Skip to main content January 2018 Corporate Presentation – Inter Pipeline Ltd. | Shale Experts
Loading...
Pm

January 2018 Corporate Presentation – Inter Pipeline Ltd.

Inter Pipeline Ltd. · Jan 3, 2018 · 39 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. January 2018 Corporate Presentation – Inter Pipeline Ltd. – slide 1
    0
  2. January 2018 Corporate Presentation – Inter Pipeline Ltd. – slide 2
    INTER PIPELINE Operates world scale energy infrastructure assets Stable in an uncertain market with a strong balance sheet and investment grade credit rating Sustainable dividend profile with upside growth potential Well…
  3. January 2018 Corporate Presentation – Inter Pipeline Ltd. – slide 3
    WORLD SCALE ENERGY INFRASTRUCTURE ASSETS Oil Sands NGL Conventional Bulk Liquid Transportation Processing Oil Pipelines Storage 2017 September YTD EBITDA 52% 21% 18% 9% 2.3 million b/d of Over 240,000 b/d 3,900 km pipeline…
  4. January 2018 Corporate Presentation – Inter Pipeline Ltd. – slide 4
    AREAS OF OPERATION 2017 September YTD EBITDA 9% 91% Canada Europe SWEDEN DENMARK IRELAND ENGLAND GERMANY 4
  5. January 2018 Corporate Presentation – Inter Pipeline Ltd. – slide 5
    LOW RISK BUSINESS STRATEGY WELL DIVERSIFIED STABLE CASH FLOW Large-scale and 80% of EBITDA from strategically located cost of service and fee assets based contracts Capital-efficient growth DIVIDEND Majority investment…
  6. January 2018 Corporate Presentation – Inter Pipeline Ltd. – slide 6
    DIVIDEND GROWTH /Share 7.4% CAGR2013-2018F 1.68 1.63 1.57 1.49 1.32 1.18 1.06 0.97 0.91 0.84 0.85 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018F 7.2% CAGR 2008-2018F 2018F based on actual dividends to…
  7. January 2018 Corporate Presentation – Inter Pipeline Ltd. – slide 7
    DIVIDEND STABILITY Million 900 600 300 0 2011 2011 2012 2012 2013 2013 2014 2014 2015 2015 2016 2016 FFO Dividend FFO Dividend FFO Dividend FFO Dividend FFO Dividend FFO Dividend Oil Sands Transportation Conventional…
  8. January 2018 Corporate Presentation – Inter Pipeline Ltd. – slide 8
    RECENT DEVELOPMENTS Developing Canadas first integrated Propane Dehydrogenation (PDH) & Polypropylene (PP) complex for 3.5 billion 15th consecutive dividend increase to 1.68 per share annually Acquired the remaining 15% interest…
  9. January 2018 Corporate Presentation – Inter Pipeline Ltd. – slide 9
    2017 September YTD 52% EBITDA 9
  10. January 2018 Corporate Presentation – Inter Pipeline Ltd. – slide 10
    OIL SANDS TRANSPORTATION Three major oil sands IMPERIAL KEARL pipeline systems with AOSP HUSKY SUNRISE SUNCOR combined ultimate capacity of 4.6 million b/d AOC Corridor HANGINGSTONE JACOS / NEXEN HANGINGSTONE Cold Lake FCCL…
  11. January 2018 Corporate Presentation – Inter Pipeline Ltd. – slide 11
    CORRIDOR PIPELINE CAPACITY 000s b/d 1,400 1,400 1,200 1,000 POTENTIAL 935 3RD PARTY CAPACITY** 800 600 465 406 400 CONTRACTED 465 200 VOLUMES 0 Current Throughput* Installed Capacity Ultimate Capacity *YTD…
  12. January 2018 Corporate Presentation – Inter Pipeline Ltd. – slide 12
    COLD LAKE PIPELINE CAPACITY 000s b/d 1,900 1,800 2,000 AVAILABLE CAPACITY 645 1,600 1,400 90 14 1,200 500 1,000 800 650 600 CONTRACTED VOLUMES 1,255 400 200 0 Original Cold Lake FCCL CNR Kirby North & South Osum…
  13. January 2018 Corporate Presentation – Inter Pipeline Ltd. – slide 13
    POLARIS PIPELINE CAPACITY 000s b/d 1,300 800 1,300 AVAILABLE CAPACITY 755 700 600 10 7 5 30 24 500 120 400 350 300 CONTRACTED VOLUMES 545 200 100 0 FCCL Imperial Husky CNR Kirby Suncor JACOS AOC Ultimate Kearl…
