Enterprise Products Partners L.p. · NYSE:EPD
Enterprise Products Partners L.p — Howard Weil's 33rd Annual Energy Conference 2005
25 slides from Enterprise Products Partners L.p's conference presentation, Apr 5, 2005
Slide 1: Enterprise Products Partners L.P. at Howard Weil's 33rd Annual Energy Conference
Enterprise Products Partners L.P. Howard Weil’s 33rd Annual Energy Conference April 5, 2005 Robert G. Phillips Michael A. Creel President & CEO EVP & CFO
Slide 2: Forward looking statements
Forward looking statements This presentation contains forward-looking statements and information that are based on Enterprise’s beliefs and those of its general partner, as well as assumptions made by and information currently available to them. When used in this presentation, words such as “anticip
Slide 3: Forward looking statements (cont.)
Forward looking statements (cont.) Fluctuations in oil, natural gas and NGL prices; A reduction in demand for its products by the petrochemical, refining or heating industries; A decline in the volumes of NGLs delivered by its facilities; The failure of its credit risk management efforts to adequate
Slide 4: Overview
overview The largest publicly traded energy partnership (based on market capitalization) serving producers and consumers of natural gas, NGLs and crude oil Completed $6 billion merger with GulfTerra Energy Partners, L.P. in September 2004 Only integrated North American midstream network, which inclu
Slide 5: Successful Merger with GulfTerra
Successful Merger with GulfTerra Created leading provider of midstream energy services with strong position in prolific deepwater Gulf of Mexico and Rocky Mountains Diversified and complementary businesses provide a natural hedge to mitigate effects of natural gas prices Extended integrated value ch
Slide 6: Diversified Midstream Operations
Diversified Midstream Operations NGL Pipelines & Services (51%) Natural gas processing plants & related marketing activities NGL fractionation plants NGL pipelines and storage Onshore Natural Gas Pipelines & Services (26%) Natural gas pipelines Natural gas storage facilities Offshore Pipelines & Ser
Slide 7: Integrated Midstream Energy Services
Integrated Midstream Energy Services Fees are earned at each link of value chain
Slide 8: Leading Business Positions Across Midstream Energy Value Chain
Leading Business Positions Across Midstream Energy Value Chain
Slide 9: High Visibility of Growth
High Visibility of Growth Building scale in core growth markets with largest network of midstream assets Access to all major supply basins Leveraging each link of value chain Portfolio of assets poised for solid long-term growth Strong pricing fundamentals driving increasing supplies Improved petroc
Slide 10: $2 Billion of Growth Opportunities
$2 Billion of Growth Opportunities
Slide 11: Significant Organic Growth Projects and Announced Acquisitions
Significant Organic Growth Projects and Announced Acquisitions
Slide 12: Southern Green Canyon Value Chain
Southern Green Canyon Value Chain
Slide 13: Independence Hub and Trail
Independence Hub and Trail Designed to process up to 850 MMcf/d of natural gas production from six anchor fields Capacity to tie-back up to 11 additional fields 16 of 23 wells planned for anchor discoveries have been drilled with 1.6 Tcf of reserves Large resource basin of approx. 11,500 square mile
Slide 14: Financial Overview
Financial Overview ©All rights reserved. Enterprise Products Partners L.P.
Slide 15: Financial objectives
Financial objectives Increase cash flows from fee-based businesses Prudently invest to expand the partnership through organic growth, acquisitions and joint ventures with strategic partners Manage capital to provide financial flexibility for partnership while providing our investors with an attracti
Slide 16: Unique ownership structure
Unique ownership structure Largest % ownership by Management in energy industry Management interest aligned with those of limited partners and supported by unit purchases Approx. $382 million of new EPD units since October 2002 Acquired remaining 9.9% of EPD GP and 13.5 million EPD units from El Pas
Slide 17: MLP Math: 25% vs. 50% GP Splits
MLP Math: 25% vs. 50% GP Splits Lower Splits = Lower Cost of Capital
Slide 18: Overview of Fourth Quarter Results
Overview of Fourth Quarter Results
Slide 19: Solid Capitalization; Ample Liquidity
Solid Capitalization; Ample Liquidity (1) Pro Forma for proceeds of $457 million from an equity offering, $39 million from the DRIP, $491 million from the private placement of senior notes, and the retirement of $350 million of 8.25% notes due March 2005. All of these transactions occurred in Februa
Slide 20: EPD Meets S&P Criteria
EPD Meets S&P 500 Criteria (1)
Slide 21: Proven Growth, Superior Returns
Proven Growth, Superior Returns
Slide 22: Key Investment Considerations
Key Investment Considerations Strategically located assets serving the most prolific supply basins for natural gas, natural gas liquids (NGLs) and crude oil in the U.S. Leading business positions across midstream sector Greater cash flow stability from diversified fee-based assets following the rece
Slide 23: Questions and Answers
Enterprise Products Partners L.P. Questions and Answers
Slide 24: Non-GAAP Reconciliations
Non-GAAP Reconciliations Fourth Quarter ® Simin) 2003 _2004% Opmating income $6 ~=~«*SNTS Adjustments to reconcile Operating income fo Total gross operating margin. Deyreciston and arortiztion in openting costs and expenses $2 30 Retained lease expense, net n operating costs ard exyerees 2 1 Loss (g
Slide 25: Non-GAAP Reconciliations
Non-GAAP Reconciliations (etn tin Athenee yesh amsintn(eehtns mevitiaoapuat tp) ro ofan acon yy bbe fcom)of mens ee Povibafirarnce hurtin! arp Chentag eo gear pil ET wcingmtsy rn Charegexe at W-BEED Mostyn ove (pisonrabo fares Deavefaemue nara ewhvad fro ents Mrsierfekage mopatng erm Tate (nce mead
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