slide 21
    ECHO Terminal The Crude Oil Crossroads of Southeast Texas Expansion Phase 1 in service 2Q 2014 Expansion Phase 2 in-service 4Q 20141Q 2015 Beltway 8 Total Tankage 12 x 400 MBbl 5 x 250 MBbl 400 400 Phase 2 400 400 400 400 400…
  22. Wells Fargo Pipeline and MLP Symposium – Enterprise Products Partners LP – slide 22
    Financial All rights reserved. Enterprise Products Partners L.P.
  23. Wells Fargo Pipeline and MLP Symposium – Enterprise Products Partners LP – slide 23
    (1) Solid Operating Performance 16 Natural Gas Pipeline Volumes 5,000 Liquids Pipeline Volumes 14.3 14.5 4,855 14 13.8 4,800 12.7 11.9 4,600 12 TBtu/d MBPD Offshore 4,400 4,289 10 4,205 4,200 Onshore 8 4,024 3,990…
  24. Wells Fargo Pipeline and MLP Symposium – Enterprise Products Partners LP – slide 24
    Drives Strong Financial Results 5.0 Gross Operating Margin 4.5 Distributable Cash Flow (DCF) 4.4 4.1 3.8 4.0 3.9 3.5 3.5 3.3 2.9 Billions 3.0 2.7 Billions 3.1 2.5 2.3 2.8 2.0 2.6 1.6 2.1 1.5 1.0 0.0 0.5 2009…
  25. Wells Fargo Pipeline and MLP Symposium – Enterprise Products Partners LP – slide 25
    History of Financial Discipline While Executing Growth Strategy (1) (2) Total Growth Capex & Debt Leverage 4.5 4.2 4.50x 4.0 3.9 4.2x 3.6 4.25x 3.5 3.1 Debt / Adjusted EBITDA Total Growth Capex 3.0 3.9x 4.00x 2.5…
  26. Wells Fargo Pipeline and MLP Symposium – Enterprise Products Partners LP – slide 26
    Strengthening Debt Portfolio Extending Maturities Without Increasing Costs 14 8.0% 11.1 Billion Notes Issued 98% Fixed Rate Debt 20092013 13.4 10.4% 12 12.4 7.0% 10.4% 11.0 Cost of Debt 6.1% Year 10 6.0% 5.7% 5.8%…
  27. Wells Fargo Pipeline and MLP Symposium – Enterprise Products Partners LP – slide 27
    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)…
  28. Wells Fargo Pipeline and MLP Symposium – Enterprise Products Partners LP – slide 28
    EPD and AMZ MLP Index Attractive Total Return vs. 9 Other Asset Classes 15-Year 10-Year 5-Year 3-Year 2006 2007 2008 2009 2010 2011 2012 9M 2013 1 1 1 1 CAGR CAGR CAGR CAGR REIT Commodities IG Bonds MLP Index EPD EPD EPD EPD REIT…
  29. Wells Fargo Pipeline and MLP Symposium – Enterprise Products Partners LP – slide 29
    Non-GAAP Reconciliations All rights reserved. Enterprise Products Partners L.P.
  30. Wells Fargo Pipeline and MLP Symposium – Enterprise Products Partners LP – slide 30
    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…
  31. Wells Fargo Pipeline and MLP Symposium – Enterprise Products Partners LP – slide 31
    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…
  32. Wells Fargo Pipeline and MLP Symposium – Enterprise Products Partners LP – slide 32
    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…
  33. Wells Fargo Pipeline and MLP Symposium – Enterprise Products Partners LP – slide 33
    Appendix All rights reserved. Enterprise Products Partners L.P.
  34. Wells Fargo Pipeline and MLP Symposium – Enterprise Products Partners LP – slide 34
    Visibility to Growth: Major Capital Projects 7.5B Under Construction; 2.3B In-Service in 2013 In Service Date 1Q 2013 2Q 2013 3Q 2013 4Q 2013 2014 2015 NGL Pipeline & Services Eagle Ford Yoakum gas processing facility (phase III…
  35. Wells Fargo Pipeline and MLP Symposium – Enterprise Products Partners LP – slide 35
    MLP Math Illustrative Example All rights reserved. Enterprise Products Partners L.P.
  36. Wells Fargo Pipeline and MLP Symposium – Enterprise Products Partners LP – slide 36
    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…
  37. Wells Fargo Pipeline and MLP Symposium – Enterprise Products Partners LP – slide 37
    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…
  38. Wells Fargo Pipeline and MLP Symposium – Enterprise Products Partners LP – slide 38
    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…
  39. Wells Fargo Pipeline and MLP Symposium – Enterprise Products Partners LP – slide 39
    MLP Math: Illustrative Accretion from Investment 17.5% Assumed Return Source of Capital EPD Distribution Growth Matrix 100% Retained 70% Debt / 30% 70% Debt / 30% USD in millions, unless noted /unit DCF Retained DCF Common Units…

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