Energy Transfer Lp · NYSE:ET
Energy Transfer Lp — Merger or Acquisition (August 2023)
15 slides from Energy Transfer Lp's merger presentation, Aug 16, 2023
Slide 1: Acquisition of Crestwood Equity Partners
Acquisition of Crestwood Equity Partners August 16, 2023
Slide 2: Forward-looking Statements / Legal Disclaimer
Forward-looking Statements / Legal Disclaimer 2 Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securit
Slide 3: Overview of Proposed Transaction
• Energy Transfer has executed a definitive agreement to acquire Crestwood at an ~$7.1Bn enterprise value in a 100% all-equity transaction based on a 2.07x exchange ratio • ET issues ~219 million common units to fund ~$2.7Bn of equity value • ET rolls over CEQP’s ~$2.85Bn of long-term bonds • Assume
Slide 4: Key Transaction Highlights
Key Transaction Highlights 4 Strategic Transaction Allows Energy Transfer to Further Diversify its G&P Business While Meaningfully Reducing Pro Forma Costs Credit Neutrality Driven by All-Equity Deal Immediately Accretive to DCF/Unit Upon Closing Diversified and Complementary Assets Drive $40MM+ of
Slide 5: Strategic Rationale & Transaction Expectations
Combination Expected To Benefit All Stakeholders Through Additional Scale and Integration 5 Strategic Rationale & Transaction Expectations Expect $40MM Annual Run-rate of Cost Synergies Before Additional Benefits of Financial and Commercial Opportunities CEQP’s substantial processing capacity in t
Slide 6: Scale and Diversity of Cash Flow Enhances Credit Profile
Expected accretion and increased free cash flow will further ET’s ability to buy back units and/or increase distribution growth rate Pro forma ET maintains a predominantly fee-based cash flow profile Limited commodity price exposure within portfolio Increases scale in key basins while adding
Slide 7: Diversified U.S. Portfolio of Leading G&P Assets
Current fundamentals are favorable for increased customer activity in 2024+ Diversified U.S. Portfolio of Leading G&P Assets 7 Expanded operating footprint in oil-weighted basins drives competitive scale and growth opportunities • 2.0 Bcf/d gas gathering • 1.4 Bcf/d gas processing • 340 MBbls/d crud
Slide 8: Williston Basin Overview
Williston Basin Overview 8 CEQP is a leading midstream operator in the Williston with gas gathering capacity of 818 MMcf/d, crude gathering capacity of 250 MBbls/d, as well as gas processing capacity of 430 MMcf/d, and a diverse mix of well-capitalized producers Overview Williston Basin Asset Map Ke
Slide 9: Delaware Basin Overview
Delaware Basin Overview 9 Fully integrated gathering system creates enhanced competitive advantages for CEQP in some of the most active counties in New Mexico and Texas Overview Delaware Basin Asset Map • Assets include multiple wellhead gas gathering systems, 550 MMcf/d of in-service processing cap
Slide 10: Powder River Overview
Powder River Overview 10 CEQP continues to realize commercial success leveraging excess capacity at the Bucking Horse Processing Plant to attract new, high-quality customers Overview Powder River Basin Asset Map • CEQP is the largest well-head service provider in the Power River Basin with ~400K acr
Slide 11: Storage & Logistics Overview
Storage & Logistics Overview 11 Integrated infrastructure of NGL marketing, storage, terminal & transportation services supported by crude and gas marketing and the COLT Hub Overview • NGL Logistics: strategically located storage and terminal assets with 10 MMBbls of storage capacity (primarily Marc
Slide 12: Cash Flow Supported By Balanced Portfolio With High-Quality Customers
Fixed Fee or Take-or-Pay 85% Variable Rate 15% Gas 59% Oil & Water 30% NGLs 11% Cash Flow Supported By Balanced Portfolio With High-Quality Customers 12 Cash flow supported by primarily fixed fee agreements and top-tier customer base; favorable commodity prices drive upside in PoP contracts Contract
Slide 13: ET and CEQP Complementary Assets
ET and CEQP Complementary Assets 13 Gather ~19.8 million MMBtu/d of gas and 863,000 Bbls/d of NGLs produced Transport ~31.4 million MMBtu/d of natural gas via inter and intrastate pipelines Fractionate ~989 thousand Bbls/d of NGLs Transport ~5.3 million Bbls/d of crude oil Capable of exporting ~1.1
Slide 14: Successful Acquisition Track Record
Successful Acquisition Track Record 14 ET Management has a proven track record of successfully integrating acquisitions Knowledge of respective assets and businesses facilitates integrations of: Operations Commercial Risk Management Finance / Accounting Information Technology Integra
Slide 15: Transaction Timeline
Transaction Timeline 15 August 2023 Q3 and Q4 2023 Sign Agreement Announce Transaction Begin drafting S-4 registration statement (including Crestwood proxy statement) Begin regulatory approval process S-4 registration statement (including Crestwood proxy statement) declared effective by th
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