Energy Transfer LP · NYSE:ET
Energy Transfer LP — Q3 2020 Earnings Presentation
11 slides from Energy Transfer LP's earnings presentation, Nov 4, 2020
Slide 1: Third Quarter 2020 Earnings
ENERGY TRANSFER Third Quarter 2020 Earnings November 4, 2020
Slide 2: Forward-Looking Statements / Legal Disclaimer
FORWARD-LOOKING STATEMENTS / LEGAL DISCLAIMER Management of Energy Transfer LP (ET) will provide this presentation in conjunction with ET’s 3rd quarter earnings conference call. On the call, members of management may make statements about future events, outlook and expectations related to Panhandle
Slide 3: 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 3
Slide 4: 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 5: Energy Transfer - A Truly Unique Franchise
ENERGY TRANSFER- A TRULY UNIQUE FRANCHISE Marcus Hook 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 Terminal
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: Q3 2020 Highlights
Q3 2020 HIGHLIGHTS Operational Q3’2020 Financials Strategic Record NGL fractionation volumes Adjusted EBITDA: $2.87B Significant progress on capital at Mont Belvieu facilities projects to be placed in service by DCF: $1.69B1 year-end Record transportation volumes on the Mariner East System
Slide 8: 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 9: 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 10: 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 • Nederland LPG facilities Products 70-75% • Fractionation plant VII (placed in servic
Slide 11: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION 11 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