Energy Transfer LP · NYSE:ET
Energy Transfer LP — Investor Presentation (March 2021)
38 slides from Energy Transfer LP's investor presentation, March 2021
Slide 1: Energy Transfer Investor Presentation March 2021
ENERGY TRANSFER Investor Presentation March 2021
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 March 2021. At the meetings, members of management may make statements about future events, outlook and expectations relat
Slide 3: What's New
WHAT’S NEW Operational Financials Strategic Completed expansion of NGL Adjusted EBITDA: Announced plans to acquire Enable export facilities at Nederland Midstream Terminal in December 2020 FY’20: $10.53B Checks all the boxes: Successfully loaded first VLEC at FY’21E: ~$10.6-11.0B Neder
Slide 4: Acquisition of Enable Midstream
ACQUISITION OF ENABLE MIDSTREAM
Slide 5: Key Transaction Highlights
KEY TRANSACTION HIGHLIGHTS All-Equity, Credit Accretive Bolt-On Acquisition of Complementary Assets Complementary Asset Footprint with Significant Integration Opportunities Acreage Dedication from some of the largest and most active operators in Mid-Con and Ark-La-Tex Basins Diversified Asset Base A
Slide 6: ET & ENBL Complementary Assets
ET & ENBL COMPLEMENTARY ASSETS Gather ~13 Transport ~22.6 Capable of exporting Fractionate ~877 Transport ~3.6 million mmbtu/d million mmbtu/d ~900 thousand bbls/d mbbls/d of NGLs at million bbls/d of of gas & 635 of natural gas via of crude oil and 1 Mont Belvieu crude oil mbbls/d of NGLs inter & i
Slide 7: Combination Benefits All Stakeholders Through Additional Scale and Integration
COMBINATION BENEFITS ALL STAKEHOLDERS THROUGH ADDITIONAL SCALE AND INTEGRATION ENBL’s T&S assets complement ET’s vast interstate and intrastate pipeline system and provide additional coverage in the Mid-Con and Ark-La-Tex regions Substantial gathering and processing footprint in the Mid-Con Basi
Slide 8: Overview of Proposed Transaction
OVERVIEW OF PROPOSED TRANSACTION Overview of Merger Terms Transaction Illustration Energy Transfer has executed a definitive agreement to acquire Enable in an all-equity transaction, valuing each Enable unit at $5.86 based on the closing price as of ET Common Units(1) 2/12/2021. Each Enable unit w
Slide 9: Complementary Asset Base Drives Value Across Footprint
COMPLEMENTARY ASSET BASE DRIVES VALUE ACROSS FOOTPRINT Creates Contiguous Asset Footprint Integration Opportunities Mid-Continent Exposure to significant demand pull gas infrastructure in the Mid-Con ENBL’s substantial gathering and processing footprint in the Mid-Con Basin complements ET’s down
Slide 10: Energy Transfer Overview
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Slide 11: Energy Transfer - A Truly Unique Franchise
ENERGY TRANSFER - A TRULY UNIQUE FRANCHISE Marcus Hook Terminal Nederland Terminal Asset Overview Natural Gas Marcus Hook Terminal Houston Terminal Natural Gas Liquids (NGLs) Eagle Point Terminal Crude Nederland Terminal Refined Products Midland Terminal Storage Houston Terminal Fractionator Cushing
Slide 12: Path Toward Free Cash Flow
PATH TOWARD FREE CASH FLOW Diversified business model comprised of five core segments; no segment contributes more than Business 30 percent of adjusted EBITDA Diversity Unrivaled geographic diversity with assets in all major producing basins in the U.S. Strong Continue to leverage expansive fo
Slide 13: 2021 Adjusted EBITDA Outlook
2021 ADJUSTED EBITDA OUTLOOK 2021E Adjusted EBITDA ~$10.6-$11.0 billion Guidance is for existing Energy Transfer business, excluding any contribution from Enable transaction 2020 to 2021 Drivers 2021E Adjusted EBITDA Breakout + NGL export activities and pipelines Commodity Spread1 + NGL/gas prices 0
Slide 14: Earnings Supported by Predominantly Fee-Based Contracts
