Products Partners L P : Wells Fargo Midstream and Utility Symposium

Enterprise Products Partners L.P.

Equities

EPD

US2937921078

Oil & Gas Transportation Services

Company Profile

Analysts' Consensus

Latest news about Enterprise Products Partners L.P.

Chart Enterprise Products Partners L.P.

Income Statement Evolution

Analysis / Opinion

Ratings for Enterprise Products Partners L.P.

EPS Revisions

Quarterly earnings - Rate of surprise

Sector Other Oil & Gas Transportation Services

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December 11, 2019 at 07:41 am EST

ENTERPRISE PRODUCTS PARTNERS L.P.

WELLS FARGO MIDSTREAM &

UTILITY SYMPOSIUM

December 11, 2019

Randy Fowler - President and CFO

Tony Chovanec - SVP, Fundamentals

enterpriseproducts.com

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," "outlook" 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.

WHY ENTERPRISE?

21 Years Publicly Traded Partnership

				>20 consecutive
Diversification:		Market Capitalization:	Highest credit rating in
Geographic, Products	≈$57B	midstream energy space:	years of
and Markets
		Enterprise Value:	BBB+ / Baa1	distribution
		≈$85B	TTM September 2019	increases
		Daily Trading Value:	Leverage(1):
		3.2x reported
		(last 3 months)
		≈$114MM
		as of November 11, 2019

Disciplined Allocator of	Average Unlevered Return	2019	Interests Aligned with
Capital:		on Invested Capital(1):	$1.765/unit	Investors:

CFFO Allocation(1):	58%	12%	FY distributions	32% of common units
Distributions	over the last 10 years	$3.8B	owned by
Capital investment	42%
	Management

Funding Growth Capital:		Net Growth CAPEX
CFFO (less distributions)	67%		$2B buyback in place
Debt	33%
as of trailing 12 months
		($81MM repurchased 9Mos 2019)
September 30, 2019
(1) For a definition, see appendix.				3
© ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P.

GLOBAL ENERGY SUPPLY & DEMAND

enterpriseproducts.com

HUMAN PROGRESS AND GLOBALIZATION IS DRIVING DEMAND GROWTH

Regional Oil & Liquids Demand

MMBPD		Growth Dominated by Emerging Markets			MMBPD

	45								120
			History	Projections				Asia Pacific
	40
Regional Oil & Liquids Demand									100
35
30								80	World Oil & Liquids Demand
25
							North America	60
20

15				Europe				40

	10							Middle East

	5					Latin America		Africa	20

								Eurasia
	0								0
	2000	2017	2018	2025	2030	2035	2040

Source: IEA World Energy Outlook

LEADING ENERGY ECONOMISTS ARE NOT PREDICTING A DEMAND "CLIFF"

MMBPD

World Oil and Liquids Demand

115

Projections

110

105

100	I E A O U T L O O K

2018	2020	2022	2024	2026	2028	2030	2032	2034	2036	2038	2040
		IEA WEO 2019		OPEC WOO 2019		EIA IEO 2019

Sources: IEA, EIA and OPEC

LIQUID HYDROCARBONS CONTINUE TO BE REQUIRED

Renewables Alone Cannot Satisfy Global Energy Demand

Global Primary Energy Consumption

Projected

Global End-Use Energy Consumption

Excludes Power

History Projections

While Renewables will supplement natural gas and liquid hydrocarbons in power, they have a limited application in the transportation & industrial sectors

Liquid hydrocarbons will continue to be a preferred fuel of choice due to their portability and favorability in transportation and industrial / petrochemical feedstock applications

Industrial Sector will continue to be the largest consuming sector globally with gains in gross output, particularly in non-OECD countries fueling increases

Source: EIA International Energy Outlook 2019

ACCESS TO AFFORDABLE ENERGY AIDS

HUMAN DEVELOPMENT

U N D P (1) H U M A N D E V E L O P M E N T I N D E X

R E L AT I O N S H I P B E T W E E N H D I a n d E N E R G Y U S E

					India:		China:
	0.950				Moved from Low to HighHDI

Very High	Index0.850			Moved from Low to MediumHDI		Mean education increased: 1.6x

				Mean education increased: 2.1x		Life expectancy increased: 5.9 years
	Development			1990	CHINA
			Life expectancy increased: 8.7 years	Energy Per Capita: 192% increase
High	0.750
		Energy Per Capita: 82% increase	2017
		(HDI)		INDIA	0.75
			2017
Medium	0.650
0.550		0.64
		CHINA

Low	0.450	INDIA	0.50
	Human		1990
	0.350	0.43

	0.250

-	500	1,000	1,500	2,000	2,500	3,000
(1) UN Development Programme (UNDP)			Energy Use Per Capita
		(kg of oil equivalent)		Sources: World Bank and United Nations Development Programme 2017

IT'S A HEALTHIER WORLD THANKS TO EXPORTS OF CLEAN U.S. LPG (PROPANE AND BUTANE)!

LPGs...

Provide cleaner-burning fuel to

low-income households

Eliminate the risk of time-intensive

chore of collecting wood

Improve quality of life, particularly for women

Over 3 billion people worldwide use solid-fuels for heating and cooking

World Health Organization estimates 4.3 million premature smoke inhalation deaths per year
Many deaths are children <5 years old

U.S. LPGs enable poorer nations to: transition to cleaner fuels, improve quality of life, reduce deforestation and lower emissions

China (population 1.4B): coal stoves outlawed in urban areas, replaced by LPGs, doubling demand to ≈2 MMBPD since 2012
India (population 1.3B): 95% of households converted to LPG
Indonesia (population 0.3B): >90% LPG household coverage achieved
Sub-SaharanAfrica (population 1.1B): ≈80% of the population currently relies on solid biomass (e.g. wood, charcoal, and dung) for cooking, and could be converted to clean cooking fuel, such as LPG, by 2030

Sources: IEA, Clean Cooking Alliance and IHS Waterborne

BURNING QUESTIONS

Rationale on Capital Allocation

Capital projects vs. distribution growth vs. buybacks

Discussion of recently sanctioned projects

Strategic outlook and discussion of the Permian

Latest Thoughts on MLPs vs. C-corps

Key considerations

Valuation metrics

RATIONALE ON CAPITAL ALLOCATION

enterpriseproducts.com

LONG-TERM CAPITAL ALLOCATION

Balanced and Disciplined Approach

Allocating cash flow with a long-term focus

Anticipated Growth Capex: $3.8B for 2019, $3-4B for 2020, ≈$2-3B for 2021 and beyond

Cash

Distributions

21 years of consecutive distribution growth

Continue to increase distribution with solid cash flow coverage

(1) For a definition, see appendix.

Incremental

Opportunities

Opportunistic buybacks of common units

CAPEX

Equity Portion

Self-fund 50% of

growth CAPEX

Targeting ROIC(1) of ≈12%+

CAPITAL ALLOCATION TRENDS ACROSS SECTORS

Relative to 2018 Operating Cash Flow

				as % of 2018 Cash Flow from Operations			Total payout /	Rank
						CFFO
		Capex			Dividends / Distributions		Equity Repurchase
Utilities				126%					28%	154%	28%
				74%					62%		1% 137%		63%	4th
Midstream1			83%					47%	130%		47%
Real Estate	42%			64%			7% 113%			70%	1st
E&P2			89%				9%	8%	106%			17%
Energy			78%			15%	6%	99%				21%
Consumer Staples	28%		37%		27%	92%				65%	2nd
Consumer Discretionary	37%		21%		34%		92%				55%
Industrials	28%		26%		33%		88%					59%
Materials	46%		21%	16%	84%					37%
S&P 500 median3	30%		22%	28%	81%					51%
OFS4		53%		19%	8%	80%						27%
Information Technology	15%	21%		42%		79%						64%	3rd
Communication Services	35%		15%	18%	68%							33%
Health Care	22%	10%	33%		65%							43%

Sources: FactSet, Bloomberg as of Q2 2019, Consensus estimates; Median value of S&P 500 firms; Payout consists of indicated dividends defined as most recent dividend annualized and average of annual common stock repurchases of last 3 fiscal years; 1 Median figures for Kinder Morgan (KMI), ONEOK (OKE), and Williams Companies (WMB); 2 Median figures for Hess Corp (HES), Apache Corp (APA), Cabot Oil & Gas Corp (COG), Eog Resources Inc (EOG), Devon Energy Corp (DVN), Noble Energy Inc (NBL), ConocoPhillips (COP), Pioneer Natural Resources Co (PXD), Marathon Oil Corp (MRO), Cimarex Energy Co (XEC), Concho Resources Inc. (CXO); 3 Median excludes Financials and Real Estate; 4 Median figures of TechnipFMC (FTI), Halliburton (HAL), National Oilwell (NOV), Schlumberger (SLB) and Baker Hughes (BHGE);

LONG-TERM VS. SHORT-TERM VIEW ON CAPITAL ALLOCATION

Illustrative Accretion Economics: Organic Growth vs. Buybacks

$1.80

$1.60

$1.40

$1.20

Growth CAPEX assumptions: 2 year construction cycle 12% unlevered ROIC(1)

Maintenance capital starts Year 3 Buyback assumptions:

2 years of repurchases

11% cash flow yield ($26 unit price)

Cumulative CFFO/unit

Longer term outlook favors

capital projects which add to the intrinsic value of the business

$1.63

$1.00

$0.80

$0.60

$0.40

$0.20

$0.00

-$0.20

$0.92

$0.66


Year 1	Year 2	Year 3	Year 4	Year 5	Year 6	Year 7	Year 8	Year 9	Year 10	Year 11	Year 12
$2B CAPEX ($1B Self-Funded DCF and $1B Debt) DCF/Unit		$1B CAPEX (Self-Funded DCF) DCF/Unit		$1B Buyback (Self-Funded) DCF/Unit

(1) For a definition, see appendix.

See appendix page 84 for scenario support.

WE CONTINUE TO INVEST AND GROW

≈$9.1B* of Major Capital Projects Under Construction

Last 6 months have been one of the most successful periods in EPD history for underwriting high quality capital projects:

M2E3, M2E4, ATEX Expansion, PDH 2 and Gillis Lateral;

solid customers, integrated with value chain assets, attractive returns on capital

$ in Billions

$6.0

$5.0

$4.0

$3.0

$2.0

$1.0

$0.0

Beaumont refined products buildout Eagle Ford JV crude dock HSC 58 acres tanks LPG dock expansion Midland-to-ECHO 2 Orla 3 gas plant Propylene P/L expansion Shin Oak NGL P/L

$3.0

$2.5

NatGas

Petchem

45%

Ethylene export terminal iBDH

Mont Belvieu frac 10 Panola gas plant

Mentone gas plant

Permian crude gathering

Texas Express & Front Range

$0.5$0.6

NGL	ATEX P/L expansion
25%	Crude storage

	Gillis lateral P/L
	Midland-to-ECHO 4
Crude	Mont Belvieu Isom
24%	PDH2

Aegis expansion
EHT dock 1A expansion
LPG dock expansion
Ethylene storage
Propylene export & P/L	$3.8
expansion

Midland-to-ECHO 3 expansion & storage Mont Belvieu DIB expansion

$0.8$0.9

2019 YTD	4Q 2019	1Q 2020	2Q 2020	3Q 2020	4Q 2020	2021+
Estimated
* Does not include Sea Port Oil Terminal ("SPOT")						15
© ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P.

