Enterprise Products Partners L.P. · NYSE:EPD
Enterprise Products Partners L.P — Wachovia Pipeline and MLP Symposium (December 2006)
38 slides from Enterprise Products Partners L.P's conference presentation, Dec 5, 2006
Slide 1: Enterprise Products Partners L.P. Wachovia Pipeline and MLP Symposium
Enterprise Products Partners L.P. Wachovia Pipeline and MLP Symposium
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements and information that are based on Enterprises 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 anticipat
Slide 3: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures This presentation utilizes the Non-GAAP financial measures of Gross Operating Margin, EBITDA, Distributable Cash Flow and Consolidated EBITDA. In general, we define Gross Operating Margin as operating income before (i) depreciation, amortization and accretion expen
Slide 4: Overview
Overview Enterprise Products Partners L.P. (EPD) is one of the largest publicly traded energy partnerships serving producers and consumers of natural gas, natural gas liquids (NGLs) and crude oil Enterprise value of approximately $17 billion Equity market capitalization of over $12 billion Ranked 18
Slide 5: Key Credit Highlights
Key Credit Highlights Strategically located assets serving the most prolific supply basins and largest consuming regions of natural gas, NGLs and crude oil in the United States Leading business positions across energy value chain Over 90% of gross operating margin from diversified fee-based assets L
Slide 6: Premier Midstream Network in Key Regions
Premier Midstream Network in Key Regions 19,470 miles of natural gas pipeline 13,725 miles of NGL and petrochemical pipeline 870 miles of GOM crude oil pipeline 148 MMBbls of NGL storage capacity
Slide 7: Integrated Midstream Energy Services
Integrated Midstream Energy Services Fees are earned at each link of value chain
Slide 8: Leading Business Positions Across Midstream Energy Value Chain
Leading Business Positions Across Midstream Energy Value Chain
Slide 9: Diversified Businesses
Diversified Businesses NGL Pipelines and Services (54%) Natural gas processing plants and related marketing activities NGL fractionation plants NGL pipelines and storage Onshore Natural Gas Pipelines and Services (26%) Natural gas pipelines Natural gas storage facilities Offshore Pipelines and Servi
Slide 10: Drive Consistent Results
Drive Consistent Results Stability and consistency Gross operating margin Distributable cash flow Reflects benefits of Integrated value chain Fee-based / diversified businesses Proven ability to deliver stable cash flows in volatile energy environment (e.g., commodity prices, hurricanes) Record perf
Slide 11: Key Assets and Opportunities Cash Flow Visibility
Key Assets and Opportunities Cash Flow Visibility
Slide 12: Independence Hub Platform and Trail Pipeline
Independence Hub Platform and Trail Pipeline EPDs largest single project Hub (80% Enterprise) / Pipeline (100% Enterprise) Expanded Hub and Pipeline to 1 Bcf/d capacity Three additional discoveries since project was sanctioned Producers: Anadarko, Dominion, Hydro, Devon New 134-mile 24 gas pipeline
Slide 13: Texas Pipeline System
Texas Pipeline System 8,222-mile gathering and transportation system with 6.4 Bcf storage YTD 2006 throughput of 3.4 TBtu/d Connected to major supply basins North Texas (Barnett Shale) East Texas (Bossier) South Texas (Wilcox, Vicksburg) Permian Basin Connected to all major Texas Markets Well-positi
Slide 14: Rocky Mountain Assets
Rocky Mountain Assets NGL Pipelines Terminals Fractionation Facility Natural Gas Processing Plant Storage Facility exes Import / Export Terminal Mont eELVIEU apx+e| © Allrights reserved. Enterprise Products Partners L.P 14
Slide 15: Jonah Gas Gathering System
Jonah Gas Gathering System Jonah Gas Gathering System 600 miles of pipe; 900 wells connected Volumes increased to 1.5 Bcf/d from 450 MMcf/d in 2001 Production expected to grow to 3.3 Bcf/d Volumes supply EPDs Pioneer processing plants Joint Venture with TEPPCO EPD expected to have approximately 20%
Slide 16: New Processing Plants
New Processing Plants Existing Silica Gel Plants Integrated to Jonah Gas Gathering System EPD purchased 300 MMcf/d Plant in 1Q06 Completed expansion to 600 MMcf/d in 2Q 2006 New Cryogenic Plant Supported by long-term processing contracts with EnCana and Ultra 650 MMcf/d, up to 30 MBPD of capacity Co
Slide 17: Mid-America Pipeline (MAPL) Phase I Expansion Project
Mid-America Pipeline (MAPL) Phase I Expansion Project MAPL Rocky Mountain pipeline flowed at 91% of 225 MBPD capacity YTD 2006 Obtained long-term (10 20 years) shipper dedication agreements Phase I expansion increases capacity by 50 MBPD of mixed NGLs Expected completion in phases 30 MBPD in Decembe
Slide 18: Hobbs Fractionator
