Enterprise Products Partners L.p. · NYSE:EPD
Enterprise Products Partners L.p — Presentation (February 2005)
30 slides from Enterprise Products Partners L.p's investor presentation, Feb 8, 2005
Slide 1: Enterprise Products Partners L.P. Equity Offering February 2005
Enterprise Products Partners L.P. Equity Offering February 2005
Slide 2: Offering Summary
Offering Summary Securities Offered: 10,000,000 Units Over-Allotment Option: 1,500,000 Units Last Reported Price: $27.24 per unit (as of 02/04/05) Current Distribution / Yield: $0.40 quarterly ($1.60 annually) / 5.9% Tax Deferral: >90% through December 31, 2007 Expected Pricing: February 10, 2005 Us
Slide 3: Management
Management Dan Duncan Chairman & Co-founder Mike Creel Executive Vice President & CFO Randy Burkhalter Director, Investor Relations
Slide 4: Management
Management O.S. “Dub” Andras Vice-Chairman & CEO Bob Phillips President & COO Randy Fowler Vice President & Treasurer
Slide 5: 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 6: 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 adequat
Slide 7: Forward looking statements (cont.)
Forward looking statements (cont.) This presentation utilizes Non-GAAP financial measures. Please read – “Non-GAAP Financial Measures” and “Non-GAAP Reconciliations” in the prospectus supplement for an explanation of gross operating margin and a reconciliation to operating income, which is the most
Slide 8: Key Investments Considerations
Key Investments 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 rec
Slide 9: 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 Prior to GulfTerra merger, ranked 336th on Fortune 500 and 7t
Slide 10: Integrated Midstream Energy Services
Integrated Midstream Energy Services Fees are earned at each link of value chain
Slide 11: Proven growth, superior returns
Proven growth, superior returns
Slide 12: 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 effects of natural gas prices Extended integrated value chain to pr
Slide 13: Enterprise Asset Base
Enterprise Asset Base SION NGLPipsines Natuial Gaz Pipelines Natuzal Gas Pipeline Under Construction Crude Gil Fipaines 4K Fractonaton Facity ‘A. Natual Gaz Processing Plant @ Storage Facilty mus Import/Export Teminal % Platioom Platform Under Conetrucion a ©All rights reserved. Enterprise Products
Slide 14: Diversified operations
Diversified 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 & Services (12%
Slide 15: Leading Business Positions Across Midstream Energy Value Chain
Leading Business Positions Across Midstream Energy Value Chain
Slide 16: $2 Billion of Growth Opportunities
$2 Billion of Growth Opportunities
Slide 17: Southern Green Canyon Value Chain
Southern Green Canyon Value Chain
Slide 18: 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 10 additional fields 15 of 18 wells planned for anchor discoveries have been drilled Large resource basin of approx. 11,500 square miles Life of lease contracts
Slide 19: Independence Hub
Independence Hub San Jacino Desret9 Spiderman Deezowzt Calisto w lasinas WW Merganser vonee \ , Peemomar® | ERSHED Be Anchor Fela 836957 Pipe IR Arre2t Se Recent Tie wack Discovery Gon Jubilee ried ie Potentan ie Back ay a0s349 TR 2667308 ©All rights reserved. Enterprise Products Parners L.P. 19
Slide 20: Unique Ownership Structure
Unique Ownership Structure Largest % ownership by Management in energy industry Management interest aligned with limited partners supported by unit purchases Approx. $352 million of new EPD units since October 2002 Acquired remaining 9.9% of EPD GP and 13.5 million EPD units from El Paso for $425 mi
Slide 21: Financial Overview
ENTERPRISE Financial Overview
Slide 22: 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 23: MLP Math: 25% vs. 50% GP Splits
MLP Math: 25% vs. 50% GP Splits Lower Splits = Lower Cost of Capital Savings in Distributions Paid to GP with 25% Splits GP’s Share of Distribution Increases
Slide 24: Overview of Fourth Quarter Results
Overview of Fourth Quarter Results
Slide 25: Pro Forma Capitalization
Pro Forma Capitalization (in mitions) Cash Current Maturities of Debt Long-term Debt Minority Interest Partners’ Equity Total Capitalization % Debtto Total Capitalization September 30, 2004 Pro Forma") ProForma _As Adjusted $234 $234 607 342 3,925 3,924 61 61 5,369 5,635 $9,962 $9,962 45.5% 42.8% 4.
Slide 26: EPD Meets S&P Criteria
EPD Meets S&P 500 Criteria (1) Other Criteria Public Float > 50% U.S. Based Operating Company Financial Viability: Net Income Liquidity: Ratio of $ Value Traded to Market Cap > 30% Equity Market Capitalization
Slide 27: Key Investment Considerations
Key Investment Considerations Strategically located assets serving the most prolific supply basins for natural gas, 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 recent completion of GulfT
Slide 28: Questions and Answers
Enterprise Products Partners L.P. Questions and Answers
Slide 29: Non-GAAP Reconciliations
Non-GAAP Reconciliations Reconciliation of Non-GAAP "Total gross operating margin" to GAAP "Operating income" Fourth Quarter‘ Year Ending Dec. 34 Gin mittions) 2003 _ 2004") 2003 _2004 7) Operating income 566 3178 $248 $423 Adjustments to reconcile Operating Income to Total gross operating margin: D
Slide 30: Non-GAAP Reconciliations
Non-GAAP Reconciliations Reconciliation of Non-GAAP "EBITDA" to GAAP "Net income" oF "Incoming from continuing operations" and GAAP "Cash provided by operating activities" Fourth Quarter) Year Ending Dec. 31 (Sinmitions) 2003 _ 2004") __2003___ 20041") Net income 54 5116 $105 $268 Adlustments to den
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