ENERGY TRANSFER PARTNERS, L.P. Analyst Day Presentation November 18, 2014 LEGAL DISCLAIMER This presentation relates to a meeting among members of management of Energy Transfer Partners, L.P. (ETP) and Energy Transfer Equity, L.P. (ETE) and analysts/investors to be held in Dallas, Texas on Tuesday, November 18, 2014. At this meeting, members of management may make statements about future events, outlook and expectations related to ETE, ETP, Sunoco LP (SUN), Regency Energy Partners LP (RGP), Sunoco Logistics Partners L.P. (SXL) and Panhandle Eastern Pipe Line Company, LP (PEPL) (collectively, the "Partnerships") and their subsidiaries and this presentation may contain statements about future events, outlook and expectations related to the Partnerships and their subsidiaries all of which statements are forward-looking statements. Any statement made by a member of management of the Partnerships at this meeting and any statement in this presentation that is not a historical fact will be deemed to be a forward-looking statement. These forward-looking statements rely on a number of assumptions concerning future events that members of management of the Partnerships believe to be reasonable, but these statements are subject to a number of risks, uncertainties and other factors, many of which are outside the control of the Partnerships. While the Partnerships believe that the assumptions concerning these future events are reasonable, we caution that there are inherent risks and uncertainties in predicting these future events that could cause the actual results, performance or achievements of the Partnerships and their subsidiaries to be materially different. These risks and uncertainties are discussed in more detail in the filings made by the Partnerships with the Securities and Exchange Commission, copies of which are available to the public. The Partnerships expressly disclaim any intention or obligation to revise or publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise. All references in this presentation to capacity of a pipeline, processing plant or storage facility relate to maximum capacity under normal operating conditions and with respect to pipeline transportation capacity, is subject to multiple factors (including natural gas injections and withdrawals at various delivery points along the pipeline and the utilization of compression) which may reduce the throughput capacity from specified capacity levels. 2 AGENDA • Partnership Update • Commercial Update / Growth Initiatives Analyst Day 2014 • Finance Outlook 3 PARTNERSHIP UPDATE ., . THE FUTURE OF ETP IS SOLID • One of the largest integrated midstream energy MLPs, with a market cap of $23.1 billion and enterprise value of $37.3 billion(1) • Diverse portfolio of cash flow sources and assets • Well-positioned to benefit from changes in natural gas and NGL supply/demand fundamentals • Clear visibility to solid growth from ramp-up in volumes from expansion projects • More than $11 billion of additional organic growth projects will deliver strong incremental distributable cash flow into the future • Five consecutive quarters of distribution increases / growth expected to continue, while managing our coverage ratio to ~1.05x (1) As of 11/10/14 2,500 2,000 1,500 1,000 500 0 $1.00 $0.98 $0.96 $0.94 $0.92 $0.90 $0.88 $0.86 $0.84 Quarterly Distribution Growth ($ per unit) Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 2013 ($ in billions) 2012 LTM Distributable Cash Flow 2011 5 AS THE PARTNERSHIP STRENGTHENS ITS LEADERSHIP POSITION IN THE U.S. ENERGY VALUE CHAIN • Our platform extends across the energy value chain as we continue to build critical mass where we operate, developing new take away capacity, extending