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Enterprise’s Operating and Business Environment

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1 Enterprise’s Operating and Business Environment
Special Emphasis on the U.S. Ethylene Industry Peter Fasullo En*Vantage, Inc May 26, 2004

2 Topics to be Covered 3 Study Scope ………...………………………………………. 4 - 5
Page(s) 3 4 - 5 6 7 - 13 Study Scope ………...………………………………………. Basic Approach & Focus Areas…………………… Terminology ………………………………………………… EPD’s & GTM’s Business Profile……………………….. Industry Overview: Supply & Demand…………………. Short & Long Term Market Outlook……………………. Sensitivity Cases………………………………..

3 Study Scope – Study set out to answer:
How sensitive is EPD’s profitability to: the business cycles of the US Ethylene Industry; and, to different price decks for crude oil and natural gas? Has EPD seen the Ethylene cycle trough and what is the outlook for the Industry? Will the merger with GulfTerra change EPD’s sensitivity to Ethylene cycles? Do long term market fundamentals favor EPD?

4 Basic Approach & Focus Areas (1)
Examined EPD’s business segments and interrelationships to assess EPD’s sensitivity to the US Ethylene Industry. Business Segment Business Functions Natural Gas Storage Pipelines Petrochemical Terminal Services NGL Profiled each segment: Earnings Contribution Products Handled & Markets Primary Business Drivers NGL Fractionation Isomerization Propylene Splitting Gas Processing Processing NGL Marketing Octane Enhancement MTBE

5 Basic Approach & Focus Areas (2)
Specifically focused on: The Effect of High Natural Gas Prices on: The U.S. Ethylene Industry The U.S. Gas Processing Industry The Economy and its influence on the U.S. Ethylene Industry Developed short and long term industry outlooks, specifically for ethane. Evaluated EPD’s operating income sensitivity (with and without GTM) to changes in Ethylene Operating Environment and Commodity Prices.

6 Terminology Y-Grade or Raw NGL Mix - are the raw NGLs (ethane, propane, butanes and natural gasoline) extracted from natural gas by a gas processing plant. Refinery Gas Liquids (RGLs) - are light hydrocarbons such as ethane, propane, normal and iso-butanes that are produced as the result of refining crude oil. Fractionation - the process by which individual NGL components are separated from raw NGL, LPG or RGL mixes. “Frac Spread” – is the term commonly used to express the price differential between the market value of the individual NGL component and its heating value if left in the natural gas stream. “Frac Spreads” are commonly expressed in cents per gallon (cpg) or dollars per million British Thermal Units ($/MM BTU). Propylene Splitting - the process of purifying propylene to polymer grade by fractionating out propane and other hydrocarbons from the propane/propylene mix. Isomerization – the process of changing normal butane to iso-butane.. Primary Petrochemicals - mainly the production of ethylene and other olefin co-products (propylene, butylenes) from the “cracking” of NGLs and refinery intermediate products, such as naphtha and gas oil commonly referred to as heavy liquids. The “cracking” of hydrocarbon feedstocks is the thermal process by which Ethylene plants produce primary petrochemicals.

7 Business Profiles Enterprise & GulfTerra

8 EPD’s primary operating sector is along the NGL value chain
EPD’s primary operating sector is along the NGL value chain. GulfTerra’s is weighted more to natural gas midstream services. Downstream Midstream NGL (raw mix) Transportation Purity Product Transportation Refined Products Upstream Primary Petrochem. Exploration & Production Processing & Treating Fractionation & Splitting Product Storage Fuel Uses Industrial Markets Gas Gathering Res/Com Markets Gas Transportation Local Gas Distribution Gas Storage The U.S. Midstream Sector is the logistical link connecting the E&P, Gas, Refining and Petrochemical Industries. Independent Power Generation Power Distribution Power Markets

9 EPD asset base concentrated on Gulf Coast with linkage to the Western and Mid-Cont. producing regions via MAPL/Seminole. Third Party Pipelines

