Energy Transfer Lp · NYSE:ET
Energy Transfer Lp — Investor Presentation (September 2024)
36 slides from Energy Transfer Lp's investor presentation, September 2024
Slide 1: Investor Presentation
Investor Presentation September 2024
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 throughout September 2024. At the meetings, members of management may make statements about future events, outlook and expectations related to Sunoco LP (SU
Slide 3: What's New?
What’s New? Q2 2024 Net Income Q2 2024 Adjusted EBITDA¹ 2024 Adjusted EBITDA Guidance Attributable to the Partners $1.31 $3.76 $15.3-$15.5 BILLION BILLION BILLION Up 44% vs Q2 2023 Up 20% vs Q2 2023 Midpoint up 12% vs FY 2023 Operational Financial Strategic Volumes compared to Q2’23 Announced in
Slide 4: Why Energy Transfer
Why Energy Transfer Valuation Opportunity Significantly Improved Financial Position (LTM EV/EBITDA¹,²) 16 Sr. Unsecured debt rating recently upgraded by S&P and Fitch to 14 BBB with stable outlook, and Moodys to Baa2 12 10 Pro forma for a full year of acquisitions, Energy Transfer’s 8 leverage r
Slide 5: Positioned to Deliver on Key Themes in 2024
Positioned to Deliver on Key Themes in 2024 Disciplined Growth Strong Returns Organic expansion projects Current Yield ~8.2%¹ Franchise positioned as a natural industry consolidator via strategic M&A Distribution Growth 3-5% expected Annual Growth Well-Balanced Asset Base Oil, Natural Gas and NGLs e
Slide 6: Nationwide Footprint
Nationwide Footprint Asset Overview Natural Gas Natural Gas Liquids (NGLs) Crude Refined Products Storage Mont Belvieu NGL Complex Terminals Processing Major Terminals Marcus Hook Terminal Houston Terminal Lake Charles Regas Nederland Terminal Cushing Terminal Midland Terminals 6
Slide 7: Providing Services from Wellhead to Water
Providing Services from Wellhead to Water 130,000+ Miles of Pipeline Gather ~19.4 million MMBtu/d of gas and 890,000 Bbls/d of NGLs produced Transport ~29.5 million MMBtu/d of natural gas via inter and intrastate pipelines Fractionate ~1.1 million Bbls/d of NGLs Transport ~6.5 million Bbls/d of crud
Slide 8: Track Record of Efficient Consolidation
Track Record of Efficient Consolidation Closed December 2021 Closed September 2022 Closed May 2023 Closed November 2023 Closed July 2024 Assets complementary to Assets extended ET’s gas Assets complementary to Assets enhanced NGL & Expanded natural gas ET’s interstate and gatheri
Slide 9: Growth Through Organic Projects and M&A
Growth Through Organic Projects and M&A Key asset additions since Q3 2022 Woodford Express Crestwood Equity Partners Gulf Run Pipeline Bear Processing Plant • Purchase price of $485mm¹ • Valued at $7.1B² • (In Service December ’22) • (In Service June ’23) • (Closed September ’22) • (Closed Novembe
Slide 10: WTG Transaction Highlights
WTG Transaction Highlights Complementary Gathering and Processing Assets • Added more than 6,000 miles of complementary gas gathering pipelines in the Permian Basin • Includes eight gas processing plants (~1.3 Bcf/d capacity), with one more under construction (0.4 Bcf/d) – since closing, the 200 MMc
Slide 11: Outlook Supported by Strong Core Business
Outlook Supported by Strong Core Business 2024E Adjusted EBITDA $15.3- $15.5 billion Balancing M&A and Organic Growth 2024E Adjusted EBITDA Breakout Adjusted EBITDA Commodity ($ in Billions) Spread1 5-10% 0-5% $15.3-15.5 $13.7 $13.1 Fee² ~90% 2022 2023 2024E Pricing/spread assumptions based on curre
Slide 12: Long-Term Capital Allocation Strategy
Long-Term Capital Allocation Strategy Illustrative – Based on $8.5B Distributable Cash Flow • Discretionary cash flow for debt paydown and unit buybacks of ~$0.5-$1.5B $0.5-1.5B • Growth capital of ~$2.5-3.5B • Distributions to LP common unitholders of ~$4.5B $4.5B $2.5-3.5B • Targeting 3-5% annual
