Energy Transfer Lp · NYSE:ET
Energy Transfer Lp — Energy Transfer Equity — Investor Day (October 2007)
58 slides from Energy Transfer Lp's investor day presentation, Oct 10, 2007
Slide 1: 2007 Analyst Presentation
2007 Analyst Presentation October 10, 2007
Slide 2: Legal Disclaimer
This presentation may contain statements about future events, outlook and expectations of Energy Transfer Partners, L.P. (ETP) or Energy Transfer Equity, L.P. (ETE), all of which are forward-looking statements. Any statement in this presentation that is not a historical fact may be deemed to be a fo
Slide 3: Legal Disclaimer: pipeline capacity
All references in this presentation to capacity of a pipeline, processing plant or storage facility relate to maximum capacity under normal operating conditions and with respect to pipeline transportation capacity, is subject to multiple factors (including natural gas injections and withdrawals at v
Slide 4: Agenda
Agenda Opening Remarks Kelcy Warren, CEO Regulatory Overview Jerry Langdon, CAO/CCO Financial Overview Brian Jennings, CFO Energy Transfer Company Mackie McCrea, President Transwestern Pipeline Jim Holotik, President
Slide 5: Kelcy Warren, Chief Executive Officer
Kelcy Warren Chief Executive Officer
Slide 6: 2007 Achievements
2007 Achievements Completed 42" Cleburne to Carthage pipeline Completed two-step $1.5 billion Transwestern pipeline acquisition Raised ETP annual distribution 10% and ETE annual distribution 25% Exceeded 2007 financial guidance
Slide 7: Natural Gas Basins
Natural Gas Basins Natural Gas Basins
Slide 8: Natural Gas Basins & Markets
Natural Gas Basins & Markets
Slide 9: Natural Gas Basins & Markets
West Coast Market Growing Phoenix Market East Coast Market San Juan Basin Anadarko Basin West Texas & NM Basin FW Basin East Texas Basin Bossier Trend Texas Gulf Coast Bossier to Katy Katy / HSC LNG Waha to Carthage Piceance Basin Uinta Basin Woodford Basins Fayetteville Natural Gas Basins & Markets
Slide 10: Regulatory Overview
Regulatory Overview Jerry Langdon Chief Administrative & Compliance Officer
Slide 11: FERC and CFTC Actions
FERC and CFTC Actions Actions are different FERC allegations: Relate to 9 allegations relating to monthly prices during 2003- 2005 Claim ETP "should have" obtained higher prices for physical gas sales despite record high prices at the time FERC calculates these higher "implied prices" by reference t
Slide 12: ETP Position
ETP Position ETP's transactions were lawful and had legitimate business purpose Profitable - both on physical sales and financial transactions Economically rational Reflected real-world supply and demand conditions FERC ignores fundamentals of supply and demand Natural gas markets were in hurricane-
Slide 13: Financial Overview
Financial Overview Brian Jennings Chief Financial Officer
Slide 14: ETP/ETE Corporate Structure
ETP/ETE Corporate Structure Market Value Equity (1) $7.6 billion Enterprise Value (2) $9.2 billion Market Value Equity (1) $6.9 billion Enterprise Value (2) $10.4 billion Public Unitholders Energy Transfer Equity, L.P. Energy Transfer Partners, L.P. Interstate Pipeline Intrastate Pipeline Propane Pu
Slide 15: 2007 Financial Outlook Update
2007 Financial Outlook Update Updated Market Guidance: $1.0 billion EBITDA (1) (up from $980 million) $1.0 billion growth capital expenditures (down from $1.2 billion/timing of Transwestern expenditures) $100 million maintenance capital expenditures (up from $90 million) See supplemental disclosure
Slide 16: 2008-2009 Financial Outlook
2008-2009 Financial Outlook Includes in F2007 partial-year contribution of Transwestern Includes pro-rata portion of MEP investment
Slide 17: Investments Drive EBITDA Growth
Investments Drive EBITDA Growth Transwestern 42" Cleyburn to Carthage Godley Expansion SE Bossier Paris Loop Phoenix Expansion Mid-Continent Expansion Uinta/Piceance Basin 2007 2007 2007 - 2008 2008 2008 2008 2008 2008 2008 2009 2009 2009 2009 2009 2009 2009 2009 2009
Slide 18: ETP/ETE Debt Maturity Schedule
ETP/ETE Debt Maturity Schedule ETP/ETE Debt Maturity Schedule
