Energy Transfer Lp · NYSE:ET
Energy Transfer Lp — Investor Presentation (March 2022)
33 slides from Energy Transfer Lp's investor presentation, March 2022
Slide 1: Investor Presentation March 2022
Investor Presentation March 2022
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 February and March 2022. At the meetings, members of management may make statements about future events, outlook and expec
Slide 3: What’s New
What’s New Operational Financials Strategic Construction of the final phase of the Mariner Adjusted EBITDA Closed Enable Midstream acquisition on East Pipeline is complete, and commissioning is December 2, 2021 FY’21: $13.0B – up 24% from FY’20 in progress Distributable Cash Flow (DCF) $
Slide 4: Energy Transfer – A Truly Unique Franchise
Energy Transfer – A Truly Unique Franchise Marcus Hook Terminal Nederland Terminal Asset Overview Natural Gas Storage Natural Gas Liquids (NGLs) Fractionator Crude Terminals Refined Products Processing Houston Terminal Treating Major Terminals Marcus Hook Terminal Nederland Terminal Houston Terminal
Slide 5: De-Risking ET
De-Risking ET Levered Balance Significant debt reduction Sheet Reduced long-term debt by $6.3B in 2021 Delivering growth projects Project Execution Construction of final phase of Mariner East pipeline complete, Risk commissioning in progress Bakken optimization now in-service Complex Compa
Slide 6: 2022 Outlook Supported by Strong Core Business
2022 Outlook Supported by Strong Core Business ET 2022E Adjusted EBITDA $11.8 - $12.2 billion 2021 to 2022 Adjusted EBITDA Drivers 2022E Adjusted EBITDA Breakout + Enable Acquisition Commodity + NGL pipeline and export activities Spread¹ 7.5-10% 0-2.5% + NGL / gas prices - Lower asset optimization -
Slide 7: Earnings Supported by Predominantly Fee-Based Contracts
Earnings Supported by Predominantly Fee-Based Contracts 2021 Full-Year Adjusted EBITDA by Segment¹ 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, SUN, USAC & tr
Slide 8: Focused on Increased Returns and Shorter Cash Cycle
Focused on Increased Returns and Shorter Cash Cycle 2022E Growth Capital: $1.6 billion to $1.9 billion1 % of 2022E1 • Grey Wolf high-recovery cryogenic processing plant • Efficiency improvements and modernization/emissions reductions projects Midstream • Permian Bridge Pipeline project ~35% • Growth
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 Legacy ET Organic Growth ET Adjusted EBITDA4 • Bakken Pipeline System* • Permian Express 3* Capital3 2017 • Trans Pecos/Comanche • Panther Plant Trail Pipelines* • Arrowhead Plant 2017 2022E $
Slide 10: Alternative Energy Group – Leveraging asset base and expertise
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 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 • Established an Alternative E
Slide 12: Significant Management Ownership – Continued Buying in 2021
Significant Management Ownership – Continued Buying in 2021 In 2021, Energy Transfer insiders and independent board members purchased ~19.8 million units, totaling ~$154 million 2021 Insider Purchases Insider Ownership vs Peers Ownership Breakout 14% Executive Chairman: ~19.1mm units; ~$148mm 12% In
Slide 13: Interstate Segment – Gulf Run Pipeline Project
Interstate Segment – Gulf Run Pipeline Project Provides An Efficient Gulf Coast Connection Gulf Run Pipeline Project Overview 135-mile, 42” interstate pipeline with an expected capacity of 1.65 Bcf/d Backed by a 20-year commitment for 1.1 Bcf/d with cornerstone shipper Golden Pass LNG (Qatar Pet
Slide 14: Crude Oil Segment – Bakken Pipeline System
Crude Oil Segment – Bakken Pipeline System DAPLpipelinefacts.com Bakken Pipeline System1 • 1,915-mile system connecting Bakken production to ET’s Nederland terminal on the Gulf Coast • Expect additional capacity to service commitments received through open seasons to be in-service late in the third
Slide 15: Crude Oil Segment – Cushing South Pipeline
Crude Oil Segment – Cushing South Pipeline From DJ Basin Cushing South Pipeline ET Cushing Terminal ET and Centurion Pipeline L.P. offers joint tariff crude oil service from ET’s terminal in Cushing, OK to ET’s Nederland Cushing terminal Provides ability to move Powder River and DJ Basin barrels
Slide 16: NGL & Refined Products Segment – A World Leader in NGL Exports
