UBS MIDSTREAM & MLP 1x1 CONFERENCE

Transcription

1 ENTERPRISE PRODUCTS PARTNERS L.P. UBS MIDSTREAM & MLP 1x1 CONFERENCE January 9 1, 218 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 KEY INVESTMENT CONSIDERATIONS 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 optionality to producers and consumers History of successful execution of growth projects and M&A $38 billion of organic growth projects and $26 billion of major acquisitions since IPO in 1998 through 217E $5.2 billion of capital growth projects under construction $4.5 billion recently completed / commissioning New projects under development Low cost of capital; financial flexibility One of the highest credit ratings among MLPs: Baa1 / BBB+ Simplified structure with no GP IDRs for long term durability and flexibility Moving toward self funding to satisfy equity needs for organic growth Margin of safety with average distribution coverage of 1.2x and $646 million of retained DCF in last 12 months (excludes non recurring items) Consistent distribution growth: 53 consecutive quarters Financially strong, supportive GP committed for the long term ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 3

4 EPD S UNIQUE ADVANTAGE Financially Strong & Supportive GP Supportive and unlevered GP with significant ownership EPCO & Affiliates 1% EPCO and affiliates own 32% of LP units Eliminated 5% IDRs in 22 for no consideration Eliminated remaining IDRs in a non taxable transaction through waiver of $322 million in distributions from 211 through 215 no backdoor distribution cut Purchased $1.7 billion in EPD units since IPO including $1 million in 4Q217 Note: as of December 31,217 Public 68.1% L.P. Interest 31.9% L.P. Interest Enterprise Products Partners L.P. (NYSE: EPD) EPCO's ($MMs) Purchases 217 $ Pre $ 1,676 General Partner Non economic G.P. Interest ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 4

5 EPD: NATURAL GAS, NGLS, CRUDE OIL, PETROCHEMICALS AND REFINED PRODUCTS Asset Overview Pipelines: 5, miles of natural gas, NGL, crude oil, petrochemicals and refined products pipelines Storage: 26 MMBbls of NGL, petrochemical, refined products, and crude oil, and 14 Bcf of natural gas storage capacity Processing: 27 natural gas processing plants; 22 fractionators; 11 condensate distillation facilities Export Facilities: 18 deepwater docks handling ethane, LPG, PGP, crude oil and refined products Assets Under Construction / Commissioning Pipelines: 1, miles of pipelines Processing: 3 gas processing plants Petchem: 1 PDH and 1 ibdh facility Frac IX: Mont Belvieu Connectivity Fully integrated midstream energy company aggregating domestic supply directly connected to domestic and international demand Connected to U.S. major shale basins Connected to every U.S. ethylene cracker Connected to 9% of refineries East of Rockies 27 Gulf Coast PGP connections ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 5

6 ENTERPRISE EXPORT CAPACITY Linking U.S. Supplies to Global Demand ( 5 MMBPD) Beaumont West Beaumont East PERMIAN AND EAGLE FORD Sealy Enterprise HSC Mont Belvieu Morgan s Point ECHO Texas City Freeport / Jones Creek Max Loading YTD September Facility Product Ship Docks (1) Max Draft Capacity (2) Loading / Unloading MBPD MBPD Enterpri s e HSC Mul ti 7 45' 2, Texas City / Freeport Crude 4 45 / 42' 1, (3) Beaumont West Multi 4 4' Bea umont Ea s t Refi ned 1 4' Morgan's Point Ethane Total 18 4,996 1,368 (1) Excludes Barge Docks (2) Theoretical Max capacity assumes all volumes are destined for exports (displacing imports), and may not represent current operating scenario (3) Reflects net interest volumes for Seaway joint owned assets MBPD Loadings Unloadings Dock Activity: YTD Sept NGLs Crude & Condensate PetChem & Refined Products ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 6

7 DIVERSIFIED SOURCES OF CASH FLOW BACKED BY FEE BASED BUSINESS MODEL $5.5 Billion Total Gross Operating Margin for 12 months ended September 3, 217 Natural Gas Gathering & Processing Diminishing Contribution to Total Gross Operating Margin 57% 17% 13% 13% NGL Pipelines & Services Crude Oil Pipelines & Services Natural Gas Pipelines & Services Petrochemical & Refined Products Services Total GOM: $1,35 $ in Millions $1,2 $1,5 % contribution from G&P businesses has decreased with investments in fee based pipelines, fractionators and export facilities and lower commodity prices / volumes (1) Total gross operating margin amounts presented for NG Gathering and NG Processing are components of the total gross operating margin amounts historically reported for our Natural Gas Pipelines & Services and NGL Pipelines & Services segments, respectively. ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 7 $9 $75 $6 $45 $3 $15 $ $3,872 32% $864 $4,387 27% $832 $4,814 17% 15% $51 $5,25 $5,339 1% $535 $292 $5,248 $4,16 8% $169 9% $164 35% 3% 25% 2% 15% 1% $369 $332 $31 $259 $253 $247 $191 % M 217 (1) (1) NG Gathering NG Processing % of Total GOM 5% % of Total GOM

8 SUPPLY / DEMAND FUNDAMENTALS ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com

9 GLOBAL CRUDE BALANCES ARE IMPROVING REFINED PRODUCTS ARE TIGHTENING FAST MMBbls OECD Total Oil / Products Inventory MMBbls OECD Total Products Inventory IEA expects global oil demand to grow by 1.3 MMBPD in 218 after growing by 1.5 MMBPD in 2Q17 (this is taken from the IEA December report) Ten non OPEC countries cooperating on production cuts have achieved close to 1% compliance for the first time Meanwhile, U.S. producers are expected to continue to ramp up production, however their comments indicate capital discipline Producer forecasts and hedges for 218 will be closely scrutinized over next few weeks Sources: IEA and PIRA ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 9

