Energy Transfer Lp · NYSE:ET
Energy Transfer Lp — Investor Presentation (August 2022)
34 slides from Energy Transfer Lp's investor presentation, August 2022
Slide 1: Investor Presentation
Investor Presentation August 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 August 2022. 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 Financials Strategic Achieved record processing volumes in the Increased 2022 Guidance for second time: In August, announced Woodford Express bolt-on Permian Basin in 2Q’22 acquisition for $485 million ‒ Expected Adjusted EBITDA: $12.6-$12.8B Currently constructing tw
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: Attractive Valuation Even With Strong YTD Performance
Attractive Valuation Even With Strong YTD Performance YTD Stock Price Performance¹ LTM EV/EBITDA² 14 ~3x lower multiple than peer median 12 42% 10 20% 8 6 ‐7% 4 2 0 ET PAA MPLX EPD KMI WMB TRGP MMP OKE TRP ENB Energy Transfer DJI Alerian MLP Index Recent outperformance with additional growth expecte
Slide 6: De-Risking ET
De-Risking ET Levered Balance Significant debt reduction Sheet Project Execution Delivering growth projects Risk Complex Company More simplified organization Structure Economic Uniquely positioned for improving macros Slowdown Impacts M&A Financially disciplined in M&A markets Uncertainty
Slide 7: 2022 Outlook Supported by Strong Core Business
2022 Outlook Supported by Strong Core Business ET 2022E Adjusted EBITDA $12.6 - $12.8 billion 2022 Adjusted EBITDA Key Drivers 2022E Adjusted EBITDA Breakout + Enable Acquisition Commodity + NGL pipeline and export activities 10-12.5% Spread1 + NGL / gas prices 0-2.5% + Organic Projects + Orbit Etha
Slide 8: Diverse Earnings Supported by Predominantly Fee-Based Contracts
Diverse Earnings Supported by Predominantly Fee-Based Contracts Q2 2022 Adjusted EBITDA by Segment Segment Contract Structure Strength Fees from dedicated Significant connectivity to acreage, take-or-pay and Permian, Bakken and Midcon Crude Oil throughput-based Basins to U.S. markets, transportation
Slide 9: 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 and Bear high-recovery cryogenic processing plants • Efficiency improvements and emissions reductions projects Midstream • Modernization and debottlenecking of existing sys
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 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 11: MLP Investing: Why Invest In ET?
MLP Investing: Why Invest In ET? Attractive • Efficient income security with high relative yield ET current yield: ~8% Yields Strong • Significant earnings capacity from critical energy Earnings ET 2022 estimated Adjusted EBITDA: $12.6 - $12.8 billion infrastructure franchise Power Quarterly• Quarte
Slide 12: 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 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
Significant Management Ownership – Continued Buying Since January 2021, Energy Transfer insiders and independent board members purchased ~23.4 million units, totaling ~$192 million; including a purchase of ~$30mm by its Executive Chairman in August 2022 Insider Purchases since Insider Ownership vs P
Slide 15: Woodford Express
Woodford Express Opportunistic Addition to Mid-con Footprint Woodford Express Overview Mid-continent gas gathering and processing system in the heart of the SCOOP play of Southern Oklahoma State-of-the-art cryogenic gas processing and treating plant with 450 MMcf/d of capacity located in Grady C
Slide 16: Lake Charles LNG Export Terminal
Lake Charles LNG Export Terminal Increasing 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
Slide 17: Permian Basin NGL Production
Permian Basin NGL Production 2.40 2.20 2.00 +24% 1.80 mmbd 1.60 1.40 1.20 1.00 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 17 Source: PointLogic, ET estimates
Slide 18: 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 19: 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 20: 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 approximately 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
Slide 21: 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 22: NGL & Refined Products Segment – 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 23: NGL & Refined Products Segment – 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; current capacity over 900,000 bbls/d • Added incremental NGL pipeline capacity from Lone Sta
Slide 24: 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 25: 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 26: Appendix
Appendix Gor ENERGY TRANSFER
Slide 27: 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 28: NGL & Refined Products Segment
NGL & Refined Products Segment Fractionation 7 Mont Belvieu fractionators (over 900 Mbpd) Recently resumed construction of 150,000 bbls/d frac 8, which is expected in service in Q3 2023 40 Mbpd King Ranch, 25 Mbpd Geismar 30 to 50 Mbpd Marcus Hook C3+ Frac in service Q4 2017 NGL Storage To
Slide 29: 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 and Bear
Slide 30: Interstate Natural Gas Pipeline Segment
Interstate Natural Gas Pipeline Segment Interstate Highlights ET’s interstate pipelines provide: Stability • Approximately 95 percent of revenue derived from fixed reservation fees Diversity • Access to multiple shale plays, storage facilities and markets Growth Opportunities Asset Overview Tr
Slide 31: 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 32: Non-GAAP Reconciliations
Non-GAAP Reconciliations 32
Slide 33: 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 Q2 YTD Net income $ 4,825 $ 140 $ 3,641 $ 908 $ 907 $ 1,231 $ 6,687 $ 1,487 $ 1,622 $ 3,109 Interest expense, net 2,331 2,327 589 566 558 554 2,267 559 578 1,13
Slide 34: 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 Energy Transfer's fundamental business activities and sho
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