Enterprise Products Partners L.p. · NYSE:EPD
Enterprise Products Partners L.p — Master Limited Partnership Conference 2006
29 slides from Enterprise Products Partners L.p's conference presentation, Mar 8, 2006
Slide 1: Master Limited Partnership Conference
Enterprise Products Partners L.P. Master Limited Partnership Conference March 8, 2006
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.) This presentation utilizes Non-GAAP financial measures. Please see slides at the end of the presentation for an explanation of gross operating margin and a reconciliation to operating income, which is the most directly comparable financial measure calculated accord
Slide 4: Key Investment Considerations
Key Investment Considerations Leading business positions across the midstream energy sector with strategically located assets that access the most prolific supply basins and largest consuming regions of the U.S. One of the strongest organic growth profiles in the industry Lower cost of capital than
Slide 5: Unique Ownership Structure
Unique Ownership Structure Value of interests in EPD and EPE of $6.3 billion Chairman and co-founder of EPD gets no compensation from EPD Sponsor has long-term investment horizon Sponsor has consistently been supportive of growth in EPD
Slide 6: Proven Growth, Superior Returns
Proven Growth, Superior Returns
Slide 7: 2005 Accomplishments
2005 Accomplishments Record earnings and cash flow Successfully integrated EPD and GTM Merger cost savings contributed to record earnings Business and geographic diversification deliver stable cash flows Increased cash distributions to unitholders by 9.4% and provided 1.26x coverage Retained approxi
Slide 8: Overview of 2005 Results
Overview of 2005 Results Ein mitions) Fourth Quarter") —_ Year Ending Dec. 31 2005 2004") 2005 20047) Gross Operating Margin By Segment: NGL Pipelines & Services $182 $142 $580 $374 Onshore Natural Gas Pipelines & Services 96 72 363 a1 Offshore Pipelines & Services 15 34 77 36 Petrochemical Services
Slide 9: Pro Forma Capitalization
Pro Forma Capitalization Avg. life of debt - 10.6 years Avg. interest rate- 5.52%
Slide 10: Integrated Midstream Energy Services
Integrated Midstream Energy Services Fees are earned at each link of value chain
Slide 11: Access to Supply Growth Drives Expansion Strategies
Access to Supply Growth Drives Expansion Strategies
Slide 12: Major Growth Projects Overview
Major Growth Projects Overview(1)
Slide 13: Western U.S. Growth Strategy: Rocky Mountain Expansion Projects
Western U.S. Growth Strategy Rocky Mountain Expansion Projects EPD will benefit from natural gas and NGL production growth from Rockies New investments include: Meeker Processing Plant Pioneer Processing Plant Jonah Gathering JV 50 MBPD expansion of Mid-America Pipeline (“MAPL”) 75 MBPD Hobbs NGL fr
Slide 14: Western U.S. Growth Strategy: Piceance Basin Processing Plant
Western U.S. Growth Strategy Piceance Basin Processing Plant Piceance Basin is a prolific unconventional gas play with volume growth of 20% / year Executed long-term contract with EnCana to process up to 1.3 Bcf/d of NGLs Meeker Plant Phase I - 750 MMcf/d to produce up to 35 MBPD of NGLs Plant and 5
Slide 15: Western U.S. Growth Strategy: Jonah and Pinedale Fields Growth
Western U.S. Growth Strategy Jonah and Pinedale Fields Growth Jonah / Pinedale cumulative production - 2.1 Tcf with 30 Tcf ultimate recoverable reserves1 Production expected to grow from 1.4 Bcf/d to 3.3 Bcf/d1 Next Jonah Gas Gathering expansion underway to increase system capacity to 2 Bcf/d and re
Slide 16: Western U.S. Growth Strategy: Expected NGL Volume Growth in Rockies
Western U.S. Growth Strategy Expected NGL Volume Growth in Rockies1 MAPL Rocky Mountain leg flowed at 90%+ of 225 MBPD capacity in 2005 MAPL Phase I 50 MBPD expansion under construction Project expected to be completed mid-2007
Slide 17: Western U.S. Growth Strategy: Fractionation Expansion - Hobbs