Slide 13: Well Balanced Asset Mix Provides Strong Earnings Support
Well Balanced Asset Mix Provides Strong Earnings Support Q2 2024 Adjusted EBITDA by Segment Segment Contract Structure Strength Fees from dedicated Significant connectivity from acreage, take-or-pay and Permian, Bakken and MidCon Crude Oil throughput-based basins to U.S. markets, transportation, ter
Slide 14: Lower Capital and Higher EBITDA
Lower Capital and Higher EBITDA Major Growth Project Additions ET Organic Growth Capital1 ET Adjusted EBITDA2 • Rover Pipeline* • Arrowhead II Plant 2018 • Frac V • Mariner East 2 • Rebel II Plant 2018 2024E $4.9B $15.3-$15.5B • Bayou Bridge Phase II* • JC Nolan Diesel Pipeline* • Permian Express 4*
Slide 15: Disciplined Growth Targeting Strong Investment Returns
Disciplined Growth Targeting Strong Investment Returns 2024E Growth Capital: $3.0 - $3.2 billion • Nederland NGL expansion % of 2024E • Nederland storage tank expansion • Lone Star Express and Gateway NGL Pipeline projects • Mont Belvieu Frac and storage facilities optimization NGL & Refined Product
Slide 16: Growth Project Updates
Growth Project Updates Project Name Project Overview Status Constructing ~30 miles of pipe to add a direct connection from Midland to ET’s pipeline from the Permian Basin to Cushing; expected to Q4 2024 Midland to Cushing Pipe Connection be able to transport ~100,000 Bbls/d of crude from ET terminal
Slide 17: Significant Management Ownership – Continued Buying
Significant Management Ownership – Continued Buying Leadership Support Insider Ownership vs Peers² Ownership Breakout² 12% • Energy Transfer insiders and independent board members purchased Insiders more than 44 million units, totaling 10% ~10% ~$468 million, since January 2021¹ 8% Insider Ownership
Slide 18: Natural Gas Pipeline Footprint Expected to Help Meet Growing Electricity Demand
Natural Gas Pipeline Footprint Expected to Help Meet Growing Electricity Demand Energy Transfer is pursuing opportunities to serve growing power loads from new Gas-fired power demand centers across its pipeline network plants served via direct and indirect connections: ~185 80 Plants Served 59 79 Pu
Slide 19: Worldwide Markets for Rapidly Growing LPG Business
Worldwide Markets for Rapidly Growing LPG Business Energy Transfer Q2 2024 Top 20 LPG Exports by Destination Nederland Terminal 12 11 10 9 8 million barrels 7 6 5 4 3 2 1 0 During Q2 2024, Energy Transfer exported LPGs to 40 countries 19 Source: Internal
Slide 20: Expanding World-Class NGL Export Facilities
Expanding World-Class NGL Export Facilities Marcus Hook Terminal Marcus Hook Terminal • Construction continues on the first phase of an optimization project Total NGL Export Capacity Houston Terminal > 1.1mm Bbls/d Nederland Terminal • Construction is underway on an expansion which is expected to ad
Slide 21: NGL Pipeline & Fractionation – Continuing to Expand Leading Asset Base
NGL Pipeline & Fractionation – Continuing to Expand Leading Asset Base Lone Star Express Upgrades Mont Belvieu Fractionation Expansions • Pump and filter upgrades along the pipeline that are expected to provide • Total of 8 fractionators at Mont Belvieu; current capacity 1.15mm+ Bbls/d more than 90,
Slide 22: Permian Basin Processing Expanding to Meet Growing Demand
Permian Basin Processing Expanding to Meet Growing Demand Permian Basin Footprint Extensive Permian Basin Footprint: • Currently have ~3.4 Bcf/d of processing capacity in the Permian Basin • Have significant acreage dedications to ET processing plants in the Permian Basin Red Lake III & IV Proce