QUALITY CAPITAL INVESTMENTS

Customer Strength and Durability of Cash Flows

Capital Investments: Customer Ratings by Volume

B- to B+ LC 5.7% 3.5%

BB- to

BB+

13.5%

A- to AA-

47.3%

BBB- to

BBB+

30.0%

Capital Investments: Volume Weighted Contract Length

5-7 Years

15.1%

8-9

Years

15.0%

10+ Years

69.9%

$12B of projects; $9.1B of which is

currently under construction

≈77% of contracted volumes are from investment grade customers

≈70% of volume weighted contract lengths are 10+ Years

Potential to generate ≈$1.2B to $1.8B of new sources of gross operating margin per year (assuming historical 10-15% unlevered returns on capital)

Projects are valued on a stand-alone basis

Incremental benefits across the system are upside but not part of project returns

Projects returns are based on conservative terminal values and are stressed tested at discounted terminal values down to zero

WHY BUILD ANOTHER PERMIAN PIPELINE?

Strong Customers, Long-Term Contracts, Attractive Returns Even With Zero Terminal Value

Midland-to-ECHO (M2E) Pipeline System

M2E In-Service:

M2E1 and M2E2 pipelines from Midland to Sealy with >800 MBPD of capacity; M2E2 could convert back to NGL service

Integrated with existing 1.3 MMBPD Rancho II pipeline from Sealy to Houston

M2E Under Construction:

M2E3 expected to add 450 MBPD capacity (scheduled 3Q 2020) and M2E4 expected to add 450 MBPD of capacity; expandable up to 540 MBPD (scheduled 1H 2021)

Quality Segregation: safeguards crude quality through batched shipments and multiple grades

Market Access: provides customers with access to largest markets on Texas Gulf Coast and international markets

Storage Integration: supported by 45 MMBbls of aggregate integrated storage in Midland, Sealy and Houston

Contracted: 1.3 MMBPD capacity is ≈95% contracted with A-rated customers

System could flex between 1.3 and 1.8 MMBPD depending on market demand

Supported: 15%+ unlevered IRR

3rd party contracts and hedged uncommitted volumes only
Stress tested at 0 terminal value and initial contract terms only
Excludes revenues from associated storage and marine terminal services
Expected payout in 2024

Additional Value Chain Benefits:

Customers representing ≈90% of contracted volumes also have associated storage contracts
Customers representing >90% of contracted also have contracted for ship-or-pay marine terminal services

MLP VS. C-CORP

enterpriseproducts.com

EPD GOVERNANCE OVERVIEW

Consistent Alignment with Limited Partners

History

Current State

Eliminated 50% IDRs for no consideration in 2002

Collapsed publicly traded GP structure as a proactive measure in 2010

NON-Taxabletransaction; no distribution cuts

GP affiliates waived $322MM in distributions to support cash accretion to EPD LPs

Alignment: Affiliates of GP own ≈32% of LP units and have purchased $1.9B EPD units since IPO, including $1.1B since 2010, to support growth of partnership

Financial objectives include long-term value creation and strong balance sheet

Metrics(1) considered in Management Compensation include:

Cash flow/unit (DCF and CFFO)
Unlevered return on invested capital ("ROIC")(2)
5-yeartotal return versus peers (MLP and C-Corps)
For 2019, adding CO2 equivalent emissions intensity and safety performance metrics

Long-term equity incentive plan was approved by 94% of LP units that voted at a partner meeting in 2013

Investment Community Recognition: Investors ranked EPD #1 for corporate governance and ESG / SRI reporting for Midstream Sector (C-Corp and MLPs) in most recent Institutional Investor survey of nearly 1,700 investors and analysts

Without any weight or formula given to any specific financial or operating measure.
For a definition, see appendix.

MLP VS. C-CORP

No Free Lunch: to our knowledge, substantially all MLPs that transitioned to U.S. C-Corps are enjoying a short-term tax holiday paid for by LPs through a tax bill at conversion and/or a back-door (or outright) distribution / dividend cut

How sustainable is a 21% corporate tax rate? We continue to watch valuations

EV/EBITDA multiples have gapped recently
- However, does this metric consider future tax bills when the holiday ends?
EPD screens well on P/CFFO metrics
- How durable are the spreads between MLP and C-Corp multiples given current period of negative sentiment for energy broadly and lack of fund flows?

EPD continues to deliberately and rigorously evaluate MLP vs. C-Corp EPD could convert quickly (2-3 months), subject to unitholder approval

VALUATION COMPARISON

Discernible Valuation Advantage for C-Corps over Partnerships?

EV/EBITDA multiples for C-Corps have recently gapped on a pre-tax basis,

but EPD screens well on P/E and P/CFFO metrics

11/25/2019		EPD		ENB		OKE		KMI		TRGP		TRP		WMB
Price		$26.58	$37.78	$71.99	$19.96	$37.95	$50.97	$23.09
Market		$58.2	$76.5	$29.7	$45.2	$8.8	$47.6	$28.0
Cap. ($B)

Enterprise		$86.2	$135.2	$41.6	$82.7	$20.6	$88.4	$53.5
Value ($B)

EV / EBITDA
	10.3x		13.0x		12.9x		10.7x		12.5x		12.5x		10.3x
2020E


Price / CFFO		8.7x		5.8x		14.9x		6.0x		7.7x		6.5x		7.6x
Price /
	12.1x		19.0x		20.1x		19.2x		N.A.		16.9x		22.8x
Earnings

Payout Ratio		57%	35%	67%	24%	72%	34%	38%
Net Debt /		3.26x		4.70x		5.00x		4.27x		5.06x		6.00x		5.40x
Adj. EBITDA

EBITDA CAGR		2.3%	3.1%	10.9%	1.0%	12.5%	1.2%	2.7%

Source: Bloomberg as of 11/25/2019

Past results may not be indicative of future performance.

Valuation vs. Growth

14.0%

12.0%

10.0%

(1)
CAGR	8.0%
EBITDA	6.0%

	4.0%
	2.0%	EPD

	0.0%

0.0x	2.0x	4.0x	6.0x	8.0x	10.0x	12.0x	14.0x	16.0x
			2019 Price / CFFO per share
	EPD	ENB	OKE	KMI	TRGP	TRP	WMB

(1) EBITDA CAGR is the consensus estimate for the period 2019-2021

CLOSING THOUGHTS

EPD business outlook for 2020

E&P industry reductions in CAPEX; expected 2020+ U.S. / Permian crude oil supply growth

Hydrocarbon demand

1X1 MEETING MATERIALS

enterpriseproducts.com

EPD: NATURAL GAS, NGLs, CRUDE OIL,

PETROCHEMICALS AND REFINED PRODUCTS

Asset Overview

Connectivity

Pipelines: ≈50,000 miles of natural gas, NGL, crude oil, petrochemicals and refined products pipelines

Storage: ≈260 MMBbls of NGL, petrochemical, refined products, and crude oil, and 14 Bcf of natural gas storage capacity

26 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: >500 miles of pipelines

Processing: Mentone gas plant

Fractionators: 10 & 11 Mont Belvieu area

Petchem: iBDH and PDH2 facilities

Export terminal expansions: LPG, crude,

PGP, adding ethylene

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 ≈90% of refineries East of Rockies 26 Gulf Coast PGP connections

NatGas

13%

Petchem	NGL
13%
46%

Crude

28%

TTM September 30, 2019:

$8.4B Gross Operating Margin

Gross operating margin ("GOM") is how we measure the performance of our business segments. See reconciliations for closest GAAP comparison.

EPD'S INTEGRATED MIDSTREAM VALUE CHAIN

Earning Fees at Each Link

It is not uncommon for Enterprise

to touch a molecule 5-7 times

throughout the system

Natural Gas

Pipelines

Storage

Natural Gas

Pipelines

NGL Exports

Natural Gas

Pipelines

Natural

Gas

Crude

Oil

Trucks

Barges

Crude Oil

Pipelines

* Orange denotes current areas of expansion

Gas Processing

Mixed NGLs

Pipelines

Storage

Crude Oil

Refining

Ethane

Propane

Butane

Iso-Butane

N Gasoline

Storage

NGL

Fractionation

Crude Oil

Pipelines Butane

Isom

iBDH &

Belvieu Fuels

Propylene
Splitters / PDH		Petrochemical
	Storage	Pipelines

NGL Pipelines

NGL Wholesale

Crude Exports

MTBE Export / Barges

Chemical Market

Refined Products

Pipelines

FINANCIAL UPDATE

enterpriseproducts.com

CONSISTENT FINANCIAL RESULTS THROUGH BUSINESS CYCLES

400%

EPD's Stock Price Mirrors Energy Sentiment

Results Have Been Consistent Despite Crude Prices...

$160

$2,500

350%
300%
250%
200%
150%
100%
	Correlation to WTI	2Q14-2016	2017-2018	9Mos 2019
50%		EPD Unit Price	0.84	0.41	0.98
	AMZ Index	0.86	-0.18	1.00
0%
	XLE ETF	0.94	0.82	1.00

	$140	$2,000
	$120
			$
	$100
$ Bbl	$1,500	Millions in

$80
$60	$1,000
	$40	$500
	$20

	$0		$-

EPD Unit Price

AMZ Index

XLE ETF

WTI Crude

EPD Gross Operating Margin(1)

EPD DCF w/o Non Recurring (2)

...Which Has Supported Cash Flow & Distribution Per Unit Growth...

	$120	$3.50
	$100	$3.00

	$80	$2.50		$ millions

$/bbl	$60	$2.00	$/unit
$1.50

	$40	$1.00

	$20	$0.50

	$0	$-

…While Building a Margin of Safety for Future Growth
$1,800	Cumulative Retained DCF and % of Total DCF
$1,600
2Q 2004-9Mos 2019	$11,573	23%
$1,400
Last 3 Years	$5,042	30%

$1,200	Last 12 Months	$2,571	39%
$1,000
$800
$600
$400
$200
$0

	WTI Crude	Distribution per unit	CFFO Per Unit	Retained EPD DCF w/o Non Recurring	Cash Distributions
(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 payments to settle interest rate hedges).	Sources: EPD and Bloomberg

GROSS OPERATING MARGIN BRIDGE

$ in MMs

($124)

3Q 2018

Non-Cash

New &

Existing Assets

Legacy Gas

Marketing

3Q 2019

2Q 2019

Non-Cash

New &

Existing Assets

Legacy Gas

Marketing

3Q 2019

GOM

MTM Change

Expanded

with Operating

Plants

(excl. MTM) &

GOM

MTM Change

Expanded

with Operating

Plants

(excl. MTM) &

GOM

Assets

Leverage

Other Changes

Assets

Leverage

Other Changes

Details:

Non-cashmark-to-market ("MTM") changes are a function of the hedging of crude oil, natural gas and natural gas liquids ("NGL") price differentials between regional markets. This hedging is associated with marketing activities related to certain pipeline capacity

3Q19 was a gain of $9MM, 3Q18 was a gain of $204MM and 2Q19 was a loss of $13MM

New and expanded assets are those which have been placed in-service or expanded in the past 12 months. These include Shin Oak NGL pipeline, Aegis and Dixie NGL pipeline expansions, Orla gas processing trains & related gathering, Midland-to-ECHO crude pipelines and the Seaway crude pipeline expansion

Existing assets (excluding natural gas processing plants) with operating leverage that increased >$1MM vs. comparable period and did not have a contractual ramp or expansion

Legacy gas plants (Rockies, Louisiana, Mississippi and South Texas) were impacted by lower processing spreads

Indicative processing spreads (Mont Belvieu NGL vs. Henry Hub natural gas) reduced to $0.21 per gallon for 3Q19 vs. $0.58 and $0.25 for 3Q18 and 2Q19, respectively

Total gross operating margin is a Non-GAAP measure. For a reconciliation of these amounts to their nearest GAAP counterparts, see "Non-GAAP Financial Measures" on our website.