10 ALL MAJOR U.S. CRUDE OIL BASINS HAVE SOLID RETURNS IN CORE ACREAGE 1% 35 1,4 Returns. Spending within cash flows, Buybacks, Paying down debt Themes that dominate 218 outlook for U.S. E&Ps 8% 6 Rate of Return 6% 4% Basin size in current production (MBPD) 1,5 Theoretical Investment Threshold 2% % DJ Niobrara HZ Midland Basin HZ Eagle Ford Oil Delaware Basin HZ Eagle Ford Cond Bakken Assumes $3/MMBtu Half cycle economics for core wells ROR High grade Highgrade ROR $55 $55 ROR High grade Highgrade ROR $45 Source: EPD Fundamentals ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 1

11 RECOVERY IN RIG COUNTS Permian Eagle Ford Haynesville ,5 2, 1,5 1, 5 1, Total U.S Source: Baker Hughes ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 11

12 HOW QUICKLY WILL DRILLED UNCOMPLETED WELLS (DUCs) TURN INTO PRODUCTION? # of Wells # of Wells 3, 2,5 2, 1,5 1, Permian 1,197 Haynesville 162 1, ,8 2,613 1,6 1,4 1,2 195 # of Wells # of Wells 1, , 7, 6, 5, 4, 3, 944 4,24 1,1 4,853 Eagle Ford 1,519 Total U.S. 6,261 1,189 5,458 1,441 7, , 1, Source: EIA ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 12

13 U.S. OIL & CONDENSATE SUPPLY POTENTIAL ASSUMING SUFFICIENT MARKETS (MBPD) AK & CA 1, Current ,2 ROCKIES 2, 1,8 1,6 1,97 2,21 1,755 Current MID CONTINENT APPALACHIAN Current Current , 12, 1, 8, 6, 4, 2, Total Supply 12,689 11,619 9,354 Current , 4, 3, 2, 1, PERMIAN 4,57 4,627 2,598 Current , 4, 3, 2, 1, GULF COAST 4,159 3,717 3,272 Current Source: EPD Fundamentals ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 13

14 PERMIAN BASIN BALANCES CRUDE OIL TAKEAWAY MBPD 6, Permian Crude Oil Balances (Using Capacities at 1% Load Factor) 5,5 5, 4,5 4, 3,5 Production 3, 2,5 2, 1,5 1, Existing 5 Jan 13 Jul 13 Jan 14 Jul 14 Jan 15 Jul 15 Jan 16 Jul 16 Jan 17 ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 14 Jul 17 Cactus Expansion 2 Midland to Sealy PE3 Midland to Sealy Expansion PE3 Expansion Basin Expansion S TX Gateway (Open Season) BridgeTex Expansion Cactus 2 EPD NGL Conversion Permian to CC (Open Season) Note: Does not include all potential projects under development Refining Jan 18 Jul 18 Jan 19 Jul 19 Jan 2 Jul 2 Jan 21 Jul 21 Jan 22 Sources: EPD Fundamentals and company filings

15 TO MATCH REFINERS PREFERRED FEED SLATE: Expect Light Oil Exports & Heavy / Medium Imports By 222 Global crude oil demand (excluding the U.S.) is expected to reach 7 73 MMBPD vs. 65 MMBPD today The U.S. is expected to export 4 MMBPD, which would represent <6% of global oil demand (ex. U.S.) MMBPD 22 Potential Exports: Mostly light oil and condensates 2 US Prod Light U.S. Demand for Crude: 16.7 US Prod Cond US Prod Medium 14 US Prod Heavy Light Oil Canadian Imports Imports Canada Imports: KSA, MEX & VEZ Other Imp PADD 5 Other Imp PADD 1 2 'Base' Imports Sources: EIA and EPD Fundamentals ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 15

16 ALL MAJOR U.S. NATURAL GAS BASINS HAVE SOLID RETURNS IN CORE ACREAGE 1% Rich Lean Basin size in current production (Bcf/d) 8% 2. Rate of Return 6% 4% Theoretical Investment Threshold % % Rich Scoop Stack Assumes $5/Bbl and $3/MMBtu Half cycle economics for core wells Rich Marcellus Pinedale Rich Utica Lean Marcellus Haynesville Lean Utica Fayetteville Source: EPD Fundamentals ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 16

17 2 AK & CA U.S. NATURAL GAS SUPPLY POTENTIAL ASSUMING SUFFICIENT MARKETS (BCF/D) Current ROCKIES Current MID CONTINENT Current APPALACHIAN Current Total Supply Current PERMIAN Current Current TX GULF COAST GULF COAST Current Source: EPD Fundamentals ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 17

18 U.S. NGL SUPPLY POTENTIAL ASSUMING SUFFICIENT MARKETS (MBPD) AK & CA Current ROCKIES Current ,5 1, APPALACHIAN 1,18 1,264 6,6 4,4 Total Supply 6,23 5,49 4, MID CONTINENT Current Current ,2 Current ,4 7 NGL Components Current Ethane 1,993 2,523 2,879 Propane 1,257 1,551 1,756 N. Butane Iso Butane Natural Gasoline Total 4,48 5,49 6,23 2,1 PERMIAN 1,111 1,76 2,28 Current GULF COAST 973 1,78 Source: EPD Fundamentals ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 18 1,5 1, 5 1,29 Current

19 U.S. LPG DEMAND IS EXPECTED TO REMAIN FLAT AS PRODUCTION GROWS MMBPD Industry Export Capacity at 85% Operating Rate LPG Supply LPG Domestic Demand Current LPG Exports Industry Export Capacity Addit'l Export Note: Includes butane, refinery production and imports Dock capacity calculated at 85% of nameplate Industrywide Sources: EPD Fundamentals and Company Announcements ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 19

