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Enterprise Products Partners LP Analyst Conference Houston March 20, 2012 PDF

160 Pages·2012·16.73 MB·English
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Preview Enterprise Products Partners LP Analyst Conference Houston March 20, 2012

Enterprise Products Partners L.P. Analyst Conference Houston March 20, 2012 All rights reserved. Enterprise Products Partners L.P. 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,” “seek,” “goal,” “estimate,” “forecast,” “intend,” “could,” “should,” “will,” “believe,” “may,” “potential” and similar expressions and statementsregarding our plans and objectives forfutureoperations,areintended to identifyforward-looking statements. Although Enterprise and its general partner believe that such expectations reflected in such forward-looking statements are reasonable, neither Enterprise 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, Enterprise’s actual results may vary materially from those anticipated, estimated, projected or expected. Among thekey riskfactorsthatmay have a directbearing on Enterprise’s financial position,resultsof operationsand cash flows are:  changesindemandforandproductionofnaturalgas,NGLs,crudeoil,petrochemicalsandrefinedproducts;  adecreaseindemandforNGLproductsbythepetrochemical,refiningorheatingindustries;  competitionfromthirdpartiesinEnterprise’smidstreamenergybusinesses;  Enterprise’sdebtlevelmaylimititsfuturefinancialflexibility;  operatingcashflowsfromEnterprise’scapitalprojectsmaynotbeimmediate;  a natural disaster, catastrophe, terrorist attack or similar event could result in severe personal injury, property damage and environmental damage,whichcouldcurtailEnterprise’soperations;  the imposition of additional governmental regulations that cause delays or deter new oil and gas exploration and production activities and thus reducethelevelofvolumesthatEnterpriseprocesses,stores,transportsorotherwisehandles;  newenvironmentalregulationsthatlimitEnterprise’soperationsorsignificantlyincreasesitsoperatingcosts;and  the tax treatment of publicly traded partnerships or an investment in Enterprise common units could be subject to potential legislative, judicial or administrativechangesanddifferinginterpretations,possiblyonaretroactivebasis,whichcouldimpactthevalueofitslimitedpartnerinterests. The foregoing discussion of important factors may not be all-inclusive and Enterprise provides additional cautionary discussion of risks and uncertainties under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in its recent filings with the U.S. Securities and Exchange Commission. You should not put undue reliance on any forward-looking statements. All forward-looking statements attributable to Enterprise or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements contained herein, in such filings and in its future periodic reports filed with the U.S. Securities and Exchange Commission. Enterprise has no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events orotherwise. All rights reserved. Enterprise Products Partners L.P. 2 Meeting Agenda Michael Creel – Welcome and Opening Remarks 1. Jim Teague – Industry Overview and Fundamentals 2. Tony Chovanec – Fundamentals / Supply Appraisal Overview 3. Jerry Cardillo – Propylene and Marine Services 4. Mark Hurley – Crude Oil and Offshore Business 5. Chris Skoog – Onshore Natural Gas Pipeline Services and Marketing 6. Jim Collingsworth – FERC Regulated Onshore Pipelines 7. Tom Zulim – Unregulated NGL Business 8. Lynn Bourdon – NGL, C Olefins and Refined Products Marketing Business 9. 4 Ivan Zirbes – Safety and Training 10. Randy Fowler – Financial Overview 11. Appendix and Non-GAAP Reconciliations 12. All rights reserved. Enterprise Products Partners L.P. 3 Welcome and Opening Remarks Michael A. Creel President and CEO All rights reserved. Enterprise Products Partners L.P. Safety First Safety is a core value at Enterprise Personal responsibility for safety is clearly communicated to employees and contractors Message reiterated daily Safety Leadership Summit Meetings Safety Leadership Council Work safe, work smart, work hard All rights reserved. Enterprise Products Partners L.P. 2 EPD Portfolio of Integrated Assets Major Asset Overview 50,600 miles of natural gas, NGL, crude oil, refined 20 NGL and propylene fractionators products and petrochemical pipelines 6 offshore hub platforms 190 MMBbls of NGL, refined products and crude oil & NGL import / export terminals 14 Bcf of natural gas storage capacity Butane isomerization complex; octane enhancement 24 natural gas processing plants