FINANCIAL PERFORMANCE EPD UNIT PRICE 8/23/17 CURRENT ANNUALIZED DISTRIBUTION 26.02 1.68/Unit YIELD RANKING ON FORTUNE 500 6.5% 122 SENIOR UNSECURED DEBT RATINGS MOODY S/STANDARD & POOR S Baa1/BBB+ PARTNERSHIP PROFILE ENTERPRISE PRODUCTS PARTNERS L.P. IS ONE OF THE LARGEST PUBLICLY TRADED PARTNERSHIPS and a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, petrochemicals and refined products Raised cash distribution 52 consecutive quarters Balanced distribution growth while retaining cash flow Significant insider ownership with management and affiliates owning approximately 32 percent Investment grade credit rating with focus on financial flexibility 2ND QUARTER 2017 FACT SHEET EPD NYSE DISTRIBUTION REINVESTMENT PLAN AVAILABLE TO ALL UNITHOLDERS OFFERS 5% DISCOUNT ON REINVESTED UNITS VISIT THE INVESTOR RELATIONS SECTION FOR DRIP PROSPECTUS. ENTERPRISEPRODUCTS.COM
LARGEST GROWTH CAPITAL PROJECTS FINANCIAL HIGHLIGHTS SECOND QUARTER 2017 EARNINGS HIGHLIGHTS Enterprise generated distributable cash flow of 1.1 billion for the second quarter of 2017, which provided 1.2 times coverage of the 0.42 per unit cash distribution declared for the second quarter of 2017 and resulted in 145 million of retained distributable cash flow. For the first six months of 2017, distributable cash flow of 2.2 billion provided 1.2 times coverage of the aggregate 0.835 per unit cash distribution, and Enterprise retained 381 million of distributable cash flow, which is available to reinvest in growth capital projects and reduce the need to issue additional equity. Enterprise reported increases in all of its primary financial measures and most operational metrics for the second quarter of 2017, reflecting its strength supported by the diversification of its businesses and the geographical reach of its asset footprint. The partnership s businesses at its Mont Belvieu complex, its gas processing facilities and pipelines handling Permian, Rockies and Marcellus production generated strong growth in the second quarter of 2017. Enterprise is seeing a volume response to producer activities in the Permian and Haynesville regions and believes the increase in rig counts and drilled, uncompleted wells will result in higher levels of production flowing into its system later in 2017 and in 2018. Total capital spending was 869 million in the second quarter of 2017, and 1.3 billion for the first six months of 2017. Included in these investments were sustaining capital expenditures of 62 million in the second quarter of 2017 and 110 million in the first six months of 2017. For 2017, we currently expect to invest in the range of 2.8 billion to 3.0 billion for growth capital projects, including 191 million for the Azure Midstream Partners acquisition, and approximately 250 million for sustaining capital expenditures. DISTRIBUTION ANNOUNCEMENT On July 05, 2017, Enterprise announced an increase in the partnership s quarterly cash distribution with respect to the second quarter, 2017 to 0.42 per unit, representing a 5.0 percent increase over the distribution paid with respect to the second quarter of 2016. This was the 61st increase since the initial public offering in July 1998 and the 52nd consecutive quarterly increase. TWO FOR ONE SPLIT OF COMMON UNITS On July 15, 2014, Enterprise announced a two-for-one split of common units representing limited partner interests. The common unit split was accomplished by distributing one additional common unit for each common unit outstanding. ELIMINATED GENERAL PARTNER INCENTIVE DISTRIBUTION RIGHTS ( IDRS ) In November 2010, Enterprise amended its partnership agreement to eliminate the general partner s IDRs. 1 2 3 4 5 6 ORLA PROCESSING PLANT IN JUNE 2017, ENTERPRISE ANNOUNCED ORLA II, A SECOND TRAIN AT THE PROCESSING FACILITY CURRENTLY UNDER CONSTRUCTION IN REEVES COUNTY NEAR ORLA, TEXAS. This will