Enterprise Products Partners L.p. · NYSE:EPD
Enterprise Products Partners L.p — Q2 2024 Earnings Presentation
21 slides from Enterprise Products Partners L.p's earnings presentation, Jul 30, 2024
Slide 1: Second Quarter 2024 Earnings Support Slides
Second Quarter 2024 Earnings Support Slides July 30, 2024 NYSE: EPD
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements based on the beliefs of the company, as well as assumptions made by, and information currently available to our management team (including information published by third parties). When used in this presentation, words s
Slide 3: Qualifying Statements
Qualifying Statements This supplemental package contains earnings support slides highlighting major variances for the quarter. This data should be read in conjunction with the information contained in the earnings release for the second quarter of 2024 and our SEC Form 10-Q (when filed), which provi
Slide 4: Enterprise Allocation of Capital
Enterprise Allocation of Capital “All of the Above” Approach Responsibly Returning Capital to Investors • $54.4 Billion (“B”) of capital returned to equity investors via LP distributions and common unit buybacks, since IPO • Distributions: increased to $0.525/unit for 2Q 2024, a 5% increase over 2Q
Slide 5: Returning Capital to Equity Investors
Returning Capital to Equity Investors TTM 2Q 2024 $4.6B Returned $4.2B to Equity Holders 55% $9.0 $8.4 ($4.1) Adjusted CFFO $8.0 Payout Ratio(1) $7.0 $6.0 $5.0 ($0.1) $ Billions ($4.4) $4.0 $3.0 $2.0 $1.7 ($0.7) $1.0 ($0.5) $0.3 $0.4 ($0.2) $0.0 Cash at 6/30/2023 Adjusted CFFO Cash Used in Cash Dist
Slide 6: Growth Capital Expenditures
Growth Capital Expenditures Major Capital Projects(1) Forecasted Annual Growth Capex Range(3) $6.7 billion in major capital projects under construction, supporting future cash flow growth & capital returns to unitholders $4.0 Highlighted Projects Forecasted In-service $Billions $3.75B $3.75B Leonida
Slide 7: Indicative Attribution of Segment GOM
Indicative Attribution of Segment GOM Select Businesses as of 1H 2024 Natural Gas Processing GOM $1,200 $0.60 $1,066 $1,000 $166 $0.50 $737 GOM in $Millions $800 $0.40 Price Spread $87 $600 $535 $0.30 $202 $470 $332 $102 $400 $0.20 $95 $110 $200 $122 $43 $448 $0.10 $365 $194 $258 $122 $0 $0.00 (1) (
Slide 8: Segment Gross Operating Margin Variance 2Q 2024 vs. 2Q 2023
Segment Gross Operating Margin Variance 2Q 2024 vs. 2Q 2023
Slide 9: Total GOM Bridge by Segment
Total GOM Bridge by Segment 2Q 2024 vs. 2Q 2023 $ in MMs GOM Bridge Details: • The following slides summarize the primary drivers for changes in gross operating margin for each segment between 2Q 2024 and 2Q 2023 • Total gross operating margin is a Non-GAAP measure; for a reconciliation of these amo
Slide 10: NGL Segment
NGL Segment 2Q 2024 vs. 2Q 2023 $ in MMs GOM Bridge ($37) Details: • Non-cash MTM activity resulted in an immaterial gain in 2Q 2024 compared to a loss of $5MM in 2Q 2023 • Permian Basin Processing Facilities (Delaware Basin and Midland Basin) GOM increased primarily due to higher average processing
Slide 11: Crude Oil Segment
Crude Oil Segment 2Q 2024 vs. 2Q 2023 $ in MMs GOM Bridge ($31) ($3) Details: • Non-cash MTM activity resulted in a gain of $8MM in 2Q 2024 compared to a loss of $7MM in 2Q 2023 • Texas in-basin crude oil pipelines, terminals and other marketing activities (excluding M2E, Seaway and MTM) GOM decreas
Slide 12: Natural Gas Segment
Natural Gas Segment 2Q 2024 vs. 2Q 2023 $ in MMs GOM Bridge ($11) ($1) Details: • Non-cash MTM activity resulted in a gain of $3MM in 2Q 2024 compared to a gain of $4MM in 2Q 2023 • Texas Intrastate System GOM increased primarily due to higher capacity reservation and transportation revenues, partia
Slide 13: Petrochemical & Refined Products Segment
Petrochemical & Refined Products Segment 2Q 2024 vs. 2Q 2023 $ in MMs GOM Bridge ($8) ($3) Details: • Non-cash MTM activity resulted in a gain of $1MM in both 2Q 2024 and 2Q 2023 • Octane enhancement and related facilities GOM increased primarily due to higher sales volumes and revenues • Propylene
Slide 14: Segment Gross Operating Margin Variance 2Q 2024 vs. 1Q 2024
Segment Gross Operating Margin Variance 2Q 2024 vs. 1Q 2024
Slide 15: Total GOM Bridge by Segment
Total GOM Bridge by Segment 2Q 2024 vs. 1Q 2024 $ in MMs GOM Bridge Details: • The following slides summarize the primary drivers for changes in gross operating margin for each segment between 2Q 2024 and 1Q 2024 • Total gross operating margin is a Non-GAAP measure. For a reconciliation of these amo
Slide 16: NGL Segment
NGL Segment 2Q 2024 vs. 1Q 2024 $ in MMs GOM Bridge Details: • Non-cash MTM activity resulted in an immaterial gain in 2Q 2024 compared to a loss of $7MM in 1Q 2024 • NGL marketing activities (excluding MTM) GOM decreased primarily due to lower average sales margins • Dixie Pipeline and related term
Slide 17: Crude Oil Segment
Crude Oil Segment 2Q 2024 vs. 1Q 2024 $ in MMs GOM Bridge Details: • Non-cash MTM activity resulted in a gain of $8MM in 2Q 2024 compared to a gain of $4MM in 1Q 2024 © All Rights Reserved. Enterprise Products Partners L.P. enterpriseproducts.com 17
Slide 18: Natural Gas Segment
Natural Gas Segment 2Q 2024 vs. 1Q 2024 $ in MMs GOM Bridge Details: • Non-cash MTM activity resulted in a gain of $3MM in 2Q 2024 compared to a loss of $2MM in 1Q 2024 • Natural gas marketing activities (excluding MTM) GOM decreased primarily due to lower average sales margins © All Rights Reserved
Slide 19: Petrochemical & Ref. Products Segment
Petrochemical & Ref. Products Segment 2Q 2024 vs. 1Q 2024 $ in MMs GOM Bridge ($39) ($15) ($15) Details: • Non-cash MTM activity resulted in a gain of $1MM in both 2Q 2024 and 1Q 2024 • Octane enhancement & related facilities GOM decreased primarily due to lower deficiency revenues and lower average
Slide 20: Indicative Attribution of GOM
Indicative Attribution of GOM • Slide 7 attributes gross operating margin (GOM) among various applicable business activities. Most activities fit easily into one category; however, the classification of certain activities involves an element of subjectivity. The classifications reflected on Slide 7
Slide 21: Definitions
Definitions Net Cash Flow Provided by Operating Activities (“CFFO”) represents the GAAP financial measure “Net cash flow provided by operating activities”. Adjusted CFFO is CFFO before the net effect of changes in operating accounts (working capital). Free Cash Flow (“FCF”) is CFFO less investing ac
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