the vertical chain from the wellhead to new emerging markets • We are rapidly increasing our presence in the Eagle Ford, Marcellus, Bakken, Permian, and other prolific basins • We are rapidly becoming a leader in the export of hydrocarbons, with natural gas exports to Mexico, waterborne NGL export projects and through our participation in the Lake Charles LNG project • Our crude oil platform, Sunoco Logistics, operates one of the fastest-growing crude, NGL and products pipeline systems in the U.S., with expansion projects under way in West Texas, Gulf Coast, Marcellus and other regions • Our wholesale and retail fuel business, Sunoco LP and legacy Susser Holdings/Sunoco Inc., represent one of the leading wholesale motor fuel distribution and retail sales platforms in the U.S. • 6,600 owned, operated or branded retail stores and more than 7.8 billion gallons of gasoline distributed annually(1) (1) As of 10/01/14, pro forma for Aloha acquisition 6 Bakken Permian Haynesville Includes Distributers, Dealers, and Co-ops Retail Locations (1) Eagle Ford Marcellus WE HAVE ASSEMBLED A NATIONWIDE FOOTPRINT THAT PROVIDES UNIQUE VALUE CREATION OPPORTUNITIES • More than 43,000 miles of natural gas, natural gas liquids (“NGL”), crude and refined product pipelines • More than 5.5 Bcf/d of natural gas processing, treating and conditioning facilities • 251 Mbbl/d of fractionation capacity • More than 175 Bcf of natural gas storage • More than 50 MMbbl of NGL storage SXL Assets Energy Transfer Partners Asset Overview ETP Assets Announced Energy Transfer Projects Lone Star Express Pipeline Lake Charles LNG Dakota Access Pipeline Nederland Rover Pipeline Eagle Point Crude Conversion Pipeline Marcus Hook Represents combined ETP and Sunoco LP retail locations PF for Aloha acquisition (1) 7 THE ETP GROWTH MODEL AT WORK Approximately $21 Billion Invested in M&A and Organic Projects Since 2011 Alone 8 2005 Acquired Houston Pipeline Company Acquired Transwestern Pipeline Company 2006 ETP (70%) and Regency (30%) acquired Louis Dreyfus Highbridge Energy, form Lone Star NGL JV 2011 ETE acquired Southern Union (SUG), ETP acquired interest in Citrus - owns Florida Gas 2012 Have monetized APU units over time / full exit of propane business Exchanged 50.16 million ETP units owned by ETE for economics of 50% of SXL GP/IDRs / retired ETP units Contribution of SUGS to Regency Sale of LDC assets to Laclede ETP acquired ETE’s interest in ETP Holdco 2013 THE COMBINATION OF KEY M&A TRANSFORMING ETP INTO A DIVERSIFIED ENERGY PARTNERSHIP 2004 Became public company through reverse merger with Heritage Propane Acquired Texas Utilities Fuel Company (TUFCO) ETP acquired Sunoco, Inc., including GP, IDRs and 32.4% of LP interests in SXL ETP and ETE formed ETP Holdco (SUG and Sunoco retail assets) Contribution of Heritage Propane to AmeriGas 2014 ETP acquired Susser Holdings, including GP, IDRs and 50% of LP interests in Susser Petroleum Partners LP Exchanged 18.71 million ETP units owned by ETE for Trunkline LNG Company, LLC (import facility) / retired ETP units 9 2008 Midcontinent Express JV – 500-mile, 36” and 42” gas pipeline serving Woodford & Barnett Shale 2009 Fayetteville Express Pipeline – 185mile, 42” gas pipeline serving Fayetteville Shale 2010 Chisholm Pipeline – 83mile, 20” pipeline to ETP’s La Grange Processing Plant 2011 2012 Lone Star Frac I at Mont Belvieu – 100,000 Bbl/d fractionator Jackson Plant in Jackson County, TX – Now 800 MMcf/d 2013 Rebel Plant – sets the stage for ETP growth in the Permian Rich Eagle Ford Mainline (REM) expanded to 1 Bcf/d 2014 Lone Star Fractionator II – 100,000 Bbl/d fractionator at Mont Belvieu Edinburg Extension & Nueces Crossover – Mexico export projects (Q4 