JEFFERIES ENERGY CONFERENCE

Transcription

1 ENTERPRISE PRODUCTS PARTNERS L.P. JEFFERIES ENERGY CONFERENCE November 12, 2015 Bryan Bulawa Chief Financial Officer ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com

2 FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements based on the beliefs of the company, as well as assumptions made by, and information currently available to our management team. When used in this presentation, words such as anticipate, project, expect, plan, seek, goal, estimate, forecast, intend, could, should, will, believe, may, scheduled, potential and similar expressions and statements regarding our plans and objectives for future operations, are intended to identify forward-looking statements. Although management believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. You should not put undue reliance on any forward-looking statements, which speak only as of their dates. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those expected, including insufficient cash from operations, adverse market conditions, governmental regulations, the possibility that tax or other costs or difficulties related thereto will be greater than expected, the impact of competition and other risk factors discussed in our latest filings with the Securities and Exchange Commission. All forward-looking statements attributable to Enterprise or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained herein, in such filings and in our future periodic reports filed with the Securities and Exchange Commission. Except as required by law, we do not intend to update or revise our forward-looking statements, whether as a result of new information, future events or otherwise. ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 2

3 ENTERPRISE PRODUCTS PARTNERS L.P. ( EPD ) One of the largest integrated midstream energy companies Integrated system enables EPD to reduce impact of cyclical commodity swings Large supply aggregator and access to domestic and international markets provides market optionality to producers and consumers History of successful execution of growth projects and M&A $34 billion of organic growth projects and $26 billion of major acquisitions since IPO in 1998 (including $8 billion this year) $8 billion of capital growth projects under construction Low cost of capital; financial flexibility One of the highest credit ratings among MLPs: Baa1 / BBB+ Simplified structure with no GP IDRs Margin of safety with average distribution coverage of >1.4x and $8.8 billion of retained DCF over last 5 years ($4.8 billion excluding non-recurring items) Consistent distribution growth: 45 consecutive quarters Significant insider ownership / deep bench ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 3

4 EPD: NATURAL GAS, NGLS, CRUDE OIL, REFINED PRODUCTS AND PETROCHEMICALS Asset Overview Pipelines: 49,000 miles of natural gas, NGL, crude oil, refined products and petrochemical pipelines Storage: 225 MMBbls of NGL, refined products, petrochemical and crude oil, and 14 Bcf of natural gas storage capacity Processing: 24 natural gas processing plants; 22 fractionators; 10 condensate distillation facilities Export Facilities: refined products export terminal; expanding world scale LPG and processed condensate export facilities, adding ethane exports 2016 Connectivity Connected to U.S. major shale basins Connected to every U.S. ethylene cracker Connected to 90% of refineries East of Rockies Pipeline connected to 22 Gulf Coast PGP customers Connected to the First and Last Mile for supplies and markets through extensive marine and trucking fleets ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 4

5 $/Unit $/Bbl $ millions $ Millions $/Bbl SUCCESSFUL EXECUTION THROUGHOUT CYCLES Increased Cash Distributions for 45 Consecutive Quarters MLP Equities: Higher Correlation to Crude for Last 12 Months 400% 350% 300% 250% 200% 150% 100% 50% 0% Correlation to WTI Total Since 2Q'14 EPD Unit Price AMZ Index XLE ETF EPD Has Delivered Consistent Results Throughout Cycles $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 Gross Operating Margin (1) Distributable Cash Flow (1,2) $160 $140 $120 $100 $80 $60 $40 $20 $0 $2.0 $1.8 $1.6 $1.4 $1.2 $1.0 $0.8 $0.6 $0.4 $0.2 $0.0 EPD Unit Price AMZ Index XLE ETF WTI Crude Which Has Supported Distribution Growth CAGR: EPD Distribution per Unit 2Q Q % Last 3 Years 5.8% Last 12 Months 5.5% $160 $140 $120 $100 $80 $60 $40 $20 $0 $1,200 $1,000 $800 $600 $400 $200 $0 EPD Gross Operating Margin EPD DCF w/o Non Recurring WTI Crude While Building a Margin of Safety for Future Growth Cumulative Retained DCF (2) 2Q Q 2015 $5,797 Last 3 Years $3,623 62% Last 12 Months $1,317 23% Annualized Distribution per Unit WTI Crude Retained EPD DCF w/o Non Recurring Cash Distributions (1) Gross operating margin and distributable cash flow represent reported amounts. For a reconciliation of these amounts to their nearest GAAP counterparts, see Non-GAAP Financial Measures on our website. (2) Excludes non-recurring cash transactions (e.g., proceeds from asset sales and property damage insurance claims and payments to settle interest rate hedges). Sources: EPD and Bloomberg ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 5

