Midcoast Energy Partners, L.P. Investment Community Presentation March 2015
Vision and Strategy VISION Be recognized as a leading natural gas and NGL midstream infrastructure developer, operator and service provider in North America SCALE SCOPE STRATEGY Provide best in class gathering, processing and…
Strong Sponsors and Management Leveraging Enbridge Inc. & Enbridge Energy Partners, L.P. Strong Sponsors Enbridge Inc. (ENB) A-/Baa1 41 billion equity market capitalization Enbridge Energy Partners, L.P. (EEP) BBB+/Baa2 17…
Executing on Strategic Priorities Strengthen underlying business Recontracted and captured new business that enhances cash flow certainty Implemented 50 million operating & administrative cost reductions Focused cost management…
Positioned to Navigate Near-Term Markets Exercising prudent financial discipline Implemented cost reduction and asset optimization actions Commodity hedges secure 2015 and 2016 cash flows Average 2015 Forward Prices 2015 2016…
Long-Term Transformation of Risk Profile Risk profile transforms as base business grows and new business is captured Demand volumes and revenue progressively ramping on Texas Express Re-contract and capture new business that enhances…
Strategic Entry into Eaglebine Play Secured transactions establish strategic East Texas System foothold in the liquids-rich Eaglebine Midcoast to construct the Ghost Chili lateral Midcoast acquiring NGRs midstream assets 160 million…
Strong Sponsor Support EEP incentivized to invest alongside MEP Jointly fund on and off footprint growth EEP evaluating other forms of support Execute drop-down that enhances accretion at MEP Enhance MEP Cost of Equity Gas-Focused…
Strategically Positioned Asset Base Midcoast Business Segments Key Assets Natural Gas Deliveries 2.2 bcf/d Gathering, Processing & Transportation: strong asset foundation 90% EBITDA Gathering and Transportation Pipelines 11,100…
Regional Outlook Overview Continue to monitor developments and work closely with producers as conditions evolve Producer capex and drilling reductions are expected Gathering, Processing & Transportation Highlights East Texas…
Texas Express NGL System Description of Assets Texas Express Footprint NGL Mainline System JV with Enterprise Products Partners (35%, operator), Midcoast Operating (35%), New NGL Skellytown Anadarko Petroleum Corporation (20%) and…
Texas Express A Growing Base of Secure Cash Flow Texas Express NGL System Shipper committed and spot volumes ramping up; committed volumes step- up to 147,000 Bpd in July 2015 Underpinned by fee-based demand revenue System is…
Capital Expenditures Forecast & Funding Outlook Midcoast Operating, L.P. 2015e Prudently managing capital ( millions) expenditures: Beckville Gas Processing Plant 50 Eaglebine Developments (4) 135 Reduction in capital forecast to…
Key Takeaways Positive momentum heading into 2015 Delivered 9.6% distribution increase in 2014 Exercise prudent distribution policy to achieve stronger coverage and enhance financial flexibility Constructive actions taken to…
Appendix
MEP Organizational Structure Enbridge Inc. owns Enbridge Inc. 43% of EEP (NYSE: ENB) (Baa1 / A-) 2% GP interest 38.8% LP interest (indirect) Enbridge Energy Partners, L.P. (NYSE: EEP) (Baa2 / BBB+) 2% GP interest…
2015 Financial Outlook 2015 Guidance Outlook Midcoast Operating, L.P. ( millions) 2015e Strong 4Q financial results Adjusted EBITDA, inclusive of other Evolving producer drilling plans 255 - 280 cash items(1) Midcoast Energy…
Accelerating Scope & Pace of Change Bottom-line enhancement initiatives 2014 O&A Costs (1) 400 MM 50 million of annual cost reductions at New Assets In Service +12 Midcoast Operating Insurance & Taxes +6 Cost structure to be…
Strengthening Business Performance 2015 Earnings and Cash Flow Outlook ( millions) 290.0 280 inclusive of other cash items (1) 270.0 MOLP Adjusted EBITDA, 250.0 255 230.0 220 210.0 190.0 170.0 150.0 1Q15e…
Financial Support from Sponsors Financial Support Agreement Receivables Sales Agreement Purpose Derivative contracts, natural gas purchasing Enhance available liquidity agreement and NGL purchase agreement support Borrower Midcoast…
Securing Cash Flow Certainty Risk Profile Shifting: Contract Mix (1) Demand and fee-based margin positioned to Keepwhole Demand- Based 8% increase in 2015 11% POP Strengthening cash flow certainty 21% Fee-Based Disciplined…
Anadarko System Strategically Located in Texas Panhandle and Western Oklahoma Processing Plant Highlights Treater Plant Gas Pipeline Miles of natural Liquids Pipeline Texas Express gas gathering and 3,100 miles transporting…
East Texas System Extensive Footprint in East Texas: Haynesville & Cotton Valley Processing Plant Highlights Treater Plant Miles of natural gas Gas Pipeline gathering and transporting 4,100 miles Liquids Pipeline pipelines…
North Texas System Extensive Asset Footprint Processing Plant Highlights Gas Pipeline Liquids Pipeline Texas Express Miles of natural gas gathering and 3,900 miles transporting pipelines Processing plants 7 plants(1)…
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