2014) Rio Bravo Crude Conversion – Converted 84 miles of gas pipelines to crude service Godley Plant expanded to 700 MMcf/d AND ORGANIC GROWTH CONTINUING TO GIVE ETP A FOOTHOLD IN PROLIFIC PRODUCING BASINS 2007 Eight 36” and 42” gas pipelines totaling 419 miles serving Barnett Shale, Bossier Sand 43-mile Freedom and 93-mile Liberty NGL Pipelines Rich Eagle Ford Mainline (REM) Phase I -- 160mile, 30” pipeline to Chisholm Pipeline Completed first 42” gas pipeline in Texas – 242 miles Cleburne to Carthage Expanded Godley plant to 600 MMcf/d Tiger Pipeline -175-mile, 42” gas pipeline serving Haynesville Shale Dos Hermanas Pipeline – 50mile, 24” gas pipeline – ETP enters the Eagle Ford Shale Lone Star West Texas Gateway – 570-mile, 16” NGL pipeline from W. Texas to Jackson County Chisholm Plant, Kenedy Plant & REM Phase II – 70-mile, 42” gas pipeline, expands Eagle Ford infrastructure Expanded Godley plant to 400 MMcf/d Phoenix Lateral (Transwestern) – 260-mile, 36” and 42” gas pipeline Texas Independence Pipeline – 148-mile, 42” gas pipeline serving Barnett Shale ETP Justice Pipeline – 130mile, 20” NGL pipeline from Jackson County to Mont Belvieu 10 ($ million) Midstream Liquids Trans. & Svcs. Adjusted EBITDA by Operating Segment Intrastate LTM 25% 11% 12% 12% 12% 21% 7% $4,533 Interstate 2013 32% 12% 12% 9% 8% 22% 5% All other 2012 37% 22% 17% 5% 8% 4% 8% $2,744 Propane 2011 21% 37% 22% 12% 7% $1,781 Crude / Refined Products 21% 18% $1,541 Retail Marketing $1,475 18% 14% 46% 14% 52% 16% 2010 $3,953 HAS PROVIDED ETP WITH A STRONG, DIVERSE ASSET BASE THAT HAS DRIVEN STEADY GROWTH $5,000 $4,000 $3,000 $2,000 $1,000 $0 2009 11 SEAILVIJJNI I 17L EIEHSNVEIJ. Under Development Under Evaluation ETP GROWTH DRIVERS Mexico Export Projects Mariner South Lone Star Frac III REM Plant II East Texas Plant Lone Star Express Pipeline Rover Pipeline Dakota Access & Trunkline Crude Conversion Project Lake Charles LNG Facility Gas processing opportunities – Utica, Marcellus, Permian and Eagle Ford Basins Additional fractionation capacity Natural gas export opportunities LPG export opportunities 15 WE CONTINUOUSLY EVALUATE OUR ASSETS TO ENSURE THEY ARE BEING PUT TO OPTIMAL USE Rio Bravo Crude Pipeline ETP Pipelines Mariner East Mariner West Energy Transfer Crude Oil Pipeline Repurposing Projects Transwestern NGL Conversions Mariner South Lake Charles LNG Trunkline Liquefaction 16 SEAILVIJJNI WVEHLSGIIN MIDSTREAM ASSETS Interstate Pipeline Assets ~6,500 miles of gathering pipelines with over 2 Bcf/d of processing capacity 18 MIDSTREAM HIGHLIGHTS The Midstream Segment is expected to be a strong and growing contributor to our business over the next several years as more than $4.2 billion of growth projects placed in service over the past several years ramp up to full capacity • ETP is now one of the largest natural gas gatherers and processors in the Eagle Ford • Our multi-year Eagle Ford build-out continues to grow with the addition of new processing plants • And with the Rebel Plant recently placed in service, we are excited about our growth plans in West Texas Projects placed in service have been underpinned by long-term, fee-based contracts • Most contracts are 10 years or more in duration Synergistic revenues with ETP downstream assets • The majority of ETP’s processed volumes are transported and fractionated by Lone Star NGL • A large percentage of our plant residue volumes are delivered into ETP intrastate pipelines 19 WTI BREAKEVEN PRICE FOR 15% AFTER-TAX IRR $76/bbl Current Price Energy Transfer G&P Areas ASSUMES NATURAL GAS AT $4.00/MMBTU $100.00 $90.00 $80.00 $70.00 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 $- Wall Street Research 20 EAGLE FORD AND EAGLEBINE FEE-BASED