  14. January 2018 Corporate Presentation – Inter Pipeline Ltd. – slide 14
    OVER-BUILD STRATEGY (000s b/d) Contracted Available Ultimate Cold Lake 1,255 645 1,900 Corridor 465 935* 1,400 Polaris 545 755 1,300 Total Capacity 2,265 2,335 4,600 Successfully completed an expansion of the Cold Lake and Polaris…
  15. January 2018 Corporate Presentation – Inter Pipeline Ltd. – slide 15
    ATTRACTIVE BOLT-ON PROJECT MULTIPLES Total Capital ( Million) 400 4.1x 6.0x 4 PROJECTS Over 580 million in announced 300 bolt-on oil sands connections 11 connections with an average 200 2.1x 4.0x EBITDA multiple of 3.2x 4…
  16. January 2018 Corporate Presentation – Inter Pipeline Ltd. – slide 16
    COMPETITIVE ADVANTAGE Greater Less Less Less flexibility to regulatory capital schedule accommodate risk risk risk small & large scale projects 16
  17. January 2018 Corporate Presentation – Inter Pipeline Ltd. – slide 17
    2017 September YTD 21% EBITDA 17
  18. January 2018 Corporate Presentation – Inter Pipeline Ltd. – slide 18
    NGL PROCESSING Pioneer I & II 40,000 b/d Capacity Large scale NGL infrastructure Three straddle plants strategically located on the Boreal Pipeline TransCanada Alberta System 43,000 b/d Capacity Two offgas plants that have…
  19. January 2018 Corporate Presentation – Inter Pipeline Ltd. – slide 19
    WILLIAMS CANADA ACQUISITION SUMMARY Acquired during a low period in the commodity cycle Price of 1.35 billion represents a 45% discount to original cost of 2.5 billion Contributed 85 million in EBITDA during YTD Q3 2017 compared to…
  20. January 2018 Corporate Presentation – Inter Pipeline Ltd. – slide 20
    OFFGAS PROCESSING, PDH & PP OVERVIEW Propane 1 Producers 2 Ethane- AECO Offgas Ethylene 3rd Party Mix Propane Redwater Offgas Boreal PDH PP Boreal Pipeline Olefinic Plants Pipeline Redwater Facility Polymer Facility…
  21. January 2018 Corporate Presentation – Inter Pipeline Ltd. – slide 21
    OFFGAS VOLUMES AND COMPOSITION 000s b/d Ethane-Ethylene Redwater Olefinic Fractionator Contract In Service 30 Product Composition* Ethane-ethylene 40% 25 Propane 29% Normal butane 8% 20 Polymer grade propylene 12% Alky feed…
  22. January 2018 Corporate Presentation – Inter Pipeline Ltd. – slide 22
    HEARTLAND PETROCHEMICAL COMPLEX Transformational growth opportunity Complex to produce polypropylene, a high- value and easy to transport plastic Expected to add 450 to 500 million of average annual EBITDA Accretive to future FFO…
  23. January 2018 Corporate Presentation – Inter Pipeline Ltd. – slide 23
    2017 September YTD 18% EBITDA 23
  24. January 2018 Corporate Presentation – Inter Pipeline Ltd. – slide 24
    CONVENTIONAL OIL PIPELINES 3,900 km of oil pipelines servicing over 100 producers 100% fee based business, excluding midstream marketing Strong production from Viking formation 10-year take or pay agreement on the Bow…
  25. January 2018 Corporate Presentation – Inter Pipeline Ltd. – slide 25
    CONVENTIONAL EBITDA Million 200 9.9% CAGR 2011-2016 150 100 50 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Oil Gathering Hardisty Midstream Marketing 25
  26. January 2018 Corporate Presentation – Inter Pipeline Ltd. – slide 26
    CONVENTIONAL THROUGHPUT 000s b/d 250 212 209 205 201 200 187 170 176 150 100 50 0 2011 2012 2013 2014 2015 2016 2017 Mid-Saskatchewan Bow River Central Alberta Q3 YTD 26