20 U.S. IS THE LARGEST EXPORTER OF LPG LPG Exports by Destination through November 217 EPD LPG Exports by Destination Region through November 217: MBPD % of Cargos Loaded EPD% of Destination Market North America 14% 39% South America 21% 56% Europe / Africa 9% 3% Far East 56% 44% Other (Australia, Mid East, unknown) <1% 21% North America MBPD Market 57.6 MBPD (39%); EPD % of Market Other 16.5 MBPD 3.5 MBPD (21%) EPD Source: Waterborne South America MBPD 88.2 MBPD (56%) EPD Europe / Africa 127. MBPD 37.5 MBPD (3%) EPD MBPD 1,6 1,4 1,2 1, USA Far East MBPD MBPD (44%) EPD Top LPG Exporters in 213, 214, 215, 216 and YTD 217 EPD YTD 217 USA Qatar Qatar Algeria Algeria UAE UAE Saudi Saudi Norway Norway Iran Iran Kuwait Kuwait ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 2

21 2.5 1,5 CHINA AND INDIA LPG DEMAND MOSTLY FOR RESIDENTIAL; PRICE INSENSITIVE Population Million People China & India LPG Demand 2. 1, 5 U.S. LPG Demand MMBPD USA India China China Petchem China Heat Residential India Heat Residential IEA projects Chinese LPG demand, primarily from residential, could increase +25 MBPD ( ) largely due to availability of U.S. supplies. Chinese petchem demand is also expected to grow. In 214, IEA estimated that 78% ( 1 MMBPD) of China s LPG demand and 95% (575 MBPD) of India s LPG demand was residential IEA estimates India s LPG demand could increase +35 MBPD ( ) India s Ujjwala program will add +1 million new residential LPG connections from The population of just India and China together is 8x that of the U.S.! Sources: Bloomberg, IEA and EPD Fundamentals ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 21

22 U.S. GULF COAST ETHANE BALANCES MBPD 2,4 1,8 1, ,9 All Regions West of Appalachia Supply Potential 12 (1) 12 (1) +68 1, ,38 (1) +5? Utopia Export MBPD Appalachia Supply Potential Current Extraction Rejection Current Extraction Rejection Enhanced Recovery +95 New Cracker 22? : +3? to +8? Mariner East Export Current Demand : >1,2 MBPD Incremental Demand : +75 to +9 MBPD (1) EPD believes there is 12 MBPD of additional ethane that can be recovered at high prices Source: EPD Fundamentals ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 22

23 ETHANE MARKET LOOKS BALANCED! MBPD 2,5 2,25 Ethane Supply Demand on U.S. Gulf Coast 12 MBPD Enhanced Recovery Ethane 2, Total Formosa 1,75 Axiall / Lotte Sasol 1,5 1,25 1, Shintech Indorama XOM Chemical CPC Dow Chemical 75 OXY/Mexichem Exports 5 Existing Demand Enhanced Recovery 25 Rejection Extraction +ATEX Jul 16 Jan 17 Jul 17 Jan 18 Jul 18 Jan 19 Jul 19 Jan 2 Jul 2 Jan 21 Jul 21 Jan 22 Jul 22 Sources: EPD Fundamentals and public sources ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 23

24 NOT ALL ETHANE IS CREATED EQUAL Not all ethane can be recovered Equipment limitations, especially with older plants and very rich gas Economic limitations in remote regions MBPD 4 35 Recovered Ethane Bakken Rockies West, High Cost Rockies West Mid Con Permian Ethane Spread to NatGas Needed to Cover T&F (cpg) Eagle Ford Source: EPD Fundamentals ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 24

25 LOW GAS TO CRUDE SPREAD CONTINUING TO DRIVE U.S. NGL ADVANTAGE 7 6 Global Ethylene Cash Costs 7 55 Indicative U.S. Ethylene Cracker Profit Margin by Feedstock U.S. Cents per Pound Margin Cents per Pound (5) (2) US Ethane US Propane NWE Naphtha FEAsia Naphtha U.S. petrochemicals consumed a record 1.6 MMBPD of NGLs in 216 Industry added 2 new world scale ethylene crackers (+13 MBPD of ethane consumption in 217) U.S. petrochemical demand for ethane is currently 1.3 MMBPD after rebounding from effects of hurricane Harvey Sources: EPD Fundamentals, NYMEX, Hodson, EIA and CMAI MBPD 1,8 1,6 1,4 1,2 1, Ethane Propane Butane Lt Naphtha U.S. Ethylene Cracker Feedstocks >7% Growth YE 216 YE 22E Ethane Propane Butane Naphtha ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 25

26 THE CHEMICALS INDUSTRY IS MAKING LARGE INVESTMENTS BASED ON U.S. SHALES American Chemistry Council (ACC) analysis shows $164 billion in capital spending could lead to $15 billion per year in new chemical output Much of new investment geared towards export markets, helping to improve U.S. trade balance Company U.S. World Scale Ethylene Plants Under Construction Capacity Billion lb/year Ethane Consumption (MBPD) Ethane Consumption Cumulative (MBPD) Estimated Completion Date Location Occidental Chemical / Mexichem Operational Ingleside, TX Dow Chemical Operational Freeport, TX Chevron Phillips Chemical Q 218 Cedar Bayou, TX ExxonMobil Chemical Q 218 Baytown, TX Indorama Lake Charles, LA Shintech Plaquemine, LA Sasol Lake Charles, LA Formosa Plastics Point Comfort, TX Westlake/ Lotte Lake Charles, LA Total / Borealis / Nova Early 22s Port Arthur, TX Shell Early 22s Monaca, PA TOTAL Sources: American Chemistry Council and EPD Fundamentals ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 26