add 300 million cubic feet per day ( MMcf/d ) of incremental processing capacity to the facility and will bring the partnership s total Permian basin natural gas processing capacity to more than 1 billion cubic feet per day ( Bcf/d ) and more than 150 thousand barrels per day ( MBPD ) of Natural gas liquid ( NGL ) extraction capacity in the Permian Basin. The Orla II capacity is expected to be available in the third quarter of 2018. SHIN OAK PIPELINE The Shin Oak NGL pipeline will originate at the Hobbs facility in Gaines County, Texas. The 24-inch diameter pipeline is expected to have an initial design capacity of 250 MBPD and be expandable to 600 MBPD. The project is supported by long-term shipper commitments, primarily being fed by the Enterprise processing facilities, and is expected to be placed into service during the second quarter of 2019. PDH FACILITY IN APRIL 2017, ENTERPRISE ANNOUNCED PLANS TO BUILD A 571-MILE PIPELINE TO TRANSPORT GROWING NGL PRODUCTION FROM THE PERMIAN BASIN TO ITS NGL FRACTIONATION AND COMPLEX LOCATED IN MONT BELVIEU, TEXAS. THE PROPANE DEHYDROGENATION ( PDH ) FACILITY IS DESIGNED TO PRODUCE UP TO 1.65 BILLION POUNDS (25,000 BPD) PER YEAR OF POLYMER GRADE PROPYLENE. The new facility, located in Mont Belvieu, Texas, will integrate with the partnership s existing propylene fractionation facilities, and provide operational reliability and flexibility for both the PDH facility and fractionation facilities. The PDH facility is supported by long-term, fee-based contracts and is expected to be completed and begin commercial service in September-2017. AND CONDENSATE PIPELINE MIDLAND-TO-SEALY PIPELINE. Enterprise announced plans to build a 400-mile, 24-inch diameter crude oil and condensate pipeline to transport product (in four segregated batches) from Midland, Texas to the Enterprise Sealy storage facility west of Houston. From Sealy, the new pipeline would link to Enterprise s ECHO terminal through an interconnect with the Rancho II pipeline. Through ECHO, customers will have direct access to every refinery in Houston, Texas City, Beaumont and Port Arthur, as well as Enterprise s dock facilities. Commercial service is expected to begin at the end of 2017, ramping to 450 MBPD through early 2018. NINTH MONT BELVIEU FRACTIONATOR IN MARCH 2017, ENTERPRISE RESUMED CONSTRUCTION OF ITS NINTH NGL FRACTIONATOR AT OUR MONT BELVIEU, TEXAS COMPLEX IN ANTICIPATION OF INCREASED NGL PRODUCTION FROM THE PERMIAN BASIN. The new fractionator, which is expected to be completed by mid-2018, will have a nameplate capacity of 85 MBPD. Upon completion of this expansion project, we would have approximately 755 MBPD of total NGL fractionation capacity at the Mont Belvieu complex and a combined 1.2 MMBPD of capacity company wide. ISOBUTANE DEHYDROGENATION UNIT AT MONT BELVIEU IN JANUARY 2017, ENTERPRISE ANNOUNCED PLANS TO CONSTRUCT A NEW ISOBUTANE DEHYDROGENATION ( IBDH ) UNIT AT ITS MONT BELVIEU COMPLEX THAT IS EXPECTED TO HAVE THE CAPABILITY TO PRODUCE 425,000 TONS PER YEAR OF ISOBUTYLENE. The project, which is underwritten by long-term contracts with investment-grade customers, is expected to be completed in the fourth quarter of 2019. Isobutylene produced by the new plant will provide additional feedstocks for downstream octane enhancement and petrochemical facilities.
