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September 2015 Investor Presentation – Inter Pipeline Ltd.

Inter Pipeline Ltd. · Sep 1, 2015 · 45 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. September 2015 Investor Presentation – Inter Pipeline Ltd. – slide 1
    Corporate Presentation September 2015
  2. September 2015 Investor Presentation – Inter Pipeline Ltd. – slide 2
    Market Information Market Capitalization 9.5 billion Enterprise Value 14.3 billion Annualized Dividend 1.47/share Yield 5.2% Information as at close of markets on August 31, 2015 1
  3. September 2015 Investor 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 b/d of pipeline network natural gas barrels of…
  4. September 2015 Investor Presentation – Inter Pipeline Ltd. – slide 4
    Areas of Operation 2014 2015 Annual June YTD EBITDA EBITDA Canada Europe Canada Europe Fort McMurray 91% 89% 11% 9% ALBERTA SASKATCHEWAN SCOTLAND Edmonton IRELAND DENMARK North Sea SWEDEN Hardisty Cochrane B.C.…
  5. September 2015 Investor 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. September 2015 Investor 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 August 2015 and 0.1225/share per month thereafter…
  7. September 2015 Investor Presentation – Inter Pipeline Ltd. – slide 7
    5-Year Dividend CAGR 18.0% 17.0% 16.0% 14.0% 12.0% 10.2% 10.0% 9.5% 8.0% 6.7% 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. September 2015 Investor 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. September 2015 Investor 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 crude oil…
  10. September 2015 Investor Presentation – Inter Pipeline Ltd. – slide 10
    2015 June YTD EBITDA 60% 9
  11. September 2015 Investor 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. September 2015 Investor 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** 800 600 465 400 297 Contracted 465 Volumes 200 0 Current Throughput* Installed Capacity Ultimate Capacity *YTD June…
  13. September 2015 Investor 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. September 2015 Investor 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. September 2015 Investor 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. September 2015 Investor Presentation – Inter Pipeline Ltd. – slide 16
    Oil Sands Growth Opportunities Identified 4+ billion of Imperial Kearl Husky Sunrise Expansion potential opportunities CNR Horizon Imperial Aspen Cenovus Telephone Lake from 2017+ Nexen Long Lake Fort McMurray 1.3 million b/d of…
  17. September 2015 Investor 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 Connections Storage Cheecham diluent up to…
  18. September 2015 Investor Presentation – Inter Pipeline Ltd. – slide 18
    Oil Sands Market Supply vs. Capacity Supply/Capacity (Million b/d) 7.0 2015 Heavy Blend + SCO Supply to Market Forecast 2014 Heavy Blend + SCO Supply to Market Forecast TCPL Energy East 6.0 Northern Gateway 5.0 TMPL Expansion…
  19. September 2015 Investor Presentation – Inter Pipeline Ltd. – slide 19
    Oil Sands Long Term Production Bitumen Production (000s b/d) Diluent Demand (000s b/d) 5,000 1,500 4,500 1,350 4,000 1,200 3,500 1,050 3,000 900 2,500 750 2,000 600 1,500 450 1,000 300 500 150 0 0 2008 2010 2012…
  20. September 2015 Investor Presentation – Inter Pipeline Ltd. – slide 20
    2015 June YTD EBITDA 20% 19
  21. September 2015 Investor Presentation – Inter Pipeline Ltd. – slide 21
    Conventional Oil Pipelines Edmonton 3,800 km of oil pipelines ALBERTA servicing over 100 producers SASK. Hardisty 100% fee based business, excluding midstream Stettler marketing Kerrobert Growing production from Viking…
  22. September 2015 Investor Presentation – Inter Pipeline Ltd. – slide 22
    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 21
  23. September 2015 Investor Presentation – Inter Pipeline Ltd. – slide 23
    Conventional Throughput 000s b/d 225 211 205 200 196 187 34 176 37 175 34 169 170 165 35 23 26 28 150 22 33 68 76 125 33 33 36 41 54 100 75 129 113 110 108 107 50 98 101 102 25 0 2008 2009 2010 2011 2012 2013…
