Energy Transfer Lp · NYSE:ET
Energy Transfer Lp — Merger or Acquisition (September 2019)
15 slides from Energy Transfer Lp's merger presentation, Sep 16, 2019
Slide 1: Acquisition of SemGroup Corporation
Exhibit 99.2 ENERGY TRANSFER Acquisition of SemGroup Corporation September 16, 2019 Exhibit 99.2 ENERGY TRANSFER Acquisition of SemGroup Corporation September 16, 2019
Slide 2: Disclaimer
DISCLAIMER Forward-Looking Statements This presentation includes “forward-looking” statements. Forward-looking statements are identified as any statement that does not relate strictly to historical or current facts. Statements using words such as “anticipate,” “believe,” “intend,” “project,” “plan,”
Slide 3: Key Transaction Highlights
KEY TRANSACTION HIGHLIGHTS Immediately Accretive Premier U.S. Gulf Coast Transaction With No Material Terminal With Stable, Take- Credit Impact or-Pay Cash Flows Generates an Aggregate $500MM of DCF 18.2 MMBbl Crude Storage Capacity & Coverage 2020-2022 Export Capabilities Complementary Assets That
Slide 4: Acquisition Creates a Unique Collection of Synergistic Businesses
ACQUISITION CREATES A UNIQUE COLLECTION OF SYNERGISTIC BUSINESSES THAT WILL DRIVE NEAR- AND LONG-TERM VALUE Ø Strategic acquisition that significantly strengthens ET’s crude oil transportation, Gather ~ 13.2 million terminalling and export capabilities mmbtu/d of gas & 565,000 bbls/d of Ø SEMG’s fra
Slide 5: Transaction Overview
TRANSACTION OVERVIEW Transaction Structure Overview of Merger Terms Ø Energy Transfer has executed a definitive agreement to acquire SemGroup for $17.00 per share of Class A Common Stock of SEMG ET Common Units ‒ Offer price represents a 65% premium to the closing price of SEMG shares on September 1
Slide 6: Offer Price Relative to SEMG Historical Share Price
OFFER PRICE RELATIVE TO SEMG HISTORICAL SHARE PRICE $ per Share $100 $90 $80 $70 $60 $50 $40 $30 $20 Offer Price $17.00 $10 SEMG $10.28 $0 Sep '14 Sep '15 Sep '16 Sep '17 Sep '18 Sep '19 Compelling value proposition for ET unitholders at this time 6OFFER PRICE RELATIVE TO SEMG HISTORICAL SHARE PRICE
Slide 7: Consistent with Core Strategy
CONSISTENT WITH CORE STRATEGY Adds Complementary Maintains Solid Financial Provides Balanced Growth Assets Position Ø Expect $170MM+ annual run-Ø Bolt-on M&A with incremental Ø No material impact on credit rate synergies, including value from organic growth statistics commercial, operational, projec
Slide 8: SemGroup Acquisition Expands Crude Oil Asset Footprint
SEMGROUP ACQUISITION USA Expands Crude Oil Asset Footprint Canada Ø Strategic franchise-quality position on the Houston Ship Channel Ø Enhanced connectivity along the U.S. Gulf Coast ND AB SK MT and throughout ET’s system BC Ø Increases reach into the DJ basin where ET does not have a presence SD WY
Slide 9: Further Developing a Leading Crude Handling Portfolio
FURTHER DEVELOPING A LEADING CRUDE HANDLING PORTFOLIO Presence in Key Liquids Basins Ø Entry into the DJ Basin through SEMG’s established asset base of: ‒ 90+MBbl/d Crude and 90+MBbl/d (1) NGL White Cliffs Pipelines ‒ Wattenberg Oil Trunkline and 360MMBbl associated storage ‒ 350MMBbl Platteville st
Slide 10: Growing Unique Export Capabilities
GROWING UNIQUE EXPORT CAPABILITIES Houston Fuel Oil Terminal • 330 acre site on the Houston Ship Channel • >18 MMBbls crude storage capacity • Deep water port with five ship and seven barge docks • Rail and truck unloading capabilities Marcus Hook Industrial Complex • ~800 acre site: inbound and out
Slide 11: Ted Collins Pipeline - A Strategic Connection on the U.S. Gulf Coast
TED COLLINS PIPELINE - A STRATEGIC CONNECTION ON THE U.S. GULF COAST Ø ~75-mile pipeline connecting the Houston Ship Channel and ET’s Nederland Terminal Ø Provides best-in-class access to multiple markets Ø Houston Ø Beaumont/Port Arthur Ø St. James Ø Initial capacity of 500 MBbl/d+ Ø Provides immed
Slide 12: ET & SEMG Complementary Assets
ET & SEMG COMPLEMENTARY ASSETS Fully-integrated midstream platform enhances ability to offer wide range of services to both domestic and international markets ALBERTA, Wapiti CANADA Patterson Creek KA Fox Creek K3 WWC Eagle Point Wattenberg Oil Trunkline Marcus Hook White Cliffs Pipeline SemGroup Cu
Slide 13: From the Wellhead to the Water
FROM THE WELLHEAD TO THE WATER Natural NGLs Crude Gas Oil Gather ~ 13.2 million Transport ~22.9 Capable of exporting One of the largest Fractionate ~700 Transport ~4.7 MMBtu/d of gas & million MMBtu/d of ~1.5 MMBbls/d of planned LNG Export MBbl/d of NGLs at MMBbl/d of crude natural gas via inter & 5
Slide 14: Successful Acquisition Track Record
SUCCESSFUL ACQUISITION TRACK RECORD HPL TUFCO Houston Pipeline Co. 2004 2005 2006 2011 2012 2014 2015 2012 2012 2016 2017 Ø ET Management has a proven track record of successfully integrating acquisitions Ø Knowledge of respective assets and businesses facilitates integrations of: Ø Operations Ø Com
Slide 15: Transaction Timeline
TRANSACTION TIMELINE September 2019 October – November 2019 Late 2019 / Early 2020 Ø Sign Agreement Ø Proxy statement / S-4 registration Ø SEMG Ø Announce Transaction statement declared effective by the SEC shareholder vote Ø Begin drafting Proxy / and file definitive proxy statement with the Ø Tran
Energy Transfer — Merger or Acquisition (September 2019) on 6ix