Well Positioned for Current Environment Low-risk, reliable business model provides highly certain cash flows Commercial Structures Counterparty Credit Profile2 Long-term, low-risk commercial structures in core liquids pipelines…
Strong Western Canadian Supply Outlook and Demand for Pipeline Capacity Oil Sands Growth Pipeline Capacity vs. WCSB Supply MMBPD Lakehead Deliveries 3 2.5 2 1.5 1 0.5 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 CAPP Crude Oil Forecast, Markets…
Western Canadian Supply Profile vs. Crude Price History demonstrates steady oil sands production growth in all price environments kbpd US/bbl WCSB Production Enbridge Ex-Gretna Deliveries WTI Annual Avg (US/bbl) 4,000 120 3,500…
Our Strategy: Stability + Growth The foundation for delivering sustainable growth Strategic Position Exceptional liquids pipeline infrastructure network Connectivity to large producing basins and key North American refining…
Foundation for Delivering Sustainable Growth Strategic position: Largest pipeline transporter of growing oil production from Western Canada and Bakken Norman Competitive Advantages Wells Refiners: Access to multiple crude streams…
Foundation for Delivering Sustainable Growth Demand pull: pipeline system accesses 8.5 MMbpd of refining capacity Key Markets Served by the Enbridge System Strong Demand for Pipeline Systems Premier connectivity to North…
Low-Risk Business Model Delivers Stable Cash Flows Liquids pipeline business generates greater than 90% of Partnerships distribution cash flow 2016e EBITDA (1) Cost of Service (Liquids Segment) Utility style regulatory model: return-of…
Liquids Pipelines Remaining Contract Life Long-term, low-risk commercial structures underpin liquids pipeline revenues Lakehead System: 0 10 years 20 years 30 years Mainline Expansions Cost-of-Service Eastern Access Alberta…
Foundation for Delivering Sustainable Growth Premier MLP Sponsor: Enbridge Inc. (ENB) Wind ENB: A leader in energy delivery Solar Gas Distribution Owner and operator of largest crude oil pipeline Storage system Liquids Pipelines…
Three Pillars of Growth Diversified growth platform Single-tier IDR structure Commercially secured organic growth underway EEP Low-cost, phased expansion opportunities Strategic alignment with sponsor Drop-downs from…
Pillar 2: Expansion & Extension Opportunities Well positioned to pursue additional expansions to meet shipper needs; phased expansions are attractive in a low crude price environment Market Access Opportunities kbpd 1 Eastern Gulf…
Pillar 3: Enbridge U.S. Liquids Pipelines Drop Down Attractive, low-risk U.S. liquids pipeline assets available for potential drop down Pipeline System Risk Profile C A Eastern Access B B Mainline Expansion A H C Line 3…
Crude Oil Fundamentals and the Enbridge System
WCSB Crude Supply Forecast Western Canadian producers have a long-term investment horizon kbpd 6,000 5,000 Incremental economics of projects in construction 4,000 Long-term price views 3,000 Synergies with existing operations…
Pipeline Capacity vs. Supply Outlook Strong demand for pipeline takeaway capacity out of Western Canada MMbpd The Fort Hills project remains on schedule with construction more than 7 50% complete at the end of the fourth quarter (2015).…
Bakken Crude Supply Forecast Highly productive and economic resource base; pipeline access to market enhances producer netbacks 75% of resource base in 4 core Bakken Crude Supply vs. Takeaway Capacity counties (McKenzie, Dunn, 3500…
Strong Competitive Position Enbridge system is a reliable, low cost crude oil transportation provider with access to premium markets /bbl Rail Other Enbridge Transport Pipelines System WCSB WCSB to Chicago Area 15 - 21 5 - 6 4…
Matching Supply Push and Demand Pull Production growth with limited alternative takeaway capacity EEP Lakehead System 2 matches supply and demand Strong demand from refineries and connected markets CAPACITY (kbpd) Mainline…