  27. January 2018 Corporate Presentation – Inter Pipeline Ltd. – slide 27
    2017 September YTD 9% EBITDA 27
  28. January 2018 Corporate Presentation – Inter Pipeline Ltd. – slide 28
    BULK LIQUID STORAGE 16 petroleum and petrochemical storage Gavle terminals SWEDEN Sodertalje Gothenburg Approximately 27 million Tyne DENMARK Asnaes barrels of storage capacity Malmo Seal Sands Stigsnaes Riverside Ensted…
  29. January 2018 Corporate Presentation – Inter Pipeline Ltd. – slide 29
    STRATEGIC DRIVERS Long-life infrastructure assets Strong organic and acquisition based investment potential Geographic diversification, mature markets 100% fee based cash flow Strong financial results despite low…
  30. January 2018 Corporate Presentation – Inter Pipeline Ltd. – slide 30
    CAPACITY UTILIZATION Storage (Million barrels) Utilization (%) 30 100% 24 80% 18 60% 12 40% 6 20% 0 0% Q3 2012 Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017 UK, Ireland & Germany Denmark Sweden Consolidated Utilization 30
  31. January 2018 Corporate Presentation – Inter Pipeline Ltd. – slide 31
    31
  32. January 2018 Corporate Presentation – Inter Pipeline Ltd. – slide 32
    FINANCIAL DISCIPLINE Total Recourse Debt* Consolidated Net Debt to Total Capitalization as at September 30, 2017 70% Covenant: Max 65% 60% 15% 50% 40% 30% 20% 85% 10% Fixed Rate Recourse Debt 0% Floating Rate Recourse…
  33. January 2018 Corporate Presentation – Inter Pipeline Ltd. – slide 33
    INTER PIPELINE CREDIT STRENGTH Oil Sands NGL Conventional Bulk Liquid Transportation Processing Oil Pipelines Storage (779 million) (435 million) (365 million) (246 million) 98% 95% 60% 30% 12 customers 20+ customers 100+…
  34. January 2018 Corporate Presentation – Inter Pipeline Ltd. – slide 34
    MTN MATURITY PROFILE Million 1,000 Weighted average: cost of debt of 3.6%; maturity of 9 years 800 600 400 200 0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2044 Manageable debt maturity profile limits…
  35. January 2018 Corporate Presentation – Inter Pipeline Ltd. – slide 35
    EBITDA BY BUSINESS SEGMENT Million 1,200 1,000 800 600 400 200 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Oil Sands Transportation Conventional Oil Pipelines Bulk Liquid Storage NGL Processing 35
  36. January 2018 Corporate Presentation – Inter Pipeline Ltd. – slide 36
    EBITDA BY CONTRACT TYPE 70% 70% 70% 60% 60% 60% 50% 50% 50% 40% 40% 40% 30% 30% 30% 20% 20% 20% 10% 10% 10% 0% 0% 0% 2011 2013 2015 2017 2011 2013 2015 2017 2011 2013 2015 2017 Q3 YTD Q3 YTD Q3 YTD Cost of Service Fee…
  37. January 2018 Corporate Presentation – Inter Pipeline Ltd. – slide 37
    CORPORATE SUSTAINABILITY Commitment to safety Zero lost time incidents Completed 36 in-line inspections covering +1,000km of pipeline 99.99% reliable delivery rate Commitment to the environment 2017 CDP participant Reduced CO2e…
  38. January 2018 Corporate Presentation – Inter Pipeline Ltd. – slide 38
    LOOKING FORWARD Solid track record of increasing shareholder value Continued focus on developing potential growth opportunities Cost of service contracts expected to continue to generate the majority of future cash flow Fee…
  39. January 2018 Corporate Presentation – Inter Pipeline Ltd. – slide 39
    CONTACT INFORMATION SUITE 3200, 215 2ND STREET SW CALGARY, ALBERTA T2P 1M4 PHONE: 1 866 716 7473 PHONE: (403) 290 6000 FAX: (403) 290 6090 WEB: INTERPIPELINE.COM INVESTORRELATIONSINTERPIPELINE.COM 39

From the store

Browse maps, data & reports in the Shale Experts store