Enterprise Products Partners L.p. · NYSE:EPD
Enterprise Products Partners L.p — Q4 2022 Earnings Presentation
23 slides from Enterprise Products Partners L.p's earnings presentation, Feb 1, 2023
Slide 1: Fourth Quarter 2022 Earnings Support Slides
Fourth Quarter 2022 Earnings Support Slides February 1, 2023 NYSE: EPD
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements based on the beliefs of the company, as well as assumptions made by, and information currently available to our management team (including information published by third parties). When used in this presentation, words s
Slide 3: Qualifying Statements
Qualifying Statements This supplemental package contains earnings support slides highlighting major variances for the quarter. This data should be read in conjunction with the information contained in the earnings release for the fourth quarter of 2022 and our SEC Form 10-K (when filed), which provi
Slide 4: Enterprise Allocation of Capital
Enterprise Allocation of Capital 2023 Outlook Capital Expenditure Updates* • Projected 2023 Growth Capital Expenditures ≈$2.3 to 2.5 billion (“B”) • Projected 2023 Sustaining Capital Expenditures ≈$400 million (“MM”) Maintain and Protect Balance Sheet • Leverage Ratio(1): Target ratio of 3.0 (+/– 0.
Slide 5: Returning Capital to Equity Investors
Returning Capital to Equity Investors 2022 Results $4.4B Returned $4.5B Reinvested to $6.2B to Equity Holders Increase EPD Equity Value $12.0 $8.1 ($4.9) 71% $10.0 Adjusted FCF $3.2 ($4.1) Payout Ratio(1) $8.0 $ Billions ($0.2) $6.0 ($0.3) ($1.3) $4.0 ($3.2) $3.0 $2.0 ($0.1) $0.2 $0.0 Cash at 2022 A
Slide 6: Growth Capital Updates
Growth Capital Updates ≈$5.8B of Major Projects Under Construction Forecast Capital Project Summary In-Service Estimated Annual Organic Capital Midland Basin Poseidon Plant (Plant 6) 3Q 2023 Project Spending $2.5 Midland Basin Leonidas Plant (Plant 7) 1Q 2024 Mentone II 4Q 2023 Natural Gas Liquids $
Slide 7: Total Gross Operating Margin (GOM) Bridge
Total Gross Operating Margin (“GOM”) Bridge 4Q 2022 Comparisons $ in MMs 4Q 2022 vs. 4Q 2021 $ in MMs 4Q 2022 vs. 3Q 2022 4Q 2021 Non-Cash New & Other 4Q 2022 3Q 2022 Non-Cash New & Other 4Q 2022 GOM MTM Expanded GOM GOM MTM Expanded GOM Change Assets Change Assets Details: • Non-cash mark-to-market
Slide 8: Indicative Attribution of Segment GOM
Indicative Attribution of Segment GOM As of Year-End 2022 2020 2021 2022 100% 5% 12% 10% 10% 9% 5% 13% 16% 16% 13% 16% 16% 90% 20% 17% 2% 3% 26% 2% 5% 15% 10% 4% 80% 10% 10% 7% 11% 70% 13% 60% 50% 100% 88% 90% 88% 87% 40% 82% 80% 82% 77% 74% 76% 74% 73% 72% 30% 61% 20% 10% 0% NGL Crude Natural Petch
Slide 9: Indicative Attribution of Segment GOM: Select Businesses
Indicative Attribution of Segment GOM Select Businesses as of Year-End 2022 Natural Gas Processing GOM $1,200 $0.60 $1,066 $1,000 16% $0.50 GOM in $Millions $800 $0.40 Price Spread $600 50% $0.30 $497 18% $364 $400 $332 $0.20 Includes increased POP 25% 18% 29% 12% revenues from Midland $200 $122 13%
Slide 10: Segment Gross Operating Margin Variance: 4Q 2022 vs. 4Q 2021
Segment Gross Operating Margin Variance 4Q 2022 vs. 4Q 2021
Slide 11: Total GOM Bridge by Segment
Total GOM Bridge by Segment 4Q 2022 vs. 4Q 2021 Gross Operating Margin Bridge $ in MMs 4Q 2021 NGL Crude Oil Natural Gas Petrochemicals Net Adj. for 4Q 2022 GOM Segment Segment Segment & Ref. Products Shipper Make-up GOM Segment Rights Details: • The following slides summarize the primary drivers fo
Slide 12: NGL Segment
NGL Segment 4Q 2022 vs. 4Q 2021 $ in MMs Gross Operating Margin Bridge 4Q 2021 Non-Cash Permian NGL Eastern South Texas Morgan’s Permian Basin Chambers Other 4Q 2022 GOM MTM Change Processing Marketing Ethane Processing Point Ethane & Rocky County GOM Facilities (excl. MTM) Pipelines Facilities Expo
