Enterprise Products Partners L.p. · NYSE:EPD
Enterprise Products Partners L.p — Corporate Update (October 2005)
24 slides from Enterprise Products Partners L.p's corporate update, Oct 27, 2005
Slide 1: Analyst Presentation October 2005
Analyst Presentation October 2005 Robert G. Phillips Michael A. Creel President & CEO Executive VP & CFO
Slide 2: Forward Looking Statements
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 “anticip
Slide 3: Strategic Update
Strategic Update Record 3rd quarter performance includes benefits of GulfTerra merger Merger integration complete 2005 YTD G&A run-rate lower than plan Hedge to natural gas prices performed as expected Diversification benefits greater than expected Robust organic growth strategy underway Gulf of Mex
Slide 4: Essence of Our Growth Strategy
Essence of Our Growth Strategy What makes EPD unique in the MLP sector Ability to grow substantially through organic investments as a result of strong business positions in key producing and consuming regions Diversified portfolio across geographic regions and businesses Generate higher return on in
Slide 5: M&A vs. Organic Growth
M&A vs. Organic Growth Average midstream acquisition multiple increased from 7.6x (2002) to 10.1x (YTD 2005) Buyers paying high multiples on historically high cash flow streams Disciplined acquirers will wait out the cycle Organic projects generate higher risk adjusted cash returns (3x - 8x) Less co
Slide 6: Premier Network of Midstream Energy Assets
Premier Network of Midstream Energy Assets 18,368 miles of natural gas pipeline 13,231 miles of NGL and petrochemical pipeline 813 miles of GOM crude oil pipeline 163 MMBbls of NGL storage capacity 23 Bcf of natural gas storage capacity 7 offshore hub platforms 16 fractionation plants 23 natural gas
Slide 7: Major Capital Projects Announced
Major Capital Projects Announced
Slide 8: Capital Project Summary
Capital Project Summary(1) Diversified Portfolio of Capital Projects Capital Spending by Year (1) Included above are proposed projects that have not been announced by Enterprise but the company has a reasonable expectation they will be completed.
Slide 9: Hobbs Frac & MAPL Central Expansion
Hobbs Frac & MAPL Central Expansion MAPL Central System Expansion Complete 12” loops between Conway to Skellytown Project increases north-south capacity by 48 MBPD Hobbs Fractionator Project 75 MBPD Frac located on the site with Hobbs Pipeline Station New high rate purity ethane well at Hobbs Increa
Slide 10: Mid-America & Seminole Pipelines
Mid-America & Seminole Pipelines MAPL expansion underway 50 MBPD increase $187MM project; in service 1Q 2007 Pipe and pumps ordered; environmental impact by December 2005; ROW grant and Notice To Proceed (NTP) by February 2006 Significant new sources of Rockies NGL’s developing Piceance Basin growin
Slide 11: Ferrellgas Acquisition
Ferrellgas Acquisition Completed August 1, 2005 Total capital: $156MM Acquisition - $144MM Pipeline - $12MM 6 MMBbls LPG storage 4 propane terminals Major Benefits Assets are on MAPL system Links Conway to Hobbs to Mont Belvieu 83% fee-based contracts
Slide 12: San Juan Gathering & Processing
San Juan Gathering & Processing Record new well connects: 264 to date in 2005 vs. 250 in all of 2004 Expect to connect 325 wells in 2005 %-of-index (POI) gathering agreements offset higher fuel costs on other assets System optimization projects largely completed Possible Chaco expansion after 2006
Slide 13: Gulf of Mexico Assets
Gulf of Mexico Assets E Gas Pipeline — ~~ Gas Pipeline (under construction) PY rato More Proeesrarint Sherine Gi Pein ener orci) © Allrights reserved. Enterprise Products Partners LP.
Slide 14: Marco Polo Platform & Pipelines
Marco Polo Platform & Pipelines Currently processing approximately 20 MBPD of oil and 12 MMcf/d of natural gas from four wells at Marco Polo and one well at K2 The first K2 well is flowing approximately 15 MBPD of oil and 8 MMcf/d of gas Additional K2 and K2 North wells have been delayed by Hurrican
Slide 15: Cameron Highway Oil Pipeline
Cameron Highway Oil Pipeline Currently moving approximately 92 MBPD of oil from 6 wells at Holstein and 2 wells at Mad Dog Additional wells from Holstein and Mad Dog have been delayed by Hurricanes Katrina and Rita A new well from each of Holstein and Mad Dog is expected in 4th quarter 2005 Atlantis
Slide 16: Constitution Oil & Gas Pipelines
Constitution Oil & Gas Pipelines 70 miles of new 16” oil pipeline and 30 miles of new 16” gas pipeline Oil pipeline connections to Cameron Highway and Poseidon at SS332B Gas pipeline connects via subsea jumper to Anaconda system Oil and gas pipelines have been installed Connections to existing pipel
Slide 17: Independence Hub & Trail Project
Independence Hub & Trail Project 850 MMcf/d semi-submersible production platform currently under construction Hull is approximately fifty percent complete with scheduled sail away in March of 2006 Topsides are approximately 60% complete Analyzing expansion to 1 Bcf/d to handle new discoveries in the
Slide 18: Financial Overview
Financial Overview © Allrights reserved. Enterprise Products Partners LP.
Slide 19: Nine Months Results
Nine Months Results (unaudited) Gross Operating Margin By Segment NGL Pipelines & Services Onshore Natural Gas Pipelines & Services Offshore Pipelines & Services Petrochemical Services Other Total Gross Operating Margin EBITDA Net Income Distributable Cash Flow (DCF) DCF Coverage Three Months Ending
Slide 20: Impact on Gross Operating Margin: Natural Gas to Crude Oil Price Ratio
Impact on Gross Operating Margin Natural Gas to Crude Oil Price Ratio
Slide 21: Solid Capitalization
Solid Capitalization Effective 69% fixed rate debt after Swaps Avg. interest rate - 5.45% Avg. life of debt - 10.7 years
Slide 22: Amended Revolving Credit Facility
Amended Revolving Credit Facility Increased facility to $1.25 billion from $750 million Includes accordion feature to accommodate an increase in facility to $1.4 billion Extended maturity to October 2010 from September 2009 Decreased borrowing rates by 37.5 bps based on current amount of debt outsta
Slide 23: Key Investment Considerations
Key Investment Considerations Strategically located assets serving the most prolific supply basins and areas of growing demand for our products and services in natural gas, NGLs and crude oil Leading integrated midstream asset base with strong competitive position Stable cash flows from fee-based se
Slide 24: Analyst Presentation October 2005
Analyst Presentation October 2005 Robert G. Phillips Michael A. Creel President & CEO Executive VP & CFO
Enterprise Products Partners — Corporate Update (October 2005) on 6ix