ENERGY TRANSFER PARTNERS, L.P.

Transcription

1 ENERGY TRANSFER PARTNERS, L.P. Analyst Day Presentation November 18, 2014

2 LEGAL DISCLAIMER This presentation relates to a meeting among members of management of Energy Transfer Partners, L.P. (ETP) and Energy Transfer Equity, L.P. (ETE) and analysts/investors to be held in Dallas, Texas on Tuesday, November 18, At this meeting, members of management may make statements about future events, outlook and expectations related to ETE, ETP, Sunoco LP (SUN), Regency Energy Partners LP (RGP), Sunoco Logistics Partners L.P. (SXL) and Panhandle Eastern Pipe Line Company, LP (PEPL) (collectively, the "Partnerships") and their subsidiaries and this presentation may contain statements about future events, outlook and expectations related to the Partnerships and their subsidiaries all of which statements are forward-looking statements. Any statement made by a member of management of the Partnerships at this meeting and any statement in this presentation that is not a historical fact will be deemed to be a forward-looking statement. These forward-looking statements rely on a number of assumptions concerning future events that members of management of the Partnerships believe to be reasonable, but these statements are subject to a number of risks, uncertainties and other factors, many of which are outside the control of the Partnerships. While the Partnerships believe that the assumptions concerning these future events are reasonable, we caution that there are inherent risks and uncertainties in predicting these future events that could cause the actual results, performance or achievements of the Partnerships and their subsidiaries to be materially different. These risks and uncertainties are discussed in more detail in the filings made by the Partnerships with the Securities and Exchange Commission, copies of which are available to the public. The Partnerships expressly disclaim any intention or obligation to revise or publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise. All references in this presentation to capacity of a pipeline, processing plant or storage facility relate to maximum capacity under normal operating conditions and with respect to pipeline transportation capacity, is subject to multiple factors (including natural gas injections and withdrawals at various delivery points along the pipeline and the utilization of compression) which may reduce the throughput capacity from specified capacity levels. 2

3 AGENDA Partnership Update Commercial Update / Growth Initiatives Analyst Day 2014 Finance Outlook 3

4 PARTNERSHIP UPDATE

5 THE FUTURE OF ETP IS SOLID One of the largest integrated midstream energy MLPs, with a market cap of $23.1 billion and enterprise value of $37.3 billion (1) Diverse portfolio of cash flow sources and assets $1.00 $0.98 $0.96 Quarterly Distribution Growth ($ per unit) Well-positioned to benefit from changes in natural gas and NGL supply/demand fundamentals Clear visibility to solid growth from ramp-up in volumes from expansion projects $0.94 $0.92 $0.90 $0.88 $0.86 More than $11 billion of additional organic growth projects will deliver strong incremental distributable cash flow into the future Five consecutive quarters of distribution increases / growth expected to continue, while managing our coverage ratio to ~1.05x 2,500 2,000 $0.84 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Distributable Cash Flow ($ in billions) 1,500 1, (1) As of 11/10/ LTM 5

6 AS THE PARTNERSHIP STRENGTHENS ITS LEADERSHIP POSITION IN THE U.S. ENERGY VALUE CHAIN Our platform extends across the energy value chain as we continue to build critical mass where we operate, developing new take away capacity, extending the vertical chain from the wellhead to new emerging markets We are rapidly increasing our presence in the Eagle Ford, Marcellus, Bakken, Permian, and other prolific basins We are rapidly becoming a leader in the export of hydrocarbons, with natural gas exports to Mexico, waterborne NGL export projects and through our participation in the Lake Charles LNG project Our crude oil platform, Sunoco Logistics, operates one of the fastest-growing crude, NGL and products pipeline systems in the U.S., with expansion projects under way in West Texas, Gulf Coast, Marcellus and other regions Our wholesale and retail fuel business, Sunoco LP and legacy Susser Holdings/Sunoco Inc., represent one of the leading wholesale motor fuel distribution and retail sales platforms in the U.S. 6,600 owned, operated or branded retail stores and more than 7.8 billion gallons of gasoline distributed annually (1) (1) As of 10/01/14, pro forma for Aloha acquisition 6

7 WE HAVE ASSEMBLED A NATIONWIDE FOOTPRINT THAT PROVIDES UNIQUE VALUE CREATION OPPORTUNITIES More than 43,000 miles of natural gas, natural gas liquids ( NGL ), crude and refined product pipelines Bakken More than 5.5 Bcf/d of natural gas processing, treating and conditioning facilities Marcellus 251 Mbbl/d of fractionation capacity More than 175 Bcf of natural gas storage Permian Eagle Ford Haynesville More than 50 MMbbl of NGL storage Energy Transfer Partners Asset Overview ETP Assets SXL Assets Retail Locations (1) Includes Distributers, Dealers, and Co-ops Announced Energy Transfer Projects Dakota Access Pipeline Crude Conversion Pipeline Lone Star Express Pipeline Rover Pipeline Marcus Hook Eagle Point Nederland Lake Charles LNG (1) Represents combined ETP and Sunoco LP retail locations PF for Aloha acquisition 7

