Energy Transfer LP · NYSE:ET
Energy Transfer LP — Investor Presentation (June 2022)
36 slides from Energy Transfer LP's investor presentation, June 2022
Slide 1: Investor Presentation June 2022
Investor Presentation June 2022
Slide 2: Forward-looking Statements / Legal Disclaimer
Forward-looking Statements / Legal Disclaimer Management of Energy Transfer LP (ET) will provide this presentation to analysts and/or investors at meetings to be held throughout June 2022. At the meetings, members of management may make statements about future events, outlook and expectations relate
Slide 3: What's New
What’s New Operational Financials Strategic Started construction on new 200 MMcf/d Grey 2022 Guidance: Lake Charles LNG executed five LNG off-take Wolf processing plant in the Permian Basin; agreements to date, for an aggregate of 5.8 mtpa Adjusted EBITDA: $12.2-$12.6B expected to be in serv
Slide 4: Energy Transfer – A Truly Unique Franchise
Energy Transfer – A Truly Unique Franchise Marcus Hook Terminal Nederland Terminal Asset Overview Natural Gas Storage Natural Gas Liquids (NGLs) Fractionator Crude Terminals Refined Products Processing Houston Terminal Treating Major Terminals Marcus Hook Terminal Nederland Terminal Houston Terminal
Slide 5: De-Risking ET
De-Risking ET Levered Balance Significant debt reduction Sheet Reduced long-term debt by $6.3B in 2021 (and $290mm in Q1 2022) Delivering growth projects Project Execution Construction of final phase of Mariner East pipeline complete Risk Bakken optimization now in-service More simplifie
Slide 6: 2022 Outlook Supported by Strong Core Business
2022 Outlook Supported by Strong Core Business ET 2022E Adjusted EBITDA $12.2 - $12.6 billion 2021 to 2022 Adjusted EBITDA Drivers 2022E Adjusted EBITDA Breakout + Enable acquisition Commodity + NGL pipeline and export activities Spread¹ 7.5-10% 0-2.5% + NGL / gas prices - Lower asset optimization -
Slide 7: Diverse Earnings Supported by Predominantly Fee-Based Contracts
Diverse Earnings Supported by Predominantly Fee-Based Contracts Q1 2022 Adjusted EBITDA by Segment Segment Contract Structure Strength Fees from dedicated Significant connectivity to acreage, take-or-pay and Permian, Bakken and Midcon SUN, USAC Crude Oil throughput-based Basins to U.S. markets, & Ot
Slide 8: Focused on Increased Returns and Shorter Cash Cycle
Focused on Increased Returns and Shorter Cash Cycle 2022E Growth Capital: $1.8 billion to $2.1 billion1 % of 2022E1 • Grey Wolf high-recovery cryogenic processing plant • 2nd cryogenic Permian processing plant • Efficiency improvements and emissions reductions projects Midstream • Modernization and
Slide 9: Results Benefitting from Investments in High-Quality Growth Projects
Results Benefitting from Investments in High-Quality Growth Projects Major growth projects added since 2017 Legacy ET Organic Growth ET Adjusted EBITDA3 • Bakken Pipeline System* • Permian Express 3* Capital2 2017 • Trans Pecos/Comanche Trail • Panther Plant Pipelines* • Arrowhead Plant 2017 2022E $
Slide 10: MLP Investing: Why Invest In ET?