10 Over 90% of EPD’s Business is expected to be generated from NGL and Petrochemical Midstream Services during 2004.

11 GTM asset base highly concentrated in Texas and San Juan Basin with positions in the GOM.
15,700+ miles gas pipeline (10.3 Bcf/d) 340+ miles offshore oil pipeline (635 MBbl /d) 5 Processing/treating plants (1.5 Bcf / 50 MBbl /d) San Juan Basin 4 NGL fractionation plants (120 MBbl /d) San Juan 20 Bcf gas storage; 25 MMBbl NGL storage Basin Black Warrior Black Warrior 6 offshore hub platforms Basin Basin CARLSBAD CARLSBAD PETAL STORAGE PETAL STORAGE Permian Permian Basin Basin Gas pipeline Gas pipeline Gas pipeline under construction Gas pipeline under construction Viosca Knoll Viosca Knoll Cameron Cameron Poseidon Poseidon Oil pipeline Oil pipeline HIOS HIOS Highway Highway Oil pipeline under construction Oil pipeline under construction Medusa Medusa NGL pipeline NGL pipeline Allegheny Allegheny Platform Platform Falcon Falcon Platform under construction Platform under construction Falcon Falcon Nest Nest East East Red Red Gas processing/treating plant Gas processing/treating plant Marco Marco TEXAS NGL TEXAS NGL Breaks Breaks Hawk Hawk Polo Polo NGL fractionation plant NGL fractionation plant FACILITIES FACILITIES Gas storage facility Gas storage facility

12 GulfTerra Business Breakdown*
During 2004, over 70% of GTM’s Business is expected to be Oil & Gas Midstream Services - only 28% generated from NGL Midstream Services. GulfTerra Business Breakdown* (Current Composition of Annualized EBITDA) Processing Plants: 20% NGL Midstream Services: 28 % NGL Pipelines, Fractionation & Storage: 8% Oil & Gas Midstream Services: 72% * Includes GulfTerra and 9 Gas Processing Plants to be Acquired from El Paso Corp.

13 Expected Enterprise + GulfTerra Business Breakdown
The Merger will diversify EPD’s business and provide more balance in Midstream Services for Both Companies. Expected Enterprise + GulfTerra Business Breakdown For 2004 Processing Plants: 16% Oil & Gas NGL Midstream Services: Midstream 37% Services: 53% NGL Pipelines, Fractionation & Storage: 37% Propylene Splitting & Butane Isomerization: 10% Combination provides: Better balance between NGLs, Oil, and Gas Services Integration of Facilities Business Risk Mitigation *Does Not Include the $30 MM Cost Saving Synergies or Commercial Synergies yet to be Quantified.

14 Industry Overview Supply Side

15 To gain an appreciation of the fundamentals driving NGL supply, demand and pricing, an overview of the primary supply sources and market end uses will be provided. NGL Supply Sources NGLs Produced NGL End Uses NGLs Consumed Ethane Propane Normal Butane Iso-Butane Natural Gasoline Ethane Propane Normal Butane Iso-Butane Natural Gasoline Gas Processing & Fractionation Primary Petrochemicals¹ ¹ Mainly Ethylene and other primary olefins produced in an Ethylene Plant Normal Butane Iso-Butane Natural Gasoline Motor Gasoline & Blendstocks Ethane Propane Normal Butane Iso-Butane Crude Oil Refining Space Heating & Other Fuel Uses Propane Propane Mixed Butanes Overland & Waterborne Imports Propane Mixed Butanes Exports

16 Two thirds of U.S. NGL Supply comes from Gas Processing; Ethylene Production accounts for 54% of NGL Demand. Primary

17 5-Year Average NGL/Ethane Regional Production from Processing
US NGL Production from Gas Processing corresponds with the location of the largest natural gas reserves. 5-Year Average NGL/Ethane Regional Production from Processing (MBPD ) 80% of US Gas Production is Processed 590 processing plants BCFD capacity 56% of plant capacity is cryogenic 70 fractionators million BPD capacity 85 % of Frac capacity at market centers Total Processing NGLs: 1843 MBPD Total Processing Ethane: 682 MBPD 202/80 11%/12% 116/9 6%/1% 54/20 3%/3% 237/85 13%/12% Rocky Mtn. 207/97 11%/14% Mid-Continent 318/111 17%/16% Texas Inland 570/222 31%/33% Texas Gulf Coast Louisiana Gulf Coast New Mexico 139/58 8%/9% Upper Midwest % of US NGL Production / % of US Ethane Production Other

