Enterprise Products Partners L.p. · NYSE:EPD
Enterprise Products Partners L.p — Q2 2020 Earnings Presentation
22 slides from Enterprise Products Partners L.p's earnings presentation, Jul 29, 2020
Slide 1: Second Quarter 2020 Earnings Support Slides
SECOND QUARTER 2020 EARNINGS SUPPORT SLIDES July 29, 2020
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 of earnings support slides provides highlights of major variances for the quarter. • This data should be read in conjunction with the information contained in the earnings release for the second quarter of 2020 and our second quarter SEC Form 10-Q (w
Slide 4: Indicative Attribution of Gross Operating Margin
Indicative Attribution of Gross Operating Margin Slides 9–11 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 subj
Slide 5: Enterprise 2020 Financial Outlook
Enterprise 2020 Financial Outlook Capital Expenditure Updates • 2020 Growth Capital Forecast: ≈$2.5–$3 billion Currently forecasting 2021 and 2022 growth capital of ≈$2.3 billion and $1 billion, respectively* o Based on sanctioned projects to date Continuing to negotiate JV opportunities which c
Slide 6: Durable Cash Flows
Durable Cash Flows Through Business Cycles CFFO per Unit & Distribution per Unit Gross Operating Margin and DCF $100 $3.50 $160 $2,500 $90 $2.96 $2.96 $2.80 $3.00 $140 $80 $2,000 $120 $70 $2.20 $2.50 $2.10 $2.17 $2.00 $100 $60 $1.92 $1.95 $1,500 $2.00 $/unit $/Bbl $50 $1.59 $1.56 $1.61 $/Bbl $80 $1.
Slide 7: Petchem & Products Update: Capital Updates
Capital Updates ≈$6.6B of Major Capital Projects Under Construction* Highlighted Major Capital Projects Forecast In-Service 1Q 20 2Q 20 3Q 20 4Q 20 2021+ Mont Belvieu Area Fractionators 10 & 11 1Q 2020 & 3Q 2020 In-Serv √ Natural Gas Texas Express & Front Range Expansions 2Q 2020 In-Serv Liquids Upd
Slide 8: Gross Operating Margin Bridge
Gross Operating Margin Bridge $ in MMs 2Q 2020 vs. 2Q 2019 $ in MMs 2Q 2020 vs. 1Q 2020 2Q 2019 Non-Cash New & Existing Legacy Other Asset 2Q 2020 1Q 2020 Non-Cash New & Existing Legacy Gas Other Asset 2Q 2020 GOM MTM Expanded Assets with Gas Plants Changes offset GOM GOM MTM Expanded Assets with Pl
Slide 9: Indicative Attribution of Gross Operating Margin
Indicative Attribution of Gross Operating Margin $9.0 $8.3B $8.0 10% $7.3B 4% $7.0 8% Gross Operating Margin in $Billions 6% $6.0 $5.7B $5.2B 6% 5% $5.0 5% 4% $4.0B $4.0 9% 86% 3% $3.0 86% fee-based 89% fee-based 91% $2.0 fee-based fee-based 88% fee-based $1.0 $0.0 2016 2017 2018 2019 1H 2020 Fee-Ba
Slide 10: Indicative Attribution of Segment GOM: 1H 2020
Indicative Attribution of Segment GOM: 1H 2020 100% 9% 10% 10% 15% 4% 2% 80% 9% (4) % Breakout of GOM 60% 91% 86% 88% 40% fee-based fee-based 76% fee-based fee-based 20% 0% (1) (2) (3) NGL Segment Crude Segment Natural Gas Segment Petchem & Refined Products Segment Fee-Based Commodity Price-Based Di
Slide 11: Indicative Attribution of GOM for Select Businesses
Indicative Attribution of GOM for Select Businesses Natural Gas Processing GOM $600 $0.50 $500 $500 $0.40 $400 GOM in $Millions $356 $0.30 Price Spread $300 $244 $0.20 $200 $169 57% 70% $0.10 $100 81% 68% $50 100% $0 $0.00 (1) 2016 2017 2018 2019 1H 2020 Fee POP & POL Keepwhole Indicative Processing
Slide 12: Segment Gross Operating Margin Variance 2Q 2020 vs. 2Q 2019
SEGMENT GROSS OPERATING MARGIN VARIANCE 2Q 2020 VS. 2Q 2019