6 FUNDAMENTALS UPDATE ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com

7 U.S. NATURAL GAS SUPPLY POTENTIAL ASSUMING SUFFICIENT MARKETS (BCF/D) 1 1 ROCKIES OTHER MID-CONTINENT APPALACHIAN Region Current Base Case 2020 Base Case 2025 Gulf Coast (incl. EF, Haynesville, Barnett) Permian Basin Rockies Mid-Continent Appalachian Other Bcf/d PERMIAN GULF COAST Current 78 Year Bcf/d Source: EPD Fundamentals ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 7

8 NORTHEAST GAS DISPLACES OTHER SUPPLIES WHILE DEMAND ON GULF COAST GROWS 2014 to 2020 Change in NG Flow Rockies +1 Rerouted Midwest Supply: 1 Bcf/d Bakken Midwest Electric Gen +2 Bcf/d Midwest Markets Canada +1.5 Marcellus & Utica Production Growth Bcf/d RC & E.G LNG +0.8 E.G. +1 New capacity is needed to better match new flows with new markets Source: EPD Fundamentals Growing MidCon and West Texas gas needs new markets +2 4 Permian +2 from MidCon +4 6 Bcf/d Mexico +5 Bcf/d +1 Miss/GW +1 Woodford +1 Rockies Displ +1 From Midwest +1 Rockies +5 Bcf/d 3 Bcf/d Demand: +6 9 LNG +1 2 E.G Indust 9 15 Bcf/d ANR 1.1 TGT 0.9 Trunk. 1.0 NGPL Transco 2.6 TGP 2.0 TETCO 1.4 CGT ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 8 E.G Electric Generation* (EG) Industrial / Chems ( NGVs LNG and Mexico Exports Residential Commercial New Demand (Bcf/d) * Depends on emission and CO 2 rules

9 U.S. OIL & CONDENSATE SUPPLY POTENTIAL ASSUMING SUFFICIENT MARKETS (MBPD) 3,447 4,800 CANADA ROCKIES 1, AK and CA 1,855 2, MID-CONTINENT APPALACHIAN Region Current 2020 Gulf Coast 3,481 4,037 Permian Basin 1,957 2,421 Rockies 1,855 2,092 Mid-Continent Appalachian AK and CA 1, MBPD 9,171 10,230 PERMIAN 1,957 2,421 3,481 4,037 GULF COAST Current 9,177 Forecast Year ,230 MBPD Source: EPD Fundamentals ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 9

10 U.S. NGL SUPPLY POTENTIAL ASSUMING SUFFICIENT MARKETS (MBPD) ROCKIES OTHER ,015 MID-CONTINENT APPALACHIAN NGL Components Current 2020 Ethane 1,780 2,282 Propane 1,114 1,361 N. Butane Iso Butane Natural Gasoline MBPD 3,922 4,876 PERMIAN 790 1,036 1,152 1,412 GULF COAST Current 3,922 Potential Year ,876 MBPD * Current is increased by 600 MBPD for estimated ethane rejection Source: EPD Fundamentals ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 10

11 MBPD U.S. Cents Per Pound LOW GAS TO CRUDE SPREAD CONTINUING TO DRIVE U.S. NGL ADVANTAGE NYMEX Natural Gas Price as a % of Crude Shale Gas Production Now Totals 50% of Total Gas Production U.S. Ethane Crackers: Global Cost Advantage Asia Naphtha NWE Naphtha U.S. Propane 10 U.S. Ethane 0 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Margin Cents Per Pound (5) (20) Indicative U.S. Ethylene Cracker Profit Margin by Feedstock 1,200 1, U.S. Ethylene Cracker Feedstocks Ethane Propane Butane Lt Naphtha Ethane Naphtha Propane Butane Sources: EPD Fundamentals, NYMEX, EIA and CMAI Note: Assumes ethylene crackers operate at 93% capacity. Annual creep forecasted to only occur from ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 11