EARNINGS SUPPORTED BY PREDOMINANTLY FEE-BASED CONTRACTS 2020 Full-Year Adjusted EBITDA by Segment Segment Contract Structure Strength Fees from dedicated More than 9,500 miles acreage, take-or-pay connecting Permian, SUN, USAC and throughput-based Crude Oil Bakken and Midcon Basins & Other transport
Slide 15: Disciplined Investments with Higher Returns Focus
DISCIPLINED INVESTMENTS WITH HIGHER RETURNS FOCUS 2021E Growth Capital: ~$1.45 billion Includes ~$250 million of 2020 planned capital that has been deferred into 2021. Accounting for this deferral, the updated 2021 growth capital guidance represents a reduction of ~$100 million from previous guidanc
Slide 16: Investment in High-Quality Growth Projects
INVESTMENT IN HIGH-QUALITY GROWTH PROJECTS Major growth projects added since 2017 2017 Bakken Pipeline System* Organic Growth Capital3 Adjusted EBITDA4 Trans Pecos/Comanche Trail Pipeline* Permian Express 3* Panther Plant 2017 2021E Arrowhead Plant $5.5B $10.6-11.0B 2018 Rover Pipeline* Frac V Rebel
Slide 17: Alternative Energy Group
ALTERNATIVE ENERGY GROUP Dual Drive Compressors - Established in 2012 Patented technology that allows for switching between electric motors and natural gas engines to drive compressors, and offers the industry a more efficient compression system, helping reduce greenhouse gas emissions In 2020,
Slide 18: Delivering on Project Backlog
DELIVERING ON PROJECT BACKLOG PROJECT SCOPE STATUS NGL & Refined Products Mont Belvieu’s Frac VII 150 Mbpd fractionator at Mont Belvieu complex Completed Q1 2020 Lone Star Express 24-inch, 352 mile expansion to LS Express Pipeline adding 400,000 bbls/d Completed Q3 2020 Expansion In partial service
Slide 19: Crude Oil Segment – Bakken Pipeline System
CRUDE OIL SEGMENT – BAKKEN PIPELINE SYSTEM Not Shown: There are 7 Other Pipelines that Cross Lake Oahe in Near Proximity DAPLpipelinefacts.com Bakken Pipeline System1 • 1,915 mile system connecting Bakken production to ET’s Nederland terminal on the Gulf Coast • Delivering U.S. oil to support Americ
Slide 20: Crude Oil Segment – Cushing to Nederland
CRUDE OIL SEGMENT – CUSHING TO NEDERLAND Cushing Terminal From DJ Basin Cushing to Nederland Provides the ability to move volumes from ET’s White Cliffs Pipeline and Cushing Cushing Storage Assets through existing Permian Express 1 Pipeline System to Nederland Terminal Minimal new construction r
Slide 21: NGL & Refined Products Segment – A Leading Northeast NGL Franchise
NGL & REFINED PRODUCTS SEGMENT – A 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 • Provides
Slide 22: NGL & Refined Products Segment – Pennsylvania Access Pipeline
NGL & REFINED PRODUCTS SEGMENT- PENNSYLVANIA ACCESS PIPELINE 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 Pipeline Overview Converting a portion of 8
Slide 23: NGL & Refined Products Segment – Orbit Ethane Export Project
NGL & REFINED PRODUCTS SEGMENT – ORBIT ETHANE EXPORT PROJECT Loaded the Seri Everest with more than 911,000 barrels of ethane in January 2021, the largest single shipment of ethane to date Orbit Export Pipeline and Facility Orbit Pipeline JV Orbit Joint Venture with Satellite Petrochemical USA Cor
Slide 24: NGL & Refined Products Segment – Nederland LPG/Natural Gasoline Expansions
NGL & REFINED PRODUCTS SEGMENT- NEDERLAND LPG/NATURAL GASOLINE EXPANSIONS Legacy Mariner South System Nederland Natural Gasoline Expansions Completed in 2015, the legacy Mariner South system Loaded first barge with natural gasoline in July 2019 integrated ET’s Mont Belvieu assets with its Nederl
Slide 25: NGL & Refined Products Segment – Pipeline and Fractionation Expansion
NGL & REFINED PRODUCTS SEGMENT – PIPELINE AND FRACTIONATION EXPANSION Lone Star Express Expansion Mont Belvieu Fractionation Expansions • 24-inch, 352-mile expansion • Total of 7 fractionators at Mont Belvieu • Added 400,000 bbls/d of NGL pipeline capacity from Lone Star’s • 150,000 bbls/d Frac VI w
Slide 26: Growing Unique Export Capabilities