27 CRACKING ETHANE HAS A HIDDEN COST (OPPORTUNITY): FEW HEAVIER OLEFINS Feedstock Production* Ethylene Propylene Butylene Butadiene Other Ethane 78% % 1% 2% 19% Propane 42% 17% 1% 3% 37% Butane 4% 17% 7% 3% 33% Naphtha 31% 16% 4% 5% 44% Gas Oil 21% 15% 5% 4% 55% End Uses Consumer Plastics, Packaging, Vinyls, PVC, Antifreeze, etc. Durable Plastics, Paint, Fabrics, Containers, etc. Rubber, Lubricants, Motor Fuels & Additives, etc. Rubber, Carpet, Paper Coatings, Resins, etc. CRACKING ETHANE FOR ETHYLENE YIELDS FEW CO PRODUCTS, SUCH AS PROPYLENE AND BUTYLENE THUS THE ADVANTAGE OF ON PURPOSE PROPYLENE AND BUTYLENE * Percentages can vary slightly from cracker to cracker. Source: EPD Fundamentals ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 27

28 U.S. PROPYLENE INVENTORIES Million Barrels Sources: Bloomberg, ProphetX and EIA 5 Yr Range Yr Average ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 28

29 HOUSTON AREA VS. CORPUS CHRISTI AREA MARKET COMPARISON EAGLE FORD Corpus Christi Area Total Ship Docks 2 Storage Capacity (MMbbls) 22 Refining Capacity (MMBPD).95 Houston Area* Total Ship Docks >15 Storage Capacity (MMbbls) >3 Refining Capacity (MMBPD) 4.4 Houston 1.6 Beaumont 1.7 Texas City.8 Freeport.3 *Houston Area includes Houston, Beaumont, Texas City and Freeport Sources: Greater Houston Port Bureau and Company presentations ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 29

30 COMMERCIAL UPDATES ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com

31 $ in Billions $5. $4.5 $4. $3.5 $3. $2.5 $2. $1.5 $1. $.5 $. EPD VISIBILITY TO GROWTH $5.2B of Major Capital Projects with More to Come PDH facility Midland to Sealy PL $4.5 $.3 Petchem 27% Crude 15% NatGas 1% $1. NGL 58% Crude oil infrastructure Mont Belvieu Frac IX Orla I gas plant 217 1Q218 2Q218 3Q218 4Q Estimated Recently completed projects with expected volume ramps ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 31 $.3 PDH plant: commissioning / ramping to produce 25 MBPD of PGP in early 218 Midland to Sealy pipeline: currently in interim service, ramping to 45 MBPD in 2Q 218 Aegis ethane pipeline: 297 MBPD contracted in 218, ramping to 362 MBPD in 219 Front Range pipeline: 79 MBPD contracted in 218, ramping to 17 MBPD in 221 Texas Express pipeline: 23 MBPD contracted in 218, ramping to 244 MBPD in 222 Ref. Products infrastructure Orla II gas plant $.8 Orla III Gas Plant ibdh Shin Oak pipeline $2.8

32 EXPANDING NGL FOOTPRINT IN PERMIAN Announced Orla III Orla Gas Processing complex: Capacity of 9 MMcf/d inlet gas and 12 MBPD of NGL production Bringing Delaware Basin gas processing capacity to >1.2 Bcf/d and >2 MBPD of NGL production Building fully integrated processing system including South Eddy and Delaware Basin Gas Plant Also fully integrated with EPD s Texas intrastate gas system via new 68 mile, 36 pipeline to Waha Start up expected as follows: Orla I (2Q 218), Orla II (3Q 218) and Orla III (2Q 219) Shin Oak NGL Pipeline: 571 mile, 24 mixed NGL pipeline from Permian to Mont Belvieu Initial capacity of 25 MBPD, expandable to 6 MBPD Provides flexibility to convert pipeline from NGL to crude Would consider strategic partner JV to support an expansion Supported by long term customer commitments Expected in service: 2Q 219 Shin Oak Pipeline Mont Belvieu ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 32

33 EPD CONTRACTED LPG EXPORT LOADINGS 1,15 Cargos Contracted from , 14, Mbbls/Month 12, 1, 8, 6, LPG Export Capacity: 14. MMbbls/Month 4, 2, Note: Dock capacity calculated at 85% of nameplate capacity ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P Average Term Commitments (annual average) E 218E Operational Capacity 219E 22E 33

34 ETHANE EXPORT FACILITY Largest of Its Kind HOUSTON SHIP CHANNEL MORGAN S POINT Dock 8 Dock 7 Train 2 Train 1 2 Average Annual Contracted Volumes Forward Base w/option Volumes Note: Volume commitments for could vary depending on customer elections. MBPD Combined operating loading rate of 2 MBPD across two docks Loaded 135 MBPD of ethane exports in 4Q miles of 24 P/L MTBV to Morgan s Point ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 34

35 MIDLAND TO HOUSTON CRUDE PIPELINES Expanding to >65 MBPD NEW 15 MEXICO MBPD Midland to Sealy Contracted Volumes in Annual Averages Midland Terminal Eagle Ford Terminal (JV) Seaway (JV) Red River Gathering West Texas Gathering Basin (JV) Midland to Sealy T E Eagle X A Ford SPipeline (JV) Eagle Ford Gathering (JV) South Texas Legacy Eagle Ford EFS Liquids Gathering Rancho II EHSC System EDS Header TEXAS * *218 volume commitments could vary depending on commercial operational start up Repurpose NGL Pipeline to Crude Service Marshall Milton Lyssy Gardendale O K L A H O M A Three Rivers Cushing Sealy Corpus Christi Beaumont EHSC Katy ECHO Jones Creek Freeport Texas City Midland to Sealy 416 mile, 24 pipeline from Midland to Sealy segment connects to Sealy storage facility Sealy connected to ECHO by existing 1. MMBPD Rancho II pipeline Currently in interim service; expected to ramp to 45 MBPD in early 2Q 218 Competitive advantages Origin not dependent on 3 rd party pipelines Direct route from Midland to Gulf Coast WTS, WTI, Light WTI and condensate Destination can efficiently distribute barrels to markets on Texas Gulf Coast Repurpose of NGL Line to Crude 2 MBPD of crude capacity Expected to be completed in 1H 22 Supported by strong customer demand ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 35