12 THE CHEMICALS INDUSTRY IS MAKING VERY LARGE INVESTMENTS BASED ON U.S. SHALES American Chemistry Council (ACC) is tracking 225 U.S. chemical projects valued at $145 billion. They estimate that >60% of these new investments are from foreign companies and that much of these chemicals / plastics are destined for export. As of June 2015, ACC projects new manufacturing projects will grow our economy and create 414,000 new jobs by 2023 generating $300 billion of new business Company U.S. World Scale Ethylene Plants Under Construction Capacity MM Metric Tons Ethane Consumption (MBPD) Location Estimated Completion Chevron Phillips Chemical Cedar Bayou, Texas 2017 ExxonMobil Chemical Baytown, Texas Late 2016 Dow Chemical Freeport, Texas 2017 Sasol Lake Charles, Louisiana 2017 Formosa Plastics Point Comfort, Texas 2017 Occidental Chemical / Mexichem Ingleside, Texas 2017 Shintech Plaquemine, LA 2018 TOTAL 495 Note: Excludes recently announced ethylene cracker in Louisiana by Axiall and Lotte Chemical ( 60 MBPD). Sources: American Chemistry Council and EPD Fundamentals ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 12

13 U.S. ETHANE SUPPLY / DEMAND OUTLOOK MBPD 3,000 Supply Range 2,500 2,000 1,500 1, Production Ethane Supply Range Existing Demand Conversions & Expansions New Builds Exports Potential Projects Source: EPD Fundamentals Note: Assumes 90% operating rate for Petchems, 70% for Exports. Potential projects are viewed as <80% likely to occur. ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 13

14 U.S. LPG A GROWING SURPLUS MBPD 3,000 1 MMBPD LPG Export Capacity Supply Range 2,500 2,000 1,500 1, LPG Supply LPG Demand Current LPG Exports Surplus Source: EPD Fundamentals Note: LPG is Propane and Butane ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 14

15 PROJECT UPDATES ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com

16 $ in Millions VISIBILITY TO GROWTH: MAJOR CAPITAL PROJECTS BY IN SERVICE DATE $2,500 $2,250 $0.9 Billion $7.8 Billion $2,307 $2,000 $1,750 $1,827 $1,500 $1,250 $1,268 $1,201 $1,000 $750 $613 $579 $500 $344 $250 $215 $71 $158 $127 $0 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Estimated ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 16

17 EPD MAJOR ORGANIC GROWTH PROJECTS Demand Pull and Market Creation Focus PDH Facility Aegis Ethane Pipeline Houston / Port Arthur / Beaumont Crude Oil Distribution Echo Crude Oil Terminal Ethane Export Terminal Processed Condensate Exports LPG Export Expansions LPG Oiltanking export terminal Acquisition ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 17

18 MBPD ETHANE TAKEAWAY SOLUTIONS PROVIDES ACCESS TO GULF COAST MARKETS ATEX Pipeline Currently moving 70 MBPD; expandable to 265 MBPD Connected to 4 NGL fractionators 15 year ship-or-pay commitments Ethane Header System 270-mile, 20 pipeline creates header system from Corpus Christi to Louisiana, when combined with existing South Texas ethane pipeline Received commitments in excess of 300 MBPD; expandable up to 400 MBPD ATEX Pipeline ATEX C 2 Contracted Volumes In discussions with 4 companies for remaining capacity Aegis Pipeline First two segments to Lake Charles, LA completed; last segment expected in-service by end of 2015 ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 18

19 POTENTIAL TAKEAWAY FOR NORTHEAST NGLs AND MIDWEST REFINED PRODUCTS Centennial Pipeline 800-mile, 26 /24 northbound refined products pipeline from Beaumont, TX to Bourbon, IL; idle since MMBbls of refined products storage at Creal Springs Owned 50/50 by Marathon (MPC) and EPD Potential Repurposing Project Sponsors each own pipelines that could be repurposed to connect Marcellus / Utica fractionators to Centennial Reverse Centennial s 5 pump stations; possibly install additional pump stations NGL product capacity of 100 MBPD Construction period: months Status: currently evaluating Creal Springs Centennial Initial Northeast Origins Gas Processing Plant Liquids Terminal Fractionator Import / Export Terminal Underground Liquids Storage Liquids Pipeline Centennial Pipeline Third Party Pipeline ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 19