8 THE ETP GROWTH MODEL AT WORK Approximately $21 Billion Invested in M&A and Organic Projects Since 2011 Alone 8

9 THE COMBINATION OF KEY M&A TRANSFORMING ETP INTO A DIVERSIFIED ENERGY PARTNERSHIP Became public company through reverse merger with Heritage Propane Acquired Texas Utilities Fuel Company (TUFCO) Acquired Houston Pipeline Company Acquired Transwestern Pipeline Company ETP (70%) and Regency (30%) acquired Louis Dreyfus Highbridge Energy, form Lone Star NGL JV ETE acquired Southern Union (SUG), ETP acquired interest in Citrus - owns Florida Gas ETP acquired Sunoco, Inc., including GP, IDRs and 32.4% of LP interests in SXL ETP and ETE formed ETP Holdco (SUG and Sunoco retail assets) Contribution of Heritage Propane to AmeriGas ETP acquired ETE s interest in ETP Holdco Sale of LDC assets to Laclede Contribution of SUGS to Regency Exchanged million ETP units owned by ETE for economics of 50% of SXL GP/IDRs / retired ETP units Have monetized APU units over time / full exit of propane business ETP acquired Susser Holdings, including GP, IDRs and 50% of LP interests in Susser Petroleum Partners LP Exchanged million ETP units owned by ETE for Trunkline LNG Company, LLC (import facility) / retired ETP units 9

10 AND ORGANIC GROWTH CONTINUING TO GIVE ETP A FOOTHOLD IN PROLIFIC PRODUCING BASINS Completed first 42 gas pipeline in Texas 242 miles Cleburne to Carthage Expanded Godley plant to 400 MMcf/d Eight 36 and 42 gas pipelines totaling 419 miles serving Barnett Shale, Bossier Sand Expanded Godley plant to 600 MMcf/d Midcontinent Express JV 500-mile, 36 and 42 gas pipeline serving Woodford & Barnett Shale Phoenix Lateral (Transwestern) 260-mile, 36 and 42 gas pipeline Texas Independence Pipeline 148-mile, 42 gas pipeline serving Barnett Shale Fayetteville Express Pipeline 185- mile, 42 gas pipeline serving Fayetteville Shale Tiger Pipeline mile, 42 gas pipeline serving Haynesville Shale Dos Hermanas Pipeline 50- mile, 24 gas pipeline ETP enters the Eagle Ford Shale Chisholm Pipeline 83- mile, 20 pipeline to ETP s La Grange Processing Plant Rich Eagle Ford Mainline (REM) Phase I mile, 30 pipeline to Chisholm Pipeline 43-mile Freedom and 93-mile Liberty NGL Pipelines Chisholm Plant, Kenedy Plant & REM Phase II 70-mile, 42 gas pipeline, expands Eagle Ford infrastructure Lone Star West Texas Gateway 570-mile, 16 NGL pipeline from W. Texas to Jackson County Lone Star Frac I at Mont Belvieu 100,000 Bbl/d fractionator ETP Justice Pipeline 130- mile, 20 NGL pipeline from Jackson County to Mont Belvieu Jackson Plant in Jackson County, TX Now 800 MMcf/d Godley Plant expanded to 700 MMcf/d Lone Star Fractionator II 100,000 Bbl/d fractionator at Mont Belvieu Rich Eagle Ford Mainline (REM) expanded to 1 Bcf/d Rebel Plant sets the stage for ETP growth in the Permian Rio Bravo Crude Conversion Converted 84 miles of gas pipelines to crude service Edinburg Extension & Nueces Crossover Mexico export projects (Q4 2014) 10

11 HAS PROVIDED ETP WITH A STRONG, DIVERSE ASSET BASE THAT HAS DRIVEN STEADY GROWTH Adjusted EBITDA by Operating Segment Interstate Intrastate Midstream Liquids Trans. & Svcs. Retail Marketing Crude / Refined Products Propane All other $5,000 $4,533 $4,000 $3,953 5% 7% 21% 22% ($ million) $3,000 $2,000 $1,000 $1,475 $1,541 18% 18% 14% 21% $1,781 12% 7% 22% $2,744 5% 8% 4% 8% 17% 22% 8% 9% 12% 12% 12% 12% 12% 11% 52% 46% 37% 37% 32% 25% $0 16% 14% 21% LTM 11

12 COMMERCIAL UPDATE / GROWTH INITIATIVES

13 INTRODUCTION

14 ENERGY TRANSFER ASSETS 14

15 ETP GROWTH DRIVERS Mexico Export Projects Mariner South Under Evaluation Under Development Lone Star Frac III REM Plant II East Texas Plant Lone Star Express Pipeline Rover Pipeline Dakota Access & Trunkline Crude Conversion Project Lake Charles LNG Facility Gas processing opportunities Utica, Marcellus, Permian and Eagle Ford Basins Additional fractionation capacity Natural gas export opportunities LPG export opportunities 15

16 WE CONTINUOUSLY EVALUATE OUR ASSETS TO ENSURE THEY ARE BEING PUT TO OPTIMAL USE Repurposing Projects ETP Pipelines Rio Bravo Crude Pipeline Energy Transfer Crude Oil Pipeline Mariner West Transwestern NGL Conversions Trunkline Liquefaction Mariner East Mariner South Lake Charles LNG 16

