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JULY 2015 CORPORATE PRESENTATION – Inter Pipeline Ltd.

Inter Pipeline Ltd. · Jul 6, 2015 · 44 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. JULY 2015 CORPORATE PRESENTATION – Inter Pipeline Ltd. – slide 1
    Corporate Presentation July 2015
  2. JULY 2015 CORPORATE PRESENTATION – Inter Pipeline Ltd. – slide 2
    Market Information Market Capitalization 9.6 billion Enterprise Value 14.3 billion Annualized Dividend 1.47/share Yield 5.1% Information as at close of markets on June 30, 2015 1
  3. JULY 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 27 million barrels of b/d of pipeline network natural gas…
  4. JULY 2015 CORPORATE PRESENTATION – Inter Pipeline Ltd. – slide 4
    Areas of Operation 2015 2014March AnnualYTD EBITDA EBITDA Fort McMurray ALBERTA SASKATCHEWAN SCOTLAND Edmonton IRELAND DENMARK North Sea SWEDEN Hardisty Cochrane B.C. B.C. Extraction GERMANY Plant ENGLAND…
  5. JULY 2015 CORPORATE PRESENTATION – Inter Pipeline Ltd. – slide 5
    Investment Value Proposition Strategic Financial Financial Infrastructure Strength Strength Assets Majority underpinned Solid balance sheet by stable cost of service revenue Strong Investor Excellent access to Returns capital…
  6. JULY 2015 CORPORATE PRESENTATION – Inter Pipeline Ltd. – slide 6
    Dividend Growth /Share *Based on actual dividends to June 2015 and 0.1225/share per month thereafter 5
  7. JULY 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. JULY 2015 CORPORATE PRESENTATION – Inter Pipeline Ltd. – slide 8
    Enterprise Growth Million 7
  9. JULY 2015 CORPORATE PRESENTATION – Inter Pipeline Ltd. – slide 9
    Recent Developments Acquired Vopak Sweden AB for CAD 131 million increasing European bulk liquid storage capacity by 40% to 27 million barrels FCCL expansion project 850,000 b/d commitment Initiated 400,000 barrel CNR Kirby…
  10. JULY 2015 CORPORATE PRESENTATION – Inter Pipeline Ltd. – slide 10
    2015 March YTD EBITDA 59% 9
  11. JULY 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. JULY 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** 800 600 465 380 400 Contracted 465 Volumes 200 0 Current Throughput* Installed Capacity Ultimate Capacity *For the…
  13. JULY 2015 CORPORATE PRESENTATION – Inter Pipeline Ltd. – slide 13
    Cold Lake Pipeline Capacity 000s b/d 1,900 1,800 2,000 Available 1,600 Capacity 673 1,400 63 14 1,200 500 1,000 800 Contracted 650 Volumes 600 1,227 400 200 0 Original Cold Lake FCCL CNR Kirby South Osum Orion…
  14. JULY 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 30 500 120 400 350 Contracted 300 Volumes 540 200 100 0 FCCL Imperial Husky CNR Kirby Suncor JACOS AOC Ultimate…
  15. JULY 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. JULY 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+ Fort McMurray Cenovus - Telephone Lake AOC Hangingstone 1.3 million b/d of…
  17. JULY 2015 CORPORATE PRESENTATION – Inter Pipeline Ltd. – slide 17
    Services Integration: Terminals & Storage Pipeline Pipeline capacity (million b/d) 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. JULY 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. JULY 2015 CORPORATE PRESENTATION – Inter Pipeline Ltd. – slide 19
    2015 March YTD EBITDA 20% 18
  20. JULY 2015 CORPORATE PRESENTATION – Inter Pipeline Ltd. – slide 20
    Conventional Oil Pipelines Edmonton 3,800 km of oil pipelines servicing over 100 producers ALBERTA SASK. 100% fee based business, Hardisty excluding midstream Stettler marketing Kerrobert Growing production from Viking…
