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4Q 2017 Earnings Results – Enbridge Inc.

Enbridge Inc. · May 16, 2018 · 38 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. 4Q 2017 Earnings Results – Enbridge Inc. – slide 1
    Fourth Quarter 2017 Financial Results and Business Update February 16, 2018 Al Monaco, Chief Executive Officer John Whelen, Chief Financial Officer
  2. 4Q 2017 Earnings Results – Enbridge Inc. – slide 2
    Agenda 2017 Recap Strategic & Business Update Financial Results Review 2018 Priorities Line 3 Replacement 3
  3. 4Q 2017 Earnings Results – Enbridge Inc. – slide 3
    2017 Recap Closed Spectra acquisition Achieved Year 1 synergy target 12B projects put in service Raised 14B+ of capital Strong operational and safety performance Achieved DCF/ share within guidance range (3.68/share)…
  4. 4Q 2017 Earnings Results – Enbridge Inc. – slide 4
    2018 2020 Strategic Priorities 1. Move to pure regulated pipelines/utility model Focus on crown jewel businesses De-emphasize, sell, monetize non-core assets 2. Accelerate de-leveraging 5.0x Debt/EBITDA by end of 2018 3. Deliver…
  5. 4Q 2017 Earnings Results – Enbridge Inc. – slide 5
    Economic Environment Positive energy fundamentals Interest Rates Robust WCSB supply outlook Fixed Rate / Total Debt2 85% Rising North American demand 2018 Planned term debt 65% hedge position Tax reform 2018 Interest rate…
  6. 4Q 2017 Earnings Results – Enbridge Inc. – slide 6
    Mainline Performance and 2018 Outlook Dec 2017: Average Mainline Throughput 2,733kbpd 3,000 Effective Annual Since 2014, expansions and optimization have Ex-Gretna Deliveries (KBPD) 2,500 Capacity Budget added significant…
  7. 4Q 2017 Earnings Results – Enbridge Inc. – slide 7
    Mainline Competitive Positioning beyond 2020 Mainline attributes: Market reach 1.9 mmbpd Highly competitive tolls Operating flexibility Sole sourced supply Chicago Netback WCSB production growth outlook remains strong Chicago…
  8. 4Q 2017 Earnings Results – Enbridge Inc. – slide 8
    Projects Brought into Service in 2017 Project ISD Capital (B) Regional Oil Sands Optimization Athabasca Twin 1Q17 1.3 CAD Jackfish Lake 1Q17 0.2 CAD Norlite 2Q17 0.9 CAD Bakken Pipeline System 2Q17 1.5 USD Sabal Trail 2Q17 1.6 USD…
  9. 4Q 2017 Earnings Results – Enbridge Inc. – slide 9
    Enterprise-wide Secured Growth Projects Capital Capital Project Expected ISD (CB) Project Expected ISD (CB) High Pine 1Q18 0.4 CAD Stratton Ridge 1Q19 0.2 USD Stampede Lateral 1Q18 0.2 USD PennEast 2H19 0.3 USD Wyndwood 1Q18 0.2…
  10. 4Q 2017 Earnings Results – Enbridge Inc. – slide 10
    Project Execution Highlights Natural Gas: Natural Gas: Renewables: NEXUS Valley Crossing Rampion Texas Eastern TX Nueces Hub Rampion Valley Crossing Pipeline Offshore wind assets Under construction Mexico In…
  11. 4Q 2017 Earnings Results – Enbridge Inc. – slide 11
    Line 3 Replacement Project Update Critical infrastructure replacement project Edmonton 2017 Canadian construction program completed Hardisty on time and on budget Kerrobert 400km of pipeline laid Regina In service Construction…
  12. 4Q 2017 Earnings Results – Enbridge Inc. – slide 12
    Sponsored Vehicle Update SEP IDR Elimination Rationale: SEP Equity Capital Structure (2018e) Proportion of distributed cash flows Lower SEP cost of capital to be more competitive for future growth 18% 17% Aligns interest of all…
  13. 4Q 2017 Earnings Results – Enbridge Inc. – slide 13
    2017 Consolidated Financial Results Summary Adjusted EBITDA ( millions) DCF ( millions, except per share amounts) 3 months ended Dec 31 12 months ended Dec 31 3 months ended Dec 31 12 months ended Dec 31 10,317 5,614 6,902…
  14. 4Q 2017 Earnings Results – Enbridge Inc. – slide 14
    Q4 and FY 2017 Consolidated Adjusted EBITDA Variance (C Millions) Q4 FY 2016 Consolidated Adjusted EBITDA 1,762 6,902 EBIDTA Drivers: + Higher throughput on Mainline System Liquids Pipelines +127 +157 + New Projects placed into…
  15. 4Q 2017 Earnings Results – Enbridge Inc. – slide 15
    Q4 2017 and FY 2017 Consolidated DCF Distributable Cash Flow Q4 2017 FY 2017 Consolidated Adjusted EBITDA 2,963 10,317 Maintenance Capital (345) (1,261) Financing costs (749) (2,751) Current income tax (49) (154) Distributions to…
  16. 4Q 2017 Earnings Results – Enbridge Inc. – slide 16