18 La Gulf Coast & Offshore
Major Processing Regions are linked to NGL Market Centers by Specific Transportation Corridors. NGL Flow Diagram Edmonton/ Ft. Saskatchewan WCSB Transportation corridors set the regional cost to transport NGLs to market centers. Over 90% of U.S. Ethylene Capacity on USGC About 50% of U.S. Refining Capacity on USGC The regional value of gas sets the relative cost basis for NGLs at each region Sarnia Rocky Mountains Conway Anadarko San Juan Major Processing Regions Arkoma NGL Fractionation represents another cost component for NGLs River Permian NGL Market Centers (Storage, Fractionation, Pipelines) Mt. Belvieu La Gulf Coast & Offshore South Texas NGL Product Flows

19 NGL production is primarily non-discretionary
NGL production is primarily non-discretionary. However, ethane extraction from gas processing is discretionary and the most economically sensitive NGL component. NGL/RGL Gas Processing Crude Oil Refining Ethane Discretionary 1 By-product Propane Mostly Non- Discretionary 2 N-Butane Non- I-Butane Discretionary 2,3 By-product/ Discretionary 3 Natural Gasoline Pentanes 1 Average U.S. ethane yields can vary from 34% to 46% if economics dictate. If ethane extraction is minimized it only reduces total NGL volumes by 10% to 20%. 2 Most propane & virtually all butane plus must be recovered to meet gas pipeline specs. 3 Iso-Butane is a refinery by-product, but is also a discretionary product produced by the isomerization of normal butane from gas processing and refining.

20 Petrochemical & Fuel Markets set U. S
Petrochemical & Fuel Markets set U.S. NGL prices in competition with petroleum derived products. Natural Gas sets the relative cost for NGLs. Global Other Ethylene Feedstocks or Fuels Ethylene Prod. Other Fuel Uses¹ 37% Other Gasoline Blendstocks Gasoline¹ Isomerization 63% N-Butane Feedstocks Crude Blending 46% Gasoline 54% Nat’l Gaso. Petrochemicals 41% Alkylate MTBE² 59% I-Butane Natural Gas No 2 Fuel Oil Space Heating¹ Ethane Naphtha Gas Oils Ethylene Production Propane North America Residual Fuel Retained in Natural Gas 100% % of Demand: NGL Supply Source Competing Products Secondary Market(s) Primary 88% +/- 5% Other Ethylene Feedstocks or Fuels Ethylene Prod. Other Fuel Uses¹ 37% Other Gasoline Blendstocks Gasoline¹ Isomerization 63% N-Butane % of Demand: 97% +/- 4% Feedstocks Crude Blending 46% Gasoline 54% Nat’l Gaso 91% +/- 4% Petrochemicals 41% Gasoline Additives 59% I-Butane 75% +/- 8% Natural Gas No 2 Fuel Oil Space Heating¹ Ethane Naphtha Gas Oils Ethylene Production Propane 53% +/- 10% Residual Fuel Retained in Natural Gas 100% 5-yr Avg. Price Ratio to Crude³ Competing Products Secondary Market(s) Primary NGL Global Other Ethylene Feedstocks or Fuels Ethylene Prod. Other Fuel Uses¹ 37% Other Gasoline Blendstocks Gasoline¹ Isomerization 63% N-Butane Feedstocks Crude Blending 46% Gasoline 54% Nat’l Gaso. Petrochemicals 41% Alkylate MTBE² 59% I-Butane Natural Gas No 2 Fuel Oil Space Heating¹ Ethane Naphtha Gas Oils Ethylene Production Propane North America Residual Fuel Retained in Natural Gas 100% % of Demand: NGL Supply Source Competing Products Secondary Market(s) Primary % of Demand: % of Demand: % of Demand: % of Demand: ¹ Seasonal Market ² Being Phased Out ³ On a $/Bbl basis

21 Therefore, the relative value of gas to crude plays an important role in driving U.S. NGL supply/demand, particularly for ethane. * * Based on 5.8 MM BTU/Bbl

22 NGL production from Gas Processing is inversely related to the gas to crude price ratio……

23 …..because NGL frac spreads are inversely correlated to the gas to crude price ratio.