Slide 23: Gulf Run Pipeline Providing An Efficient Gulf Coast Connection
Gulf Run Pipeline Providing An Efficient Gulf Coast Connection Gulf Run Pipeline Unparalleled access to prolific natural gas producing regions in the U.S. Perryville with ability to deliver Haynesville-area gas to Gulf Coast Region Zone 1: ~200-mile, FERC-regulated interstate pipeline with a cap
Slide 24: 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 25: Leveraging asset base and expertise to develop projects to reduce environmental footprint
Leveraging asset base and expertise to develop projects to reduce environmental footprint Approved 8, 10-MW Power Generation natural gas-fired Approved the construction of natural gas-fired electric generation facilities to support Energy Transfer’s operations in Texas. These facilities are expect
Slide 26: Fostering A Culture of Environmental and Social Responsibility
Fostering A Culture of Environmental and Social Responsibility EH&S Social Responsibility Corporate Governance “Safety First, Safety Always” 2023 Charitable Contributions Culture of Honesty, Trust and ~$6mm Respect Committed to environmental conservation and protection 2023 Employee Volunteer Hours
Slide 27: Appendix
Appendix
Slide 28: Crude Oil Segment
Crude Oil Segment ~14,500 miles of crude oil trunk and gathering lines Crude Oil Pipelines ~ 1 million barrels per day of Permian crude oil takeaway capacity Directly connected to 6.8 MMbbls/d (~37%) of domestic refining capacity 1.85 MMbbls/d of ET-owned export capacity on USGC ET owns and op
Slide 29: Natural Gas Liquids (NGLs) & Refined Products Segment
Natural Gas Liquids (NGLs) & Refined Products Segment Fractionation 8 Mont Belvieu fractionators (over 1.15 MMBbls/d) 165,000 Bbls/d Frac IX expected to go into service in Q4’26 35,000 Bbls/d Geismar Frac NGL Storage Total NGL storage ~95 million barrels ~62 million barrels of NGL storage
Slide 30: World-Class Export Capabilities – Uniquely Positioned to Serve Global Demand
World-Class Export Capabilities – Uniquely Positioned to Serve Global Demand Houston Terminal Marcus Hook Terminal • 330 acres on Houston Ship Channel • 18.2 million Bbls of crude and heated product storage • ~850,000 Bbls/d of crude export capacity • 5 ship docks, 7 barge docks • Rail and truck unl
Slide 31: Midstream Segment
Midstream Segment¹ Midstream Highlights Extensive Gathering and Processing Footprint • Assets in most of the major U.S. producing basins Processing Capacity Additions • Recently completed upgrades at Jackson Plant in south Texas that added ~60 MMcf/d of processing capacity • In the process of ex
Slide 32: Interstate Natural Gas Pipeline Segment
Interstate Natural Gas Pipeline Segment Interstate Highlights ET’s interstate pipelines provide: Stability • Approximately 95% of revenue derived from fixed reservation fees Diversity Asset Overview • Access to multiple shale plays, storage facilities and markets Pipelines Transwestern Growth
Slide 33: Intrastate Natural Gas Pipeline Segment
Intrastate Natural Gas Pipeline Segment ~ 12,200 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 Strategical
Slide 34: Non-GAAP Reconciliations
Non-GAAP Reconciliations 34
Slide 35: Non-GAAP Reconciliation
Non-GAAP Reconciliation Energy Transfer LP Reconciliation of Non-GAAP Measures * 2019 2020 2021 2022 2023 2024 Full Year Full Year Full Year Full Year Full Year Q1 Q2 YTD Net income $ 4,899 $ 140 $ 6,687 $ 5,868 $ 5,294 $ 1,692 $ 1,992 $ 3,684 Interest expense, net 2,331 2,327 2,267 2,306 2,578 728
Slide 36: 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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