Western U.S. Growth Strategy Fractionation Expansion - Hobbs EPD controlled NGL fractionation volumes consistently exceeded EPD’s 210 MBPD capacity at Mont Belvieu in 2005 requiring offloads to 3rd parties MTBV West Texas II fractionation expansion (15 MBPD) to be operational in April 2006 75 MBPD H
Slide 18: Deepwater GOM Growth Strategy: Enterprise Gulf of Mexico Assets
Deepwater GOM Growth Strategy Enterprise Gulf of Mexico Assets Active in the Gulf of Mexico since 1993 Integrated pipeline and platform network covers major corridors with active developments New projects supported by substantial reserve and fixed fee commitments Hurricanes delay production ramp-up
Slide 19: Deepwater GOM Growth Strategy: Constitution Oil & Gas Pipelines
Deepwater GOM Growth Strategy Constitution Oil & Gas Pipelines Owner / Operator - EPD First production - February 15, 2006 (ahead of schedule) Currently producing 20 MBPD and 10 MMcf/d from 2 wells at Ticonderoga Feeds downstream Anaconda, Cameron Highway and Poseidon pipelines Potential processing,
Slide 20: Deepwater GOM Growth Strategy: Independence Hub Platform & Trail Pipeline
Deepwater GOM Growth Strategy Independence Hub Platform & Trail Pipeline Hub (80% Enterprise) / Pipeline (100% Enterprise) Expanded Hub and Pipeline to 1 Bcf/d capacity Three additional discoveries since project was sanctioned Producers - Anadarko, Kerr-McGee, Dominion, Spinnaker, Devon New 134-mile
Slide 21: Deepwater GOM Growth Strategy: Independence Construction Update
Deepwater GOM Growth Strategy Independence Construction Update Topside and hull fabrication is 70% complete March 2006 - Pipeline installation April / Aug 2006 - Load-out, hull transport and topside integration Aug / Oct 2006 - Platform installation and commissioning Oct / Dec 2006 - Pipeline commis
Slide 22: Gross Operating Margin Potential: Major Growth Projects
Gross Operating Margin Potential Major Growth Projects1 2006 is a bridge year in this construction cycle Increase in gross operating margin is compared to a 2005 base Does not account for potential additional organic growth projects or acquisitions
Slide 23: EPD's Long-Term Total Return Focus
EPD’s Long-Term Total Return Focus EPD’s attributes support long-term value creation for LPs Lower cost of capital with GP splits capped at 25% Significantly reduces the amount of investment and cash flow growth necessary to drive LP growth rate Large portfolio of higher return organic projects Enha
Slide 24: Key Investment Considerations
Key Investment Considerations Leading business positions across the midstream energy sector with strategically located assets that access the most prolific supply basins and largest consuming regions of the U.S. One of the strongest organic growth profiles in the industry Lower cost of capital than
Slide 25: Questions and Answers
Enterprise Products Partners L.P. Questions and Answers
Slide 26: Non-GAAP Reconciliations
Non-GAAP Reconciliations © Allrights reserved. Enterprise Products Partners LP. 26
Slide 27: Non-GAAP Reconciliations
Non-GAAP Reconciliations Forte Tree Mant Forte Tooke Mate Ended Decor Ended Dacerber (GAAP "sk pode y ad) opeang aces" 000) Neeme 5 meant § UH 6 gwme § ARH “Aide tonetincome to doive BDA: ‘al kamestecpace (ecadngrebted mn atintin) saan sagt 239 wsr0 ‘dedmoviine ncome ts 408 10s 8382 5761 ‘a epecsion
Slide 28: Non-GAAP Reconciliations
Non-GAAP Reconciliations Radaqiise Probus Parnas. Fete Tree Mas FarfheTwebe Mente Gees Operating Mpa by Seger (Dats 000) He Deee th _ ied Dewar 31 a 7 a 7 (hos cpantrgmughby gmat: NOL Pplnes & Saves B wns § ates 8 som FHL (dure Natl Cas Pes & Services 9532 rd S520 ner? (tdure Ppskusé Saves 13335 330
Slide 29: Non-GAAP Reconciliations
Non-GAAP Reconciliations © Allrights reserved. Enterprise Products Partners LP. 23
Enterprise Products Partners — Master Limited Partnership Conference 2006 on 6ix