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2015 EARNINGS GUIDANCE – Enbridge Inc.

Enbridge Inc. · Dec 4, 2014 · 32 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. 2015 EARNINGS GUIDANCE – Enbridge Inc. – slide 1
    Investment Community Update: 33% Dividend Increase Financial Restructuring Plan Al Monaco Revised Dividend Policy President & CEO 2015 Earnings Guidance Richard Bird Executive Vice President Corporate Development Wanda Opheim…
  2. 2015 EARNINGS GUIDANCE – Enbridge Inc. – slide 2
    Legal Notice This presentation includes certain forward looking information (FLI) to provide Enbridge shareholders and potential investors with information about Enbridge and managements assessment of its future plans and operations,…
  3. 2015 EARNINGS GUIDANCE – Enbridge Inc. – slide 3
    Outline 2015 EPS Guidance Context and Overview Canadian Restructuring and Drop Down Plan Revised Dividend Payout Policy Funding Update and Guidance Components Conclusion 3
  4. 2015 EARNINGS GUIDANCE – Enbridge Inc. – slide 4
    Industry Leading Adjusted EPS* Growth 2015 Adjusted EPS* Guidance Range 2.05 to 2.35 (excluding partial year effect of drop down accretion) 2.35 2.04 2.05 1.78 1.84 2013 2014e 2015e *Adjusted earnings is a non-GAAP measure.…
  5. 2015 EARNINGS GUIDANCE – Enbridge Inc. – slide 5
    Strategic Context Record growth capital plan of 44 billion drives exceptional EPS & DPS growth through 2018 and beyond Growth capital plan progressing well - Major Projects execution - Securing low cost funding Sponsored vehicles…
  6. 2015 EARNINGS GUIDANCE – Enbridge Inc. – slide 6
    Record, Visible Organic Growth 44 billion organic growth capital program, 75% secured, drives 10% - 12% EPS growth through 2018 Billions 44 36 11 35 17 10 33 26 18 Enbridge Day 2012 Enbridge Day 2013 Current 2012-2016 2013…
  7. 2015 EARNINGS GUIDANCE – Enbridge Inc. – slide 7
    Dependable Organic Growth Reliable business model and financial risk management provide highly dependable organic growth Reliable Low Risk Business Growing Predictable EPS/DPS Model 2.00 - Conservative commercial 1.80 structures…
  8. 2015 EARNINGS GUIDANCE – Enbridge Inc. – slide 8
    Financial Structure/Strategy Optimization Overview ENB EIF Canadian Accelerate DPS/EPS Value LP assets growth Legacy Assets Enhance funding cost competitiveness Transform EIF/EIFH to Revised Payout Policy high growth vehicle…
  9. 2015 EARNINGS GUIDANCE – Enbridge Inc. – slide 9
    Drop Down Plan Overview Large scale drop down to EIF enhances shareholder value for both ENB and EIFH Canadian Liquids Pipelines & Renewable Assets Energy Book Value 17 billion Secured Growth Capital 15 billion EBITDA Multiple 13x 15x…
  10. 2015 EARNINGS GUIDANCE – Enbridge Inc. – slide 10
    Existing Structure (Simplified) Public Enbridge Inc. 80.1% EIFH 19.9% 42% 58% EIF EPI EPA U.S. LP EGD GP&P Legacy Canadian Regional Oil Assets Mainline Sands System Renewable Energy EEP 10
  11. 2015 EARNINGS GUIDANCE – Enbridge Inc. – slide 11
    New Structure (Simplified) - 2015 Public Enbridge Inc. 80.1% 19.9% EIFH 12% 88% EIF EEP U.S. LP EGD GP&P EPI EPA 11
  12. 2015 EARNINGS GUIDANCE – Enbridge Inc. – slide 12
    Canadian Liquids Pipelines Assets Mainline Asset description Six adjacent pipelines originating in western Canada that deliver into the US system Lines 8, 9 and 10 that deliver into eastern Canada Residual interest in Southern…
  13. 2015 EARNINGS GUIDANCE – Enbridge Inc. – slide 13
    Canadian Liquids Pipelines Assets Regional Asset description Wood Buffalo Pipeline Waupisoo Pipeline Athabasca Pipeline Woodland Pipeline Norealis Pipeline Athabasca Twin Pipeline Woodland Pipeline Extension Wood Buffalo…
  14. 2015 EARNINGS GUIDANCE – Enbridge Inc. – slide 14
    Renewable Assets Asset description Blackspring Ridge: 50% ownership in 300 MW Lac Alfred: 67.5% ownership in 308 MW Massif du Sud: 80% ownership in 153 MW St. Robert Bellarmin: 50% ownership in 82 MW Total assets 1 billion 14
  15. 2015 EARNINGS GUIDANCE – Enbridge Inc. – slide 15
    Expected EIF Equity Funding and Ownership Equity Funding ENB Economic Interest in EIF (millions annually) 100% 90% Public ENB 80% 80% 67% 66% 600 - 800 150 - 200 60% EIFH 1,500 40% (2016 2018) 750 - 1,000 20% EIF 0% 2013…
  16. 2015 EARNINGS GUIDANCE – Enbridge Inc. – slide 16
    EIFH Expected DPS Growth Currently 1% annual growth, supplemented with ad hoc drop downs Expect approximately 10% 2015 2018 CAGR - Sequential investments in EIF - Participation in Canadian LP asset cash flow growth 1.57 2015…