17 MIDSTREAM GROWTH INITIATIVES

18 MIDSTREAM Interstate ASSETS Pipeline Assets ~6,500 miles of gathering pipelines with over 2 Bcf/d of processing capacity 18

19 MIDSTREAM HIGHLIGHTS The Midstream Segment is expected to be a strong and growing contributor to our business over the next several years as more than $4.2 billion of growth projects placed in service over the past several years ramp up to full capacity ETP is now one of the largest natural gas gatherers and processors in the Eagle Ford Our multi-year Eagle Ford build-out continues to grow with the addition of new processing plants And with the Rebel Plant recently placed in service, we are excited about our growth plans in West Texas Projects placed in service have been underpinned by long-term, fee-based contracts Most contracts are 10 years or more in duration Synergistic revenues with ETP downstream assets The majority of ETP s processed volumes are transported and fractionated by Lone Star NGL A large percentage of our plant residue volumes are delivered into ETP intrastate pipelines 19

20 WTI BREAKEVEN PRICE FOR 15% AFTER-TAX IRR ASSUMES NATURAL GAS AT $4.00/MMBTU $ $90.00 $80.00 $76/bbl Current Price $70.00 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 $- Wall Street Research Energy Transfer G&P Areas 20

21 EAGLE FORD AND EAGLEBINE FEE-BASED VOLUMES CONTINUE TO RAMP UP Processed volumes increased by over 500 MMcf/d from 2013 to 2014 Expect processed volumes to increase 400 MMcf/d by the end of 2015 Eagle Ford and Eaglebine processing capacity now exceeds 1.4 Bcf/d With the new plant expansions, processing capacity will exceed 1.8 Bcf/d REM Eagle Ford II - Expected in-service mid 2015 East Texas - Expected in-service Q Total gathering capacity now exceeds 2 Bcf/d 21

22 JACKSON PLANT COMPLEX (4 200 MMCF/D TRAINS) 22

23 PERMIAN BASIN EXPANSION Rebel processing plant placed in-service July 2014 Expect plant to be at full capacity of 180 MMcf/d by Q Gathering capacity expanding to 700 MMcf/d Expect additional processing capacity to be announced in the near future Andrews Ector Odessa Midland Midland Martin Big Spring 6 16 Howard Glasscock Residue Outlets ETC-NTP 36 Lone Star Gateway Mitchell Sterling Synergistic ties to ETP s downstream assets Lone Star NGL Crane Upton Reagan ET Fuel Intrastate Rebel system built in the heart of the prolific Permian Basin Rebel System Plant SXL Permian Express II Project ETC Pipelines Rebel System SXL Permian Express II Extension Lone Star NGL Rebel-Lone Star NGL SXL Crude Oil Major Railroad Lines 23

24 LONE STAR NGL UPDATE

25 Lone Star NGL Asset Overview LONE STAR NGL ASSETS NGL Storage ~53 million barrels NGL storage Permitted to drill additional 8 caverns Pipeline Transportation 2,000+ miles of NGL Pipelines ~ 400 Mbpd of raw make transport capacity Expanding capacity to 700 Mbpd 210 Mbpd LPG export terminal 80 Mbpd of Diluent export capacity Extensive Houston Ship Channel pipeline network Fractionation and Processing Two 100,000 Bpd fractionators at Mont Belvieu Third Fractionator (Dec 2015) Ability to build a total of 6 Mont Belvieu fractionators on current footprint Baden Godley LaGrange/Chisholm Mt Belvieu Geismar Sea Robin Sorrento Hattiesburg Chalmette Refinery Services Two cryogenic processing plants 25,000 Bpd fractionator at Geismar, LA Raw make truck rack Kenedy Jackson Existing Lone Star Lone Star West Texas Gateway Expansion ETP-Copano Liberty JV ETP Justice ETP Spirit ETP Freedom Approved Lone Star Express Storage Fractionation Plant 25

26 LONE STAR NGL HIGHLIGHTS Announced Projects Lone Star Express NGL Pipeline Conversion of existing 12 NGL line to crude oil service Fractionator III Mariner South expected in-service by year end Volume Growth Volumes transported are up over 25% year over year Fractionated volumes are up over 129% year over year Future Opportunities Footprint for Fractionators IV, V & VI Expansion of NGL export capacity Continued development of Houston ship channel NGL distribution system Development of 8 additional NGL storage caverns 26

27 OUR INTEGRATED ASSETS ALLOW FOR NUMEROUS SYNERGIES ACROSS THE FAMILY Lone Star West Texas Pipeline 12 (140 Mbpd) ETP Godley 1, 2, 3, 5 RGP Red Bluff RGP Mivida RGP Bone Spring Lone Star West Texas NGL RGP Jal RGP Waha RGP Coyanosa RGP Keystone RGP Tippett ETP Rebel RGP Haley ETP LaGrange/Chisholm ETP Jackson 1, 2, 3, 4 ETP Freedom/Liberty (75 Mbpd) ETP Justice 20 (340 Mbpd) Lone Star Mt. Belvieu Frac (200 Mbpd) NGL Storage Capacity (50 MMbbl) Mariner South Batching C2 & C4 Capacity (200 Mbpd) Lone Star West Texas Gateway ETP Justice NGL Line ETP Kenedy ETP Plants Regency Plants ETP Freedom NGL ETP-Copano JV Liberty NGL ETP Spirit NGL Lone Star West Texas Gateway 16 (210 Mbpd) Connected Plants Lone Star Fractionators Other Fractionators 27