Slide 13: Crude Oil Segment
Crude Oil Segment 4Q 2022 vs. 4Q 2021 $ in MMs Gross Operating Margin Bridge 4Q 2021 Non-Cash EFS Seaway West Texas Marketing EHT – Crude & Other 4Q 2022 GOM MTM Change Midstream Pipeline Pipeline System (excl. MTM & Beaumont GOM Details: System M2E System) Marine West Terminal • Non-cash MTM activi
Slide 14: Natural Gas Segment
Natural Gas Segment 4Q 2022 vs. 4Q 2021 $ in MMs Gross Operating Margin Bridge 4Q 2021 Non-Cash Natural Gas Texas Midland Basin Rocky Mountain Delaware Basin Other 4Q 2022 GOM MTM Change Marketing Intrastate Gathering Gathering Gathering GOM (excl. MTM) System System Systems System Details: • Non-ca
Slide 15: Petrochemical & Refined Products Segment
Petrochemical & Refined Products Segment 4Q 2022 vs. 4Q 2021 Gross Operating Margin Bridge $ in MMs 4Q 2021 Non-Cash Octane Refined Products Marine Chambers County Other 4Q 2022 GOM MTM Change Enhancement Pipelines & Transportation & Propylene GOM & Related Related Activities Other Services Producti
Slide 16: Segment Gross Operating Margin Variance: 4Q 2022 vs. 3Q 2022
Segment Gross Operating Margin Variance 4Q 2022 vs. 3Q 2022
Slide 17: Total GOM Bridge by Segment
Total GOM Bridge by Segment 4Q 2022 vs. 3Q 2022 Gross Operating Margin Bridge $ in MMs 3Q 2022 NGL Crude Oil Natural Gas Petrochemicals Net Adj. for 4Q 2022 GOM Segment Segment Segment & Ref. Products Shipper Make-up GOM Segment Rights Details: • The following slides summarize the primary drivers fo
Slide 18: NGL Segment
NGL Segment 4Q 2022 vs. 3Q 2022 $ in MMs Gross Operating Margin Bridge 3Q 2022 Non-Cash Midland NGL Permian Basin EHT Other 4Q 2022 GOM MTM Change Basin Marketing & Rocky GOM Processing (excl. MTM) Mountain Plants NGL Pipelines Details: • Non-cash MTM activity resulted in a loss of $40MM in 4Q 2022
Slide 19: Crude Oil Segment
Crude Oil Segment 4Q 2022 vs. 3Q 2022 $ in MMs Gross Operating Margin Bridge 3Q 2022 Non-Cash Midland-to-Echo Marketing West Texas EHT - Crude EFS Midstream Other 4Q 2022 GOM MTM Change System (excl. MTM & Pipeline System System GOM M2E System) Details: • Non-cash MTM activity resulted in a gain of
Slide 20: Natural Gas Segment
Natural Gas Segment 4Q 2022 vs. 3Q 2022 Gross Operating Margin Bridge $ in MMs 3Q 2022 Natural Gas Rocky Mountain Other 4Q 2022 GOM Marketing Gathering GOM (excl. MTM) Systems Details: • Non‐cash MTM activity resulted in a loss of $1MM in each of 4Q 2022 and 3Q 2022 • Excluding MTM activity, gross o
Slide 21: Petrochemical & Ref. Products Segment
Petrochemical & Ref. Products Segment 4Q 2022 vs. 3Q 2022 $ in MMs Gross Operating Margin Bridge 3Q 2022 Non-Cash Chambers County Octane Refined Products Ethylene Exports Other 4Q 2022 GOM MTM Change Propylene Enhancement Pipelines & & Related GOM Production & Related Related Activities Activities F
Slide 22: Indicative Attribution of GOM
Indicative Attribution of GOM • Slides 8-9 attribute gross operating margin (GOM) among fee-based, commodity-based and differential- based business activities. Most activities fit easily into one category; however, the classification of certain activities involves an element of subjectivity. The cla
Slide 23: Definitions
Definitions Net Cash Flows Provided by Operating Activities (“CFFO”) represents the GAAP financial measure “Net cash flows provided by operating activities”. Adjusted CFFO is CFFO before the net effect of changes in operating accounts (working capital). Free Cash Flow (“FCF”) is CFFO less investing
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