36 MIDLAND CRUDE OIL CONNECTIVITY Growing to 4 MMBbls with Access to Multiple Markets BASIN (14%) Colorado City Wichita Falls Cushing PAA CACTUS MIDLAND AREA Mesa Plains / Basin Centurion Sunoco PET EPD WTX GATHERING EPD LOVING COUNTY ENTERPRISE Plains McCamey Gardendale Three Rivers Lyssy EPD EAGLE FORD Freeport / Jones Creek Houston Beaumont / Nederland Corpus Texas City ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 36

37 CRUDE OIL DISTRIBUTION SYSTEM Connectivity to 4 MMBbls Refining Capacity Capability to Load >4 MMBPD of Crude Oil / Refined Products Moore Road Cushing 36 /24 /24" 24" 24" Refinery ECPL Pipeline ECPL Pipeline Under Construction Seaway Pipeline EHSC Pipeline EHSC Pipeline Under Construction Third Party Pipeline Storage Terminal Dock Sealy P66 Katy Rancho II 36 Jones Creek Galena Park VLO H.R. PRSI ECHO Seaway Longhaul and Loop / Twin 2 x 3 Seaway TX City Jones Creek 36 Lateral 36 Freeport 42 draft 24" 3" Texas City 45 draft EHSC 24" 3 /3 /24 Shell SDP Junction 24" 3 Pasadena Junction 36" Beaumont / Port Arthur Lateral 3 GBR 45 draft Baytown VLO XOM MPC Beaumont Motiva VLO TOT XOM BMW / BME 4 draft ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 37

38 PDH & ibdh Extending the Value Chain w/petchem Ethane Gas Liquids Feed to Petchems Fuel (Nat Gas) Export NGL Fractionation Propane Butane Feed to Petchems Fuel (Heating & Crop Drying) Export Feed to Petchems Fuel (Motor) Export PDH ibdh Propylene (fabrics, plastics, paints, etc) Butylene (lubricants, fuels, rubbers, additives, etc.) Moving Down the Value Chain ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 38

39 PDH FACILITY New PGP supply is needed since other industry PDH projects are on hold or cancelled, and other industry derivative capacity expansions are in progress Designed to produce 1.65 billion lbs/year (25 MBPD) of PGP with potential volume upside Consume 35 MBPD of propane 1% of capacity subscribed under fee based contracts with investment grade companies averaging 15 years Currently commissioning Expected to ramp in early 218 ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 39

40 ISOBUTYLENE VALUE CHAIN Continuing Strategy: Convert low cost NGLs into value added olefins EPD Assets Y Grade N butane Isobutane Crude Isobutylene MTBE Gas Plants Fractionation Storage Caverns Isomerization isobutane DeHydro (ibdh) Crude Isobutylene High Purity IsoButylene (HPIB) Existing DeHydro Unit (within MTBE Unit) has been operating for 23 years There continues to be very high growth in isobutylene derivative markets As the isobutylene market demand has grown (particularly for octane enhancers, fuel and lubricants additive packages) the opportunity cost of the idle capacity in our existing derivative units, MTBE and High Purity Isobutylene (HPIB), has become more acute ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 4

41 Capacity ibdh Converting Low Cost NGLs into Value Added Olefins 425 kta = 937 million pounds of isobutylene annually Doubles Enterprise capacity Will consume 3 MBPD isobutane Schedule Engineering is in full swing Permits have been received Key long leads have been ordered Completion expected 4Q 219 Contracts 5% will fill Crude Isobutylene sales with 15 year (average) fee based contracts with investment grade companies, all on a feedstock cost plus basis 25% will fill EPD s idle HPIB capacity for lubricants, additives, and rubber, all on a feedstock cost plus basis 25% will fill EPD s idle MTBE capacity into the export motor gasoline market ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 41

42 INCREASING ETHYLENE & PROPYLENE INFRASTRUCTURE Ethylene Infrastructure Mont Belvieu ethylene cavern conversion will have capacity of >6 million lbs; expected in service 1Q 219 Eight (8) ethylene pipelines within.5 mile of EPD ethylene storage system Plan to build new ethylene pipeline from Mont Belvieu to Bayport Potential JV project to add ethylene export services at Morgan s Point On going negotiations Propylene Infrastructure Added PGP Export Capability at Houston Ship Channel Terminal in 3Q 216 North Dean Pipeline expansion completed 1Q 217 Texas to Louisiana PGP Pipeline expansion project Expected in service 2Q 22 Will extend system from S. Texas to SE Louisiana ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 42

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

44 SOLID OPERATING PERFORMANCE Million BPD Onshore Liquids Pipeline Volumes (1) Equity NGL Production MBPD Equity NGL Production & Fee based Processing Bcf/d Fee based Processing M M ,1 NGL / Propylene Fractionation & Butane Isomerization 14 Onshore Natural Gas Pipeline Volumes (1) MBPD 1, ,9 1,4 Tbtu/d M 217 (1) Excludes offshore volumes prior to M 217 ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 44

45 MARINE TERMINAL / DOCK ACTIVITY MBPD MBPD M 217 Unloadings (1) Excludes Oiltanking volumes prior to October 1, 214 (2) Reflects net interest volumes for joint owned assets. (3) Includes barge activity. Crude Oil & Condensate (1,2) M Natural Gas Liquids (3) MBPD MBPD M 217 1,5 Total Volumes 1,32 1,381 1,25 1,219 1, , M 217 Loadings ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P Petrochemical & Refined Products (1)