28 LONE STAR EXPRESS NGL PIPELINE & CONVERSION OF EXISTING 12 NGL LINE TO CRUDE OIL SERVICE 533 miles of new 24 and 30 NGL pipelines from the Permian Basin to Mont Belvieu Capacity: 24 Pipeline Mbpd 30 Pipeline Mbpd Contracted volumes in excess of 200 Mbpd Conversion of Lone Star s existing West Texas 12 NGL line to crude oil service Baden Expected In-Service: Phase I 24 Q Phase II 30 Q Phase III Crude Oil Conversion Q Mont Belvieu Estimated cost - $1.5 to $1.8 billion Lone Star Express Pipeline Existing Lone Star NGL Y-Grade Pipeline 12 Conversion to Crude Service 28

29 LONE STAR S MONT BELVIEU COMPLEX FRAC III TO BE IN-SERVICE DECEMBER 2015 Potential site for Fracs IV, V, VI Frac I 100 Mbpd Dec 12 Frac II 100 Mbpd Oct 13 Frac III 100 Mbpd Dec 15 De-C2 100 Mbpd Nov 14 29

30 MARINER SOUTH - EXPECTED IN-SERVICE BY YEAR END Joint project between SXL and Lone Star Will integrate SXL s existing Nederland terminal and pipeline with Lone Star s Mont Belvieu fractionation and storage facilities Creates a world-class LPG export/import operation in the Gulf Coast Capacity of ~200 Mbpd batching propane and butane Nederland Terminal will provide 24-hour ship access in the Gulf Coast with a load rate of up to 30,000 barrels/hr Supported under long-term, fee-based contract Mont Belvieu Facilities Nederland Terminal 30

31 MARINER SOUTH NEDERLAND TERMINAL 31

32 ETP LIQUIDS TRANSPORTATION & SERVICES GROWTH INITIATIVES

33 BAKKEN CRUDE OIL PIPELINE Originates in the Bakken/Three Forks production area and will deliver in excess of 450 Mbpd to the Patoka Hub in Illinois Delivery points include up to 3 terminal interconnections at the Patoka Hub, one rail terminal interconnect and interconnection with ETCO (Trunkline conversion) Interconnects with SXL and P66 at Nederland 1,124 miles of new 30 Patoka Expected to be in-service in Q Total cost of the combined projects is expected to be approximately $4.8 - $5.0 billion P66 equity partner for 25% Trunkline Conversion 754 miles of 30 to crude service Nederland Supported by long-term fee based contracts Delivery Points 33

34 SEPARATE GROWTH OPPORTUNITIES Rail Deliveries to East Coast Local Transportation Service in North Dakota Using DAPL Assets Powder River Basin Extension DJ Basin / Niobrara Lateral Canadian Bakken North Dakota Bakken Oil & Gas Gathering Truck Loading/Unloading, Stabilization, Vapor Recovery Patoka Receipts for Delivery to Nederland 34

35 RIO BRAVO CRUDE PIPELINE Conversion of 84 miles of gas pipelines to crude/ condensate service In-service October 2014 Capacity Lease Agreement Leased 100% of system to Trafigura Mbpd 10-year agreement with renewal option Gas Pipeline Revenue Retained gas transport revenue 35

36 INTERSTATE GROWTH INITIATIVES

37 INTERSTATE PIPELINE ASSETS 1 Transwestern Trunkline Fayetteville Express Tiger Florida Gas Transmission Sea Robin ~17,500 miles of Interstate pipelines with over 15 Bcf/d of throughput capacity 37

38 INTERSTATE PIPELINE BACKHAUL OPPORTUNITIES AWAY FROM TRADITIONAL MARKETS Current Flow Potential Flow 38

39 INTERSTATE HIGHLIGHTS Our Interstate pipelines provide: Diversity - access to multiple shale plays, storage facilities and markets Stability - nearly 90% of revenue is derived from fixed reservation fees Growth Opportunity - well-positioned to capitalize on changing supply and demand dynamics Transwestern s outlook has strengthened over the past year due to several factors, including: Moderate increase in demand due to coal-fired generation and San Onofre nuclear retirements and expected increase in demand for gas-fired power generation in California due to drought-impacted hydroelectric output from the Northwest Expanded capacity to serve summer load near Phoenix Attractively priced Mid-Continent and San Juan natural gas supplies Both our Fayetteville Express and Tiger pipelines continue to perform under their longterm contracts 92.5% of FEP capacity is contracted through 2020 and 100% of Tiger is contracted through Florida Gas Transmission remains one of our top performing assets Have now contracted approximately 90% of Phase VIII capacity under long-term agreements averaging 25 years 39

40 MARCELLUS/UTICA ROVER PIPELINE BCF/D FULLY CONTRACTED Sourcing natural gas from the Marcellus and Utica shales Connectivity to numerous markets in the U.S. and Canada Expected in-service: December 2016 to Defiance and mid-2017 to Dawn ~800 miles of new pipeline with capacity of 3.25 Bcf/d Cost $3.8 $4.4 billion 20% interest equity partner / additional equity partner option expires January 2015 ETP will own no less than 65% and will build and operate the pipeline Midwest Hub Dawn 40