INDICATIVE ATTRIBUTION OF GROSS OPERATING MARGIN

Gross Operating Margin in $Billions

$8.0

$7.0

$6.0

$5.0

$4.0

$3.0

$2.0

$1.0 $0.0

Fee-based GOM increased 13% to $5.2B 9 Months 2019 vs. 9 Months 2018

	$7.3
	8%	$6.3
		6%
	$5.7
		11%
$5.2	6%
	4%
5%	5%
4%

		86%
91%	89%	85%

2016	2017	2018	9 Months 2019
Fee-Based	Commodity Price-Based		Differential-Based

Total gross operating margin is a Non-GAAP measure. For a reconciliation of these amounts to their nearest GAAP counterparts, see "Non-GAAP Financial Measures" on our website. See Appendix - Indicative Attribution of Gross Operating Margin for definitions.

INDICATIVE ATTRIBUTION OF SEGMENT GOM FOR 9 MONTHS 2019

% Breakout of GOM

100%

80%

60%

40%

20%

11%	5%		13%
6%	17%
2%
		5%

		9%

87%	89%	82%

		74%

NGL Segment (1)	Crude Segment	Natural Gas Segment(2) Petchem & Refined Products
		Segment(3)

Fee-Based Commodity Price-BasedDifferential-Based

Based on Gross Operating Margin

Percentage of liquids and percentage of proceeds agreements are considered commodity-based; keepwhole agreements are differential based
San Juan gathering generates commodity sensitive earnings, while natural gas marketing includes Waha to Carthage and Waha to Houston transportation differentials
Largest differential contribution was from propylene fractionation and refined products marketing

INDICATIVE ATTRIBUTION OF GOM FOR SELECT BUSINESSES

Natural Gas Processing GOM

	$600			$500		$0.50
		Mostly Pioneer,
	$500
	Meeker and				$0.40
SMillions		South Texas
$400				$281	$0.30	Spread

$300		$244
GOM in					$0.20	Price
$200	$169

			57%
	$100			68%	$0.10
		68%
	81%

	$0					$0.00
		2016	2017	2018	9 Months 2019
	Fee	POP & POL	Keepwhole	Indicative Processing Spreads ($/Gal)

Propylene Activities GOM & Related Spreads

Octane Enhancement / HPIB GOM & Related Spreads

	$500	Largely propylene	$463		$0.80			$180

		sales during PDH			$0.70			$160
	$400		startup		$367
							$140
					$0.60

GOM in $Millions							GOM in $Millions
$300					$0.50	Price Spread	$120
				$100

		$222			$0.40
	$212			$80
$200
		74%		$0.30	$60
			79%

					$0.20			$40
	$100

	70%	69%
				$0.10			$20

	$0					$0.00			$0
		2016	2017	2018	9 Months 2019
		Fee	Non - Fee	Spread PGP vs. RGP ($/Gal)

See Appendix - Indicative Attribution of Gross Operating Margin for definitions.

			$1.40
		$154	$1.20

	$123		$131
		$1.00
			$0.80	Spread

MTBE plant			$0.60	Price
Turnaround
$42		61%	$0.40
	55%		62%
		$0.20

60%			$0.00

2016	2017	2018	9 Months 2019
Fee	Non-Fee	Spread RBOB vs. Butane ($/Gal)
				31

PROVEN TRACK RECORD OF DELIVERING CONSISTENT RETURNS ON CAPITAL

13.9%

				12.9%	13.3%	13.1%
						12.6%
					12.5%
100
11.8%
			11.6%
	11.4%	11.2%			11.0%

10.5%	10.8%					10.7%



							10.2%
80

$/Bbl

2005	2006	2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	9Mos
						ROIC (1,2,3)		WTI Crude					2019

14.0%

12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

% ROIC Unlevered

(1)	For a definition, see appendix.
(2)	Pre-2008 is based on EPD reported results (not recast for Mergers).	Sources: EPD and Bloomberg
(3)	2008 and 2009 reflect recast financial statements of Enterprise giving effect to the TEPPCO and Enterprise GP Holdings mergers.	Past results may not be indicative of future performance

DURABLE CASH FLOW METRICS THROUGHOUT COMMODITY CYCLE

$120

As measured by MLP or Conventional metrics

	$100
								$2.80
								$2.67 62%
	$80							1.5x

			$2.09	$2.06	$2.20		$2.05	$2.16
$/Bbl			$1.99	$1.99		78%
$60	$1.97	64%	1.4x	65%	$1.93	$1.94 1.2x
1.3x	76%

	1.4x				1.2x	84%

$40

$20

$2.55

1.5x

$3.03 $2.92 58%

$2.80 1.7x 61%

$3.50

$3.00

$2.50

$2.00

$1.50

$1.00

$0.50

CFFO & DCF Operational Unit Per

2013	2014	2015	2016	2017	2018
Operational DCF per Fully Diluted Unit(1,2)	CFFO per fully diluted unit(1,3)

For a definition, see appendix
Represents the operational DCF coverage ratio over the distributions paid
Represents the percentages CFFO that were paid in distributions

TTM Sept	TTM Sept
2018	2019

WTI Crude price (Annual Average)

Sources: EPD and Bloomberg

FREE CASH FLOW - TRENDING HIGHER

			Includes $2.4B for	Includes $1.1B for
	$8,000		Oiltanking acquisition	EFS acquisitions					$1.50

	$7,000							$6,677	$1.23
							$6,126
	$6,000		$5,908
								$1.00


	$5,000						$0.91
				$4,666$0.62
		$3,866$4,090	$4,162	$4,002	$4,125	$3,965
	$4,000	$4,067 $4,033			/ Unit
			$3,420		$3,335				$0.50

$ Millions	$3,000			$0.29					$2,712		Cash Flow
					$2,001
$2,000

					$1,331
	$1,000				$0.01				$0.00	Free
	($0.12)		$583

	$0				$34

		2013	2014	2015	2016	2017	2018	TTM Sept 2019	-$0.50
	-$1,000	($224)

	-$2,000		($1,746)

	-$3,000		($0.89)							-$1.00

CFFO

Net Cash Outlay for Capital Investments(1) Free Cash Flow(2)

FCF / Unit

Net Cash Outlay for Capital Investments includes Cash used in Investing Activities and cash contributions from / distributions paid to non-controlling interests.
For a reconciliation of Free Cash Flows, see "Non-GAAP Financial Measures" on our website.

STRENGTHENING DEBT PORTFOLIO

Extending Maturities Without Increasing Costs

≈$29.5 Billion Notes Issued

2009-September 2019

11.5%

8.6%

49.1%

30.8%

99% Fixed Rate Debt

	20.0		(as of September 30, 2019)		8.0%
	19.0								19.2	19.0

Years								18.8		7.0%
18.0

				17.7	17.6
	17.0		17.3		17.3				6.0%


AverageMaturity-	5.8%	5.8%								DebtCostof
16.0	16.2	5.5%				16.1
			5.3%
									5.0%

	15.0				4.8%	4.7%
	14.9						4.7%
					4.5%	4.6%	4.5%


	14.0									4.0%

3 Year 5 Year 10 Year 30+ Year

Average Maturity

Average Cost of Debt

FUNDING GROWTH WITH

FINANCIAL DISCIPLINE

			Total Growth Capital Expenditures & Debt Leverage
	$8.0		$7.8	through TTM September 30, 2019

	$7.0		$4.6		4.4x				4.5x


				$6.2		4.1x
	$6.0
			4.2x					4.x	/ Adjusted EBITDA
				$2.5

$ in Billions	$5.0		3.8x(1)				3.5x
	$4.2					3.5x
					$4.1
$4.0						3.2x(3)
3.5x	$3.2	$3.7	$3.7	$3.1	$0.2
$3.0		$1.0	$3.9
				$0.2		$3.8(2)
						3.x	Debt
					$2.7	$2.9
	$2.0									Net

	$1.0								2.5x

	$0.0								2.x
		2013	2014	2015	2016	2017	2018	2019 Est.
			Organic Growth Capital	Acquisitions		Debt Leverage Ratio

Proforma includes full year EBITDA for Oiltanking
Full year 2019 growth capital investment estimate net of contributions from JV partners
Reflects leverage for the trailing 12 months ended September 30, 2019

FUNDAMENTALS

enterpriseproducts.com

UNCONVENTIONAL PLAYS DECADES OF PRODUCTION

POTENTIAL LOCATIONS IN KNOWN

COMMERCIAL PLAYS

EPD Pipelines

Gas

Crude Oil

Liquids (NGL & Products)

Existing U.S. Production

Oil

Gas

Sources: EPD Fundamentals and DrillingInfo

Bakken

29k to 41k locations

Rockies

75k to 124k locationsMarcellus / Utica

34k to 52k locations

ScoopStack

38k to 44k locations

Haynesville

Permian23k to 33k locations 206k to 312k locations

Eagle Ford

54k to 64k locations

Unconventional Commercial Plays

459k to 670k locations

SUPPLY OF U.S. DRY NATURAL GAS

By Producing Region

	120
	100
Bcf/d	80
60

Production

PERMIAN

10		13	18
11

5
Current	2020	2025

TOTAL SUPPLY

102

90 91

Current 2020 2025

9091102

1.0AK & CA

							0.8
	ROCKIES				0.6			0.8		0.8	0.7



	14			14			0.4
13						Current	2020	2025

									35			APPALACHIA
Current	2020		2025


	9			MID-CONTINENT	30
			25		31		31	34


	8		9		9			20
		8			Current	2020	2025


	7
		Current	2020	2025

25 OTHER GULF COAST

6	EAGLE FORD	20
			21
5		15	20	20

SUPPLY OF NGLS

By Producing Region

																							110			AK & CA


																							100
	8,000				TOTAL SUPPLY	1,500					ROCKIES					90		99		98		90


				1,000												80
							7,529
									500		1,095	1,173	1,325						Current	2020	2025


	6,000
					6,152
				5,796						0
MBPD	4,000									Current	2020	2025							1,500		APPALACHIA


																							1,000

	2,000																750		MID-CONTINENT			500	1,092	1,108	1,228

																650
																							0
																	550		633	658	702
																				Current	2020	2025

	0

		Current	2020	2025								450

Production									Current	2020	2025
	5,796	6,152	7,529
						3,000			PERMIAN

						2,250						2,990
						1,500
							1,854	2,076

						750																	OTHER GULF COAST
							Current	2020	2025									500


NGL Components Current	2020	2025				800			EAGLE FORD			450


Ethane		2,698	2,862	3,519				600
														496	489
Propane		1,652	1,755	2,144												721	400			472
				400						550
Normal Butane		554	589	720					527


Iso Butane		313	331	403				200									350

Natural Gasoline		580	615	743								Current	2020	2025			Current	2020		2025			Capital Constrained Case
	MBPD		5,797	6,152	7,529
																							Source: EPD Fundamentals August 2019
© ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P.																					40

