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January 2016 Investor Presentation – Midcoast Energy Partners, L.P.

Midcoast Energy Partners, L.P. · Jan 25, 2016 · 23 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. January 2016 Investor Presentation – Midcoast Energy Partners, L.P. – slide 1
    Investment Community Presentation January 2016
  2. January 2016 Investor Presentation – Midcoast Energy Partners, L.P. – slide 2
    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…
  3. January 2016 Investor Presentation – Midcoast Energy Partners, L.P. – slide 3
    Strong Sponsors and Management Leveraging Enbridge Inc. & Enbridge Energy Partners, L.P. Demonstrated track-record of sponsor support Enbridge Inc. (ENB) Owner and operator of largest crude oil pipeline system Strong investment…
  4. January 2016 Investor Presentation – Midcoast Energy Partners, L.P. – slide 4
    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 miles…
  5. January 2016 Investor Presentation – Midcoast Energy Partners, L.P. – slide 5
    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…
  6. January 2016 Investor Presentation – Midcoast Energy Partners, L.P. – slide 6
    LongTerm 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…
  7. January 2016 Investor Presentation – Midcoast Energy Partners, L.P. – slide 7
    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…
  8. January 2016 Investor Presentation – Midcoast Energy Partners, L.P. – slide 8
    Risk Management Program 80% of 2016 forecasted commodity gross 90% of exposure with investment margin hedged at weighted average prices grade counterparties. well above current market prices. Credit requirements and security 40% of…
  9. January 2016 Investor Presentation – Midcoast Energy Partners, L.P. – slide 9
    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)…
  10. January 2016 Investor Presentation – Midcoast Energy Partners, L.P. – slide 10
    Drop-down Outlook 100% Natural Gas business ownership 48.4% 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…
  11. January 2016 Investor Presentation – Midcoast Energy Partners, L.P. – slide 11
    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…
  12. January 2016 Investor Presentation – Midcoast Energy Partners, L.P. – slide 12
    Appendix
  13. January 2016 Investor Presentation – Midcoast Energy Partners, L.P. – slide 13
    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…
  14. January 2016 Investor Presentation – Midcoast Energy Partners, L.P. – slide 14
    Volume History Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2013 2013 2014 2014 2014 2014 2015 2015 2015 Natural Gas Business - Volumes ('000 MMbtu/d) East Texas 1,120 1,028 971 1,029 1,063 1,056 1,007 968 966 Anadarko 957 902 824 819 806 858 831…
  15. January 2016 Investor Presentation – Midcoast Energy Partners, L.P. – slide 15
    Strategic Entry into Eaglebine Play East Texas System Secured transactions establish strategic foothold in the liquids-rich Eaglebine Midcoast acquired NGRs midstream assets 160 million combined transaction and expansion capex…
  16. January 2016 Investor Presentation – Midcoast Energy Partners, L.P. – slide 16
    Securing Cash Flow Certainty Contract Mix by System Creditworthy Counterparties Relative Gross Margin Contribution (Aaa / AAA) (A3 / A-) 29% (Baa2 / BBB) (A / Baa1) 54% (Baa1 / BBB+) (A / A1) (BBB / Baa2) 71% (BBB / Baa2)…
  17. January 2016 Investor Presentation – Midcoast Energy Partners, L.P. – slide 17
    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…
  18. January 2016 Investor Presentation – Midcoast Energy Partners, L.P. – slide 18
    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…
  19. January 2016 Investor Presentation – Midcoast Energy Partners, L.P. – slide 19
    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…
  20. January 2016 Investor Presentation – Midcoast Energy Partners, L.P. – slide 20
    Texas Express A Growing Base of Secure Cash Flow Example Subtitle 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…
  21. January 2016 Investor Presentation – Midcoast Energy Partners, L.P. – slide 21
    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…
  22. January 2016 Investor Presentation – Midcoast Energy Partners, L.P. – slide 22
    Anadarko System Strategic Benefits Access to nearby developing Cline Shale and Mississippi Lime plays Highlights Miles of natural gas gathering 3,100 miles and transporting pipelines Processing plants 12 plants(1)…
  23. January 2016 Investor Presentation – Midcoast Energy Partners, L.P. – slide 23
    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 3,900…

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