VOLUMES CONTINUE TO RAMP UP • Processed volumes increased by over 500 MMcf/d from 2013 to 2014 • Expect processed volumes to increase 400 MMcf/d by the end of 2015 • Eagle Ford and Eaglebine processing capacity now exceeds 1.4 Bcf/d • With the new plant expansions, processing capacity will exceed 1.8 Bcf/d – REM Eagle Ford II Expected in-service mid 2015 – East Texas - Expected in-service Q4 2015 • Total gathering capacity now exceeds 2 Bcf/d 21 3 I Mac 2:50.30 .2??va PERMIAN BASIN EXPANSION • Rebel processing plant placed in-service July 2014 Martin Andrews 16” Big Spring • Expect plant to be at full capacity of 180 MMcf/d by Q3 2015 • Gathering capacity expanding to 700 MMcf/d Howard Mitchell 20” Midland Ector Odessa • Expect additional processing capacity to be announced in the near future 6” Midland 12” 8” Glasscock 20” 16” 16” Residue Outlets ETC-NTP 36” Lone Star Gateway Sterling 20” • Synergistic ties to ETP’s downstream assets Reagan Crane – Lone Star NGL Upton – ET Fuel Intrastate • Rebel system built in the heart of the prolific Permian Basin Rebel System Plant SXL Permian Express II Project ETC Pipelines Rebel System SXL Permian Express II Extension Lone Star NGL Rebel-Lone Star NGL SXL Crude Oil Major Railroad Lines 23 Lone Star NGL Asset Overview • • • • • • Fractionation and Processing Lone Star West Texas Gateway Expansion Approved Lone Star Express ETP-Copano Liberty JV • Two cryogenic processing plants • 25,000 Bpd fractionator at Geismar, LA • Raw make truck rack Refinery Services Pipeline Transportation Chalmette Hattiesburg • Two 100,000 Bpd fractionators at Mont Belvieu • Third Fractionator (Dec 2015) • Ability to build a total of 6 Mont Belvieu fractionators on current footprint Godley Geismar ETP Freedom Sea Robin Existing Lone Star ETP Spirit Plant Sorrento ETP Justice Fractionation Mt Belvieu 2,000+ miles of NGL Pipelines ~ 400 Mbpd of raw make transport capacity Expanding capacity to 700 Mbpd 210 Mbpd LPG export terminal 80 Mbpd of Diluent export capacity Extensive Houston Ship Channel pipeline network LONE STAR NGL ASSETS NGL Storage • ~53 million barrels NGL storage • Permitted to drill additional 8 caverns Baden LaGrange/Chisholm Kenedy Jackson Storage 25 LONE STAR NGL HIGHLIGHTS Announced Projects • Lone Star Express NGL Pipeline • Conversion of existing 12” NGL line to crude oil service • Fractionator III • Mariner South expected in-service by year end Volume Growth • Volumes transported are up over 25% year over year • Fractionated volumes are up over 129% year over year Future Opportunities • Footprint for Fractionators IV, V & VI • Expansion of NGL export capacity • Continued development of Houston ship channel NGL distribution system • Development of 8 additional NGL storage caverns 26 RGP Jal Lone Star West Texas Pipeline 12” (140 Mbpd) ETP Rebel RGP Haley ETP LaGrange/Chisholm ETP Jackson 1, 2, 3, 4 ETP Kenedy Lone Star West Texas Gateway 16” (210 Mbpd) RGP Tippett RGP Keystone Other Fractionators Lone Star Fractionators Connected Plants Regency Plants ETP Plants Mariner South Batching C2 & C4 Capacity (200 Mbpd) Lone Star Mt. Belvieu Frac (200 Mbpd) NGL Storage Capacity (50 MMbbl) ETP Justice 20” (340 Mbpd) ETP Freedom/Liberty (75 Mbpd) ETP Godley 1, 2, 3, 5 OUR INTEGRATED ASSETS ALLOW FOR NUMEROUS SYNERGIES ACROSS THE FAMILY RGP Red Bluff RGP Mivida RGP Bone Spring RGP Coyanosa RGP Waha Lone Star West Texas NGL Lone Star West Texas Gateway ETP Justice NGL Line ETP Freedom NGL ETP-Copano JV Liberty NGL ETP Spirit NGL 27 Baden Existing Lone Star NGL Y-Grade Pipeline 12” Conversion to Crude Service Lone Star Express Pipeline LONE STAR EXPRESS NGL PIPELINE & CONVERSION OF EXISTING 12” NGL LINE TO CRUDE OIL SERVICE • 533 miles of