Energy Transfer Lp · NYSE:ET
Energy Transfer Lp — Investor Presentation (December 2020)
30 slides from Energy Transfer Lp's investor presentation, December 2020
Slide 1: Energy Transfer Investor Presentation December 2020
ENERGY TRANSFER Investor Presentation December 2020
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 December 2020. At the meetings, members of management may make statements about future events, outlook and expectations re
Slide 3: 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 4: Fully Integrated Franchise from Wellhead to Water
FULLY INTEGRATED FRANCHISE FROM WELLHEAD TO WATER Natural NGLs Crude Gas Oil Gather ~ 13 million Transport ~22.6 million Capable of exporting Fractionate ~877 Transport ~3.6 mmbtu/d of gas & mmbtu/d of natural gas ~900 thousand bbls/d of thousand bbls/d of million bbls/d of 635,000 bbls/d of NGLs vi
Slide 5: Supported by a Leading Pipeline Franchise
SUPPORTED BY A LEADING PIPELINE FRANCHISE Miles of Pipeline 100,000 ET has 90,000+ miles of pipeline with assets in every major U.S. supply basin linked to major demand markets 80,000 in the U.S., including exports 60,000 Miles 40,000 20,000 0 ET A B C D E F G Peer Group: DCP, ENB (excluding ENB uti
Slide 6: 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 7: Renewable Energy Initiative
RENEWABLE ENERGY INITIATIVE Energy Transfer’s 2019 Community Engagement Report is now available at www.energytransfer.com Renewable Energy Use Today, approximately 20% of the electrical energy ET purchases originates from a renewable energy source Landfill Power Generation ET’s gas fired electri
Slide 8: Corporate Responsibility: Environmental, Social & Governance (ESG)
CORPORATE RESPONSIBILITY ENVIRONMENTAL, SOCIAL & GOVERNANCE (ESG) Energy Transfer is dedicated to responsibly and safely delivering America’s energy Program Highlights Program Accomplishments • 2018 EHSQ Alliance Award for Environmental Stewardship for outstanding • Committed to pursuing a zero inci
Slide 9: Achieved Record NGL Volumes in Q3'20
ACHIEVED RECORD NGL VOLUMES IN Q3’20 NGL NGL NGL Transportation Fractionation Segment Volumes Volumes Adj. EBITDA 1.5 MMbbls/d 877 Mbbls/d $762MM +10% +23% +14% from 3Q’19 from 3Q’19 from 3Q’19 Utilization on the Mariner East pipeline system and Texas NGL pipeline system remained strong 9
Slide 10: Updated 2020 Adjusted EBITDA Outlook
UPDATED 2020 ADJUSTED EBITDA OUTLOOK Now expect to come in at upper end of guidance range 2020E Adjusted EBITDA ~$10.2-$10.5 billion 2019 to 2020 Drivers 2020E Adjusted EBITDA Breakout + SEMG integration/synergies Commodity Spread1 2.5-5% - Legacy contracts/renewals 0-2.5% - Crude/gas spreads - Econ
Slide 11: Earnings Supported by Predominantly Fee-Based Contracts
EARNINGS SUPPORTED BY PREDOMINANTLY FEE-BASED CONTRACTS Q3 2020 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 transportation,
Slide 12: Disciplined Investments with Higher Returns Focus
DISCIPLINED INVESTMENTS WITH HIGHER RETURNS FOCUS 2020E Growth Capital: ~$3.3 billion 18% reduction from original estimate1 % of 2020E2 • Lone Star Express Expansion • Mariner East system (ME2, ME2X) NGL & Refined • PA Access Products • Nederland LPG facilities 70-75% • Fractionation plant VII (plac
Slide 13: Investment in High-Quality Growth Projects
INVESTMENT IN HIGH-QUALITY GROWTH PROJECTS Major growth projects added since 2017 2017 Bakken Pipeline System* Organic Growth Capital2 Adjusted EBITDA3 Trans Pecos/Comanche Trail Pipeline* Permian Express 3* Panther Plant 2017 2020E Arrowhead Plant $5.5B $10.2-10.5B 2018 Rover Pipeline* Frac V Rebel
Slide 14: 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 24-inch, 352 mile expansion to LS Express Pipeline adding 400,000 bbls/d Lone Star Express Expansion Completed Q3 2020 from Wink, TX to Fo