SUPPLY OF CRUDE OIL AND CONDENSATE

By Producing Region

18,000

12,000

MBPD

6,000

Production

3,000

2,500

2,000

1,500

8,000		PERMIAN

6,000
4,000			7,292
4,186	4,651
2,000

Current	2020	2025

TOTAL SUPPLY

16,187

12,135 12,880

Current 2020 2025

12,135 12,880 16,187

						1,000				AK & CA

						900
	ROCKIES			800		929	906	789

						700

2,460	2,576	2,601				Current	2020	2025

						125			APPALACHIA
Current	2020	2025

	900					100
		MID-CONTINENT	75		112	106	96


	800
					50
	700				809
		682	715		Current 2020	2025

	600

		Current	2020	2025

					3,000	OTHER GULF COAST
2,000		EAGLE FORD


1,500					2,000	2,604	2,688	2,954
1,000				1,648
	1,162	1,238
			1,000
500
				Current	2020	2025
	Current	2020	2025		Capital Constrained Case

Source: EPD Fundamentals August 2019

FUTURE DEMAND FOR U.S. PRODUCTION

			U.S. Production
	9,000			NGL Production	7,529

	6,000
MBPD			6,152
		5,796


	3,000
	0
	Current	2020	2025


Capital		5,796	6,152	7,529
Constrained

Base	5,489	6,284	8,481
	20,000			Crude Production

	15,000				16,187
MBPD
10,000		12,135	12,880


	5,000
	0
		Current	2020	2025


Capital		12,135	12,880	16,187
Constrained

Base	11,680	13,088	17,035

Source: EPD Fundamentals, August 2019 forecast

Demand for U.S. Production - 2025

PRODUCT	DOMESTIC MARKET	INTERNATIONAL MARKET

	Demand: >65%	Exports: <35%
Ethane	New crackers could consume	Current capacity is full and
(≈50% of NGL barrel*)	≈1 MMBPD of ethane	exports steady
U.S. crackers to remain	New capacity is needed

*Assumes full recovery; ethane	feedstock advantaged	• New investment needed
not consumed by petchems or	• Growing exports of	• Complex infrastructure
exported is left or reinjected
back into the natural gas	ethylene and polyethylene	• Needs competitive pricing
stream.

	Demand: <40%	Exports: >60%
LPG	Demand will stay	Primarily to Asia
≈1.4 MMBPD	Residential: ≈60% of global
(Propane & Butane)

Propane for residential	demand growth (less price
(35-40% of NGL
LPG for plastics and specialty	sensitive)
barrel)	Petchem: ≈40% of global
	chemicals
		growth (more price sensitive)

	Demand: <50%	Exports: >50%
	U.S. refiners are blending	8 MMBPD expected to be
	light crude as much as	exported
Oil & Condensate	possible	Light, low sulfur crude:
Minimal new refining
	• Can be used in Refining +
	capacity	Petchem complexes
	• Mostly debottlenecking and	• Is an excellent fit post-IMO
	retooling where possible	2020


		42

CHEMICAL VALUE CHAIN MARGINS REMAIN STRONG DESPITE VOLATILITY IN ETHYLENE

100,000

U.S. Ethylene Capacity & Production

Ethane Supply-Demand on U.S. Gulf Coast

3,500

MM lb/yr

90,000

80,000

New Builds

70,000

60,000

50,000

40,000

30,000

20,000

10,000

	3,000
	2,500
MBPD	2,000	New Domestic
	Petchem Crackers
1,500	Exports

	1,000	Existing Domestic

	500	Petchem Crackers

	0

US Steam Cracker Capacity New Builds US Ethylene Production

U.S. Ethylene Cracker Margin

Polyethylene Spreads to Ethane (FOB Houston)

Cents per Pound

Favor NGLs

Cents per Pound

HDPE + LLDPE is ≈85% of Production

Margin

(10)

(20)

(30)

Ethane

Propane

Butane

Lt Naphtha

Spread

HDPE - Ethane Chain Margin

LLDPE - Ethane Chain Margin

Sources: Hodson, EIA and EPD Fundamentals, August 2019

CHEMICALS INDUSTRY INVESTING >$200B*

Creating >750k New Jobs, Based on U.S. Shales

U.S. World Scale Ethylene Plants Under Construction

Company	Capacity	Ethane Capacity	Ethane Capacity	Estimated	Location
Billion lb/yr	(MBPD)	Cumulative (MBPD)	Completion Date


Existing Capacity end 2017	68	1,400
Occidental Chemical / Mexichem	1.2	40		Operational	Ingleside, TX
Chevron Phillips Chemical	3.3	90		Operational	Cedar Bayou, TX
DowDupont	3.3	90		Operational	Freeport, TX
ExxonMobil Chemical	3.3	90	310	Operational	Baytown, TX
Westlake / Lotte (LACC)	2.2	60		Operational	Lake Charles, LA
Shintech	1.1	35		Ramping Up	Plaquemine, LA
Sasol	3.3	90		Ramping Up	Lake Charles, LA
Formosa Plastics	2.8	80	575	2019	Point Comfort, TX
Indorama	1.1	30		2020	Lake Charles, LA
Total / Borealis / Nova	2.2	60		Early 2020s	Port Arthur, TX
Shell	3.5	95		Early 2020s	Monaca, PA
DowDupont	1.1	30		Early 2020s	Freeport, TX
Sabic / ExxonMobil	4	110		Early 2020s	Corpus Christi, TX
Formosa Plastics (awaiting FID)	2.6	75		Mid 2020s	St. James, LA
CPC / Qatar (awaiting FID)	4.4	120	1,095	Mid 2020s	USGC
GROWTH 2018+	107	2,495
Expanded Capacity	175	3,895	178% Growth

*"≈$200B in capital could lead to ≈$300B/year in output, supporting 786,000 new jobs
across the economy by 2025!" -AmericanChemistry Council
Petchems are now signaling a "second wave" of new U.S. plants in early 2020s

* Per American Chemistry Council	Source: EPD Fundamentals
© ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P.	44

GLOBAL LPG BALANCES 2018-2025

Demand Growth Expected to Exceed U.S. Supplies

LPG in MBPD	Incremental Supply

		23%
		Supply from
	77%	Other Countries

U.S. Supply

EPD Base Forecast

Incremental Demand

60%
Type of LPG	Growth Rates
	Demand	Last 5 years	2018-25 Fcst.
	All sectors	4%	3%
Cooking	Heating	3.7%	2.4%
Petchem	4.6%	4.2%
Heating

Industry
Power Gen
& Others
	40%

PDH

Steam

Crackers

Sources: IEA and EPD Fundamentals

IEA: global LPG demand was ≈9 MMBPD in 2018 and grew at 4.0% CAGR between 2013 and 2018

Historical LPG demand is split ≈70% heat and 30% petchems

Conservatively, we assume future demand grows at 3% CAGR between 2018 and 2025

PDH demand shown is based on known units that are under construction in China and other countries

LPG DOCK CAPACITY EXPANSIONS WILL BE REQUIRED TO MEET DEMAND

MBPD
4,500
4,000
3,500				LPG Supply
3,000
2,500
2,000
1,500
1,000
500
0
2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025

LPG Domestic Demand	Actual LPG Exports	Industry Export Capacity
Note: Industry Export Capacity at 1,200 MBPD (2018 exports) plus EPD, Mariner East / South and Targa expansions at 85% operating rate	Sources: EIA and EPD Fundamentals, August 2019 forecast

LPG Waterborne Exports (MBPD)

1,200

1,000

800

600

400

200

U.S. SHALE RESPONSIBLE FOR VIRTUALLY ALL GLOBAL LPG GROWTH IN THE LAST DECADE

Other U.S.

Enterprise

2010	2012	2014	2016	2018	2010	2012	2014	2016	2018	2010	2012	2014	2016	2018	2010	2012	2014	2016	2018	2010	2012	2014	2016	2018	2010	2012	2014	2016	2018	2010	2012	2014	2016	2018	2010	2012	2014	2016	2018
	United States			Qatar			Algeria			United Arab			Saudi Arabia		Norway				Iran				Kuwait
																Emirates

		MBPD	1Q	2Q	3Q	4Q	1Q	2Q	3Q	3Q 2019*
		2018	2018	2018	2018	2019	2019	2019*	vs. 2Q 2018


		Japan	241	181	307	443	331	389	500	63%
Destination	Mexico	152	120	125	161	152	126	155	23%
South Korea	60	162	131	81	93	126	146	11%

		Canada	97	126	106	116	103	93	111	5%
		India	62	89	69	77	113	103	89	28%
by	Netherlands	65	58	49	56	38	77	51	2%
Morocco	26	11	11	15	28	47	47	327%
Exports
Ecuador	22	29	38	27	35	42	41	7%

		United Kingdom	52	39	48	36	42	71	41	-16%
U.S.	Dominican	32	38	44	42	55	35	40	-11%
Republic

		China	110	84	79	46	14	6	25	-69%
		Other	338	510	455	403	410	577	443	-3%
		TOTAL	1,258	1,446	1,464	1,503	1,416	1,692	1,685	15%

The U.S. supplied 75% of the LPG growth between 2013 and 2018

USA: +770 MBPD 2013-2018 growth
Non-USA:+247 MBPD 2013-2018 growth

*3Q 2019 includes July and August 2019 data Sources: Waterborne, Bloomberg, EPD Fundamentals and Energy Aspects

A MIDLAND BARREL PRODUCES ONLY 12% MORE LIGHT ENDS THAN A BRENT BARREL

Light shale oil is easier to refine and contains less 'bottom-of-the-barrel' material. This makes a perfect fitfor the 'Refining + Petchem' complexes commonly found overseas.

Barrel 100

Refining Cuts - Brent vs. Midland Light Oil	Ethane-Propane-Butane

Naphtha	29%
≈40%	Naphtha

Middle Distillates

	≈60% of a typical
Gas Oil	Midland barrel is
Diesel & Heavier

	(all low sulfur)	Gas Oil
Vacuum Resid
	Vacuum Resid

Brent - 38°		°
	WTL - 48

A 5,000 MBPD increase in Permian production yields only 600 MBPD incremental light ends!