new 24” and 30” NGL pipelines from the Permian Basin to Mont Belvieu • Capacity: – 24” Pipeline - 375 Mbpd – 30” Pipeline - 495 Mbpd • Contracted volumes in excess of 200 Mbpd • Conversion of Lone Star’s existing West Texas 12” NGL line to crude oil service • Expected In-Service: – Phase I – 24” Q1 2016 – Phase II – 30” Q3 2016 – Phase III – Crude Oil Conversion Q1 2017 • Estimated cost - $1.5 to $1.8 billion 24” 30” Mont Belvieu 28 Frac I 100 Mbpd Dec ‘12 Potential site for Fracs IV , V, VI Frac II 100 Mbpd Oct ‘13 LONE STAR’S MONT BELVIEU COMPLEX – FRAC III TO BE IN-SERVICE DECEMBER 2015 Frac III 100 Mbpd Dec ‘15 De-C2 100 Mbpd Nov ‘14 29 Mont Belvieu Facilities MARINER SOUTH - EXPECTED IN-SERVICE BY YEAR END • Joint project between SXL and Lone Star • Will integrate SXL’s existing Nederland terminal and pipeline with Lone Star’s Mont Belvieu fractionation and storage facilities • Creates a world-class LPG export/import operation in the Gulf Coast • Capacity of ~200 Mbpd batching propane and butane • Nederland Terminal will provide 24-hour ship access in the Gulf Coast with a load rate of up to 30,000 barrels/hr • Supported under long-term, fee-based contract Nederland Terminal 30 .52?.me I SEAILVIJJNI ?8 dlE BAKKEN CRUDE OIL PIPELINE • Total cost of the combined projects is expected to be approximately $4.8 - $5.0 billion – P66 equity partner for 25% Expected to be in-service in Q4 2016 • Originates in the Bakken/Three Forks production area and will deliver in excess of 450 Mbpd to the Patoka Hub in Illinois • Supported by long-term fee based contracts – Delivery points include up to 3 terminal interconnections at the Patoka Hub, one rail terminal interconnect and interconnection with ETCO (Trunkline conversion) – Interconnects with SXL and P66 at Nederland • Trunkline Conversion 754 miles of 30” to crude service Patoka 1,124 miles of new 30” Nederland Delivery Points 33 • • • • • • • Patoka Receipts for Delivery to Nederland Truck Loading/Unloading, Stabilization, Vapor Recovery North Dakota Bakken Oil & Gas Gathering Canadian Bakken DJ Basin / Niobrara Lateral Powder River Basin Extension Local Transportation Service in North Dakota Using DAPL Assets Rail Deliveries to East Coast SEPARATE GROWTH OPPORTUNITIES • 34 RIO BRAVO CRUDE PIPELINE • Conversion of 84 miles of gas pipelines to crude/ condensate service – In-service October 2014 • Capacity Lease Agreement – Leased 100% of system to Trafigura – 100 - 110 Mbpd – 10-year agreement with renewal option • Gas Pipeline Revenue – Retained gas transport revenue 35 SEAILVIJJNI Transwestern INTERSTATE PIPELINE ASSETS 1 Trunkline Florida Gas Transmission Fayetteville Express Tiger Sea Robin ~17,500 miles of Interstate pipelines with over 15 Bcf/d of throughput capacity 37 INTERSTATE PIPELINE BACKHAUL OPPORTUNITIES AWAY FROM TRADITIONAL MARKETS Current Flow Potential Flow 38 INTERSTATE HIGHLIGHTS Our Interstate pipelines provide: • Diversity - access to multiple shale plays, storage facilities and markets • Stability - nearly 90% of revenue is derived from fixed reservation fees • Growth Opportunity - well-positioned to capitalize on changing supply and demand dynamics Transwestern’s outlook has strengthened over the past year due to several factors, including: • Moderate increase in demand due to coal-fired generation and San Onofre nuclear retirements and expected increase in demand for gas-fired power generation in California due to drought-impacted hydroelectric output from the Northwest • Expanded capacity to serve summer load near Phoenix • Attractively priced Mid-Continent and San Juan natural gas supplies Both our Fayetteville Express and Tiger pipelines continue to perform under their longterm contracts • 