  17. 2015 EARNINGS GUIDANCE – Enbridge Inc. – slide 17
    ENB Expected EPS Accretion Drop down plan expected to contribute an approximate 10% uplift in EPS for each full year from closing to 2018 Adjusted EPS* 2.35 +10% 2.05 Expected Drop Down Uplift 2015e 2015 2018e Pro…
  18. 2015 EARNINGS GUIDANCE – Enbridge Inc. – slide 18
    Post Drop Down Opportunity Development Opportunity Type Equity Funding Vehicle U.S. Midstream MEP/EEP U.S. Liquids Pipelines EEP/ENB Canadian Liquids Pipelines Canadian Renewable Energy EIFH/ENB Gas Pipelines Alliance Gas Pipelines…
  19. 2015 EARNINGS GUIDANCE – Enbridge Inc. – slide 19
    Drop Down Benefits to ENB Shareholders Accretion from drop down supports higher ENB EPS and DPS growth through 2018 Advantageous supplementary source of equity funding supports ENB funding requirements and higher dividend payout…
  20. 2015 EARNINGS GUIDANCE – Enbridge Inc. – slide 20
    Dividend Payout Considerations 1. Record organic growth capital program 2. Rising internal free cash flow 3. Progress in 2014 on equity prefunding 2014-2018 Equity Requirement Gross 6.2 billion DRIP (2.8) Net 3.4 Complete (1.5)…
  21. 2015 EARNINGS GUIDANCE – Enbridge Inc. – slide 21
    Revised Payout Policy Adjusted EPS* Payout 100% 80% 70% 70% 60% 60% 60% 40% 20% 0% Prior Revised Prior Revised 2015 2018 *Adjusted earnings is a non-GAAP measure. For more information on non-GAAP measures please refer to…
  22. 2015 EARNINGS GUIDANCE – Enbridge Inc. – slide 22
    Revised Payout Policy Adjusted EPS* Payout 100% 85% 85% 80% 75% 70% 70% 75% 60% 60% 60% 40% 20% 0% Prior Revised Prior Revised 2015 2018 *Adjusted earnings is a non-GAAP measure. For more information on non-GAAP measures…
  23. 2015 EARNINGS GUIDANCE – Enbridge Inc. – slide 23
    Expected DPS Growth Drop Down and Revised Payout Policy 33% DPS increase in 2015, 14% - 16% CAGR from 2015 to 2018 Dividends Per Share 1.86 1.40 1.26 2013 2014 2015 2018e 22
  24. 2015 EARNINGS GUIDANCE – Enbridge Inc. – slide 24
    Revised Proforma Funding Plan (2014-2018) Financing requirements remain very manageable Billions Base Revised Maintenance & Integrity Capital 5.0 5.2 Secured Growth Capital 23.3 23.4 Risked Growth Capital 9.0 9.2 37.3 37.8 Cash…
  25. 2015 EARNINGS GUIDANCE – Enbridge Inc. – slide 25
    2014 Adjusted EPS* Guidance Outlook Headwinds 2.04 Energy Services Equity prefunding 1.84 Tailwinds Liquids Pipelines - Line 9B delay 2014 Guidance Range *Adjusted earnings is a non-GAAP measure. For more information on…
  26. 2015 EARNINGS GUIDANCE – Enbridge Inc. – slide 26
    Segmented Adjusted Earnings* Variance 2015 Adjusted EPS Guidance Range 2.05 to 2.35 (excluding partial year effect of drop down accretion) Segment 2014e vs.2015e Liquids Pipelines +++++ Gas Distribution + Gas Pipelines, Processing &…
  27. 2015 EARNINGS GUIDANCE – Enbridge Inc. – slide 27
    2015 Capital In-service 8.3 Billion in-service in 2015 Estimated Cost Projects ( Billion) Liquids Pipelines (Alberta Regional Infrastructure): AOC Hangingstone 0.2 Sunday Creek Terminal Expansion 0.2 Woodland Pipeline Expansion…
  28. 2015 EARNINGS GUIDANCE – Enbridge Inc. – slide 28
    2015 Capital* By In-Service Date Billions By in service date Projects in service in 2015 Q1 0.7 Keechi Wind (0.2B) Q1 Beckville Cryogenic (0.1B) Walker Ridge (0.4B) Q2 2.5 Cdn Mainline System Flexibility & 2015 2015 Q2…
  29. 2015 EARNINGS GUIDANCE – Enbridge Inc. – slide 29
    Expected Adjusted EPS* Growth Drop down accretion adds 10% to EPS from 2015 through 2018 - Highly transparent outlook Extending EIFH funding beyond 2018 reinforces other sources of post 2018 growth Tilted Return Projects…
  30. 2015 EARNINGS GUIDANCE – Enbridge Inc. – slide 30
    Expected DPS Growth Drop down accretion and revised payout policy provide 33% increase in 2015, 14%-16% expected growth for 2015 through 2018 Extended EIFH funding beyond 2018 reinforces other sources of post 2018 growth 1.86…
  31. 2015 EARNINGS GUIDANCE – Enbridge Inc. – slide 31
    Summary of Benefits Enhanced EPS and DPS growth through 2018 Enhanced/diversified access to equity funding for 44 billion organic growth capital program Enhanced competitiveness in securing new organic and asset acquisition…
  32. 2015 EARNINGS GUIDANCE – Enbridge Inc. – slide 32
    BUSINESS UNIT HEADER IMAGE GOES HERE Question & Answer Period

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