NAPTP 2013 MLP Investor Conference Stamford, Connecticut May 22 May 23, 2013
Legal Disclaimer This presentation relates to meetings among members of management of Energy Transfer Partners, L.P. (ETP), Energy Transfer Equity, L.P. (ETE) and Sunoco Logistics Partners L.P. (SXL) and securities analysts to be held May 22 nd and 23 rd, 2013. At this meeting, members of management may make statements about future events, outlook and expectations related to ETP, ETE, SXL, Southern Union Company (SUG), Panhandle Eastern Pipeline Company, LP (PEPL) (collectively the Companies ) and their subsidiaries, and this presentation may contain statements about future events, outlook and expectations related to the Companies and their subsidiaries all of which statements are forward-looking statements. Any statement made by a member of management at these meetings and any statement in this presentation that is not a historical fact will be deemed to be a forward-looking statement. These forwardlooking statements rely on a number of assumptions concerning future events that members of management believe to be reasonable, but these statements are subject to a number of risks, uncertainties and other factors, many of which are outside the control of the Companies. While the Companies believe that the assumptions concerning these future events are reasonable, we caution that there are inherent risks and uncertainties in predicting these future events that could cause the actual results, performance or achievements of the Companies and their subsidiaries to be materially different. These risks and uncertainties are discussed in more detail in the filings made by the Companies with the Securities and Exchange Commission, copies of which are available to the public. The Companies expressly disclaim any intention or obligation to revise or publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise. All references in this presentation to capacity of a pipeline, processing plant or storage facility relate to maximum capacity under normal operating conditions and with respect to pipeline transportation capacity, is subject to multiple factors (including natural gas injections and withdrawals at various delivery points along the pipeline and the utilization of compression) which may reduce the throughput capacity from specified capacity levels. 2
Energy Transfer Priorities Energy Transfer is focused on resuming distribution growth at ETP, simplification of our structure, and optimization of our assets Recent and pending transactions are significant steps towards achieving our goals to stakeholders: ETP recently acquired ETE s 60% interest in ETP Holdco, which gives it 100% ownership of Sunoco, Inc. and Southern Union Southern Union recently closed on its contribution of SUGS to Regency Southern Union has a pending sale of its LDCs to the Laclede Group for $1.035 billion, which is expected to close by 3Q 2013 ETP has invested nearly $3.5 billion primarily in fee-based midstream and NGL projects, which will contribute to DCF growth, in addition to a backlog of over $1.5 billion in growth projects we are currently pursuing Energy Transfer has an attractive portfolio of organic growth projects that offer long-term sustainable growth: The Mariner South JV Project will create a world class LPG export/import operation in the U.S. Gulf Coast The Eastern Gulf Crude Access Pipeline (formerly Trunkline Crude Conversion Pipeline) will create the first direct pipeline logistics solution for transportation of crude oil to the Eastern Gulf Coast refinery market from the Midwest U.S. The Trunkline LNG Facility will have export capacity of 15 mtpa (up to 2.4 Bcf/d from three trains) and Energy Transfer is currently in commercial negotiations with counterparties 3
Energy Transfer Midstream Platform Energy Transfer Asset Overview ETP Assets SUG Assets 1 SXL Assets RGP Assets Energy Transfer Projects Eastern Gulf Crude Access Pipeline Mariner South Trunkline LNG Export Note: Excludes SUN Retail and SUG LDCs 1 Part of ETP Holdco which is 100% Owned by ETP 4 * Map is s general depiction of Energy Transfer assets
Energy Transfer Organizational Structure 5
Commercial Growth Initiatives
Eastern Gulf Crude Access Pipeline Project will create the first direct pipeline logistics solution for transportation of crude oil to the Eastern Gulf Coast refinery market from the Midwest Project Status: Filed application for abandonment with the FERC in July 2012 Expect to obtain FERC approval of abandonment in mid-2013 Anticipated in-service by mid-2015 Batched system with capacity of up to 420,000 barrels per day Joint development project between Energy Transfer & Enbridge Energy Transfer s interest is 40% ETP, 60% ETE Trunkline Pipeline St. James Extension EGCA Conversion Trunkline Compressor Stations Points of Interest Pump Stations Patoka Extension * Map is s general depiction of Energy Transfer assets 7
LNG Export Project Project will use existing LNG re-gas infrastructure including storage tanks, marine facilities, etc. Export capacity up to 15 mtpa (up to 2.4 Bcf/d from three trains) Additional upstream transportation revenue Currently in commercial negotiations with counterparties DOE non-fta export permit expected this year FERC construction authorization expected in 4Q 2014 No material construction expenditures expected before investment decision in early to mid-2015 ETP 40%, ETE 60% New Transfer Line New Facility Area Existing Facilities Proposed Facilities/Buildings * Map is s general depiction of Energy Transfer assets 8
