Enterprise Products Partners L.P. Midwest Marketing June 28 29, 2010

Transcription

1 Enterprise Products Partners L.P. Midwest Marketing June 28 29, 2010 All rights reserved. Enterprise Products Partners L.P.

2 Forward Looking Statements This presentation contains forward-looking statements and information 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 anticipate, project, expect, plan, seek, goal, estimate, forecast, intend, could, should, will, believe, may, potential, and similar expressions and statements regarding the plans and objectives of Enterprise for future operations, are intended to identify forwardlooking statements. Although Enterprise and its general partner believe that such expectations reflected in such forward-looking statements are reasonable, neither it nor its general partner can give assurances that such expectations will prove to be correct. Such statements are subject to a variety of risks, uncertainties and assumptions. If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those Enterprise anticipated, estimated, projected or expected. Among the key risk factors that may have a direct bearing on Enterprise s results of operations and financial condition are: Fluctuations in oil, natural gas and NGL prices and production due to weather and other natural and economic forces; A reduction in demand for its products by the petrochemical, refining or heating industries; The effects of its debt level on its future financial and operating flexibility; A decline in the volumes of energy commodities delivered by its facilities; The failure of its credit risk management efforts to adequately protect it against customer non-payment; Actual construction and development costs could exceed forecasted amounts; Operating cash flows from our capital projects may not be immediate; National, international, regional and local economic, competitive and regulatory conditions; Terrorist attacks aimed at its facilities; and The failure to successfully integrate its operations with assets or companies, if any, that it may acquire in the future. The foregoing discussion of important factors may not be all-inclusive and Enterprise provides additional cautionary discussion of risks and uncertainties under the captions Risk Factors and Management s Discussion and Analysis of Financial Condition and Results of Operations contained in its recent filings with the U.S. Securities and Exchange Commission. You should not put undue reliance on any forward-looking statements. All forward-looking statements attributable to Enterprise or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements contained herein, in such filings and in its future periodic reports filed with the U.S. Securities and Exchange Commission. Enterprise has no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. All rights reserved. Enterprise Products Partners L.P. 2

3 Leading Business Positions Across Midstream Energy Value Chain Midstream Energy Services Natural Gas Natural Gas Pipelines Storage Natural Gas Pipelines Natural Gas Pipelines Natural Gas Gas Processing Mixed NGLs Ethane Propane Butane Iso-Butane Crude Oil Mixed NGLs Pipelines NGL Fractionation Nat. Gasoline Storage NGL Pipelines Trucks Barges Barges Crude Oil Pipelines Storage Storage Refined Products Pipelines Earn fees at every link of the value chain Crude Oil Refining All rights reserved. Enterprise Products Partners L.P. 3

4 EPD Portfolio of Integrated Assets 49,100 miles of natural gas, NGL, crude oil, refined products and petrochemical pipelines 190 MMBbls of NGL, refined products and crude oil storage capacity 27 Bcf of natural gas storage capacity 25 natural gas processing plants Asset Overview 18 fractionation facilities 6 offshore hub platforms NGL import / export terminals Butane isomerization complex Octane enhancement facility One of the largest inland tank barge companies in U.S. All rights reserved. Enterprise Products Partners L.P. 4

5 Geographic and Business Diversification Provide Multiple Earnings Streams $2.9 Billion Gross Operating Margin LTM Ended March 31, 2010 Approx. 70% Fee Based 59% 16% 5% 13% 7% NGL Pipelines & Services (59%) Natural gas processing & related NGL marketing activities NGL fractionation plants NGL import / export terminals NGL pipelines and storage Onshore Natural Gas Pipelines & Services (16%) Natural gas pipelines & related marketing Natural gas storage facilities Petrochemical and Refined Products & Services (13%) Refined products and petrochemical pipelines Butane isomerization facilities Propylene fractionation facilities Octane enhancement facility Marine terminals & transportation Onshore Crude Oil Pipelines & Services (5%) Crude oil pipelines, storage terminals & related marketing Offshore Pipelines & Services (7%) Natural gas pipelines Crude oil pipelines Platform services All rights reserved. Enterprise Products Partners L.P. 5

