Energy Transfer LP · NYSE:ET
Energy Transfer LP — Investor Presentation (October 2020)
24 slides from Energy Transfer LP's investor presentation, October 2020
Slide 1: Energy Transfer Investor Presentation October 2020
ENERGY TRANSFER Investor Presentation October 2020
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 October 2020. At the meetings, members of management may make statements about future events, outlook and expectations rel
Slide 3: A Truly Unique Franchise
A TRULY UNIQUE FRANCHISE Marcus Hook Distinguishing Characteristics Houston Terminal Leading midstream infrastructure franchise in the U.S. Unrivaled diversity of earnings/cash flows Nederland Terminal Completion of major capital projects in the near term significantly reduces capex spending Expect
Slide 4: Fully Integrated Franchise from Wellhead to Water
FULLY INTEGRATED FRANCHISE FROM WELLHEAD TO WATER Natural NGLs Crude Gas Oil Gather ~ 13 million Transport ~23.1 million Capable of exporting Fractionate ~836 Transport ~3.6 mmbtu/d of gas & mmbtu/d of natural gas ~900 thousand bbls/d of thousand bbls/d of million barrels crude 602,000 bbls/d of NGL
Slide 5: Supported by a Leading Pipeline Franchise
SUPPORTED BY A LEADING PIPELINE FRANCHISE Miles of Pipeline 100,000 ET has 90,000+ miles of pipeline with assets in every major U.S. supply basin linked to major demand markets 80,000 in the U.S., including exports 60,000 Miles 40,000 20,000 0 ET A B C D E F G Peer Group: DCP, ENB (excluding ENB uti
Slide 6: Earnings Supported by Predominantly Fee-Based Contracts
EARNINGS SUPPORTED BY PREDOMINANTLY FEE-BASED CONTRACTS Q2 2020 Adjusted EBITDA by Segment Segment Contract Structure Strength Fees from dedicated More than 9,500 miles acreage, take-or-pay connecting Permian, SUN, USAC and throughput-based Crude Oil Bakken and Midcon Basins & Other transportation,
Slide 7: 2020 Adjusted EBITDA Outlook
2020 ADJUSTED EBITDA OUTLOOK 2020E Adjusted EBITDA ~$10.2-$10.5 billion 2019 to 2020 Drivers 2020E Adjusted EBITDA Breakout + SEMG integration/synergies Commodity Spread1 2.5-5% - Legacy contracts/renewals 0-2.5% - Crude/gas spreads - Economic slow down/volumes +Organic Projects Fee2 +Mariner East s
Slide 8: Disciplined Investments with Higher Returns Focus
DISCIPLINED INVESTMENTS WITH HIGHER RETURNS FOCUS 2020E Growth Capital: ~$3.4 billion 15% reduction from original estimate1 % of 2020E2 • Lone Star Express Expansion • Mariner East system (ME2, ME2X) NGL & Refined • Nederland LPG facilities Products 70-75% • Fractionation plant VII (placed in servic
Slide 9: Investment in High-Quality Growth Projects
INVESTMENT IN HIGH-QUALITY GROWTH PROJECTS Major growth projects added since 2017 Organic Growth Capital2 Adjusted EBITDA3 2017 Bakken Pipeline System* Trans Pecos/Comanche Trail Pipeline* 2017 2020E Permian Express 3* $5.5B $10.2-10.5B Panther Plant Arrowhead Plant 2018 Rover Pipeline* Frac V Rebel
Slide 10: Significant Management Ownership
SIGNIFICANT MANAGEMENT OWNERSHIP In 2020, Energy Transfer insiders and independent board members have purchased ~10.6 million units, totaling ~$110 million 2020 Insider Purchases Insider Ownership vs Peers 16% 14.5% CEO: ~7.9mm units; ~$91mm 14% 12% Board of Directors: ~2.5mm units; ~$18mm Insider O
Slide 11: Corporate Responsibility: Environmental, Social & Governance (ESG)
CORPORATE RESPONSIBILITY ENVIRONMENTAL, SOCIAL & GOVERNANCE (ESG) Energy Transfer is dedicated to responsibly and safely delivering America’s energy Program Highlights Program Accomplishments • 2018 EHSQ Alliance Award for Environmental Stewardship for outstanding • Committed to pursuing a zero inci
