Energy Transfer Lp · NYSE:ET
Energy Transfer Lp — Energy Transfer Equity — Lehman Brothers Energy Conference 2006
22 slides from Energy Transfer Lp's conference presentation, Sep 5, 2006
Slide 1: September 2006 Lehman Brothers Energy Conference
September 2006 Lehman Brothers Energy Conference Lehman Brothers Energy Conference Energy Transfer Equity, L.P. Energy Transfer Partners, L.P. Exhibit 99.1 September 2006 Lehman Brothers Energy Conference Energy Transfer Equity, L.P. Energy Partners, L.P.
Slide 2: Legal Disclaimer
The statements made by representatives of Energy Transfer Partners (ETP) or Energy Transfer Equity (ETE) during the course of this presentation that are not historical facts are forward- looking statements. Although the assumptions underlying these statements are believed to be reasonable, investors
Slide 3: Agenda
Agenda Overview ETP/ETE Corporate Structure Asset Profile Investment Highlights Asset Overview Midstream Overview Propane Overview Project Update Energy Transfer Equity, L.P. ETP/ETE Unitholder Returns Summary
Slide 4: ETP Corporate Structure
Public Unitholders Energy Transfer Equity, L.P. Energy Transfer Partners, L.P. 110,726,999 Units Outstanding La Grange Acquisition, L.P Natural Gas Midstream Operations Heritage Operating, L.P. Propane Operations Heritage Holdings Inc 50% Incentive Distribution Rights 32.9% Limited Partner Interest
Slide 5: ETE Corporate Structure
Management and Affiliates Public Unitholders LE GP, LLC Energy Transfer Equity, L.P. 124,360,520 Common Units Outstanding 50% Incentive Distribution Rights 32.9% Limited Partner Interest 2% General Partner Interest ETE Corporate Structure 81.8% Limited Partner Interest 17.7% Limited Partner Interest
Slide 6: Asset Profile
Asset Profile A diversified midstream and propane MLP: 3rd largest MLP in the U.S. (based on market cap) Largest intrastate pipeline system in U.S. with interconnects to major consumption areas throughout U.S. Significant strategically located natural gas storage capacity Third largest retail propan
Slide 7: Investment Highlights
Investment Highlights Substantial competitive advantage High quality portfolio of assets Strong credit statistics Compares favorably with BBB+ / BBB peers Management commitment to credit quality High common unit coverage ETP retains cash to fund internal growth and strengthen balance sheet Low risk,
Slide 8: Energy Transfer Midstream System
Energy Transfer Midstream System
Slide 9: Competitive Advantages
Competitive Advantages Texas Infrastructure Multiple Market Options for Producers Strong Position in Active Supply Basins Operating Expertise Producer Relationships Substantial Organic Growth Opportunities Bypass Capability at Processing Plants
Slide 10: Energy Transfer Midstream Assets
Energy Tranefer Midetream Aseote Approximately 417 miles 42, 36 & 30” Pipeline Expansion New Addition * South Loop to Beaumont, TX Approximately $1 billion total capital to be spent — 38420 million incurred through 5/31/06 L + Reed to Texoma section placed in service and flowing gas as of 8/31/2006
Slide 11: Project Update
Project Update Provides 2.3 Bcf/d additional outlet capacity to Fort Worth Basin and East Texas producers Links high growth production with major market hubs and multiple interstate interconnects across Texas Provides accretive returns on significant capital spending Backed by long-term contracts wi
Slide 12: Propane Operations
Propane Operations ETP’s propane operations are concentrated in higher than average population growth areas where natural gas distribution may not be cost effective, and its geographic diversification minimizes the impact of weather patterns in individual regions. Fee-based, pass-through business, s
Slide 13: Updated Propane Operations Map
Updated Propane Operations Map
Slide 14: Financial Review
Financial Review ETP/ETE Credit Statistics Distributable Cash Flow Forecast Common Unit Coverage Potential Distribution @ 1.15 X Historical Returns (ETP/ETE) Distribution Review
Slide 15: ETP/ETE Credit Statistics (5/31/2006)
ETP/ETE Credit Statistics (5/31/2006) Outstanding Debt (5/31/2006) $1.5 billion (excluding working capital) 2006E EBITDA $730 mllion 2006E Interest Exp. $110 million Debt/ EBITDA 2.06 X EBITDA/ Interest 6.64 X ETP ETP Outstanding Debt (5/31/2006) $377 million 2006E EBITDA $157 million* 2006E Interes
Slide 16: ETP Distributable Cash Flow/ Coverage
ETP Distributable Cash Flow/ Coverage ETP Distributable Cash Flow Calculation (in thousands) (@ $2.55/ LP Unit) 2006E EBITDA Midstream 595,000 $ Propane 135,000 $ Total 730,000 $ Less: Maintenance Capital (50,000) $ Less: Interest Expense (110,000) $ Less: Taxes (28,000) $ Distributable Cash Flow 54
Slide 17: Potential Distribution @ 1.15X
Potential Distribution @ 1.15X • Based on EBITDA guidance of $730 million • Excludes impact of previously announced internal growth projects ETP Common Distribution @ 1.15X Distributable Cash Flow (000's) 542,000 $ ETP DCF/ LP Unit 3.00 $ Less: Distributions to GP (IDRs) (160,004) $ Distributable Ca
Slide 18: Historical Returns vs. Peers
Historical Returns vs. Peers 5-Year Average Annual Total Return 8/29/01 - 8/29/06 Source: FactSet Note: 1 BWP, BPL, EEP, ETP, EPD, KMP, MMP, OKS, PPX, PAA, SXL, TPP, and VLI 28.1% 14.5% (9.0%) 2.6% (20.0%) (10.0%) 0.0% 10.0% 20.0% 30.0% 40.0% ETP Large Cap MLP Average¹ Dow Jones S&P 500
Slide 19: Distribution Review
Distribution Review ETP Distribution History $1.30 $1.40 $1.50 $1.65 $1.75 $1.85 $1.95 $2.00 $2.20 $2.35 $2.55 $1.00 $1.40 $1.80 $2.20 $2.60 $3.00
Slide 20: Distribution History vs. Peers
Distribution History vs. Peers 2-Year Average Annual Distribution Growth 8/29/01 - 8/29/06 30% 15% 14% 12% 10% 9% 8% 7% 7% 5% 1% 0% 0% 5% 10% 15% 20% 25% 30% 35% ETP SXL MMP PAA EPD OKS PPX BPL KMP VLI TPP EEP
Slide 21: Distribution History vs. Peers
Distribution History vs. Peers Average Annual Distribution Growth Note: 1 Includes BWP, BPL, EEP, ETP, EPD, KMP, MMP, OKS, PPX, PAA, SXL, TPP, and VLI 26.0% 30.4% 30.8% 6.5% 7.3% 7.6% 0% 5% 10% 15% 20% 25% 30% 35% 3 Yr CAGR (8/29/03-8/29/06) 2 Yr CAGR (8/29/04-8/29/06) 1 Yr CAGR (8/29/05-8/29/06) ET
Slide 22: Investment Highlights
Investment Highlights Substantial competitive advantage High quality portfolio of assets Strong credit statistics Compares favorably with BBB+ / BBB peers Management commitment to credit quality High common unit coverage ETP retains cash to fund internal growth and strengthen balance sheet Low risk,
Energy Transfer Equity — Lehman Brothers Energy Conference 2006 on 6ix