Enterprise Products Partners L.p. · NYSE:EPD
Enterprise Products Partners L.p — ArgusVision 2007 Conference
33 slides from Enterprise Products Partners L.p's conference presentation, Nov 13, 2006
Slide 1: Enterprise Products Partners L.P. ArgusVision 2007 Conference
Enterprise Products Partners L.P. ArgusVision 2007 Conference November 13, 2006
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: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures This presentation utilizes the Non-GAAP financial measures of Gross Operating Margin, EBITDA, Distributable Cash Flow and Consolidated EBITDA. In general, we define Gross Operating Margin as operating income before (i) depreciation, amortization and accretion expen
Slide 4: Overview
Overview Enterprise Products Partners L.P. (“EPD”) is one of the largest publicly traded energy partnerships serving producers and consumers of natural gas, natural gas liquids (NGLs) and crude oil Enterprise value of approximately $17 billion Market capitalization of over $12 billion Ranked 183rd o
Slide 5: Key Investment Considerations
Key Investment Considerations Strategically located assets serving the most prolific supply basins and largest consuming regions of natural gas, NGLs and crude oil in the United States Leading business positions across energy value chain Over 90% gross operating margin from diversified fee-based ass
Slide 6: Management's Interest Aligned with Limited Partners
Management’s Interest Aligned with Limited Partners EPCO has consistently supported growth in EPD Purchased $53 million of new equity in August 2006, and approx. $450 million since IPO Capped GP’s incentive split at 25% for no consideration Contributed half of GTM GP to EPD for no consideration - ap
Slide 7: Premier Midstream Network in Key Regions
Premier Midstream Network in Key Regions
Slide 8: Integrated Midstream Energy Services
Integrated Midstream Energy Services Fees are earned at each link of value chain
Slide 9: Leading Business Positions Across Midstream Energy Value Chain
Leading Business Positions Across Midstream Energy Value Chain
Slide 10: Diversified Businesses
Diversified Businesses... NGL Pipelines & Services (54%) 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 storage facilities Offshore Pipelines & Services (
Slide 11: ....Drive Consistent Results
....Drive Consistent Results Stability and consistency Gross operating margin Distributable cash flow Reflects benefits of Integrated value chain Fee-based businesses Proven ability to deliver stable cash flows in volatile energy environment (e.g. commodity prices, hurricanes) Record gross operating
Slide 12: Key Assets and Opportunities Visibility to Growth
Key Assets and Opportunities Visibility to Growth
Slide 13: Gulf of Mexico Assets
Gulf of Mexico Assets New Orleans Port Arthur e Houston e Texas City « EY Platform may Gas Processing Plant ZPD \ower Tertiary Discoveries Oil Pipeline Oil Pipeline (under construction) Gas Pipeline “~ Gas Pipeline (under construction) © Allrights reserved. Enterprise Products Partners LP 13
Slide 14: Independence Hub Platform & Trail Pipeline
Independence Hub Platform & Trail Pipeline EPD’s largest single project Hub (80% Enterprise) / Pipeline (100% Enterprise) Expanded Hub and Pipeline to 1 Bcf/d capacity Three additional discoveries since project was sanctioned Producers: Anadarko, Dominion, Spinnaker, Devon New 134-mile 24” gas pipel
Slide 15: Texas Pipeline System
Texas Pipeline System 8,222-mile gathering and transportation system with 6.4 Bcf storage YTD 2006 throughput of 3.4 TBtu/d Connected to major supply basins North Texas (Barnett Shale) East Texas (Bossier) South Texas (Wilcox, Vicksburg) Permian Basin Connected to all major Texas Markets Well-positi
Slide 16: Rocky Mountain Assets
Rocky Mountain Assets NGL Pipelines Terminals Fractionation Facility Natural Gas Processing Plant Storage Facility Import / Export Terminal
Slide 17: Jonah Gas Gathering System