Hobbs Fractionator EPD-controlled NGL fractionation volumes consistently exceeded EPDs capacity at Mont Belvieu in 2005 requiring offloads to third parties Building 75 MBPD Hobbs fractionator at the interconnect of MAPL and Seminole pipelines Supplied by growing Rockies NGL production including up t
Slide 19: Major Organic Growth Projects
Major Organic Growth Projects Expected Start Dates and Cumulative Investment
Slide 20: Financial Overview
Financial Overview © Allrights reserved. Enterprise Products Partners LP
Slide 21: Financial Objectives
Financial Objectives Maintain a strong balance sheet and credit metrics that support investment grade credit ratings Key financial objective since IPO Increase cash flows from fee-based businesses Prudently invest to expand the partnership through organic growth, acquisitions and joint ventures with
Slide 22: History of Financial Discipline
History of Financial Discipline Financial discipline while executing EPDs growth strategy Financed 57% of $12.4 billion in capital investment since 1999 with equity Retired $1.2 billion acquisition term loan used to finance the acquisition of the Mid-America and Seminole Pipelines in less than 7 mon
Slide 23: History of Financial Discipline: Funding Growth with Equity
History of Financial Discipline Funding Growth with Equity (1) Capital investment includes the capital expenditures, cash used for business combinations and asset purchases, investments in and advances to unconsolidated affiliates, and acquisition of intangible asset amounts as reflected on our Stat
Slide 24: EPD Completed Largest Equity Offerings Since 2001
EPD Completed 5 of 6 Largest Equity Offerings Since 2001
Slide 25: Management's Interest Aligned with Debt and Equity Investors
Managements Interest Aligned with Debt and Equity Investors EPCO has consistently supported growth in EPD Purchased $53 million of new equity in August 2006, and approx. $450 million since IPO Capped GPs incentive split at 25% for no consideration Contributed half of GTM GP to EPD for no considerati
Slide 26: Realizing Benefits of Eliminating GP's 50% Splits
Realizing Benefits of Eliminating GPs 50% Splits
Slide 27: History of Financial Discipline: Managing Distributable Cash Flow
History of Financial Discipline Managing Distributable Cash Flow Significant Distributable Cash Flow Reinvested in Partnership
Slide 28: Strong Financial Position at September 30, 2006
Strong Financial Position at September 30, 2006
Slide 29: Issuance of Hybrids Provides Additional Financial Flexibility
Issuance of Hybrids Provides Additional Financial Flexibility Description $550 Million Principal Amount Long-Term Subordinated Notes (LoTSSM) 60 Yr. Maturity; Fixed coupon 8.375% first 10 yrs Partial equity treatment by rating agencies 75% Fitch; 50% Moodys and S and P Allow 10 15% of book capitaliz
Slide 30: Front-End Loaded Equity Capital for Growth
Front-End Loaded Equity Capital for Growth Capital Expenditures in 2006 and 2007 2006 and 2007 represents a major construction phase with a growth capital budget of $3.5 billion EPD has been proactive in financing the equity component of these expenditures 67% of 2006 and 40% of combined 2006/2007 c
Slide 31: BBB- in 2006? You Gotta Believe!
BBB- in 2006? You Gotta Believe!
Slide 32: Non-GAAP Reconciliations
Non-GAAP Reconciliations © Allrights reserved. Enterprise Products Partners LP
Slide 33: Non-GAAP Reconciliations: Gross Operating Margin by Segment
Non-GAAP Reconciliations Enterprise Products Partners L. Gross Operating Margin by Segment (Dollars in 000s) For the Quarterly Petiod 30.05 4005 10 06 20 06 30.06 Gross operating margin by segment NGL Pipelines & Services $153,760 $§ 152.314 $170,950 $146,414 § 232,037 Onshore Natural Gas Pipelines
Slide 34: Non-GAAP Reconciliations: Distributable Cash Flow
Non-GAAP Reconciliations Enterprise Products Partners LJ Distributable Cash Flow (Dollars in 000s, Unaudited) For the Quartetly Period, 3005 4005 1006-2006 «3006 AAP "fo GAAP" " and GAAP" A Net Income $131,169 § 108424 $193,777 $126,295 § 208,302 Adjustments to derve Distributable Cash Flow: (add or
Slide 35: Non-GAAP Reconciliations: EBITDA
Non-GAAP Reconciliations Enterprise Products Partners LP. Nine Months EBITDA (Dollars in 000s, Unaudited) Ended June 30, 2006 Reconciliation of Non-GAAP "EBITDA" to GAAP ‘Net Income" and BAA ‘N mn A : Net Income § 468,374 Additions to net income to derive EBITDA Add interest expense (including relat
Slide 36: Non-GAAP Reconciliations: Consolidated EBITDA
Non-GAAP Reconciliations Enterprise Products Partners LP. Consolidated EBITDA (Dollars in 000s, Unaudited) 2A DA" to GAAP * Net incorre (1) Adjustments to net income to derive Consotitated EBITDA (acid or subtract as indicated by sign of nurmbey. ‘Add/Deduct equity in (income) lass of unconsolidated
Slide 37: Appendix
Appendix © Allrights reserved. Enterprise Products Partners LP.
Slide 38: Strong Financial Position at September 30, 2006
Strong Financial Position at September 30, 2006
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