Enterprise Products Partners L.p. · NYSE:EPD
Enterprise Products Partners L.p — Coalition of Publicly Traded Partnerships Annual Investor Conference 2005
26 slides from Enterprise Products Partners L.p's conference presentation, Mar 1, 2005
Slide 1: Coalition of Publicly Traded Partnerships Annual Investor Conference
Enterprise Products Partners L.P. Coalition of Publicly Traded Partnerships Annual Investor Conference March 1, 2005 Robert G. Phillips President & CEO Michael A. Creel EVP & CFO
Slide 2: Forward-Looking Statements
This presentation contains forward-looking statements and information that are based on Enterprise’s beliefs and those of its general partner, as well as assumptions made by and information currently available to them. When used in this presentation, words such as “anticipate,” “project,” “expect,”
Slide 3: Forward Looking Statements (cont.)
Forward Looking Statements (cont.) Fluctuations in oil, natural gas and NGL prices; A reduction in demand for its products by the petrochemical, refining or heating industries; A decline in the volumes of NGLs delivered by its facilities; The failure of its credit risk management efforts to adequate
Slide 4: Overview
Overview The largest publicly traded energy partnership (based on market capitalization) serving producers and consumers of natural gas, NGLs and crude oil Completed $6 billion merger with GulfTerra Energy Partners, L.P. in September 2004 Prior to GulfTerra merger, ranked 336th on Fortune 500 and 7t
Slide 5: Successful Merger with GulfTerra
Successful Merger with GulfTerra Created leading provider of midstream energy services with strong position in prolific deepwater Gulf of Mexico and Rocky Mountains Diversified and complementary businesses provide a natural hedge to mitigate effects of natural gas prices Extended integrated value ch
Slide 6: High visibility of growth
High visibility of growth Building scale in core growth markets with largest network of midstream assets Access to all major NGL supply basins Leveraging each link of value chain Portfolio of assets poised for solid long-term growth Gaining momentum from GulfTerra merger leading to organic growth op
Slide 7: Integrated Midstream Energy Services
Integrated Midstream Energy Services Fees are earned at each link of value chain
Slide 8: Leading Business Positions Across Midstream Energy Value Chain
Leading Business Positions Across Midstream Energy Value Chain
Slide 9: $2 Billion of Growth Opportunities
$2 Billion of Growth Opportunities
Slide 10: Southern Green Canyon Value Chain
Southern Green Canyon Value Chain
Slide 11: Independence Hub and Trail
Independence Hub and Trail Designed to process up to 850 MMcf/d of natural gas production from six anchor fields Capacity to tie-back up to 11 additional fields 16 of 23 wells planned for anchor discoveries have been drilled with 1.6 Tcf of reserves Large resource basin of approx. 11,500 square mile
Slide 12: Independence Hub
Independence Hub San Jacinto DC 61sia19 Spiderman, DC 620/621 Kw ‘Atlas/Atlas NW oe . — 73 ar Vortex ndo NW LR 5/49/50 Anchor Fed AV 217/261 LR12 Pir Recent Tie-back Discovery LR 177/221 che ir Potential abil LR 39 Potential Tie-Back AV 305/349 LR 265/309 ©All rights reserved. Enterprise Products Pa
Slide 13: Financial Overview
Financial Overview ©All rights reserved. Enterprise Products Partners LP.
Slide 14: Financial Objectives
Financial Objectives Increase cash flows from fee-based businesses Prudently invest to expand the partnership through organic growth, acquisitions and joint ventures with strategic partners Manage capital to provide financial flexibility for partnership while providing our investors with an attracti
Slide 15: Unique Ownership Structure
Unique Ownership Structure Largest % ownership by Management in energy industry Management interest aligned with limited partners supported by unit purchases Approx. $382 million of new EPD units since October 2002 Acquired remaining 9.9% of EPD GP and 13.5 million EPD units from El Paso for $425 mi
Slide 16: MLP Math: 25% vs. 50% GP Splits
MLP Math: 25% vs. 50% GP Splits Lower Splits = Lower Cost of Capital
Slide 17: Selected Organic Growth and Acquisitions (Estimated Costs)
Selected Organic Growth and Acquisitions (Estimated Costs)
Slide 18: Diversified Operations Gross Operating Margin by Segment
Diversified Operations Gross Operating Margin by Segment Fourth Quarter 2004 NGL Pipelines & Services (51%) Natural gas processing plants & related marketing activities NGL fractionation plants NGL pipelines and storage Onshore Natural Gas Pipelines & Services (26%) Natural gas pipelines Natural gas
Slide 19: Overview of Fourth Quarter Results
Overview of Fourth Quarter Results
Slide 20: Solid Capitalization; Ample Liquidity
Solid Capitalization; Ample Liquidity Pro Forma for proceeds of $397 million from an equity offering, $39 million from the DRIP, $491 million from the private placement of senior notes, and the retirement of $350 million of 8.25% notes due March 2005. All of these transactions occurred in February 2
Slide 21: EPD Meets S&P Criteria
EPD Meets S&P 500 Criteria (1)
Slide 22: Proven Growth, Superior Returns
Proven Growth, Superior Returns
Slide 23: Key Investment Considerations
Key Investment Considerations Strategically located assets serving the most prolific supply basins for natural gas, natural gas liquids (NGLs) and crude oil in the U.S. Leading business positions across midstream sector Greater cash flow stability from diversified fee-based assets following the rece
Slide 24: Questions and Answers
Enterprise Products Partners L.P. Questions and Answers
Slide 25: Non-GAAP Reconciliations
Non-GAAP Reconciliations Fourth Quarter® Gi minor) ms 2004 Openting income ws $15 Aijustmenas to reconcile Operating income to Total gross operating margin Depreciation and anertzationin operating costs and expenses 2 2 Retained lease expense, net in operating costs a expanses 2 1 Loss (air) on sale
Slide 26: Non-GAAP Reconciliations
Non-GAAP Reconciliations (Sin nations) 2002 00a!” 2008 Yevhcome ca sus suns Agios to derive PRIDA: hunstepense 8 ws Bs rt Pork for nometae 1 1 5 Deprecition and martini (archdhg martintin comport #t.e.) 2 0 16 ODA, To0 76 366 Iurstopense er (3) ony Provkin for nome oO a 6 mute fect of cnges accountn