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* Lakehead Deliveries Incremental WCSB Blended Heavy Supply Growth* (MMbpd) 3 (MMbpd) (cumulative kbpd) 6 700…
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 distributable cash flow 2016e EBITDA (1) Cost of Service (Liquids Segment) Utility style regulatory model:…
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 Drop-downs Strategic alignment with sponsor 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 Pipeline Description Capacity Execution Comments…
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 6,000 5,000 Incremental economics of projects in construction 4,000 Long-term price views Kbpd 3,000 Synergies with existing…
Pipeline Capacity vs. Supply Outlook Strong demand for pipeline takeaway capacity out of Western Canada 6 Near term optimization: 5 +60 80 kbpd 4 3 Enbridge 2 Regina Deliveries Other Existing Pipelines 1 Western Canadian…
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 2 EEP Lakehead System matches supply and demand Strong demand from refineries and connected markets CAPACITY (kbpd) Mainline…
Liquids Pipelines Growth Program
Acquired Interest in Bakken Pipeline System System extends from the Bakken to USGC Project Details ENB/EEP1 MPC ETP SXL Bakken Pipeline System consists of Dakota Assets: Access Pipeline (DAPL) and Energy 75% 25% 60% 40% Transfer…
Bakken Pipeline Investment Accretive acquisition Strategic Fit Offers customers competitive tolls between the Bakken and USGC Joint toll opportunity with Enbridge mainline Highly contracted: secured by long-term take-or-pay…
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…
Financial Outlook and Risk Management
Funding Outlook Manageable funding needs Significantly reduced 2016 capital expenditures, 885MM Based on liquidity position and combined with current equity valuation, do not expect to access equity market in 2016 Addition of 750MM…
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 September 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)…
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)…
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 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…
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…
Bakken Infrastructure Largest pipeline transporter of crude oil from the Bakken region to premium markets SLIDE 39
Regulatory Tolling Framework System Regulatory Methodology Lakehead System Base Toll Toll Indexed to PPI + 1.23% 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 Yes*…
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