MAJOR MERGERS & ACQUISITIONS SEPTEMBER 1999: The partnership completed a 529 million acquisition of Shell Oil Company s Louisiana and Mississippi Midstream NGL business. AUGUST 2002: The partnership completed a 1.2 billion acquisition of the MAPL and Seminole NGL pipelines from Williams. SEPTEMBER 2004: OCTOBER 2009: The partnership completed TEPPCO Partners, L.P. a 6 billion merger with [ TPP ]. TPP unitholders GulfTerra Energy Partners, received 1.24 EPD common L.P. ( GTM ). TPP limited partner unit. BAKKEN GREEN RIVER POWDER RIVER UINTA DJ PICEANCE NEW ALBANY MISSISSIPPIAN SAN JUAN GRANITE WASH FAYETTEVILLE WOODFORD 2 HAYNESVILLE PERMIAN 1 4 BARNETT 3,5,6 TUSCALOOSA MARINE EAGLE FORD ASSET OVERVIEW 22 NGL AND PROPYLENE FRACTIONATION FACILITIES 260 MMBBLS OF NGL, & PETROCHEMICAL/REFINED PRODUCTS CAPACITY 116 MBPD OF BUTANE ISOMERIZATION CAPACITY (MONT BELVIEU) 27 PROCESSING PLANTS 14 BCF OF CAPACITY 18 IMPORT/EXPORT SHIP TERMINALS 11 CONDENSATE DISTILLATION FACILITIES 5,400 MILES OF 19,850 MILES OF 24,650 MILES OF NGL, PETROCHEMICAL AND REFINED PRODUCTS
NOVEMBER 2010: Enterprise GP Holdings L.P. [ EPE ]. EPE unitholders received 1.5 EPD common EPE limited partner unit. SEPTEMBER 2011: Duncan Energy Partners L.P. [ DEP ]. DEP unitholders received 1.01 EPD common DEP limited partner unit. FEBRUARY 2015: Oiltanking Partners, L.P. ( OILT ). OILT unitholders received 1.3 EPD common OILT limited partner unit. JULY 1, 2015: The partnership completed a 2.15 billion acquisition of the Eagle Ford Midstream assets from Pioneer and Reliance. HOUSTON-AREA ASSETS 1 HOUSTON MARCELLUS UTICA MAP KEY PIPELINE PROPYLENE FRACTIONATION FACILITY PIPELINE NGL FRACTIONATION FACILITY NGL/REFINED PRODUCTS PIPELINE OCTANE ENHANCEMENT FACILITY TERMINAL/ NGL/REFINED PRODUCTS MARINE NGL/REFINED PRODUCTS TERMINAL ISOMERIZATION FACILITY IMPORT/EXPORT TERMINAL PROCESSING/TREATING PLANT MIDSTREAM ENERGY BARGES REFINING REFINED PRODUCTS REFINED PRODUCTS MARINE TERMINALS REFINING INDUSTRY TRUCKS Mixed NGLS PROCESSING PLANT Dry Natural Gas (principally methane with ethane) MIXED BUTANES ETHANE PROPANE ISOBUTANE POWER GENERATION INDUSTRIAL FUEL RESIDENTIAL FUEL PETROCHEMICALS PETROCHEMICALS AND INDUSTRIAL/RESIDENTIAL FUEL GASOLINE ADDITIVES AND PETROCHEMICALS NGL PIPELINE NGL To fractionators for separation into NGL purity products NGL Fractionation NATURAL GASOLINE NORMAL BUTANE GASOLINE ADDITIVES AND PETROCHEMICALS MOTOR GASOLINE
INCREASING ASSET FOOTPRINT LEADING TO INCREASED CASH DISTRIBUTIONS ASSETS QUARTERLY CASH DISTRIBUTIONS 55.0 51.3 50.0 45.0 2.00 40.0 1.75 1.68 BILLIONS 35.0 30.0 25.0 20.0 15.0 25% CAGR DECLARED PER UNIT 1.50 1.25 1.00 0.75 7% CAGR 10.0 0.50 5.0 0.25 0 0.00 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 6/30/2017 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2Q 2017 ANNUALIZED DIVERSIFIED BUSINESS MIX GROSS OPERATING MARGIN BY SEGMENT GROWTH CAPITAL ALLOCATION 5.5 BILLION GROSS OPERATING MARGIN FOR 12 MONTHS ENDED JUNE 30, 2017 13% & 18% & 2017-2020E (1) 9 BILLION (PREDOMINANTLY FEE-BASED) 47% PETROCHEMICAL & REFINED PRODUCTS 1% & 22% & 13% PETROCHEMICAL & REFINED PRODUCTS 56% NGL & 30% NGL & (1) Growth capital projects result in additional revenue from existing assets or from expansion of our asset base through construction of new facilities. (AMOUNTS IN MILLIONS) JUNE 30, 2017 JUNE 30, 2016 2013 12 MONTH ENDED JUNE 30, 2017 TOTAL GROSS OPERATING MARGIN (Non-GAAP) 1,377.9 1,254.2 5,516.3 Adjustments to reconcile non-gaap gross operating margin to GAAP operating income: Subtract depreciation, amortization and accretion expense (379.2) (360.3) (1,493.6) Subtract asset impairment and related charges (14.0) (20.2) (56.1) Subtract net losses attributable to asset sales, insurance recoveries and related property damage Subtract general and administrative costs (0.3) (45.7) (1.7) (35.1) 9.1 (177.2) OPERATING INCOME (GAAP) 938.7 836.9 3,798.5 Enterprise evaluates segment performance based on the non-gaap financial measure of gross operating margin, which is an important performance measure of the core profitability of its operations. This measure forms the basis of Enterprise s internal financial reporting and is used by its management in deciding how to allocate capital resources among business segments. Operating income is the GAAP financial measure most directly comparable to total segment gross operating margin.