92.5% of FEP capacity is contracted through 2020 and 100% of Tiger is contracted through 2020 – 2025 Florida Gas Transmission remains one of our top performing assets • Have now contracted approximately 90% of Phase VIII capacity under long-term agreements averaging 25 years 39 Midwest Hub MARCELLUS/UTICA ROVER PIPELINE 3.25 BCF/D FULLY CONTRACTED • Sourcing natural gas from the Marcellus and Utica shales • Connectivity to numerous markets in the U.S. and Canada • Expected in-service: December 2016 to Defiance and mid-2017 to Dawn • ~800 miles of new pipeline with capacity of 3.25 Bcf/d • Cost $3.8 – $4.4 billion • 20% interest equity partner / additional equity partner option expires January 2015 • ETP will own no less than 65% and will build and operate the pipeline Dawn 40 SEAILVIJJNI Over 7,700 miles of intrastate pipelines ~14 Bcf/d of throughput capacity ~74 Bcf of owned storage capacity Katy Oasis ET Fuel Houston Pipeline Interstate Pipeline Assets INTRASTATE PIPELINE ASSETS • • • 42 INTRASTATE HIGHLIGHTS - TURNING THE CORNER • While our Intrastate Segment has been challenged these past several years, we believe the downward trend in EBITDA is largely behind us and expect a flattening to upward trend over the next 12 - 24 months – The majority of 2014 – 2016 contract roll-offs across our system are expected to renew at similar levels, and we expect the ramp-up in volumes from the Woodford and Permian to offset declines in the Barnett – Natural gas volumes continue to grow in the Eagle Ford and Permian as producers maintain active wet gas and crude oil drilling programs • Our Intrastate Segment is well-positioned to capture additional revenues from anticipated changes in natural gas supply and demand in the next five years – Our intrastate network is a cohesive, integrated system with bi-directional flow capabilities, which allows for natural gas delivery to multiple destinations from numerous basins and receipt points – Exports to Mexico are expected to require approximately 4.5 Bcf/d of U.S. natural gas by 2016 – LNG project development along the Gulf Coast could require between 12 -14 Bcf/d of incremental capacity by 2017 to 2019 – Petrochemical development in Texas and Louisiana is expected to create additional demand for natural gas along the Gulf Coast 43 MEXICO PROJECTS UNDER DEVELOPMENT Edinburg Extension • 24 miles of 24” intrastate pipeline expansion connecting HPL to Mexico • ETP ownership of ~1.5 miles of pipeline and meter station across the border of Mexico • Capacity – 130,000 Mcf/d • 15-year contract executed with CFE • Anticipated in-service December 2014 Nueces Crossover • 51 miles of 36” intrastate pipeline connecting HPL to the NETmex 42” pipeline • Capacity - 830,000 Mcf/d • 15-year contract executed with CFE • Anticipated in-service December 2014 44 POTENTIAL MEXICO PROJECTS – U.S. SIDE Waha to Mexico Pipelines • Two 42” pipelines with up to 2.8 Bcf/d capacity • Header system at Waha • Open bid process • Bids due: Dec 2014/Jan 2015 45 MEXICO INTERIOR PROJECTS Ojinaga to El Encino • 148 Miles of 42” pipeline system • Total capacity of 1,356 MMcf/d delivered to EL Encino • Contract term: 25 years • Bids due: Oct 2014 • Award date: Nov 2014 • Scheduled in-service: Mar 2017 El Encino to La Laguna • 254 Miles of 42” pipeline system plus 20 mile 16” pipe lateral • Total capacity of 1,356 MMcf/d delivered to La Laguna • Contract term: 25 years • Bids due: Nov 2014 • Award date: Dec 2014 • Scheduled in-service: Mar 2017 46 EONVNH $329 $1,781 $3 $222 $127 $389 $667 $373 2011 2012 $1,013 $601 $467 $126 $219 $109 $209 $2,744 2013 $1,269 $464 $479 $351 $325 $871 $194 $3,953 Adjusted EBITDA ($ millions) $1,541 Interstate Intrastate Midstream Liquids