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June 2015 Corporate Presentation – Inter Pipeline Ltd.

Inter Pipeline Ltd. · Jun 3, 2015 · 43 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. June 2015 Corporate Presentation – Inter Pipeline Ltd. – slide 1
    Corporate Presentation June 2015
  2. June 2015 Corporate Presentation – Inter Pipeline Ltd. – slide 2
    Market Information Market Capitalization 10.3 billion Enterprise Value 15.0 billion Annualized Dividend 1.47/share Yield 4.8% Information as at close of markets on June 1, 2015 1
  3. June 2015 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 3,800 km Process 40% of 19 million b/d of barrels of pipeline network natural gas…
  4. June 2015 Corporate Presentation – Inter Pipeline Ltd. – slide 4
    Areas of Operation 2015 March YTD EBITDA Canada Europe Fort McMurray 91% 9% ALBERTA SASKATCHEWAN SCOTLAND DENMARK Edmonton North Sea Hardisty Cochrane IRELAND B.C. Extraction ENGLAND GERMANY Plant Calgary…
  5. June 2015 Corporate Presentation – Inter Pipeline Ltd. – slide 5
    Investment Value Proposition Strategic Financial Infrastructure Financial Strength Strength Assets Majority underpinned Solid balance sheet by stable cost of service revenue Strong Investor Excellent access to Returns capital…
  6. June 2015 Corporate Presentation – Inter Pipeline Ltd. – slide 6
    Dividend Growth /Share 1.47 1.32 1.18 1.06 0.97 0.91 0.84 0.84 0.85 0.80 0.75 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015E* *Based on actual dividends to May 2015 and 0.1225/share per month thereafter 5
  7. June 2015 Corporate Presentation – Inter Pipeline Ltd. – slide 7
    5-Year Dividend CAGR 18.0% 17.0% 16.0% 14.0% 12.0% 10.2% 10.0% 8.7% 8.0% 6.0% 6.0% 5.4% 4.0% 2.9% 2.0% 1.5% 0.0% 0.0% Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 CAGR from 2010 to 2015E; 2015E is based on current…
  8. June 2015 Corporate Presentation – Inter Pipeline Ltd. – slide 8
    Enterprise Growth Million 18,000 16,315 16,000 14,000 11,885 12,000 10,000 9,594 8,000 7,593 6,651 6,000 5,372 3,984 3,922 4,000 2,213 2,677 2,510 2,000 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Market…
  9. June 2015 Corporate Presentation – Inter Pipeline Ltd. – slide 9
    Recent Developments Initiated 400,000 barrel crude oil storage expansion project at the Kerrobert terminal FCCL expansion project 850,000 b/d commitment Commissioned 1.6 billion of new oil sands pipeline CNR Kirby South 80,000…
  10. June 2015 Corporate Presentation – Inter Pipeline Ltd. – slide 10
    2015 March YTD EBITDA 59% 9
  11. June 2015 Corporate Presentation – Inter Pipeline Ltd. – slide 11
    Oil Sands Transportation Three major oil sands pipeline AOSP Imperial Kearl systems with combined Suncor Husky Sunrise Fort McMurray ultimate capacity of 4.6 million Jacos/Nexen Hangingstone AOC Hangingstone b/d FCCL Narrows…
  12. June 2015 Corporate Presentation – Inter Pipeline Ltd. – slide 12
    Corridor Pipeline Capacity 000s b/d 1,400 1,400 1,200 1,000 Potential 935 3rd Party Capacity** 800 600 465 400 380 Contracted 465 Volumes 200 0 Current Throughput* Installed Capacity Ultimate Capacity *For the…
  13. June 2015 Corporate Presentation – Inter Pipeline Ltd. – slide 13
    Cold Lake Pipeline Capacity 000s b/d 1,900 1,800 2,000 Available Capacity 1,600 673 1,400 63 14 1,200 500 1,000 Contracted 800 Volumes 650 1,227 600 400 200 0 Original Cold FCCL CNR Kirby South Osum Orion Ultimate…
  14. June 2015 Corporate Presentation – Inter Pipeline Ltd. – slide 14
    Polaris Pipeline Capacity 000s b/d 1,300 800 1,300 Available Capacity 700 760 600 10 7 5 18 30 500 120 400 Contracted 350 Volumes 300 540 200 100 0 FCCL Imperial Husky CNR Kirby Suncor JACOS AOC Ultimate…
