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September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc.

Enbridge Income Fund Holdings Inc. · Sep 21, 2015 · 52 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 – Enbridge Income Fund Holdings Inc. – slide 1
    Enbridge Income Fund Holdings Inc. Positioned for Industry Leading Growth September 2015
  2. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 2
    3
  3. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 3
    Company Snapshot Ticker Symbol: TSX: ENF Market Capitalization: 2.3 Billion Equity Capitalization: 23.0 Billion Enterprise Value*: 37.3 Billion Dividend Frequency: Monthly 2015 Annualized Dividend Per Share: 1.70 CDN Dividend…
  4. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 4
    Key Investment Themes Best-in-class Canadian liquids infrastructure entity Highly reliable, low risk business model with limited commodity price and throughput exposure Highly visible and secured growth in execution with…
  5. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 5
    Enbridge Income Fund Infrastructure Asset Base Canadian Liquids focused asset base 6
  6. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 6
    Strategic Positioning Significant growth opportunities within current asset base Unparalleled, strategically positioned assets with scale and flexibility to expand and extend reach Prominent regional infrastructure in oil sands…
  7. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 7
    Shareholder Value Proposition Expect to deliver solid long term returns to shareholders Low Risk Business Model with Minimal Exposure to Commodity Prices Projected and Transparent Dividend Growth Visible and Secured Growth…
  8. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 8
    Cash Flow Supported by Liquids Focused Business The Fund is 80% liquids focused Q2 2015 CAFD* FY 2016e CAFD 10% 10% 30% 26% 44% 80% Crude Oil Transportation & Storage Natural Gas Transmission Green Energy *Cash…
  9. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 9
    Low Risk Business Model Mitigate risk where possible Market Price Risk* Low cost access to markets Cash Available for Distribution (CAFD) CAD ( million) continues to drive demand for pipeline capacity Mainline 30%…
  10. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 10
    ENF Expected DPS Growth Meaningful and visible dividend growth 10% DPS increase declared September 1, 2015 Expect approximately 10% 2016 2019 CAGR Sequential investments in the Fund Participation in Canadian Liquids Pipelines cash…
  11. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 11
    12 billion of Secured Growth Capital yet to come into Service Transparent, reliable and low-risk embedded growth capital plan Alberta Regional 12B AOC Hangingstone Lateral By in-service date Sunday Creek Terminal JACOS…
  12. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 12
    Manageable and Flexible Go-Forward Funding Plan Trading liquidity expected to grow significantly over time Ongoing Equity Funding Annual Average Daily Trading Volumes (millions annually) Public ENB 600 - 800 150 - 200…
  13. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 13
    Experienced Sponsor to Execute Growth Program Enbridge Inc. competencies have enabled the successful delivery of the past and current portfolio Executed Projects Projects in Execution* 24 45 23 21 Billion projects Billion…
  14. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 14
    Strong Sponsor Enbridge Inc. ENF will continue to benefit from ENB sponsorship Funding Backstop Flexibility ensures timely and effective funding of growth program Operational Expertise Continue to operate asset base Risk…
  15. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 15
    Crude Oil Transportation & Storage
  16. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 16
    Crude Oil Transportation and Storage Assets Strategically located asset base replace 17
  17. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 17
    WCSB Crude Oil Production Outlook Crude production expected to grow despite weak commodity price environment 6,000 5,000 4,000 Near Term Oil Sands kbpd 3,000 Projects in Service 2015 +370 kbpd 2,000 2016 +110 kbpd…
  18. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 18
