PLATT S NGL CONFERENCE - PDF Free Download

DISCLAIMER 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, 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 arereasonable,itcangivenoassurancethatsuchexpectationswillprovetobecorrect. 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

ENTERPRISE ASSETS: NATURAL GAS, NGLS, CRUDE OIL AND PETROCHEMICALS Asset Overview Pipelines: 52,000 miles of natural gas, NGL, crude oil, refined products and petrochemical pipelines Storage: 200 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 Exports: added refined products export terminal; expanding World Scale LPG export facilities and 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. 3

U.S. NATURAL GAS SUPPLY POTENTIAL ASSUMING SUFFICIENT MARKETS (BCF/D) 1 1 ROCKIES OTHER 14 16 16 32 MID CONTINENT APPALACHIAN 12 16 Base Case 2020 High Case 2020 High Case 2025 Region Current Gulf Coast (incl. EF, Haynesville, Barnett) 26 32 38 46 Permian Basin 5 9 9 9 Rockies 14 14 16 17 Mid Continent 12 15 16 17 Appalachian 16 23 32 37 Other 1 1 1 1 Bcf/d 74 94 112 127 PERMIAN 5 9 26 38 GULF COAST Current 74 Bcf/d Year 2020 High 112 Bcf/d Source: EPD Fundamentals ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 4

U.S. OIL & CONDENSATE SUPPLY POTENTIAL ASSUMING SUFFICIENT MARKETS (MBPD) 3,447 4,800 CANADA ROCKIES 1,136 1,043 AK & CA 1,589 2,243 78 185 MID CONTINENT APPALACHIAN 616 966 PERMIAN Current 8,457 MBPD U.S. Region Current 2020 Gulf Coast 3,398 4,904 Permian Basin 1,641 2,639 Rockies 1,589 2,243 Mid Continent 616 966 Appalachian 78 185 AK and CA 1,136 1,043 MBPD 8,457 11,981 1,641 2,639 3,398 4,904 GULF COAST Potential Year 2020 11,981 MBPD Source: EPD Fundamentals ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 5

U.S. NGL SUPPLY POTENTIAL ASSUMING SUFFICIENT MARKETS (MBPD) 135 128 ROCKIES OTHER 581 922 301 1,182 MID CONTINENT APPALACHIAN 501 661 PERMIAN Current 3,192 MBPD NGL Components Current 2020 Ethane 1,377 2,509 Propane 928 1,453 N. Butane 248 505 Iso Butane 270 292 Natural Gasoline 369 576 MBPD 3,192 5,336 * Current is increased by 250 300 MBPD for estimated ethane rejection 608 1,026 1,065 1,417 GULF COAST Potential Year 2020 5,336 MBPD Source: EPD Fundamentals ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 6

MIXED NGL (Y GRADE) PROJECTS Front Range JV: 1/3 each EPD, Anadarko and DCP 435 miles of 16 pipe; DJ basin to Skellytown; connections to Texas Express and MAPL Capacity: 150 MBPD, expandable to 230 MBPD 10 year ship or pay contracts In service: February 2014 MBPD 120 100 80 60 40 20 0 Front Range Contracted Volumes 107 107 79 79 82 2014 2016 2019 2020 2023 MAPL Rocky Mountain Expansion 265 miles of 16 pipeline and pump modifications 10 year ship or pay contracts Capacity from 275 MBPD to 350 MBPD 75 MBPD committed beginning January 1, 2014 In service: January 2014 Texas Express JV: 35% EPD, 35% Enbridge / Midcoast, 20% Anadarko and 10% DCP 580 miles of 20 pipe; Skellytown to Mont Belvieu Capacity: 280 MBPD, expandable to 400 MBPD 10 year ship or pay contracts In service: November 2013 250 Texas Express Contracted Volumes 200 MBPD 150 100 50 123 146 202 217 244 0 2014 2016 2019 2020 2022 ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 7