20 ENTERPRISE EXPORT CAPACITY: LINKING U.S. SUPPLIES TO GLOBAL DEMAND Enterprise HSC Mont Belvieu Beaumont West Beaumont East Corpus Christi ECHO Freeport / Jones Creek Morgan s Point Odfjell HSC = Houston Ship Channel Texas City Docks Pipeline Corridors NGLs Refined Products Crude Oil Product Ship Docks Barge Docks Under Construction Enterprise Beaumont West Multi Enterprise Beaumont East Refined Enterprise HSC Multi Morgan's Point Ethane, Crude Texas City Processed Condensate, Crude Freeport / Jones Creek Crude Corpus Christi Crude (2) Odfjell Propylene (1) Barge dock (2) Leased property (1) Source: EPD Fundamentals ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 20

21 ETHANE EXPORT FACILITY Largest of Its Kind Capacity (MMBbls) Shipbuilders Response to Increased Ethane Demand Estimated Ethane / Ethylene Vessel Capacity (1) (1) # of vessels (125+ MBbl capacity per vessel); confirmed shipbuilding orders only Source: EPD Fundamentals New ethane export facility with a combined operating rate of 200 MBPD across two docks 18 miles of 24 P/L MTBV to Morgan s Point New 10,000 BPH ethane export Facility 3Q 2016 scheduled completion ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 21

22 MMbls U.S. BECOMES LARGEST EXPORTER OF LPG LPG Exports from EPD Facilities as of October 2015 YTD 2015 LPG Exports from EPD Facilities by Destination Region: 84 MMBbls % of Cargoes Loaded % of Destination Market North America 24% 28% South America 30% 27% Europe 11% 8% Far East 34% 7% Other 1% 0% North America & Caribbean Total Waterborne Imports: 18.2 MMBbls 28% EPD South America & Central America 23.4 MMBbls 27% EPD Europe / North Africa 8.6 MMBbls 8% EPD Far East 26.2 MMBbls 7% EPD Top LPG Exporters in 2008, 2014 and 2015 YTD EPD YTD Source: Waterborne 0 USA USA Qatar Algeria UAE Saudi Norway Iran Kuwait ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 22

23 MMBbls LPG LOADINGS Historical and Committed Loadings vs. Capacity 16 1,150 Cargos Scheduled from Avg Monthly Loadings Per Year (As of Aug-2015) Operational Capacity Existing Capacity: Expansion 4Q 2015: Total Capacity: 9.0 MMBbls/mo +7.0 MMBbls/mo 16.0 MMBbls/mo E 2017E 2018E 2019E 2020E ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 23

24 GROWING U.S. PROPANE DEMAND ENTERPRISE PDH FACILITY New PDH facility will produce up to 1.65 billion pounds per year of polymer grade propylene or 25 MBPD Consume 35 MBPD of propane 100% of capacity contracted under fee-based contracts with investment grade companies averaging 15 years Engineering phase and civil work nearly complete; setting structural steel and major components; piping phase initiated Commissioning expected 4Q 2016 ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 24

25 MIDLAND TO HOUSTON CRUDE OIL PIPELINE From the Permian Supply Hub to Multiple Markets O k l a h o m a Cushing 400-mile, 24 pipeline from Midland to Sealy, Texas Capacity: 450 MBPD Major environmental permits received; Long lead time items such as pipe and valves ordered Lynch Hobbs Jal Midland Supported by long-term contracts Expected in-service: 2Q 2017 Competitive advantages T e x a s Terminal Eagle Ford Terminal (JV) Seaway Pipeline (JV) South Texas System Eagle Ford Pipeline Eagle Ford JV Pipeline Rancho II Pipeline Red River Gathering Basin Pipeline West Texas Gathering Midland to Sealy Gardendale Marshall Milton Lyssy Three Rivers Sealy Corpus Christi Katy Beaumont/ Port Arthur ECHO TX City Freeport Jones Creek Origin not dependent on third party pipelines Direct transport from Midland to Gulf Coast Four segregations: WTS, WTI, Light WTI and condensate Destination that can efficiently distribute barrels to markets on the Texas Gulf Coast ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 25