Trans. & Svcs. Retail Marketing Crude / Refined Products Propane Other $1,475 $206 $716 $6 $270 $768 $220 $3 $270 $228 2010 $0.98 $1.00 $328 $0.84 $0.86 $0.88 $0.90 $0.92 $0.94 $0.96 LTM 9/30/14 $1,130 $507 $571 $526 $527 $944 $4,533 Q1 Q2 $0.89375 $0.89375 Q3 $0.905 Q4 $0.920 Q1 $0.935 Distribution / LP Unit WE ARE DELIVERING ON THE INVESTMENTS MADE OVER THE PAST SEVERAL YEARS $5,000 $4,000 $3,000 $2,000 $1,000 $0 2009 2013 $0.955 Q2 2014 $0.975 Q3 48 Oct-13 ETP PAA Apr-14 OKS EPD Relative Price Performance Since July 1, 2013 WPZ Jan-14 Aug-14 EEP WHILE ETP HAS PERFORMED WELL AGAINST ITS PEERS SINCE IT RESUMED DISTRIBUTION GROWTH 140% 130% 120% 110% 100% 90% 80% Jul-13 Source: Bloomberg as of 11/10/14 128% 120% 115% 101% 95% 94% Nov-14 49 Q2 2013 ETP Q3 2013 WPZ Q1 2014 OKS EPD Distribution Growth Rates PAA Q4 2013 EEP Q2 2014 2.1% 7.7% 7.6% 7.4% 9.1% 12.3% Distribution Growth Since Q2 2013 6.2% 7.1% 6.5% 3.9% 6.0% 5.0% Annualized Yield Q3 2014 WE BELIEVE IT IS STILL UNDERVALUED GIVEN ITS PROVEN DISTRIBUTION GROWTH 14% 12% 10% 8% 6% 4% 2% 0% Source: Bloomberg as of 11/10/14 50 Midstream Interstate Liquids Transportation & Services AND ITS ROBUST BACKLOG OF ATTRACTIVE GROWTH PROJECTS BACKED BY LONG-TERM, FEE-BASED CONTRACTS Intrastate $6.9bn – $7.4bn capex1 (Q1 2016 – Q1 2017) Pipeline • Lone Star Express (Q4 2016) • Bakken Pipeline (Q4 2015) • Lone Star Frac III (Q1 2015) LPG Export Project • Lone Star Mariner South $3.8bn – $4.4bn capex1 (Q4 2016 – Q2 2017) • Rover Pipeline $375mm – $410mm capex • Volunteer Pipeline (Q4 2015) • East Texas Plant (Q2 2015) • REM Eagle Ford Plant II ~$210mm capex • Edinburg Extension & Nueces Crossover pipelines for exports to Mexico (Q4 2014) (Q4 2015) Capital expenditures include 100% of joint venture projects Net of JV Partner Contributions, ETP Plans to Invest More Than $8 Billion on Projects Contracted at 6.0x – 8.0x Multiples To Deliver More than $1 Billion of Expected Incremental Annual Cash Flow 1 51 ETP HAS ADDITIONAL LEVERS TO DRIVE INCREMENTAL VALUE WHICH ARE NOT REFLECTED IN ITS CURRENT UNIT PRICE • 67.1 million LP Units • 50% GP / IDRs • 15.0 million LP Units • 100% GP/IDRs • 40% interest in Lake Charles LNG Export Company, LLC • 31.4 million LP Units • 6.3 million Class F Units • 33% interest in Philadelphia Energy Solutions LLC, which owns GP/IDRs of PES Logistics Partners, L.P. Significant Value is Embedded Within ETP’s Interests in SXL, SUN, Lake Charles LNG, RGP and PES 52 Oct-13 ETP Jan-14 WPZ PAA Apr-14 OKS EPD Aug-14 EEP Yield to Maturity for Notes of Similar Maturity Since July 1, 2013 WE DO NOT BELIEVE OUR BONDS REFLECT THE UNDERLYING VALUE & SECURITY OF OUR ASSETS 5.0% 4.5% 4.0% 3.5% 3.0% 2.5% Jul-13 Source: Bloomberg as of 11/10/14 3.80% 3.68% 3.57% 3.33% 3.30% 3.25% Nov-14 53 GIVEN OUR STRENGTHENING CREDIT PROFILE & DEMONSTRATED COMMITMENT TO INVESTMENT GRADE RATINGS • Increased size, scale and geographic reach with ETP consolidated PP&E now $31.7 billion and consolidated LTM Adjusted EBITDA of $4.5 billion as of 9/30/14 – Supported by numerous organic growth projects underpinned by long-term, fee-based contracts • Significantly increased business diversity to reduce Texas natural gas basis differential concentration • Exited the propane business, reduced commodity exposure and focused on fee-based contracts, which now account for greater than 80% of consolidated Adjusted EBITDA (excluding Retail and Other) • Reduced Debt / EBITDA, as defined in our revolving credit facility credit agreement, from a peak of 5.10x in Q2 2013 to 4.13x in Q3 2014 – Used more than $1.9 billion of transaction proceeds to reduce consolidated indebtedness & consistently funded growth with a balanced mix of equity and debt • Completed