    Bakken Crude Supply Forecast vs Take Away Capacity Pipeline throughput expected to be full 3,500 3,000 2,500 Rail Transport Capacity 2,000 kbpd 1,500 3rd Party Pipelines 1,000 Enbridge Pipelines Local Refinery…
  19. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 19
    North American Pricing Differentials Alberta Light Differentials Pacific Peak* Current 57 WCS - Maya (16.35) (9.27) WCS West Coast Heavy (23.59) (7.54) 59 55 WCS WCS - East Coast Heavy (17.85) (10.77) 47 Alberta Light WTI (17.30)…
  20. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 20
    Rail Perspective Rail Transportation is expected to decline as incremental pipeline capacity becomes available kbpd Forecast Rail Volumes 800 From Western Canada Rail Transportation Costs 700 600 8.65 Western Canada 500 to 16.05…
  21. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 21
    Mainline Capacity Optimization Current Status/Outlook Optimization efforts are closing the gap between available capacity and design hydraulic capacity Current Annual Operating Capacity*: 2,500 kbpd 2,500 +30 2,200 +130 2,100 +20…
  22. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 22
    Mainline Capacity Optimization Temporary System Optimization Additional actions are in place to squeeze out additional available capacity on a temporary basis Quarterly Throughput ex-Gretna Drag reducing agent 45 kbpd 2.5…
  23. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 23
    ENB Market Access Initiatives Enhance Industry Effectiveness Three major initiatives provide 1.7 MMbpd of increased market access and diversification +50 kbpd IJT Benchmark Toll +250 kbpd USD per barrel of heavy crude +50 kbpd…
  24. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 24
    Line 3 Replacement Increases system reliability and flexibility Total Secured Capital = 7.5 B ENF Funded EEP/ENB Joint Funded 25
  25. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 25
    Line 3 Replacement Expected completion: 2nd half of 2017 Project details - Replace all remaining segments of Line 3 between Hardisty and Superior - Restores line capacity to 760 kbpd - Expected completion: 2nd half of 2017 -…
  26. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 26
    Edmonton to Hardisty 36 180 km Pipeline Total Secured Capital = - Edmonton to Hardisty 1.8 B - 800 kbpd capacity - In Service: April 2015 Edmonton South Terminal - Terminal facilities - 3 transfer laterals - 5 550 kbbl tanks -…
  27. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 27
    Alberta Regional Infrastructure Largest operator in Alberta Competitive Advantage - Low cost expansion - Bridging of new projects - Regional expertise - ROW access - Dual delivery hubs Wood Buffalo Pipeline Waupisoo Pipeline…
  28. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 28
    Alberta Regional Infrastructure Secured Capital Projects Regional Oilsands Optimization: Athabasca Pipeline Twin & Expansion (2017) AOC Hangingstone Lateral (2H 2015) Surmont Cheecham Facilities (Q4 2014 / Q1 2015 ) Woodland…
  29. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 29
    Regional Oilsands Optimization Maintains attractive and reliable returns on invested capital while lowering tolls for shippers Before Optimization After Optimization 3.0B* 2.6B Expansion from 30 to 36 Expansion to…
  30. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 30
    Regional Oilsands Optimization Before Optimization After Optimization Wood Buffalo Pipeline Extension Wood Buffalo Pipeline Extension Capital Cost 1.8B* 1.3B Scope 450 km 100 km 30 pipeline 36 pipeline Connection to APT at Kirby…
  31. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 31
    Norlite Diluent Pipeline Diluent Demand Forecast (kbpd) Norlite Diluent Pipeline (1.3B): 1,200 1,000 Athabasca Norealis Terminal Terminal 800 600 - Current Scope: 449km, 400 IMPORT REQUIREMENT 24 pipeline 200 0 LOCAL &…
  32. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 32
    Total System Capacity post 2017 Continue to have a strong position in PADD II and grow market access to premium markets +250 kbpd +50 kbpd 2850 kbpd +375 kbpd +300 kbpd +800 kbpd 33 Light Heavy
  33. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 33
    Natural Gas Transmission
  34. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 34