  15. June 2015 Corporate Presentation – Inter Pipeline Ltd. – slide 15
    Attractive Bolt-On Project Multiples Total Capital ( Million) 250 2 Projects 200 Over 430 million in announced 4 Projects bolt-on oil sands connections 150 8 connections with an average EBITDA multiple of 3.0x 100…
  16. June 2015 Corporate Presentation – Inter Pipeline Ltd. – slide 16
    Oil Sands Growth Opportunities Identified 4+ billion of Imperial Kearl Husky Sunrise Expansion potential opportunities Imperial Aspen from 2015+ Cenovus - Telephone Lake Fort McMurray AOC Hangingstone Identified 1.3 million b/d…
  17. June 2015 Corporate Presentation – Inter Pipeline Ltd. – slide 17
    Services Integration: Terminals & Storage Pipeline capacity (million b/d) Pipeline Stream (b/d) Lamont diluent up to 1.6 Lamont blend up to 1.5 Hardisty blend up to 1.4 Multi-Modal Storage Connections Cheecham diluent up to 0.6…
  18. June 2015 Corporate Presentation – Inter Pipeline Ltd. – slide 18
    Oil Sands Forecast vs. Capacity Million b/d Heavy Blend + SCO Supply to Market 7.0 Northern Gateway 6.0 TCPL Energy East 5.0 TMPL Expansion Production / Capacity 4.0 Keystone XL Rail (Expansion) 3.0 Alberta Clipper…
  19. June 2015 Corporate Presentation – Inter Pipeline Ltd. – slide 19
    2015 March YTD EBITDA 20% 18
  20. June 2015 Corporate Presentation – Inter Pipeline Ltd. – slide 20
    Conventional Oil Pipelines 3,800 km of oil pipelines Edmonton servicing over 100 producers ALBERTA SASK. 100% fee based business, Hardisty excluding midstream marketing Stettler Growing production from Kerrobert Viking…
  21. June 2015 Corporate Presentation – Inter Pipeline Ltd. – slide 21
    Conventional EBITDA Million 175 150 125 100 75 50 25 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Oil Gathering Hardisty Midstream Marketing 20
  22. June 2015 Corporate Presentation – Inter Pipeline Ltd. – slide 22
    Conventional Throughput 000s b/d 225 214 205 200 196 187 35 176 37 175 34 169 170 165 35 23 26 28 150 22 33 76 68 125 33 33 36 41 54 100 75 129 113 110 108 107 103 50 98 101 25 0 2008 2009 2010 2011 2012 2013 2014 Q1…
  23. June 2015 Corporate Presentation – Inter Pipeline Ltd. – slide 23
    Growth Opportunities Edmonton System expansions ALBERTA Hardisty Merchant storage additions SASK. Stettler Kerrobert Rail connections Kindersley Hardisty South transmission expansion Calgary Brooks MSPL expansion…
  24. June 2015 Corporate Presentation – Inter Pipeline Ltd. – slide 24
    Saskatchewan Viking Growth Number of Wells Production (b/d) 1,200 60,000 IPL pipeline services Viking producers 1,000 50,000 100 million expansion in progress 800 40,000 Increases available capacity by 95,000 b/d 600 30,000…
  25. June 2015 Corporate Presentation – Inter Pipeline Ltd. – slide 25
    2015 March YTD EBITDA 12% 24
  26. June 2015 Corporate Presentation – Inter Pipeline Ltd. – slide 26
    NGL Extraction Three large scale extraction Edmonton ALBERTA plants produced 113,000 b/d of NGLs* Strategically located on the TransCanada Alberta system Cochrane 2.5 bcf/d 6.2 bcf/d of extraction Capacity SASKATCHEWAN…
  27. June 2015 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 1.00 acquisition 0.80 0.60 15 year average frac spread: 58.7 US cents 0.40 0.20 0.00 Jan-04…
  28. June 2015 Corporate Presentation – Inter Pipeline Ltd. – slide 28
    Future Opportunities New developments require additional infrastructure ALBERTA SASK. Leverage IPLs strengths in: Pipelines MONTNEY Plant operations Terminals Major project DUVERNAY development Edmonton Opportunities to…
