ENTERPRISE PRODUCTS PARTNERS L.P. BARCLAYS CEO ENERGY POWER CONFERENCE September 4, 2014 W. Randall Fowler EVP and CFO ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
KEY INVESTMENT CONSIDERATIONS EPD is one of the largest U.S. publicly traded energy partnerships with an enterprise value of 94 billion 56th on Fortune 500 One of the largest integrated midstream energy systems Diversified sources…
SIMPLE OWNERSHIP STRUCTURE GP ALIGNED WITH LIMITED PARTNERS EPCO & Public Affiliates 36.4% L.P. Noneconomic GP 63.6% L.P. Interest Interest Enterprise Products Partners L.P. (NYSE: EPD) Note: as of July 31, 2014…
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…
GEOGRAPHIC AND BUSINESS DIVERSIFICATION PROVIDE MULTIPLE EARNINGS STREAMS (1) 5.0 Billion Gross Operating Margin 4 Year Growth Capital Allocation 20132016E For 12 months ended June 30, 2014 12 Billion 16% 16% 12% 56% 22%…
FUNDAMENTALS OVERVIEW ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
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…
U.S. NGL SUPPLY POTENTIAL ASSUMING SUFFICIENT MARKETS (MBPD) 135 128 ROCKIES OTHER 581 922 301 1,182 APPALACHIAN MIDCONTINENT 501 661 PERMIAN Current (1) NGL Components Current 2020 3,192 MBPD Ethane 1,377 2,509…
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% Shale Gas Production Now Totals 50% 40 70 of Total Gas Production Oct2005…
POTENTIAL ENERGY PRODUCTION GROWTH 100 U.S. Natural Gas 20 North American Crude Oil & Condensate 90 U.S. Canada 16.7 90 15 80 Million BPD 71 10.7 Bcf/d 70 10 7.5 60 59 5 50 40 0 3.0 U.S. Ethane 3.0 U.S. LPG…
U.S. REFINERS LOOKING GOOD EXCEPT FOR DOMESTIC DEMAND IEA expects U.S. demand for Refined Products to decline steadily over next 5 years 0.60% annual decline for Mogas; 0.40% annual decline for Distillate; 0.50% annual decline for…
MAJOR NGL CAPITAL GROWTH PROJECTS ATEX and Aegis Ethane Pipelines ATEX Pipeline Initial Origins 1,265mile, 16 and 20 pipeline Initial capacity 125 MBPD, expandable to 265 MBPD Connected to 4 NGL fractionators 15 year shiporpay…
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 feebased contracts that average 15…
EXPORT CAPACITY: LINKING U.S. SUPPLIES TO GROWING GLOBAL DEMAND Beaumont Mont Oiltanking Belvieu Morgans Point ECHO Texas City Dock Terminal Freeport / Pipeline Corridors Jones Creek NGLs Refined Products Corpus…
U.S. BECOMES LARGEST EXPORTER OF PROPANE Propane Exports by Destination as of July 2014 2014 YTD Propane Exports (from EPD Facility) by Destination Region: 45 MMBbls % of Cargoes Loaded % of Destination Market North America 31% 41%…
EPD BOOKING CARGOES / BUILDING CAPACITY 2,000 LPG Cargoes Scheduled Through 2024 Existing Capacity: 7.5 MMBbls/mo 100% o Expansion 1Q 2015: +1.5 MMBbls/mo o Expansion 4Q 2015: +7.0 MMBbls/mo Ultimate Capacity: 16.0 MMBbls/mo 80%…
NEW MARKETS DEVELOP FOR U.S. ETHANE Market Potential EPD Ethane Export Facility at Morgans Point, TX Ethylene cracker feedstock displacing current Supported by longterm contracts crude oil derivative feedstocks or new demand Combined…
MORGANS POINT ETHANE EXPORT FACILITY Operational Mont synergy from Belvieu proximity to Mont Belvieu Vessel size Morgans 45 ft. draft Point 900 ft. LOA Houston Ship Channel Transit time from anchorage: 4 hours Gulf of…
SEAWAY CRUDE OIL PIPELINE EXPANSION COMPLETED Cushing Seaway Loop: 512 mile, 30 parallel pipeline along existing pipeline; O k l a h o m a completed June 2014 A r k a n Awaiting upstream pipeline connections Jones Creek to…
ENTERPRISE ECHO DISTRIBUTION SYSTEM Access to 8 MMBPD Refining and Water From Cushing Galena Park Sealy VLO H.R. PRSI Shell Katy 24 Baytown 36 Bertron Motiva VLO TOT XOM XOM Genoa ECHO Port Arthur Lateral 30 18 Beaumont…
EPD REFINED PRODUCTS TERMINAL BEGINS OPERATIONS Capabilities ExxonMobil EPD facility located at the Port of Beaumont, TX Capable of loading Panamax vessels at rates up EPD Beaumont to 15,000 Bbls/hr Terminal 2.9 MMBbls storage…
VISIBILITY TO GROWTH: MAJOR CAPITAL PROJECTS 6.3B InService in 2013 / 3Q14; 5.4B Under Construction In Service Date 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 2015/2016 NGL Pipeline & Services Eagle Ford Yoakum gas processing facility…
VISIBILITY TO GROWTH Additional Opportunities Under Development Supplyside Opportunities Demandside Opportunities NGLs NGLs Purity and mixed NGL pipelines from Pipeline and storage projects to serve expanding petrochemical industry…
FINANCIAL ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
HISTORY OF FINANCIAL DISCIPLINE WHILE EXECUTING GROWTH STRATEGY (1) (2) Total Growth Capex & Debt Leverage 4.5 4.2 4.7x 4.0 3.9 3.8 3.6 3.5 4.5x 3.1 3.4 Debt / Adjusted EBITDA 3.0 4.3x 2.5 Billions 4.1x 2.0 3.9x…
STRENGTHENING DEBT PORTFOLIO Extending Maturities Without Increasing Costs 13.1 Billion Notes Issued 99.2% Fixed Rate Debt 2009 2Q 2014 15 14.3 7.5% 13 13.3 Average Maturity Years 8.8% 8.8% 12.4 Cost of Debt 6.5%…
NO GP IDRS AND RETAINED DCF SUPPORT LONGTERM DISTRIBUTION GROWTH Indicative Amount of EPD Growth Capital Required No GP IDRs significantly to Support 0.16/unit Distribution Growth based on Return on Capital (ROC) Assumptions…
NONGAAP RECONCILIATIONS ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
GROSS OPERATING MARGIN We evaluate segment performance based on the nonGAAP financial measure of gross operating margin. Gross operating margin (either in total or by individual segment) is an important performance measure of the core…
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…
DISTRIBUTABLE CASH FLOW Distributable cash flow is an important nonGAAP 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…
MLP MATH ILLUSTRATIVE EXAMPLE ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com
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…
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…
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…
CONTACT INFORMATION Randy Burkhalter Vice President, Investor Relations (713) 3816812 rburkhaltereprod.com Jackie Richert Manager, Investor Relations (713) 3813920 jmricherteprod.com ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS…
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