Enbridge Energy Partners, L.P. Investment Community Presentation June 2015 en b r i d gep ar tn ers. co m
Investment Highlights Strong Investment Grade Commercially secured Enterprise Value - Low-risk transformative (S&P, Moodys, DBRS) organic growth Large-Cap MLP growth underway underway EEP: who we are Total Unitholder Return One…
Investment Proposition Strong Business Fundamentals: Strength & Stability Migrating to a Much Lower Risk Business Model Strong General Partner Stable Distributions & Prudent Growth Attractive Yield Market Cap* 16.5B Yield*…
Strength of GP Enbridge Inc. ENB: North American leader in energy delivery Owner and operator of largest crude oil pipeline system 40 billion equity market cap Strong investment grade Proven track record: industry leading EPS…
Strategic Position Strong North American liquids pipeline infrastructure position Competitive Advantages Refiners: Access to multiple crude streams Producers: Access to multiple premium markets Flexible system; low-cost provider…
WCSB and Bakken Crude Oil Supply Outlook Thousand barrels per day 6,000 Actual Forecast Western Canadian Crude Oil Eastern Canada Supply Outlook 5,000 Oil Sands Growth 4,000 Producers have a long-term Oil Sands Operating…
Rail Perspective Pipelines provide the most economical transportation to market Rail Transportation Costs Forecast ForecastRail RailVolumes Volumes kbpd From Western From Western CanadaCanada 8.65 to Western Canada 800 16.05…
Strong Commercial & Fundamental Underpinnings Defensive nature of cash flows position EEP to navigate through commodity price uncertainty Low-risk business model largely mitigates volume sensitivity 2015e EBITDA Demand for crude…
Market Access Well Advanced Transformative low-risk organic growth expected to provide substantial cash flow growth Three major initiatives provide 1.7 MMbpd of increased market access and diversification +50 kbpd +250 kbpd +50…
Bakken Expansion Sandpiper Pipeline Stakeholder support for Sandpiper Pipeline Project in Minnesota Scope: 610 mile, 24/30 Total Secured Capital = pipeline 2.6 B Capacity: 225 kbpd/375 kbpd Target in-service: 2017 Marathon…
Line 3 Replacement ENB Funded EEP/ENB Joint Funded EEP Capital Investment: border to Superior 2.6 billion capital to be joint funded with ENB Expected Completion: Late 2017 30 year Cost-of-Service 15 year primary term…
Low Cost Expansion & Extension Opportunities Low cost phased expansions are attractive in a low crude price environment NTD: Map to Market Access Opportunities kbpd be updated 1 Eastern Gulf Coast Access 350+ 2 3 2 Flanagan…
Natural Gas and NGL Midstream Business Key Assets Anadarko System Natural Gas Deliveries 2.2 bcf/d Secured new demand- Gathering and Transportation Pipelines 11,100 miles based volumes from nearby play Processing Capacity (25 plants)…
Priority One Focus on Safety & Operational Reliability Operational Risk Management Program Third Party Damage Incident Response Avoidance and Capacity Detection Leak Detection Employee and Capability and Contractor Control…
Drop Downs Boost Distributable Cash Flow Substantial drop down opportunities from ENB supports Partnerships long-term growth outlook Initial Drop Down: 1 billion drop down from Enbridge closed 1/2/2015 66.7% interest in the U.S.…
Enbridge U.S. Liquids Pipelines Drop-Down Drop-down potential underpinned by long-term, low-risk contracts C Capital Cost/ Pipeline System Upsize Option Book Value* B A Eastern Access 0.4 1.5 A (2016/2017) B Mainline…
Alternative Ways to Invest in our MLP Tax Considerations EEQ EEP Allocated Taxable Income Mutual Fund Limitations Unrelated Business Income Tax Schedule K-1 Form 1099 * State Filing Obligations * Form 1099 issued for tax…
Key Takeaways Low-risk business model Well positioned in current uncertain commodity price environment Transformative growth underway Organic growth on-track: coverage continues to strengthen as projects enter service Low cost…
Supplemental Slides Enbridge Energy Partners, L.P. Investment Community Presentation June 2015
Corporate Structure Enbridge Inc. owns 42% of EEP Enbridge Inc. 11.7% of listed shares (NYSE: ENB) 100% voting interest (Baa2 / BBB+) Enbridge Energy Management, L.L.C. 2% GP interest (NYSE: EEQ) 38.1% LP interest (indirect)…
Low Risk Earnings and Cash Flow Growth 2015 Adjusted EBITDA and DCF forecasted to increase 12% and 15%, respectively over 2014 2015 Earnings and Cash Flow Outlook ( MM) 1,800 1,700 1,600 Adjusted EBITDA1,2 1,500 1,400 1,300…
Delivering Prudent Growth Growth Net Capital Target (MM) Capital EEP In-Service Risk Profile Liquids: Bakken Growth Projects Long-term Ship-or Pay/ Cost of Sandpiper 2,600 1,625 2017 Service Eastern Access (1) 30 year Cost of…
Risk Profile Low Risk Business Model Defensive nature of cash flows position EEP to navigate through commodity price uncertainty Unconsolidated View 2018e 2015e 32% 27% 18% Crude oil projects progressively transform…
Enbridge Target Markets PADD III, Eastern Canada & PADD I hold the bulk of displaceable oil supply 24 en b r i d gep ar tn ers. com
North American Crude Oil Pricing Differentials Enbridge is the low cost transportation provider and we will continue to grow our pipeline systems Differentials Alberta Light Pacific Peak1 Current2 61 WCS - Maya (16) (5) WCS West…
Bakken Infrastructure EEP pipeline takeaway will reach 580 kbpd with next phase of expansion Enbridge Mainline Saskatchewan System (ENF) North Dakota System (EEP) 210 kbpd Bakken Pipeline (EEP, ENF) 145 kbpd Manitoba Bakken…
Market Access Eastern Access Enhances security of supply and refinery competitiveness Eastern Access Projects Timing 1. Line 5 Expansion Completed + 50kbpd 2. Spearhead North Completed Expansion + 105kbpd 3. Line 6B Replacement…
Market Access Western USGC Access Enbridges Western USGC Access is the linchpin for Canadian liquids development Western USGC Access Projects Timing 1. Mainline Expansions - Alberta Clipper Completed + 120 kbpd - Southern Access…
Market Access Light Oil Market Access Competitive transportation cost to multiple markets for Canadian light oil and Bakken producers relative to differentials LOMA Projects Timing 1. Mainline Expansions 2014-2017 2. Line 9…
Executing with Confidence Proven competencies enable repeatable performance Executed Projects Projects in Execution 20 39 27 27 billion projects billion projects 33 of 39 projects 23 of 27 projects under/on schedule under/on…
Major Canadian and US Crude Oil Pipeline and Refineries 31 en b r i d gep ar tn ers. com
Regulatory Framework System Regulatory Methodology Lakehead System Base toll Toll indexed to PPI +2.65% Southern Access Cost of Service at 9% ROE; 55% equity, 45% debt rate base + Tax Allowance Alberta Clipper Cost of Service at…
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