24 Frac spread volatility has caused NGL production swings to be severe but temporary. Volume swings greatest for Ethane. Observations: Ethane production swings of 100 to 200 MBPD or about 15% to 30% of its average annual production have occurred due to rising and falling extraction economics and its economic attractiveness as an ethylene feedstock. Propane and Butane Plus production swings have not been as severe, but have often coincided with severe gas price spikes. Average annual production levels closer to maximum levels than minimum levels. Current estimated maximum NGL production from processing: Ethane – 760 MBPD; Propane MBPD; Butane Plus – 670 MBPD; Total NGLs – 2,000 MBPD

25 Processing Agreements Are Being Retooled to Minimize Risks to Independent Processors which will moderate the effects of Frac Spread volatility on NGL production. High Risk to Processor Low Keep Whole Margin Sharing % of Liquids (POL) % of Proceeds (POP) Processing Fee Processor keeps extracted NGLs as fee for processing Must purchase and return to producer merchantable gas to replace fuel & shrinkage Producer and processor share value delta between NGLs and gas, i.e.. 50%/50%. Processor paid a % of NGLs as processing fee. Producer keep their % of NGLs in kind or have processor sell NGLs and receive cash. Could have keep whole provisions Processor paid a % of NGLs & gas as processing fee Producer keep their % of NGLs & gas in kind or have processor sell NGLs & gas and receive cash. Producer pays processor a processing or conditioning fee. Fee is market base and could be POL or POP or cash. Low Risk to Producer High

26 ….This will have positive implications for Enterprise
More stable NGL production at Enterprise’s gas processing plants. More stable NGL volumes through Enterprise’s transportation and fractionation systems. More emphasis on NGL storage to handle supply and demand imbalances.

27 Industry Overview Demand Side

28 U.S. Ethylene Production & Operating Rates are Rebounding from the mid-year 2003 troughs.

29 2004 Ethylene Capacity Market Share
Effective U.S. Ethylene Capacity is 61 Billion Lbs/Yr of which the Top 7 Ethylene Producers Control 80%. 2004 Ethylene Capacity Market Share Equistar …. 17.6% ExxonMobil1, % Dow …. 13.6% Chv Phillips1, % Shell1, % Formosa …. 5.4% BP1, % Huntsman …. 3.5% BASF/ATOFINA2 ……3.4% Others ….13.5% 80% ¹ Own & Operate Midstream Assets; ² Integrated with Refining Operations ³ DuPont, Eastman Chemicals, Sasol NA, Sunoco, Westlake, Williams

30 There are 4 Basic Types of Ethylene Plants that make-up the U. S
There are 4 Basic Types of Ethylene Plants that make-up the U.S. Ethylene Industry.

31 Product Yields for Ethylene Feedstocks
For ethylene plants with feedstock flexibility, cracking one feedstock over another is dependent on feedstock cost and on the value of the co-products produced from each feedstock. Product Yields for Ethylene Feedstocks (Weight %)

32 The flexibility to swing feedstocks is used to optimize olefin production & profits.

33 Ethane extraction closely tracks ethane cracking influenced, in part, by the gas to crude price ratio.

34 Short Term Market Outlook
Demand and Supply Side

35 Key Factors driving Ethylene Demand for NGLs, particularly for Ethane.
Ethylene Production Feedstock Demand Ethane Demand Effective Operating Rate Composition of Plants Gas to Crude Price Ratio GDP Growth

36 Historical Relationship between GDP & Ethylene Demand is Changing
Historical Relationship between GDP & Ethylene Demand is Changing. Expect 54 B Lb/yr production by 4th Qtr ‘04. Quarterly U.S. Ethylene Demand VS. GDP New Trendline at 0.9 to 1.0 times GDP growth Ethylene Demand - Billion Pounds B Lb/yr 15 60 CMAI Trendline Growth Forecast 14 56 Q185 - Q499 52 13 Ethylene demand grew at 1.25 to 1.4 times GDP growth rate 12 y = 1.99x Q1 48 Q4 R 2 = 0.97 2000 2004 44 11 Annual Avg. Growth ‘02 vs ‘01: 3.4% ’03 vs ’02: (1.0%) ’04 vs ’03: 4.5% 40 10 Trendline broke down due to: Recession High Inventories High Energy Costs Strong U.S. Dollar Loss of Derivative Exports 36 9 8 32 Q1 1991 7 28 Q1 1985 6 5.4 5.9 6.4 6.9 7.4 7.9 8.4 8.9 9.4 9.9 10.4 GDP by Quarter - Trillion $ (Constant 1996$) Quarterly Ethylene Demand - CMAI GDP source - U.S. Dept. of Commerce

37 Short Term Fundamentals continue to be positive for U. S
Short Term Fundamentals continue to be positive for U.S. Ethylene Producers. U.S. and other major world ethylene markets appear strong. Tightening supply/demand balances 1st quarter ‘04 effective utilization rate ~ 90% for U.S. ethylene producers with annualized production averaging over 53.5 billion lbs/yr. Despite $6 natural gas prices, rising crude prices have made ethane and propane cracking in U.S. very competitive on a global basis. U.S. exports of ethylene monomer and derivatives are starting to reappear. Evidence is building that fundamental recovery is sustainable. Last year, recovery lost momentum. This year, U.S. economy appears to be re-entering a period of strong growth. Major petrochemical companies are seeing purchases of their ethylene derivative products increasing and expect sustainability in 2004. Concerns – continued increases in crude prices and geopolitical uncertainties derail economic growth.

