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Corporate Presentation – Inter Pipeline Ltd.

Inter Pipeline Ltd. · Oct 1, 2014 · 41 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Corporate Presentation – Inter Pipeline Ltd. – slide 1
    Corporate Presentation October 2014
  2. Corporate Presentation – Inter Pipeline Ltd. – slide 2
    Market Information Market Capitalization 11.6 billion Enterprise Value 15.9 billion Annualized Dividend 1.29/share Yield 3.6% Information as at close of markets on October 2, 2014 1
  3. Corporate Presentation – Inter Pipeline Ltd. – slide 3
    World Scale Energy Infrastructure Assets Oil Sands Conventional NGL Bulk Liquid Transportation Oil Pipelines Extraction Storage Over 2.2 million 3,700 km Process 40% of 19 million b/d of barrels of pipeline network natural gas…
  4. Corporate Presentation – Inter Pipeline Ltd. – slide 4
    Areas of Operation 2014 June YTD EBITDA Canada Europe Fort McMurray 87% 13% ALBERTA SASKATCHEWAN SCOTLAND DENMARK Edmonton North Sea Hardisty Cochrane IRELAND B.C. Extraction ENGLAND GERMANY Plant Calgary…
  5. Corporate Presentation – Inter Pipeline Ltd. – slide 5
    Investment Value Proposition Strategic Strong Identified Financial Infrastructure Investor Growth Strength Assets Returns World scale Over 6 billion Solid balance 11 consecutive assets of identified sheet dividend capital…
  6. Corporate Presentation – Inter Pipeline Ltd. – slide 6
    Significant Value Creation 23% CAGR in Total Assets 18% CAGR in Funds From Operations 16% CAGR in Total Return 23% CAGR in Revenue 26% CAGR in Enterprise Value 10Year Compound Annual Growth Rate from 2003 - 2013…
  7. Corporate Presentation – Inter Pipeline Ltd. – slide 7
    Dividend Growth /Share 1.29 1.18 1.06 0.97 0.91 0.84 0.84 0.85 0.80 0.75 0.73 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014E* *Based on actual dividends to September 2014 and 0.1075/share per month…
  8. Corporate Presentation – Inter Pipeline Ltd. – slide 8
    5Year Dividend CAGR 15.0% 13.6% 10.0% 8.8% 7.0% 4.8% 5.0% 3.6% 2.0% 0.0% 0.0% Peer 1 Inter Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Pipeline -5.0% -4.8% CAGR from 2009 to 2014E; 2014E is based on actual dividends…
  9. Corporate Presentation – Inter Pipeline Ltd. – slide 9
    Strong Market Performance % 637% 700 650 600 550 500 450 400 350 300 250 200 150 97% 100 50 0 -50 2009 2010 2011 2012 2013 2014 Inter Pipeline S&P/TSX Composite Total Return Index Total return, including the…
  10. Corporate Presentation – Inter Pipeline Ltd. – slide 10
    Recent Developments Converted to a corporate structure effective September 1, 2013 FCCL expansion project 3.1 billion integrated oil 850,000 b/d commitment sands development program in progress CNR Kirby South 80,000 b/d…
  11. Corporate Presentation – Inter Pipeline Ltd. – slide 11
    2014 June YTD EBITDA 42% 10
  12. Corporate Presentation – Inter Pipeline Ltd. – slide 12
    Oil Sands Transportation Three major oil sands pipeline AOSP systems with combined ultimate Imperial Suncor Kearl capacity of 4.5 million b/d Husky Fort McMurray Sunrise Corridor AOC JACOS Hangingstone Hangingstone Cold Lake…
  13. Corporate Presentation – Inter Pipeline Ltd. – slide 13
    Polaris Pipeline Capacity 000s b/d 1,200 800 1,200 Uncontracted Volumes 700 660 600 10 7 5 18 30 500 120 400 350 300 Contracted Volumes 540 200 100 0 FCCL Imperial Husky CNR Kirby Suncor JACOS AOC Ultimate…
