Enterprise Products Partners L.p. · NYSE:EPD
Enterprise Products Partners L.p — RBC Dain Rauscher Luncheon Meeting (May 2006)
25 slides from Enterprise Products Partners L.p's conference presentation, May 18, 2006
Slide 1: Enterprise Products Partners L.P. RBC Dain Rauscher Luncheon Meeting
Enterprise Products Partners L.P. RBC Dain Rauscher Luncheon Meeting May 18, 2006 Robert G. Phillips President & CEO
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: Unique Ownership Structure
Unique Ownership Structure Value of interests in EPD and EPE of $6.4 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 * Includes the 2% limited partner ownership interest of EPE Uni
Slide 4: Proven Growth, Superior Returns
Proven Growth, Superior Returns
Slide 5: First Quarter 2006 Recap
First Quarter 2006 Recap Delivered record gross operating margin of $313 million and EBITDA of $301 million Revenue and operating income increased by 27% and 17%, respectively from first quarter 2005 Strong contributions from NGL pipelines, onshore natural gas pipelines and storage, and our petroche
Slide 6: First Quarter 2006 Recap (Con't)
First Quarter 2006 Recap (Con’t) Made substantial progress on our organic growth projects Constitution pipelines completed ahead of schedule Completed San Juan optimization project Completed expansion of NGL fractionator at MTBV Expanded scope of Independence Hub & Trail project to 1 Bcf/d Announced
Slide 7: Premier Network of Midstream Energy Assets
Premier Network of Midstream Energy Assets
Slide 8: Access to Supply Growth Drives Expansion Strategies
Access to Supply Growth Drives Expansion Strategies
Slide 9: Major Growth Projects Overview
Major Growth Projects Overview1 Diversified Portfolio of Capital Projects Capital Spending by Year
Slide 10: 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 1 This summary includes selected major growth capit
Slide 11: 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: Pioneer Processing Plant Jonah Gathering JV Meeker Processing Plant 50 MBPD expansion of Mid-America Pipeline (“MAPL”) 75 MBPD Hobbs NGL fr
Slide 12: 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 1.2 to 3.5 Bcf/d (2005 -2012)1 Next Jonah Gas Gathering expansion underway to increase system capacity to 2 Bcf/d
Slide 13: 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% per year Production expected to grow from 0.9 to 1.4 Bcf/d (2005 - 2012)1 Executed long-term contract with EnCana to process up to 1.3 Bcf/d of natural gas Meek
Slide 14: Expected Natural Gas Volume Growth in Rockies
Western U.S. Growth Strategy Expected Natural Gas Volume Growth in Rockies Between 2005 and 2010 industry experts expect natural gas production from the Rockies to increase by 33%, or 2.4 Bcf/d 7.3 - 9.7 Bcf/d Basins characterized by low producer finding costs, long-lived reserves and limited midstr
Slide 15: 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 16: 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) operational in April 2006 75 MBPD Hobbs f
Slide 17: 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 18: 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 19: 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 20: Deepwater GOM Growth Strategy: Independence Construction Update
Deepwater GOM Growth Strategy Independence Construction Update April 14 / July 2006 - Pipelay installation, SCR complete April 23 / May 2006 - Suction pile installation May 9 / June 2006 - Hull enroute from Singapore Topside fabrication ~95% complete July / Oct 2006 - Integration & pre-commissioning
Slide 21: Organic Growth and Lower Cost of Capital Drives Cash Flow Accretion
EPD’s Organic Growth and Lower Cost of Capital Drives Cash Flow Accretion “Cash is King” in the partnership sector Cash flow generated by a new investment supports long-term cost of capital to fund the acquisition plus provides accretion for existing LP units outstanding Many analysts/investors focu
Slide 22: 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 23: Enterprise Products Partners L.P. Questions and Answers
Enterprise Products Partners L.P. Questions and Answers
Slide 24: Non-GAAP Reconciliations
Non-GAAP Reconciliations The following table presents our reconciliation of non-GAAP total segment gross operating margin for the first quarter of 2006 to GAAP operating income for the same period (dollars in thousands). Non-GAAP total segment gross operating margin for first quarter of 2006 $ 312,5
Slide 25: Non-GAAP Reconciliations
Non-GAAP Reconciliations The following table presents our reconciliation of non-GAAP EBITDA for the first quarter of 2006 to GAAP. net cash provided by operating activities (dollars in thousands). Net income for first quarter of 2006 $ 133,777 Additions fo net income to derive EBITDA Interest expens
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