26 HOUSTON AREA CRUDE OIL DISTRIBUTION Moore Road 36 /24 /24" 24" Sealy From Cushing Galena Park EHSC 24" 45 draft XOM Baytown 24" 10 12" Katy Rancho II 36 Rancho I 24 VLO H.R. PRSI 24" Genoa Jct. 24" 36" 30 ECHO Shell 24 /30 /30 Beaumont / Port Arthur Lateral 30 Beaumont Motiva VLO TOT XOM BMW Refinery Enterprise Pipeline Enterprise Pipeline Under Construction Seaway Pipeline Under Development Seaway Pipeline JV Third Party Pipeline Storage Terminal Dock P66 Seaway Longhaul and Loop 2 x 30 Seaway TX City TX City Loop Jones Creek Lateral 36 Jones Creek Freeport 45 draft Texas City 45 draft GBR VLO MPC 40 draft ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 26

27 FINANCIAL UPDATE ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com

28 MBPD TBtu/d Million BPD Equity NGL Production MBPD Bcf/d Fee-based Processing SOLID OPERATING PERFORMANCE ,100 1, Liquids Pipeline Volumes M 2015 NGL / Propylene Fractionation & Butane Isomerization ,074 1,059 Equity NGL Production & Fee-based Processing M Offshore Onshore Natural Gas Pipeline Volumes M M 2015 ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 28

29 $ per Unit $ Billions $ Billions $ Billions STRONG FINANCIAL RESULTS $5.0 $4.0 Gross Operating Margin $4.8 $4.4 $3.9 $5.3 $4.0 $4.5 $3.5 $3.8 Distributable Cash Flow ( DCF ) $4.1 $3.8 $4.1 $3.7 $3.9 (1) $4.5 $3.0 $2.5 $2.8 $3.0 $3.0 $2.0 $1.0 $1.5 $0.0 $1.60 $1.50 $1.40 $1.30 $1.20 $1.10 $ M 2015 Distributions Declared (Adjusted for 2 for 1 Split in August 2014) $1.22 $1.29 $1.37 $1.45 (1) Each period noted includes non recurring transactions (e.g., proceeds from asset sales and property damage insurance claims and payments to settle interest rate hedges). (2) Retained DCF represents the amount of distributable cash flow for each period that was retained by the general partner for reinvestment in capital projects and other reasons. $ Q 2015 Annualized ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 29 $0.5 $2.5 $2.0 $1.5 $1.0 $0.5 $ M 2015 $ x $ x Retained DCF / Coverage (1,2) $ x $ x $ x $ x $ x $ x $ x $ x M 2015 Non-recurring items

30 $ in Billions HISTORY OF FINANCIAL DISCIPLINE WHILE EXECUTING GROWTH STRATEGY Debt / Adjusted EBITDA $8.0 $7.0 $6.0 $5.0 $4.0 $3.0 $2.0 $1.0 $0.0 Total Growth Capex & Debt Leverage 4.2x $1.5 $ x $ x $ x $ x $7.8 $4.6 $ x (1) $6.3 $ x $3.8 3Q E Actual Debt Leverage Ratio Oiltanking & EFS Midstream Estimated Retained $2.3 billion of DCF for first nine months of 2015 to reinvest in the partnership; includes $1.5 billion of proceeds from sale of assets Issued $2.5 billion Senior Notes in May 2015 $750 million 3 year, 1.65% $875 million 10+ year, 3.70% $875 million 31 year, 4.90% Proceeds from debt issuance were used to repay debt and amounts outstanding under commercial paper program ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P x 4.5x 4.3x 4.1x 3.9x 3.7x 3.5x 3.3x (1) Proforma includes full year EBITDA for Oiltanking.

