Energy Transfer LP · NYSE:ET
Energy Transfer LP — Investor Presentation (January 2023)
33 slides from Energy Transfer LP's investor presentation, January 2023
Slide 1: Investor Presentation January 2023
Investor Presentation January 2023
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 2023. 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 Placed Gulf Run Pipeline in service in Increased 2022 Guidance for third time: Published latest Corporate Responsibility December 2022 ‒ Expected Adj. EBITDA: $12.8 – $13.0B Report Placed Grey Wolf processing plant in ‒ Up from previous guide: $12
Slide 4: Energy Transfer – A Truly Unique Franchise
Energy Transfer – A Truly Unique Franchise Marcus Hook Terminal Nederland Terminal Asset Overview Natural Gas Storage Natural Gas Liquids (NGLs) Fractionator Crude Terminals Refined Products Processing Houston Terminal Treating Major Terminals Marcus Hook Terminal Nederland Terminal Houston Terminal
Slide 5: Wellhead to Water Services
Wellhead to Water Services Gather ~19.1 million Mmbtu/d of gas and 814,000 Bbls/d of NGLs produced Transport ~29.0 million Mmbtu/d of natural gas via inter and intrastate pipelines Fractionate ~940 thousand Bbls/d of NGLs Transport ~4.6 million Bbls/d of crude oil Capable of exporting ~1.1 million B
Slide 6: Industry Leading Performance
Industry Leading Performance FY 2022 Price and Total Return vs. Peers¹ 60.0% 56% 48% 49% 50.0% 44% 45% 44% 41% 40.0% 35% 36% 33% 32% 29% 30.0% 26% 26% 23% 21% 21% 21% 21% 19% 18% 17% 20.0% 14% 15% 11% 12% 10% 8% 7% 10.0% 0% 0.0% ‐10.0% ‐9% ‐20.0% ‐14% ET LNG CQP TRGP PAA WMB PAGP WES KMI MPLX DTM OK
Slide 7: 2022 Outlook Supported by Strong Core Business
2022 Outlook Supported by Strong Core Business ET 2022E Adjusted EBITDA $12.8 - $13.0 billion 2021 to 2022 Adjusted EBITDA Drivers 2022E Adjusted EBITDA Breakout + Enable Acquisition Commodity + NGL pipeline and export activities 10-12.5% Spread1 + NGL / gas prices 0-2.5% - Lower asset optimization
Slide 8: Diverse Earnings Supported by Predominantly Fee-Based Contracts
Diverse Earnings Supported by Predominantly Fee-Based Contracts Q3 2022 Adjusted EBITDA by Segment Segment Contract Structure Strength Fees from dedicated Significant connectivity to acreage, take-or-pay and Permian, Bakken and Midcon Crude Oil throughput-based Basins to U.S. markets, transportation
Slide 9: Increasing Investment Returns With Shorter Cash Cycle
Increasing Investment Returns With Shorter Cash Cycle 2022E Growth Capital: $1.8 billion to $2.1 billion1 % of 2022E1 • Grey Wolf (In service) and Bear high-recovery cryogenic processing plants • Efficiency improvements and emissions reductions projects Midstream • Modernization and debottlenecking
Slide 10: Results Benefitting from Investments in High-Quality Growth Projects
Results Benefitting from Investments in High-Quality Growth Projects Major growth projects added since 2017 • Bakken Pipeline System* • Permian Express 3* Legacy ET Organic Growth ET Adjusted EBITDA3 2017 • Trans Pecos/Comanche Trail • Panther Plant Capital2 Pipelines* • Arrowhead Plant 2017 2022E $
Slide 11: MLP Investing: Why Invest In ET?
