Energy Transfer LP · NYSE:ET
Energy Transfer LP — Investor Presentation (November 2021)
31 slides from Energy Transfer LP's investor presentation, November 2021
Slide 1: Investor Presentation
Moving America’s Energy Since 1996 Investor Presentation November 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 November 2021. At the meetings, members of management may make statements about future events, outlook and expectations re
Slide 3: What's New
What’s New Operational Q3 2021 Financials Strategic NGL transportation and fractionation Adjusted EBITDA Q3’21: $2.6B Enable Midstream Acquisition volumes, as well as NGL and Refined Products terminal volumes all reached DCF Q3’21: $1.3B Continue to believe the new records during Q3’21 tra
Slide 4: Energy Transfer – A Truly Unique Franchise
Energy Transfer – A Truly Unique Franchise Marcus Hook Terminal Nederland Terminal Asset Overview Natural Gas Marcus Hook Terminal Natural Gas Liquids (NGLs) Eagle Point Terminal Nederland Terminal Houston Terminal Crude Refined Products Midland Terminal Storage Houston Terminal Fractionator Cushing
Slide 5: Path Toward Free Cash Flow
Path Toward Free Cash Flow Diversified business model comprised of five core segments; no segment contributes more than 30 Business percent of adjusted EBITDA¹ Diversity Unrivaled geographic diversity with assets in all major producing basins in the U.S. Strong Continue to leverage expansive f
Slide 6: De-Risking ET
De-Risking ET Levered Balance Significant debt reduction Sheet Reduced long-term debt by $6B YTD (9/30/2021) Delivering growth projects Project Execution ME2X commissioned/Full Mariner Project in-service Q1 2022 Risk Bakken optimization now in-service Complex Company More simplified orga
Slide 7: 2021 Adjusted EBITDA Outlook
2021 Adjusted EBITDA Outlook 2021E Adjusted EBITDA ~$12.9-$13.3 billion Guidance is for existing Energy Transfer business, excluding any contribution from Enable transaction 2021E Adjusted EBITDA Drivers 2021E Adjusted EBITDA Breakout + NGL export activities and pipelines Commodity Spread1 2.5-5% +
Slide 8: 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 10,850 miles connecting acreage, take-or-pay and SUN, USAC Permian, Bakken and Midcon Crude Oil throughput-based & Other Basins to U.S. markets, t
Slide 9: Focused on Cash Flow With Disciplined Investing
Focused on Cash Flow With Disciplined Investing 2021E Growth Capital: ~$1.6 billion % of 2021E1 • Mariner East Pipeline System (ME2, ME2X) NGL & Refined Products • Nederland LPG facilities ~40% • Multiple projects < $50mm • Gathering and processing and compression projects primarily in West Texas an
Slide 10: Results Benefitting from Investments in High-Quality Growth Projects
Results Benefitting from Investments 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 $12.9-$13.3B 2018 R
Slide 11: Alternative Energy Group
Alternative Energy Group Focused on leveraging significant asset base and energy industry expertise to develop projects to reduce environmental footprint throughout operations Dual Drive Compressors - Established in 2012 Patented technology that allows for switching between electric motors and nat
Slide 12: Corporate Responsibility
Corporate Responsibility Program Highlights Program Accomplishments • Committed to pursuing a zero-incident culture • Safety Incident Rate (TRIR) improved 34% from 2018 to 2020 – below industry average • Real-time tracking of EHS incidents focused on leading indicators • GPA Midstream Chairman’s Awa
Slide 13: Crude Oil Segment – Bakken Pipeline System
Crude Oil Segment – Bakken Pipeline System Harrisburg Pump Station DAPLpipelinefacts.com Bakken Pipeline System1 • 1,915-mile system connecting Bakken production to ET’s Nederland terminal on the Gulf Coast • Expect additional capacity to service commitments received through open seasons to be in-se
Slide 14: Expanding Reach While Adjusting to Market Flows
Expanding Reach While Adjusting to Market Flows From DJ Basin Cushing South Pipeline ET Cushing Terminal ET and Centurion Pipeline L.P. offers joint tariff crude oil service from ET’s terminal in Cushing, OK to ET’s Cushing Nederland terminal Provides ability to move Powder River and DJ Basin ba
Slide 15: Rapidly Becoming A World Leader in NGL Exports
Rapidly Becoming A World Leader in NGL Exports In total, ET’s percentage of worldwide NGL exports has doubled over the last 18 months to nearly 20% ET NGL Exports Nederland Terminal 800 700 600 Thousand barrels per day 500 400 300 200 100 0 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4
Slide 16: 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 marine capa
Slide 17: 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 18: NGL & Refined Products Segment – Ethane Export Project
NGL & Refined Products Segment – 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 Ethane Export Pipeline and Terminal Facilities Orbit Pipeline JV Orbit Joint Venture with Satellite Petrochemical U
Slide 19: 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 integrated ET’s Mont Loaded first barge with natural gasoline in July 2019 Belvieu assets with its Neder
Slide 20: 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 pipeline • 150,000 bbls/d
Slide 21: Growing Unique Export Capabilities
Growing Unique Export Capabilities Houston Terminal Total NGL export capacity is now over • 330 acres on Houston Ship Channel • 18.2 million barrels of crude and heated product 1.1 million barrels per day storage • ~500 thousand bbls/d of crude export capacity • 5 ship docks, 7 barge docks Marcus Ho
Slide 22: ET & ENBL Complementary Assets
ET & ENBL Complementary Assets Natural NGLs Crude Gas Oil Gather ~ 13.0 million Transport ~22.9 million Capable of exporting ~1.1 Fractionate ~885 Transport ~4.2 mmbtu/d of gas & mmbtu/d of natural gas million bbls/d of crude thousand bbls/d of million bbls/d of 667,000 bbls/d of NGLs via inter & in
Slide 23: Appendix
ENERGY TRANSFER
Slide 24: Crude Oil Segment
Crude Oil Segment Crude Oil Pipelines ~10,850 miles of crude oil trunk and gathering lines located in the Southwest and Midwest United States • 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 substant
Slide 25: 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 26: Midstream Segment
Midstream Segment Midstream Asset Map Midstream Highlights Extensive Permian Basin Footprint: • Have nearly 3.7 million acres dedicated to ET processing plants in the Permian Basin with an average of 7+ years remaining on contracts • Midland Basin inlet volumes continue to be at or near record hig
Slide 27: 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 Rover Diversity • Access to multiple shale plays, storage facilities and Trunkline markets Transwestern
Slide 28: 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 29: Non-GAAP Reconciliations
Reconcilia Non-GAA| = ENERGY TRANSFER
Slide 30: Non-GAAP Reconciliation
Non-GAAP Reconciliation Energy Transfer LP Reconciliation of Non-GAAP Measures * 2018 (a) 2019 2020 2021 Full Year Full Year Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 YTD Net income $ 3,420 $ 4,825 $ (964) $ 672 $ (401) $ 833 $ 140 $ 3,641 $ 908 $ 907 $ 5,456 Interest expense, net 2,055 2,331 602 579 569 577 2
Slide 31: Non-GAAP Reconciliation
Non-GAAP Reconciliation (a) The closing of the ETO Merger in October 2018 impacted the Partnership’s calculation of Distributable Cash Flow attributable to partners, as well as the number of ET Common Units outstanding and the amount of distributions to be paid to partners. In order to provide infor
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