Products Partners L P : Petrochemical Midstream Services Deck

ENTERPRISE PRODUCTS

APPLYING THE MIDSTREAM MODEL TO PETROCHEMICALS

August 2020

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 (including information published by third parties). When used in this presentation, words such as "anticipate," "project," "expect," "plan," "seek," "goal," "estimate," "forecast," "intend," "could," "should," "would," "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.

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Petrochemical Markets Offer Upside Growth Potential

EPD's Role and Differentiation

EPD is positioned to capitalize on key petrochemical market trends

•	Capital Discipline:	Scale and cost benefits of midstream model for downstream business
•	Commoditization:	Ability to link customers to both regional and global markets
•	Quality of Life:	Emerging markets desire for improved quality of life drives demand growth for primary
		petrochemicals and related infrastructure

Every element of EPD's petrochemical business is difficult to replicate

• Storage and hub ownership
• Established integrated pipeline system
• World-scale,fee-based processing facilities with over 40 years of operations experience
• Export terminals

	4%		Global Compound Annual Growth Rates
				(2015-2019 Avg)
Petrochemical markets	3%
historically grow in excess			GDP Growth 3%
of GDP and are a natural	2%		3.0%		3.3%	3.3%
extension of the
1%
EPD value chain			1.3%
	0%
		GDP	Oil	Ethylene	Propylene

Source: Nexant, World Bank

* For Gross Operating Margin (GOM) see the non-GAAP reconciliation section of this presentation for the closest GAAP measure © All Rights Reserved. Enterprise Products Partners L.P.

EPD Gross Operating Margin

2019

Petchem

& RP

13% NatGas

13%

NGLs

49%

Crude

25%

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EPD Petrochemical End Uses & Applications

		Crude Oil	Natural Gas
NGLs	Ethane
Propane	Butane	C5+
Primary	Ethylene				Propylene	Butylene
Petrochemicals
transport ● store ● export	produce ● transport ● store ● export	produce ● transport ● store ● export

Primary petrochemicals are the building blocks that create

thousands of specialty products used to improve the

quality of everyday life

Everyday Goods

• Cell phone and computer parts
• Food packaging
• Clothing & footwear
• Textiles: carpets, furniture
• Deodorants and cosmetics
• Pharmaceuticals
• Detergents
• Diapers
• Sports equipment

Transportation Related

• Lighter vehicle exteriors: cars, planes, boats
• Synthetic rubber tires
• Fuel additives
• Engine coolants
• Interior panels, seats & carpet
• Coatings
• Insulation
• Paints

Medical Field

• Sterile packaging (single-use): IV bags, needles, medicine bottles, liners
• Ethyl-alcohol /hand sanitizer
• Equipment: ventilators, heart rate monitors, suction machines, defibrillators, oxygen masks
• Personal, protective, equipment ("PPE"): gloves, gowns, face coverings
• Room conveniences: beds & textiles

Renewables & Other

• Wind turbine and solar panel parts
• Battery containers & parts
• Coatings
• Insulation
• Paints
• Unbreakable glass
• Agro-chemicals

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Applying the Midstream Model to Primary Petrochemicals

Fee-based Access to Economies of Scale

• Providing integrated world scale logistics and processing services for downstream customers, limiting industry overbuild
• The scale, reliability, and flexibility of EPD's petrochemical services enable customers to focus on their unique downstream advantages
• Steady growth through predominantly fee-based business; integrating with the full value chain

Fee-Based Earnings	Petrochemical
1H 2020	Gross Operating Margin1

100%

80%

60%

40%

20%

0%

13%	15%
	43%
87%	100%
85%
	57%

	Propylene		Ethylene		Octane	Butane
	Services		Services		Enhancement,	Isomerization
					HPIB & iBDH
			Fee-Based		Non-Fee Based

Petrochemical services sub-segment includes: propylene services, octane enhancement, octane enhancement/HBIP & iBDH, ethylene services, and butane isomerization

Gross Operating Margin (GOM) in $MMs

$1,600
$1,400
$1,200
$1,000					$1B+
$800
$600
$400			$710	$690
$200		$417
$306
$0
2016	2017	2018	2019	2024
					Goal2

Petchem

1. See appendix for information regarding our non-GAAP reconciliation to nearest GAAP measure
2. See appendix for supplemental information

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Page 5

Open Access Ethylene & Propylene Hubs

Transforming How Global Petrochemicals Markets Transact

• Most well connected, accessible petrochemicals market in the world
• Located at the center of the most cost advantaged, stable location for petrochemicals production
• Backed by a comprehensive suite of midstream services
• Linking North American petrochemicals to global markets
• Creating a true commodities marketplace for petrochemicals with transparent pricing and a meaningful index