Source: EPD Fundamentals

BoE 2.5

2.0

1.5

1.0

0.5

0.0

PERMIAN PRODUCER ECONOMICS ARE DRIVEN BY THE OIL COMPONENT

What Comes with a Barrel				Value by Component
of Permian Oil?						$70

				Natural Gas	$60
				NGL
Natural Gas						$50

	50% of					$40

NGL	NGL is
	Ethane		84% of			$30

			value	Oil
			via Oil			$20

Oil
						$10
						$0
Volume (BoE)
		Includes $0.12 T&F on NGLs and $(0.50)/MMBtu NG Basis

Source: EPD Fundamentals, August 2019

LIGHT CRUDE OIL: STACKING UP THE DISTILLATE, GASOLINE AND PETCHEM COMPONENTS

U.S. Light Crude Oil Annual Surplus - Disposition

Incremental Supply

Incremental Demand

≈60% Diesel and Heavier

Produces:

40% of Ethylene yearly growth

48% of Propylene yearly growth

+5,000 MBPD

of light crude	Equal to IEA Mogas
oil in next	yearly growth
5 years
	Petchem
	≈40%
	Naphtha
	Gasoline

Source: EPD Fundamentals

MBPD 10

U.S. CRUDE EXPORTS: ON OUR WAY TO BEING THE GLOBAL POWERHOUSE

Effect of Capital

Constrained

2018: Saudi Arabia Crude Exports: 7.1 MMBPD

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Actuals per EIA

Estimates per EPD Fundamentals

		MBPD	1Q 2018	2Q 2018	3Q 2018	4Q 2018	1Q 2019	2Q 2019	3Q 2019*	3Q 2019*
		vs 3Q 2018

Destination	South Korea	74	154	261	476	357	431	492	88%
Kingdom	122	154	176	212	248	178	225	28%
		Canada	461	428	459	414	466	452	446	-3%
		China	404	375	117	34	83	200	238	102%
		United
by
Netherlands	86	96	125	221	304	223	198	58%
Exports	India	95	172	156	177	263	312	178	14%
Taiwan	60	101	217	145	180	204	110	-50%

U.S.	Italy	118	142	109	64	114	132	100	-8%
Thailand	16	41	50	46	175	34	88	76%

		Spain	21	19	26	22	21	44	78	198%
		Other	232	406	364	538	538	757	561	54%
		TOTAL	1,689	2,088	2,060	2,349	2,750	2,967	2,711	32%

Crude exports were ≈2 MMBPD in 2018; reached 3.2 MMBPD in June 2019

EPD expects exports to reach

8 MMBPD in 2025, mostly light, low sulfur crude oil

*3Q 2019 includes July and August 2019 data Sources: EIA and EPD Fundamentals August 2019 Forecast

PETROCHEMICAL DEMAND REMAINS STRONG WITH OR WITHOUT RECYCLING

400		Global Ethylene Demand, million MT		300		Global Propylene Demand, million MT

300	2018 Demand:							250

	165,000 kMT
								200

200							Even in low case		150
					ethylene demand

						≈doubles by 2040!		100
100				2028-2040 CAGR									2028-2040 CAGR

			Base Case (BAU)	3.9%									Base Case (BAU)	3.8%
						50
				Low Case		2.5%								Low Case		3.0%

0									-
2012	2016	2020	2024	2028	2032	2036	2040	2000	2004	2008	2012	2016	2020	2024	2028	2032	2036	2040
	Global Ethylene Demand	Banned Ethylene	Recycled Ethylene			Global Propylene Demand		Recycling

Plastics play an important role in rising standards of living - they lower food waste and produce less CO2 than any alternative

Single-use plastics are under threat (bans or recycling) - but only a small portion can be dispensed

This will affect Ethylene-based products mostly, such as LDPE (bags and film), PET (bottles), PS (cups, utensils)

Plastic environmental pollution - best in class disposal practices must be implemented worldwide, especially in Emerging Markets

Sources: Bloomberg and EPD Fundamentals

PLASTICS: FASTEST GROWTH, PAST AND

FUTURE

Production Growth for Selected Bulk Materials and GDP

10 Year Global

Compounded Annual

Growth Rates (CAGR)

GDP 3.0%

Oil1.5%

Ethylene 3.3%

Propylene 4.2%

IEA: demand for plastics to double over the next 20 years, accounting for more than 1/3 of all oil demand growth by 2030

Petrochemical products provide substantial benefits to society versus the alternatives, and are also used in a number of clean, renewable technologies

Mismanaged plastics that end up in rivers and oceans is a problem in developing nations that lack recycling and proper landfills

The global chemicals industry has a unified effort to promote recycling in developing nations

Source: IEA

≈95% OF PLASTIC IN THE WORLD'S OCEANS ORIGINATE FROM JUST 10 RIVERS

95% Of Plastic Polluting The World's Oceans

Comes From These 10 Rivers

Data Source: Schmidt - Export of Plastic Debris by Rivers into the Sea (2017)

Consumer products and petrochemical companies collaborated with Ocean Conservancy to form Circulate Capital ("CC") in 2018.

is an impact-focused investment management firm dedicated to incubating and financing companies and infrastructure that prevent the flow of plastic waste into the world's oceans. CC focuses on the prevention of mismanaged plastic waste in countries located in South Asia and Southeast Asia, regions that contribute disproportionately to ocean plastic pollution primarily because they often lack the critical waste infrastructure to manage and recycle plastic pollution.

Founding Investors include: PepsiCo, Procter & Gamble, Dow, Danone, Unilever and The Coca-Cola Company; also supported by 3M, American Chemistry Council, Kimberly-Clark, Partnerships in Environmental Management for the Seas of East Asia (PEMSEA) and the World Plastics Council

ENTERPRISE EXPORTS

enterpriseproducts.com

ENTERPRISE EXPORT FACILITIES

≈5 MMBPD of Capacity and Growing

		300				Gross Ethane Export Volumes

		250
MBPD	200
150

		100
		50
		0

		3Q 2017	1Q 2018	3Q 2018	1Q 2019	3Q 2019	1Q 2020E	3Q 2020E
						Ethane			Capacity (1)
	5,000				Gross Crude Export Volumes

	4,000
	3,000
MBPD							Planned expansion:
								4Q 2020 +840 MBPD

	2,000

	1,000
		0

		3Q 2017	1Q 2018	3Q 2018	1Q 2019	3Q 2019	1Q 2020E	3Q 2020E
						Crude		Capacity (1)

(1) Capacity shown is max loading rate based on BPH; operational max is closer to 80-85% of loading. Note: Other products not represented above include: C5s, MTBE and refined products.

	1,200			Gross LPG Export Volumes

	1,000
	800
MBPD	600
						Planned expansion:

								3Q 2020 +260 MBPD
	400

	200
	0

	3Q 2017	1Q 2018	3Q 2018	1Q 2019	3Q 2019	1Q 2020E	3Q 2020E
				LPG			Capacity (1)
	140			Gross PGP Export Volumes


	120						Planned expansion:
							4Q 2020 +67 MBPD
MBPD	100

80
60

	40
	20
	0

	3Q 2017	1Q 2018	3Q 2018	1Q 2019	3Q 2019	1Q 2020E	3Q 2020E
				PGP			Capacity (1)

ENTERPRISE HOUSTON SHIP CHANNEL

The U.S. Premier Hydrocarbon Export Facility

	•	Crude Oil	•	Bunker Fuels
s	•	Condensate	•	Refrigerated Low Ethane Propane (LEC3)
L S	•	Natural Gasoline (C5+)	•	HD5 Propane (C3)
E , N G D U C T
• Refinery Grade Propylene (RGP)	•	Isobutane (IC4)
•	Normal Butane (NC4)
•	Refinery Grade Butane (RGB)
D O	•	Methyl Tertiary Butyl Ether (MTBE)	•	LPG Mix
	Butane Mix
R U P R	•
•	Isooctane (IC8)
•	PGP
C &	•	Isooctene (IC8=)
•	Naphtha

Methanol (MeOH)

HOUSTON SHIP CHANNEL	MONT BELVIEU

EHSC

CROSS CHANNEL
CONNECTIONS

S T O R A G E & D O C K S

Storage

Over 26 MMBbls crude and products storage
Additional ≈1.0 MMBbls nearing completion
Room to grow

Docks

7 ship docks, 1 barge dock
Up to 45' draft
Up to LOA - 950'/Beam - 175'

JANUARY-SEPTEMBER 2019 USGC CRUDE EXPORTS 710 MMBbls

Enterprise USGC Exports: 226 MMbbls (32%)

NWE: 26% of

U.S. Crude Exports

Asia: 31% of U.S.

Jan-Sept

Crude Exports

710 Exported

= 27% Exports

15% of U.S.

Crude Exports

Sources: EIA and EPD Fundamentals

JANUARY-SEPTEMBER 2019: 51% OF USGC NGL EXPORTS WENT TO ASIA!

Enterprise: 168 MMBbls (42%)

Jan-Sept 2019 USGC Exported

395 MMBbls C2: 48 MMBbls C3: 280 MMBbls C4: 67 MMBbls

LatAm: 17%

of U.S. NGL Exports

C2: 1 MMBbls

C3: 57 MMBbls

C4: 8 MMBbls

Europe: 13% of	Far East Asia: 43%
of U.S. NGL Exports
U.S. NGL Exports
C2: 2 MMBbls
C2: 21 MMBbls
C3: 137 MMBbls
C3: 25 MMBbls
C4: 31 MMBbls
C4: 4 MMBbls

	Indian Ocean: 8%
Other Countries: 20%	of U.S. NGL Exports
C2: 21 MMBbls
of U.S. NGL Exports	C3: 6 MMBbls
C2: 3 MMBbls	C4: 4 MMBbls
C3: 54 MMBbls
C4: 21 MMBbls

Source: Waterborne

HOUSTON VS. CORPUS CHRISTI AREA

Market vs. Destination

The Houston marketoffers an implicit hedge on operational upsets, closed arbs and volatile demand.

Corpus is a destination-one with little margin for error in refiner runs, storage and export economics (ultimately controlled by OPEC).

	Houston Area	Corpus Christi

Supply	5 MMBPD	1.4 MMBPD
(Growing to 8 MMBPD)

Refiner Demand	4.4 MMBPD	0.8 MMBPD
# Local Refiners	12	3
Average Refiner Distillation Unit	330 MBPD	250 MBPD
Capacity


Average Refiner % of Demand	8%	30%


Storage Capacity	>300 MMBbl	<20 MMBbl

Storage Capacity as Days of Supply	75 days	14 days

Price Transparency	Argus; CME and ICE	Nothing
Futures Contracts

There are only 2 forms of oil demand:

Refineries (Domestic & Global)
Storage

o Refinery runs are unreliable

o Regular maintenance and upsets can be significant and extended

It took 4 months for USGC refinery runs to return to normal after Hurricane Harvey;

Enterprise's export docks were fully operational in less than a week.

GROWTH PROJECTS UPDATE

enterpriseproducts.com

PERMIAN EXPANSION PROJECTS

>$8 Billion of Capital Investments

NGL Projects

In-service:

South Eddy and Waha Gas Plants added 350 MMcf/d

Orla Gas Plant and related gathering

3 trains added 900 MMcf/d of capacity and 120 MBPD of NGL production

Shin Oak NGL Pipeline moved 350 MBPD at end of 3Q 2019; expected ramp to 550 MBPD in 4Q 2019

9th NGL Fractionator at Mont Belvieu added 90 MBPD capacity

Under Construction:

Mentone Gas Plant (scheduled 1Q 2020); 300 MMcf/d

Will bring total Permian plant capacity >1.6 Bcf/d and >250 MBPD of NGLs

Frac 10 and 11 (scheduled 4Q 2019 and 2Q 2020); expected to add 300 MBPD

Will bring total Mont Belvieu area capacity to >1 MMBPD

Crude Oil Projects

In-service:

Midland-to-ECHO 1 and 2 Crude Pipeline

≈820 MBPD

Permian Crude Gathering System

Red Hills to Loving / to Midland Crude Pipeline

Current: 200 MBPD; expandable to 350 MBPD

Under construction:

Midland and ECHO storage expansions 2.4 MBMBbls under construction

Midland-to-ECHO 3 expected to add 450 MBPD of capacity (scheduled 3Q 2020) Midland-to-ECHO 4 expected to add 450 MBPD of capacity (scheduled 1H 2021)

Mont Belvieu

Note: Design, location and other technical information shown in this presentation is preliminary and subject to change.