6 Record Operating Performance (1) Onshore & Offshore Natural Gas Pipeline Volumes ,200 4,000 NGL, Crude Oil, Petrochemical & Refined Products Pipeline Volumes 3,990 4,070 TBtu/d MBPD 3,800 3,600 3,574 3, Offshore 3,400 3,406 MBPD Onshore Q 2010 NGL / Propylene Fractionation & Butane Isomerization Volumes MBPD 3, Q 2010 Equity NGL Production Q 2010 (1) Recast to include TEPPCO for all periods Q 2010 All rights reserved. Enterprise Products Partners L.P. 6

7 Drives Strong Financial Results $ Billions $3.5 $3.0 $2.5 $2.0 Growth Capital Investment (1) $3.1 $2.8 $2.8 $2.0 $1.7 $ Billions $3.0 $2.5 $2.0 $1.5 $1.0 Gross Operating Margin $2.0 $1.8 $2.8 $2.6 $0.8 $ Billions $3.0 $2.5 $2.0 $1.5 $1.0 $1.7 Adjusted EBITDA $2.7 $2.5 $2.0 $0.8 $1.5 $0.5 $0.5 $ Billions $1.0 $2.0 $0.0 Forecast Q 2010 Distributable Cash Flow $1.6 $2.27 $2.25 $2.20 $1.5 $1.4 $2.08 $2.00 $1.95 $1.0 $1.0 $1.0 $1.83 $1.75 $0.6 $0.5 $1.50 $0.0 $ Q Q 2010 Annualized (1) Represents cash used in investing activities, excluding changes in restricted cash. Distributions Declared $2.50 Distributions Declared $ Millions $0.0 $350 $300 $250 $200 $150 $100 $50 $ Q 2010 Retained DCF / Coverage $ x $ x $ x $98 1.1x $26 1.0x Q 2010 All rights reserved. Enterprise Products Partners L.P. 7

8 Major Growth Projects Completed $ in millions (1) Project Description Q10 2Q10 3Q10 4Q Sherman Extension Natural Gas Pipeline 542 Meeker Processing Plant #2 506 Marathon Gathering System Piceance Basin Phase Shenzi Oil Pipeline 156 Petal Gas Storage Additional Compression 68 Collbran Valley Pipeline 63 Marine Barge Acquisition (4 barges) 42 Norco-Garyville Pipeline Expansion 38 Eagle Ford White Kitchen Lateral Segments # Hutchinson Rail Rack & NGL Storage Expansion 23 Mont Belvieu Well Utilization Program 231 Approx. $1.6B Motiva Refined Products Terminal 330 Eagle Ford Main Line Expansion - Segment #1 42 Lou-Tex 12" NGL Pipeline Expansion 26 Trinity River Basin Lateral (partial service 4Q 2009; fully completed 3Q 2010) 276 Eagle Ford White Kitchen Lateral Segment #4 21 Approx. $0.9B Haynesville Acadian Extension Pipeline 1,555 Eagle Ford Crude Oil Pipeline 484 Mont Belvieu NGL Fractionator 261 Anaconda Gas Pipeline Expansion 143 Wilson Gas Storage Expansion #5 (5 Bcf) 116 Motiva Refinery Propane & Butane Connections 88 Conversion of Petal Storage Cavern to Natural Gas 59 Approx. $2.7B (1) Includes capitalized interest. more under construction All rights reserved. Enterprise Products Partners L.P. 8

9 Visibility to EPD Growth Barnett Full year benefit from Sherman Extension pipeline Completion of Trinity River Lateral pipeline (expected in service July 2010) Haynesville Acquisition of M2 Momentum assets and platform from which to accelerate growth in providing gathering and treating services Haynesville Extension pipeline expected in service in 3Q 2011 Haynesville Extension is catalyst for new contracts to serve industrial markets in S. Louisiana Eagle Ford Build / expand rich and lean natural gas, crude oil and condensate pipelines, natural gas processing plants and NGL fractionators Expand Wilson natural gas storage facility Petrochemical preference for NGLs vs. Crude Oil derivatives Build / expand NGL fractionators and distribution pipelines Contracts to supply NGLs Integration of TEPPCO s refined product and crude oil businesses Active marketing to increase asset utilization All rights reserved. Enterprise Products Partners L.P. 9