or announced several strategic transactions to help streamline the Partnership structure and manage our credit metrics including the contribution of SUGS to Regency, the sale of the LDCs to Laclede and the consolidation of Holdco • Began segregation of the Sunoco retail marketing business which, while not a single point-in-time transaction, we believe provides a sound and deliberate exit path that provides meaningful credit improvement 54 WE HAVE FOCUSED ON REDUCING VOLATILITY THROUGH FEE-BASED CONTRACTS & REDUCED COMMODITY EXPOSURE • Primarily firm reservation charges based on the amount of firm capacity reserved regardless of usage • Demand fees consisting of fixed fees for the reservation of an agreed amount of throughput capacity • Transportation fees based on the actual throughput volumes • Retained fuel based on a percentage of gas transported on the pipeline • Natural gas storage fees • 80% + • 90% + • 70% – 80% % Fee-Based • Fee-based gathering, transportation, and processing contracts • Some percent-of-proceeds and acreage dedication contracts along with minimal keep-whole volumes • 80% – 85% Primary Revenue Mix • Transportation revenue principally from dedicated capacity & take-or-pay contracts • Storage revenue consists of both storage fees and throughput fees • Fractionation fees based on throughput and recovery rates • N/A Intrastate Transportation Midstream • Revenue is principally generated from the wholesale & retail sale of gasoline and mixed merchandise • 80% + (SXL) Crude / Refined Products Retail Marketing & Storage Interstate Transportation & Storage Liquids Transportation & Services • Earnings are principally fee-based, derived from the transportation, terminalling, and storage of crude oil, refined products and natural gas liquids • In addition, there are complimentary acquisition and marketing assets which are used to facilitate the purchase and sale of crude oil, refined products and natural gas liquids 55 Exposure 64,657 0.0 4.6 0.7 1.3 2.5 Average Strip Price1 $4.02 $0.25 $0.84 $1.07 $1.05 $1.62 Annual Contribution ($ mm) $94.8 0.0 59.9 11.3 20.6 62.0 $248.5 $4,533.0 5.5% Impact of 10% Price Movement ($ mm) $9.5 0.0 6.0 1.1 2.1 6.2 $24.8 1 Represents average 2015 strip prices as of 11/7/14. Implies a NGL composite price of approximately $0.73 per gallon Note: Exposure is net of hedges in place as of 11/7/14 LTM Adjusted EBITDA as of 9/30/14 Annual Commodity Exposure as % of LTM Adj. EBITDA Commodity Natural Gas (MMbtu/d) Ethane (Mbpd) Propane (Mbpd) Iso-Butane (Mbpd) Normal Butane (Mbpd) Natural Gasoline (Mbpd) Total 2015 Average Commodity Price Sensitivity WE MANAGE OUR LIMITED COMMODITY PRICE EXPOSURE THROUGH PRUDENT RISK MANAGEMENT POLICIES • Fee-based cash flows make up a significant portion of our business • Where we have commodity price exposure, we look to opportunistically hedge – Commodity exposure is weighted towards C3 and C5+ – Our plants have the ability to reduce ethane recoveries in an unfavorable pricing environment • As of October 31, 2014, we have hedged 72% of our 2014 and 5% of our 2015 natural gas retained fuel exposure: – 2014: Average hedge price of $4.08/MMbtu – 2015: Average hedge price of $4.10/MMbtu • As of October 31, 2014, we had 35.5 Bcf of natural gas in storage at our Bammel facility for our own account: – This volume has been hedged forward for the next winter withdrawal season • As of October 31, 2014, we had 44% of equity NGLs hedged for 2014 – Hedges were executed as purity products • Our retail business has limited direct commodity exposure and benefits from declining crude oil prices 56 2 BB+/BB, 11% BBB/BBB-, 24% Excludes Sunoco Logistics AAA/AA+, 6% AA/A-, 29% BBB+, 18% Total = $1,477.5 million