Jefferson

Offshore Terminal

OFFSHORE CRUDE OIL EXPORT TERMINAL

6 MMBPD Supply, 2 MMBPD Export Capacity

Burnet	Milam	Brazos

Existing EPD Pipeline
Proposed Onshore Pipeline
Proposed Offshore Pipeline

Gillespie	Blanco
		Bastrop
	Hays
Kendall
	Comal	Caldwell

	Guadalupe	SEALY
Bexar	Colorado

		Gonzales
Commercial Details:

Final Investment Decision made pending regulatory approval Wharton
Announced Chevron as anchor shipper
Anticipate approximately 2 year construction period once
approval received	Matagorda

Signed letter of intent to jointly develop SPOT with Enbridge

Operational Details:

Access to >300 MMBbls of Gulf Coast storage and 6 MMBPD of supply

Capable of loading at 85 MBPH

Manned platform meets or exceeds USCG regulations Located ≈30 nautical miles offshore in ≈115' water depth Dedicated anchorage area

Dual 36" pipelines will provide flexibility and reliability

Walker	Polk	Tyler

	San Jacinto
		Jasper
		Hardin
Montgomery		Orange
	Liberty

Harris

EHSC Chambers

ECHO

Brazoria

36"

Freeport New Terminal

ENTERPRISE CME / NYMEX HOUSTON WTI FUTURES CONTRACT

Meeting customer demands:

Specifications are reflective of Midland crude and provide a consistent, quality barrel of crude oil

Cushing	Refinery	Cushing	Export


Magellan		EHSC	Magellan

•	40 -44 API
	°°
•	0.275% sulfur
•	4 ppm nickel
•	4 ppm vanadium	Midland

3 delivery points

ECHO

•	Enterprise Genoa	Contracts
•	Enterprise Houston Ship Channel (EHSC)	30,000
25,000
EPD-CME futures contracts have traded	20,000

on average over 105%more volume than 15,000
the ICE contract since November 2018	10,000
5,000

EPD ECHOExport

GENOA

Refinery

XOM Baytown

Houston Futures Contract Volumes

CME	ICE	Sources: NYMEX and ICE

PROPANE DEHYDROGENATION UNIT ("PDH") 2

Under Construction

Commercial Details

Announced anchor contracts with Lyondell affiliate

Long-term contract durations

Fixed fee contracts

Integrates with existing propane and propylene network:

PDH 1, propylene fractionation, storage, pipelines and export facility

Operational Details

Designed to consume up to 35 MBPD of propane and produce 25 MBPD (or 1.65 billion lbs/yr) of polymer grade propylene ("PGP")

Scheduled to be completed 1H 2023

Fixed Fee Engineering, Procurement and Construction contract

Expanding Petrochemical Midstream Services

PDH 1: Catofin dehydro with splitter

iBDH: Oleflex dehydro

PDH 2: Oleflex dehydro with splitter

Rendering

iBDH

The "Other" DeHydrogenation Project

Capacity

937 million pounds of isobutylene annually (425,000 metric tons)
Doubles Enterprise's capacity
Consumes 30 MBPD butane

Schedule

>75% complete and on budget
Expected 4Q 2019 completion

Contracts

50% will fill Crude Isobutylene sales on a 15-year,fee-based contract with an investment grade company, all on a feedstock cost-plus basis

Facility rendering

25% will fill Enterprise's HPIB capacity for lubricants, additives and rubber, all on a feedstock cost-plus basis
25% will fill Enterprise's MTBE capacity into the export motor gasoline market

ENTERPRISE ETHYLENE SYSTEM

Under Development

STORAGE & CONNECTIVITY

PIPELINE

EXPORT TERMINAL

Cavern capacity 600 million lbs.
Cavern In / Out delivery rates expandable up to 420,000 lbs. per hour
8 industry pipelines within half mile of Enterprise storage header
Additional MTBV Enterprise owned caverns available for market growth

Access to USGC ethylene via Enterprise Mont Belvieu system
New pipeline enhances industry connectivity by directly linking Mont Belvieu Caverns to the export terminal and to USGC markets

Export System capable of 2.2 billion lbs. per year
Loading rate of 2.2 million lbs. per hour
On-siterefrigerated storage for 66 million lbs.
Multiple docks for loading
Expected in-service: 4Q 2019; full operations by 4Q 2020

3rd Party Storage	Ethylene Refrigeration	Ethylene Export

	& On-Site Storage
	Ethylene
	Pipeline
Mont Belvieu Caverns
New Ethylene Cavern
3rd Party Olefins Plants	3rd Party Ethylene Connections

© ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P.		67

GILLIS LATERAL

Expansion and Extension of the Acadian Gas System

Commercial Details

Supported by long-term contracts

Demand oriented, offers suppliers access to higher value markets

Links Acadian system to 3rd party interconnects near Gillis, Louisiana, including pipelines serving LNG export facilities

Operational Details

Anticipated expansion of Acadian system to 2.1 Bcf/d

Gillis Lateral

Planning construction of an ≈80-milenew-build pipeline
1 Bcf/d expected capacity

Anticipated in-servicemid-2021

Gas Processing Plant

Underground Storage

Compressor Station

Enterprise Natural Gas Pipelines

Selected 3rd Party Pipelines

MORE GROWTH ON THE HORIZON

Potential >$5 Billion of Opportunities

Producer driven projects

Additional gas processing plants
Expand existing and build additional NGL fractionators
Expand Seaway crude oil pipeline capacity (announced

open season)

Add natural gas, NGL & other crude pipeline capacity
Demand driven projects
Offshore crude oil port (FID, pending regulatory approval)
Additional LPG export capacity
Expand Aegis ethane pipeline
Additional marine terminal capacity (multi-product)

ENVIRONMENTAL, SOCIAL AND

GOVERNANCE ("ESG")

enterpriseproducts.com

IEA EXPECTS NATURAL GAS TO HELP REDUCE CO2 EMISSIONS AT THE EXPENSE OF COAL

AND OIL

The world needs fossil fuels

Pounds CO2 per MMBtu

Natural gas is expected to play a central role in reducing CO2 emissions

Natural gas is needed to displace coal and oil as it emits 30%-50% less CO2 per unit of energy

Worldwide, 450 coal plants currently under construction or planned; two-thirds are in China, India and SE Asia(1)

Thousand Megawatt Hours

5,000,000

Net Power Generation by Source

4,000,000

3,000,000

2,000,000

1,000,000

2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018
Coal	Petroleum Liquids	Petroleum Coke	Natural Gas	Other Gas	Nuclear	Conventional Hydro	Solar Other Renewables		Other

(1) "Getting Real About the Green New Deal" by Jason Bordoff

Source: EIA

POWER GENERATION FROM SHALE NATURAL GAS AND RENEWABLES HAS LED TO LOWER CO2 EMISSIONS

	15% Decrease in U.S. CO2 Emissions Since 2007
Tons	3,500			7,000

Metric	3,000			6,000	Tons

Million	2,500			5,000	Metric

Gas & Petroleum in	2,000			4,000	Emissions in Million
1,500			3,000
1,000			2,000
Natural	500			1,000	Total
Coal,	0			0

	Total	Coal	Natural Gas	Petroleum & Liquids

The U.S. accounted for 14 % of Global GHG emissions in 2017 while China accounted for 27% of Global GHG emissions according to the World Resources Institute

China's average annual growth rate for coal consumption from 2000 to 2013 was ≈9%.
China's coal fire capacity could expand by another 30% according to the research unit of the China State Grid Corporation

Source: EIA

NGLS PRODUCE ADVANCED MATERIALS FOR MAKING LIGHTER CARS AND PLANES

Approximately 35% of NGLs are consumed as a feedstock for producing plastics and chemicals, which are used in everyday life

Advanced plastics and coatings enables more efficient planes, cars, houses and appliances, thus reducing energy usage and corresponding CO2 emissions

In some developing countries, "single use" plastics end up as rubbish, pollution on land, or in oceans

Particularly countries lacking adequate rubbish collection and disposal, or recycling policies and incentives
Many countries have banned or limited the use of plastic bags while other have implemented serious recycling policies with consumer awareness programs Source: EPD Fundamentals

ETHYLENE AND ITS USAGE

PRODUCTS YOU CAN'T DO WITHOUT

		% of Total
Derivative Name	in 000's MT	Ethylene	Common Uses	Recycling
High Density Polyethylene	46,000	29%	Housewares, Crates, Drums, Bottles (strong)	average
Linear Low Density Polyethylene	32,000	20%	Food Packaging, Film, Trash Bags, Diapers, Toys	difficult

Ethylene Oxide	25,000	16%	Mostly Bottles, Antifreeze, Clothing, Film	common
Low Density Polyethylene	22,000	14%	Food Containers, Squeezable Bottles, Film, Plastic Bags, Toys	average

Ethylene Dichloride	14,000	9%	Siding, Windows, Frames, PVC Pipe, Medical Tubing	difficult
Styrene / Ethyl Benzene	9,000	6%	Insulation, Cups, Lenses, Tires, Hoses, Latex, Carpeting, Coatings	difficult

Other	13,000	8%		difficult
Total	161,000

Ethylene is used to make what are known as single use plastics such as water bottles, bags, films and packaging

Less than 25% of ethylene demand is prime target for mandated or incentive-based recycling; however,
- Most other ethylene-based products are extremely hard to replace or recycle
- Plastic bags and film packaging cannot be recycled if contaminated
- Depending on use, film packaging can have differing formulations making them harder to recycle

Sources: Bloomberg and EPD

PROPYLENE IS USED IN DURABLE GOODS

AGAIN, EXTREMELY HARD TO REPLACE

		% of Total
Derivative Name	in 000's MT	Propylene	Common Uses	Recycling
PolyPropylene	69,000	67%	Automotive, Diapers, Consumer Products, Clothing	difficult
Propylene Oxide	7,500	7%	Furniture, Insulation, Fiberglass, Appliances, Automotive, Detergent, Solvents	difficult

Acrylonitrile	6,500	6%	Clothing, Carpet, Appliance, Automotive, Rubber	difficult
Cumene	4,000	4%	Parmaceuticals, Cosmetics, Lenses, Polyesters, Soda Bottles, Solvents	difficult

Acrylic Acid	4,000	4%	Paints, Adhesives, Textiles, Super-absorbants	difficult
Butanols	2,500	2%		difficult

2-Ethylhexanol	2,500	2%		difficult
Isopropanol	800	1%	PMMA (Acrylic), Solvents	difficult

Others	6,000	6%
Total	102,800

Propylene is used for its durability and light weight

Product complexity (generally part of larger consumer product or structure) and lifespan often makes it a poor target for recycling

Sources: Bloomberg and EPD

ENVIRONMENTAL, SOCIAL AND

GOVERNANCE PRIORITIES

Governance and Oversight:

The Governance Committee oversees implementation of policies related to environmental protection, transportation compliance, health & safety policies

Board-levelcommittee includes Chairman of the board and two external directors

The Safety Leadership Council has executive-level oversight of safety and environmental stewardship

Members include the CEO, Chairman, President and other executives who meet weekly

Safety Objectives:

Abide by "GoalZero" policy

•	Daily safety moments remind employees that:
	"No task is so important that it be done at the	Rate
	risk of safety"
	Injury
•	Every meeting begins with a safety moment

≈$1 billion spent on maintaining our assets

Best-in-class training

In 2018, over 280,000 hours of safety, technical and compliance training was provided

Some courses offered to external stakeholders and regulators

The OHSA Recordable Rate is calculated by multiplying the number of recordable injury cases by 200,000 and then dividing that number by the actual number of labor hours at the company

ESG PRIORITIES (continued)

Environmental Stewardship Principles: Continuous monitoring of environmental data, allows us to anticipate and prevent issues. Utilize systems to track operational and emissions data, and identify opportunities for improvement.