GROWING UNIQUE EXPORT CAPABILITIES Houston Terminal • 330 acres on Houston Ship Channel • 18.2 million barrels of crude and heated product storage • 5 ship docks, 7 barge docks • Rail and truck loading and unloading • Connectivity to Gulf Coast refining complex • Pipeline connectivity to all major b
Slide 27: Appendix
APPENDIX ear’ { . _ Se ENERGY aN TRANSFERS = ; xX
Slide 28: Crude Oil Segment
CRUDE OIL SEGMENT Crude Oil Pipelines Crude Oil Acquisition & Marketing ~10,850 miles of crude oil trunk and gathering lines located in the Southwest and Crude truck fleet of approximately 363 trucks, 350 Midwest United States trailers, and 166 crude oil truck unloading facilities Interests in
Slide 29: NGL & Refined Products Segment
NGL & REFINED PRODUCTS SEGMENT NGL Storage NGL Pipeline Transportation Fractionation Total NGL storage ~67 million barrels ~4,800 miles of NGL Pipelines 7 Mont Belvieu fractionators (over 900 Mbpd) TET Mont Belvieu Storage Hub ~50 million throughout Texas, Midwest, and 40 Mbpd King Ranch,
Slide 30: Midstream Segment
MIDSTREAM SEGMENT Midstream Asset Map Midstream Highlights Volume growth in key regions: • Q4 2020 gathered volumes were ~12.6 million mmbtu/d, and NGLs produced were ~596,000 bbls/d Permian Capacity Additions: • 200 MMcf/d Panther II processing plant in the Midland PA Basin was placed into full
Slide 31: Interstate Pipeline Segment
INTERSTATE PIPELINE SEGMENT Interstate Asset Map Interstate Highlights Our interstate pipelines provide: Stability • Approximately 95 percent of revenue is derived from fixed reservation fees Diversity Rover • Access to multiple shale plays, storage facilities and markets Trunkline Transwestern
Slide 32: Intrastate Pipeline Segment
INTRASTATE PIPELINE SEGMENT Intrastate Asset Map Intrastate Highlights Well-positioned to capture additional revenues from anticipated changes in natural gas supply and demand in the next five years Red Bluff Express Pipeline connects the Orla Plant, as well as 3rd party plants, to the Waha Oasi
Slide 33: ENBL Transaction: Basin Leading Position in Mid-Con and Ark-La-Tex
ENBL TRANSACTION: BASIN LEADING POSITION IN MID-CON AND ARK-LA-TEX Mid-Con Basin G&P System Positioning vs. Peers Mid-Con Processing Capacity(1) Enable has 28% of SCOOP/STACK processing capacity but (bcf/d) processes 38% of SCOOP/STACK wet gas production(2) 3.3 Anadarko SCOOP / STACK 0.1 Arkoma Arko
Slide 34: ENBL Transaction: Scale and Diversity of Cash Flows Enhance Credit Profile
ENBL TRANSACTION: SCALE AND DIVERSITY OF CASH FLOWS ENHANCE CREDIT PROFILE Diverse Cash Flows Adds nearly $1bn of additional annual EBITDA through midstream systems with connectivity to ET’s existing complex Pro forma ET maintains predominantly fee-based cash flow profile (~95% of EBITDA) The
Slide 35: ENBL Transaction: Large, Diverse and High-Quality Customer Base
ENBL TRANSACTION: LARGE, DIVERSE AND HIGH- QUALITY CUSTOMER BASE Top Enable Customers Continental – Anadarko Basin Champion Enable’s revenues are strengthened by a diverse, high-quality Ability to shift drilling between both crude and gas focused customer base, including many investment-grade or a
Slide 36: ENBL Transaction Timeline
ENBL TRANSACTION TIMELINE February 2021 Q1 and Q2 2021 Mid-Year 2021 Sign Agreement Consent solicitation statement / S-4 Transaction close registration statement declared Announce Transaction effective by the SEC and file definitive consent solicitation statement with the Begin drafting SE
Slide 37: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION 37 Distribution coverage ratio for the three months ended December 31, 2020 is calculated as Distributable Cash Flow attributable to partners, as adjusted, divided by distributions expected to be paid to the partners of ET in respect of the fourth quarter of 2020, which expec
Slide 38: Energy Transfer
ENERGY TRANSFER