Liquids Pipelines Organic Growth Underway
Bakken Expansion Sandpiper Pipeline EEP pipeline takeaway will reach 580,000 bpd with next phase of expansion Total Secured Capital = Scope 600 mile, 24/30 pipeline 2.6 B Capacity 225 kbpd/375kbpd Target Early 2019 In-Service…
Line 3 Replacement Enbridge system operating capacity from Western Canada increases to 2.85 MMbpd; project provides high reliability and assurance to key markets EEP Capital Investment Border to Superior 2.6 billion capital To be…
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…
Financial Outlook and Risk Management
Funding Outlook Manageable funding needs Significantly reduced 2016 capital expenditures, 920MM Based on liquidity position and combined with current equity valuation, do not expect to access equity market in 2016 Joint Funding with…
Delivering Prudent Growth Manageable funding outlook; joint funding with sponsor enhances financial flexibility Liquids Pipelines(1) (mm) Growth Net Capital Target Risk Profile Capital EEP In-Service Eastern Access Line 6B Expansion…
Natural Gas Segment Large-scale G&P assets along US Gulf Coast with access to multiple drilling formations Key Assets Natural Gas Deliveries 2.0 bcf/d Gathering and Transportation Pipelines 10,900 miles Active Natural Gas…
Strong Counterparty Credit Profile Major liquids pipeline systems underpinned by strong, investment grade customers EEP Customer Credit Quality (1) MAINLINE TOP 10 SHIPPERS Shipper 1: Integrated AA+/Aaa Shipper 2: Integrated A-/A3…
Priority One Focus on Safety & Operational Reliability Operational Risk Management Program State-of-the art Liquids Pipelines control center Most extensive maintenance, integrity and inspection program in the history of the…
Key Takeaways Business model attractive in all market conditions Strategic position Connectivity to large producing basins and key North American refining centers Expanded market access underpins strong system utilization outlook Well…
Appendix Enbridge Energy Partners, L.P. Investment Community Presentation May 2016
Corporate Structure Enbridge Inc. owns 12% of listed shares 42% of EEP (indirect) Enbridge Inc. 100% voting interest (NYSE: ENB) (indirect) (Baa2 / BBB+) Enbridge Energy Management, L.L.C. 2% GP interest (indirect) (NYSE: EEQ)…
Capital and Investment Expenditures Sufficient liquidity to fund base capital program; not expecting to access equity market in 2016 2016 CAPITAL AND INVESTMENT EXPENDITURES Available Liquidity ( millions) ( millions) 1,000…
Preferred Unit Restructuring Enhances Partnerships financing flexibility Term Prior Restructured Principle Rate 1.2 Billion/ 7.5% Unchanged Distribution Becomes Cash Paying Q3 2015 Q3 2018 Accumulated Deferred Distribution…
North American Crude Oil Pricing Differentials Enbridge is the low cost transportation provider and we will continue to grow our pipeline systems Alberta Light Pacific Differentials 48 Current (1) 50 41* WCS WCS Maya (4) 38 WCS…
Bakken Infrastructure Largest pipeline transporter of crude oil from the Bakken region to premium markets *Marathon Petroleum Corp. will fund 37.5% of Project Sandpiper cost and assume a 27% equity interest in the SLIDE 39 EEP North…
Regulatory Tolling Framework System Regulatory Methodology Lakehead System Base Toll Toll Indexed to PPI + 2.65% Southern Access Cost of Service at 9% ROE; 55% equity, 45% debt rate base + Tax Allowance Cost of Service at NEB…
Major Canadian and US Crude Oil Pipeline and Refineries SLIDE 41
Alternative Ways to Invest in our MLP Tax Considerations Ticker Symbol: EEQ (NYSE) EEP (NYSE) Allocated Taxable Income No Yes Mutual Fund Limitations No Yes Unrelated Business Income Tax No Yes Schedule K-1 No Yes Form 1099…
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