ENTERPRISE PRODUCTS PARTNERS L.P. LINKING US SUPPLY WITH ASIAN DEMAND: EXPANDING THE GLOBAL PIPELINE

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1 ENTERPRISE PRODUCTS PARTNERS L.P. LINKING US SUPPLY WITH ASIAN DEMAND: EXPANDING THE GLOBAL PIPELINE March 5, 2019 Justin Kleiderer VP NGL Marketing & Supply ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. enterpriseproducts.com

EPD: NATURAL GAS, NGLs, CRUDE OIL, PETROCHEMICALS AND REFINED PRODUCTS Asset Overview Pipelines: 50,000 miles (80,500 km) of natural gas, NGL, crude oil, petrochemicals and refined products pipelines

2 EPD: NATURAL GAS, NGLs, CRUDE OIL, PETROCHEMICALS AND REFINED PRODUCTS Asset Overview Pipelines: 50,000 miles (80,500 km) of natural gas, NGL, crude oil, petrochemicals and refined products pipelines Storage: 260 MMBbls (30 MM MT) of NGL, petrochemical, refined products, and crude oil, and 14 Bcf (0.4 BCM) of natural gas storage capacity 28 natural gas processing plants; 23 fractionators; 11 condensate distillation facilities; PDH facility Export Facilities: 18 docks handling NGLs, PGP, crude oil & refined products Assets Under Construction / Commissioning Pipelines: 700 miles (1,125 km) of pipelines Processing: 3 gas processing plants Fractionators: 2 in Mont Belvieu area Petchem: 1 ibdh facility Ethylene export terminal Connectivity Fully integrated midstream energy company aggregating domestic supply directly connected to domestic and international demand Connected to US major shale basins Connected to every US ethylene cracker Connected to 90% of refineries East of Rockies 26 Gulf Coast PGP connections ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 2

4 US OIL AND GAS SUPPLIES GROWING AT SIGNIFICANT MULTIPLES BCM/yr BCF/d 1, , Dry Natural Gas Production MM MT/yr MBPD , , ,000 8 Oil Production , MM MT/yr MBPD , NGL Production , , , ,000 2,466 4,859 6,038 7,125 8,212 Production growth is Gulf Coast centric Demand for hydrocarbons in the US is not expected to grow E&P sector and Petrochemical industry have become dependent on exports Forecasts Assume $50 WTI and $3.00 Henry Hub and full ethane recovery Source: EPD Fundamentals ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 4

5 Production in MBPD US CRUDE OIL PRODUCTION, CONSERVATIVE? MM MT/yr MBPD , ,000 US Oil Production - EIA Actuals vs EPD Forecast 6 years: +4,500 MBPD (220 MM MT/yr) 7 years: +5,000 MBPD (245 MM MT/yr) , , , , , , , EIA Data Says US Producers Added 1,500 MBPD (73 MM MT/yr) in US Crude Production Now Surpasses Both Russia and Saudi Arabia. Source: EIA, EPD Fundamentals ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 5

6 Production in MBPD MM MT/yr MBPD 234 9, , , , , , , , , US NGL PRODUCTION ETHANE, PROPANE, BUTANES AND NATURAL GASOLINE US NGLs Production - EIA Actuals vs EPD Forecast* 6 years: +1,900 MBPD (49 MM MT/yr) 7 years: +3,800 MBPD (99 MM MT/yr) Source: EPD Fundamentals The Percentage Growth of NGL Production Will Be Greater Than Crude Oil Due to Note: EIA data is net of ~ 500 MBPD of ethane that gets rejected Associated Rich Gas in the Permian Basin. Source: EIA, EPD Fundamentals ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 6

7 Liq. Hydrocarbon Production, MBPD WTI Price, $/Bbl US LIQUID HYDROCARBON PRODUCTION VS OIL PRICE MM MT/yr MBPD ,000 WTI Price , , $50 Oil 16.3 MMBPD (660 MM MT/yr) Production $100 $ ,000 $ ,000 $ , , $100 Oil 8.5 MMBPD (370 MM MT/yr) Production US Production $ ,000 $0 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 U.S. Liquids Production WTI Price Source: EIA and Bloomberg ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 7