MAJOR PROJECTS: MONT BELVIEU NGL VII, VIII and PGP Fractionators NGL and PGP fractionation capacity expansions: NGL Frac VII 85 MBPD (4Q 2013) NGL Frac VIII 85 MBPD (4Q 2013) PGP Frac Expansion 7.5 MBPD (1Q 2013) Brings NGL capacity to 670 MBPD and PGP to 118 MBPD Enterprise s Mont Belvieu complex is centerpiece of the largest NGL hub in U.S. Connected to all major U.S. refineries and petrochemical facilities along Gulf Coast 35 underground storage wells Over 100 MMbbls capacity Over 1 MMBPD throughput Isomerization units, C 3 and C 4 Splitters, Octane Enhancement, Cogen units, Terminals ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 9

NGLs U.S. DEMAND MATRIX NGL Ethane Propane Normal Butane Iso Butane Natural Gasoline Percent of NGL BBL 40% 30% 8% 10% 12% Petrochemicals Heating, Crop Drying Motor Fuels Export Source: EPD Fundamentals ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 10

ETHANE SUPPLY POTENTIAL / DEMAND U.S. TO REMAIN CHRONICALLY OVERSUPPLIED MBPD 3,000 2,500 450 700 MBPD excess before rejection 2,000 1,500 250 MBPD rejection in 2013 1,000 500 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 Cracker Demand Growing Surplus Ethane Supply Source: EPD Fundamentals ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 11

ATEX AND AEGIS ETHANE PIPELINES ATEX Pipeline 1,265 mile, 16 and 20 pipeline Initial capacity 125 MBPD, expandable to 265 MBPD Connected to 4 NGL fractionators 15 year ship or pay commitments In service January 2014 Aegis Ethane Pipeline 270 mile, 20 pipeline with capacity up to 425 MBPD Creates header pipeline from Corpus Christi to Louisiana, when combined with existing South Texas ethane pipeline Will deliver ethane to at least 6 petrochemical customers Received commitments in excess of 200 MBPD Expected in service in phases throughout 2015 ATEX Pipeline Aegis Pipeline Initial Origins MBPD 150 120 90 60 30 0 ATEX C 2 Contracted Volumes 68 81 104 116 131 2014 2015 2016 2017 2018 2028 ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 12

EPD ETHANE EXPORT FACILITY MORGAN S POINT, TX Supported by long term contracts Operating rate 200 MBPD across two docks Expected to begin operations 3Q 2016 Evaluating possible expansion ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 13

U.S. LIKELY TO END SEPT. AT MULTI YEAR HIGHS AFTER BEGINNING 2014 AT MULTI YEAR LOWS MMBPD U.S. Propane Ending Monthly Inventory Balances (excludes Propylene) ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 16

U.S. LPG A GROWING SURPLUS MBPD 3,000 1,250 MBPD Excess 2,500 2,000 1,500 1,000 500 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 LPG Demand Current LPG Exports Growing Surplus LPG Supply Source: EPD Fundamentals Note: LPG is Propane and Butane ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 17

EPD PDH FACILITY UPDATE Capacity to produce up to 1.65 billion pounds per year of polymer grade propylene (25 MBPD) Will consume 35 MBPD of propane 100% of capacity is contracted under fee based contracts that average 15 years with investment grade companies Integrated with EPD s existing facilities to provide reliability and flexibility Completion expected in mid 2016 45% of costs locked in ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 18

EPD LPG EXPORT FACILITY PREMIER LPG EXPORT FACILITY IN THE U.S. 14,000 bph currently, using two dedicated pipes (16 and 10 ) from Mont Belvieu (>7.5 MMBbls/month) 2,500 bph planned expansion in 1Q 2015 ( 1.5 MMBbls/month) 11,000 bph planned expansion in 4Q 2015 ( 7.0 MMBbls/month) New 30 pipeline from Mont Belvieu Maximum capacity 26 ships / month ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 19

EXPORTS ARE NECESSARY TO BALANCE MARKET NGL Ethane Propane Normal Butane Iso Butane Natural Gasoline Percent of NGL BBL 40% 30% 8% 10% 12% Petrochemicals Heating, Crop Drying, Fuels Motor Fuels Export Source: EPD Fundamentals ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 22