41 INTRASTATE GROWTH INITIATIVES

42 Interstate Pipeline Assets INTRASTATE PIPELINE ASSETS Houston Pipeline ET Fuel Oasis Katy Over 7,700 miles of intrastate pipelines ~14 Bcf/d of throughput capacity ~74 Bcf of owned storage capacity 42

43 INTRASTATE HIGHLIGHTS - TURNING THE CORNER While our Intrastate Segment has been challenged these past several years, we believe the downward trend in EBITDA is largely behind us and expect a flattening to upward trend over the next months The majority of contract roll-offs across our system are expected to renew at similar levels, and we expect the ramp-up in volumes from the Woodford and Permian to offset declines in the Barnett Natural gas volumes continue to grow in the Eagle Ford and Permian as producers maintain active wet gas and crude oil drilling programs Our Intrastate Segment is well-positioned to capture additional revenues from anticipated changes in natural gas supply and demand in the next five years Our intrastate network is a cohesive, integrated system with bi-directional flow capabilities, which allows for natural gas delivery to multiple destinations from numerous basins and receipt points Exports to Mexico are expected to require approximately 4.5 Bcf/d of U.S. natural gas by 2016 LNG project development along the Gulf Coast could require between Bcf/d of incremental capacity by 2017 to 2019 Petrochemical development in Texas and Louisiana is expected to create additional demand for natural gas along the Gulf Coast 43

44 MEXICO PROJECTS UNDER DEVELOPMENT Edinburg Extension 24 miles of 24 intrastate pipeline expansion connecting HPL to Mexico ETP ownership of ~1.5 miles of pipeline and meter station across the border of Mexico Capacity 130,000 Mcf/d 15-year contract executed with CFE Anticipated in-service December 2014 Nueces Crossover 51 miles of 36 intrastate pipeline connecting HPL to the NETmex 42 pipeline Capacity - 830,000 Mcf/d 15-year contract executed with CFE Anticipated in-service December

45 POTENTIAL MEXICO PROJECTS U.S. SIDE Waha to Mexico Pipelines Two 42 pipelines with up to 2.8 Bcf/d capacity Header system at Waha Open bid process Bids due: Dec 2014/Jan

46 MEXICO INTERIOR PROJECTS Ojinaga to El Encino 148 Miles of 42 pipeline system Total capacity of 1,356 MMcf/d delivered to EL Encino Contract term: 25 years Bids due: Oct 2014 Award date: Nov 2014 Scheduled in-service: Mar 2017 El Encino to La Laguna 254 Miles of 42 pipeline system plus 20 mile 16 pipe lateral Total capacity of 1,356 MMcf/d delivered to La Laguna Contract term: 25 years Bids due: Nov 2014 Award date: Dec 2014 Scheduled in-service: Mar

47 FINANCE UPDATE

48 WE ARE DELIVERING ON THE INVESTMENTS MADE OVER THE PAST SEVERAL YEARS Adjusted EBITDA ($ millions) Distribution / LP Unit $5,000 $4,000 Interstate Intrastate Midstream Liquids Trans. & Svcs. Retail Marketing Crude / Refined Products Propane Other $3,953 $194 $4,533 $328 $944 $1.00 $0.98 $0.96 $0.955 $0.975 $3,000 $2,000 $1,000 $1,541 $1,475 $3 $6 $270 $270 $206 $329 $1,781 $3 $222 $127 $389 $2,744 $126 $219 $109 $209 $467 $601 $871 $527 $325 $526 $351 $479 $571 $464 $507 $0.94 $0.92 $0.90 $0.88 $ $ $0.905 $0.920 $0.935 $768 $716 $667 $1,013 $1,269 $1,130 $0.86 $0 $228 $220 $ LTM 9/30/14 $0.84 Q1 Q2 Q3 Q4 Q1 Q2 Q

49 WHILE ETP HAS PERFORMED WELL AGAINST ITS PEERS SINCE IT RESUMED DISTRIBUTION GROWTH Relative Price Performance Since July 1, % ETP WPZ PAA OKS EPD EEP 130% 128% 120% 120% 115% 110% 100% 90% 101% 95% 94% 80% Jul-13 Oct-13 Jan-14 Apr-14 Aug-14 Nov-14 Source: Bloomberg as of 11/10/14 49

50 WE BELIEVE IT IS STILL UNDERVALUED GIVEN ITS PROVEN DISTRIBUTION GROWTH 14% Distribution Growth Rates ETP WPZ PAA OKS EPD EEP Distribution Growth Since Q Annualized Yield 12% 12.3% 5.0% 10% 9.1% 6.0% 8% 7.7% 7.6% 7.4% 7.1% 6.5% 3.9% 6% 4% 2% 2.1% 6.2% 0% Q Q Q Q Q Q Source: Bloomberg as of 11/10/14 50