  21. JULY 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. JULY 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. JULY 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. JULY 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. JULY 2015 CORPORATE PRESENTATION – Inter Pipeline Ltd. – slide 25
    2015 March YTD EBITDA 12% 24
  26. JULY 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. JULY 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. JULY 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. JULY 2015 CORPORATE PRESENTATION – Inter Pipeline Ltd. – slide 29
    2015 March YTD EBITDA 9% 28
  30. JULY 2015 CORPORATE PRESENTATION – Inter Pipeline Ltd. – slide 30
    Bulk Liquid Storage 16 petroleum and petrochemical Gavle storage terminals SCOTLAND SWEDEN Sodertalje NORTHERN Approximately 27 million barrels IRELAND North Sea DENMARK Gothenburg of storage capacity Tyne Asnaes Malmo Seal…
  31. JULY 2015 CORPORATE PRESENTATION – Inter Pipeline Ltd. – slide 31
    Vopak Acquisition Summary Acquired Vopak Sweden AB on June 10, 2015 for CAD 131 million; renamed Inter Terminals Sweden Four storage terminals with 7.4 million barrels of capacity in 144 tanks and 5 underground caverns SWEDEN…
  32. JULY 2015 CORPORATE PRESENTATION – Inter Pipeline Ltd. – slide 32
    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…
  33. JULY 2015 CORPORATE PRESENTATION – Inter Pipeline Ltd. – slide 33
    Capacity Utilization 100% Inter Terminals UK 75% 50% 25% 0% Q1 2006 2006 Q1 2007 2007 Q12008 2008 Q12009 2009 Q1 2010 2010 Q12011 2011 Q12012 2012 Q12013 2013 Q12014 2014 Q12015 Q1 2015 Series1Denmark Inter…
  34. JULY 2015 CORPORATE PRESENTATION – Inter Pipeline Ltd. – slide 34
    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…
  35. JULY 2015 CORPORATE PRESENTATION – Inter Pipeline Ltd. – slide 35
    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…
  36. JULY 2015 CORPORATE PRESENTATION – Inter Pipeline Ltd. – slide 36
    35
  37. JULY 2015 CORPORATE PRESENTATION – Inter Pipeline Ltd. – slide 37
    Financial Discipline Recourse Debt to Total Capitalization 60% Capital Structure* 50% as at March 31, 2015 40% 30% 20% 15% 10% 0% 47% 2010 2011 2012 2013 2014 Q1 2015 38% Conservative Payout Ratio** 100% 80% 60%…
  38. JULY 2015 CORPORATE PRESENTATION – Inter Pipeline Ltd. – slide 38
    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…
  39. JULY 2015 CORPORATE PRESENTATION – Inter Pipeline Ltd. – slide 39
    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…
  40. JULY 2015 CORPORATE PRESENTATION – Inter Pipeline Ltd. – slide 40
    Projected EBITDA by Contract Type 70% 70% 70% 60% 60% 60% 50% 50% 50% 40% 40% 40% 30% 30% 30% 20% 20% 20% 10% 10% 10% 0% 0% 0% 2010 2011 2012 2013 2014 2015F 2010 2011 2012 2013 2014 2015F 2010 2011 2012…
  41. JULY 2015 CORPORATE PRESENTATION – Inter Pipeline Ltd. – slide 41
    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…
  42. JULY 2015 CORPORATE PRESENTATION – Inter Pipeline Ltd. – slide 42
    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…
  43. JULY 2015 CORPORATE PRESENTATION – Inter Pipeline Ltd. – slide 43
    Looking Forward Solid track record of increasing shareholder value Continued focus on developing potential growth opportunities Cost of service contracts expected to generate 60% of 2015F EBITDA Fee-based and cost of service…
  44. JULY 2015 CORPORATE PRESENTATION – Inter Pipeline Ltd. – slide 44
    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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