Jonah Gas Gathering System 580 miles of pipe Volumes increased from 450 MMcf/d in 2001 to 1.2 Bcf/d in 2Q06 Production expected to grow from 1.4 to 3.3 Bcf/d from Jonah / Pinedale fields Volumes supply Pioneer processing plants Joint Venture with TEPPCO Announced August 2006 EPD will earn approximat
Slide 18: New Processing Plants
New Processing Plants Pioneer Plants Existing Silica Gel Plants Integrated to Jonah Gas Gathering System EPD purchased 300 MMcf/d Plant in 1Q06 Completed expansion to 600 MMcf/d in July 2006 New Cryogenic Plant Supported by long-term processing contracts with EnCana and Ultra 650 MMcf/d, up to 30 MB
Slide 19: Mid-America Pipeline (MAPL) Phase I Expansion Project
Mid-America Pipeline (MAPL) Phase I Expansion Project MAPL Rocky Mountain pipeline flowed at 90%+ of 225 MBPD capacity in 2005 Obtained long-term (10-20 years) shipper dedication agreements Phase I expansion increases capacity by 50 MBPD of mixed NGLs Expected completion in phases - -30 MBPD in Octo
Slide 20: Hobbs Fractionator
Hobbs Fractionator EPD-controlled NGL fractionation volumes consistently exceeded EPD’s fractionation capacity in Mont Belvieu in 2005 requiring offloads to 3rd parties Building 75 MBPD Hobbs fractionator located on the interconnect of the MAPL and Seminole pipelines Supplied by growing Rocky Mounta
Slide 21: Major Organic Growth Projects
Major Organic Growth Projects Expected Start Dates and Cumulative Investment
Slide 22: Financial Overview
Financial Overview © Allrights reserved. Enterprise Products Partners LP.
Slide 23: Strong Financial Position at September 30, 2006
Strong Financial Position at September 30, 2006
Slide 24: History of Financial Discipline Managing Distributable Cash Flow
History of Financial Discipline Managing Distributable Cash Flow Significant Distributable Cash Flow Reinvested in Partnership
Slide 25: Realizing Benefits of Eliminating GP's 50% Splits
Realizing Benefits of Eliminating GP’s 50% Splits “Landmark” action by EPCO in December 2002 to eliminate EPD GP’s 50% IDR for no consideration is providing significant benefits to investors 3rd Qtr 2006 savings of $20 million 30% of DCF retained in partnership since GTM merger is attributable to el
Slide 26: Proven Growth, Superior Returns
Proven Growth, Superior Returns
Slide 27: Largest Energy Partnerships
10 Largest Energy Partnerships Ranked by Enterprise Value Ranked by Average Daily Trading Volume
Slide 28: Key Takeaways
Key Takeaways Active development of midstream infrastructure in high growth supply basins Access to growing markets for natural gas, NGLs and crude oil Leverage value chain to generate higher returns on project investments and attract/retain customers Strong balance sheet and low cost of capital to
Slide 29: Non-GAAP Reconciliations
Non-GAAP Reconciliations © Allrights reserved. Enterprise Products Partners LP.
Slide 30: Non-GAAP Reconciliations
Non-GAAP Reconciliations Enterprise Products Partners L.P. Gross Operating Margin by Segment (Dollars in 000s) For the Quarterly Petiod 30.05 4005 10 06 20 06 30.06 Gross operating margin by segment NGL Pipelines & Services $153,760 § 152.314 $170,950 $146,414 § 232,037 Onshore Natural Gas Pipelines
Slide 31: Non-GAAP Reconciliations
Non-GAAP Reconciliations Enterprise Products Partners LP. Distributable Cash Flow (Dollars in 000s, Unaudited) For the Quarterly Period. 30054005 1006 +2006 —~3006 AAP wtp GAAP" " and GAAP" A. Net Income B131169 § 108424 $133,777 $126,295 § 208,302 Adjustments to derve Distributable Cash Flaw: (add
Slide 32: Non-GAAP Reconciliations
Non-GAAP Reconciliations Enterprise Products Partners LP. Nine Months EBITDA (Dollars in 000s, Unaudited) Ended Reconciliation of Non-GAAP "EBITDA" to GAAP "Net Income" and BAAR ‘N mn A Net Income § 468,374 Additions to net income to derive EBITDA Add interest expense (including related amortization
Slide 33: Non-GAAP Reconciliations
Non-GAAP Reconciliations Enterprise Products Parmers LP. Consolidated EBITDA (Dollars in 000s, Unaudited) 2A DA" to GAAP * Net incorre (1) 8 878,605 Adjustments to net income to derive Consotitated EBITDA (acid or subtract as indicated by sign of numb). ‘Add/Deduct equity in (income) lass of unconso
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