Energy Transfer LP · NYSE:ET
Energy Transfer LP — Investor Presentation (August 2021)
31 slides from Energy Transfer LP's investor presentation, August 2021
Slide 1: Investor Presentation
Moving America’s Energy Since 1996 Investor Presentation August 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 August 2021. At the meetings, members of management may make statements about future events, outlook and expectations rela
Slide 3: What’s New
What’s New Operational Q2 2021 Financials Strategic Completed expansions at Nederland, Adjusted EBITDA Q2’21: $2.62B ET’s insider ownership is ~14%, bringing NGL export terminal capacity to compared to peer1 and S&P 500 ~700,000 bbls/d DCF Q2’21: $1.39B averages of ~3% and ~2%, respectively
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 $5.2B YTD (6/30/2021) Delivering growth projects Project Execution ME2/2X in-service by YE’21 Risk Bakken optimization now in-service Complex Company More simplified organization Structure ETO roll
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 More than 9,500 miles acreage, take-or-pay and connecting Permian, Bakken SUN, USAC Crude Oil throughput-based and Midcon Basins to U.S. & Other t
Slide 9: Disciplined Investments with Higher Returns Focus
Disciplined Investments with Higher Returns Focus 2021E Growth Capital: ~$1.6 billion Includes addition of various small projects, including the Permian Bridge Project, as well as the acceleration of project spend from 2022 into 2021 % of 2021E1 • Mariner East system (ME2, ME2X) NGL & Refined Produc
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: Dynamic Assets Enhance Crude Oil Franchise
Dynamic Assets Enhance Crude Oil Franchise From DJ Basin Rockies/Cushing to Nederland 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 Nederland terminal Cushing Provides ability to move Powder River and D
Slide 15: Rapidly Becoming A World Leader in NGL Exports
Rapidly Becoming A World Leader in NGL Exports In June 2021, ET’s NGL exports made up nearly 40% of all US NGL exports and more than 20% of NGL exports worldwide ET NGL Exports Nederland Terminal 900 800 700 Thousand barrels per day 600 500 400 300 200 100 0 Sep‐14 Sep‐15 Sep‐16 Sep‐17 Sep‐18 Sep‐19
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 Converting a portion of 8-inch ME1 NGL pip
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 1.1 million barrels per day • 18.2 million barrels of crude and heated product storage • 5 ship docks, 7 barge docks • Rail and truck loading and unloading • Connectivity to
Slide 22: ET & ENBL Complementary Assets
ET & ENBL Complementary Assets Natural NGLs Crude Gas Oil Gather ~ 13.1 million Transport ~22.9 million Capable of exporting Fractionate ~835 Transport ~3.9 mmbtu/d of gas & mmbtu/d of natural gas ~900 thousand bbls/d of thousand bbls/d of million bbls/d of 665,000 bbls/d of NGLs via inter & intrast
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 Interests in ET crude oil pipeline systems • Bakken Pipeline (36.4%) • Bayou Bridge Pipeline (60%) • White Cliffs (51%) • Permian Express Partners (87.7%)
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 ~67
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
Non-GAAP Reconciliations
Slide 30: Non-GAAP Reconciliation
Non-GAAP Reconciliation Energy Transfer LP Reconciliation of Non-GAAP Measures * 2020 2021 Q1 Q2 Q3 Q4 Full Year Q1 Q2 YTD Net income $ (964) $ 672 $ (401) $ 833 $ 140 $ 3,641 $ 908 $ 4,549 Interest expense, net 602 579 569 577 2,327 589 566 1,155 Impairment losses 1,325 4 1,474 77 2,880 3 8 11 Inco
Slide 31: Non-GAAP Reconciliation
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 ET's fundamental business activities and should not be co
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