Energy Transfer Lp · NYSE:ET
Energy Transfer Lp — Investor Presentation (April 2023)
32 slides from Energy Transfer Lp's investor presentation, April 2023
Slide 1: Investor Presentation April 2023
Investor Presentation April 2023
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 April 2023. At the meetings, members of management may make statements about future events, outlook and expectations relat
Slide 3: What's New?
What’s New? Operational Financials Strategic Achieved record NGL fractionation and Announced 2023 Guidance: Announced plans to acquire Lotus transportation volumes in 4Q’22 ‒ Expected Adj. EBITDA: $12.9 – $13.3B Midstream, which will enhance Energy Transfer’s crude pipeline footprint in the
Slide 4: Lotus Midstream
Lotus Midstream Opportunistic Addition to Permian Pipeline Network Overview Fully integrated crude pipeline and terminal system in the Permian Basin 3,000 miles of active gathering lines with direct connections to Energy Transfer’s network and major hubs including Cushing (new to ET), Midland, C
Slide 5: Efficiently Extending Midstream Scale and Connectivity
Efficiently Extending Midstream Scale and Connectivity Closed December 2021 Closed September 2022 Announced March 2023 Assets complimentary to ET’s Assets extended ET’s gas gathering Assets complimentary to ET’s crude interstate and intrastate pipeline and processing system in the oil pi
Slide 6: Energy Transfer – A Truly Unique, Coast-to-Coast Asset Base
Energy Transfer – A Truly Unique, Coast-to-Coast Asset Base Marcus Hook Terminal Mont Belvieu Nederland Terminal Compressor Station Asset Overview Natural Gas Storage Natural Gas Liquids (NGLs) Fractionator Crude Terminals Refined Products Processing Houston Terminal Treating Major Terminals Marcus
Slide 7: Fully Integrated Wellhead to Water Services
Fully Integrated Wellhead to Water Services Gather ~19.4 million Mmbtu/d of gas and 813,000 Bbls/d of NGLs produced Transport ~30.1 million Mmbtu/d of natural gas via inter and intrastate pipelines Fractionate ~960 thousand Bbls/d of NGLs Transport ~4.3 million Bbls/d of crude oil Capable of exporti
Slide 8: Industry Leading Performance
Industry Leading Performance FY 2022 Price and Total Return vs. Peers¹ 60.0% 56% 48% 49% 50.0% 44% 45% 44% 41% 40.0% 35% 36% 33% 32% 29% 30.0% 26% 26% 23% 21% 21% 21% 21% 19% 18% 17% 20.0% 14% 15% 11% 12% 10% 8% 7% 10.0% 0% 0.0% ‐10.0% ‐9% ‐20.0% ‐14% ET LNG CQP TRGP PAA WMB PAGP WES KMI MPLX DTM OK
Slide 9: 2022 Outlook Supported by Strong Core Business
2022 Outlook Supported by Strong Core Business ET 2023E Adjusted EBITDA $12.9 - $13.3 billion 2022 to 2023 Adjusted EBITDA Drivers 2023E Adjusted EBITDA Breakout + Volume growth on existing assets Commodity + NGL pipeline, frac and export activities 7.5-10% Spread1 0-2.5% - Lower commodity prices -
Slide 10: Diverse Earnings Supported by Predominantly Fee-Based Contracts
Diverse Earnings Supported by Predominantly Fee-Based Contracts FY 2022 Adjusted EBITDA by Segment Segment Contract Structure Strength Fees from dedicated Significant connectivity to acreage, take-or-pay and Permian, Bakken and Midcon Crude Oil throughput-based Basins to U.S. markets, transportation
Slide 11: Increasing Investment Returns With Shorter Cash Cycle
Increasing Investment Returns With Shorter Cash Cycle 2023E Growth Capital: ~$1.6 billion to $1.8 billion % of 2023E • Bear high-recovery cryogenic processing plant • New treating capacity in the Haynesville Midstream • Efficiency improvements and emissions reductions projects ~50% • Multiple gather
Slide 12: Growing With Increased Financial Discipline – 2023 A Key Transition Year
Growing With Increased Financial Discipline – 2023 A Key Transition Year Legacy ET Organic Growth ET Adjusted EBITDA2 Major growth projects added since 2017 Capital1 • Bakken Pipeline System* • Permian Express 3* 2018 2023E 2017 • Trans Pecos/Comanche Trail • Panther Plant $4.9B $12.9-$13.3B Pipelin
Slide 13: Significant Management Ownership – Continued Buying
Significant Management Ownership – Continued Buying Since January 2021, Energy Transfer insiders and independent board members purchased ~32.5 million units, totaling ~$305 million; including purchases totaling ~$39mm by its Executive Chairman in February 2023 Insider Purchases since Insider Ownersh
Slide 14: Permian Basin Processing Expansion
Permian Basin Processing Expansion Permian Basin plant inlet volumes remain at or near record highs Permian Basin Footprint Extensive Permian Basin Footprint: • Have significant acreage dedications to ET processing plants in the Permian Basin Permian Bridge Pipeline • Converted ~55 miles of exis
Slide 15: Comprehensive Permian Gas Takeaway Solutions
Comprehensive Permian Gas Takeaway Solutions Flexibility to provide natural gas delivery to most market hubs Waha Header Permian Natural Gas Takeaway Project Chicago • Energy Transfer’s Waha header connects to more than 10 different natural gas pipelines, as well as to the TPP header¹, which contain
Slide 16: Gulf Run Pipeline