Slide 12: Delivering on Project Backlog
DELIVERING ON PROJECT BACKLOG PROJECT SCOPE STATUS NGL & Refined Products Mont Belvieu’s Frac VII 150 Mbpd fractionator at Mont Belvieu complex Complete Q1 2020 24-inch, 352 mile expansion to LS Express Pipeline adding 400,000 bbls/d Lone Star Express Expansion Complete Q3 2020 from Wink, TX to Fort
Slide 13: 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 • Delivering U.S. oil to support Americ
Slide 14: NGL & Refined Products Segment – Northeast NGL Franchise
NGL & REFINED PRODUCTS SEGMENT – NORTHEAST NGL FRANCHISE Comprehensive Marcellus/Utica Shale solution reaching local, regional and international markets Mariner MarinerEast East Pipeline System Pipeline System MarcusMarcus Hook Hook Industrial Complex Terminal • Provides transportation, storage, and
Slide 15: NGL & Refined Products Segment – Orbit Ethane Export Project
NGL & REFINED PRODUCTS SEGMENT – ORBIT ETHANE EXPORT PROJECT Orbit Export Pipeline and Facility Orbit Pipeline JV Orbit Joint Venture with Satellite Petrochemical USA Corp includes construction of a new ethane export terminal on the U.S. Gulf Coast to provide ethane to Satellite At the terminal,
Slide 16: 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 • Adds 400,000 bbls/d of NGL pipeline capacity from Lone Star’s • 150,000 bbls/d Frac VI we
Slide 17: Growing Unique Export Capabilities
GROWING UNIQUE EXPORT CAPABILITIES Houston Terminal • 330 acres on Houston Ship Channel • 18.2 million barrels of storage • 5 ship docks, 7 barge docks • Connectivity to Gulf Coast refining complex • Pipeline connectivity to all major basins • Deepwater marine access • Rail and truck loading and unl
Slide 18: Appendix
APPENDIX f e a A Ce ENERGY Ss. cas —— -
Slide 19: Crude Oil Segment
CRUDE OIL SEGMENT Crude Oil Pipelines Crude Oil Acquisition & Marketing ~10,770 miles of crude oil trunk and gathering lines located in the Southwest and Crude truck fleet of approximately 575 trucks, 360 Midwest United States trailers, and 150 crude oil truck unloading facilities Interest in
Slide 20: NGL & Refined Products Segment
NGL & REFINED PRODUCTS SEGMENT NGL Storage NGL Pipeline Transportation Fractionation Total NGL storage ~63 million barrels ~4,515 miles of NGL Pipelines 7 Mont Belvieu fractionators (over 900 Mbpd) TET Mont Belvieu Storage Hub ~50 million throughout Texas, Midwest, and 40 Mbpd King Ranch,
Slide 21: Midstream Segment
MIDSTREAM SEGMENT Midstream Asset Map Midstream Highlights Volume growth in key regions: • Q2 2020 gathered volumes were ~13.0 million mmbtu/d, and NGLs produced were ~602,000 bbls/d Permian Capacity Additions: • 400 MMcf/d of processing capacity came online in 2018 PA (Rebel II and Arrowhead II
Slide 22: Interstate Pipeline Segment
INTERSTATE PIPELINE SEGMENT Interstate Asset Map Interstate Highlights Our interstate pipelines provide: Stability • Approximately 95% of revenue is derived from fixed reservation fees Diversity Rover • Access to multiple shale plays, storage facilities and markets Trunkline Transwestern Growt
Slide 23: 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 24: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION 24 Our use of “DCF” herein refers to the Partnership’s Distributable Cash Flow attributable to the partners of ET, as adjusted (as described above). Distribution coverage ratio for the three months ended June 30, 2020 is calculated as Distributable Cash Flow attributable to p
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