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Page 6

EPD Mont Belvieu Storage Caverns

The Most Advantaged Petrochemical Storage Location in the World

Expansion Property

10 MMBbls brine storage

+10 MMBbls projected brine

West Storage

10 Wells

18 MMBbls

37 Active product caverns 157MM barrels capacity 38MM barrels in development

North & Central Storage

• 10 Wells

  31 MMBbls

• 3 New wells projected 37.5 MMBbls

East Storage	A single EPD ethylene cavern = 27 x 10,000
17 Wells	ton above ground refrigerated tanks

108 MM barrels

Map Data © 2012 Google

• Caverns provide significant scale benefits compared to above ground storage used in the rest of the world; this allows the US Gulf Coast to warehouse primary petrochemicals for the world
• Direct or indirect access to all major US producers and consumers and international demand via EPD export terminals
• Developing a true global commodity marketplace for primary petrochemicals

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Page 7

EPD Petrochemical Processing & Production

Model Creates Access to Feedstock Advantaged Production

• Existing propylene splitters, iBDH1, PDH1, iBDH2 and now expanding with PDH2
• Efficiency of midstream model enables downstream financial discipline & reduces risk of industry overbuild to create sustainable industry growth
• Commoditization of petrochemicals has the opportunity to further enable toll-processing business; provides reliable long-term cash flow & growth for EPD

PDH1

iBDH2

Asset	Production Capacity	U.S. Rank
Propylene Splitters1	7.6	B lbs /yr	1
PDHs2	3.3	B lbs/yr	1
iBDHs	2.2	B lbs/yr	1
Octane Enhancement	750 KT/yr	2

• Includes operational capacity, 2 Includes PDH2 (2023)

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PDH2 (Rendering Below)

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EPD Petrochemical Pipeline Systems

Combination of Caverns and Pipelines Creates Global Advantage for U.S.

• U.S. has unique infrastructure with extensive ethylene and propylene pipeline and storage systems, but most of this infrastructure is private, undersized, and lacks connectivity
• ≈$200B1 of US industry investment in production and consumption but little investment in logistics
• EPD is filling this market gap by creating headers across the USGC to establish the first true open-access pipeline networks for ethylene and propylene

	Pipeline	Number of	Miles of
	System	Connections2	Pipeline2
	RGP	20	500
	PGP	26	550
	Ethylene	14	125

2 Expected connections and miles by end of 2021

1Source: American Chemistry Council

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Page 9

EPD Ethylene & Propylene Exports

Providing Global Markets Reliable Access to Cost Advantaged Supply

Scale

EPD Morgan's Point Ethane and Ethylene Export Terminal

• Largest export terminals in the world for both PGP and ethylene

Reliable Supply

• High capacity pipelines directly link cavern storage to terminals
• EPD terminals are backed by the supply of entire US Gulf Coast market

Product Flexibility

International Ethylene and Propylene Receiving Terminals

• Ability to load LPG & PGP

simultaneously on +40 KT vessels

 Ability to load ethylene & ethane simultaneously on +40 KT vessels

Competitive Economics

 Scale enables ethylene & propylene exports to become as competitive as plastic pellets

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Page 10

Ethylene Value Chain

	EPD NGL Midstream Services			EPD Ethylene Midstream Services
	gas	storage	storage
	processing	cavern	cavern				ethylene
							transportation
								EPD ethylene
gathering		fractionation	transportation	ethane		Terminal
transportation		ethylene
gas	y-grade		ethane	cracker	ethylene
				caverns

ethylene

transportation

STORAGE & CONNECTIVITY

• Cavern capacity of 600 million lbs
• 8 industry pipelines within 0.5 mile of EPD storage header
• Additional EPD owned Mont Belvieu caverns available to expand ethylene storage hub

PIPELINE		EXPORT TERMINAL
• 125 miles of new, high capacity		• Export system capacity of 2.2 billion
pipelines in service by end 2021		lbs per year
• New pipelines enhance industry		• On-site refrigerated storage loading
connectivity by directly linking		rate of 2.2 million lbs per hour out of
Mont Belvieu Caverns to the		refrigerated storage
export terminal and to		• Multiple docks for loading
USGC markets

• Long-term,fee-based contracts with investment grade customers on ethylene storage, pipelines, and the export terminal

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Page 11

Propylene Value Chain

EPD NGL & Crude Midstream Services

gas	storage	storage
processing	caverns	caverns

EPD Propylene Midstream Services

polymer grade propylene (PGP)

gathering	transportation	fractionation	transportation	crackers
gas	y-grade		propane	transportation

PGP Storage

caverns

PDHs

export terminal

	storage		rail
gathering	transportation	refinery	transportation

crude oil

	RGP Storage	propylene
	splitters
trucking	caverns

Largest, most reliable refinery grade propylene off-take service for U.S. refineries and crackers

• >350 miles of dedicated gathering pipelines

• Pipeline system stretches from Louisiana to Corpus
  • >100 railcars/day of rail unload capacity

• 5 dedicated RGP storage caverns with ≈9 million barrels of storage capacity

refinery grade propylene (RGP)