10 Haynesville Shale All rights reserved. Enterprise Products Partners L.P.

11 Haynesville Shale Extension of Acadian Gas Pipeline Industry sources estimate potential to cover 2 million acres 200 Tcf of reserves IP rates high as 30 MMcf/d Haynesville Extension pipeline project 270-mile, 42 / 36 pipeline with approximately 1.8 Bcf/d of capacity; can be expanded to 2.1 Bcf/d Total cost of approximately $1.56 billion Provides access to industrial and utility markets on Acadian System, Henry Hub and 9 interstate pipelines, including FGT and Sonat Executed agreements for up to approximately 1.8 Bcf/d of firm capacity to date 100% of steel price for pipe locked-in Substantially all survey and title work completed on R-O-W Expected in service 3Q 2011 Pipeline Interconnects Acadian TETCO FGT TGC ANR Transco Cypress Tennessee Texas Gas Columbia Gulf Sonat Source: PIRA All rights reserved. Enterprise Products Partners L.P. 11

12 Haynesville Shale $1.2B Acquisition of M2 Midstream Assets Transaction Overview Closed effective May 1, 2010 Immediately provides EPD with an excellent footprint from which to grow a natural gas gathering business in core area of Haynesville / Bossier shale play Provides capital and operating efficiencies for additional gathering systems in development Synergies with Haynesville Extension State Line System Provides significant position in core area of Haynesville / Bossier play in LA and TX 138 miles of pipe; 400 MMcf/d capacity Provides CO 2 & H 2 S treating services Expansion to 700 MMcf/d in June 2010 Planned interconnect with Haynesville Extension in 3Q 2011 will allow additional expansion to 1.2 Bcf/d for $26 million Fairplay System Provides access to Cotton Valley production and Haynesville / Bossier shale acreage in TX Plan to interconnect with Enterprise Texas natural gas pipeline in 1Q 2011 Provides potential NGL volume growth for EPD s Mont Belvieu complex 249 miles of pipe; 285 MMcf/d system capacity 30 different producers on system All rights reserved. Enterprise Products Partners L.P. 12

13 Eagle Ford Shale All rights reserved. Enterprise Products Partners L.P.

14 Eagle Ford Shale Overview Eagle Ford has a broad range of potential at depths ranging from 4,000 14,000 feet Rich gas Lean gas Gas condensate Crude oil Potential resource: 51 Tcf gas; 5.4 BBbls of crude / condensate; 4.5 BBbls of NGLs Producers ramping up rigs for 2010: 77 rigs now drilling Eagle Ford 110 producing wells drilled with another 100+ in various stages of drilling and completion Current Eagle Ford production about 250 MMcf/d; crude / condensate about 15 MBPD GPM range , Btu from 980 to 1,300 and Crude gravity range $3.00 breakeven gas price on rich gas wells on an estimated well completion cost of $4 million; crude price is driving development More than 4.6 million acres currently under lease Source: PIRA All rights reserved. Enterprise Products Partners L.P. 14

15 Eagle Ford Shale Multiple Expansion Opportunities Eagle Ford ( EF ) has broad range of potential at depths ranging from 4,000 14,000 feet Rich and lean gas / condensate / crude oil Average 4 9 gallons of NGLs per Mcf of gas in the rich area Current EF production about 250 MMcf/d; crude and condensate about 15 MBPD Breakeven gas price of $3.00 on rich gas wells EF-related expansion projects Completed natural gas pipeline segments #1 3 of White Kitchen Lateral in 2009; 34 miles of 16 pipe Completed 1 st segment of EF West Mainline in June 2010, 34 miles of 24 pipe 4 th segment of White Kitchen lateral extension, 21 miles of 16 pipe, to be completed July 2010 Expanding NGL fractionation capacity at Shoup and Armstrong in South Texas by 22% from 82 MBPD to approximately 100 MBPD to handle additional NGL volumes expected from EF 5 Bcf expansion of Wilson storage facility to be completed March 2011 Potential for additional expansions to EPD crude oil and NGL pipelines EPD s network of assets is well-situated to maximize value of EF hydrocarbon production White Kitchen Lateral All rights reserved. Enterprise Products Partners L.P. 15

16 Eagle Ford Producers * As of March 31, 2010 Producer Net Acreage EOG Resources 500,000 Apache 450,000 Newfield 353,000 Anadarko 345,000 Petrohawk 314,000 Pioneer 310,000 EnCana / Newfield (2) 255,000 Chesapeake 250,000 Shell 250,000 Conoco 240,000 St. Mary 225,000 Murphy 180,000 Enduring 140,000 El Paso 112,000 Lewis / BP JV 100,000 Swift 82,000 Lewis Energy 80,000 Laredo 61,000 Rosetta Res. 52,000 Dan Hughes 40,000 Escondido 40,000 GeoSouthern Lavaca 40,000 Virtex Operating 33,000 Exxon 32,000 Common Res. 30,000 Hunt Oil 30, others 114,000 Total 4,658,000 Source: Producer reports and presentations. All rights reserved. Enterprise Products Partners L.P. 16 *

