Enterprise Products Analyst Conference Houston March 24, 2010

208 Pages·2010·13.45 MB·English

Enterprise Products
Analyst Conference
Houston
March 24, 2010
Forward Looking Statements
This presentation contains forward-looking statements and information based on Enterprise’s beliefs and
those of its general partner, as well as assumptions made by and information currently available to them.
When used in this presentation, words such as “anticipate,” “project,” “expect,” “plan,” “goal,” “forecast,”
“intend,” “could,” “believe,” “may,” and similar expressions and statements regarding the plans and
objectives of Enterprise for future operations, are intended to identify forward-looking statements.
Although Enterprise and its general partner believe that such expectations reflected in such forward-looking
statements are reasonable, neither it nor its general partner can give assurances that such expectations will
prove to be correct. Such statements are subject to a variety of risks, uncertainties and assumptions. If one
or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, actual
results may vary materially from those Enterprise anticipated, estimated, projected or expected. Among the
key risk factors that may have a direct bearing on Enterprise’s results of operations and financial condition
are:
(cid:121) Fluctuations in oil, natural gas and NGL prices and production due to weather and other natural and economic forces;
(cid:121) A reduction in demand for its products by the petrochemical, refining or heating industries;
(cid:121) The effects of its debt level on its future financial and operating flexibility;
(cid:121) A decline in the volumes of energy commodities delivered by its facilities;
(cid:121) The failure of its credit risk management efforts to adequately protect it against customer non-payment;
(cid:121) Actual construction and development costs could exceed forecasted amounts;
(cid:121) Operating cash flows from our capital projects may not be immediate;
(cid:121) National, international, regional and local economic, competitive and regulatory conditions;
(cid:121) Terrorist attacks aimed at its facilities; and
(cid:121) The failure to successfully integrate its operations with assets or companies, if any, that it may acquire in the future.
Enterprise has no obligation to publicly update or revise any forward-looking statement, whether as a result
of new information, future events or otherwise.
Meeting Agenda
Michael Creel – Welcome & Opening Remarks
1.
Jim Teague – Natural Gas & Crude Oil
2.
Tom Zulim – Unregulated NGL Business
3.
Jim Collingsworth – FERC Regulated Onshore Pipelines & Gas Storage
4.
Lynn Bourdon – NGL, Petrochemicals, Refined Products Update
5.
Rudy Nix – NGL Distribution Services & Asset Optimization
6.
Benny Cenac – Enterprise Marine Services
7.
Chris Skoog – Enterprise Onshore Gas Services & Marketing
8.
Mark Hurley – Crude Oil & Offshore Businesses
9.
Bill Ordemann – Capital Project Update
10.
Randy Fowler – Financial Overview
11.
Duncan Energy Partners L.P.
12.
Enterprise GP Holdings L.P.
13.
Appendix & Non-GAAP Reconciliations
14.
Welcome and Opening Remarks
Michael A. Creel
All rights reserved. Enterprise Products Partners L.P.
EPD System Map at IPO
Asset Overview
500 miles of NGL and petrochemical pipelines
Alabama
35 MMBbls of NGL storage capacity
6 fractionation facilities Mississippi
NGL import / export terminal
Butane isomerization complex
Petal
Octane enhancement facility
Texas Louisiana
Mont Belvieu
NGL Fractionation Plant
NGL & Liquid Storage Facility
NGL & Liquid Pipelines
Import / Export Terminal
All rights reserved. Enterprise Products Partners L.P. 2
Core Objectives / Principles
Invest in growth opportunities to build or acquire energy
infrastructure that
Integrates with existing system
(cid:121)
Generates cash returns on investment greater than
(cid:121)
EPD’s long-term cost of capital
Manage long-term cost of capital
Preserve EPD’s financial flexibility and maintain an
investment grade balance sheet
Increase distributions to provide LPs with attractive total
return while retaining distributable cash flow (DCF) to
enhance flexibility and long-term value creation
All rights reserved. Enterprise Products Partners L.P. 3
Successful Execution
$20.4 Billion in growth capital investments since 1998
Maintained financial discipline and largely avoided growth through
expensive M&A auctions
Grew mainly through acquisitions from the IPO through 2004,
including GulfTerra acquisition
$8.4 Billion of acquisitions (≈90% of total growth investments)
(cid:121)
Post GulfTerra, EPD’s large footprint of assets has provided organic
growth opportunities to expand and extend our integrated value chain
$8.9 Billion of organic growth capital investments (≈80% of total growth
(cid:121)
investments)
Funded 56% of growth with equity and retained DCF
Increased cash distributions 31 times by a total of 149% while
retaining almost $1.2 Billion in DCF
Managed long-term cost of capital with assistance of supportive GP
All rights reserved. Enterprise Products Partners L.P. 4
EPD System Map Today
Asset Overview
Approximately 48,700 miles of natural gas, NGL, crude 18 fractionation facilities
oil, refined products and petrochemical pipelines
6 offshore hub platforms
190 MMBbls of NGL, refined products and crude oil
NGL import / export terminals
storage capacity
Butane isomerization complex
27 Bcf of natural gas storage capacity
Octane enhancement facility
25 natural gas processing plants
One of the largest inland tank barge companies in U.S.
All rights reserved. Enterprise Products Partners L.P. 5
Quantifying a Supportive GP
Large Ownership of LP Units
One of the largest
Dan Duncan,
EPCO & Affiliates ownership positions by
172.6MM EPD LP Units
management in the sector
108.7MM EPE LP Units
Public
$6.6B of EPD LP units
0.01% G.P. 78.1% L.P. (cid:121)
30.4MM
Interest* Interest
EPE LP Units
No $4.8B of EPE LP units
(cid:121)
IDRs
21.9% L.P.
Interest
Enterprise GP
Holdings L.P.
(NYSE: EPE)
Public
427.4MM
27.0% L.P. 2% G.P. 3.4% L.P. EPD LP Units
Interest Interest* Interest
67.6% L.P.
Interest
Enterprise Products
Partners L.P.
(NYSE: EPD)
Note: Percent ownership as of March 2010.
•The 2% G.P. interest in EPD and the 0.01% G.P. interest in EPE represents a 100% ownership of the respective G.P.
•Based on EPD and EPE closing unit prices on March 12, 2010.
All rights reserved. Enterprise Products Partners L.P. 6
Quantifying a Supportive GP
Provided Economic Value & Financial Flexibility
$ in Millions
Action Value
Eliminated 50% GP IDRs in 2002 $ 593 … and counting
Purchase of New Issue LP Equity since 1999 950 ($490 in last 18 months)
Contributed 50% of GTM GP to EPD
for no consideration 4 60
Received 4.5 million non-distribution paying
EPD Class B units in TPP acquisition 41 … and counting
Total to date $ 2,044
All rights reserved. Enterprise Products Partners L.P. 7