Largest polymer grade propylene system in the world

• 11 billion lbs/yr of operating production capacity post PDH2
• 550 miles of delivery pipelines by end of 2021
• 26 PGP pipeline connections
• PGP caverns serve as industry hub with ≈1 billion pounds of storage
• USGC PGP export terminal with ≈3.5 billion pounds/year of capacity

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Page 12

Isobutylene Value Chain

	EPD NGL Midstream Services				EPD C4 Midstream Services
								octane
								enhancement
							methanol storage	MTBE	vessel
	gas	storage
	storage						loading
	processing	cavern	cavern		transportation	HPIB
							imix
				Butane			iBDH 1 & 2	HPIB Plant
gathering	transportation		fractionation			transportation services
	Isomerization
	y-grade						(barge, rail, truck)
gas		butanes

transportation services

cavern

(barge, rail, truck)

storage

The C4 petrochemical business upgrades butane into higher value Isobutylene & Octane Blendstock

• Approximately 2.2B lbs/yr of isobutylene production from two dehydrogenation units
• Downstream units that further upgrade isobutylene mix to High Purity Isobutylene (HPIB) and MTBE
• Isobutylene mix sold to lubricants and fuels markets
• Supported by long-term,toll-based customers

Industry leading logistics services provide access to diverse markets

• Extensive pipeline network with access to multiple USGC refineries

• >1.2MM barrels of isobutylene mix storage

• Truck, rail, barge and vessel logistics for isobutylene
• Methanol and MTBE pipeline, storage, and marine loading logistics

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Page 13

APPENDIX

2024 Potential Gross Operating Margin (GOM)

2019 Petrochemical Services GOM	$690MM
Potential Incremental GOM from New Projects	Range of $500-$700 MM
2024 GOM Goal (1)	Over $1.2B

• 2024 Goal assumes base of 2019 GOM
• Major petrochemical capital projects placed in-service between 2019-2021+ include ethylene export, iBDH, PDH 2, and pipeline & storage infrastructure
• • Total anticipated capital: ≈$4B
  • Typical midstream project unlevered return is ≈15% (+/- 2.5%) on average

1. While the potential range of gross operating margin may be $1.2B to $1.4B, our business is subject to a variety of risks as described in our SEC filings

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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, 2019 or periods presented below (dollars in millions):

	Total 2016		Total 2017		Total 2018		Total 2019
Gross operating margin by segment:
NGL Pipelines & Services	$	2,990.6	$	3,258.3	$	3,830.7	$	4,069.8
Crude Oil Pipelines & Services		854.6			987.2			1,511.3			2,087.8
Natural Gas Pipelines & Services		734.9			714.5			891.2			1,062.6
Petrochemical & Refined Products Services Segment:
Petrochemical Services		306.0			417.3			710.1			689.9
Refined Products Services		344.6			297.3			347.7			379.7
Total Petrochemical & Refined Products Services		650.6			714.6			1,057.8			1,069.6
Total segment gross operating margin (a)		5,230.7			5,674.6			7,291.0			8,289.8
Net adjustment for shipper make-up rights (b)		17.1			5.8			34.7			(24.1)
Total gross operating margin (non-GAAP)		5,247.8			5,680.4			7,325.7			8,265.7
Adjustments to reconcile non-GAAP gross operating margin to GAAP operating income
(addition or subtraction indicated by sign):
Depreciation, amortization and accretion expense in operating costs and expenses		(1,456.7)			(1,531.3)			(1,687.0)			(1,848.3)
Asset impairment and related charges in operating costs and expenses		(52.8)			(49.8)			(50.5)			(132.7)
Net gains or losses attributable to asset sales in operating costs and expenses		2.5			10.7			28.7			5.7
General and administrative costs		(160.1)			(181.1)			(208.3)			(211.7)
Operating income (GAAP) (c)	$	3,580.7		$	3,928.9		$	5,408.6		$	6,078.7

(a) Within the context of this table, total segment gross operating margin represents a subtotal and corresponds to measures similarly titled and presented with the business segment footnote found in our consolidated financial statements.

(b) Gross operating margin by segment for NGL Pipelines & Services and Crude Oil Pipelines & Services reflect adjustments for shipper make-up rights that are included in management's evaluation of segment

results. However, these adjustments are excluded from non-GAAP total gross operating margin in compliance with guidance from the SEC.
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Glossary

• HPIB: High Purity Isobutylene
• iBDH: Isobutane Dehydrogenation Unit
• KT: Thousand Metric Tons
• LPG: Liquefied Petroleum Gas
• PDH: Propane Dehydrogenation Unit
• PGP: Polymer Grade Propylene
• RGP: Refinery Grade Propylene

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TRANSFORMING GLOBAL PETROCHEMICAL MARKETS

Through open access

ethylene and propylene hubs

Video Link

www.enterpriseproducts.com