MLP Investing: Why Invest In ET? Attractive • Efficient income security with high relative yield ET current yield: ~7.5% Yields Strong • Significant earnings capacity from critical energy Earnings ET 2022 estimated Adjusted EBITDA: $12.2 - $12.6 billion infrastructure franchise Power Quarterly• Quar
Slide 11: Making the Case for Energy Transfer: Midstream Rankings
Making the Case for Energy Transfer: Midstream Rankings¹ Rankings take into consideration: (1) valuation, (2) thematics, (3) catalysts and (4) sentiment “Energy Transfer trades at a discount to peers, has exposure to several themes (LNG, NGLs, Permian), has a potential catalyst in the FID of Lak
Slide 12: Alternative Energy Group – Leveraging asset base and expertise
Alternative Energy Group – Leveraging asset base and expertise to develop projects to reduce environmental footprint Focused on leveraging significant asset base and energy industry expertise to develop projects to reduce environmental footprint throughout operations Dual Drive Compressors - Establi
Slide 13: Corporate Responsibility
Corporate Responsibility Program Highlights Program Accomplishments • Committed to pursuing a zero-incident culture • Established an Alternative Energy Group to explore renewable energy projects • Real-time tracking of EHS incidents focused on leading indicators • ~20% of electrical energy purchased
Slide 14: Significant Management Ownership – Continued Buying in 2021
Significant Management Ownership – Continued Buying in 2021 Since January 2021, Energy Transfer insiders and independent board members purchased ~20.5 million units, totaling ~$160 million; including a director purchase of ~$5.7mm in April 2022 2021 Insider Purchases Insider Ownership vs Peers Owner
Slide 15: Comprehensive Permian Gas Takeaway Solutions
Comprehensive Permian Gas Takeaway Solutions Flexibility to provide natural gas delivery to most market hubs Waha Header Permian Natural Gas Takeaway Project Chicago • Energy Transfer’s Waha header connects to more than 10 different natural gas pipelines, as well as to the TPP header¹, which contain
Slide 16: Permian Natural Gas Takeaway Pipeline
Permian Natural Gas Takeaway Pipeline With Cost, Time and Market Access Advantages Permian Natural Gas Pipeline Project Lamar Evaluating a Permian natural gas takeaway project that would utilize existing Energy Transfer assets, along with a new-build pipeline, to address growing need for additiona
Slide 17: Gulf Run Pipeline Project
Gulf Run Pipeline Project Provides An Efficient Gulf Coast Connection Gulf Run Pipeline Project Overview 135-mile, 42” interstate pipeline with an expected capacity of 1.65 Bcf/d Backed by a 20-year commitment for 1.1 Bcf/d with cornerstone shipper Golden Pass LNG (Qatar Petroleum & Exxon Mobil)
Slide 18: Lake Charles LNG Export Terminal
Lake Charles LNG Export Terminal Renewed Interest As Global LNG Demand Grows Lake Charles LNG Export Project Executed LNG Sale and Purchase Agreements (SPA) with first deliveries expected to commence as early as 2026 ENN Natural Gas – 1.8 million tonnes per annum for 20 years ENN Energy – 0.9
Slide 19: NGL & Refined Products Segment - A World Leader in NGL Exports
NGL & Refined Products Segment - A World Leader in NGL Exports In total, ET’s market share of worldwide NGL exports has doubled over the last 24 months to nearly 20% ET NGL Exports Nederland Terminal 800 700 600 Thousand barrels per day 500 400 300 200 100 0 2014 2015 2016 2017 2018 2019 2020 2021 E
Slide 20: NGL & Refined Products Segment – Leading Northeast NGL Franchise
NGL & Refined Products Segment – Leading Northeast NGL Franchise Comprehensive Marcellus/Utica Shale solution reaching local, regional and international markets Marcus Hook Terminal Mariner East Pipeline System • ~800 acre site: inbound and outbound pipeline, along with truck, rail and marine capabi
Slide 21: NGL & Refined Products Segment – Pennsylvania Access
NGL & Refined Products Segment – Pennsylvania Access As Mariner East adds refined products to its slate of liquids transportation services, tremendous synergies can be realized with ET’s existing refined products pipelines and terminals PA Access Overview Converted a portion of 8-inch ME1 NGL pipe
Slide 22: NGL & Refined Products Segment – Ethane Export Project
