Enterprise Products Partners LP Analyst Conference Houston, Texas March 18, 2014

176 Pages·2014·27.38 MB·English

Enterprise Products Partners L.P.
Analyst Conference
Houston, Texas
March 18, 2014
All rights reserved. Enterprise Products Partners L.P.
Forward–Looking Statements
This presentation contains forward-looking statements based on the beliefs of the company,
as well as assumptions made by, and information currently available to our management
team. 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 statements regarding our plans and objectives for
future operations, are intended to identify forward-looking statements.
Although management believes that the expectations reflected in such forward-looking
statements are reasonable, it can give no assurance that such expectations will prove to be
correct. You should not put undue reliance on any forward-looking statements, which speak
only as of their dates. Forward-looking statements are subject to risks and uncertainties that
may cause actual results to differ materially from those expected, including insufficient cash
from operations, adverse market conditions, governmental regulations, the possibility that tax
or other costs or difficulties related thereto will be greater than expected, the impact of
competition and other risk factors discussed in our latest filings with the Securities and
Exchange Commission.
All forward-looking statements attributable to Enterprise or any person acting on our behalf
are expressly qualified in their entirety by the cautionary statements contained herein, in such
filings and in our future periodic reports filed with the Securities and Exchange Commission.
Except as required by law, we do not intend to update or revise our forward-looking
statements, whether as a result of new information, future events or otherwise.
All rights reserved. Enterprise Products Partners L.P. 2
Meeting Agenda
1. Michael Creel – Welcome and Opening Remarks
2. Jim Teague – Enterprise…Making a Difference
3. Tony Chovanec – Supply / Demand Fundamentals
4. Bill Ordemann – Crude Oil and Offshore
5. Keith Masterson – Natural Gas Assets and Marketing
6. Russ Kovin – Unregulated NGLs
7. Al Martinez – NGL Marketing and Supply
8. R.B. Herrscher – Petrochemicals and Refined Products
9. Mike Smith – Regulated Businesses
10. Jerry Cardillo – Transportation / Logistics
11. Leonard Mallett – Engineering and Major Projects Overview
12. Graham Bacon – Operations, Environmental, Health and Safety
13. Randy Fowler – Financial Overview
14. Appendix and Non-GAAP Reconciliations
All rights reserved. Enterprise Products Partners L.P. 3
Welcome and Opening Remarks
Mike Creel
Chief Executive Officer
All rights reserved. Enterprise Products Partners L.P.
Key Investment Considerations
EPD is one of the largest U.S. publicly traded energy
partnerships with an enterprise value of nearly $80 billion
 64th on Fortune 500
One of the largest integrated midstream energy systems
Diversified sources of cash flow
Clear visibility to growth with a history of successful
execution
One of the highest credit rated MLPs – Baa1 / BBB+
Simple investor-friendly structure
• No GP incentive distribution rights (IDRs) – lower cost of
capital
Consistent distribution growth: 38 consecutive quarters;
6.1% increase for 4Q 2013 vs. 4Q 2012
Significant insider ownership – management and affiliates
own >36% of EPD units outstanding
All rights reserved. Enterprise Products Partners L.P. 2
Simple is Better
EPCO &
Public
Affiliates
36.4% L.P. Non-economic GP 63.6% L.P.
Interest Interest
Enterprise Products
Partners L.P.
(NYSE: EPD)
Note: as of February 28, 2014
All rights reserved. Enterprise Products Partners L.P. 3
Geographic and Business Diversification
Provide Multiple Earnings Streams
(1)
$4.8 Billion Gross Operating Margin 4 Year Growth Capital Allocation 2013–2016E
For 12 months ended December 31, 2013 ≈$10.1 Billion
16% 19%
13%
52% 57%
22%
16%
2%
3%
NGL Pipelines & Services
Onshore Natural Gas Pipelines & Services
Petrochemical & Refined Products Services
Onshore Crude Oil Pipelines & Services
Offshore Pipelines & Services
(1)Growth capital projects either result in additional revenue from existing assets or from expansion of our asset base through construction of new facilities.
All rights reserved. Enterprise Products Partners L.P. 4
2013: Another Record Year
Successful Execution in Construction of Capital Projects
Since 2009, completed 70 major capital projects totaling ≈$10 billion of
gross investment approximately 3% under budget
4%
2%
2.6%
0%
t
e -1.0%
g
-2.0%
d
u -3.3%
B -2%

)
r
e
d
n -4%
U
-9.4% -9.3%
(

/

r -6% Excluding Texas Express
e
v and Eagle Ford pipelines
O
due to weather delays
%
-8%
-10%
-12%
2009 2010 2011 2012 2013
$Millions $562 $602 $2,373 $3,183 $3,168
All rights reserved. Enterprise Products Partners L.P. 5
2013: Another Record Year
Solid Operating Performance(1)…
16 Natural Gas Pipeline Volumes Liquids Pipeline Volumes
5.0 5.0
14.5
14.3
14 13.6
12.7 4.5
11.9 4.3
12 4.2
d D
TBtu/ Offshore n BP 4.0 4.0 4.0
10 o
Milli
Onshore 3.5
8
6 3.0
2009 2010 2011 2012 2013 2009 2010 2011 2012 2013
1,000 NGL / Propylene Fractionation &
Equity NGL Production & Fee-based Processing
Butane Isomerization Volumes
894 140 5
900 126
121
826 on 120 117 116 4.6 4.5 ng
MBPD780000 749 L ProductiBPD18000 3.8 41.041 34.5Bcf/dd Processi
651 GM 60 e
626 N s
y 40 2.7 3 ba
600 uit 2.9 e-
Eq 20 2.5 Fe
500 0 2
2009 2010 2011 2012 2013 2009 2010 2011 2012 2013
(1)Volumetric data for periods prior to 4Q 2009 include TEPPCO.
All rights reserved. Enterprise Products Partners L.P. 6
2013: Another Record Year
Led to Strong Financial Results
Gross Operating Margin Distributable Cash Flow (“DCF”)
$4.5
$5.0 $4.8 $4.1
$3.8 $3.8
$4.4
$4.5
$3.5
$3.9 $3.7
$4.0
s s
n n
o o
Billi $3.5 $3.3 Billi $2.5 $2.3 $2.8 $3.0
$ $2.9 $
$3.0 $1.6 $2.2
$1.5
$2.5
$2.0 $0.5
2009 2010 2011 2012 2013 2009 2010 2011 2012 2013
Retained DCF / Coverage(1)
$2.75 Distributions Declared $2.74 $2.0 (Retained ≈$5.4 Billion since 2009) $1.9(2)
(2)
$1.7
$2.57
1.9x
$1.6
$2.50 1.9x
$2.44 (2)
$1.3
nit $2.32 ons $1.2 1.5x
er U$2.25 $2.20 Billi $1.2
$ p $ $0.8 1.5x
$0.5(2) $0.9
1.4x
$2.00 $0.4 $0.3 1.3x $0.7
1.4x
$0.4
1.2x 1.2x
$0.0
$1.75
2009 2010 2011 2012 2013
2009 2010 2011 2012 2013 Non-recurring items
(1)Retained DCF represents the amount of distributable cash flow for each period that was retained by the general partner for reinvestment in capital projects and other reasons.
(2)Each period noted includes non-recurring transactions (e.g., proceeds from asset sales and property damage insurance claims and payments to settle interest rate hedges).
All rights reserved. Enterprise Products Partners L.P. 7