46 STRONG FINANCIAL RESULTS $ Billions $6. $5. $4. $3. $2. Total Gross Operating Margin ( Total GOM ) $5.2 $5.3 $5.2 $4.8 $4.2 $ Billions $6. $5. $4. $3. $2. $3.8 $3.7 Distributable Cash Flow ( DCF ) (1) $5.6 $4.1 $4.1 $3.9 $4. $4.1 $3.2 $1. $1. $ per Unit $. $1.75 $1.65 $1.55 $1.45 $1.35 $ M 217 Distributions Declared (Adjusted for 2 for 1 Split in August 214) $1.68 $1.37 $1.45 $1.53 $ M 217 Annualized M 217 Non recurring items (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. $ Billions ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 46 $. $3. $2.5 $2. $1.5 $1. $.5 $ M 217 Retained DCF / Coverage (1,2) $2.6 $ x $ x $ x $ x 1.9x $1. 1.3x $.7 1.2x $.5 1.2x

47 EPD HAS DELIVERED CONSISTENT RESULTS THROUGHOUT CYCLES $16 $14 Total Gross Operating Margin (1) $12 $/bbl $1 $8 $6 $ millions $4 Distributable Cash Flow (1,2) $2 $ WTI Crude EPD Gross Operating Margin EPD DCF w/o Non Recurring (1) Total 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 net receipts/payments from the monetization of interest rate derivative instruments). Sources: EPD and Bloomberg ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 47

48 WHICH HAS SUPPORTED DISTRIBUTION GROWTH $16 $1.8 $14 $1.6 $12 $1.4 $1 $1.2 $/bbl $8 $1. $.8 $/unit $6 $.6 $4 $2 $ CAGR: EPD Distribution per Unit (1) 2Q 24 3Q % Last 3 Years 5.% 1 Year 4.3% $.4 $.2 $ WTI Crude Annualized Distribution per Unit (1) The compound annual growth rate (CAGR) is a useful measure of growth over multiple time periods. It represents the growth rate that gets you from the initial investment value to the ending investment value if you assume that the investment has been compounding over time. Sources: EPD and Bloomberg ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 48

49 WHILE BUILDING A MARGIN OF SAFETY FOR FUTURE GROWTH $1,2 $1, Cumulative Retained DCF and % of Total DCF 2Q 24 3Q 217 $7,176 19% Last 3 Years $2,421 17% Last 12 M onths $646 15% $8 $ millions $6 $4 $2 $ Retained EPD DCF DCF w/o w/o Non Recurring Recurring (1) Cash Distributions (1) Retained distributable cash flow (Retained DCF) represents the excess of our distributable cash flow over the amount of cash distributions we paid with respect to a period. The Retained DCF amounts presented in this slide exclude non recurring cash transactions (e.g., proceeds from asset sales and property damage insurance claims and net receipts/payments from the monetization of interest rate derivative instruments). ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 49 (1)

50 EPD HAS DELIVERED THROUGHOUT THE CYCLE $12 $2.5 $/bbl $1 $8 $6 $4 $ x $ x $ x $ x $ x $ x $ x $2. $1.5 $1. Operational DCF/Unit $2 $.5 $ Mos 217 "Operational" DCF per Fully Diluted Unit (1,2) WTI Crude price (Annual Average) (1) Operational DCF represents distributable cash flow (DCF) per unit excluding non recurring cash transactions. Distributable cash flow per unit is determined by dividing DCF for a period by the average number of fully diluted common units outstanding for that period. Non recurring cash transactions reflect proceeds from asset sales and property damage insurance claims and net receipts/payments from the monetization of interest rate derivative instruments. (2) Fully Diluted units are inclusive of Class B units issued in the merger with Enterprise GP Holdings (3) The compound annual growth rate (CAGR) is a useful measure of growth over multiple time periods. It represents the growth rate that gets you from the initial investment value to the ending investment value if you assume that the investment has been compounding over time. Sources: EPD and Bloomberg ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 5 $

51 DURING CYCLE, GROWTH MORE THAN OFFSETS COMMODITY PRICE HEADWINDS $ % CAGR (3) $2. $1.5 ($.37) $.72 $1. $.5 $ x $ x $ x $ 211 Impact from Lower Gas Processing & Octane Enhancement Margins Growth: New Assets & Base Businesses Operational DCF per fully diluted unit (1,2) Mos 217 (1) Operational DCF represents distributable cash flow (DCF) per unit excluding non recurring cash transactions. Distributable cash flow per unit is determined by dividing DCF for a period by the average number of fully diluted common units outstanding for that period. Non recurring cash transactions reflect proceeds from asset sales and property damage insurance claims and net receipts/payments from the monetization of interest rate derivative instruments. (2) Fully Diluted units are inclusive of Class B units issued in the merger with Enterprise GP Holdings (3) The compound annual growth rate (CAGR) is a useful measure of growth over multiple time periods. It represents the growth rate that gets you from the initial investment value to the ending investment value if you assume that the investment has been compounding over time. ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 51

52 EPD HAS DELIVERED CONSISTENT RETURNS THROUGHOUT CYCLES 12 16% $/Bbl % 12% 11% 11% 11% 12% 13% 13% 13% 12% 11% 1% 11% 14% 12% 1% 8% 6% Unlevered ROIC % 4% 2 2% Sept. 3, (1) ROIC WTI Crude price (Annual Average) 217 (1) Return on Invested Capital (ROIC) is calculated by dividing non GAAP gross operating margin for the assets (the numerator) by the average GAAP historical cost of the underlying assets (the denominator). The average historical cost includes fixed assets, investments in unconsolidated affiliates, intangible assets and goodwill. Like gross operating margin, the historical cost amounts used in determining ROIC are before depreciation and amortization and reflect the original purchase cost. (2) Pre 28 is based on EPD reported results (not recast for Mergers) (3) 28 and 29 reflect the recast financial statements of Enterprise giving effect to the TEPPCO and Holdings mergers. Sources: EPD and Bloomberg ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 52 %

