Presenting Management Team Strategic Overview Don Althoff 15 minutes President & Chief Executive Officer Business Joint Ventures Darren Marine 25 minutes Alliance SVP Business Joint Ventures Aux Sable Ruby Alberta Ethane Gathering…
Strategic Overview Don Althoff, President & Chief Executive Officer
Investor Day Key Themes Cornerstones for Veresens success are now in place Veresen has diversified and meaningfully grown over the past several years A pure-play natural gas and NGL infrastructure business following the power…
Significant Evolution of the Business In Last Five Years Business today is comprised of a diverse mix of contracted infrastructure Veresen Distributable Cash Flow Before Corporate Costs(1) 1 Acquisition of AEGS: Entry into Alberta…
Strategy Remains Well Positioned Growth per share, stable dividend and strong balance sheet are the key tenets Integrated natural gas and NGL infrastructure business Focused Connecting competitive supply regions with growing end…
Our Business Today Existing asset base focused on top supply regions and high value markets Developing LNG project to access Pacific markets 8
Executive Leadership Team Significant and diverse industry experience to deliver on strategy Years in the Business Deep knowledge of the fuels supply chain marketplace, including pipelines, Don Althoff 30+ terminals, trading and…
Alliance & Aux Sable Darren Marine, SVP Business Joint Ventures
Alliance Pipeline & Aux Sable Premier transporter of natural gas and NGLs from top plays to high-value market Transports gas from top plays, including Montney, Duvernay and Alliance Pipeline Bakken, to high value Chicago market…
Natural Gas Fundamentals Select WCSB plays remain competitive and will continue to be developed North American Plays by PIR at US2.25/mcf(1) WCSB Gas Volumes by Play(2) (PIR = PV of NOI / Capex) Bcf/d 20 Marcellus Dry Gas 15…
NGL Fundamentals NGL pricing in the U.S. remains advantaged relative to Alberta WCSB NGL Volumes(1) NGL Pricing(2) Bbl/d US/bbl 600 Supply of NGLs in Alberta 100 market continues to grow 590 90 80 driving down prices 580 in…
Alliance Pipeline Volumes Throughput has remained strong following transition to the new service model Alliance Throughput Historical Volumes & Future Commitments(1) Bcf/d 1.8 Anticipate fundamentals will Historical Contracted…
Alliance Pipeline Counterparty Considerations In-the-money service and solid counterparty credit reduces risks Implied Value of Alliance Transportation(1) Counterparty Exposure(2) US per DTH 0.40 Implied value of Alliance…
Future Opportunities at Alliance & Aux Sable Near-term focus on extending contracts; other opportunities for long-term growth Re-contract to solidify firm contracts for small firm capacity available in Near-term 2019-2020 and beyond…
Aux Sable Commodity Price Sensitivity Mid West liquids price recovery provides significant upside for Aux Sable Distributable Cash Sensitivity to Frac Margins Distributable cash range is influenced by: Gas composition Expected…
Ruby Pipeline Preferred interest in newly-constructed pipeline servicing large market 50% convertible preferred interest Ruby Pipeline extends Veresens footprint into the Pacific Northwest 1.1 Bcf/d of existing take-or-pay…
Natural Gas Fundamentals Expect near-term weakness, with improving fundamentals at or during recontracting Northern California Gas Supply(1) Rockies Gas Production(1) MMcf/d Bcf/d 2.5 1.1 Bcf/d contracted 36% of contracts extend to…
Ruby Pipeline Counterparty Considerations Preferred distribution secured by strong shipper credit for next five years Volumes by Shipper Credit Rating Illustrative Cost Structure Over Time MMcf/d 1,200 Preferred distribution…
Alberta Ethane Gathering System Paul Eastman, SVP Operations
Alberta Ethane Gathering System (AEGS) Largest transporter of specification ethane to Alberta petrochemical facilities 1,334 km integrated system connecting ethane sources to storage and petrochemical facilities in Alberta 100%…
Burstall Ethane Storage Paul Eastman, SVP Operations
Burstall Ethane Storage 1 million barrel ethane storage project supporting Alberta petrochemical industry Salt cavern ethane storage facility with a capacity of 1 million bbls 100% Veresen owned project, with an expected in-service…