NGL & Refined Products Segment – Ethane Export Project Ethane Export Pipeline and Terminal Facilities Orbit Pipeline JV Orbit Joint Venture with Satellite Petrochemical USA Corp includes a new ethane export terminal on the U.S. Gulf Coast to provide ethane to Satellite’s newly-constructed ethane c
Slide 23: Mont Belvieu to Nederland Pipeline System
NGL & Refined Products Segment – Mont Belvieu to Nederland Pipeline System Nederland Natural Gasoline Expansions Mont Belvieu to Nederland Pipeline System Loaded first barge with natural gasoline in July 2019 Repurposed existing pipeline to export 30,000 BPD of natural gasoline 4 pipelines in de
Slide 24: Pipeline & Fractionation Expansion
NGL & Refined Products Segment – Pipeline & Fractionation Expansion Lone Star Express Expansion Mont Belvieu Fractionation Expansions • 24-inch, 352-mile expansion • Total of 7 fractionators at Mont Belvieu • Added incremental NGL pipeline capacity from Lone Star’s • 150,000 bbls/d Frac VI went into
Slide 25: Growing Unique Export Capabilities
Growing Unique Export Capabilities Total NGL export capacity is now over Houston Terminal Marcus Hook Terminal 1.1 million barrels per day • 330 acres on Houston Ship Channel • 18.2 million barrels of crude and heated product storage • ~500 thousand bbls/d of crude export capacity • 5 ship docks, 7
Slide 26: ET & ENBL Complementary Assets Wellhead to Water Service
ET & ENBL Complementary Assets Wellhead to Water Service Natural NGLs Crude Gas Oil Gather ~ 17.3 million Transport ~29.1 million Capable of exporting Fractionate ~805 Transport ~4.2 mmbtu/d of gas & mmbtu/d of natural gas ~1.1 million bbls/d of thousand bbls/d of million bbls/d of 757,000 bbls/d of
Slide 27: Successful Acquisition Track Record
Successful Acquisition Track Record HPL TUFCO Houston Pipeline Co. 2004 2005 2006 2011 2012 2012 2012 2014 2015 2016 2017 2019 2021 ET Management has a proven track record of successfully integrating acquisitions Knowledge of respective assets and businesses facilitates integrations of: Operat
Slide 28: Appendix
Appendix Gos ENERGY S. TRANSFER
Slide 29: Crude Oil Segment
Crude Oil Segment Crude Oil Pipelines ~11,300 miles of crude oil trunk and gathering lines Directly connected to 6.8 MMbbls/d (~37%) of domestic refining capacity 1.1 MMbbls/d of ET-owned export capacity on USGC ET owns and operates substantial interests in the following systems/entities: • Ba
Slide 30: NGL & Refined Products Segment
NGL & Refined Products Segment Fractionation 7 Mont Belvieu fractionators (over 900 Mbpd) 40 Mbpd King Ranch, 25 Mbpd Geismar 50 Mbpd Houston DeEthanizer and 30 to 50 Mbpd Marcus Hook C3+ Frac in service Q4 2017 150 Mbpd Frac VII placed in-service Q1 2020 NGL Storage Total NGL storage ~70
Slide 31: Midstream Segment
Midstream Segment Midstream Highlights Extensive Permian Basin Footprint: • Have ~3.7 million acres dedicated to ET processing plants in the Permian Basin with an average of 7+ years remaining on contracts PA • Midland Basin inlet volumes continue to be at or near record highs Grey Wolf Processi
Slide 32: Interstate Natural Gas Pipeline Segment
Interstate Natural Gas Pipeline Segment Interstate Highlights Our interstate pipelines provide: Stability • Approximately 95 percent of revenue is derived from fixed reservation fees Diversity • Access to multiple shale plays, storage facilities and Asset Overview markets Transwestern Growth O
Slide 33: Intrastate Natural Gas Pipeline Segment
Intrastate Natural Gas Pipeline Segment ~ 11,600 miles of intrastate pipelines with ~24 Bcf/d of throughput capacity, Intrastate Highlights and ~88 Bcf/d of working storage capacity Well-positioned to capture additional revenues from anticipated changes in natural gas supply and demand in the next
Slide 34: Non-GAAP Reconciliations
Non-GAAP Reconciliations 34
Slide 35: Non-GAAP Reconciliation
Non-GAAP Reconciliation Energy Transfer LP Reconciliation of Non-GAAP Measures * 2019 2020 2021 2022 Full Year Full Year Q1 Q2 Q3 Q4 Year Q1 Net income $ 4,825 $ 140 $ 3,641 $ 908 $ 907 $ 1,231 $ 6,687 $ 1,487 Interest expense, net 2,331 2,327 589 566 558 554 2,267 559 Impairment losses 74 2,880 3 8
Slide 36: Non-GAAP Reconciliation Definitions
Non-GAAP Reconciliation Definitions Adjusted EBITDA and Distributable Cash Flow are non-GAAP financial measures used by industry analysts, investors, lenders and rating agencies to assess the financial performance and the operating results of Energy Transfer's fundamental business activities and sho