Energy Transfer Lp · NYSE:ET
Energy Transfer Lp — Investor Presentation (January 2024)
32 slides from Energy Transfer Lp's investor presentation, January 2024
Slide 1: Investor Presentation January 2024
Investor Presentation January 2024
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 January 2024. At the meetings, members of management may make statements about future events, outlook and expectations rel
Slide 3: What's New?
What’s New? Operational Financials Strategic Entered into non-binding HOA with Updated 2023 Adjusted EBITDA guidance: Closed acquisition of Crestwood Equity TotalEnergies related to term crude oil ‒ Expected Adj. EBITDA: $13.5 – $13.6B2 Partners on November 3, 2023 offtake from ET’s proposed B
Slide 4: Why ET?
Why ET? Valuation Opportunity Significantly Improved Financial Position (LTM EV/EBITDA¹,²) 14 Sr. Unsecured debt rating upgraded by S&P to BBB (8/2023) 12 10 Expect to be at the lower end of 4-4.5x target leverage ratio range going forward 8 6 Targeting annual distribution growth rate of 3% to
Slide 5: Nationwide Footprint
Nationwide Footprint Expanded operating footprint in oil-weighted basins drives competitive scale and growth opportunities Crestwood Acquisition Transaction added strategic assets, extending Energy Transfer’s footprint deeper into the Williston and Delaware basins while providing entry into the Po
Slide 6: ET and CEQP Complementary Assets
ET and CEQP Complementary Assets Gather ~19.8 million MMBtu/d of 2.0 Bcf/d of gas gathering and gas and 869,000 Bbls/d of NGLs 1.4 Bcf/d of gas processing produced capacity Transport ~31.4 million MMBtu/d of natural gas via inter and 10 million Bbls NGL storage intrastate pipelines 340 thousand Bbls
Slide 7: Track Record of Efficient Consolidation
Track Record of Efficient Consolidation Closed December 2021 Closed September 2022 Closed May 2023 Closed November 2023 Assets complementary to ET’s Assets extended ET’s gas Assets complementary to ET’s Assets enhance NGL & Refined interstate and intrastate pipeline gathering and pro
Slide 8: Growth Through Organic Projects and M&A
Growth Through Organic Projects and M&A Key asset additions since the end of Q3 2022 Woodford Express Gulf Run Pipeline Bear Processing Plant Crestwood Equity Partners • Purchase price of $485mm¹ • (In Service December ’22) • (In Service June ’23) • Valued at $7.1B² • (Closed September ’22) • (Clo
Slide 9: Long-Term Capital Allocation Strategy
Long-Term Capital Allocation Strategy Illustrative – Based on $7.5B Distributable Cash Flow • Discretionary cash flow for debt paydown and unit buybacks • $0.5-$1.5B (up to 20%) $0.5-1.5B ~7-20% • Growth capital • (Stated long-term range of $2-3B annual spend; up to 40%) • Distributions to LP common
Slide 10: Outlook Supported by Strong Core Business
Outlook Supported by Strong Core Business ET 2023E Adjusted EBITDA $13.5 - $13.6 billion¹ 2022 to 2023 Adjusted EBITDA Drivers 2023E Adjusted EBITDA Breakout + Volume growth on existing assets Commodity + NGL pipeline, frac and export activities Spread2 5-10% 0-5% + Lotus acquisition + Crestwood acq
Slide 11: Well Balanced Asset Mix Provides Strong Earnings
Well Balanced Asset Mix Provides Strong Earnings Q3 2023 Adjusted EBITDA by Segment Segment Contract Structure Strength Fees from dedicated Significant connectivity from acreage, take-or-pay and Permian, Bakken and Midcon Crude Oil throughput-based basins to U.S. markets, transportation, terminallin
Slide 12: Strong Investment Returns With Shorter Cash Cycle
Strong Investment Returns With Shorter Cash Cycle 2023E Growth Capital: <$2 billion¹ % of 2023E • Bear high-recovery cryogenic processing plant • New treating capacity in the Haynesville Midstream • Efficiency improvements and emissions reduction projects ~40% • Multiple gathering & processing and c
Slide 13: 2023 A Key Inflection Period – Lower Capital and Higher EBITDA
2023 A Key Inflection Period – Lower Capital and Higher EBITDA Legacy ET Organic Growth ET Adjusted EBITDA2 Major growth projects added since 2017 Capital1 • Bakken Pipeline System* • Permian Express 3* 2018 2023E³ 2017 • Trans Pecos/Comanche Trail • Panther Plant $4.9B $13.5-$13.6B Pipelines* • Arr
Slide 14: Significant Management Ownership – Continued Buying
Significant Management Ownership – Continued Buying Leadership Support Insider Ownership vs Peers¹ Ownership Breakout¹ • Energy Transfer insiders and 12% independent board members purchased more than 40 million units, Insiders 10% totaling $411 million, since January ~11% 2021 8% Insider Ownership %
Slide 15: Permian Basin Processing Expanding to Meet Growing Demand
Permian Basin Processing Expanding to Meet Growing Demand Permian Basin plant inlet volumes remain near record highs Permian Basin Footprint Extensive Permian Basin Footprint: • Have significant acreage dedications to ET processing plants in the Permian Basin Permian Bridge Pipeline • Converted
Slide 16: Comprehensive Permian Gas Takeaway Solutions
