Second Quarter 2016 Earnings Presentation Enbridge Energy Partners, L.P. July 28, 2016
Agenda 1. Line 6B Update 2. Crude Oil Fundamentals 3. Financial Summary 4. Low-risk Business Model 5. Question & Answer SLIDE 3
Safety and Operational Reliability Line 6B Settlement Primary components to terms of settlement with U.S. DOJ and U.S. EPA Civil penalties under Clean Water Act for 2010 incidents on Line 6B (61 million) and Line 6A (1 million)…
Sandpiper and Line 3 Replacement Projects Early 2019 in-service; reduced near-term capital requirements MPUC Regulatory Timeline Clarified Certificate of Need/Route Permit processes rejoined EIS to precede evidentiary phase; EIS…
Western Canadian Supply Growth Outlook Focused on addressing takeaway capacity shortfall Incremental WCSB Blended Takeaway Capacity vs. Supply Outlook Heavy Supply Growth (mmbpd) (cumulative kbpd) 700 6 Near term optimization:…
Strong Demand Drives High Pipeline Utilization Key Markets Served by the Enbridge System Strong Demand for Pipeline Systems Premier connectivity to North American refining centers Competitive transportation rates Expanded…
Q2 2016 Financial Summary Adjusted EBITDA of 489.3 million +16% over Q2 2015 2Q16 vs. 1Q16 Adjusted EBITDA Earnings ( millions, except per unit amounts) 2Q 2016 2Q 2015 - Alberta wildfires (20MM impact in Q2) Adjusted EBITDA1 489.3…
Capital and Investment Expenditures Adequate liquidity to fund base capital program 2016 CAPITAL AND INVESTMENT EXPENDITURES Available Liquidity ( millions) ( millions) 1,400 1,289 Proforma: 750 million Eastern Access1 50 1,200…
Low-risk Business Model Contract structures deliver reliable cash flows Commercial Structures Counterparty Credit Profile2 Long-term, low-risk commercial structures in core liquids pipelines business Cost of Service/Take-or-Pay…
Key Takeaways Business model attractive in all market conditions Strong business fundamentals Connectivity to large producing basins and key North American refining centers Expanded market access underpins strong system utilization…
Q&A
Supplemental Slides Second Quarter 2016 Earnings Presentation July 28, 2016
Second Quarter Earnings (GAAP) Quarter Ended June 30, Segmented and corporate operating income (loss): 2016 2015 Change - Liquids 324.5 271.6 52.9 - Natural Gas (60.1) (277.6) 217.5 - Corporate (2.7) (3.6) 0.9 Operating income…
Second Quarter Earnings (Adjusted) Quarter Ended June 30, 2016 2015 Change Adjusted segmented operating income (loss): - Liquids (1) 330.8 270.6 60.2 (1) - Natural Gas (3.7) 2.7 (6.4) - Corporate (2.7) (3.6) 0.9 Adjusted…
Distribution Coverage Q2 2016 Q2 2016 YTD 2016 YTD 2016 Net income attributable to general and limited partner ownership in EEP 83.7 83.7 163.7 163.7 Noncash derivatives fair value losses 41.4 41.4 65.7 65.7 Accretion of discount on…
Liquids Operating Income (Adjusted) Quarter Ended June 30, Liquids Adjusted Operating Income 2016 2015 Change Lakehead 275.1 214.2 60.9 Mid-Continent 18.2 21.0 (2.8) North Dakota 37.5 35.4 2.1 (1) Liquids adjusted operating…
Lakehead Operating Income (Adjusted) Quarter Ended June 30, Lak ehead Adjusted Operating Income 2016 2015 Change (1) 513.5 420.0 93.5 Operating revenue Power (49.3) (46.4) (2.9) Operating and administrative expenses (1) (98.9)…
Mid-Continent Operating Income (Adjusted) Quarter Ended June 30, Mid-Continent Adjusted Operating Income 2016 2015 Change Operating revenue(1) 42.0 41.9 0.1 Power (2.5) (2.4) (0.1) Operating and administrative expenses (1) (16.1)…
North Dakota Operating Income (Adjusted) Quarter Ended June 30, North Dak ota Adjusted Operating Income 2016 2015 Change Operating revenue(1) 70.3 68.5 1.8 Power (7.9) (8.4) 0.5 Operating and administrative expenses (1) (15.4)…
Line 6B and Line 6A Incidents Insurance Line 6B Coverage 650.0 Total cost estimate accrued 1,223.0 Proceeds collected through 06/30/2016 547.0 Spent through 06/30/2016 1,068.3 61.0 Civil penalty under the Clean Water Act of U.S.…
Capital Expenditures Q2 2016 YTD 2016 Maintenance Capex 15.2 27.2 (1)(2) Enhancement Capex 202.4 472.4 Ending PP&E, net 17,643.0 17,643.0 Q2 2016 Major Enhancement Expenditures Q2 2016 YTD 2016 (1) North Dakota Expansions 35.8…
Book Capitalization 6/30/2016 12/31/2015 Short-term debt 299.9 300.0 Long-term debt (1) 8,013.9 7,528.4 Total Debt 8,313.8 7,828.4 Partners' capital(1) 9,403.4 9,482.1 Total Capitalization 17,717.2 17,310.5 Total Debt / Total…
Non-GAAP Reconciliations Non-GAAP measures no longer include make-up rights and option premium amortization adjustments. These changes will be made on a prospective basis and are not material for historical periods presented.
Adjusted Earnings The foregoing presentation makes reference to adjusted net income in order to exclude the effect of non-cash and other items that are not indicative of our core operating results. A reconciliation to net income per…
Adjusted Segment Operating Income (Loss) The foregoing presentation makes reference to adjusted operating income (loss), which is reconciled to nearest comparable GAAP measures as shown below. Liquids Natural Gas Q2 2016 Q2 2015 Q2…
Adjusted Gross Margin The foregoing presentation makes reference to gross margin for the Natural Gas segment, which is reconciled to nearest comparable GAAP measures as shown below. Natural Gas Q2 2016 Q2 2015 Operating revenues…
Adjusted EBITDA The foregoing presentation makes reference to adjusted EBITDA which is used as a supplemental financial measurement to manage the performance of the entity. A reconciliation of net income (loss) to adjusted EBITDA is…
Distributable Cash Flow The foregoing presentation makes reference to distributable cash flow, which is used as a supplemental financial measurement to assess liquidity and the ability to generate cash sufficient to pay interest costs…
Adjusted EBITDA to DCF A reconciliation of adjusted EBITDA to distributable cash flow is provided below. Three months ended Six months ended Distributable Cash Flow June 30, June 30, (unaudited; dollars in millions) 2016 2015 2016…
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