Gulf Run Pipeline Provides An Efficient Gulf Coast Connection Gulf Run Pipeline Zone 1 (Formerly Line CP): ~200-mile, interstate pipeline with a Perryville capacity of ~1.4 Bcf/d¹ Zone 2 (New Build): 135-mile, 42” interstate pipeline with a Zone 1 capacity of 1.65 Bcf/d Carthage Backed by a 20
Slide 17: NGL & Refined Products Segment - A World Leader in NGL Exports
NGL & Refined Products Segment - A World Leader in NGL Exports ET’s market share of worldwide NGL exports remains at ~20% ET NGL Exports Nederland Terminal 900 800 700 Thousand barrels per day 600 500 400 300 200 100 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 Expanding industry leading business
Slide 18: NGL & Refined Products Segment – Growing Ethane Export Assets
NGL & Refined Products Segment – Growing Ethane Export Assets Ethane Export Pipeline and Terminal Facilities Orbit JV Orbit Joint Venture with Satellite Petrochemical USA Corp includes an ethane export terminal on the U.S. Gulf Coast which provides ethane to Satellite’s newly-constructed ethane cr
Slide 19: NGL & Refined Products Segment – Pipeline & Fractionation
NGL & Refined Products Segment – Pipeline & Fractionation – Continuing to Expand Leading Asset Base Lone Star Express Expansion Mont Belvieu Fractionation Expansions • 24-inch, 352-mile expansion • Total of 7 fractionators at Mont Belvieu; current capacity over 900,000 bbls/d • Added incremental NGL
Slide 20: World-Class Export Capabilities
World-Class Export Capabilities – Uniquely Positioned to Serve Global Demand Total NGL export capacity is over Houston Terminal Marcus Hook Terminal 1.1 million barrels per day • 330 acres on Houston Ship Channel • 18.2 million barrels of crude and heated product storage • ~500,000 bbls/d of crude e
Slide 21: 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 2021 2022 ET Management has a proven track record of successfully integrating acquisitions Completed 10 Deals Knowledge of respective assets and businesses facilitates i
Slide 22: Alternative Energy Group
Alternative Energy Group – Leveraging asset base and expertise to develop projects to reduce environmental footprint 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 indus
Slide 23: Corporate Responsibility
Corporate Responsibility Program Highlights Program Accomplishments • Culture of “safety first, safety always” and a commitment to zero-incidents • Established an Alternative Energy Group to explore renewable energy projects • Real-time tracking of EHS incidents focused on leading indicators • ~20%
Slide 24: Appendix
Appendix Gor ENERGY TRANSFER
Slide 25: Crude Oil Segment
Crude Oil Segment ~11,300 miles of crude oil trunk and gathering lines Crude Oil Pipelines ~ 1 million barrels per day of Permian Crude Oil takeaway capacity Directly connected to 6.8 MMbbls/d (~37%) of domestic refining capacity 1.1 MMbbls/d of ET-owned export capacity on USGC ET owns and ope
Slide 26: NGL & Refined Products Segment
NGL & Refined Products Segment Fractionation 7 Mont Belvieu fractionators (over 900 Mbpd) Frac 8 - 150,000 bbls/d and is expected in service in Q3 2023 35 Mbpd Geismar Frac; 30 to 50 Mbpd Marcus Hook C3+ Frac NGL Storage Total NGL storage ~83 million barrels ~58 million barrels of NGL stor
Slide 27: Midstream Segment
Midstream Segment Midstream Highlights Extensive Gathering and Processing Footprint • Assets in most of the major U.S. producing basins PA Continued Volume Growth • Q4 2022 volumes reached a record 19.4 million MMbtu/d primarily due to increased throughput in all of our operating regions, as wel
Slide 28: Interstate Natural Gas Pipeline Segment
Interstate Natural Gas Pipeline Segment Interstate Highlights ET’s interstate pipelines provide: Stability • Approximately 95% of revenue derived from fixed reservation fees Diversity • Access to multiple shale plays, storage facilities and markets Asset Overview Growth Opportunities Transwest
Slide 29: Intrastate Natural Gas Pipeline Segment
Intrastate Natural Gas Pipeline Segment ~ 11,385 miles of intrastate pipelines with ~24 Bcf/d of throughput capacity, Intrastate Highlights and ~88 Bcf/d of working storage capacity Well-positioned to capture additional revenues from anticipated changes in natural gas supply and demand in the next
Slide 30: Non-GAAP Reconciliations
Non-GAAP Reconciliations 30
Slide 31: Non-GAAP Reconciliation
Non-GAAP Reconciliation Energy Transfer LP Reconciliation of Non-GAAP Measures * 2019 2020 2021 2022 Full Year Full Year Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year Net income $ 4,825 $ 140 $ 3,641 $ 908 $ 907 $ 1,231 $ 6,687 $ 1,487 $ 1,622 $ 1,322 $ 1,437 $ 5,868 Interest expense, net 2,331 2,327
Slide 32: Non-GAAP Reconciliation Definitions
Non-GAAP Reconciliation Definitions Adjusted EBITDA and Distributable Cash Flow are non-GAAP financial measures used by industry analysts, investors, lenders and rating agencies to assess the financial performance and the operating results of Energy Transfer's fundamental business activities and sho