31 Average Maturity Years STRENGTHENING DEBT PORTFOLIO Extending Maturities Without Increasing Costs $18.4 Billion Notes Issued % Fixed Rate Debt % 44.9% 10.3% 10.6% % % Cost of Debt 34.2% 9 5.7% % 5.8% 5.5% 5.5% 7 4.8% 4.8% 4.5% 3 Year 5 Year 10 Year 30+ Year Average Maturity to First Call Date Average Cost of Debt ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 31

32 APPENDIX ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com

33 VISIBILITY TO GROWTH: MAJOR CAPITAL PROJECTS $5.0B In-Service 2014 / 3Q 2015; $7.8B Under Construction In Service Date Q2015 2Q2015 3Q2015 4Q /2017 NGL Pipeline & Services Mid-America NGL pipeline expansion Rocky Mountain segment Done Front Range (JV) NGL pipeline Done South Carlsbad expansion 60 mile pipeline (1Q 2014) Done ATEX Express ethane pipeline 25 MBPD expansion Marcellus / Utica Done LPG export facility on Gulf Coast ( 1.5 MMBbl/mo in 1Q 2015 & 7 MMBbl/mo 4Q 2015) Done Aegis ethane pipeline 270 miles (end of 2015) Done Done Mont Belvieu brine handling expansion (3Q-4Q 2015 & 2Q 2016) Done Ethane export facility on Gulf Coast (3Q 2016) Delaware Basin (Permian) gas plant (JV) 150 MMcf/d and related pipelines (3Q 2016) South Eddy (Permian) gas plant 200 MMcf/d and related pipelines (2Q 2016) South Texas 16" ethane pipeline expansion (2017) Onshore Crude Oil Pipelines & Services Seaway (JV) crude oil laterals Done Seaway (JV) crude oil looping (up to 850 MBPD) Done ECHO storage expansion 900 MBbls (capacity increase to 1.6 MMBbls) Done Appelt & Beaumont storage terminal expansions, including 58 acre expansion (3Q 2015 & 2016) ECHO addt'l 4 MMBbl (total capacity 6.5 MMBbls) & 55 miles of 36" pipelines (2Q ) Done Done Rancho II 36" crude oil pipeline (3Q 2015) Done Permian 25 mile 10" crude gathering pipeline (4Q 2015) Eagle Ford (JV) crude oil pipeline expansion & gathering (3Q 2015) & dock (2017) Midland to Seally 24" crude oil pipeline (2017) EFS Gathering and Condensate Pipeline Projects ( ) Petrochemical & Refined Products Services Diluent service to Chicago area (Southern Lights & Cochin pipeline connections) Done Refined products export dock Beaumont expansion (4Q 2016) Done Propane Dehydrogenation Unit ("PDH") (2016) Expansion of propylene pipeline system (2016/2017) Other Done Offshore Pipelines & Services Lucius (JV) crude oil pipeline SEKCO (3Q 2014) ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 33 Done Value of capital placed in service ($ Billions) $ 4.1 $ 0.2 $ 0.1 $ 0.6 $ - $ - Value of remaining capital projects to be put in service $ - $ - $ - $ - $ 1.8 $ 6.0

34 REGIONAL NGL HUBS: USGC VS. EAST COAST NO COMPARISON SUPPLY USGC East Coast Diversity 7 unique basins linked 1 basin for all supply Supply Potential Estimated 4.5 MMBPD by 2020 Estimated 1 MMBPD by 2020 STORAGE DEMAND Capacity 300 MMBbls (salt dome) 11 MMBbls (granite / hard rock) Per Well Scale 20 MMB with upside 1 MMB Expansion Cost $5 $15 / Bbl $65 $85 / Bbl Expansion Time 2 3 years for 5 MMBbls 2 3 years for 1 MMBbls Local Export Ratable via chemical demand: >1.5 MMBPD rising to >2.3 MMBPD by 2018 across all molecules 800 MBPD, rising to >1.3 MMBPD across all NGLs Highly Seasonal, limited to C 3 and C 4 (no local C 2 demand) <150 MBPD across all NGLs INTANGIBLES Supportive Regulatory Environment Restrictive Regulatory Environment Sources: EPD Fundamentals and EPD Operations ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 34

35 MBPD MBPD MARINE TERMINAL / DOCK ACTIVITY Annualized 4Q Oiltanking for 2014 MBPD MBPD LPG Export Loadings Product Export Loadings Processed Condensate Refined & Petrochemical Products 208 (1) M 2015 Crude Oil Loadings (1,2) Q14 2Q14 3Q14 4Q14 1Q15 2Q Crude Oil Imports (1,2) M 2015 (1) Excludes Oiltanking volumes prior to October 1, (2) Includes 100% volumes for Seaway joint-owned assets. ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P M 2015 Note: Volumes reflected are annual averages.