51 AND ITS ROBUST BACKLOG OF ATTRACTIVE GROWTH PROJECTS BACKED BY LONG-TERM, FEE-BASED CONTRACTS Intrastate Midstream Interstate Liquids Transportation & Services ~$210mm capex $375mm $410mm capex $3.8bn $4.4bn capex 1 $6.9bn $7.4bn capex 1 Edinburg Extension & Nueces Crossover pipelines for exports to Mexico (Q4 2014) REM Eagle Ford Plant II (Q2 2015) East Texas Plant (Q4 2015) Volunteer Pipeline Rover Pipeline (Q Q2 2017) Lone Star Mariner South LPG Export Project (Q1 2015) Lone Star Frac III (Q4 2015) (Q4 2015) Bakken Pipeline (Q4 2016) Lone Star Express Pipeline (Q Q1 2017) Net of JV Partner Contributions, ETP Plans to Invest More Than $8 Billion on Projects Contracted at 6.0x 8.0x Multiples To Deliver More than $1 Billion of Expected Incremental Annual Cash Flow 1 Capital expenditures include 100% of joint venture projects 51

52 ETP HAS ADDITIONAL LEVERS TO DRIVE INCREMENTAL VALUE WHICH ARE NOT REFLECTED IN ITS CURRENT UNIT PRICE 67.1 million LP Units 50% GP / IDRs 15.0 million LP Units 100% GP/IDRs 40% interest in Lake Charles LNG Export Company, LLC 31.4 million LP Units 6.3 million Class F Units 33% interest in Philadelphia Energy Solutions LLC, which owns GP/IDRs of PES Logistics Partners, L.P. Significant Value is Embedded Within ETP s Interests in SXL, SUN, Lake Charles LNG, RGP and PES 52

53 WE DO NOT BELIEVE OUR BONDS REFLECT THE UNDERLYING VALUE & SECURITY OF OUR ASSETS 5.0% Yield to Maturity for Notes of Similar Maturity Since July 1, 2013 ETP WPZ PAA OKS EPD EEP 4.5% 4.0% 3.5% 3.80% 3.68% 3.57% 3.33% 3.30% 3.25% 3.0% 2.5% Jul-13 Oct-13 Jan-14 Apr-14 Aug-14 Nov-14 Source: Bloomberg as of 11/10/14 53

54 GIVEN OUR STRENGTHENING CREDIT PROFILE & DEMONSTRATED COMMITMENT TO INVESTMENT GRADE RATINGS Increased size, scale and geographic reach with ETP consolidated PP&E now $31.7 billion and consolidated LTM Adjusted EBITDA of $4.5 billion as of 9/30/14 Supported by numerous organic growth projects underpinned by long-term, fee-based contracts Significantly increased business diversity to reduce Texas natural gas basis differential concentration Exited the propane business, reduced commodity exposure and focused on fee-based contracts, which now account for greater than 80% of consolidated Adjusted EBITDA (excluding Retail and Other) Reduced Debt / EBITDA, as defined in our revolving credit facility credit agreement, from a peak of 5.10x in Q to 4.13x in Q Used more than $1.9 billion of transaction proceeds to reduce consolidated indebtedness & consistently funded growth with a balanced mix of equity and debt Completed or announced several strategic transactions to help streamline the Partnership structure and manage our credit metrics including the contribution of SUGS to Regency, the sale of the LDCs to Laclede and the consolidation of Holdco Began segregation of the Sunoco retail marketing business which, while not a single point-in-time transaction, we believe provides a sound and deliberate exit path that provides meaningful credit improvement 54

55 WE HAVE FOCUSED ON REDUCING VOLATILITY THROUGH FEE-BASED CONTRACTS & REDUCED COMMODITY EXPOSURE Intrastate Transportation & Storage Primary Revenue Mix Demand fees consisting of fixed fees for the reservation of an agreed amount of throughput capacity Transportation fees based on the actual throughput volumes Retained fuel based on a percentage of gas transported on the pipeline Natural gas storage fees % Fee-Based 70% 80% Interstate Transportation & Storage Primarily firm reservation charges based on the amount of firm capacity reserved regardless of usage 90% + Midstream Fee-based gathering, transportation, and processing contracts Some percent-of-proceeds and acreage dedication contracts along with minimal keep-whole volumes 80% + Liquids Transportation & Services Transportation revenue principally from dedicated capacity & take-or-pay contracts Storage revenue consists of both storage fees and throughput fees Fractionation fees based on throughput and recovery rates 80% 85% Retail Marketing Revenue is principally generated from the wholesale & retail sale of gasoline and mixed merchandise N/A Crude / Refined Products (SXL) Earnings are principally fee-based, derived from the transportation, terminalling, and storage of crude oil, refined products and natural gas liquids In addition, there are complimentary acquisition and marketing assets which are used to facilitate the purchase and sale of crude oil, refined products and natural gas liquids 80% + 55