Slide 19: ETP Credit Facility
ETP Credit Facility 80.0 bps ^BB+/Ba1/BB+ 60.0 bps BBB-Baa3/BBB- 45.0 bps BBB/Baa2/BBB Fully - Drawn Libor Pricing: 12.5 bps ^BB+/Ba1/BB+ 11.0 bps BBB-/Baa3/BBB- 9.0 bps BBB/Baa2/BBB Commitment Fee: 1-Year Term-Out: Yes (unlimited) Extension Options: $1.0 Billion Accordion: July 2012 Maturity: 5-Yea
Slide 20: Distribution Growth
Distribution Growth Distribution Growth Distribution for period ending, paid following quarter. 25% CAGR 10% CAGR
Slide 21: Change in Year-End Reporting
Change in Year-End Reporting Change in Year-End Reporting
Slide 22: Heritage Propane
Heritage Propane
Slide 23: Heritage Propane
Heritage Propane Two-pronged growth strategy: Acquisitions - niche markets Organic - customer and volume adds Enhance profitability: Volume growth Margin expansion
Slide 24: Heritage Propane
Heritage Propane Heritage Propane
Slide 25: Heritage Propane
Heritage Propane Heritage Propane Heritage Propane
Slide 26: Energy Transfer Company
Energy Transfer Company Mackie McCrea President
Slide 27: ETC - Today
ETC - Today Over 14,000 miles of natural gas gathering and transportation pipelines located in Louisiana, Texas, New Mexico, Colorado and Utah 400 miles of intrastate pipeline under construction 15 natural gas processing plants and 20 natural gas treating facilities located in Louisiana, Texas, Colo
Slide 28: Energy Transfer Texas Pipelines
Energy Transfer Texas Pipelines Energy Transfer Texas Pipelines
Slide 29: Natural Gas Basins & Markets
West Coast Market Growing Phoenix Market East Coast Market San Juan Basin Anadarko Basin West Texas & NM Basin FW Basin East Texas Basin Bossier Trend Texas Gulf Coast Bossier to Katy Katy / HSC LNG Waha to Carthage Piceance Basin Uinta Basin Woodford Basins Fayetteville Natural Gas Basins & Markets
Slide 30: 2007 Accomplishments
2007 Accomplishments 42" Cleburne to Carthage completed April 2007 Flowing 1.5 Bcf/day (1.75 Bcf/day by 4th quarter) Added over 200,000 hp of compression Added over 700,000 Mcf/day of processing capacity 130,000 Mcf/day cryo capacity at Godley Added over 225,000 Mcf/day of treating capacity
Slide 31: Cleburne to Carthage 42" Pipeline
Cleburne to Carthage 42" Pipeline 265 Miles April 2007 in service 1.75 - 1.85 Bcf/d max capacity 42" Cleburne to Carthage
Slide 32: Texas Compressor Assets
Texas Compressor Assets Texas Compressor Assets
Slide 33: Texas Processing Assets
Texas Processing Assets Texas Processing Assets
Slide 34: 2008 Project Outlook
2008 Project Outlook 42" Southeast Bossier 36" Paris Loop Godley Processing Carthage Loop and Katy Expansion 36" Maypearl to Malone, 36" Cleburne to Tolar, 24" Old Ocean Loop Robertson County treating
Slide 35: 42" Southeast Bossier
42" Southeast Bossier SE Bossier 42" Pipeline/ 24" pipeline 165 Miles Expected completion 3Q F2008 ..9 Bcf/d initial capacity 1.3 Bcf/d capacity 1Q F2009 Interconnects to HPL
Slide 36: 36" Paris Loop
36" Paris Loop Paris Loop 36" Pipeline 145 Miles Expected completion date 3Q F2008 ..35 Bcf/d initial capacity ..9 Bcf/d capacity 3Q F2009 MEP Startup
Slide 37: Godley Plant
Godley Plant Godley Processing Plant 230,000 Mcf/day in-service 170,000 Mcf/day added 1Q F2008 200,000 Mcf/day added 4Q F2008
Slide 38: Carthage Loop and the Katy Expansion
Carthage Loop and the Katy Expansion Carthage Loop: 32 miles of 42" 500 MMcf/d of additional capacity Katy Expansion: 56 miles of 36" 400 MMcf/d of additional capacity
Slide 39: Additional Projects
Additional Projects 36" Maypearl to Malone 25 miles of 36" pipe Outlet for additional 600 MMCf/d from the Ft. Worth Basin 10,000 hp of compression 36" Cleburne to Tolar 20 miles of 36" pipe Connects additional production and pipeline facilities 24" Old Ocean Loop to ETC Katy 24 miles of 20" and 24"
Slide 40: Piceance-Uinta Basin Expansion
Piceance-Uinta Basin Expansion Production Basin - 2.2 Bcf/day Canyon Corridor - 1.1 Bcf/day Well permits last 12 months Basin - 3,974 Canyon Corridor - 1,906 Potential basin reserves - 45.4 Tcf (1) (1) 12/31/04 Potential Gas Committee Report Piceance-Uinta Basin.
