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Enbridge Spectra Merger – Enbridge Inc.

Enbridge Inc. · Sep 6, 2016 · 31 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. Enbridge Spectra Merger – Enbridge Inc. – slide 1
    Enbridge Inc. and Spectra Energy Corp Combine to Create North Americas Premier Energy Infrastructure Company Investor Presentation September 6, 2016 1 All figures presented in Canadian dollars, unless otherwise specified
  2. Enbridge Spectra Merger – Enbridge Inc. – slide 2
    Highlights of Strategic Combination Global energy Unparalleled secured Stable and predictable infrastructure leader growth program of cash flows Diversified 26+ assets and 165 Billion EV 48 Billion Billion 96% strong…
  3. Enbridge Spectra Merger – Enbridge Inc. – slide 3
    Transaction Details Transaction Based on Enbridges September 2, 2016 closing price of 53.25, total consideration for each Spectra share is 0.984 shares of Enbridge common stock Terms Offer price represents a premium of approximately…
  4. Enbridge Spectra Merger – Enbridge Inc. – slide 4
    Compelling Benefits to Enbridge and Spectra Shareholders Enbridge Spectra Diversifies Enbridge to be balanced Delivers upfront premium and participation between crude and natural gas in significant value uplift potential Best-in-class…
  5. Enbridge Spectra Merger – Enbridge Inc. – slide 5
    Right Combination; Right Time Two Premium Franchises Positioning for the Future Increasing opportunities for large scale infrastructure investments Converging markets gas and liquids Changing global financial and…
  6. Enbridge Spectra Merger – Enbridge Inc. – slide 6
    Best-In-Class Value Proposition Highest quality liquids and gas infrastructure assets in North America, all housed under one roof Largest and most secure program of diversified organic growth projects in the industry Unparalleled…
  7. Enbridge Spectra Merger – Enbridge Inc. – slide 7
    The Premier North American Energy Infrastructure Asset Base Spanning Key Supply Basins and Demand Markets Enbridge Spectra Combined Liquids pipelines (in Km) 27,600 2,720 30,320 Liquids terminals capacity (in MMbbls) 79 5 84 Gas…
  8. Enbridge Spectra Merger – Enbridge Inc. – slide 8
    Scale Enhances Competitive Position Enhances Financial Flexibility and Access to Capital North American Energy Infrastructure Canadian Listed Companies Global Energy Companies Enterprise Value ( in billions) Market Capitalization ( in…
  9. Enbridge Spectra Merger – Enbridge Inc. – slide 9
    Fundamentals Support Growth and Sustainable Long Term Cash Flow Extending and diversifying growth Liquids: Highly Stable & Growing Base Cash Flows Natural Gas: Steady Long Term Growth further upside optionality in an oil recovery…
  10. Enbridge Spectra Merger – Enbridge Inc. – slide 10
    Multiple Strategic Growth Platforms Enbridge Platforms for Growth Spectra Platforms for Growth Highly predictable North North Positioned for sustained growing cash flows with American American demand-pull organic significant…
  11. Enbridge Spectra Merger – Enbridge Inc. – slide 11
    Industry-Leading Growth Program Stronger Together Pro Forma Secured Expansion Program Enjoys Unrivaled Scale ( in billions) 26 23 Risked 100% in execution 17 13 8 6 1 Pro Forma Enbridge TRP KMI ETP EPD WMB Large Diverse…
  12. Enbridge Spectra Merger – Enbridge Inc. – slide 12
    Diversifies and De-risks 2017-2019 Growth Guidance Capital In-service 2017 2019 ( in billions) 12.9 Diversity of secured growth programs by 7.0 8.6 0.4 Commodity type Expenditure profile 4.1 8.2 5.9 2.6 Geography 1.4…
  13. Enbridge Spectra Merger – Enbridge Inc. – slide 13
    Strong Commercial Underpinning: Maintains Enbridges Low Risk and Capital Discipline Low Risk Business Model Limited Commodity Price Risk Investment Grade Customers 96% of cash…
  14. Enbridge Spectra Merger – Enbridge Inc. – slide 14
    Significant and Highly Visible Combination Synergies Annual Run-Rate Synergies Multiple Synergy Opportunities Full run-rate cost synergies expected to be achieved by end of 2018: Increase in purchasing power Identifiable and…
  15. Enbridge Spectra Merger – Enbridge Inc. – slide 15
    Supports, De-risks, and Enhances Current Plan 6.00 4.50 5.50 per share 3.80 3.72 3.02 2014A 2015A 2016E 2017E 2018E 2019E Based on organic secured growth only 16 (1) See appendix for definition of ACFFO.