8 US ALREADY PRODUCES MORE LIGHT CRUDE THAN IT CAN CONSUME MM MT/yr MMBPD exports - EIA EPD Fundamentals MM MT/yr MMBPD MMBPD Required Exports: MMBPD US Prod - Light US Prod - Cond US Demand for Crude: US Prod - Medium LIGHT OIL 12 US Prod - Heavy Imports - Canada Imports: KSA, MEX & VEZ CANADIAN IMPORTS Other Imp PADD Other Imp PADD With Crude Exports Growing to 8 MMBPD (391 MM MT/yr) by 2025, the US is Rapidly Becoming a Global Crude Oil Export Powerhouse ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 8 Base Imports

9 LPG SUPPLIES ALREADY EXCEED DOMESTIC DEMAND, MORE EXPORT CAPACITY REQUIRED MM MT/yr MBPD 135 4, , , ,000 ~1.5 MMBPD (45 MM MT/yr) Headed to Asia LPG Supply? 75 2, , , , LPG Domestic Demand Actual LPG Exports Industry Export Capacity LPG Supply Note: Industry Export Capacity at 85% Operating Rate. Includes EPD, Mariner East and Targa expansions Sources: IEA and EPD Fundamentals ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 9

10 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Jul-20 Jan-21 Jul-21 Jan-22 Jul-22 DESPITE SHORT TERM BOTTLENECKS, USGC ETHANE SUPPLIES TO SWAMP DEMAND MM MT/yr MBPD 60 3,000 Ethane Supply-Demand on US Gulf Coast 55 2, , , , , ,500 Rejected Ethane SABIC/XOM Total Formosa Axiall / Lotte Sasol Indorama 25 1, , Includes: XOM Baytown start date: July 2018 CPC Cedar Bayou: April 2018 Oxy/Mexichem Ingleside: Feb 2017 DOW Freeport: Nov 2017 Shintech Exports Existing Demand Rejection Extraction +ATEX Source: EIA & EPD Fundamentals ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 10

11 USGC CRUDE EXPORTS 702 MMBBLS (94 MM MT) IN 2018 ASIA, DESTINATION OF 46% OF ALL USGC CRUDE EXPORTS NWE: 30% of US Crude Exports 702 MMBBLS (94 MM MT) Exported Asia: 46% of US Crude Exports Other Countries = 18% of US Crude Exports LatAm: 6% of US Crude Exports Source: EIA & EPD ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 11

12 USGC LPG EXPORTS 395 MMBBLS (33 MM MT) IN 2018 ASIA, DESTINATION OF 50% OF ALL USGC LPG EXPORTS USGC Exported: C3: 329 MMBBLS (26.5 MM MT) C4: 67 MMBBLS (6.2 MM MT) NWE: 7% of US LPG Exports C3: 1.9 MM MT C4: 0.3 MM MT Asia: 50% of US LPG Exports C3: 13.5 MM MT C4: 2.8 MM MT Other Countries: 22% of US LPG Exports C3: 5.3 MM MT C4: 1.8 MM MT Indian Ocean: 2% of US LPG Exports C3: 0.4 MM MT C4: 0.4 MM MT LatAm: 19% of US LPG Exports C3: 5.3 MM MT C4: 0.8 MM MT Source: Waterborne ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 12

LIQUID HYDROCARBON DEMAND GROWTH DOMINATED BY EMERGING MARKETS MM

20,000 618 15,000 412 10,000 206 5,000 0 0 Source: IEA World

14 Population (MM) Energy Intensity vs USA ASIAN POPULATIONS DWARF THE US WHILE US ENERGY INTENSITY DWARFS ASIA 1, % 100% 100% 1,200 80% % 32% 40% % 15% 20% 0 USA India China Other Major Asia The Average American Consumes 52 BOE/Year 0% Source: World Bank ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 14

16 EPD: GATEWAY TO THE WORLD FOR US ENERGY >5 BILLION BBLS (565 MM MT) OF HYDROCARBONS ACROSS ENTERPRISE DOCKS IN LAST 10 YEARS EPD Morgan s Point (Ethane & Ethylene*) EPD Enterprise Houston Ship Channel (Crude Oil, NGLs, Propylene) EPD Beaumont (Crude Oil, Refined Products) Seaway Freeport (Crude Oil) Seaway Texas City (Crude Oil) A B S *4Q19 limited service, 4Q20 full service ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 16