Comprehensive Permian Gas Takeaway Solutions Flexibility to Provide Natural Gas Delivery to Most Market Hubs Waha Header Permian Natural Gas Takeaway Project Chicago • Energy Transfer’s Waha header connects to more than 10 different natural gas pipelines, as well as to the TPP header¹, which contain
Slide 17: Gulf Run Pipeline
Gulf Run Pipeline Providing An Efficient Gulf Coast Connection Gulf Run Pipeline Unparalleled access to prolific natural gas producing regions in the U.S. Perryville with ability to deliver Haynesville-area gas to Gulf Coast Region Zone 1 (Formerly Line CP): ~200-mile, interstate pipeline with a
Slide 18: A Global Leader in NGL Exports
A Global Leader in NGL Exports ET’s market share of worldwide NGL exports remains at ~20% ET NGL Exports Nederland Terminal 1,000 900 800 700 Thousand barrels per day 600 500 400 300 200 100 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Expanding industry leading business while capturing futur
Slide 19: NGL & Refined Products Segment – Pipeline & Fractionation
NGL & Refined Products Segment – Pipeline & Fractionation – Continuing to Expand Leading Asset Base Lone Star Express Expansion Mont Belvieu Fractionation Expansions • 24-inch, 352-mile expansion • Total of 8 fractionators at Mont Belvieu; current capacity over 1.15 • Added incremental NGL pipeline
Slide 20: World-Class Export Capabilities
World-Class Export Capabilities – Uniquely Positioned to Serve Global Demand Total NGL export capacity is over Houston Terminal Marcus Hook Terminal 1.1 million barrels per day • 330 acres on Houston Ship Channel • 18.2 million barrels of crude and heated product storage • ~850,000 bbls/d of crude e
Slide 21: Leveraging asset base to reduce environmental footprint
Leveraging asset base and expertise to develop projects to reduce environmental footprint Dual Drive Compressors - Established in 2012 Proprietary technology that allows for switching between electric motors and natural gas engines to drive compressors, and offers the industry a more efficient com
Slide 22: Corporate Responsibility
Corporate Responsibility Program Highlights Program Accomplishments • Culture of “safety first, safety always” and a commitment to zero-incidents • Established an Alternative Energy Group to explore renewable energy projects • Real-time tracking of EHS incidents focused on leading indicators • ~20%
Slide 23: Appendix
Appendix Coe ENERGY SS. TRANSFER
Slide 24: Crude Oil Segment
Crude Oil Segment¹ ~14,300 miles of crude oil trunk and gathering lines Crude Oil Pipelines ~ 1 million barrels per day of Permian crude oil takeaway capacity Directly connected to 6.8 MMbbls/d (~37%) of domestic refining capacity 1.85 MMbbls/d of ET-owned export capacity on USGC ET owns and o
Slide 25: NGL & Refined Products Segment
NGL & Refined Products Segment¹ Fractionation 8 Mont Belvieu fractionators (over 1.15 MMbpd) 150,000 Bbls/d Frac VIII went into service in August 2023 35 Mbpd Geismar Frac; 30 to 50 Mbpd Marcus Hook C3+ Frac NGL Storage Total NGL storage ~83 million barrels ~58 million barrels of NGL stora
Slide 26: Midstream Segment
Midstream Segment¹ Midstream Highlights Extensive Gathering and Processing Footprint • Assets in most of the major U.S. producing basins PA Continued Volume Growth • Q2 2023 volumes were a record 19.8 million MMbtu/d primarily due to increased throughput in the majority of our operating regions
Slide 27: Interstate Natural Gas Pipeline Segment
Interstate Natural Gas Pipeline Segment Interstate Highlights ET’s interstate pipelines provide: Stability • Approximately 95% of revenue derived from fixed reservation fees Diversity • Access to multiple shale plays, storage facilities and markets Asset Overview Growth Opportunities Transwest
Slide 28: Intrastate Natural Gas Pipeline Segment
Intrastate Natural Gas Pipeline Segment ~ 11,385 miles of intrastate pipelines with ~24 Bcf/d of throughput capacity, Intrastate Highlights and ~88 Bcf/d of working storage capacity Well-positioned to capture additional revenues from anticipated changes in natural gas supply and demand in the next
Slide 29: Powder River Overview
Powder River Overview With the acquisition of Crestwood in November 2023, Energy Transfer gained entry into the Powder River Basin Overview Powder River Basin Asset Map • One of the largest well-head service provider in the Power River Basin WY with ~400K acres dedicated across Converse County(1) SD
Slide 30: Non-GAAP Reconciliations
Non-GAAP Reconciliations 30
Slide 31: Non-GAAP Reconciliation
Non-GAAP Reconciliation Energy Transfer LP Reconciliation of Non-GAAP Measures * 2018 2019 2020 2021 2022 2023 Full Year Full Year Full Year Full Year Full Year Q1 Q2 Q3 Year To Date Net income $ 3,365 $ 4,899 $ 140 $ 6,687 $ 5,868 $ 1,447 $ 1,233 $ 1,047 $ 3,727 Loss from discontinued operations 26
Slide 32: Non-GAAP Reconciliation Definitions
Non-GAAP Reconciliation Definitions Adjusted EBITDA and Distributable Cash Flow are non-GAAP financial measures used by industry analysts, investors, lenders and rating agencies to assess the financial performance and the operating results of Energy Transfer's fundamental business activities and sho
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