17 EPD s Current Processing Capacity EPD s South Texas 7 Sisters 7 cryo plants with common inlet, 2 fractionators MMcf/d MBPD Cryo Plants Processing Capacity Current Flow Available Capacity Fractionators Expanded Capacity Current Capacity Armstrong Armstrong Delmita Shoup Gilmore Totals Shoup Thompsonville San Martin Shilling Totals 1,540 1, Common inlet = maximum gas flow assurance Fractionators feed EPD s Gulf Coast NGL system All rights reserved. Enterprise Products Partners L.P. 17

18 Eagle Ford Crude Strategy Integrate new Eagle Ford Shale Crude pipeline system with existing Enterprise infrastructure Construct new pipelines to provide Eagle Ford crude and condensate producers access to the Cushing, Houston and Texas City refinery markets Phase I: 179 mile crude pipeline from Sealy to the Falls City area New storage at key points on the system to handle trucks Expand capacity of 24 Rancho Sealy to Genoa Jct. New 10-mile 24 pipeline from Genoa Jct. to Webster New storage at Webster All rights reserved. Enterprise Products Partners L.P. 18

19 Eagle Ford Crude Expansion All rights reserved. Enterprise Products Partners L.P. 19

20 Petrochemical Preference for NGLs Demand and Margin Comparison 000 Barrels/Day Margin cents per pound 1,400 1,200 1, (5) (10) (15) (20) (25) NGL Demand by Ethylene Industry 1Q08 2Q 3Q 4Q 1Q09 2Q 3Q 4Q 1Q10 Apr-10 May-10 But ane Propane Et hane Forward Ethylene Margin by Feedstock May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Ethane Propane Butane Lt Naphtha Gas Oil Ethylene production from steam crackers is currently at 50 billion pounds per year, which compares to an average 51 billion pounds per year for the last five years Ethane is forecasted to continue to provide ethylene producers consistently higher margins than more costly crude oil derivatives over next 12 months Cracker operators continue to maximize light-end feedstocks with daily volumes of ethane and propane consistently around 1.3 MMBbls/d or 83% of feedslate in 2010 vs. 5-yr average of 67% Cracker modifications have accounted for an approximate 100 MBPD increase in ethane and NGL cracking capacity Source: Pace Hodson, CMAI, quoted forward prices for feedstocks and company estimates on June 15, 2010 All rights reserved. Enterprise Products Partners L.P. 20

21 Petrochemical Preference for NGLs Expansion of MTBV NGL Fractionator Mont Belvieu complex is centerpiece of the largest NGL hub in the U.S. Over 100 MMBbls of multiple product underground storage capacity Enterprise s NGL distribution system is connected to all major refineries and petrochemical facilities Mont Belvieu expansion project: construct 75 MBPD fractionator; expected in-service 1Q 2011; Increases total capacity to 305 MBPD at Mont Belvieu Enterprise entered into a new 6-year agreement with Anadarko to provide up to 62 MBPD of firm fractionation capacity beginning September 1, 2010 Single largest fractionation agreement in Enterprise history All rights reserved. Enterprise Products Partners L.P. 21

22 Enterprise NGL Fractionation Capacity Total Capacity Facility (MBPD) Ownership Location MTBV % MTBV MTBV Exp (1) 75 75% MTBV Hobbs % West Texas Shoup (1) % South Texas Armstrong (1) % South Texas Promix % Louisiana Norco % Louisiana Baton Rouge 60 32% Louisiana Tebone 30 56% Louisiana Other % Colorado / Ohio 802 (1) Total capacity reflects expansion projects that will be completed during 2H 2010 and 1Q 2011 All rights reserved. Enterprise Products Partners L.P. 22