MLP Investing: Why Invest In ET? Attractive • Efficient income security with high relative yield ET current yield: ~9% Yields Strong • Significant earnings capacity from critical energy Earnings ET 2022 estimated Adjusted EBITDA: $12.8 - $13.0 billion infrastructure franchise Power Quarterly• Quarte
Slide 12: Significant Management Ownership – Continued Buying
Significant Management Ownership – Continued Buying Since January 2021, Energy Transfer insiders and independent board members purchased ~29.4 million units, totaling ~$265 million; including purchases totalling ~$37mm by its Executive Chairman in November 2022 Insider Purchases since Insider Owners
Slide 13: Domestic Natural Gas Demand At All-Time High
Domestic Natural Gas Demand At All-Time High Historical Domestic Natural Gas Demand¹ 90 84.53 85.60 80 70 60 50 Bcf/d 40 30 20 10 ‐ 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 November 2022 US consumption levels outstripped the previo
Slide 14: Lake Charles LNG Export Terminal
Lake Charles LNG Export Terminal Increasing Interest As Global LNG Demand Grows Lake Charles LNG Export Project Executed LNG Sale and Purchase Agreements (SPA) ‒ Shell NA LNG – 2.1 million tonnes per annum for 20 years ‒ China Gas – 0.7 million tonnes per annum for 25 years ‒ SK Gas – 0.4 million
Slide 15: Permian Basin Processing Expansion
Permian Basin Processing Expansion Permian Basin plant inlet volumes remain at or near record highs Permian Basin Footprint Extensive Permian Basin Footprint: • Have ~3.7 million acres dedicated to ET processing plants in the Permian Basin with an average of 7+ years remaining on contracts Permi
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 Provides An Efficient Gulf Coast Connection Gulf Run Pipeline 135-mile, 42” interstate pipeline with an expected capacity of 1.65 Bcf/d Backed by a 20-year commitment for 1.1 Bcf/d with cornerstone shipper Golden Pass LNG (Qatar Petroleum & Exxon Mobil) Unparalleled access to
Slide 18: NGL & Refined Products Segment - A World Leader in NGL Exports
NGL & Refined Products Segment - A World Leader in NGL Exports In total, ET’s market share of worldwide NGL exports has doubled over the last 24 months to approximately 20% ET NGL Exports Nederland Terminal p 800 700 600 Thousand barrels per day 500 400 300 200 100 0 2014 2015 2016 2017 2018 2019 20
Slide 19: NGL & Refined Products Segment – Ethane Export Project
NGL & Refined Products Segment – Ethane Export Project Ethane Export Pipeline and Terminal Facilities Orbit JV Orbit Joint Venture with Satellite Petrochemical USA Corp includes a new ethane export terminal on the U.S. Gulf Coast to provide ethane to Satellite’s newly-constructed ethane crackers
Slide 20: NGL & Refined Products Segment – Pipeline & Fractionation Expansion
NGL & Refined Products Segment – Pipeline & Fractionation Expansion Lone Star Express Expansion Mont Belvieu Fractionation Expansions • 24-inch, 352-mile expansion • Total of 7 fractionators at Mont Belvieu; current capacity over 900,000 bbls/d • Added incremental NGL pipeline capacity from Lone Sta
Slide 21: Growing Unique Export Capabilities
Growing Unique Export Capabilities Total NGL export capacity is now 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 • ~500,000 bbls/d of crude export capacity • 5 ship docks, 7 barge
Slide 22: Successful Acquisition Track Record
Successful Acquisition Track Record HPL TUFCO Houston Pipeline Co. 2004 2005 2006 2011 2012 2012 2012 2014 2015 2016 2017 2019 2021 2022 ET Management has a proven track record of successfully integrating acquisitions Knowledge of respective assets and businesses facilitates integrations of: O
Slide 23: Alternative Energy Group
Alternative Energy Group – Leveraging asset base and expertise to develop projects to reduce environmental footprint Dual Drive Compressors - Established in 2012 Patented technology that allows for switching between electric motors and natural gas engines to drive compressors, and offers the indus
Slide 24: 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 25: Appendix
Appendix Gor ENERGY TRANSFER
Slide 26: Crude Oil Segment
Crude Oil Segment ~11,300 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 1.1 MMbbls/d of ET-owned export capacity on USGC ET owns and ope
Slide 27: NGL & Refined Products Segment
NGL & Refined Products Segment Fractionation 7 Mont Belvieu fractionators (over 900 Mbpd) Recently resumed construction of 150,000 bbls/d frac 8, which is expected in service in Q3 2023 40 Mbpd King Ranch, 25 Mbpd Geismar 30 to 50 Mbpd Marcus Hook C3+ Frac in service Q4 2017 NGL Storage To
Slide 28: Midstream Segment
Midstream Segment Midstream Highlights Extensive Gathering and Processing Footprint • Assets in most of the major U.S. producing basins PA Continued Volume Growth • Q3 2022 volumes reached a record 19.1 million MMbtu/d primarily due to the addition of the Enable assets, as well as increased thro
Slide 29: Interstate Natural Gas Pipeline Segment
Interstate Natural Gas Pipeline Segment Interstate Highlights ET’s interstate pipelines provide: Stability • Approximately 95 percent of revenue derived from fixed reservation fees Diversity Asset Overview • Access to multiple shale plays, storage facilities and markets Transwestern Growth Opp
Slide 30: Intrastate Natural Gas Pipeline Segment
Intrastate Natural Gas Pipeline Segment ~ 11,600 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 31: Non-GAAP Reconciliations
Non-GAAP Reconciliations 31
Slide 32: Non-GAAP Reconciliation
Non-GAAP Reconciliation Energy Transfer LP Reconciliation of Non-GAAP Measures * 2019 2020 2021 2022 Full Year Full Year Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 YTD Net income $ 4,825 $ 140 $ 3,641 $ 908 $ 907 $ 1,231 $ 6,687 $ 1,487 $ 1,622 $ 1,322 $ 4,431 Interest expense, net 2,331 2,327 589 566 558 554 2
Slide 33: Non-GAAP Reconciliation
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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