(AMOUNTS IN MILLIONS) 2ND QUARTER 2017 2ND QUARTER 2016 DISTRIBUTABLE CASH FLOW (Non-GAAP) 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 Add net income attributable to noncontrolling interests Subtract miscellaneous non-cash and other amounts to reconcile, as applicable Subtract the net effect of changes in operating accounts, as applicable 1,051.9 62.3 (1.2) 12.3 (36.9) 370.9 1,039.7 58.4 (14.5) 11.5 (41.4) (108.2) NET CASH FLOWS PROVIDED BY OPERATING ACTIVITIES 1,459.3 945.5 Distributable cash flow is a non-gaap financial measure that indicates success in generating cash flows at a level that supports Enterprise s 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 GAAP measure most directly comparable to distributable cash flow is net cash flows provided by operating activities. KEY INVESTMENT CONSIDERATIONS PROVEN TRACK RECORD OF EXECUTING GROWTH STRATEGY Significant expansion since Enterprise Products Partners initial public offering in 1998 STRATEGICALLY LOCATED TO SERVE THE MOST PROLIFIC BASINS FOR, AND NGLS IN THE UNITED STATES Connected to 100 percent of the ethylene steam crackers in the U.S (largest market for NGLs) and connected to 90 percent of the refineries East of the Rockies HISTORY OF STRONG FUNDAMENTAL AND FINANCIAL DISCIPLINE WHILE EXECUTING GROWTH STRATEGY AND PROVIDING ATTRACTIVE RETURNS Balanced distribution growth while retaining cash flow Raised distribution 52 consecutive quarters Significant insider ownership with management and affiliates owning approximately 32 percent FOCUS ON LONG-TERM COST OF CAPITAL TO SUPPORT VALUE CREATION ELIMINATED GENERAL PARTNER IDRS IN NOVEMBER 2010 EXPECT TO GENERATE ADDITIONAL CASH FLOW IN 2017-2020 FROM APPROXIMATELY 9 BILLION OF PLANNED GROWTH CAPITAL PROJECTS ATTRACTIVE YIELD AND TAX DEFERRAL INVESTMENT GRADE CREDIT RATING WITH FOCUS ON FINANCIAL FLEXIBILITY PUBLICLY TRADED PARTNERSHIP ATTRIBUTES ENTERPRISE IS A PUBLICLY TRADED PARTNERSHIP WHICH OPERATES IN THE FOLLOWING WAYS THAT ARE DIFFERENT FROM A PUBLICLY TRADED STOCK CORPORATION: Unitholders own limited partnership units and receive cash distributions instead of owning shares of common stock and receiving dividends A partnership generally is not a taxable entity and does not pay federal income taxes. All of the annual income, gains, losses, deductions or credits flow through the partnership to the unitholders on a per unit basis Unitholders are required to report their allocated share of these amounts on their income tax returns whether or not any cash distributions are paid by the partnership Cash distributions paid by a partnership to a unitholder are generally not taxable, unless the amount of any cash distributed is in excess of the unitholder s adjusted basis in his partnership interest Enterprise provides each unitholder a Schedule K-1 tax package that includes each unitholder s allocated share of reportable partnership items and other partnership information necessary to complete their income tax returns. The K-1 provides a unitholder the required tax information for their ownership interest in the partnership, just as a Form 1099-DIV does for a stockholder s ownership interest in a corporation INVESTOR RELATIONS E-MAIL CONTACTS RANDY BURKHALTER Vice President rburkhalter@eprod.com HEADQUARTERS ENTERPRISE PRODUCTS PARTNERS L.P. Enterprise Plaza 1100 Louisiana Street, 10th Floor Houston, TX 77002-5227 713-381-6500 MAILING ADDRESS P.O. Box 4324 Houston, TX 77210-4324 JACKIE RICHERT Director jmrichert@eprod.com FORWARD-LOOKING STATEMENTS This fact sheet includes forward-looking statements as defined by the SEC. All statements, other than statements of historical fact, included herein that address plans, activities, events or developments that Enterprise expects, believes or anticipates will or may occur in the future are forward-looking statements. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, such as the required approvals by regulatory agencies and the impact of competition, regulation and other risk factors included in the reports filed with the SEC by Enterprise. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. Except as required by law, Enterprise does not intend to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise. VISIT ENTERPRISE PRODUCTS PARTNERS L.P. AT ITS WEBSITE ENTERPRISEPRODUCTS.COM WHERE YOU CAN Learn more about the operations, management, financial performance and history of the partnership Read the latest news releases, listen to the conference calls and view presentations OR CALL TOLL FREE: 866-230-0745 Sign up for email alerts for upcoming events and new additions to the website