Energy Transfer LP · NYSE:ET
Energy Transfer LP — Energy Transfer Partners — Non-Deal Roadshow (September 2010)
30 slides from Energy Transfer LP's roadshow presentation, Sep 14, 2010
Slide 1: Morgan Stanley Road Show
Energy Transfer 2009 Analyst Presentation Morgan Stanley Road Show November 18, 2009 September 14, 2010
Slide 2: Legal Disclaimer
Legal Disclaimer This presentation may contain statements about future events, outlook and expectations of Energy Transfer Partners, L.P. (ETP), all of which are forward-looking statements. Any statement in this presentation that is not a historical fact may be deemed to be a forward-looking stateme
Slide 3: ETP Overview
ETP Overview • ETP is one of the largest publicly traded MLPs – $1.48 billion of Adjusted EBITDA for the year ended December 31, 2009 – $841.5 million of Adjusted EBITDA for the six months ended June 30, 2010 • Broadly diversified asset base – ETP owns and operates approximately 17,500 miles of intr
Slide 4: Energy Transfer Partners' Asset Overview
Energy Transfer Partners’ Asset Overview • Four business segments: Intrastate Transportation & Storage, Interstate Transportation, Midstream and Retail Propane • Approximately 17,500 miles of natural gas gathering and transportation pipelines • 3 natural gas storage facilities with 74 Bcf working ca
Slide 5: ETP's 2010 Highlights/Developments to Date
ETP’s 2010 Highlights/Developments to Date Adjusted EBITDA for the six months ended June 30, 2010 was $841.5 million, an increase of $67.4 million as compared to the six months ended June 30, 2009 Fayetteville Express Pipeline and Tiger Pipeline are under construction, ahead of schedule, and bel
Slide 6: Focused on Growth
Focused on Growth Fayetteville Express Pipeline Tiger Pipeline Other Northern Louisiana Assets/Projects East Texas Pipeline (Lumberjack Pipeline) Eagle Ford Shale Marcellus Shale Barnett Shale (Ft. Worth Basin) ETP is focused on significant growth throughout North America including l
Slide 7: FEP & Tiger Overview
FEP & Tiger Overview We expect both projects to go in service ahead of schedule and with project costs below original estimates Both are large interstate pipelines backed by long-term fee based contracts Construction costs for both projects are locked in with fixed price contracts FEP is exp
Slide 8: Fayetteville Express Pipeline (FEP)
Fayetteville Express Pipeline (FEP) • 50/50 joint venture with KMP • ETP managing construction and will operate • 185 mile 42-inch interstate pipeline originating in the Fayetteville Shale and extending through Arkansas and into Mississippi • Initial capacity of 2.0 Bcf/d • 1.85 Bcf/d sold under 10-
Slide 9: Tiger Pipeline
Tiger Pipeline • 100% owned and operated by ETP • 175 mile 42-inch interstate pipeline originating near Carthage, Texas and ending near Delhi, Louisiana • 2.4 Bcf/d of capacity sold under 10-15 year agreements • Includes 0.4 Bcf/d sold under planned expansion • Project costs currently expected to be
Slide 10: Other Northern Louisiana Assets/Projects
Other Northern Louisiana Assets/Projects • ETP Northern Louisiana assets are currently gathering and transporting over 250 MMcf/d and expect to exceed 300 MMcf/d by the end of 2010; will have multiple interconnects with Tiger Pipeline. 10
Slide 11: East Texas Pipeline (Lumberjack Pipeline)
East Texas Pipeline (Lumberjack Pipeline) • 62 miles of predominately 24 and 20 inch pipe expected to be completed in Q4 2010; anticipate volumes to exceed 100 MMcf/d by end of 1Q 2011 • Will connect into our existing HPL system 11
Slide 12: Eagle Ford Shale
Eagle Ford Shale • 50 mile pipeline of predominately 24- inch pipe with a capacity in excess of 350 MMcf/d • Will connect into our existing HPL system 12
Slide 13: Marcellus Shale
Marcellus Shale • Approximately 13 miles of 20- inch pipe and almost 7 miles of 12-inch pipe • Anticipate volumes to be 100 MMcf/d by the end of 1Q 2011 13
Slide 14: Barnett Shale (Ft. Worth Basin)
Barnett Shale (Ft. Worth Basin) 14
Slide 15: ETP is focused on Growth – Throughout North America
ETP is focused on Growth – Throughout North America • See Supplemental Information for additional pipeline and propane information 15
Slide 16: Financial Overview
Financial Overview ENERGY TRANSFER