Slide 41: Canyon Gas Resources
Canyon Gas Resources Only significant third-party gathering system in Piceance Basin 1,800+ miles of 2"-16" pipe 300 MMcf/d capacity w/ added compression and processing 6 processing plants for NGL extraction and treating 90 MMcf/d capacity 2 NGL injection points on Enterprise Mid-Continent Pipeline
Slide 42: Mid-Continent Express Pipeline
Mid-Continent Express Pipeline Chesapeake is the "Foundation Shipper" with 500,000 Mcf/day Total commitments of approximately 1 Bcf/day Receipt point access to Barnett Shale and Bossier Sand in Texas, the Fayetteville Shale in Arkansas, the Woodford/Caney Shale in Oklahoma Access to numerous downstr
Slide 43: Mid-Continent Express
Mid- Continent Express Mid-Continent Express Pipeline 50/50 JV with Kinder Morgan 500 Miles 1.4 Bcf/d initial capacity $1.3 billion initial investment Expected in service 3Q F2009
Slide 44: Transwestern Pipeline
Transwestern Pipeline Jim Holotik President
Slide 45: Natural Gas Basins & Markets
West Coast Market Growing Phoenix Market East Coast Market San Juan Basin Anadarko Basin West Texas & NM Basin FW Basin East Texas Basin Bossier Trend Texas Gulf Coast Bossier to Katy Katy / HSC LNG Waha to Carthage Piceance Basin Uinta Basin Woodford Basins Fayetteville Natural Gas Basins & Markets
Slide 46: Transwestern Overview
Transwestern Overview September 2006 Filed Rate Case September 29, 2006 Phoenix certificate filed with FERC West flows: 61% load factor 2006 200 MM/d unsubscribed September 2007 Rate case settled. New case not required until October 1, 2011 Phoenix final Environmental Impact Statement received FERC
Slide 47: Transwestern - System Capabilities
Transwestern - System Capabilities Transwestern - System Capabilities Mainline West 1,210 MM/d Bi-directional 725 MM/d East, 750 MM/d West San Juan Lateral Ignacio to Blanco 476 MM/d Blanco to Thoreau 1,235 MM/d East Laterals (Bi-directional) West Texas 585 MM/d North, 550 MM/d South Panhandle 273 M
Slide 48: Transwestern - Phoenix Expansion
Transwestern - Phoenix Expansion San Juan Lateral Phoenix Lateral San Juan Looping: 36" Pipeline 26 Miles Initial Capacity 375 MM/day Expected completion 3Q F2008 Phoenix Lateral: 36" & 42" Pipeline 260 Miles Initial Capacity 500 MM/day Expected completion 1Q F2009
Slide 49: Transwestern - San Juan Expansion
Transwestern - San Juan Expansion Transwestern - San Juan Expansion Transwestern - San Juan Expansion Additional 375 MM/day of supply capacity, increases to 475 MM/day with MAOP upgrade In-service as early as 3Q F2008
Slide 50: Transwestern - Phoenix Lateral
Transwestern - Phoenix Lateral Transwestern - Phoenix Lateral Construction expected to begin in January 2008 Phased In-Service Dates. Anticipate being in-service to APS Red Hawk by 1Q F2009, complete in-service by 2Q F2009
Slide 51: Transwestern - Other Expansions
Transwestern - Other Expansions Transwestern - Other Expansions 1. Phoenix compression expansion - 250 MM/d (2011) 2. ML West expansion, Phoenix/Nevada - 500 MM/d (2011) 3. Panhandle & West TX expansion - 100 MM/d (2008) 4. Ignacio to Blanco expansion - 200 MM/d (2011)
Slide 52: Rockies Production Forecast
Rockies Production Forecast 2006 Rocky Mountain Production Constrained by Take-Away Capacity REX Take-Away Capacity of 1.8 Bcf/d (1) Based on PIRA's Gas Forecast
Slide 53: Natural Gas Basins & Markets
West Coast Market Growing Phoenix Market East Coast Market San Juan Basin Anadarko Basin West Texas & NM Basin FW Basin East Texas Basin Bossier Trend Texas Gulf Coast Bossier to Katy Katy / HSC LNG Waha to Carthage Piceance Basin Uinta Basin Woodford Basins Fayetteville Natural Gas Basins & Markets
Slide 54: Supplemental Information
Supplemental Information
Slide 55: 2008 Quarterly Outlook
2008 Quarterly Outlook 2008 Quarterly Outlook
Slide 56: EBITDA Reconciliation
EBITDA Reconciliation EBITDA Reconciliation
Slide 57: EBITDA Reconciliation
EBITDA Reconciliation The partnership has disclosed in this press release EBITDA, as adjusted, which is a non-GAAP financial measure. Management believes EBITDA, as adjusted, provides useful information to investors as a measure of comparison with peer companies, including companies that may have di
Slide 58: EBITDA Reconciliation
EBITDA Reconciliation EBITDA, as adjusted, is used by management to determine our operating performance and, along with other data, as internal measures for setting annual operating budgets, assessing financial performance of our numerous business locations, as a measure for evaluating targeted busi