Slide 15: Significant Management Ownership
SIGNIFICANT MANAGEMENT OWNERSHIP In 2020, Energy Transfer insiders and independent board members have purchased ~10.6 million units, totaling ~$110 million 2020 Insider Purchases Insider Ownership vs Peers 16% 14.5% CEO: ~7.9mm units; ~$91mm 14% 12% Board of Directors: ~2.5mm units; ~$18mm Insider O
Slide 16: 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 17: 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 18: NGL & Refined Products Segment - Northeast NGL Franchise
NGL & REFINED PRODUCTS SEGMENT – NORTHEAST NGL FRANCHISE Comprehensive Marcellus/Utica Shale solution reaching local, regional and international markets Mariner MarinerEast East Pipeline System Pipeline System MarcusMarcus Hook Hook Industrial Complex Terminal • Provides transportation, storage, and
Slide 19: 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 20: NGL & Refined Products Segment - Orbit Ethane Export Project
NGL & REFINED PRODUCTS SEGMENT – ORBIT ETHANE EXPORT PROJECT Orbit Export Pipeline and Facility Orbit Pipeline JV Orbit Joint Venture with Satellite Petrochemical USA Corp includes construction of a new ethane export terminal on the U.S. Gulf Coast to provide ethane to Satellite At the terminal,
Slide 21: NGL & Refined Products Segment - Mariner South LPG Expansion
NGL & REFINED PRODUCTS SEGMENT- MARINER SOUTH LPG EXPANSION Legacy Mariner South System Completed in 2015, the legacy Mariner South system integrated ET’s Mont Belvieu assets with its Nederland Terminal Included batched butane and propane pipeline and chiller with a LPG export capacity of 180 MB
Slide 22: 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 • Adds 400,000 bbls/d of NGL pipeline capacity from Lone Star’s • 150,000 bbls/d Frac VI we
Slide 23: Growing Unique Export Capabilities
GROWING UNIQUE EXPORT CAPABILITIES Houston Terminal • 330 acres on Houston Ship Channel • 18.2 million barrels of storage • 5 ship docks, 7 barge docks • Connectivity to Gulf Coast refining complex • Pipeline connectivity to all major basins • Deepwater marine access • Rail and truck loading and unl
Slide 24: Appendix
APPENDIX ear’ { . _ Se ENERGY aN TRANSFERS = ; xX
Slide 25: Crude Oil Segment
CRUDE OIL SEGMENT Crude Oil Pipelines Crude Oil Acquisition & Marketing ~10,770 miles of crude oil trunk and gathering lines located in the Southwest and Crude truck fleet of approximately 575 trucks, 360 Midwest United States trailers, and 150 crude oil truck unloading facilities Interest in
Slide 26: NGL & Refined Products Segment
NGL & REFINED PRODUCTS SEGMENT NGL Storage NGL Pipeline Transportation Fractionation Total NGL storage ~63 million barrels ~4,612 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 27: Midstream Segment
MIDSTREAM SEGMENT Midstream Asset Map Midstream Highlights Volume growth in key regions: • Q3 2020 gathered volumes were ~12.9 million mmbtu/d, and NGLs produced were ~635,000 bbls/d Permian Capacity Additions: • 400 MMcf/d of processing capacity came online in 2018 PA (Rebel II and Arrowhead II
Slide 28: Interstate Pipeline Segment
INTERSTATE PIPELINE SEGMENT Interstate Asset Map Interstate Highlights Our interstate pipelines provide: Stability • Approximately 95% of revenue is derived from fixed reservation fees Diversity Rover • Access to multiple shale plays, storage facilities and markets Trunkline Transwestern Growt
Slide 29: 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 30: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION 30 Distribution coverage ratio for the three months ended September 30, 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 third quarter of 2020, which expec
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