Slide 17: Financial Objectives
Financial Objectives Continue growth in distributable cash flow Target projects/assets that provide for attractive rates of return and that integrate with our existing asset base Maintain attractive cash flow profile Generate stable cash flows Current growth projects supported by long-term
Slide 18: ETP Operating Income By Segment
ETP Operating Income By Segment • Fee-based nature of operating income from intrastate and interstate segments provides cash flow stability – As Fayetteville Express Pipeline and Tiger Pipeline come online, operating income and distributable cash flow derived from long-term contracted capacity in th
Slide 19: Commodity Hedging Activities
Commodity Hedging Activities We have entered into the following financial hedges in order to protect against volatility in natural gas prices. Percentages refer to the percentage of estimated volumes exposed to natural gas price risk.(1) NYMEX Hedges Collar Hedges Remainder 9% with average floor pri
Slide 20: ETP's Distribution Per Unit
ETP’s Distribution Per Unit end of 2005 C A GR since $4.00 13% $3.575 $3.575 $3.575 $3.575 $3.575 $3.575 $3.575 $3.575 $3.575 $3.475 $3.230 $3.300 $3.375 $3.150 $3.000 $3.080 Annualized Distribution per Unit $3.00 $2.550 $2.350 $2.200 $2.000 $2.00 $1.00 $0.00 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 4Q 1Q 2Q 3Q 4
Slide 21: ETP's Investment Considerations
ETP’s Investment Considerations • Large, diversified assets well positioned in markets Large – ETP is one of the largest MLPs with $9.0 billion market cap Diversified – 17,500 miles of intrastate and interstate pipeline with an additional 360 miles of Asset Base interstate pipeline to be completed b
Slide 22: Questions & Answers
Questions & Answers ENERGY TRANSFER
Slide 23: Supplemental Information
Supplemental Information 23
Slide 24: Intrastate Transportation and Storage
Intrastate Transportation and Storage Largest intrastate pipeline system in the United States with nearly 8,000 miles of transportation pipelines and 3 natural gas storage facilities Objective of the pipeline system is to move natural gas from major producing basins such as: Barnett Shale Bo
Slide 25: Intrastate Transportation and Storage - cont'd
Intrastate Transportation and Storage - cont’d Bi-directional flow capabilities across the state Integrated with our gathering and processing assets providing full midstream services to our customers in addition to commercial and operational flexibility: Provides blending opportunities for shi
Slide 26: Midstream Operations
Midstream Operations Approximately 7,000 miles of natural gas gathering pipelines, 3 natural gas processing plants, 15 natural gas treating facilities and 11 natural gas conditioning facilities Operations are concentrated in the Austin Chalk, the Barnett Shale, the Bossier Sands, the Eagle Ford
Slide 27: Interstate Pipelines – In Operation
Interstate Pipelines – In Operation Transwestern Pipeline (“TW”) • Approximately 2,700 miles with a capacity of 2.1 Bcf/d • Provides access to Permian, San Juan and Anadarko production basins • Bi-directional system can flow natural gas either west to CA and AZ or east to TX and Mid-Continent market
Slide 28: Retail Propane
Retail Propane Segment Overview • 3rd largest marketer in the United States • Presence in 41 States • 440 locations • 1.2 million customers • 4,500 employees • National in scope – local in character – retain local brand name marketing • Operations focused in above average population growth areas • G
Slide 29: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Year Ended Year Ended Six Months Six Months Twelve Months December 31, December 31, Ended June 30, Ended June 30, Ended June 30, 2008 2009 2009 2010 2010 Net income $ 866,023 $ 791,542 $ 457,905 $ 282,954 $ 616,591 Interest expense, net of interest capitalized 265,701
Slide 30: Distributable Cash Flow Reconciliation
Distributable Cash Flow Reconciliation Year Ended Year Ended Six Months Six Months Twelve Months December 31, December 31, Ended June 30, Ended June 30, Ended June 30, 2008 2009 2009 2010 2010 Net income $ 866,023 $ 791,542 $ 457,905 $ 282,954 $ 616,591 Amortization of finance costs charged to inter
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