Energy Transfer LP · NYSE:ET
Energy Transfer LP — Investor Presentation (May 2021)
30 slides from Energy Transfer LP's investor presentation, May 20, 2021
Slide 1: Investor Presentation
Moving America’s Energy Since 1996 Investor Presentation May 2021
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 May 2021. At the meetings, members of management may make statements about future events, outlook and expectations related
Slide 3: What’s New
What’s New Best-in-class assets and extensive footprint positions the partnership for long-term success Operational Q1 2021 Financials Strategic Successfully loaded first three VLECs at Repaid ~$3.7B in debt with cash flow from Invested significant time and capital into Nederland in January, M
Slide 4: Energy Transfer – A Truly Unique Franchise
Energy Transfer – A Truly Unique Franchise Marcus Hook Terminal Nederland Terminal Asset Overview Natural Gas Marcus Hook Terminal Natural Gas Liquids (NGLs) Eagle Point Terminal Nederland Terminal Houston Terminal Crude Refined Products Midland Terminal Storage Houston Terminal Fractionator Cushing
Slide 5: Path Toward Free Cash Flow
Path Toward Free Cash Flow Diversified business model comprised of five core segments; no segment contributes more than 30 Business percent of adjusted EBITDA¹ Diversity Unrivaled geographic diversity with assets in all major producing basins in the U.S. Strong Continue to leverage expansive f
Slide 6: 2021 Adjusted EBITDA Outlook
2021 Adjusted EBITDA Outlook 2021E Adjusted EBITDA ~$12.9-$13.3 billion Guidance is for existing Energy Transfer business, excluding any contribution from Enable transaction Revised 2021E Adjusted EBITDA Outlook 2020 to 2021E Adjusted EBITDA Drivers 2021E Adjusted EBITDA Breakout + NGL export activi
Slide 7: Earnings Supported by Predominantly Fee-Based Contracts
Earnings Supported by Predominantly Fee-Based Contracts 2020 Full-Year Adjusted EBITDA by Segment Segment Contract Structure Strength Fees from dedicated More than 9,500 miles acreage, take-or-pay and connecting Permian, Bakken SUN, USAC Crude Oil throughput-based and Midcon Basins to U.S. & Other t
Slide 8: Disciplined Investments with Higher Returns Focus
Disciplined Investments with Higher Returns Focus 2021E Growth Capital: ~$1.6 billion % of 2021E1 • Mariner East system (ME2, ME2X) NGL & Refined Products • Nederland LPG facilities ~45% • Multiple projects < $50mm • Gathering and processing and compression projects primarily in West Texas and the M
Slide 9: Results Benefitting from Investments in High-Quality Growth Projects
Results Benefitting from Investments in High-Quality Growth Projects Major growth projects added since 2017 2017 Bakken Pipeline System* Organic Growth Capital3 Adjusted EBITDA4 Trans Pecos/Comanche Trail Pipeline* Permian Express 3* Panther Plant 2017 2021E Arrowhead Plant $5.5B $12.9-13.3B 2018 Ro
Slide 10: Alternative Energy Group Focused on Reducing Environmental Footprint Throughout Operations
Alternative Energy Group Focused on Reducing Environmental Footprint Throughout Operations Dual Drive Compressors - Established in 2012 Patented technology that allows for switching between electric motors and natural gas engines to drive compressors, and offers the industry a more efficient compr
Slide 11: Corporate Responsibility
Corporate Responsibility Program Highlights Program Accomplishments • Committed to pursuing a zero incident culture • Safety Incident Rate (TRIR) improved 34% from 2018 to 2020 – below industry average • Real-time tracking of EHS incidents focused on leading indicators • GPA Midstream Chairman’s Awa
Slide 12: Crude Oil Segment – Bakken Pipeline System
Crude Oil Segment – Bakken Pipeline System Not Shown: There are 7 Other Pipelines that Cross Lake Oahe in Near Proximity DAPLpipelinefacts.com Bakken Pipeline System1 • 1,915 mile system connecting Bakken production to ET’s Nederland terminal on the Gulf Coast • Current system capacity is 570,000 ba
Slide 13: Crude Oil Segment – Rockies/Cushing to Nederland Pipeline
Crude Oil Segment – Rockies/Cushing to Nederland Pipeline From DJ Basin Rockies/Cushing to Nederland Pipeline ET Cushing Terminal ET and Centurion Pipeline L.P. will offer joint tariff crude oil service from ET’s terminals in Platteville, CO and Cushing, OK to ET’s Nederland terminal Cushing Pro
Slide 14: NGL & Refined Products Segment – A Leading Northeast NGL Franchise
NGL & Refined Products Segment – A Leading Northeast NGL Franchise Comprehensive Marcellus/Utica Shale solution reaching local, regional and international markets Marcus Hook Terminal Mariner East Pipeline System • ~800 acre site: inbound and outbound pipeline, along with truck, rail and marine capa
Slide 15: NGL & Refined Products Segment – Pennsylvania Access