Engineering & Construction Projects Delivered over 800 million in capital projects over past 5 years CMM Capital Project Delivery(1) Operating Capabilities 1,000 Environment 800 Under construction Health & Safety 600…
Safety and Environmental Stewardship are Core Values Significant improvement in safety and environmental performance Total Recordable Incident Rate Environmental Recordable Frequency 1.8 3.4 0.9 1.5 0.6 0.4 0.8 0.2…
Veresen Midstream Dave Fitzpatrick, President & Chief Executive Officer Veresen Midstream
Veresen Midstream Overview A leading Western Canadian natural gas midstream platform Expects to be the largest independent TOWER gatherer and processor of Montney gas in Processing Facility (MMcf/d) 2018 Tower 200 (In-Service: Q4…
Veresen Midstream Structure Veresen Midstream to provide up to 5B for CRP midstream projects Veresen Midstream Partnership Structure S&P BBB (Stable) Private limited partnership jointly owned DBRS BBB (Negative) and jointly controlled…
CRPs Montney Resource Continues to Improve Increasing gas and liquids rates and declining costs driving up returns Half Cycle Single Well Economics(1) First Year Average Production Per Well(2) Mcf/d 200% 200% 200% 8,000 7,000…
Encanas Market Messaging About the Montney Encana expects meaningful growth over the next several years Source: Encana Montney Investor Event, May 17, 2016. 33
Veresen Midstream Commercial Structure Significant protections above simple fee-for-service on new Dawson construction Hythe/Steeprock Dawson Fee Model Take-or-pay through 2031 Fee-for-service through 2044 Fee set based on target rate…
Growth Platform With Significant Scale 2.5B of gross projects under construction expected to triple EBITDA Investment Gross Annualized Operating Segment Gross Invested Capital (MM) Multiple (x) EBITDA (MM) (1) Assets Hythe /…
Montney Regional Landscape Well positioned to secure 3rd party growth around existing footprint Veresen Midstream CREW Montney Infrastructure LEUCROTTA Veresen Midstream Pipelines New Dawson Projects CNRL TOURMALINE…
Jordan Cove LNG Betsy Spomer, EVP, President & Chief Executive Officer Jordan Cove LNG
Global LNG Market Outlook Market currently oversupplied but expected to balance by 2023 LNG Output vs. Total LNG Demand(1) Mtpa 135 mtpa of new supply needed to meet 470 mtpa 500 demand by 2030. This equates to 150 mtpa of…
Japan Contracted LNG Supply 25% of Japans long-term contracts expire between 2020 and 2025 Japan Contracted LNG Supply(1) METIs Best Mix of Energy Sources Plan(2) Mtpa Nuclear and renewables will struggle to reach METIs targets 90 by…
LNG Cost of Supply Curve US LNG exports are one of the lowest cost sources of supply in the world Estimated Breakeven LNG Pricing Range, Delivered at Terminal to Asia(1,2) US/MMBtu 20 16.70 14.70 15 13.60 13.20 10.20…
Abundant Gas Supply from Rockies and Western Canada Jordan Cove is competitive with all global supply alternatives into NE Asia 6 mtpa (1.0 Bcf/d) liquefaction design capacity on 400 acre site International Port of Coos Bay features…
Key Work Streams Marketing and permitting remain the keys to advancing Jordan Cove Marketing Permitting Reached significant milestones with signing of FERC denial on March 11 was not expected two premier shippers in the first half…
Jordan Coves strategic rationale Jordan Cove is competitive with all global supply alternatives into NE Asia Price competitive with Gulf of Mexico brownfield into Asia Right sized for current market conditions at 6 mtpa Executed and…
Counterparty Diversification and Contract Structures Diversified portfolio of counterparties and secure fee-based contract structures Percent of 2016G Distributable Cash Flow by Percent of 2016G Cash Flow(1) Counterparty and S&P Credit…
Funding Strategy Fully funded with no need to access equity or debt capital markets Illustrative Veresen Funding Outlook (Net of amounts funded with Veresen Midstream non-recourse debt) Majority of proceeds Jordan Power to…
Financial Position by Business(1) Appropriate leverage within each business Pipeline Midstream Veresen Proportionate Consolidation Metrics(2) Alliance Ruby AEGS Midstream Aux Sable Power Corporate Total H1 Annualized EBITDA(3) 312…
Anticipated Power Business Divestiture Timeline Transaction expected to close during the first half of 2017 August Announced intention to divest 2016 Power Business October Two-phase bid process expected to 2016 launch…
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