Energy Transfer Lp · NYSE:ET
Energy Transfer Lp — Investor Presentation (January 2020)
31 slides from Energy Transfer Lp's investor presentation, January 2020
Slide 1: Energy Transfer Investor Presentation January 2020
ENERGY TRANSFER Investor Presentation January 2020
Slide 2: Forward-Looking Statements / Legal Disclaimer
FORWARD-LOOKING STATEMENTS / LEGAL DISCLAIMER Management of Energy Transfer LP (ET) will provide this presentation to analysts and/or investors at meetings to be held throughout January 2020. At the meetings, members of management may make statements about future events, outlook and expectations rel
Slide 3: ET Key Investment Highlights
ET KEY INVESTMENT HIGHLIGHTS Growth From Organic Well Positioned Assets Solid Financials Investments Fully integrated platform Completing multi-year Stable cash flow profile spanning entire midstream capex program with minimal contract roll- value chain Seeing strong EBITDA offs Assets wel
Slide 4: What's New
WHAT’S NEW Consistent Growth Recent Developments With Strong Financial/Operational Performance Commissioned Panther II processing plant in Dec. ‘19 Reduced 2020 growth capital outlook $12 Adj. EBITDA1 Midpoint of Closed SEMG acquisition Dec. ’19 2019 Guidance $10 Range PE4 placed in full ser
Slide 5: Delivering on All Fronts
DELIVERING ON ALL FRONTS Operational Q3 2019 Financials Strategic All segments delivered strong Adjusted EBITDA - $2.8 billion Successfully completed results acquisition of SEMG − Up 8% from Q3’18 Reported record NGL SEMG transaction adds transportation throughput, NGL DCF - $1.5 billion
Slide 6: Updated Capex Outlook – A Disciplined, Quicker Cash Generation Cycle
UPDATED CAPEX OUTLOOK – A DISCIPLINED, QUICKER CASH GENERATION CYCLE 2019E Growth Capital: ~$4 billion1 Reduced CAPEX guidance from previous estimate by $600-800 million 2019E Adjusted EBITDA now $11.0 billion to $11.1 billion (increased from $10.8-$11.0 billion in Nov. 2019) Excess cash flow,
Slide 7: SEMG Acquisition Highlights
SEMG ACQUISITION 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 8: SEMG Asset Overview
SEMG ASSET OVERVIEW USA Canada Canada: SemCAMS Midstream U.S. Liquids: Rockies/MidCon Unique platform in liquids-rich Montney MT ND and Duvernay DJ Basin and Cushing • 6 natural gas processing plants • 1,700 miles crude pipelines • ~700 miles natural gas gathering • 8.8 million barrels crude oil sto
Slide 9: ET & SEMG Complementary Assets
ET & SEMG COMPLEMENTARY ASSETS Expands Crude Oil Asset Footprint Strategic franchise-quality position on the Houston Ship Channel Will provide connectivity along the U.S. Gulf Coast and throughout ET’s system Increases reach into the DJ basin where ET does not have a presence Expands Logistica
Slide 10: Transforming Underutilized Assets
TRANSFORMING UNDERUTILIZED ASSETS Mont Belvieu – 2011¹ Mont Belvieu – 2019 Fracs Frac VI IV & V Frac VIII2 Frac VII2 Frac I Frac II Export De-C2 Proposed Frac I Frac III ET • Fractionators: 0 • Fractionators: 6 • Fractionation capacity: 0 bbls/d • Fractionation capacity: Up to 790,000 bbls/d • Propo
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 ~75-mile pipeline to connect the Houston Ship Channel and ET’s Nederland Terminal Will provide best-in-class access to multiple markets Houston Beaumont/Port Arthur St. James Initial capacity of 500 MBbl/d+ Will provi
Slide 12: Successful Acquisition Track Record
SUCCESSFUL ACQUISITION TRACK RECORD HPL TUFCO Houston Pipeline Co. 2004 2005 2006 2011 2012 2012 2012 2014 2015 2016 2017 2019 ET Management has a proven track record of successfully integrating acquisitions Knowledge of respective assets and businesses facilitates integrations of: Operations
Slide 13: Capital Allocation – Increased Focus on Returns
CAPITAL ALLOCATION – INCREASED FOCUS ON RETURNS Organic Unit Buy- Distribution Debt Projects backs Increases Retirements • Maintain strong investment grade balance sheet Leverage target: 4.0 – – Continued improvement in debt metrics 4.5x debt/EBITDA • Efficiently fund organic growth capital projects
Slide 14: Diversified Earnings Mix with Primarily Fee-Based Business
DIVERSIFIED EARNINGS MIX WITH PRIMARILY FEE-BASED BUSINESS Segment1 Contract Structure Strength Q3 2019 Adjusted EBITDA by Segment1 More than 9,500 miles connecting Permian, Fees from transporting SUN, USAC Crude Oil Bakken and Midcon Basins and terminalling & Other Midstream to U.S. markets, includ
Slide 15: Fully Integrated Platform Spanning the Entire Midstream Value Chain
FULLY INTEGRATED PLATFORM SPANNING THE ENTIRE MIDSTREAM VALUE CHAIN Involvement in Major Midstream Themes Across the Best Basins and Logistics Hubs Franchise Strengths Opportunities • Access to multiple shale plays, storage facilities and markets • Marcellus natural gas takeaway to the Midwest, Gu
Slide 16: Significant Management Ownership
SIGNIFICANT MANAGEMENT OWNERSHIP InsiderInsider Ownership Ownership vsIndices vs Major Peers ETWarren Kelcy CEO Unit Purchases Unit Purchases 16% 16,000 > 13.5mm units in last 12 months 14.4% 14,000 13,473 14% 12% 12,000 3,969 Insider Ownership % 10% 10,000 Units (000s) 8% 8,000 3,464 6% 6,000 3,040