17 SUPPLY: ACCESS TO OVER 8 MMBPD OF POTENTIAL SUPPLY AGGREGATION: >300 MMBBLS OF STORAGE WITHIN THE HOUSTON REGION Strategically linked terminals are essential for supply aggregation, segregation, batching, and exports N E W M E X I C O T E X A S O K L A H O M A Cushing CANADIAN BAKKEN DJ BASIN MID-CONTINENT POWDER RIVER 1.8 MMBPD Enterprise Pipeline Third Party Pipeline Enterprise Pipeline Third Party Pipeline Midland PERMIAN 5.4 MMBPD Permian to Houston Pipelines EPD Midland Sealy EPD Midland Sealy 2 EPD Midland ECHO Magellan Longhorn Magellan BridgeTex Gray Oak (P66, MPC, ANDV) Exxon/Plains JV ETP/Magellan/MPLX/Delek JV EAGLE FORD 1 MMBPD ECHO/Enterprise Houston Ship Channel Area Offshore Terminal OFFSHORE 500 MBPD As US crude supplies grow, access to water becomes critical ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 17

OFFSHORE CRUDE OIL EXPORT TERMINAL Developing an offshore crude oil export terminal off Texas Gulf Coast capable of fully loading VLCCs VLCCs have a capacity of 2 million barrels (268 M MT) Efficient

18 OFFSHORE CRUDE OIL EXPORT TERMINAL Developing an offshore crude oil export terminal off Texas Gulf Coast capable of fully loading VLCCs VLCCs have a capacity of 2 million barrels (268 M MT) Efficient and costeffective solution to export crude oil to international markets Started front-end engineering and design ( FEED ) and preparing application for permit approval Capable of loading at 85,000 BPH (11.4 M MT/hour) Subject to permits and execution of long-term contracts ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 18

19 ENTERPRISE MONT BELVIEU EXPANDING OUR FOOTPRINT Frac XI Frac X Frac IX ibdh #2 PDH & PDH Splitter Splitters II & IV Frac IV, V, VI, VII & VIII Frac II & III ibdh #1 & MTBE (BEF) Splitter I Isoms & DIBs Splitter III Units 1, 2 & 3 ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 19

20 N G L S ENTERPRISE LPG EXPORT FACILITY 175 MBPD (5.2 MM MT/YR) EXPORT EXPANSION Export Capability: Up to 30 MBPH or 720 MBPD/ 22MM MT/yr Import Capability: Up to 20 MBPH or 480 MBPD/ 14MM MT/yr Ability to load up to 6 vessels simultaneously HOUSTON SHIP CHANNEL EHSC CROSS CHANNEL CONNECTIONS MONT BELVIEU Refrigerated Low Ethane Propane (LE C3) HD5 Propane (C3) Isobutane (IC4) High Purity Isobutane (HP IC4) Normal Butane (NC4) Butane Mix ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 20

21 US EXPORT GROWTH ALL HYDROCARBONS TELLING THE SAME STORY US Hydrocarbon Exports Crude Ethane Normal Butane Propane Distillates Mogas Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Source: EIA ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 21

22 MBPD ENTERPRISE EXPORTS EXPECTED TO CONTINUE TO INCREASE MM MT/yr MBPD 125 2, ,000 1, , ,000 HURRICANE HARVEY Feb-17 May-17 Aug-17 Nov-17 Feb-18 May-18 Aug-18 Nov-18 Feb-19 E NGL Petchem & Ref. Products EPD Crude Exports Sources: Waterborne (IHS), EPD Fundamentals and EPD Distribution Schedules, including estimates ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P. 22

25 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. 25

4 th IEA-IEF-OPEC Symposium on Energy Outlooks. Riyadh, 22 January 2014

4 th IEA-IEF-OPEC Symposium on Energy Outlooks Riyadh, 22 January 2014 Spare or stranded?* mb/d 7.0 Medium-Term Oil Market Balance 6.0 5.0 4.0 3.0 2.0 1.0 0.0-1.0 2004 2005 2006 2007 2008 2009 2010 2011