Evaluate opportunities to lower emissions and energy consumption to promote efficiencies and better protect the public and environment
Proactive involvement in the environmental regulatory process helps ensure responsible government policy.
Collaborate with industry associations such as: Houston Regional Monitoring, Gas Processors Association and Texas Pipeline Association to share best practices for continuous improvement

Other areas of emphasis:

Stakeholder Engagement: Leadership role in over two dozen key state and federal associations, allowing us to coordinate advocacy and participate in key industry issues, including environmental and safety initiatives, pipeline security, safe and reliable pipeline construction and engagement with landowners and Native Americans.
Community Support: >$110MM of investments, financial contributions and commitments from 2015 through November 2019 have supported economic development, first responders, educational development and Public Safety awareness

TOTAL DIRECT EMISSIONS AND ECONOMIC INTENSITY

Million MT CO2e

Total Direct CO2e Emissions(1,2,3)

10.0
			+10 %
8.0		8.9		8.7	9.0	9.5
8.6	8.4	8.2	8.6

6.0

4.0

2.0

0.0

2011

2012

2013

2014

2015

2016

2017

2018

GOM ($ / MT Direct CO e Emissions 2

Gross Operating Margin / Direct Emissions

$900
				+71% improvement			$771

$800

$700						$598	$653	$611	$634

$600				$576

		$495
$500
	$451

$400

$300
$200
$100
$0
2011	2012	2013	2014	2015	2016	2017	2018

Percent Change

70%			Increase in Volumes from 2011-2018 vs. Increase in Emissions
	59.7%	57.6%

60%		55.0%

50%
40%
30%				26.0%
20%
10%
0%

10%

Total Petrochemical	Total NGL Fractionation	Total Liquid Pipeline	Total Fee-based	Total Direct
Facilities Volumes	Volumes	Volumes	Processing Volumes	CO2e Emissions

Reportable direct CO2 equivalent emissions with global warming potential ratios.
Includes new assets from acquisitions or construction including: Oiltanking and EFS acquisitions, new pipelines, processing facilities, storage and export facilities.
See Definitions in Appendix.

EPD HAS ADDED ASSETS WITHOUT INCREASING CARBON INTENSITY(3)

	2.8	Total Direct CO2e Emissions/Bbl(1,2)

	2.5			(16%)
MMBoe	2.4
2.1				2.2	2.2
	2.1	2.1		2.1
		2.0

1.4
e per

2
CO	0.7
MT
	0.0
	2011	2012	2013	2014	2015	2016	2017	2018

Output	3.5		NGL Fractionation CO2e Emissions/Bbl(1)
2.8	3.3
						(33%)
of			2.8	2.9			2.6	2.5

MBbl	2.1				2.4	2.4	2.2



e per	1.4

2	0.7
MT CO
0.0


		2011	2012	2013	2014	2015	2016	2017	2018

		Natural Gas Processing CO e Emissions/Bbl(1)
Output	20.0					2
			(13%)
	18.9
16.0		18.3	17.4
	16.7				16.4
of						15.5	15.4
					14.3
per MBbl	12.0


8.0
e
2
CO	4.0
MT	0.0

		2011	2012	2013	2014	2015	2016	2017	2018

Output	3.0	MTBV PGP Splitters CO2e Emissions/Bbl(1)

2.5	2.8	2.6	2.5	(25%)

of
2.0			2.2

MBbl				2.0	2.0	2.1	2.1
1.5

per	1.0
e

2
CO	0.5
MT	0.0

		2011	2012	2013	2014	2015	2016	2017	2018

Reportable direct CO2 equivalent emissions with global warming potential ratios.
Includes new assets from acquisitions or construction including: Oiltanking and EFS acquisitions, new pipelines, processing facilities, storage and export facilities.
Processing, Fractionation and Splitters make up ≈50% of total emissions.

APPENDIX

enterpriseproducts.com

CREDIT QUALITY OF TOP CUSTOMERS

Revenue from Top 25 Customers by Rating(1)

Top 25 Customers

Account for 63% of EPD's 2018 revenue

≈89% of revenue is from customers with an investment grade credit rating or backed by a letter of credit

Top 200 Customers

B- to B+

1.7%

9.1%

BB- to

BB+

9.1%A- to AA

38.0%

BBB- to

BBB+

42.1%

Account for 96.0% of EPD's 2018 revenue

≈79% of revenue is from customers with an investment grade credit rating or backed by a letter of credit

Less than 5% of revenue from non-rated or sub-investment grade independent E&P's

- 19 customers
As of January 31, 2019

Revenue from Top 200 Customers by Rating(1)

	Not Rated
	2.7%
	LC
	11.8%
B- to B+	A- to AA
5.0%	30.8%
BB- to
BB+
12.9%
	BBB- to
	BBB+
	36.7%

GROWTH CAPITAL PROJECTS

2019 YTD

4Q 2019

1Q 2020

2Q 2020

3Q 2020

4Q 2020

2021+

NGL Pipeline & Services

Orla gas plants - 900 MMcf/d and related pipeline (I & II in service, III 2Q 2019)

Done

Shin Oak (Permian to Mont Belvieu) 24" NGL pipeline in service, ramp to 550 MBPD (4Q 2019)

Done

√

Shoup, South Texas Fractionation Optimization (2Q 2019)

Done

Front Range and Texas Express mixed NGL pipeline expansions (1Q 2020)

√

EHT - LPG dock metering and refrigeration expansion (3Q 2019 & 4Q 2020)

Done

√

Panola III gas plant and related pipelines (4Q 2019)

√

Mentone gas plant in Permian and related pipelines (1Q 2020)

√

Mont Belvieu fractionators - 150 MBPD each (4Q 2019 & 2Q 2020)

√

ATEX pipeline expansion - 45 MBPD (2022)

√

Crude Oil Pipelines & Services

Midland-to-ECHO 24" pipeline (in service) and four 240 MBbl storage at Sealy

Done

Permian pipelines - Red Hills-Loving-Midland and gathering (June 2018 & 1Q 2020)

√

Houston Ship Channel 58 acres tanks

Done

√

Eagle Ford (JV) - crude oil dock at Corpus Christi (2Q 2019)

Done

Midland-to-ECHO 2 NGL pipeline conversion (2Q 2019)

Done

Midland-to-ECHO 3 pipeline expansion and related storage (3Q 2020 & 1Q 2021)

√

EHT crude export dock replacement and expansion (4Q 2020)

√

EFS condensate delivery expansions (2Q 2020)

√

Midland-to-ECHO 4 pipeline (2Q 2021)

√

Petrochemical & Refined Products Services

Refined products export dock - Beaumont expansion (1Q 2018-2019)

Done

Ethylene storage, 12" Mont Belvieu to Bayport pipeline and export terminal (2019-2020)

Done

√

Isobutane Dehydrogenation ("iBDH") unit (4Q 2019)

√

Mont Belvieu DIB expansion (3Q 2020)

√

Mont Belvieu ISOM and HPiC4 pipeline (2022)

√

EHT propylene refrigeration and export expansion (4Q 2020)

√

Propylene pipelines - PGP expansion (2Q 2019) and RGP expansion (4Q 2020)

Done

√

PDH2 - 35 MBPD of propane and 1.65 B lbs/year of PGP (1H 2023)

√

Other

Done

√

Natural Gas Pipelines & Services

Permian gathering systems (3Q 2019)

Done

Gillis lateral 80-mile pipeline (1 Bcf/d) and capacity increase on Acadian pipeline (mid-2021)

√

Value of capital placed in service ($ Billions) $

3.0

Value of remaining capital projects to be placed in service ($ Billions)

2.5

0.5

0.6

0.8

0.9

3.8

MONT BELVIEU FRACTIONATION CAPACITY

MBbls
6,000
5,000
4,000
3,000
2,000
1,000
-

Existing	Potential New Frac Capacity	Cumulative New Supply
This chart measures total supply vs. Mont Belvieu Frac capacity and does not consider available capacity in Louisiana, South Texas or at Conway	Source: IEA and EPD Fundamentals published Aug. 2019
© ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P.		83

CAPITAL PROJECTS VS. BUYBACKS SUPPORT

Capital Deployment Scenario

$2B "Grossed Up" Growth Capital Assumptions:

$1B retained cash flow funded and $1B debt funded with a 2 year construction period

• Assumes 30 year debt financing at 4%

12% ROIC

Current distribution coverage of 1.6x is maintained

Maintenance expense beginning year 3 after completion

Credit neutral

$1B Growth Capital Assumptions:

$1B spend with a 2 year construction period

Assumes 100% retained cash flow funded

12% ROIC

Current distribution coverage of 1.6x is maintained

Maintenance expense beginning year 3 after completion

Credit positive

$1B Buyback Assumptions:

$1B buyback over a 2 year period ($500 MM/year)

Assumes 100% retained cash flow funded

Assumes a $26 stock price (11% DCF yield)

Current distribution coverage of 1.6x is maintained

Credit neutral / negative

DEFINITIONS

Return on Invested Capital ("ROIC") is calculated by dividing non-GAAP gross operating margin for the assets (the numerator) by the average 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 or construction cost.

Operational Distributable Cash Flow ("DCF") represents DCF excluding proceeds from asset sales and property damage insurance claims and net receipts / payments from the monetization of interest rate derivative instruments.

Distributable Cash Flow ("DCF") per Unit is determined by dividing DCF for a period by the average number of fully diluted common units outstanding for that period.

Net Cash Flows Provided by Operating Activities ("CFFO") represents the GAAP financial measure "Net cash flows provided by operating activities".

CFFO Yield is calculated as trailing 12 month CFFO per share divided by stock price.

Free Cash Flow ("FCF") per unit is calculated as the free cash flow divided by the number of fully diluted common units outstanding for that period.

Total Return is defined as distribution yield plus price appreciation.

Price / Earnings is defined as current share price relative to trailing 12 months earnings per share.

Price / Cash Flow is defined as current share price relative to trailing 12 months cash flow from operations divided by the basic weighted average number of shares.

CFFO Payout Ratio is calculated as trailing 12 months distribution per share divided by the trailing 12 months cash flow from operations.

Leverage is defined as net debt divided by adjusted EBITDA.

Adjusted EBITDA is adjusted earnings before interest, taxes, depreciation and amortization. EV / EBITDA is calculated as Enterprise Value divided by estimated EBITDA.

DEFINITIONS - ESG

Direct

Subpart C - Emissions from Stationary Combustion Equipment (regardless of facility)
Subpart W - Emissions from Petroleum and Natural Gas Systems: all other equipment emissions from natural gas processing, transmission, storage. Also, includes emissions from gas gathering and boosting.

INDICATIVE ATTRIBUTION OF GROSS

OPERATING MARGIN

Slides 29-31 attribute gross operating margin (GOM) among fee-based,commodity-based and differential- based business activities. Most activities fit easily into one category; however, the classification of certain activities involves an element of subjectivity. The classifications reflected in the referenced slides represent what we currently believe is the most logical fit of our business activities into the categories described below, based on the underlying fee or pricing characteristics applicable thereto.

These classifications may be subject to change in the event that management's estimates or assumptions underlying such classifications are revised or updated. In addition, our attribution of GOM into the categories described below may not be comparable to similar classifications by other companies because such companies may use different estimates and assumptions than we do in defining such categories or otherwise calculating such attributions.