  14. Corporate Presentation – Inter Pipeline Ltd. – slide 14
    Cold Lake Pipeline Capacity 000s b/d 1,900 1,800 2,000 Uncontracted Volumes 1,600 673 1,400 63 14 1,200 500 1,000 800 650 600 Contracted Volumes 1,227 400 200 0 Original Cold FCCL CNR Kirby South Osum Orion…
  15. Corporate Presentation – Inter Pipeline Ltd. – slide 15
    Corridor Pipeline Capacity 000s b/d 1,400 1,400 1,200 1,000 Potential 935 3rd Party Capacity** 800 600 465 400 325 Contracted 200 465 Volumes 0 Current Throughput* Installed Capacity Ultimate Capacity *current…
  16. Corporate Presentation – Inter Pipeline Ltd. – slide 16
    EBITDA Growth by Pipeline System Million 250 200 150 100 50 0 2008 2009 2010 2011 2012 2013 Corridor Cold Lake Polaris 15
  17. Corporate Presentation – Inter Pipeline Ltd. – slide 17
    Oil Sands Project Summary Capital LT Annual Pipeline Contract InService Implied Cost EBITDA Project System Type Date Multiple (mm) (mm) FCCL Foster Creek & Christina Lake Polaris COS 2014 1,300 120 10.8x FCCL Foster Creek Cold…
  18. Corporate Presentation – Inter Pipeline Ltd. – slide 18
    Commercially Secured EBITDA Profile Million 350 Cold Lake & Polaris: FCCL Narrows Lake 300 Polaris: Imperial Kearl Phase II Expansion 250 Polaris: AOC 200 Hangingstone Phase I 150 Cold Lake: FCCL Foster Creek 100 Cold…
  19. Corporate Presentation – Inter Pipeline Ltd. – slide 19
    Oil Sands Growth Opportunities Identified 3+ billion of potential Imperial Kearl Husky Sunrise lateral & mainline expansion Imperial Aspen Phase II Cenovus opportunities from 2016+ Fort McMurray Telephone Lake AOC Hangingstone…
  20. Corporate Presentation – Inter Pipeline Ltd. – slide 20
    Oil Sands Volume Growth Bitumen 000s b/d Diluent 000s b/d 5,000 1,500 4,000 1,200 3,000 900 2,000 600 1,000 300 0 0 2008 2010 2012 2014F 2016F 2018F 2020F 2022F 2024F 2026F 2028F 2030F Bitumen Diluent Source:…
  21. Corporate Presentation – Inter Pipeline Ltd. – slide 21
    2014 June YTD EBITDA 24% 20
  22. Corporate Presentation – Inter Pipeline Ltd. – slide 22
    Conventional Pipelines Edmonton ALBERTA 3,700 km of oil pipelines servicing 135 producers SASK. 100% fee based business, excluding midstream Calgary marketing B.C.. Growing production from Medicine Hat Lethbridge Viking,…
  23. Corporate Presentation – Inter Pipeline Ltd. – slide 23
    Conventional EBITDA Millions 160 140 120 100 80 60 40 20 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Oil Gathering Hardisty Midstream Marketing 22
  24. Corporate Presentation – Inter Pipeline Ltd. – slide 24
    Conventional Throughput 000s b/d 225 202 196 200 187 176 37 175 34 169 170 165 35 23 26 28 150 22 33 33 66 125 33 36 41 54 100 75 129 113 110 108 107 50 98 100 25 0 2008 2009 2010 2011 2012 2013 2014 YTD* Bow…
  25. Corporate Presentation – Inter Pipeline Ltd. – slide 25
    2014 June YTD EBITDA 21% 24
  26. Corporate Presentation – Inter Pipeline Ltd. – slide 26
    NGL Extraction Three large scale extraction Edmonton ALBERTA plants produced 103,000 b/d of NGLs* Strategically located on the TransCanada Alberta system Cochrane 6.2 bcf/d of extraction Extraction SASKATCHEWAN capacity Plant…
  27. Corporate Presentation – Inter Pipeline Ltd. – slide 27
    Historical Frac Spread Frac Spread: Mont Belvieu NGL less AECO Natural Gas US / US Gal 1.60 1.40 1.20 Closed extraction acquisition 1.00 0.80 15 year average frac spread: 54.6 US cents 0.60 0.40 0.20 0.00 Jan-04…
  28. Corporate Presentation – Inter Pipeline Ltd. – slide 28