23 Financial Snapshot Unit Price / Yield Debt Capitalization (March 31, 2010) EPD LP Unit Price (June 22, 2010) $ Senior Unsecured Debt ($Billions) $ 9.4 Current Annualized Cash Distribution Rate $ 2.27 Junior Subordinated Debt 1.5 Current Yield 6.6% Total Long-term Debt $ 10.9 Ratio of Debt (1) to Adjusted EBITDA 3.7x Units Outstanding / Daily Volume / Market Cap Ratio of Adjusted EBITDA to Interest Expense 4.3x Units Outstanding (Millions, as of April 30, 2010) 639 Weighted Average Interest Rate 6.1% Daily Unit Float (Million Units) 1.6 % Fixed Rate Debt 90% Daily Unit Float ($Millions) $ 55 Weighted Average Debt Maturity (2) (Years) 9.1 Equity Market Capitalization ($Billions) $ 22 Liquidity (3) ($Billions) $ 2.4 Total Enterprise Value ($Billions) $ 33 Senior Unsecured Debt Rating Fortune 500 Ranking (Parent) 92nd Fitch / Moody's / S&P BBB- / Baa3 / BBB- (1) Debt in this calculation has been adjusted to reflect the minimum 50% equity credit that the rating agencies ascribe to the Junior Subordinated Debt. Does not include $485 million of proceeds from April 2010 common unit equity offering nor approximately $2 billion of proceeds from May 2010 notes offering. (2) Assumes first call date for the Junior Subordinated Debt. (3) Total unrestricted cash and available capacity under bank credit facilities. Includes $485 million of proceeds from April 2010 common unit equity offering. All rights reserved. Enterprise Products Partners L.P. 23

24 Balance Distribution Growth with Retaining DCF for Financial Flexibility $2.50 $2.25 $2.00 $1.75 $2.27 $2.20 $2.08 $1.95 $1.83 $ Q % DCF Retained $1,319 ($ in millions) $6,132 Distributions Declared $1.50 $1.25 $1.00 $0.93 $1.05 $1.19 $1.36 $1.54 $1.47 $847 $0.75 $0.50 $0.25 $ Q 2010 Annualized 1.2x LP Distribution Coverage LP Distributions GP Distributions Retained DCF All rights reserved. Enterprise Products Partners L.P. 24

25 Added Financial Flexibility / Lower Cost of Capital by eliminating GP s 50% IDR $ in Millions $525 $500 $475 $450 $425 $400 $375 $350 $325 $300 $275 $250 $225 $200 $175 $150 $125 $100 Cumulative Savings: $667MM 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 LP Distributions GP Distributions Savings No 50% IDR (1) Includes 131 million newly issued units for the TEPPCO merger. (1) Landmark action taken by EPD s GP in December 2002 to cap GP s IDRs at 25% for no consideration Results in $297 million per year of savings in distributions to GP (equivalent to $0.47/unit of LP distributions) based on current annualized distribution rate of $2.27/unit Enhances EPD s financial flexibility by reducing cash distributions to GP which is available to increase LP distributions, invest in growth capital projects and retire debt Significantly lowers long-term cost of capital All rights reserved. Enterprise Products Partners L.P. 25

26 Largest Public Energy Partnerships (1) Equity Market Capitalization Daily Liquidity (2) $24 $22 60 $56 $20 $20 50 $50 $16 40 $35 $Billions $12 $8 $9 $8 $6 $Millions $21 $12 $4 10 $0 EPD KMP ETP PAA BWP (1) As of June 22, 2010 (2) Based on trailing 6-month average volume multiplied by closing price June 22, EPD KMP ETP PAA BWP Source: Bloomberg All rights reserved. Enterprise Products Partners L.P. 26