Slide 13: NGL Segment 2Q 2020 vs. 2Q 2019
NGL Segment 2Q 2020 vs. 2Q 2019 $ in MMs Gross Operating Margin Bridge $4 2Q 2019 Non-Cash Mont Belvieu EHT Export Permian Gas South Texas South LA & Legacy Gas Other 2Q 2020 GOM MTM Change Area Terminal & Plants Pipelines LouTex Pipelines Plants Changes GOM Fractionators Related Pipeline Details: •
Slide 14: Crude Oil Segment 2Q 2020 vs. 2Q 2019
Crude Oil Segment 2Q 2020 vs. 2Q 2019 $ in MMs Gross Operating Margin Bridge ($4) 2Q 2019 Non-Cash Marketing ECHO South Texas & Midland-to-ECHO Other 2Q 2020 GOM MTM Change (excl. MTM Terminal Eagle Ford Pipelines System Changes GOM & M2E1) (excl. MTM) Details: • Non-cash MTM activity resulted in a
Slide 15: Natural Gas Segment 2Q 2020 vs. 2Q 2019
Natural Gas Segment 2Q 2020 vs. 2Q 2019 $ in MMs Gross Operating Margin Bridge 2Q 2019 Non-Cash Texas Intrastate Natural Gas Acadian Gas Other 2Q 2020 GOM MTM Change System Marketing System Changes GOM Details: • Non-cash MTM activity resulted in a loss of $4MM in 2Q 2020 compared to an immaterial f
Slide 16: Petrochemical & Ref. Products Segment 2Q 2020 vs. 2Q 2019
Petrochemical & Ref. Products Segment 2Q 2020 vs. 2Q 2019 $ in MMs Gross Operating Margin Bridge $192 2Q 2019 Non-Cash Propylene iBDH, Octane TE Products Butane Other 2Q 2020 GOM MTM Change Production Enhancement Pipeline & Related Isomerization & Changes GOM & HPIB Terminals Related DIBs Details: •
Slide 17: Segment Gross Operating Margin Variance 2Q 2020 vs. 1Q 2020
SEGMENT GROSS OPERATING MARGIN VARIANCE 2Q 2020 VS. 1Q 2020
Slide 18: NGL Segment 2Q 2020 vs. 1Q 2020
NGL Segment 2Q 2020 vs. 1Q 2020 $ in MMs Gross Operating Margin Bridge 1Q 2020 Non-Cash Mont Belvieu South LA & South Texas & MAPL & Legacy Gas Marketing Other 2Q 2020 GOM MTM Change Area LouTex Eagle Ford Terminals, Plants (excl. MTM) Changes GOM Fractionators Pipelines Pipelines Seminole & Chaparr
Slide 19: Crude Oil Segment 2Q 2020 vs. 1Q 2020
Crude Oil Segment 2Q 2020 vs. 1Q 2020 $ in MMs Gross Operating Margin Bridge 1Q 2020 Non-Cash Marketing EHT Export South Texas & Other 2Q 2020 GOM MTM Change (excl. MTM) Terminal Eagle Ford Pipelines Changes GOM Details: • Non-cash MTM activity resulted in a gain of $8MM in 2Q 2020 compared to a gai
Slide 20: Natural Gas Segment 2Q 2020 vs. 1Q 2020
Natural Gas Segment 2Q 2020 vs. 1Q 2020 $ in MMs Gross Operating Margin Bridge ($15) 1Q 2020 Non-Cash Texas Intrastate Acadian Gas Other 2Q 2020 GOM MTM Change Pipeline System Changes GOM Details: • Non-cash MTM activity resulted in a loss of $4MM in 2Q 2020 compared to a gain of $29MM in 1Q 2020 •
Slide 21: Petrochemical & Ref. Products Segment 2Q 2020 vs. 1Q 2020
Petrochemical & Ref. Products Segment 2Q 2020 vs. 1Q 2020 $ in MMs Gross Operating Margin Bridge ($21) 1Q 2020 Non-Cash Ethylene Pipeline, TE Products iBDH, Octane Propylene Other 2Q 2020 GOM MTM Change Export Terminal & Pipeline & Related Enhancement Production GOM Related Activities Terminals & HP
Slide 22: Definitions
Definitions • Return on Invested Capital (“ROIC”) is calculated by dividing non-GAAP gross operating margin for the assets (the numerator) by the average historical cost of the underlying assets (the denominator). The average historical cost includes fixed assets, investments in unconsolidated affil
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