NGL & Refined Products Segment - A World Leader in NGL Exports In total, ET’s market share of worldwide NGL exports has doubled over the last 24 months to nearly 20% ET NGL Exports Nederland Terminal 800 700 600 Thousand barrels per day 500 400 300 200 100 0 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q
Slide 17: NGL & Refined Products Segment – Leading Northeast NGL Franchise
NGL & Refined Products Segment – 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 capabi
Slide 18: 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 Converted a portion of 8-inch ME1 NGL pipe
Slide 19: NGL & Refined Products Segment – Ethane Export Project
NGL & Refined Products Segment – Ethane Export Project Ethane Export Pipeline and Terminal Facilities Orbit Pipeline JV Orbit Joint Venture with Satellite Petrochemical USA Corp includes a new ethane export terminal on the U.S. Gulf Coast to provide ethane to Satellite’s newly-constructed ethane c
Slide 20: 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 21: NGL & Refined Products Segment – Pipeline & Fractionation Expansion
NGL & Refined Products Segment – Pipeline & 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 • 150,000 bbls/d Frac VI wen
Slide 22: Growing Unique Export Capabilities
Growing Unique Export Capabilities Houston Terminal • 330 acres on Houston Ship Channel Total NGL export capacity is now over • 18.2 million barrels of crude and heated product 1.1 million barrels per day storage • ~500 thousand bbls/d of crude export capacity • 5 ship docks, 7 barge docks • Rail an
Slide 23: ET & ENBL Complementary Assets Wellhead to Water Service
ET & ENBL Complementary Assets Wellhead to Water Service Natural NGLs Crude Gas Oil Gather ~ 14.8 million Transport ~24.6 million Capable of exporting ~1.1 Fractionate ~895 Transport ~3.8 mmbtu/d of gas & mmbtu/d of natural gas million bbls/d of crude thousand bbls/d of million bbls/d of 705,000 bbl
Slide 24: 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 ET Management has a proven track record of successfully integrating acquisitions Knowledge of respective assets and businesses facilitates integrations of: Operat
Slide 25: Appendix
Appendix Gos ENERGY —. TRANSFER
Slide 26: Crude Oil Segment
Crude Oil Segment Crude Oil Pipelines ~11,300 miles of crude oil trunk and gathering lines 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 operates substantial interests in the following systems/entities: • Ba
Slide 27: NGL & Refined Products Segment
NGL & Refined Products Segment Fractionation 7 Mont Belvieu fractionators (over 900 Mbpd) 40 Mbpd King Ranch, 25 Mbpd Geismar 50 Mbpd Houston DeEthanizer and 30 to 50 Mbpd Marcus Hook C3+ Frac in service Q4 2017 150 Mbpd Frac VII placed in-service Q1 2020 NGL Storage Total NGL storage ~70
Slide 28: Midstream Segment
Midstream Segment Midstream Highlights Extensive Permian Basin Footprint: • Have ~3.7 million acres dedicated to ET processing plants in the Permian Basin with an average of 7+ years remaining on contracts PA • Midland Basin inlet volumes continue to be at or near record highs Grey Wolf Processi
Slide 29: Interstate Pipeline Segment
Interstate Pipeline Segment Interstate Highlights Our interstate pipelines provide: Stability • Approximately 95 percent of revenue is derived from fixed reservation fees Diversity • Access to multiple shale plays, storage facilities and Asset Overview markets Transwestern Panhandle Eastern Gr
Slide 30: Intrastate Pipeline Segment
Intrastate Pipeline Segment ~ 11,600 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 five years
Slide 31: Non-GAAP Reconciliations
Non-GAAP Reconciliations Gos ENERGY S. TRANSFER
Slide 32: Non-GAAP Reconciliation
Non-GAAP Reconciliation Reconciliation of Non-GAAP Measures * (a) 2018 2019 2020 2021 Full Year Full Year Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year Net income $ 3,420 $ 4,825 $ (964) $ 672 $ (401) $ 833 $ 140 $ 3,641 $ 908 $ 907 $ 1,231 $ 6,687 Interest expense, net 2,055 2,331 602 579 569 577 2,3
Slide 33: Non-GAAP Reconciliation
Non-GAAP Reconciliation (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 Energy Transfer Common Units outstanding and the amount of distributions to be paid to partners. In order to