    NGL Extraction EBITDA by Facility Million 200 150 100 50 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Empress II & V Cochrane 27
  29. Corporate Presentation – Inter Pipeline Ltd. – slide 29
    2014 June YTD EBITDA 13% 28
  30. Corporate Presentation – Inter Pipeline Ltd. – slide 30
    Bulk Liquid Storage SCOTLAND Petroleum and petrochemical DENMARK storage facilities NORTHERN North Sea IRELAND Tyne Seal Sands 12 multi-product terminals WALES Riverside Asnaes Immingham West Stigsnaes Immingham East…
  31. Corporate Presentation – Inter Pipeline Ltd. – slide 31
    Strategic Drivers Long-life infrastructure assets Strong organic investment potential Geographic diversification, mature markets Stable political and regulatory environments Fee-based cash flow Experienced operations and…
  32. Corporate Presentation – Inter Pipeline Ltd. – slide 32
    Capacity Utilization Simon Storage 100% 75% 50% 25% 0% Q1 2006 2006 Q1 2007 2007 Q12008 2008 Q1 2009 2009 Q12010 2010 Q1 2011 2011 Q1 2012 2012 Q1 2013 2013 2014 2014Q1 Inter Terminals 100% 75% 50%…
  33. Corporate Presentation – Inter Pipeline Ltd. – slide 33
    32
  34. Corporate Presentation – Inter Pipeline Ltd. – slide 34
    EBITDA by Business Segment Million 1,100 1,000 900 800 700 600 500 400 300 200 100 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014F* 2015F* Oil Sands Transportation Conventional Oil Pipelines NGL Extraction…
  35. Corporate Presentation – Inter Pipeline Ltd. – slide 35
    Projected EBITDA by Contract Type 2013 Annual EBITDA Projected 2015 Annual EBITDA 10% 41% 41% 16% 60% 30% 43% 37% Cost of Service Fee Based Commodity Based Cost of Service Fee Based Commodity Based No volume or…
  36. Corporate Presentation – Inter Pipeline Ltd. – slide 36
    EBITDA Stability Inter Pipeline Mid Cap Peers 2015F EBITDA 2015F EBITDA* 10% 38% 30% 60% 35% 27% Cost of Service Fee Based Commodity Based No volume or commodity price Volume & operating cost Volume and commodity price…
  37. Corporate Presentation – Inter Pipeline Ltd. – slide 37
    Financial Discipline Recourse Debt to Total Capitalization 60% Capital Structure as at June 30, 2014 50% 40% 30% 9% 20% 10% 0% 48% 2009 2010 2011 2012 2013 Q2 2014 43% Conservative Payout Ratio* 100% 80% 60%…
  38. Corporate Presentation – Inter Pipeline Ltd. – slide 38
    Capital Markets Activity Excellent access to capital markets MTN Debt Maturity Profile 2,325 million medium term notes issued 2044 2017 22% 17% 900 million MTNs issued in 2018 May 2014 9% 2022 17% 2020 Over 1 billion in equity…
  39. Corporate Presentation – Inter Pipeline Ltd. – slide 39
    Sustainable Dividends Million 500 400 300 200 100 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Funds From Operations Dividends Before sustaining capital; FFO is attributable to shareholders 38
  40. Corporate Presentation – Inter Pipeline Ltd. – slide 40
    Looking Forward Experienced management team with a solid track record of increasing shareholder value Continued focus on developing over 6 billion of major oil sands growth opportunities Long-term contracts expected to generate…
  41. Corporate Presentation – Inter Pipeline Ltd. – slide 41
    Contact Information Christian Bayle President & CEO Brent Heagy Chief Financial Officer Jeremy Roberge Vice President, Capital Markets investorrelationsinterpipeline.com Inter Pipeline Ltd. Suite 2600, 237 4th Avenue SW…

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