Enterprise Products Partners L.P. · NYSE:EPD
Enterprise Products Partners L.P — Bear Stearns Fixed Income Conference 2007
31 slides from Enterprise Products Partners L.P's conference presentation, May 15, 2007
Slide 1: Bear Stearns Fixed Income Conference
Enterprise Products Partners L.P. Bear Stearns Fixed Income Conference May 15, 2007 Michael A. Creel Executive Vice President & CFO
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements and information that are 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 anticipa
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 and Consolidated EBITDA and makes references to Distributable Cash Flow. In general, we define Gross Operating Margin as operating income before (i) depreciation, amortization and
Slide 4: Overview
Overview EPD is one of the largest publicly traded partnerships with an equity market capitalization of more than $14 billion, assets of $14 billion and an enterprise value of approximately $20 billion Delivered record performance in 2006 EPD owns and operates one of North America’s largest fully in
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 Large portfolio of organic growth projects with potentially higher ret
Slide 6: Integrated Midstream Energy Value Chain
Integrated Midstream Energy Value Chain
Slide 7: Premier Midstream Network in Key Regions
Premier Midstream Network in Key Regions
Slide 8: Diversified Businesses Gross Operating Margin
Diversified Businesses Gross Operating Margin LTM March 31, 2007 NGL Pipelines & Services (56%) 13,295 miles of NGL pipelines 162 MMBbls of NGL & petrochemical storage capacity 25 natural gas processing plants (Including Pioneer & Meeker) 7 NGL fractionation facilities Onshore Natural Gas Pipelines
Slide 9: Consistent Results from Diversified Businesses
Consistent Results from Diversified Businesses (1) Gross operating margin for 2Q05 was negatively impacted by an $11MM charge for costs of refinancing project finance debt for Cameron Highway. (2) “Consolidated EBITDA” as defined and used in leverage ratio financial covenant per EPOLP’s bank credit
Slide 10: Enterprise GP Holdings (EPE) Recent Transactions
Enterprise GP Holdings (“EPE”) Recent Transactions
Slide 11: Key Assets and Opportunities Cash Flow Visibility
Key Assets and Opportunities Cash Flow Visibility
Slide 12: Access to Supply Growth Drives Expansion Strategies
Access to Supply Growth Drives Expansion Strategies
Slide 13: Independence Project
Independence Project 1 Bcf/d capacity Hub platform 134-mile, 24” gas pipeline, 1 Bcf/d capacity 10 initial fields connecting 17 wells 210 miles of subsea flowlines Hub water depth of approximately 8,000 feet
Slide 14: Independence Hub Platform & Trail Pipeline
Independence Hub Platform & Trail Pipeline World’s deepest platform in 8,000 ft. of water Largest Gulf of Mexico gas processing facility at 1 Bcf/d of capacity World’s deepest pipeline in-line future subsea tie-in structure Project expected to increase Gulf of Mexico gas production by 12% Should pro
Slide 15: Natural Gas Storage Growth Opportunities
Natural Gas Storage Growth Opportunities
Slide 16: Major Organic Growth Projects Expected Start Dates
Major Organic Growth Projects Expected Start Dates
Slide 17: Financial Overview
Financial Overview © Allrights reserved. Enterprise Products Partners LP.
Slide 18: 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 19: History of Financial Discipline
History of Financial Discipline Financial discipline while executing EPD’s growth strategy Financed 56% of $14.2 billion in capital investment since 1999 with equity (including estimate for 2007) Retired $1.2 billion acquisition term loan used to finance the acquisition of the Mid-America and Semino
Slide 20: EPD Completed Largest Equity Offerings Since 2001
EPD Completed 4 of 5 Largest Equity Offerings Since 2001
Slide 21: History of Financial Discipline: 56% of Growth Investment Funded with Equity
History of Financial Discipline 56% of Growth Investment Funded with Equity (1) Growth capital investment includes the capital expenditures, cash used for business combinations, investments in and advances to unconsolidated affiliates, and acquisition of intangible asset amounts as reflected on our
Slide 22: Realizing Benefits of Eliminating GP's 50% Splits
http://schemas.microsoft.com/office/word/2003/wordml013fRealizing Benefits of Eliminating GP’s 50% Splits “Landmark” action taken by EPD’s GP in December 2002 to eliminate GP’s 50% IDR for no consideration is beginning to provide significant benefits to debt and equity investors 1Q 2007 annualized s
Slide 23: Managing Distributable Cash Flow
History of Financial Discipline Managing Distributable Cash Flow 14% DCF Reinvested in Partnership Since 1999 12% DCF Reinvested in Partnership Since GTM Merger
Slide 24: Issuance of Hybrids Provides Additional Financial Flexibility
Issuance of Hybrids Provides Additional Financial Flexibility Description $550 Million Principal Amount Long-Term Junior Subordinated Notes - 60 Year Maturity; Fixed coupon 8.375% first 10 years Partial equity treatment by rating agencies 75% Fitch; 50% Moody’s and S&P Allow 10-15% of book capitaliz
Slide 25: Additional Capacity to Issue Hybrids
Additional Capacity to Issue Hybrids
Slide 26: Strong Financial Position at March 31, 2007
Strong Financial Position at March 31, 2007
Slide 27: Outlook
Outlook Another year of strong operating fundamentals Significant new projects begin operations $44 million of annualized demand charges net to EPD at Independence Hub platform began mid-March 2007 First production to Independence Hub and Trail and majority of other projects expected to commence in
Slide 28: Non-GAAP Reconciliations
Non-GAAP Reconciliations © Allrights reserved. Enterprise Products Partners LP.
Slide 29: Non-GAAP Reconciliations: Gross Operating Margin
Non-GAAP Reconciliations Enterprise Products Pariners LP. Gross Operating Margin (Dollars in 0005, Unaudited) ‘Gress operating margin by segment NGL Pipelines & Servioes Onshore Natural Ga Pipelines & Services Oitshore Pipelines & Servioes Petrochemical Services Total segment gross operating margin
Slide 30: Non-GAAP Reconciliations: Consolidated EBITDA
Non-GAAP Reconciliations Enterprise Products Partrers LP. Censalidated EBITDA (Dallrsin 000s, Uraucted) Forthe Quarterly Peried qe aa Sag toe 208 SaaS saa“ Oh GAAP - and GAAP ‘letcash fows proved by operating aches” Netincom 1) S 10987 § 7102 $ 191944 § lOBAOT $ 195370 § 1268%0 § MESH s 199218 § 112
Slide 31: Non-GAAP Reconciliations: Adjusted Debt to Consolidated EBITDA
Non-GAAP Reconciliations Enterprise Products Patners LP. Rito of Bdjisted Det to Corcaidated EBITOR (Daas in 000s, Uraucted) AAP Last Twelve onthe Ende Maron 21,2007 arch 21,2007 E Consolidated indebtedness (xine ony) 8 serene Netineame (1) 8 s702 ‘elustnents sonslatediaebtee seo derive Adjusted deb
Enterprise Products Partners — Bear Stearns Fixed Income Conference 2007 on 6ix