Slide 17: Foresee Significant EBITDA Growth from Completion of Project Backlog
FORESEE SIGNIFICANT EBITDA GROWTH IN 2019 FROM COMPLETION OF PROJECT BACKLOG PROJECT SCOPE IN-SERVICE TIMING NGL & Refined Products Mont Belvieu’s Frac VI 150 Mbpd fractionator at Mont Belvieu complex In service Q1 2019 Mont Belvieu’s Frac VII 150 Mbpd fractionator at Mont Belvieu complex Q1 2020 Mo
Slide 18: Crude Oil Segment – Bakken Pipeline Project
CRUDE OIL SEGMENT – BAKKEN PIPELINE PROJECT Bakken Pipeline System1 • 1,915 mile system connecting Bakken production to ET’s Nederland terminal on the Gulf Coast • Placed into service June, 2017 • Recently completed successful open season to bring current system capacity to 570,000 barrels per day •
Slide 19: Crude Oil Segment – Permian Express Pipelines
CRUDE OIL SEGMENT – PERMIAN EXPRESS PIPELINES Permian Express 1 Permian Express 2 • 16-inch, ~380-mile pipeline • 20- & 24-inch, ~400-mile pipeline • 150,000 barrels per day of capacity • 230,000 barrels per day of capacity • Provides transportation from Wichita Falls, TX to Nederland, • Provides tr
Slide 20: NGL & Refined Products Segment – Mariner East System
NGL & REFINED PRODUCTS SEGMENT – MARINER EAST SYSTEM Comprehensive Marcellus/Utica Shale solution reaching local, regional and international markets Provides NGL transportation from OH / Western PA to the Marcus Hook Industrial Complex on the East Coast Supported by long-term, fee-based contract
Slide 21: NGL & Refined Products Segment – Orbit Ethane Export Project
NGL & REFINED PRODUCTS SEGMENT – ORBIT ETHANE EXPORT PROJECT Orbit Export Pipeline and Facility Orbit Pipeline JV Orbit Joint Venture with Satellite Petrochemical USA Corp includes construction of a new ethane export terminal on the U.S. Gulf Coast to provide ethane to Satellite At the terminal,
Slide 22: NGL & Refined Products Segment – Pipeline and Fractionation Expansion
NGL & REFINED PRODUCTS SEGMENT – PIPELINE AND FRACTIONATION EXPANSION Lone Star Express Expansion Mont Belvieu Fractionation Expansions • Total of 6 fractionators at Mont Belvieu • 24-inch, 352-mile expansion • 150,000 bbls/d Frac VI went into service in February 2019 • Will add 400 thousand bbls/d
Slide 23: Midstream Segment – Permian Basin Infrastructure Buildout
MIDSTREAM SEGMENT – PERMIAN BASIN INFRASTRUCTURE BUILDOUT ET is nearing capacity in both the Delaware and Midland Basins due to continued producer demand and strong growth outlook in the Permian As a result of this demand, ET has continued to build out its Permian infrastructure, and recently co
Slide 24: Renewed Commitment to Develop Lake Charles LNG Export Terminal
RENEWED COMMITMENT TO DEVELOP LAKE CHARLES LNG EXPORT TERMINAL Export Project • Executed Project Framework Agreement in March 2019 • Issued comprehensive commercial tender package to U.S. and international consortia to bid for Engineering, Procurement and Construction contract in December 2019 – Exp
Slide 25: Appendix
APPENDIX \ TRANSFER» ® |
Slide 26: Crude Oil Segment
CRUDE OIL SEGMENT Crude Oil Pipelines Crude Oil Acquisition & Marketing ~9,524 miles of crude oil trunk and gathering lines located in the Southwest and Crude truck fleet of approximately 370 trucks Midwest United States Purchase crude at the wellhead from ~3,000 producers Controlling intere
Slide 27: NGL & Refined Products Segment
NGL & REFINED PRODUCTS SEGMENT NGL Storage NGL Pipeline Transportation Fractionation TET Mont Belvieu Storage Hub ~50 million ~4,750 miles of NGL Pipelines 6 Mont Belvieu fractionators (up to 790 Mbpd) barrels NGL storage throughout Texas and Northeast 40 Mbpd King Ranch, 25 Mbpd Geismar ~
Slide 28: Midstream Segment
MIDSTREAM SEGMENT Midstream Asset Map Midstream Highlights Volume growth in key regions: • Q3 2019 gathered volumes reach a record 14 million mmbtu/d, and NGLs produced were ~574,000 bbls/d Permian Capacity Additions: • 200 MMcf/d Rebel II processing plant came online in April 2018 PA • 200 MMcf
Slide 29: Interstate Pipeline Segment
INTERSTATE PIPELINE SEGMENT Interstate Asset Map Interstate Highlights Our interstate pipelines provide: Stability • Approximately 95% of revenue is derived from fixed reservation fees Diversity Rover • Access to multiple shale plays, storage facilities and markets Trunkline Transwestern Growt
Slide 30: Intrastate Pipeline Segment
INTRASTATE PIPELINE SEGMENT Intrastate Asset Map Intrastate Highlights Continue to expect volumes to Mexico to grow, particularly on Trans-Pecos and Comanche Trail pipelines Have seen an increase in 3rd party activity on both of these pipes, mostly via backhaul services being provided to the Tra
Slide 31: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Pro Forma for Mergers Full Year 2018 2019 2017 Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 YTD Net income $ 2,366 $ 489 $ 633 $ 1,391 $ 852 $ 3,365 $ 1,180 $ 1,208 $ 1,161 $ 3,549 (Income) loss from discontinued operations 177 237 26 2 - 265 - - - - Interest expense, net 1,922 466 510 535 544 2
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