27 Resulting in EPD Generating Attractive Total Returns vs. Other Asset Classes EPD and AMZ in Top 3 for Total Return for 2009, 1Q 2010 and CAGRs for Last 3-Years, 5-Years and 10-Years Q 2010 Commodities EPD EPD Commodities Small Cap Equity REIT Commodities REIT Commodities IG Bonds MLP Index EPD EPD EPD EPD 46.2% 87.0% 58.9% 39.0% 47.3% 26.5% 39.1% 33.1% 40.7% -6.6% 76.4% 12.0% 21.5% 13.8% 10.6% EPD MLP Index MLP Index IG Bonds MLP Index Non-US Equity Non-US Equity EPD EPD Hedge Funds EPD Small Cap Equity MLP Index MLP Index MLP Index 36.8% 45.7% 43.7% 10.3% 44.5% 20.7% 14.0% 29.3% 16.9% -19.1% 64.7% 8.9% 19.2% 12.3% 6.3% Non-US Equity Commodities IG Bonds Hedge Funds Non-US Equity Commodities Hedge Funds Non-US Equity MLP Index High Yield Commodities MLP Index Commodities Commodities IG Bonds 27.4% 26.9% 9.5% 3.0% 39.2% 19.2% 7.6% 26.9% 12.7% -21.2% 50.3% 8.3% 9.9% 6.7% 5.6% Hedge Funds REIT REIT High Yield EPD Small Cap Equity MLP Index MLP Index Hedge Funds EPD High Yield S&P 500 Hedge Funds Hedge Funds High Yield 23.4% 14.2% 5.2% 1.8% 35.5% 18.3% 6.3% 26.1% 12.6% -30.1% 39.1% 5.4% 6.2% 5.7% 4.3% Small Cap Equity IG Bonds Hedge Funds REIT REIT MLP Index S&P 500 Small Cap Equity Non-US Equity Small Cap Equity Non-US Equity REIT IG Bonds High Yield Commodities 21.3% 10.7% 4.4% 0.7% 29.9% 16.7% 4.9% 18.4% 11.6% -33.8% 32.5% 4.1% 6.2% 5.6% 4.2% S&P 500 Hedge Funds High Yield MLP Index S&P 500 EPD REIT S&P 500 IG Bonds MLP Index Small Cap Equity High Yield High Yield IG Bonds Hedge Funds 21.0% 4.8% 2.8% -3.4% 28.7% 12.6% 4.8% 15.8% 6.1% -36.9% 27.2% 3.5% 5.7% 5.2% 1.8% High Yield High Yield Small Cap Equity EPD High Yield S&P 500 Small Cap Equity Hedge Funds S&P 500 S&P 500 S&P 500 IG Bonds REIT Non-US Equity Small Cap Equity 2.5% -0.6% 2.5% -12.1% 17.5% 10.9% 4.6% 13.9% 5.5% -37.0% 26.5% 2.9% 5.0% 4.2% -4.0% IG Bonds Small Cap Equity S&P 500 Non-US Equity Hedge Funds Hedge Funds High Yield High Yield High Yield Commodities REIT Commodities Small Cap Equity Small Cap Equity S&P % -3.0% -11.9% -15.7% 15.4% 9.6% 2.8% 8.4% 2.1% -42.8% 25.1% 1.1% 3.7% 3.4% -4.2% MLP Index S&P 500 Non-US Equity Small Cap Equity Commodities High Yield IG Bonds IG Bonds Small Cap Equity Non-US Equity Hedge Funds Non-US Equity Non-US Equity S&P 500 Non-US Equity -7.8% -9.1% -21.2% -20.5% 10.8% 8.6% 1.8% 4.5% -1.6% -43.1% 18.6% 0.9% 1.7% 1.9% -6.6% REIT Non-US Equity Commodities S&P 500 IG Bonds IG Bonds EPD Commodities REIT REIT IG Bonds Hedge Funds S&P 500 REIT REIT -12.3% -14.0% -31.5% -22.1% 5.6% 4.2% -1.2% 0.4% -14.7% -48.2% 17.3% 0.9% -0.7% -2.9% -18.2% 10-Year CAGR 1 5-Year CAGR 1 3-Year CAGR 1 1 CAGR calculations based upon closing prices ending the last trading day of the first quarter for each period Commodities: S&P World Commodity Index; EPD: Enterprise Products Partners L.P.; Hedge Funds: CS Tremont Hedge Fund; High Yield: Vanguard High Yield US Corporate Fund; IG Bonds: Vanguard Intermediate Term US Investment Grade Fund; MLP Index: Alerian Index; Non-US Equity: MSCI Daily Total Return EAFE Index; REIT: S&P REIT Index; S&P 500: S&P 500 Index; Small Cap Equity: Russell 2000 Index Source: Bloomberg L.P. Past results may not be indicative of future performance. All rights reserved. Enterprise Products Partners L.P. 27

28 EPD Total Return vs. Other Asset Classes Since Dec. 31, % 900% EPD 952% 800% 700% 600% 500% AMZ 473% 400% 300% 200% 100% Commodities 299% Hedge Funds 135% 0% -100% YE '98 YE '99 YE '00 YE '01 YE '02 YE '03 YE '04 YE '05 YE '06 YE '07 YE '08 YE '09 Q1 '10 S&P World Commodity Index Enterprise Products Partners MSCI Daily Total Return EAFE Index Russell 2000 Index S&P 500 Index CS Tremont Hedge Fund Vanguard High Yield US Corporate Fund Vanguard Intermediate Term US IG Fund S&P REIT Index Alerian Index Source: Bloomberg L.P. Past results may not be indicative of future performance. All rights reserved. Enterprise Products Partners L.P. 28