53 EPD S ROADMAP TO SELF FUNDING EQUITY PORTION OF GROWTH CAPEX EPD s goal is to self fund equity portion of organic growth capital growth investments in 219 Road Map to Self Funding Equity in 219 ($ in millions) Potential 219 Growth Capital Investment $ 3, 5% Funded with Equity & Retained DCF $ 1,5 Less: LTM Retained DCF (1) $ (692) Less: Annualized Savings from Moderating Distribution Growth $ (15) Minimum Incremental DCF Needed from base business, ramp of recently completed projects, and new projects placed into service to Self Fund Benefits: Enhances financial flexibility Strengthens balance sheet Less reliance on equity capital markets Creates greater long term value $ 659 (1) Total retained distributable cash flow as of 9/3/217 ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 53

54 $ in Billions $8. $7. $6. $5. $4. $3. $2. $1. DEMONSTRATED FINANCIAL DISCIPLINE WHILE EXECUTING GROWTH STRATEGY 4.2x $1.5 $ x Total Growth Capex & Debt Leverage $ x $ x $ x $7.8 $4.6 $ x (1) $6.2 $ x $ x 4.3x (3) $3.9 $1. $2.9 4.x (2) 3.8x (2,3) $.2 $2.9 $ x 4.5x 4.3x 4.1x 3.9x 3.7x 3.5x Debt / Adjusted EBITDA $ E Actual Oiltanking, EFS Midstream & Azure Debt Leverage Ratio (214/215) (215/216) (1) Proforma includes full year EBITDA for Oiltanking (2) Adjusted for an incremental.2x /.2x of leverage (216 & TTM September 217) was associated with proportional contracted cash flows from projects under construction and an additional.2x/.3x (216 / TTM September 217) for elevated working capital associated with short term contango across commodities (3) Trailing 12 months September 217 ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 54 (217) 3.3x

55 STRENGTHENING DEBT PORTFOLIO Extending Maturities Without Increasing Costs $21.3 Billion Notes Issued 29 August % Fixed Rate Debt 8.% 46.9% 8.9% 11.9% 32.3% Average Maturity Years % 5.8% % % % 4.7% 4.5% 4.5% 7.% 6.% 5.% Cost of Debt 3 Year 5 Year 1 Year 3+ Year 1. 4.% Average Maturity * to First Call Date Average Cost of Debt * Assuming first call date for hybrids ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 55

56 NGL Pipeline & Services EPD VISIBILITY TO GROWTH $5.2B of Major Capital Projects with More to Come Q 218 2Q 218 3Q 218 4Q South Eddy (Permian) gas plant 2 MMcf/d & related pipelines Done Ethane export facility on Gulf Coast Done Delaware Basin gas plant (Oxy JV) 15 MMcf/d & related pipelines Done South Texas 16" ethane pipeline expansion Done ATEX Express ethane pipeline 25 MBPD expansion Done Mont Belvieu Frac 9 85 MBPD (2Q 218) Orla gas plants 9 MMcf/d & related pipelines (2Q, 4Q218 & 219) Mont Belvieu storage & brine handling expansion (3Q 218) Aegis ethane pipeline Phase 2 (4Q 218) Shin Oak (Permian to Mont Belvieu) 571 mile 24" NGL pipeline (219) Crude Oil Pipelines & Services Appelt & Beaumont storage terminal expansions (1Q 4Q218) Done ECHO addtional storage & 55 miles of 36" pipelines (1Q 218) EFS gathering & condensate pipeline projects (3Q 218) Done Midland to Sealy 24" crude oil pipeline from 3 MBPD to 45 MBPD (2Q 218) Done Permian pipelines Red Hills Loving Midland (2Q 218) & Gathering (4Q 218) Eagle Ford (JV) crude oil dock at Corpus Christi (3Q 218) Petrochemical & Refined Products Services Expansion of propylene pipeline system Done Propane Dehydrogenation ("PDH") unit (217, ramping through early 218) Done Refined products export dock Beaumont expansion (1Q 4Q 218) Done Done Ethylene storage & 24 mile 12" pipeline from Mont Belvieu to Bayport, TX (219) Isobutane Dehydrogenation ( ibdh ) unit (4Q 219) Other Natural Gas Pipelines & Services Permian (South Eddy) Sand Dunes gathering system (219) Value of capital placed in service ($ Billions) $ 2.2 $ 4.5 $ $ $ $ $ Value of remaining capital projects to be placed in service ($ Billions) $ $ $.3 $ 1. $.3 $.8 $ 2.8 ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 56