LPG Export (Mariner South) Project SXL and Lone Star (70% ETP and 30% RGP) project, which will integrate SXL s Nederland Terminal and pipeline from Mont Belvieu with Lone Star s Mont Belvieu fractionation and storage facilities, creating a world class LPG export/import operation in the Gulf Coast Expected to be operational in 1Q 2015 Initial capacity of 6 million barrels per month Nederland Terminal will provide 24-hour ship access in the Gulf Coast with a load rate of up to 30,000 barrels/hr Shell Trading US Company, STUSCO, has committed to the project as an anchor customer, by executing long-term, fee-based agreements Existing Pipeline Mont Belvieu New Build Mont Belvieu Facilities Nederland Terminal Nederland New Build * Map is s general depiction of Energy Transfer assets 9
Midstream and NGL Projects ETP Midstream Kenedy Processing Plant 200 MMcf/d of capacity placed in service in 4Q 2012 Jackson Processing Plant 400 MMcf/d of capacity placed in service in 1Q 2013 200 MMcf/d of capacity expected to be in service in 4Q 2013 200 MMcf/d of capacity expected to be in service in 2Q 2014 Godley Plant Expansion 200 MMcf/d of capacity expected to be in service in 3Q 2013 bringing total capacity to 700 MMcf/d Rich Eagle-Ford Mainline (REM) Expansion to 1 Bcf/d expected in 1Q 2014 Godley Plant Expansion Kenedy Processing Plant Lone Star NGL West Texas Gateway NGL Pipeline Approximately 570 miles of 16-inch pipe with capacity of 209,000 bpd placed in service in 4Q 2012 Frac I capacity of 100,000 bpd placed in service in 4Q 2012 Frac II capacity of 100,000 bpd, is proceeding ahead of schedule and is now expected to be in service in 4Q 2013 Jackson Processing Plants Lone Star Frac I and II Lone Star West Texas Gateway NGL Pipeline Lone Star West Texas NGL Pipeline Rich Eagle-Ford Mainline (REM) Expansion Energy Transfer Assets * Map is s general depiction of Energy Transfer assets 10
Midstream and NGL Projects Midstream NGL (ETP) Project Description Capacity Dos Hermanas Pipeline 50-mile, 24-inch pipeline originating in northwest Webb County and extending to ETP's existing Houston Pipeline rich gas gathering system in eastern Webb County Expected Completion 400 MMcf/d In-service Q4 2010 Estimated Cost ($ mm) Chisholm Pipeline 83 mile, 20-inch pipeline extending from DeWitt County to ETP's La Grange Processing Plant in Fayette County 100 MMcf/d, expandable to In-service $68 300 MMcf/d Q2 2011 REM Phase I 160-mile, 30-inch pipeline originating in Dimmitt County and extending to the Chisholm Pipeline for ultimate 400 MMcf/d, expandable to In-service $220 delivery to ETP s processing plants 800 MMcf/d Q4 2011 Chisholm Plant Natural gas processing plant located adjacent to ETP's existing La Grange Plant in Fayette County 120 MMcf/d In-service $70 Q1 2012 REM Phase II 70 mile, 42-inch pipeline expansion, which will extend from the Chisholm Pipeline in DeWitt County east into 800 MMcf/d In-service $170 Jackson County Q3 2012 Jackson Plant Natural gas processing plant located in Jackson County 400 MMcf/d, Phase I In-service $420 Q1 2013 200 MMcf/d, Phase II Q4 2013 200 MMcf/d, Phase III Q2 2014 Red River Gathering Pipeline 117-mile, 24- and 30-inch pipeline from Carter County, Oklahoma to ETP's Godley Plant in Johnson County, Texas 450 MMcf/d, expandable to 550 MMcf/d In-service Q3 2012 $360 NGL (100%) LPG (100%) Godley Plant Cryogenic processing plant to be constructed at the Godley processing facility in Johnson County, Texas 200 MMcf/d Q3 2013 Expansion Kenedy Plant Natural gas processing plant located in Karnes County 200 MMcf/d In-service Q4 2012 REM Expansion 37 mile, 30-inch pipeline expansion Expands REM to 1 Bcf/d Q1 2014 Sub-total $1,561 Freedom Pipeline 43-mile, 8-inch NGL pipeline connecting the Liberty pipeline to ETP's La Grange & Chisholm plants In-service $30 40 Mbbl/d Q3 2011 Liberty Pipeline 93-mile, 12-inch NGL pipeline owned through a 50/50 JV with Copano. Connects the Freedom pipeline to the In-service $26 Formosa plant 90 Mbbl/d Q3 2011 Justice Pipeline 130-mile, 20-inch NGL pipeline from the Jackson Plant to Mont Belvieu 340 Mbbl/d In-service $365 Q4 2012 Sub-total $421 West Texas Gateway 570-mile, 16-inch NGL pipeline originating in Winkler County and terminating in Jackson County 200 Mbbl/d In-service $917 Q4 2012 Frac I Mont Belvieu NGL fractionator 100 Mbbl/d In-service $390 Q4 2012 Frac II Mont Belvieu NGL fractionator 100 Mbbl/d Q4 2013 $350 Contribution from Regency for its 30% interest ($497) Sub-total $1,160 Mariner South LPG Export Project - JV with Lone Star & SXL Q1 2015 $750 Contribution from SXL for its approximately 67% interest ($500) Sub-total $250 Total announced ETP growth projects since Q4 2010 (including 70% of Lone Star) $3,392 $43 $210 11
Diversified Business Profile Adjusted EBITDA by Operating Segment Intrastate Midstream Interstate Propane NGL LDCs Retail Marketing Crude/Refined Products 100% 75% 18% 18% 16% 14% 8% 24% 24% 12% 28% 4% 50% 14% 21% 25% 6% 9% 33% 35% 25% 52% 47% 43% 11% 9% 0% 14% 15% 2009 2010 2011 Q4 2012 Annualized Q1 2013 Annualized 1 1 Note: Adjusted EBITDA reconciliation is included on the Energy Transfer website www.energytransfer.com. ETP Adjusted EBITDA excludes Other 12