36 NON GAAP RECONCILIATIONS ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com

37 GROSS OPERATING MARGIN We evaluate segment performance based on the non-gaap financial measure of gross operating margin. Gross operating margin (either in total or by individual segment) is an important performance measure of the core profitability of our operations. This measure forms the basis of our internal financial reporting and is used by our management in deciding how to allocate capital resources among business segments. The following table reconciles non-gaap gross operating margin to operating income, which is the most directly comparable GAAP financial measure to gross operating margin for the periods presented (dollars in millions): For the Nine For the Twelve For the Year Ended December 31, Months Ended Months Ended September 30, 2015 September 30, 2015 Gross operating margin by segment: NGL Pipelines & Services $ 2,184.2 $ 2,468.5 $ 2,514.4 $ 2,877.7 $ 2,041.3 $ 2,746.6 Crude Oil Pipelines & Services Natural Gas Pipelines & Services Petrochemical & Refined Products Services Offshore Pipelines & Services Other Investments Total gross operating margin (non-gaap) 3, , , , , ,337.1 Adjustments to reconcile non-gaap gross operating margin to GAAP operating income: Subtract depreciation, amortization and accretion expense amounts not reflected in gross operating margin (958.7) (1,061.7) (1,148.9) (1,282.7) (1,082.0) (1,428.2) Subtract non-cash impairment charges not reflected in gross operating margin (27.8) (63.4) (92.6) (34.0) (139.1) (154.9) Subtract operating lease expenses paid by EPCO not reflected in gross operating margin (0.3) Add net gains or subtract net losses attributable to asset sales and insurance recoveries not reflected in gross operating margin (14.7) (11.6) Subtract non-refundable deferred revenues attributable to shipper make-up rights on new pipeline projects reflected in gross operating margin - - (4.4) (84.6) (39.3) (57.1) Add subsequent recognition of deferred revenues attributable to make-up rights Subtract general and administrative costs not reflected in gross operating margin (181.8) (170.3) (188.3) (214.5) (143.2) (206.8) Operating income (GAAP) $ 2,859.1 $ 3,109.2 $ 3,467.3 $ 3,775.7 $ 2,605.7 $ 3,526.7 ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 37

38 ADJUSTED EBITDA Adjusted EBITDA is commonly used as a supplemental financial measure by our management and external users of our financial statements, such as investors, commercial banks, research analysts and ratings 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 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 and because these measures may vary among other companies, the adjusted EBITDA data included in this presentation may not be comparable to similarly titled measures of other companies. The following table reconciles non-gaap adjusted EBITDA to net cash flows provided by operating activities, which is the most directly comparable GAAP financial measure to adjusted EBITDA (dollars in millions): For the Nine For the Twelve For the Year Ended December 31, Months Ended Months Ended September 30, 2015 September 30, 2015 Net income (GAAP) $ 2,088.3 $ 2,428.0 $ 2,607.1 $ 2,833.5 $ 1,864.9 $ 2,546.0 Adjustments to GAAP net income to derive non-gaap Adjusted EBITDA: Subtract equity in income of unconsolidated affiliates (46.4) (64.3) (167.3) (259.5) (302.5) (382.9) Add distributions received from unconsolidated affiliates Add interest expense, including related amortization Add provision for or subtract benefit from income taxes 27.2 (17.2) Add depreciation, amortization and accretion in costs and expenses , , , , ,474.0 Add non-cash asset impairment charges Add non-cash losses attributable to asset sales Add non-cash expense attributable to changes in fair value of the Liquidity Option Agreement Add losses and subtract gains attributable to unrealized changes in the fair market value of derivative instruments (25.7) (29.5) (7.7) 26.7 Adjusted EBITDA (non-gaap) 3, , , , , ,299.8 Adjustments to non-gaap Adjusted EBITDA to derive GAAP net cash flows provided by operating activities: Subtract interest expense, including related amortization, reflected in (744.1) (771.8) (802.5) # (921.0) (723.2) (964.6) Adjusted EBITDA Subtract provision for or add benefit from income taxes reflected in Adjusted EBITDA (27.2) 17.2 (57.5) # (23.1) (4.4) (5.0) Subtract gains attributable to asset sales and insurance recoveries (188.5) (106.4) (99.0) (109.8) (2.8) (7.3) Add deferred income tax expense or subtract benefit 12.1 (66.2) (13.3) (9.8) Add or subtract the net effect of changes in operating accounts, as applicable (582.5) (97.6) (108.2) (627.9) (300.3) Add or subtract miscellaneous non-cash and other amounts to reconcile non-gaap Adjusted EBITDA with GAAP net cash flows provided by operating activities Net cash flows provided by operating activities (GAAP) $ 3,330.5 $ 2,890.9 $ 3,865.5 $ 4,162.2 $ 2,591.2 $ 4,049.0 ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 38

