Enbridge Inc. Investment Community Presentation Barclays Energy Conference - September 6, 2017 John Whelen, EVP & CFO
Enbridge A Must-own Investment 2016 Pro-forma EBIT Leading diversified energy infrastructure position in North America Gas Transmission & Midstream Liquids Low risk business profile with minimal volume and commodity exposure Gas…
Low Risk Business Model Supports stable and predictable cash flows Low Risk Investment Grade Business Model Customers Stable, Predictable Results: Guidance vs Actual (/share) 3.00 4.50 4.00 2.50 96% 93% 3.50 2.00 3.00 2.50…
Key Corporate Priorities 6 leading platforms Safety & operational reliability Focus on optimizing returns Disciplined capital allocation Low risk commercial models Efficiency and effectiveness Visible dividend growth Balance sheet…
Liquids Pipelines Businesses Diversified low risk asset portfolio 2016 Pro Forma LP EBIT by Business Liquids Pipelines 100% 5% Other Highly Contracted 50% 4% Southern Lights Pipeline Long Term Take or Pay 90% 5% Common carrier…
Advancing Line 3 Replacement Integrity project providing increased system capacity Beginning construction on certain segments in Line 3 Replacement Canada and Wisconsin Edmonton Hardisty Updated capital costs of C5.3B and US2.9B…
Gas Transmission & Midstream Businesses Critical infrastructure connecting growing supply to key markets Gas Transmission Connecting to key demand pull & Midstream markets: US Northeast, US 35% Southeast, US Gulf Coast Strategic…
Gas Distribution Utility Businesses Key element of Enbridges low risk business profile ON Largest and best situated gas distribution franchises in Canada Highly valued asset base underpinned QC by regulated, low risk business model…
Renewable Power Business Platform aligns with Enbridges strategy and value proposition Renewable Power Generation Footprint (Net MWs, Operational Assets) 2,000 1,000 0 2005 2010 Current One of the largest wind and solar…
Offshore Wind Power Generation Platform 1,000 MW low risk offshore wind capacity secured and under development Enbridge Offshore Wind Projects Capital Investment (C, Billions) 9 Development 7.4B 6 4.5B Secured 3 2.9B…
Highly Transparent, Secured Growth Portfolio 31B of diversified low risk projects drives significant near term cash flow Project Expected ISD Capital (CB) Project Expected ISD Capital (CB) Regional Oil Sands Optimization, Wynwood 1H18…
Recently Secured Growth Projects 3.6 billion of attractive organic expansions Hohe See Offshore Wind & Spruce Ridge: 0.5B T-South Expansion: 1.0B Expansion: 2.1B DENMARK BC Station 2 Aitkin Creek Plant BC Hohe See McMahon Hohe…
Financial Strength Prudent funding and balance sheet management Metric Long Term Target Consolidated Pro Forma Debt to EBITDA End of year Credit Ratings Strong, Investment Grade 6.9x Dividend Payout 50-60% ACFFO 6.2x 5.0x FFO /…
Merger Integration Update Synergy capture on track Synergy Targets Forecast annual run rate synergies by 2019 Stream CAD MM Supply chain optimization Cost 540 Tax Other costs Tax 260 800Million Timing 2017 2018 2019 Cost…
Long Term Dividend Growth Outlook 10-12% CAGR through 2024 Dividend / Share Outlook 15% dividend increase in 2017 10-12% annual dividend growth (2017-2024) Conservative payout ratio of 50% - 60% Dividend growth beyond 2019…
Value Proposition: Premium Shareholder Returns at Low Risk 22 Years of Dividend Increases +15% +14% Strong, Organic 11% +33% 22 Year CAGR Growth 1996 2017e ENB Total Shareholder Return Enbridge 17% Superior, Steady &…
Q&A
APPENDICES
Mainline Potential Future Expansions Low cost, highly executable, staged expansions to match supply Incremental Capacity 2019 Capacity (KBPD) +500 System DRA Optimization +75 kbpd BEP Idle* +100 Incremental Capacity 2019+ Superior…
Project Execution Select project updates Liquids: AB Clipper (L67) Natural Gas: NEXUS Natural Gas: Valley Crossing TX Texas Eastern Nueces Valley Crossing Pipeline Brownsville Mexico Amended EIS issued Commercial…
Enterprise-Wide Funding Plan Significant funding activities in Q2 bolsters balance sheet and enhances liquidity Enbridge Financing Execution Enbridge Group Funding Requirements C Billion 1 YTD 2017 3 Years (2017e 2019e) Equity…
Financial Guidance Affirmed Drivers of accelerated ACFFO growth through 2H17 Mainline volumes strengthen Consolidated FX hedging program 100% 1.20 Ex-Gretna (MMbpd) 80% Hedge % 75% 75% 1.15 Hedge Rate 2.6 2.4 50% 1.10 25% 1.05…
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