NGL & Refined Products Segment – Pennsylvania Access As Mariner East adds refined products to its slate of liquids transportation services, tremendous synergies can be realized with ET’s existing refined products pipelines and terminals PA Access Overview Converting a portion of 8-inch ME1 NGL pip
Slide 16: NGL & Refined Products Segment – Ethane Export Project
NGL & Refined Products Segment – Ethane Export Project Loaded the Seri Everest with more than 911,000 barrels of ethane in January 2021, the largest single shipment of ethane to date Ethane Export Pipeline and Terminal Facilities Orbit Pipeline JV Orbit Joint Venture with Satellite Petrochemical U
Slide 17: NGL & Refined Products Segment – Nederland LPG/Natural Gasoline Expansions
NGL & Refined Products Segment – Nederland LPG/Natural Gasoline Expansions Legacy Mariner South System Nederland Natural Gasoline Expansions Completed in 2015, the legacy Mariner South system integrated ET’s Mont Loaded first barge with natural gasoline in July 2019 Belvieu assets with its Neder
Slide 18: NGL & Refined Products Segment – Pipeline and Fractionation Expansion
NGL & Refined Products Segment – Pipeline and Fractionation Expansion Lone Star Express Expansion Mont Belvieu Fractionation Expansions • 24-inch, 352-mile expansion • Total of 7 fractionators at Mont Belvieu • Added 400,000 bbls/d of NGL pipeline capacity from Lone Star’s pipeline • 150,000 bbls/d
Slide 19: Growing Unique Export Capabilities
Growing Unique Export Capabilities Houston Terminal • 330 acres on Houston Ship Channel • 18.2 million barrels of crude and heated product storage • 5 ship docks, 7 barge docks • Rail and truck loading and unloading • Connectivity to Gulf Coast refining complex • Pipeline connectivity to all major b
Slide 20: ET & ENBL Complementary Assets
ET & ENBL Complementary Assets Natural NGLs Crude Gas Oil Gather ~ 13 million Transport ~23.0 million Capable of exporting Fractionate ~835 Transport ~3.8 mmbtu/d of gas & mmbtu/d of natural gas ~900 thousand bbls/d of thousand bbls/d of million bbls/d of 611,000 bbls/d of NGLs via inter & intrastat
Slide 21: Complementary Asset Base Drives Value Across Footprint
Complementary Asset Base Drives Value Across Footprint Creates Contiguous Asset Footprint Integration Opportunities Mid-Continent Exposure to significant demand pull gas infrastructure in the Mid-Con ENBL’s substantial gathering and processing footprint in the Mid-Con Basin complements ET’s down
Slide 22: Appendix
ENERGY TRANSFER
Slide 23: Crude Oil Segment
Crude Oil Segment Crude Oil Pipelines ET Crude Assets¹ ~10,850 miles of crude oil trunk and gathering lines located in the Southwest and Midwest United States Interests in ET crude oil pipeline systems • Bakken Pipeline (36.4%) • Bayou Bridge Pipeline (60%) • White Cliffs (51%) • Permian Express
Slide 24: NGL & Refined Products Segment
NGL & Refined Products Segment NGL Storage NGL Pipeline Transportation Fractionation Total NGL storage ~67 million barrels ~4,800 miles of NGL Pipelines throughout Texas, 7 Mont Belvieu fractionators (over 900 Mbpd) ~50 million barrels NGL storage at Mont Belvieu Midwest, and Northeast 40
Slide 25: Midstream Segment
Midstream Segment Midstream Asset Map Midstream Highlights Extensive Permian Basin Footprint: • Have nearly 3.7 million acres dedicated to ET processing plants in the Permian Basin with an average of 7+ years remaining on contracts • Permian Basin inlet volumes reached a monthly record in April 20
Slide 26: Interstate Pipeline Segment
Interstate Pipeline Segment Interstate Asset Map Interstate Highlights Our interstate pipelines provide: Stability • Approximately 95 percent of revenue is derived from fixed reservation fees Rover Diversity • Access to multiple shale plays, storage facilities and Trunkline markets Transwestern
Slide 27: Intrastate Pipeline Segment
Intrastate Pipeline Segment Intrastate Asset Map Intrastate Highlights Well-positioned to capture additional revenues from anticipated changes in natural gas supply and demand in the next five years Red Bluff Express Pipeline connects the Orla Plant, as well as 3rd party plants, to the Waha Oasi
Slide 28: Non-GAAP Reconciliations
Non-GAAP Reconciliations
Slide 29: Non-GAAP Reconciliation
Non-GAAP Reconciliation Energy Transfer LP Reconciliation of Non-GAAP Measures * 2018 (a) 2019 2020 2021 Full Year Full Year Q1 Q2 Q3 Q4 Full Year Q1 Net income $ 3,420 $ 4,825 $ (964) $ 672 $ (401) $ 833 $ 140 $ 3,641 Interest expense, net 2,055 2,331 602 579 569 577 2,327 589 Impairment losses 431
Slide 30: Non-GAAP Reconciliation Notes
Non-GAAP Reconciliation Notes * (a) The closing of the ETO Merger in October 2018 impacted the Partnership’s calculation of Distributable Cash Flow attributable to partners, as well as the number of ET Common Units outstanding and the amount of distributions to be paid to partners. In order to provi