Energy Transfer LP · NYSE:ET
Energy Transfer LP — Energy Transfer Partners — Debt Investor Presentation (March 2009)
36 slides from Energy Transfer LP's debt investor presentation, Mar 24, 2009
Slide 1: Barclays Capital Fixed Income Presentation
Barclays Capital Fixed Income Presentation March 24, 2009
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 statem
Slide 3: Agenda
Agenda y Partnership Overview y Segment Highlights y Major Projects Update y Financial Overview y Key Takeaways/Credit Considerations 3
Slide 4: Partnership Overview
Partnership Overview • Energy Transfer Partners, L.P. (ETP) is the third largest Master Limited Partnership in the United States • ETP owns approximately 14,600 miles of intrastate pipeline in service with 250 miles of intrastate pipeline under construction, and 2,700 miles interstate pipeline in se
Slide 5: Pipeline Asset Map
Pipeline Asset Map wel ts Et R
Slide 6: Retail Propane Map
Retail Propane Map Retail Propane Locations 6 6
Slide 7: Corporate Structure
Corporate Structure Energy Transfer Equity, L.P. Public Unitholders 2% General Partner Interest 100% ETP IDRs 51% 39% ETP Common Units (62.5 Million Units) Energy Transfer Partners, L.P. Public Unitholders 61% Intrastate & Interstate Retail Midstream Propane 7 7
Slide 8: Segment Highlights
Segment Highlights 8
Slide 9: Intrastate Transportation & Storage
Intrastate Transportation & Storage Segment Overview y Largest intrastate pipeline system in the United States y Transports natural gas between major markets from various natural gas producing basins y Approximately 7,800 miles of intrastate natural gas transportation pipelines and three natural gas
Slide 10: Interstate Transportation
Interstate Transportation Segment Overview y Transwestern Pipeline y Connects natural gas producing regions of west Texas, eastern and northwest New Mexico, southern Colorado, Texas panhandle and western Oklahoma to demand areas in the western United States and at the Waha Hub y Midcontinent Express
Slide 11: Midstream
Midstream Segment Overview y Gathering, compression, treating, blending, Uinta Basin Piceance processing and marketing of natural gas y Operations in the Austin Chalk Basin, the Permian San Juan Basin Basin, the Barnett Shale, the Bossier Sands and Anadarko Basin the Uinta and Piceance Basins Fayett
Slide 12: Retail Propane
Retail Propane Segment Overview y One of the three largest retail propane marketers in the United States y Operations extend from coast to coast with concentrations in the western, upper midwestern, northeastern and southeastern regions of the United States y Seasonal business with geographic divers
Slide 13: Major Projects Update
Major Projects Update 13
Slide 14: 2008-2009 Major Projects
2008-2009 Major Projects In 2008, we completed more than 390 miles of large- diameter pipeline projects with an aggregate capacity of more than 4.3 Bcf/d: • 42” Southeast Bossier – 150 miles • 36” Paris Loop – 145 miles • 36” Maypearl to Malone – 25 miles • 42” Carthage Loop – 32 miles • 36” San Jua
Slide 15: Organic Growth Project Map
Organic Growth Project Map 15
Slide 16: Looking Ahead
Looking Ahead y Intrastate: y Texas Independence Pipeline y Interstate: y Midcontinent Express Pipeline (MEP) y Fayetteville Express Pipeline (FEP) y Tiger Pipeline 16
Slide 17: Texas Independence Pipeline
Texas Independence Pipeline - 42-inch pipeline - 160 miles - 1.1 Bcf/day of initial capacity - 1.75 Bcf/day of capacity with expansion - Expected in service Q3 2009 17 17
Slide 18: Midcontinent Express Pipeline (MEP)
Midcontinent Express Pipeline (MEP) - 50/50 Joint Venture with Kinder Morgan - 500 miles - Initial capacity of 1.5 Bcf/d expected in service Q2 2009 to Perryville with remaining in service to Transco 85 in Q3 2009 - Expansion capacity up to 0.3 Bcf/d expected in service Q4 2010 18 18
Slide 19: Fayetteville Express Pipeline (FEP)
Fayetteville Express Pipeline (FEP) - 50/50 Joint Venture with Kinder Morgan - 186 mile 42” interstate pipeline originating in the Fayetteville Shale and extending through Arkansas and into Mississippi - Initial capacity of 2.0 Bcf/d - Pipeline interconnects: NGPL, Trunkline, Texas Gas, ANR - Expect
Slide 20: Tiger Pipeline
Tiger Pipeline - 178 mile 42” interstate pipeline - Initial capacity of up to 2.0 Bcf/d - Pipeline interconnects: Trunkline, Texas Gas, ANR, Columbia Gulf, TETCO, Tennessee, SESH, HPL - Expected in service Q2 2011 20 20