Three categories of GOM:

Fee-based: Pipeline transportation fees and tariffs, NGL and propylene fractionation fees, storage capacity reservation and throughput fees, export terminal fees, marine and trucking fees, fee-based natural gas processing arrangements, isomerization and dehydrogenation fees, demand and deficiency fees, and similar activities that are predominantly fee- oriented.
Commodity-based:Percentage-of-liquids and percentage-of-proceeds natural gas processing arrangements, certain condensate sales, gathering revenues on our San Juan natural gas pipeline system, and similar activities that have commodity price exposure.
Differential-based: Certain business activities where earnings are generated based on price differentials or spreads between locations, time periods and products in excess of any related fees, tariffs and other expenses.

NON-GAAP RECONCILIATIONS

enterpriseproducts.com

DISTRIBUTABLE CASH FLOW

We measure cash available for distribution by reference to distributable cash flow ("DCF"). DCF is a quantitative standard used by the investment community for evaluating publicly traded partnerships since 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. Our management compares the DCF we generate to the cash distributions we expect to pay our partners to compute our distribution coverage ratio. Our calculation of DCF may or may not be comparable to similarly titled measures used by other companies. The GAAP financial measure most directly comparable to DCF is cash flow from operations ("CFFO"), otherwise referred to as net cash flows provided by operating activities.

See "Investors - Non-GAAP Financial Measures" on our website (www.enterpriseproducts.com) for more information regarding DCF, including additional reconciliation detail. The following table presents our calculation of DCF for each of the three years ended December 31, 2018 or periods presented below (dollars in millions):

		YTD 2019		3Q 2019		2Q 2019		1Q 2019		2018		2017		2016
Net income attributable to limited partners (GAAP)	$	3,494	$	1,018	$	1,215	$	1,261	$	4,172	$	2,799	$	2,513
Depreciation, amortization and accretion		1,457		494		488		475		1,792		1,644		1,552
Distributions received from unconsolidated affiliates		485		170		171		144		529		483		452
Equity in income of unconsolidated affiliates		(431)		(139)		(137)		(155)		(480)		(426)		(362)
Sustaining capital expenditures		(233)		(91)		(80)		(62)		(321)		(244)		(252)
Proceeds from asset sales		17		1		14		2		161		40		47
Other, net		201		187		51		(37)		136		206		154
Distributable Cash Flow (non-GAAP)		4,990		1,640		1,722		1,628		5,989		4,502		4,103
Reconciliation to Cash Flow from Operations:
Sustaining capital expenditures		233		91		80		62		321		244		252
Proceeds from asset sales		(17)		(1)		(14)		(2)		(161)		(40)		(47)
Net effect of changes in operating accounts		(409)		(77)		228		(560)		16		32		(181)
Other, net		30		(10)		7		33		(39)		(72)		(61)
Cash Flow from Operations (GAAP)	$	4,827	$	1,643	$	2,023	$	1,161	$	6,126	$	4,666	$	4,067
Average Fully-Diluted Units Outstanding during period (millions)		2,202		2,202		2,203		2,202		2,189		2,159		2,100
© ALL RIGHTS RESERVED. ENTERPRISE PRODUCTS PARTNERS L.P.														89

GROSS OPERATING MARGIN

We evaluate segment performance based on our financial measure of gross operating margin ("GOM"). GOM 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. GOM is presented on a 100 percent basis before any allocation of earnings to noncontrolling interests. Our calculation of GOM may or may not be comparable to similarly titled measures used by other companies. The GAAP financial measure most directly comparable to total segment GOM is operating income.

See "Investors - Non-GAAP Financial Measures" on our website (www.enterpriseproducts.com) for more information regarding GOM, including additional reconciliation detail. The following table presents our calculation of GOM for each of the three years ended December 31, 2018 or periods presented below (dollars in millions):

		YTD 2019		3Q 2019		2Q 2019		1Q 2019		2018		2017		2016
GOM by segment:
NGL Pipelines & Services	$	2,933	$	1,008	$	966	$	959	$	3,831	$	3,258	$	2,991
Crude Oil Pipelines & Services		1,671		496		513		662		1,511		987		855
Natural Gas Pipelines & Services		825		259		302		264		891		715		735
Petrochemical & Refined Products Services		836		288		305		243		1,058		715		651
Total segment GOM		6,265		2,051		2,086		2,128		7,291		5,675		5,232
Other adjustments, net		(14)		(15)		(5)		6		35		6		17
Total GOM (non-GAAP)		6,251		2,036		2,081		2,134		7,326		5,681		5,249

Reconciliation to Operating Income: Depreciation, amortization and accretion General & administrative costs

Other, including non-cash impairment charges Operating income (GAAP)

	(1,381)		(467)		(463)		(451)		(1,687)		(1,531)		(1,457)
	(160)		(55)		(53)		(52)		(208)		(181)		(160)
	(50)		(40)		(5)		(5)		(22)		(39)		(51)
$	4,660	$	1,474	$	1,560	$	1,626	$	5,409	$	3,929	$	3,581

FREE CASH FLOW

Free cash flow ("FCF") is a traditional cash flow metric that is widely used by investors and other participants in the financial community. In general, FCF is a measure of how much cash flow a business generates during a specified time period after accounting for all capital investments, including expenditures for growth and sustaining capital projects. We believe that FCF is important to investors since it reflects the amount of cash available for reducing debt, investing in additional capital projects, paying distributions, common unit repurchases and similar matters. Our calculation of FCF may or may not be comparable to similarly titled measures used by other companies. The GAAP financial measure most directly comparable to FCF is CFFO.

See "Investors - Non-GAAP Financial Measures" on our website (www.enterpriseproducts.com) for more information regarding FCF, including additional reconciliation detail. The following table presents our calculation of FCF for each of the three years ended December 31, 2018 or periods presented below (dollars in millions):

Cash Flow from Operations (GAAP) Net cash used in investing activities

Cash distributions from noncontrolling interests Cash contributions paid to noncontrolling interests Free Cash Flow (non-GAAP)

	YTD 2019		3Q 2019		2Q 2019		1Q 2019		2018		2017		2016
$	4,827	$	1,643	$	2,023	$	1,161	$	6,126	$	4,666	$	4,067
	(3,373)		(1,086)		(1,112)		(1,175)		(4,282)		(3,286)		(4,006)
	591		491		65		35		238		-		20
	(70)		(23)		(29)		(18)		(81)		(49)		(47)
$	1,975	$	1,025	$	947	$	3	$	2,001	$	1,331	$	34

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 rating agencies, to assess the financial performance of our assets without regard to financing methods, capital structures or historical cost basis; the ability of our assets to generate cash sufficient to pay interest and support our indebtedness; and the viability of projects and the overall rates of return on alternative investment opportunities. Our calculation of Adjusted EBITDA may or may not be comparable to similarly titled measures used by other companies. The GAAP financial measure most directly comparable to Adjusted EBITDA is CFFO.

See "Investors - Non-GAAP Financial Measures" on our website (www.enterpriseproducts.com) for more information regarding Adjusted EBITDA, including additional reconciliation detail. The following table presents our calculation of Adjusted EBITDA for each of the three years ended December 31, 2018 or periods presented below (dollars in millions):

		YTD 2019		3Q 2019		2Q 2019		1Q 2019		2018		2017		2016
Net income (GAAP)	$	3,562	$	1,045	$	1,237	$	1,280	$	4,239	$	2,856	$	2,553
Depreciation, amortization and accretion		1,416		480		475		461		1,723		1,566		1,487
Interest expense		950		383		290		277		1,097		985		983
Distributions received from unconsolidated affiliates		485		170		171		144		529		483		452
Provision for income taxes		37		15		10		12		61		26		23
Equity in income of unconsolidated affiliates		(431)		(139)		(137)		(155)		(480)		(426)		(362)
Other, net		79		69		43		(33)		54		125		120
Adjusted EBITDA		6,098		2,023		2,089		1,986		7,223		5,615		5,256
Reconciliation to Cash Flow from Operations:
Interest expense		(950)		(383)		(290)		(277)		(1,097)		(985)		(983)
Net effect of changes in operating accounts		(409)		(77)		228		(560)		16		32		(181)
Other, net		88		80		(4)		12		(16)		4		(25)
Cash Flow from Operations (GAAP)	$	4,827	$	1,643	$	2,023	$	1,161	$	6,126	$	4,666	$	4,067

INVESTOR RELATIONS

CONTACT INFORMATION

Randy Burkhalter - Vice President, Investor Relations

(713) 381-6812
rburkhalter@eprod.com

Jackie Richert - Director, Investor Relations

(713) 381-3920
jmrichert@eprod.com

Libby Strait - Manager, Investor Relations

(713) 381-4754
ecstrait@eprod.com

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Enterprise Products Partners LP published this content on 11 December 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 December 2019 12:40:05 UTC

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Sector Update: Energy Stocks Declining in Late Tuesday Afternoon Trading	Apr. 09	MT
Sector Update: Energy	Apr. 09	MT
Enterprise Products Partners Obtains Deepwater Port License to Develop Sea Port Oil Terminal	Apr. 09	MT
Enterprise Products gets port license for Gulf of Mexico oil terminal	Apr. 09	RE
Enterprise Products gets port license for oil terminal	Apr. 09	RE
Enterprise Products Partners L.P. Receives Deepwater Port License for Spot Project	Apr. 09	CI
Enterprise Products Partners Keeps Quarterly Distribution at $0.515 a Unit, Payable May 14 Holders of Record April 30	Apr. 05	MT
Enterprise Products Partners L.P Declares Quarterly Distribution, Payable on May 14, 2024	Apr. 05	CI
US court upholds license for deepwater oil-export facility	Apr. 04	RE
Scotiabank Adjusts Enterprise Products Partners Price Target to $32 From $31, Maintains Sector Outperform Rating	Apr. 04	MT
Sector Update: Energy Stocks Rise in Wednesday Afternoon Trading	Apr. 03	MT
Enterprise Products Partners to Build New Natural Gas Plant in Texas to Expand Permian Basin Operations	Apr. 03	MT
Transcript : Enterprise Products Partners L.P. - Shareholder/Analyst Call	Apr. 03
Enterprise plans natural gas processing plant to expand Permian operations	Apr. 03	RE
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Barclays Adjusts Enterprise Products Partners' Price Target to $31 From $30, Keeps Overweight Rating	Mar. 26	MT
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Calumet Specialty Products Partners Closes $200 Million Notes Offering	Mar. 13	MT
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Enterprise 2023 Schedule K-1 Tax Packages Now Available	Mar. 12	CI

Duration

Period

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Enterprise Products Partners L.P. provides midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, petrochemicals and refined products. Its NGL Pipelines & Services segment includes natural gas processing and related NGL marketing activities, NGL pipelines, NGL fractionation facilities, NGL and related product storage facilities and NGL marine terminals. Its Crude Oil Pipelines & Services segment includes crude oil pipelines, crude oil storage and marine terminals and related crude oil marketing activities. Its Natural Gas Pipelines & Services segment includes natural gas pipeline systems that provide for the gathering, treating and transportation of natural gas. Its Petrochemical & Refined Products Services segment includes propylene production facilities, butane isomerization complex and related deisobutanizer operations and others. It also owns 20% interest in Whitethorn and has two NGL fractionators located in Mont Belvieu, Texas.

Sector

Oil & Gas Transportation Services

Calendar

2024-04-28 - Ex-dividend day

More about the company

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Trading Rating

Investor Rating

ESG Refinitiv

C+

More Ratings

Sell

Buy

Mean consensus

BUY

Number of Analysts

Last Close Price

29.05 USD

Average target price

32.53 USD

Spread / Average Target

+11.99%

Consensus

Estimates Revisions

Company calendar

Capital Constrained Case

Source: EPD Fundamentals August 2019

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