  16. Enbridge Spectra Merger – Enbridge Inc. – slide 16
    Visible Organic Dividend Growth with Upside Potential 15% dividend increase in 20171 10-12% annual dividend growth from 2018 through 2024 Conservative ACFFO payout ratio of 50-60% Extended dividend growth through:…
  17. Enbridge Spectra Merger – Enbridge Inc. – slide 17
    No Requirements for Follow-on Enbridge Inc. Equity Enbridge Group Funding Requirements (2017E 19E) Ample Sources of Alternative Equity Financing Secured Capital Program 8 billion of alternative sources of equity capital (2017-19): (…
  18. Enbridge Spectra Merger – Enbridge Inc. – slide 18
    Strong Investment Grade Credit Strong Credit Metrics Increased size, scale and asset diversity significantly enhances the credit profile of the combined entity Debt/EBITDA naturally improves as high quality projects under…
  19. Enbridge Spectra Merger – Enbridge Inc. – slide 19
    Peer-Leading Total Return Proposition Pro Forma Total Return vs Diversified Peers 16% Dividends 12% 13% 9% 8% 5% 9% 5% 6% 4% 6% 4% 4% 4% 4% 4% 3% 3% 3% Pro forma Nextera TransCanada Emera Sempra Enterprise Fortis Duke…
  20. Enbridge Spectra Merger – Enbridge Inc. – slide 20
    Timeline to Transaction Closing Prepare File final documents Mail proxy proxy with circulars to Shareholder Shareholder circular and securities Enbridge and Votes Votes Announcement registration commissions Spectra…
  21. Enbridge Spectra Merger – Enbridge Inc. – slide 21
    Key Takeaways Premier N.A. Energy Infrastructure Company Highest quality liquids and natural gas infrastructure assets in North America diversified Largest and most secure program of organic growth projects in the industry Six…
  22. Enbridge Spectra Merger – Enbridge Inc. – slide 22
    Appendix North American Liquids Pipelines North American Gas Pipelines Utilities Canadian Midstream U.S. Midstream Renewable Power Secured Growth Program Detail Pro forma Funding Strategy Available Cash Flow from Operations 23
  23. Enbridge Spectra Merger – Enbridge Inc. – slide 23
    North American Liquids Pipelines Segment Highlights Our Combined Footprint Highly competitive position with low-cost, fee-based Enbridge Spectra Combined cash flows Liquids pipelines (in Km) 27,600 2,720 30,320 Liquids terminals…
  24. Enbridge Spectra Merger – Enbridge Inc. – slide 24
    North American Gas Pipelines Segment Highlights Our Combined Footprint Enbridge Spectra Combined One of the premier natural gas transportation systems in North America Long-haul gas pipelines (in Km) 3,560 27,520 31,080 Gas storage…
  25. Enbridge Spectra Merger – Enbridge Inc. – slide 25
    Utilities Segment Highlights Our Combined Footprint Enbridge Spectra Combined Two major North American utilities with Gas distribution customers (in MM) 2.1 1.4 3.5 significant organic growth Average base rate growth (5 years) 6% 4%…
  26. Enbridge Spectra Merger – Enbridge Inc. – slide 26
    Canadian Midstream Segment Highlights Our Combined Footprint Makes Enbridge the top player in the Montney, Duvernay and the Horn River Opportunities for NGL pipelines Provides critical gathering and processing services Complementary…
  27. Enbridge Spectra Merger – Enbridge Inc. – slide 27
    U.S. Midstream Segment Highlights Our Combined Footprint Assets located in some of the most desirable, resource-rich basins The largest natural gas processor and NGL producer in the U.S. Strong positions in multiple plays including…
  28. Enbridge Spectra Merger – Enbridge Inc. – slide 28
    Renewable Power Segment Highlights Our Combined Footprint Renewable power assets provide stable cash flows Enbridge Spectra Combined from long term contracts with primarily government Net generating capacity (in MW) 1,800 1,800…
  29. Enbridge Spectra Merger – Enbridge Inc. – slide 29
    Combined Secured Growth Program Capital Project Segment ( in Bn) In-service 2017: JACOS Hangingstone Liquids Pipelines 0.2 Athabasca Pipeline Twinning Liquids Pipelines 1.3 Norlite Diluent Pipeline Liquids Pipelines 0.9 Wood Buffalo…
  30. Enbridge Spectra Merger – Enbridge Inc. – slide 30
    Pro Forma Funding Alternatives Common Equity Senior Notes Hybrid Entity Ratings (S&P / Moodys / DBRS) New Issue DRIP ATM / MTN Securities ENB BBB+ / Baa2 / BBBH ENF NR / Baa2 / BBBH EEP BBB / Baa3 / BBB EPI BBB+ / NR / A…
  31. Enbridge Spectra Merger – Enbridge Inc. – slide 31
    Available Cash Flow from Operations ACFFO reconciliation Cash provided by operating activities continuing operations (+ / ) Adjustments for changes in operating assets and liabilities 1 Adjusted cash provided by operating activities ()…

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