56 WE MANAGE OUR LIMITED COMMODITY PRICE EXPOSURE THROUGH PRUDENT RISK MANAGEMENT POLICIES Fee-based cash flows make up a significant portion of our business Where we have commodity price exposure, we look to opportunistically hedge Commodity exposure is weighted towards C3 and C5+ Our plants have the ability to reduce ethane recoveries in an unfavorable pricing environment As of October 31, 2014, we have hedged 72% of our 2014 and 5% of our 2015 natural gas retained fuel exposure: 2014: Average hedge price of $4.08/MMbtu 2015: Average hedge price of $4.10/MMbtu As of October 31, 2014, we had 35.5 Bcf of natural gas in storage at our Bammel facility for our own account: 2015 Average Commodity Price Sensitivity Annual Contribution ($ mm) Impact of 10% Price Movement ($ mm) Commodity Exposure Average Strip Price 1 Natural Gas (MMbtu/d) 64,657 $4.02 $94.8 $9.5 Ethane (Mbpd) 0.0 $ Propane (Mbpd) 4.6 $ Iso-Butane (Mbpd) 0.7 $ Normal Butane (Mbpd) 1.3 $ Natural Gasoline (Mbpd) 2.5 $ Total $248.5 $24.8 LTM Adjusted EBITDA as of 9/30/14 $4,533.0 Annual Commodity Exposure as % of LTM Adj. EBITDA 5.5% 1 Represents average 2015 strip prices as of 11/7/14. Implies a NGL composite price of approximately $0.73 per gallon Note: Exposure is net of hedges in place as of 11/7/14 This volume has been hedged forward for the next winter withdrawal season As of October 31, 2014, we had 44% of equity NGLs hedged for 2014 Hedges were executed as purity products Our retail business has limited direct commodity exposure and benefits from declining crude oil prices 56

57 OUR UNSECURED CREDIT EXPOSURE IS SIGNIFICANTLY WEIGHTED TOWARDS INVESTMENT GRADE COUNTERPARTIES Rank Top 20 Unsecured Counterparties Internal Credit Rating 1 Unsecured Exposure ($ millions) 2 % of Total Unsecured Exposure 1 A- $ % 2 AAA % 3 BBB % 4 BBB % 5 A % 6 BBB % 7 BBB % 8 BB % 9 B % 10 A % 11 AA % 12 BB % 13 BBB % 14 BBB % 15 BBB % 16 A % 17 BBB % 18 BB % 19 BBB % 20 BBB % Top 20 $ % Total Unsecured Exposure $1,477.5 Unsecured Exposure by Rating 2 <BB, 12% AAA/AA+, 6% BB+/BB, 11% AA/A-, 29% BBB/BBB-, 24% BBB+, 18% Total = $1,477.5 million 2 Excludes Sunoco Logistics Note: As of September Includes joint ventures at 100% 1 Internal credit ratings are based upon numerous factors including financial metrics and external credit reports. While most internal ratings are consistent with credit ratings assigned by 3 rd parties, they will differ in some cases, especially where 3 rd party credit ratings have not been assigned 57

58 WE ARE SUCCESSFULLY EXECUTING ON OUR FINANCIAL GOALS & OBJECTIVES Distribution Growth Q marked the fifth consecutive increase in quarterly distributions, delivering 7.7% distribution growth over the past year Maintain a Healthy Distribution Coverage LTM distribution coverage through Q was 1.18x Our goal is to maintain at least 1.05x coverage Generate Stable Cash flow Supported by a Diverse, Fee-Based Asset Portfolio More than $1.1 billion of capital projects have been placed in-service within the past 12 months, all underpinned by long-term, fee-based projects Continued project development & contracting is consistent with our goals Committed to Investment Grade Credit Ratings Maintain Prudent Risk Management Policies Preserve Financial Flexibility Debt / EBITDA, as defined in our revolving credit facility credit agreement, was 4.13x as of 9/30/14 and trending towards our 4.0x target, consistent with our goal to maintain investment grade ratings Focused on fee-based projects with minimal commodity price exposure and hedge exposure with purity products Target a maximum of 10% 15% floating interest rate exposure and opportunistically enter in to pre-issuance hedges to mitigate a portion of future interest rate risk We plan for at least $1.0 billion of available liquidity at all times and opportunistically access the debt and equity capital markets to manage liquidity and credit metrics Our Goal is to Maintain a Mid-To-High Single Digit Annual Growth Rate for the Long-Term 58

59 AND WILL CONTINUE TO FUND OUR BUSINESS IN A PRUDENT MANNER ETP will continue to opportunistically access the capital markets to finance growth and manage credit metrics and debt maturities Consistent with past practices, we expect to fund growth ~50% equity / ~50% debt over the longterm As of 9/30/14, ETP had approximately $1.7 billion available under its $2.5 billion revolving credit facility We expect to close on the extension of the facility s maturity through November 2019 later this week ETP will utilize its At-the-Market ( ATM ) program for equity issuance needs Absent any new strategic initiatives or acquisitions, we do not currently see the need for any overnight or block equity offerings ETP will continue to manage the dropdown of its retail assets into Sunoco LP in a manner that is mutually beneficial to all parties Cash proceeds will be used to offset a portion of ETP s growth capital and debt refinancing needs 59

60 OUR LONG-TERM REFINANCING OBLIGATIONS ARE MANAGEABLE $ millions ETP Debt Maturity Profile, Excluding SXL and SUN $1,400 $1,200 $1,000 $800 $600 $400 $200 $ Note: Includes ETP, Transwestern, PEPL and Sunoco Inc. debt. Excludes our revolving credit facility and joint ventures 60