29 Non-GAAP Reconciliations All rights reserved. Enterprise Products Partners L.P.

30 Non-GAAP Financial Measures This presentation utilizes the Non-GAAP financial measures of Gross Operating Margin, Adjusted EBITDA and Distributable Cash Flow. In general, we define Gross Operating Margin as operating income before (i) depreciation, amortization and accretion expense; (ii) non-cash consolidated asset impairment charges; (iii) operating lease expenses for which we do not have the payment obligation; (iv) gains and losses from asset sales and related transactions and (v) general and administrative costs. The GAAP measure most directly comparable to Gross Operating Margin is operating income. In general, we define distributable cash flow as net income or loss attributable to Enterprise Products Partners L.P. adjusted for: (i) the addition of depreciation, amortization and accretion expense; (ii) the addition of operating lease expenses for which we do not have the payment obligation; (iii) the addition of cash distributions received from unconsolidated affiliates less equity earnings from unconsolidated affiliates; (iv) the subtraction of sustaining capital expenditures and cash payments to settle asset retirement obligations; (v) the addition of losses or subtraction of gains from asset sales and related transactions; (vi) the addition of cash proceeds from asset sales or related transactions; (vii) the return of an investment in an unconsolidated affiliate (if any); (viii) the addition of losses or subtraction of gains on the monetization of financial instruments recorded in accumulated other comprehensive income (loss), if any, less related amortization of such amount to earnings; (ix) the addition of transition support payments received from El Paso Corporation related to the GulfTerra merger; (x) the addition of net income attributable to the noncontrolling interest associated with the public unitholders of DEP, less related distributions to be paid to such holders with respect to the period of calculation; and (xi) the addition or subtraction of other miscellaneous non-cash amounts (as applicable) that affect net income or loss for the period. The GAAP measure most directly comparable to Distributable Cash Flow is net cash flows provided by operating activities. We define Adjusted EBITDA as net income or loss less equity earnings of unconsolidated affiliates, plus distributions received from unconsolidated affiliates, interest expense, provision for income taxes and depreciation, amortization and accretion expense. Adjusted EBITDA is commonly used as a supplemental financial measure by senior management and by external users of our financial statements, such as investors, commercial banks, research analysts and rating agencies, to assess: (1) the financial performance of our assets without regard to financing methods, capital structures or historical cost basis; (2) the ability of our assets to generate cash sufficient to pay interest cost and support our indebtedness; and (3) the viability of projects and the overall rates of return on alternative investment opportunities. Since Adjusted EBITDA excludes some, but not all, items that affect net income or loss attributable to Enterprise Products Partners L.P. and because these measures may vary among other companies, the Adjusted EBITDA data presented in this press release may not be comparable to similarly titled measures of other companies. The GAAP measure most directly comparable to Adjusted EBITDA is net cash flows provided by operating activities. All rights reserved. Enterprise Products Partners L.P. 30

31 Non-GAAP Reconciliations Enterprise Products Partners L.P. Gross Operating Margin (Dollars in millions) For the Year Ended December 31, Q 2Q 3Q 4Q 1Q Gross operating margin by segment: NGL Pipelines & Services $ $ $ 1,325.0 $ $ $ $ $ Onshore Natural Gas Pipelines & Services Onshore Crude Oil Pipelines & Services Offshore Pipelines & Services (1.1) Petrochemical & Refined Products Services Total gross operating margin 1, , , Adjustments to reconcile gross operating margin to operating income: Amounts included in operating costs and expenses: Depreciation, amortization and accretion (556.9) (647.9) (725.4) (196.4) (200.5) (206.0) (206.4) (212.4) Non-cash impairment charges (2.3) (24.0) (7.2) (1.5) Operating lease expenses paid by EPCO (2.1) (2.1) (2.0) (0.2) (0.1) (0.2) (0.2) (0.2) Gain (loss) on asset sales and related transactions (0.5) 7.3 General and administrative costs (95.9) (127.2) (137.2) (34.9) (46.1) (52.3) (39.0) (37.6) Operating income $ 1,121.1 $ 1,195.0 $ 1,748.4 $ $ $ $ $ All rights reserved. Enterprise Products Partners L.P. 31