38 Effective Utilization Ethane Cracking Levels
As Ethylene production rebounds, analysis indicates the following implications for ethane demand which will be demonstrated on the next 2 charts: 1. The flexibility to crack less ethane diminishes as ethylene production increases and a higher range of ethane volumes are required to produce higher levels of ethylene. 2. It appears that the U.S. Ethylene Industry can not stay at minimum ethane cracking levels for more than 1 Quarter without creating a surplus of ethylene co-products. 3. While the level of ethylene production is the primary driver, the gas to crude price ratio is another factor influencing ethane cracking levels. Lower ratios at or below 90% increase the probability of maximizing ethane cracking. Ethylene Production Effective Utilization Ethane Cracking Levels (MBPD) (B Lb/Yr) (%) Min. Max. Flex. Range Trendline 49 51 53 55 57 80.3 83.6 86.9 88.5 93.4 510 560 610 660 710 670 690 725 740 160 130 100 65 30 615 644 672 700 729

39 As Ethylene Production Increases Past 53 Billion Lbs/Yr, Flexibility to Switch Off Ethane Diminishes. Max. Cracking Level Q1 ’04 Trendline: ~12.7 X Ethyl Prod/Yr Min.Cracking Level

40 Minimum ethane cracking levels are not sustained more than 1 quarter without creating a surplus of ethylene co-products. Q1’00; 51% Q4’99; 61% Q3’00; 78% Q1’02; 63% Q3’99; 69% Q4’02; 82% Q4’00;96% Q3’02; 65% Q4’03; 94% Q2’00; 69% Q2’01; 97% Q1’03; 112% Q2’02; 75% Q2’99; 71% Q1 ’04; 92% Q1’99; 77% Q3’03; 96% Q1’01; 143% Quarter; Gas to Crude Ratio Q2’03; 108%

41 Gas Fundamentals should be weaker in ‘04 relative to Crude....

42 .….resulting in a lower average Gas to Crude price ratio in ‘04

43 See a better environment for ethane cracking in ‘04 and a paradigm shift could be underway if crude prices stay high. Ethane Cracking Swings Between MBPD Are Possible with a Bias to Maximize Ethane Cracking High Probability of Ethane Cracking Swings Between MBPD with a Bias to Minimize Ethane Cracking as long as Co-Product Production is Not an Inhibitor At B Lb/yr, Moderate to Good Probability of Ethane Cracking at or above 650 MBPD. Gas to Crude Ratio Less of a Factor at Production Rates above 55 B Lb/yr High Probability of Sustainable Ethane Cracking at or Above 650 MBPD At or Below 90% Gas to Crude Price Ratio Above 90% Below 53 B LB/YR Above 53 B LB/YR Ethylene Production

44 To support greater ethane cracking levels, the ethane “frac” spread increases to encourage more ethane extraction. Below the curve ethane cracking occurred at gas to crude ratios generally above 90%

45 Long Term Market Outlook
Demand and Supply Side

46 Ethylene production should track GDP growth rate at a 0. 9 to 1
Ethylene production should track GDP growth rate at a 0.9 to 1.0 factor. Forecast ethane demand to be ~ 750 MBPD by ‘07. 3 ² Federal Reserve Forecast is 5% Production

47 In the Lower-48, growth in Rockies and Deepwater GOM will offset declines in virtually all other U.S. mature basins. NPC Report 9/25/03