    Natural Gas Transmission Alliance Pipeline is well positioned to capture WCSB & Bakken liquids rich gas supply growth Revenue Uplift Opportunity Post 2015 1,800 1,600 1,400 1,200 1,000 800 600 400 200 - 2007 2008 2009 2010…
  35. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 35
    Natural Gas Transmission 100% of targeted capacity has been re-contracted CDN + US 5-year 5-year New Services Offering is an attractive market- /MCF CDN at PAR Current 2013 New Firm Receipt Service - Z1 to ATP 0.42 0.42 focused…
  36. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 36
    Green Energy
  37. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 37
    Green Power One of Canadas largest suppliers of environmentally friendly power 38
  38. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 38
    Asset Overview Average length of PPAs is 16 years Facility Generating Capacity Our Interest Location Ontario Wind 190 MW 100% ON Talbot 99 MW 100% ON Greenwich 99 MW 100% ON Massif du Sud 150 MW 80% QC Lac Alfred 300 MW 67.5% AB…
  39. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 39
    Structure
  40. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 40
    New Structure (Simplified) 2015 ENB has 90% economic interest Public Enbridge Inc. ENF Total Ownership Ownership Shares (MM) 80.1% Public 56.3 80.1% 19.9% ENB 14.0 19.9% 70.4 Total ENB Owned ENB Securities Units/Shares…
  41. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 41
    Incentive Mechanism TPDRs paid-in-kind defer cash payment during growth construction Existing Incentive Fee Mechanism Existing cash incentive fee continues Base incentive of 7.9 million, plus 25%1 of pre-incentive distributed cash…
  42. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 42
    Strong Total Shareholder Returns Total Shareholder Return 5 year June 2015 ENF Midstream Peer Avg S&P/TSX Announces agreement with ENB for the transfer Sept 2015 of its Cdn. Liquids Announces Pipeline Business 300 Dec 2012 Dec…
  43. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 43
    Strong Dividend Growth Long term dividend growth exceeding plan 1.80 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Taxable Distribution paid by Enbridge Income Fund prior…
  44. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 44
    Contact Information: Allison Morley, Investor Relations Phone: (587) 955-2837 Email: allison.morleyenbridge.com http://www.enbridgeincomefund.com 45
  45. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 45
    Appendix
  46. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 46
    Strong Sell Side Support ENF 12-Month target prices and recommendations Broker/Analyst Current Target Price Recommendation AltaCorp Capital, Dirk Lever 40.00 Hold BMO Capital Markets Research Suspended CIBC World Markets, David…
  47. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 47
    15 billion in Secured Growth Capital Transparent, reliable and low-risk embedded growth capital plan Alberta Regional Capital Spend In Service Date Norealis Pipeline 0.5 In service Surmont Phase 2 Expansion 0.3 In service Woodland…
  48. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 48
    Enbridge Inc. Current System Overview Regional Oil Sands Mainline System North Dakota Line 9 System Lakehead System Spearhead/Flanagan South Seaway 49
  49. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 49
    Enbridge Inc. Secured Growth Capital* - By Return Profile 60% of secured capital generates tilted returns Flat Return Profile Tilted Return Profile Years to Full Life Full Life First year achieve full ( billions) Capital DCFROE…
  50. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 50
    Top 10 Mainline Shippers BP ExxonMobil Flint Hills Imperial Oil PDV Midwest Shell Marathon Suncor Sunoco Conoco 51
  51. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 51
    CTS Revenue Determinants Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 IJT Benchmark Toll (USD/bbl) 3.98 4.02 4.02 4.02 4.02 - Lakehead Local Toll 2.17 2.49 2.49 2.49 2.39 = Residual Benchmark Toll (USD/bbl) 1.81 1.53 1.53 1.53 1.63…
  52. September 2015 Investor Presentation – Enbridge Income Fund Holdings Inc. – slide 52
    Outstanding Shares Ownership Predominantly retail ownership Insiders , 1% Institutional 30% Retail 69% Does not include Enbridge Inc.s ownership Source: IPREO 53

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