32 Non-GAAP Reconciliations Enterprise Products Partners L.P. Adjusted EBITDA (Dollars in millions) For the Year Ended December 31, Q Reconciliation of non-gaap "Adjusted EBITDA" to GAAP "Net income" and GAAP "net cash flows provided by operating activities" Net income $ $ $ 1,188.9 $ 1,155.1 $ Adjustments to derive EBITDA: Equity in income of unconsolidated affiliates (25.2) (10.5) (34.9) (51.2) (16.0) Distributions received from unconsolidated affiliates Interest expense Provision for income taxes Depreciation, amortization and accretion in costs and expenses Adjusted EBITDA 1, , , , Adjustments to Adjusted EBITDA to derive net cash flows provided by operating activities (add or subtract as indicated by sign of number): Interest expense (324.2) (413.0) (540.7) (641.8) (148.6) Provision for income taxes (22.0) (15.7) (31.0) (25.3) (8.7) Gain on asset sales and related transactions (5.1) (67.4) (4.0) - (7.5) Non-cash impairment charge Loss on forfeiture of investment in Texas Offshore Port System Operating lease expense paid by EPCO Miscellaneous non-cash and other amounts to reconcile Adjusted EBITDA and net cash flows provided by operating activities (7.5) Net effect of changes in operating accounts (411.1) Net cash flows provided by operating activities $ 1,459.1 $ 1,953.6 $ 1,567.1 $ 2,377.2 $ All rights reserved. Enterprise Products Partners L.P. 32

33 Non-GAAP Reconciliations Enterprise Products Partners L.P. Distributable Cash Flow (Dollars in millions) For the Year Ended December 31, Q Reconciliation of Non-GAAP "Distributable cash flow" to GAAP "Net income" and GAAP "Net cash flows provided by operating activities" Net income attributable to Enterprise Products Partners L.P. $ $ $ $ 1,030.9 $ Adjustments to Net income attributable to Enterprise Products Partners L.P. to derive Distributable cash flow (add or subtract as indicated by sign of number): Depreciation, amortization and accretion Operating lease expense paid by EPCO Monetization of interest rate hedging derivative instruments (14.4) Amortization of net losses (gains) related to monetization of derivative instruments (3.8) (4.0) (4.4) Equity in income of unconsolidated affiliates (21.6) (29.7) (59.1) (61.4) (16.0) Distributions received from unconsolidated affiliates Loss (gain) on asset sales and related transactions (3.3) 5.4 (3.7) 0.1 (7.5) Proceeds from asset sales and related transactions Sustaining capital expenditures (119.4) (162.5) (188.7) (166.6) (32.6) El Paso transition support payments Net income attributable to noncontrolling interest DEP public unitholders Distribution to be paid to DEP public unitholders with respect to period - (21.9) (25.1) (38.0) (10.7) Cash expenditures for asset abandonment activities - (5.0) (7.2) (12.4) (2.0) Net loss of TEPPCO for third quarter (42.1) - Other miscellaneous adjustments to derive distributable cash flow (8.4) Distributable cash flow , , , Adjustments to Distributable cash flow to derive Net cash flows provided by operating activities (add or subtract as indicated by sign of number): Monetization of interest rate hedging derivative instruments - (48.9) 14.4 (0.2) - Amortization of net gains related to monetization of derivative instruments (1.0) (1.4) Proceeds from asset sales and related transactions (3.9) (12.0) (16.0) (3.5) (21.7) Sustaining capital expenditures El Paso transition support payments (14.3) (9.0) Net income attributable to noncontrolling interests Net income attributable to noncontrolling interest DEP public unitholders - (13.9) (17.2) (31.3) (8.7) Distribution to be paid to DEP public unitholders with respect to period Cash expenditures for asset abandonment activities Miscellaneous non-cash and other amounts to reconcile distributable cash flow with net cash flows provided by operating activities (31.6) (5.2) 2.9 Net effect of changes in operating accounts (357.4) Operating cash flows for the six months ended June 30, 2009 attributable to the inclusion of TEPPCO amounts in our recast financial statements Net cash flows provided by operating activities $ 1,175.0 $ 1,590.9 $ 1,237.2 $ 2,377.2 $ Enterprise Products Partners' total distributable cash flow for periods prior to July 1, 2009 is calculated based on the historical financial results (pre-recast) for Enterprise Products Partners. Total distributable cash flow for periods beginning on and subsequent to July 1, 2009 is calculated based on the recast historical financial results for Enterprise Products Partners, which includes amounts attributable to TEPPCO Partners, L.P. and its consolidated subsidiaries prior to October 26, All rights reserved. Enterprise Products Partners L.P. 33