48 U.S. NGL production should grow to accommodate production trends and market demands.
Source: DOE, En*Vantage

49 La GC and Rockies will be the incremental producers of ethane in the ’05 to ’10 time period.
Source: DOE, En*Vantage

50 Summary of Operating Conditions & Outlook
Market conditions for NGLs should continue to improve in ’04. The ‘04 demand for ethane from processors is expected to be between 650 to 700 MBPD, an increase of 40 MBPD to 90 MBPD over ‘03 levels. Ethylene production rising to ~ 54 billion Lbs in ’04 as a result of U.S. GDP growth of 4.5%. Gas to crude price ratio remaining in the high 80% to low 90% range. NGL Production in 2004 increases from 2003 levels by about 8% or 130 MBPD. Longer term fundamentals are favorable for EPD. Incremental ethane supplies must be extracted from La GC and the Rockies to meet future demand for ethane. “Trough” conditions for ethane can occur when ethylene production levels are low (49 to 51 Billion Lbs/yr) and gas to crude ratios are well above 90%. During “trough” conditions ethylene producers usually minimize ethane cracking. However, minimum ethane cracking levels can not be sustained for more than 1 quarter without creating a surplus of co-products. When ethane extraction is minimized during “trough” conditions, ethane production can decrease 25% to 30% or about 200 MBPD from historical average extraction levels. Total NGL production, however, only drops 10% to 20% due to need to extract propane and butane plus to meet gas pipeline quality specifications.

51 Operating Income Sensitivity Cases

52 Sensitivity Cases Baseline Case – assumes “Project Miramar” price deck based on 2004 PIRA forecast and represents the recovery phase of the Ethylene Industry’s business cycle. Trough Case – annualizes mid-2003 market conditions reflecting ethylene cycle bottom, high relative price of natural gas, and minimum ethane cracking levels. Low Price Case – uses a low natural gas and crude price deck supplied by S&P.

53 Combination Reduces EPD’s Sensitivity to Higher Natural Gas Prices in Trough Case.
Trough conditions for an entire year, negatively impacts EPD’s operating income approx $53MM from its Baseline operating income. EPD’s Louisiana NGL assets and the MAPL/Seminole Pipeline, show the greatest sensitivity to an ethylene industry downturn due to reduced ethane volumes transported and fractionated. Recent changes in processing agreements help offset lower processing margins in Louisiana. Under “Trough Case”, GTM benefits from higher energy prices and its operating income increases by $25MM from its Baseline operating income. As a result, the combined operating income of EPD and GTM is only reduced by approx. $29MM.

54 Combination Slightly Increases EPD’s Sensitivity to Lower Natural Gas Prices.
The Low Price Case actually benefits EPD’s operating income marginally, due to the following factors: Lower energy prices benefit economic growth and ethane demand specifically. Higher volumes through EPD’s NGL systems and the amended Shell contract offset lower processing margins for EPD. GTM’s operating income decreases by approximately $39MM under the Low Price Case due to POP contracts (assuming no hedges are in place). As a result, the combined operating income of EPD and GTM is reduced by approximately $34MM under the low price case. w/o GTM w/ GTM

55 Forward Looking Statements
This study contains forward-looking statements and information that are based on Enterprise’s beliefs and those of its general partner as provided to En*Vantage, Inc., as well as assumptions made by and information currently available to Enterprise and En*Vantage, Inc.. When used in this presentation, words such as “anticipate,” “project,” “expect,” “plan,” “goal,” “forecast,” “intend,” “could,” “believe,” “may,” and similar expressions and statements regarding the contemplated transaction and the plans and objectives of Enterprise for future operations, are intended to identify forward-looking statements. Although Enterprise and its general partner believes that such expectations reflected in such forward looking statements are reasonable, neither it nor its general partner can give assurances that such expectations will prove to be correct. Such statements are subject to a variety of risks, uncertainties and assumptions. If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those Enterprise and En*Vantage, Inc. anticipated, estimated, projected or expected. Among the key risk factors that may have a direct bearing on Enterprise’s results of operations and financial condition are:

56 Forward Looking Statements (cont.)
Fluctuations in oil, natural gas and NGL prices and production due to weather and other natural and economic forces; A reduction in demand for its products by the petrochemical, refining or heating industries; A decline in the volumes of NGL’s delivered by its facilities; The failure of its credit risk management efforts to adequately protect it against customer non-payment; Terrorist attacks aimed at its facilities; The failure to complete the proposed merger; The failure to successfully integrate the respective business operations upon completion of the merger or its failure to successfully integrate any future acquisitions; and The failure to realize the anticipated cost savings, synergies and other benefits of the proposed merger. En*Vantage has no obligation to publicly update or revise any forward looking statement, whether as a result of new information, future events or otherwise. This presentation also includes Non-GAAP financial measures. Please refer to the reconciliations of GAAP financial statements to Non-GAAP financial measures included at the back of Enterprise’s presentation of May 26, 2004 as posted on their website

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