39 DISTRIBUTABLE CASH FLOW Distributable cash flow is an important non-gaap financial measure for our limited partners since it serves as an indicator of our success in providing a cash return on investment. Specifically, this financial measure indicates to investors whether or not we are generating cash flows at a level that can sustain or support an increase in our quarterly cash distributions. Distributable cash flow is also a quantitative standard used by the investment community with respect to publicly traded partnerships because the value of a partnership unit is, in part, measured by its yield, which is based on the amount of cash distributions a partnership can pay to a unitholder. The following table reconciles non-gaap Distributable Cash Flow to net cash flows provided by operating activities, which is the most directly comparable GAAP financial measure to distributable cash flow for the periods presented (dollars in millions): For the Nine For the Year Ended December 31, Months Ended September 30, 2015 Net income attributable to limited partners (GAAP) $ 2,046.9 $ 2,419.9 $ 2,596.9 $ 2,787.4 $ 1,836.4 Adjustments to GAAP net income attributable to limited partners to derive non-gaap distributable cash flow: Add depreciation, amortization and accretion expenses 1, , , , ,147.7 Add distributions received from unconsolidated affiliates Subtract equity in income of unconsolidated affiliates (46.4) (64.3) (167.3) (259.5) (302.5) Subtract sustaining capital expenditures (296.4) (366.2) (291.7) (369.0) (195.8) Add net losses or subtract net gains from asset sales and insurance recoveries (155.7) (86.4) (83.3) (102.1) 14.7 Add cash proceeds from asset sales and insurance recoveries 1, , ,537.3 Add non-cash expense attributable to changes in fair value of the Liquidity Option Agreement Add gains or subtract losses from the monetization of interest rate derivative instruments (23.2) (147.8) (168.8) Add deferred income tax expenses or subtract benefit 12.1 (66.2) (13.3) Add non-cash asset impairment charges Add or subtract other miscellaneous adjustments to derive non-gaap distributable cash flow, as applicable (25.8) (39.5) (15.7) 73.2 (23.3) Distributable cash flow (non-gaap) 3, , , , ,518.5 Adjustments to non-gaap distributable cash flow to derive GAAP net cash flows provided by operating activities: Add sustaining capital expenditures reflected in distributable cash flow Subtract cash proceeds from asset sales and insurance recoveries reflected in distributable cash flow (1,053.8) (1,198.8) (280.6) (145.3) (1,537.3) Add losses or subtract gains from the monetization of interest rate derivative instruments (27.6) - Add or subtract the net effect of changes in operating accounts, as applicable (582.5) (97.6) (108.2) (627.9) Add or subtract miscellaneous non-cash and other amounts to reconcile non-gaap distributable cash flow with GAAP net cash flows provided by operating activities, as applicable (4.3) 42.1 Net cash flows provided by operating activities (GAAP) $ 3,330.5 $ 2,890.9 $ 3,865.5 $ 4,162.2 $ 2,591.2 ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 39

40 CONTACT INFORMATION Randy Burkhalter Vice President, Investor Relations (713) Jackie Richert Senior Manager, Investor Relations (713) ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 40