facility; high-purity isobutylene facility Note: Does not include assets of Energy Transfer Equity, L.P. in which EPD owns a noncontrollingequity interest effective with the merger of Enterprise GP Holdings L.P. (the “Holdings Merger”). All rights reserved. Enterprise Products Partners L.P. 3 Strong Operating Performance(1)… Natural Gas Pipeline Volumes Liquids Pipeline Volumes 15 14.3 4,200 4,181 13 12.7 3,990 4,000 4,000 11.9 11.0 11 3,800 d 10.1 u/ 9.4 PD 3,704 Bt B T 9 M 3,600 3,574 Offshore 3,406 7 3,400 Onshore 5 3,200 2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011 NGL / Propylene Fractionation & Butane Equity NGL Production 749 750 Isomerization Volumes & Fee-based Processing 121 125 117 116 4 108 651 650 626 on 100 3.8 3.5 ng 585 ucti 88 essi D 563 d c P o 75 3 o MB550 L Pr BPD 63 2.9 cf/dd Pr 461 y NG M 50 2.6 2.5 2.7 2.5 Bbase 450 quit 25 2.2 2 ee- E F 350 0 1.5 2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011 (1)Recast to include TEPPCO for all periods prior to the TEPPCO Merger, which was completed on October 26, 2009. All rights reserved. Enterprise Products Partners L.P. 4 …Led to Record Financial Results Total Growth Capital Spending(1) Gross Operating Margin(2) Adjusted EBITDA(2) $4.0 $4.0 $3.9 $4.0 $4.0 $3.6 $3.5 $3.5 $3.3 $3.3 $3.1 $3.0 $2.9 $3.0 $2.8 $3.0 $2.8 $2.6 $2.6 $ Billions $2.5 $2.5 $ Billions $2.0 $1.8 $2.0 $ Billions $2.0 $1.7 $2.0 $2.0 $1.8 $1.0 $1.0 $1.5 $1.5 $1.0 $0.0 $0.0 2006 2007 2008 2009 2010 2011 2012 2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011 Estimated Distributable Cash Flow Distributions Declared Retained DCF / Coverage $4.0 $2.50 $2.44 $3.7 $1,800 (Retained ≈$2.8B since 2008) $1,712(3) $2.32 1.9x $2.25 $2.20 $1,500 $3.0 d e $2.08 ar $2.3 ecl $2.00 $1.95 $1,200 s D $ Billion $2.0 $1.0 $1.0 $1.4 $1.6 Distributions $1.75 $1.83 $ Millions $$690000 $480 $1.0 $1.50 $314 $264 1.3x $300 $98 1.3x $26 1.2x $0.0 $1.25 $0 1.1x 2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011 (1) Total growth capital spending also includes capital spent for business combinations. (2) Total Gross Operating Margin and Adjusted EBITDA have been presented as if EPD were Enterprise GP Holdings L.P. for all periods prior to the Holdings Merger, which was completed on November 22, 2010. (3) Includes $1.0 billion of proceeds from asset sales. Coverage would have been 1.3x excluding the proceeds from asset sales. All rights reserved. Enterprise Products Partners L.P. 5 Geographic and Business Diversification Provide Multiple Earnings Streams NGL Pipelines & Services (56%) $3.9 Billion Gross Operating Margin  Natural gas processing & related NGL marketing activities For year ended December 31, 2011  NGL fractionation plants Approximately 73% Fee Based  NGL import / export terminals  NGL pipelines and storage Onshore Natural Gas Pipelines & Services (18%)  Natural gas pipelines & related marketing 18%  Natural gas storage facilities Petrochemical & Refined Products Services (14%)  Refined products and petrochemical pipelines 6%  Butane isomerization facilities  Propylene fractionation facilities 56% 6%  Octane enhancement and high-purity isobutylene facilities  Marine terminals & transportation Onshore Crude Oil Pipelines & Services (6%) 14%  Crude oil pipelines, storage terminals & related marketing Offshore Pipelines & Services (6%)  Natural gas pipelines  Crude oil pipelines  Platform services Note: Does not include Gross Operating Margin from “Other Investments” for EPD’s equity ownership in Energy Transfer Equity,L.P. All rights reserved. Enterprise Products Partners L.P. 6 Continually Evaluating Emerging Shale / Non-Conventional Plays Williston Basin Appalachian Basin Bakken Appalachian Basin Marcellus Utica Jonah Powder River Basin Pinedale Niobrara Michigan Basin Uinta Basin Antrim Mancos Denver Basin Niobrara Michigan Basin Utica Arkoma Basin Woodford Anadarko Basin Piceance Basin Hz Mississippian Mancos Arkoma Basin Anadarko Basin Fayetteville Woodford Illinois Basin San Juan Basin New Albany Fort Worth Basin Mancos Barnett Primarily Rich Gas Permian Basin Bone Spring Primarily Dry Gas Avalon & Wolfcamp Black Warrior Basin Floyd & Chattanooga Delaware Basin Barnett / Woodford North Louisiana, South Louisiana East Texas Haynesville Tuscaloosa Marine South Texas & Bossier Eagle Ford & Pearsall All rights reserved. Enterprise Products Partners L.P. 7

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a decrease in demand for NGL products by the petrochemical, refining or heating industries;. • competition Source: Drilling Info, Baker Hughes
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