Energy Transfer LP · NYSE:ET
Energy Transfer LP — Q1 2020 Earnings Presentation
11 slides from Energy Transfer LP's earnings presentation, May 11, 2020
Slide 1: First Quarter 2020 Earnings
ENERGY TRANSFER First Quarter 2020 Earnings May 11, 2020
Slide 2: Forward-Looking Statements / Legal Disclaimer
FORWARD-LOOKING STATEMENTS / LEGAL DISCLAIMER Management of Energy Transfer LP (ET) will provide this presentation in conjunction with ET’s 1st quarter earnings conference call. On the call, members of management may make statements about future events, outlook and expectations related to Panhandle
Slide 3: Q1 2020 Highlights
Q1 2020 HIGHLIGHTS Operational Financial Strategic Reported record NGL fractionation Adjusted EBITDA: $2.64B Issued $4.5B of Senior Notes and and transportation volumes $1.6B of Preferred Units in - Impacted by $213mm January 2020 Midstream gas gathering, inventory valuation Intrastate natur
Slide 4: 2020 EBITDA Outlook
2020 EBITDA OUTLOOK 2020E EBITDA ~$10.6-$10.8 billion 2019 to 2020 Drivers 2020E Adjusted EBITDA Breakout + SEMG integration/synergies Commodity - Legacy contracts/renewals Spread1 2.5-5% 2.5-5% - Crude/gas spreads + Organic Projects Fee2 +Mariner East system 90-95% +Fractionation plants (VI, VII) +
Slide 5: Earnings Supported by Predominantly Fee-Based Contracts
EARNINGS SUPPORTED BY PREDOMINANTLY FEE-BASED CONTRACTS Segment1 Contract Structure Strength Q1 2020 Adjusted EBITDA by Segment1 More than 9,500 miles connecting Permian, Fees from transporting SUN, USAC Crude Oil Bakken and Midcon Basins and terminalling & Other to U.S. markets, including 13% Crude
Slide 6: Revised Capex Outlook – A Disciplined, Quicker Cash Generation Cycle
REVISED CAPEX OUTLOOK – A DISCIPLINED, QUICKER CASH GENERATION CYCLE 2020E Growth Capital: ~$3.6 billion (Previously ~$3.9-$4.1 billion) For 2020, evaluating another $300-400 million for potential reduction • Lone Star Express Expansion • Mariner East system (ME2, ME2X) • Nederland LPG facilities •
Slide 7: Liquidity & Senior Debt Maturities
LIQUIDITY & SENIOR DEBT MATURITIES1 ET Senior Debt Maturities ($MM) $3,050 $1,400 $0 2020 2 2021 2022 In January 2020, completed registered offering of $4.5 billion of senior notes, as well as $1.6 billion of Preferred Units • Aggregate proceeds were used to redeem all 2020 senior note maturities
Slide 8: Significant Management Ownership
SIGNIFICANT MANAGEMENT OWNERSHIP In 2020, Energy Transfer insiders and independent board members have purchased ~10.6 million units, totaling ~$110 million CEO: ~7.9mm units; ~$91mm Board of Directors: ~2.5mm units; ~$18mm CFO: ~87k units; ~$595k COO: ~53k units; ~$375k CCO: ~24k units; ~$194k Total
Slide 9: Fully Integrated Franchise from Wellhead to Water
FULLY INTEGRATED FRANCHISE FROM WELLHEAD TO WATER Canada Assets Marcus Hook Asset Overview Energy Transfer Terminals Marcus Hook Terminal Eagle Point Terminal Nederland Terminal Houston Terminal Nederland Terminal Midland Terminal Houston Terminal Cushing Terminal Recently In-service & Announced Gro
Slide 10: Delivering on Project Backlog
DELIVERING ON PROJECT BACKLOG PROJECT SCOPE IN-SERVICE TIMING NGL & Refined Products Mont Belvieu’s Frac VI 150 Mbpd fractionator at Mont Belvieu complex In service Q1 2019 Mont Belvieu’s Frac VII 150 Mbpd fractionator at Mont Belvieu complex In service Q1 2020 Mont Belvieu’s Frac VIII 150 Mbpd
Slide 11: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION 11 Distribution coverage ratio for the three months ended March 31, 2020 is calculated as Distributable Cash Flow attributable to partners, as adjusted, divided by distributions expected to be paid to the partners of ET in respect of the first quarter of 2020, which expected