61 AND COULD PROVIDE INCREMENTAL CASH FLOW BENEFITS IN THE CURRENT RATE ENVIRONMENT Indicative New Issue Rates 30-Year 10-Year 5-Year Wtd Avg Rate of Maturities 9.1% Debt by Interest Rate Type (net of swaps) Floating, 4.9% 6.9% 6.8% ~5.5% 5.5% 6.0% ~4.4% ~3.3% Fixed, 95.1% Total = $13.8 billion, excluding revolver ETP currently has forward starting swap locks for $200 million of anticipated issuance per year in We do not anticipate any material changes to our swap portfolio in the near term Note: As of 9/30/14. Includes ETP, Transwestern, PEPL and Sunoco Inc. debt. Excludes our revolving credit facility and joint ventures 61

62 SUNOCO LP UPDATE Having closed on the acquisition of Susser Holdings on August 29, ETP's intent is to migrate the entire retail business into Sunoco LP in a series of dropdowns for newly issued SUN common units and cash The first dropdown closed in early October and we are currently working on the second dropdown The remaining dropdowns are expected to be completed in a disciplined manner over the next several years Non-qualifying income is expected to be dropped into Propco, a wholly owned c-corp under Sunoco LP Positioning SUN for long-term success is our #1 priority and the ETP and SUN management teams will take a thoughtful and balanced approach to funding the remaining dropdowns While SUN expects to access the debt and equity capital markets from time to time, ETP is expected to take back a meaningful amount of SUN limited partner units as consideration for a portion of the dropdowns As previously mentioned, ETP does anticipate proposing an exchange transaction with ETE whereby the GP/IDRs of SUN would be transferred to ETE in exchange for ETP units held by ETE This exchange transaction, expected to take place in late 2015 or early 2016, is expected to be similar to the exchange transaction whereby ETP transferred 50% of the GP/IDRs of SXL to ETE in exchange for ETP units owned by ETE 62

63 APPENDIX

64 ENERGY TRANSFER PARTNERS, L.P. NON-GAAP RECONCILIATIONS Twelve Months Ended December 31, ($MM) Q14 (1) LTM (1) Net income $ 791 $ 617 $ 697 $ 1,648 $ 768 $ 447 $ 1,046 Interest expense, net of interest capitalized Gain on deconsolidation of Propane Business (1,057) Gain on sale of AmeriGas common units (87) (14) (177) Income tax expense (benefit) from continuing operations Depreciation and amortization , ,091 Non-cash compensation expense (Gains) losses on interest rate derivatives (40) (5) 77 4 (44) Unrealized (gains) losses on commodity risk management activities (31) (51) (16) 8 Impairment Loss Loss on extinguishment of debt LIFO valuation adjustments (3) Non-operating environmental remediation Equity in earnings of unconsolidated affiliates (21) (12) (26) (142) (172) (69) (240) Adjusted EBITDA related to unconsolidated affiliates Other, net Adjusted EBITDA (consolidated) 1,475 1,541 1,781 2,744 3,953 1,172 4,533 Adjusted EBITDA related to unconsolidated affiliates (43) (35) (56) (480) (629) (163) (684) Distributions from unconsolidated affiliates Interest expense, net of interest capitalized (395) (412) (474) (665) (849) (212) (865) Amortization included in interest expense (9) (10) (10) (35) (80) (14) (65) Current income tax (expense) benefit from continuing operations (1) (10) (15) (1) (49) (6) (337) Income tax expense related to the Lake Charles LNG Transaction Maintenance capital expenditures (103) (99) (134) (313) (343) (98) (305) Other, net 3 (1) (1) 2 Distributable Cash Flow (consolidated) 951 1,006 1,147 1,515 2, ,943 Distributable Cash Flow attributable to Sunoco Logistics (100%) (163) (660) (194) (730) Distributions from Sunoco Logistics to ETP Distributable Cash Flow attributable to Sunoco LP (100%) (4) (4) Distributions from Sunoco LP to ETP Distributions to ETE in respect of Holdco (75) (50) - - Distributions to Regency in respect of Lone Star - - (52) (63) (87) (43) (138) Distributable Cash Flow attributable to the partners of ETP $ 951 $ 1,006 $ 1,095 $ 1,255 $ 1,878 $ 610 $ 2,340 (1) Not pro forma for MACS dropdow n 64

65 ETP CAPEX SUMMARY Full Year Full Year ($mm) Low High Low High Growth Capex Direct Midstream $750 $850 $350 $400 Liquids transportation and services ,500 2,600 Interstate transportation and storage ,300 1,500 Intrastate transportation and storage Retail marketing All other Total Direct $1,630 $1,855 $4,390 $4,805 Indirect Investment in Sunoco Logistics $2,400 $2,600 $1,900 $2,100 Investment in Sunoco LP Total Indirect $2,455 $2,670 $2,050 $2,300 Total $4,085 $4,525 $6,440 $7,105 Maintenance Capex Direct Midstream $10 $15 $10 $15 Liquids transportation and services Interstate transportation and storage Intrastate transportation and storage Retail marketing All other (including eliminations) Total Direct $240 $280 $275 $325 Indirect Investment in Sunoco Logistics $65 $75 $75 $85 Investment in Sunoco LP Total Indirect $65 $80 $90 $110 Total $305 $360 $365 $435 Contributions from Regency for Lone Star $95 $110 $350 $400 Note: ETP capex represented at 100% of project costs 65