  29. June 2015 Corporate Presentation – Inter Pipeline Ltd. – slide 29
    2015 March YTD EBITDA 9% 28
  30. June 2015 Corporate Presentation – Inter Pipeline Ltd. – slide 30
    Bulk Liquid Storage SCOTLAND 12 petroleum and petrochemical DENMARK storage terminals NORTHERN North Sea IRELAND Tyne Seal Sands Riverside Approximately 19 million barrels WALES Asnaes Immingham West Immingham East…
  31. June 2015 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. June 2015 Corporate Presentation – Inter Pipeline Ltd. – slide 32
    Capacity Utilization Inter Terminals UK 100% 75% 50% 25% 0% Q12006 2006 2007 Q1 2007 Q12008 2008 Q12009 2009 2010 Q1 2010 Q12011 2011 2012 Q1 2012 Q12013 2013 2014 Q1 2014 2015 Q1 2015 100% Inter Terminals…
  33. June 2015 Corporate Presentation – Inter Pipeline Ltd. – slide 33
    Acquisition Growth Opportunities Aquisition opportunities in NW Europe: Opportunities to acquire oil distribution terminals as major oil companies focus upstream Acquisition of tank storage terminals from existing players…
  34. June 2015 Corporate Presentation – Inter Pipeline Ltd. – slide 34
    Organic Growth Opportunities 57,000 bbl new stainless steel chemical tanks under construction in Germany Assessing demand for additional chemical tankage at Seal Sands and Tyne Tank upgrades to provide storage for a broader…
  35. June 2015 Corporate Presentation – Inter Pipeline Ltd. – slide 35
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  36. June 2015 Corporate Presentation – Inter Pipeline Ltd. – slide 36
    Financial Discipline Recourse Debt to Total Capitalization 60% Capital Structure* as at March 31, 2015 50% 40% 30% 20% 15% 10% 0% 47% 2010 2011 2012 2013 2014 Q1 2015 Conservative Payout Ratio** 38% 100% 80% 60%…
  37. June 2015 Corporate Presentation – Inter Pipeline Ltd. – slide 37
    Capital Markets Activity Excellent access to capital markets MTN Debt Maturity Profile 2,625 million medium term notes issued 2025 2021 11% 12% Weighted average: cost of 2018 debt of 3.6%; maturity of 10 2017 8% 15% years 2022…
  38. June 2015 Corporate Presentation – Inter Pipeline Ltd. – slide 38
    EBITDA by Business Segment Million 1,000 900 800 700 600 500 400 300 200 100 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015F* Oil Sands Transportation Conventional Oil Pipelines NGL Extraction Bulk…
  39. June 2015 Corporate Presentation – Inter Pipeline Ltd. – slide 39
    Projected EBITDA by Contract Type 2014 Annual EBITDA Projected 2015 Annual EBITDA 15% 10% 35% 60% 30% 50% 37% Cost of Service Fee Based Commodity Based No volume or commodity price Volume & operating cost Volume and…
  40. June 2015 Corporate Presentation – Inter Pipeline Ltd. – slide 40
    EBITDA Stability % Commodity Based EBITDA Peer 1 NR Peer 2 BB Peer 3 BBB Peer 4 BBB Inter Pipeline BBB+ Peer 5 BBB 0% 5% 10% 15% 20% 25% 30% 35% Inter Pipeline has a stable EBITDA profile with 90% of 2015F EBITDA…
  41. June 2015 Corporate Presentation – Inter Pipeline Ltd. – slide 41
    Dividend Stability Million 600 500 400 300 200 100 0 2009 2009 2010 2010 2011 2011 2012 2012 2013 2013 2014 2014 FFO Dividend FFO Dividend FFO Dividend FFO Dividend FFO Dividend FFO Dividend Oil Sands…
  42. June 2015 Corporate Presentation – Inter Pipeline Ltd. – slide 42
    Looking Forward Solid track record of increasing shareholder value Continued focus on developing over 4 billion of growth opportunities Cost of service contracts expected to generate 60% of 2015F EBITDA Fee-based and cost of…
  43. June 2015 Corporate Presentation – Inter Pipeline Ltd. – slide 43
    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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