Slide 21: Potential Upside – Tiger Pipeline
Potential Upside – Tiger Pipeline y Creates significant synergies with existing assets in Texas y Creates opportunities to gather, treat and process along the pipeline y Provides ETP’s shippers/customers access to every major producing area or basin from California to Louisiana y Provides flexibilit
Slide 22: Financial Overview
Financial Overview Sam ENERGY TRANSFER
Slide 23: 2007-2009 Key Financial Measures
2007-2009 Key Financial Measures Fiscal Year Four Months 2007(1) Ended 12/31/07 2008 2009 ($ million) Actual Actual Actual Guidance EBITDA: Intrastate and Midstream 693 281 1,039 1,200 - 1,265 (2) Interstate 124 43 164 230 - 250 Retail Propane 199 72 200 270 - 285 Other 7 7 - - Total 1,023 403 1,403
Slide 24: Growing Operating Income
Growing Operating Income $1,200 $1,125 125 $937 $1,000 $831 113 $800 96 $658 Operating Income ($MM) $600 885 703 $326 611 $400 583 $200 259 124 121 115 67 76 $0 FY 2005 FY 2006 FY 2007 Twelve Months Ended Year Ended Dec. 31, 2007 Dec. 31, 2008 Retail Propane Intrastate and Midstream Interstate Note:
Slide 25: Recent Capital Market Transactions
Recent Capital Market Transactions Senior Notes Offering (December 2008) y Launched transaction with an offering of $400 million and pricing guidance of 9.75% y 5.0x oversubscribed with almost $2.0 billion in orders y Issued $600 million principal amount of notes due 2019 with a coupon of 9.70% y 3
Slide 26: Revolving Credit Facilities
Revolving Credit Facilities ETP y $2.0 billion facility y Expandable to $3.0 billion (subject to administrative agent approval and lender commitment) y LIBOR + 60 bps y Expires in July 2012 y $1.26 billion of available capacity at December 31, 2008, pro forma for the January 2009 equity offering ETE
Slide 27: Debt Capitalization
Debt Capitalization ( $ m illio n ) 1 2 /3 1 /2 0 0 8 P r o -F o r m a (2 ) R e v o lv in g C r e d it: (1 ) W a c h o v ia $902 $676 B a n k o f O k la h o m a 10 10 T o t a l E T P R e v o lv in g C r e d it 912 686 E T P S e n io r N o te s : 5 .6 5 % due 2012 400 400 6 .0 0 % due 2013 350 350 5
Slide 28: ETP/ETE Debt Maturity Schedule
ETP/ETE Debt Maturity Schedule ETP ETE ($ million) $2,000 $1,750 $1,500 $1,250 $1,000 $750 $500 $250 $0 10 11 12 13 14 15 16 17 18 19 20 22 36 37 38 nt re 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 ur C or 09 20 Note: 2011 includes the maturity of our 50% share of the MEP credit facility. 28
Slide 29: Key Takeaways/Credit Considerations
Key Takeaways/Credit Considerations 29
Slide 30: Key Takeaways/Credit Considerations
Key Takeaways/Credit Considerations y Strategically positioned assets serving major North American natural gas producing basins y North Texas (Barnett Shale) y East Texas (Bossier) y West Texas (Permian Basin) y Texas Gulf Coast y Texas Panhandle / Oklahoma (Anadarko Basin) y Rockies (Piceance / Uin
Slide 31: Key Takeaways/Credit Considerations
Key Takeaways/Credit Considerations y Stable asset base and cash flow profile y Significant fee-based operating income y High-quality customer base with strong credit profile y Strong financial performance y 2008 EBITDA of $1.40 billion, an increase of 23% over LTM 12/2007 y Expected 2009 EBITDA of
Slide 32: Key Takeaways/Credit Considerations
Key Takeaways/Credit Considerations y Strong liquidity position y Issued over $800 million of common equity since December 2007 ($270 million in December 2007/January 2008, $338 million in July 2008 and $225 million in January 2009) despite a challenging market y Issued $1.5 billion of senior notes
Slide 33: Questions and Answers
WELT libres BAY LSPS Ra iearh MAN a Fh nih eee ID, ALA roe
Slide 34: Supplemental Information
Supplemental Information 34
Slide 35: ETP EBITDA Reconciliation
ETP EBITDA Reconciliation Four Months Ended Year Ended Year Ended December 31, December 31, August 31, 2007 2007 2008 Net income $ 676,139 $ 261,824 $ 866,023 Depreciation and amortization 179,162 71,333 262,151 Interest expense 175,563 66,298 265,701 Income tax expense (benefit) 13,658 10,789 6,680
Slide 36: ETP EBITDA Reconciliation (cont'd)
ETP EBITDA Reconciliation (cont’d) y The Partnership has disclosed in this presentation EBITDA, as adjusted, which is a non-GAAP financial measure. Management believes EBITDA, as adjusted, provides useful information to investors as a measure of comparison with peer companies, including companies th
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