  24. September 2015 Investor Presentation – Inter Pipeline Ltd. – slide 24
    Growth Opportunities Edmonton System expansions ALBERTA Hardisty Merchant storage additions SASK. Stettler Kerrobert Rail connections Kindersley Hardisty South transmission expansion Calgary Brooks MSPL expansion…
  25. September 2015 Investor Presentation – Inter Pipeline Ltd. – slide 25
    Saskatchewan Viking Growth Number of Wells Production (b/d) 1,200 60,000 IPL pipeline services Viking producers 1,000 50,000 112 million expansion completed July 2015 800 40,000 Increased available capacity by 95,000 b/d 600…
  26. September 2015 Investor Presentation – Inter Pipeline Ltd. – slide 26
    2015 June YTD EBITDA 11% 25
  27. September 2015 Investor Presentation – Inter Pipeline Ltd. – slide 27
    NGL Extraction Three large scale extraction Edmonton ALBERTA plants produced 101,600 b/d of NGLs* Strategically located on the TransCanada Alberta system Cochrane 2.5 bcf/d 6.2 bcf/d of extraction Capacity SASKATCHEWAN…
  28. September 2015 Investor Presentation – Inter Pipeline Ltd. – slide 28
    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…
  29. September 2015 Investor Presentation – Inter Pipeline Ltd. – slide 29
    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…
  30. September 2015 Investor Presentation – Inter Pipeline Ltd. – slide 30
    2015 June YTD EBITDA 9% 29
  31. September 2015 Investor Presentation – Inter Pipeline Ltd. – slide 31
    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…
  32. September 2015 Investor Presentation – Inter Pipeline Ltd. – slide 32
    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…
  33. September 2015 Investor Presentation – Inter Pipeline Ltd. – slide 33
    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…
  34. September 2015 Investor Presentation – Inter Pipeline Ltd. – slide 34
    Capacity Utilization 100% Inter Terminals UK 75% 50% 25% 0% Q1 2012 Q3 2012 Q1 2013 Q3 2013 Q1 2014 Q3 2014 Q1 2015 100% Inter Terminals Denmark 75% 50% 25% 0% Q1 2012 Q3 2012 Q1 2013 Q3 2013 Q1 2014 Q3 2014 Q1…
  35. September 2015 Investor Presentation – Inter Pipeline Ltd. – slide 35
    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…
  36. September 2015 Investor Presentation – Inter Pipeline Ltd. – slide 36
    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…
  37. September 2015 Investor Presentation – Inter Pipeline Ltd. – slide 37
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  38. September 2015 Investor Presentation – Inter Pipeline Ltd. – slide 38
    Financial Discipline 60% Recourse Debt to Total Capitalization 50% Capital Structure* as at June 30, 2015 40% 30% 20% 18% 10% 0% 45% 2010 2011 2012 2013 2014 Q2 2015 37% 100% Conservative Payout Ratio** 80% 60%…
  39. September 2015 Investor Presentation – Inter Pipeline Ltd. – slide 39
    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…
  40. September 2015 Investor Presentation – Inter Pipeline Ltd. – slide 40
    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…
  41. September 2015 Investor Presentation – Inter Pipeline Ltd. – slide 41
    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 2015 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015…
  42. September 2015 Investor Presentation – Inter Pipeline Ltd. – slide 42
    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…
  43. September 2015 Investor Presentation – Inter Pipeline Ltd. – slide 43
    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…
  44. September 2015 Investor Presentation – Inter Pipeline Ltd. – slide 44
    Looking Forward Solid track record of increasing shareholder value Continued focus on developing potential growth opportunities Cost of service contracts expected to continue to generate majority of future cash flow Fee-based…
  45. September 2015 Investor Presentation – Inter Pipeline Ltd. – slide 45
    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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