Midcoast Energy Partners, L.P. Investment Community Presentation December 2015
Vision and Strategy VISION Be recognized as a leading natural gas and NGL midstream infrastructure developer, operator and service provider in North America SCALE SCOPE STRATEGY Provide best in class gathering, processing and…
Strong Sponsors and Management Leveraging Enbridge Inc. & Enbridge Energy Partners, L.P. ENB: North American leader in energy delivery Enbridge Inc. (ENB) Owner and operator of largest crude oil pipeline system Strong investment…
Strategically Positioned Asset Base Midcoast Business Segments Key Assets Gathering, Processing & Transportation: Natural Gas Deliveries 2.0 bcf/d strong asset foundation 90% EBITDA Gathering and Transportation Pipelines 11,100…
Strategic Priorities Strengthen underlying business Recontracted and captured new business that enhances cash flow certainty Executed plan to reduce annual operating & administrative costs by over 50 million Enhanced focus on core…
Long-Term Transformation of Risk Profile Risk profile transforms as base business grows and new business is captured Demand volumes and revenue progressively ramping on Texas Express Re-contract and capture new business that enhances…
Executing on Strategic Priorities to Strengthen Underlying Business business focus flow outlook + Enhance cash Sustainable cost reductions and asset optimizations Closed on sale of non-core assets Closed on agreement with…
Risk Management Program 80% of 2016 forecasted commodity Investment grade counterparties gross margin hedged at weighted 90% of exposure. average prices well above current market prices. Credit requirements and security received…
Sponsor Actions Underpin Visible Growth Sponsor (EEP) actions enhance MEPs ability to deliver distribution growth through December 31, 2017 EEP to support 1.0x distribution coverage and 5% distribution CAGR at MEP through 2017 (1)…
Drop-down Outlook 100% Natural Gas business 48.4% ownership 51.6% July 1, 2014 2016e 2019e Drop-down program is strategic to both EEP and MEP Next drop-down proposal expected in 2016 Expected drop-down size 200 - 300…
Capital Expenditures Forecast & Available Liquidity Midcoast Operating, L.P. 2015e ( millions) 80% of 2015 capex forecast spent Beckville Gas Processing Plant 60 YTD 3Q15. Eaglebine Developments 125 Compression Capital 10 Beckville…
Key Takeaways Maintain positive momentum and focus on execution Solid financial performance and healthy coverage through 3Q 2015 1.17x YTD Coverage Sixth consecutive quarterly distribution increase (+5.9% vs 3Q14) Executing on…
Appendix
MEP Organizational Structure Enbridge Inc. owns Enbridge Inc. 42% of EEP (NYSE: ENB) (Baa2 / BBB+) 2% GP interest (indirect) 38% LP interest (indirect) Enbridge Energy Partners, L.P. (NYSE: EEP) (Baa3 / BBB) 2% GP…
Strategic Entry into Eaglebine Play Secured transactions establish strategic East Texas System foothold in the liquids-rich Eaglebine Midcoast acquired NGRs midstream assets 160 million combined transaction and expansion capex…
Financial Support from Sponsors Financial Support Agreement Receivables Sales Agreement Purpose Derivative contracts, natural gas purchasing Enhance available liquidity agreement and NGL purchase agreement support Borrower Midcoast…
Regional Outlook Overview Continue to monitor developments and work closely with producers as conditions evolve Gathering, Processing & Transportation Highlights East Texas Integration and build-out of Eaglebine growth investments…
Texas Express NGL System Strategic Benefits NGL volumes sourced from Mid-Continent, Rockies and West Texas Enhances MEP competitive position by providing greater access to Mont Belvieu fractionation NGL Mainline System…
Texas Express A Growing Base of Secure Cash Flow Texas Express NGL System Shipper committed volumes ramping up; Underpinned by fee-based demand revenue System is expandable to 400,000 Bpd Mainline System Volume Commitments Bpd…
East Texas System Strategic Benefits Established foothold in developing Eaglebine play Cotton Valley, Haynesville, and Bossier plays continue to deliver New state-of-the-art Beckville plant well positioned to capture incremental…
Anadarko System Strategic Benefits Access to nearby developing Cline Shale and Mississippi Lime plays Highlights Miles of natural gas gathering and 3,100 miles transporting pipelines Processing plants 12 plants(1) Processing…
North Texas System Strategic Benefits Well positioned to capture rich gas opportunities in Marble Falls play Established operator; positioned to secure growth opportunities Highlights Miles of natural gas gathering and 3,900…
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