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

58 TOTAL GROSS OPERATING MARGIN We evaluate segment performance based on our financial measure of gross operating margin. Gross operating margin is an important performance measure of the core profitability of our operations and forms the basis of our internal financial reporting. We believe that investors benefit from having access to the same financial measures that our management uses in evaluating segment results. The term "total gross operating margin" represents GAAP operating income exclusive of (i) depreciation, amortization and accretion expenses, (ii) impairment charges, (iii) gains and losses attributable to asset sales, insurance recoveries and related property damage and (iv) general and administrative costs. Total gross operating margin includes equity in the earnings of unconsolidated affiliates, but is exclusive of other income and expense transactions, income taxes, the cumulative effect of changes in accounting principles and extraordinary charges. Total gross operating margin is presented on a 1% basis before any allocation of earnings to noncontrolling interests. The GAAP financial measure most directly comparable to total gross operating margin is operating income (dollars in millions). For the Nine For the Twelve For the Year Ended December 31, Months Ended Months Ended September 3, 217 September 3, 217 Gross operating margin by segment: NGL Pipelines & Services $ 2,184.2 $ 2,468.5 $ 2,514.4 $ 2,877.7 $ 2,771.6 $ 2,99.6 $ 2,386.8 $ 3,171.1 Crude Oil Pipelines & Services Natural Gas Pipelines & Services Petrochemical & Refined Products Services Offshore Pipelines & Services Other Investments Total segment gross operating margin (a) 3, ,387. 4, , , ,23.7 4, ,512.3 Net adjustment for shipper make up rights (b) (4.4) (81.7) Total gross operating margin (non GAAP) 3, ,387. 4, ,24.8 5, , ,16.3 5,517.6 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) (1,61.7) (1,148.9) (1,282.7) (1,428.2) (1,456.7) (1,139.3) (1,51.4) Subtract asset impairment and related charges not reflected in gross operating margin (27.8) (63.4) (92.6) (34.) (162.6) (52.8) (35.2) (59.3) Subtract operating lease expenses paid by EPCO not reflected in gross operating margin (.3) Add net gains or subtract net losses attributable to asset sales and insurance recoveries not reflected in gross operating margin (15.6) Subtract general and administrative costs not reflected in gross operating margin (181.8) (17.3) (188.3) (214.5) (192.6) (16.1) (137.4) (176.5) Operating income (GAAP) $ 2,859.1 $ 3,19.2 $ 3,467.3 $ 3,775.7 $ 3,54.2 $ 3,58.7 $ 2,849.5 $ 3,772.7 (a) Within the context of this table, total segment gross operating margin represents a subtotal and corresponds to measures similarly titled and presented with the business segment footnote found in our consolidated financial statements. (b) Gross operating margin by segment for NGL Pipelines & Services and Crude Oil Pipelines & Services reflect adjustments for shipper make up rights that are included in management's evaluation of segment results. However, these adjustments are excluded from non GAAP total gross operating margin in compliance with recently issued guidance from the SEC. ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 58

59 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 AdjustedEBITDAdataincludedinthispresentationmay 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 3, 217 September 3, 217 Net income (GAAP) $ 2,88.3 $ 2,428. $ 2,67.1 $ 2,833.5 $ 2,558.4 $ 2,553. $ 2,58.3 $ 2,728. 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) (373.6) (362.) (315.2) (47.4) 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) (2.5) Add depreciation, amortization and accretion in costs and expenses ,94.9 1, , , , , ,543.8 Add asset impairment and related charges Add non cash net losses or subtract net gains attributable to asset sales and insurance recoveries (2.5) (1.1) (1.3) 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 commodity derivative instruments (25.7) (29.5) (18.4) 45. (14.1) (11.2) Adjusted EBITDA (non GAAP) 3,995. 4, , ,29.6 5, , ,73.3 5,428.4 Adjustments to non GAAP Adjusted EBITDA to derive GAAP net cash flows provided by operating activities: Subtract interest expense, including related amortization, reflected in Adjusted EBITDA (744.1) (771.8) (82.5) (921.) (961.8) (982.6) (739.) (986.) Subtract provision for or add benefit from income taxes reflected in Adjusted EBITDA (27.2) 17.2 (57.5) (23.1) 2.5 (23.4) (2.1) (3.4) Subtract net gains attributable to asset sales and insurance recoveries (188.5) (16.4) (99.) (19.8) (3.3) Subtract distributions received for return of capital from unconsolidated affiliates (71.) (36.8) (55.9) Add deferred income tax expense or subtract benefit 12.1 (66.2) (2.6) Add or subtract the net effect of changes in operating accounts, as applicable (582.5) (97.6) (18.2) (323.3) (18.9) (512.1) (23.3) 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) $ 3,33.5 $ 2,89.9 $ 3,865.5 $ 4,162.2 $ 4,2.4 $ 4,66.8 $ 2,819.9 $ 4,227.7 ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 59

60 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 3, 217 Net income attributable to limited partners (GAAP) $ 2,46.9 $ 2,419.9 $ 2,596.9 $ 2,787.4 $ 2,521.2 $ 2,513.1 $ 2,25.3 Adjustments to GAAP net income attributable to limited partners to derive non GAAP distributable cash flow: Add depreciation, amortization and accretion expenses 1,7. 1,14.9 1, ,36.5 1,516. 1,552. 1,221.4 Add distributions received from unconsolidated affiliates Subtract equity in income of unconsolidated affiliates (46.4) (64.3) (167.3) (259.5) (373.6) (362.) (315.2) Subtract sustaining capital expenditures (296.4) (366.2) (291.7) (369.) (272.6) (252.) (164.1) Add net losses or subtract net gains from asset sales and insurance recoveries (155.7) (86.4) (83.3) (12.1) 15.6 (2.5) (1.1) Add cash proceeds from asset sales and insurance recoveries 1,53.8 1, , Add non cash expense attributable to changes in fair value of the Liquidity Option Agreement Add net gains or subtract net 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) (2.6) Add asset impairment and related charges Add or subtract other miscellaneous adjustments to derive non GAAP distributable cash flow, as applicable (25.8) (39.5) (15.7) 73.2 (37.4) Distributable cash flow (non GAAP) 3, , ,75.4 4,78.6 5,67.3 4,12.8 3,245.4 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 (1,53.8) (1,198.8) (28.6) (145.3) (1,68.6) (46.5) (6.2) Add net losses or subtract net gains from the monetization of interest rate derivative instruments (27.6) (6.1) (3.6) Add or subtract the net effect of changes in operating accounts, as applicable (582.5) (97.6) (18.2) (323.3) (18.9) (512.1) 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) 54.4 (54.5) (4.7) Net cash flows provided by operating activities (GAAP) $ 3,33.5 $ 2,89.9 $ 3,865.5 $ 4,162.2 $ 4,2.4 $ 4,66.8 $ 2,819.9 Average fully diluted units outstanding during period (millions) , ,8.2 2,1.1 2,155.2 ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 6