    US Tax Reform Impacts No material economic impact within 2018 2020 planning horizon Q4 2017 Consolidated GAAP Reporting Impacts Re-measurement of deferred tax liability for US federal tax rate reduction and other measurable impacts…
  17. 4Q 2017 Earnings Results – Enbridge Inc. – slide 17
    Re-affirming 2018 Guidance Consolidated EBITDA (MM) 2018 EBITDA Guidance Growth Drivers: 2017 2018e 2018e vs 2017 12,500 (MM) + New projects placed into service Liquids Pipelines 5,484 6,350 + Capacity optimization and supply…
  18. 4Q 2017 Earnings Results – Enbridge Inc. – slide 18
    Spectra Energy Partners (SEP): Q4 2017 IDR elimination positions SEP for extended growth Financial Results (US millions, Q4 2016 FY 2016 FY 2017 FY 2018 except per share amounts) Q4 2017 Variance FY 2017 Variance Guidance Guidance…
  19. 4Q 2017 Earnings Results – Enbridge Inc. – slide 19
    Enbridge Energy Partners (EEP): Q4 2017 Stable financial results reflect enhanced investor value proposition Financial Results (US millions, Q4 2016 FY 2016 FY 2017 FY 2018 except per share amounts) Q4 2017 Variance FY 2017…
  20. 4Q 2017 Earnings Results – Enbridge Inc. – slide 20
    ENF & Fund Group: Q4 2017 New projects and strong mainline volume drive cash flow growth Financial Results (US millions, Q4 2016 FY 2016 FY 2017 FY 2018 except per share amounts) Q4 2017 Variance FY 2017 Variance Guidance Guidance…
  21. 4Q 2017 Earnings Results – Enbridge Inc. – slide 21
    Funding Plan Update Consolidated DEBT to EBITDA 2018 2020 Funding Plan*(C billions) 8 45 6 Target: 5.0x 40 Optional asset sales 4 35 2 DRIP/ 30 13 Optional hybrid securities / 0 Optional SV Equity 2015 2016 2017 2018e…
  22. 4Q 2017 Earnings Results – Enbridge Inc. – slide 22
    Wrap Up 2017 was a transformational year Well diversified, best in class North American energy infrastructure assets Strong outlook Fundamentals supportive Secured growth projects Strategic plan in place Monetize non-core…
  23. 4Q 2017 Earnings Results – Enbridge Inc. – slide 23
    Q&A
  24. 4Q 2017 Earnings Results – Enbridge Inc. – slide 24
    Enbridge Income Fund Holdings Inc. Fourth Quarter 2017 Supplemental Slides Investor Relations Nafeesa Kassam 403-266-8325 nafeesa.kassamenbridge.com
  25. 4Q 2017 Earnings Results – Enbridge Inc. – slide 25
    Fund Group: Distributable Cash Flow (C Millions) 4Q16 4Q17 Liquids Pipelines 507 599 Gas Pipelines 40 56 Green Power 62 71 Eliminations and Other 15 22 Adjusted EBITDA 624 748 Cash distributions received in excess of equity…
  26. 4Q 2017 Earnings Results – Enbridge Inc. – slide 26
    Fund Group: 2017e-2020e Outlook Distributable Cash Flow 2018e 2019e 2020e EBITDA Growth Drivers EIPLP Adjusted EBITDA 3,550 3,650 4,350 Liquids Pipelines ++ Maintenance capital (80) (85) (85) Current income taxes (230) (300) (450)…
  27. 4Q 2017 Earnings Results – Enbridge Inc. – slide 27
    Fund Group: Key Balance Sheets Metrics & Funding Progress November 2017 12/31/17 0.7B Consolidated Fund Group Leverage 40.5% ENF common share offering Consolidated Fund Group Debt/EBITDA 5.3x Enbridge Income Fund Credit Ratings Baa3 /…
  28. 4Q 2017 Earnings Results – Enbridge Inc. – slide 28
    Significant Dividend Income Dividend per Share Growth Beyond 2020 2015 2020e Low cost, phased expansions of 3.00 the Mainline 2.50 Alliance pipeline expansion 2.00 2.26 Expression of interest underway 2.05 1.87 Right of first offer…
  29. 4Q 2017 Earnings Results – Enbridge Inc. – slide 29
    Investor Value Proposition Premier Canadian Energy Infrastructure Income Investment Outstanding Low risk Visible growth Strong sponsor asset footprint business model High quality, strategically Minimal commodity price 10% annual…
  30. 4Q 2017 Earnings Results – Enbridge Inc. – slide 30
    Spectra Energy Partners Fourth Quarter 2017 Supplemental Slides Investor Relations Roni Cappadonna 713-627-4778 Roni.Cappadonnaenbridge.com
  31. 4Q 2017 Earnings Results – Enbridge Inc. – slide 31
    Spectra Energy Partners (SEP): Ongoing Distributable Cash Flow (US Millions) 4Q16 4Q17 US Transmission 466 507 Liquids 63 60 Over 10 years Other (19) (35) Ongoing EBITDA 510 532 ADD: of consecutive quarterly Earnings from equity…
  32. 4Q 2017 Earnings Results – Enbridge Inc. – slide 32
    Spectra Energy Partners: Key Balance Sheets Metrics 12/31/17 Total Debt 8.5B Financial Covenant Metrics(1) 4.1x Debt/EBITDA Credit Ratings(2) Baa2 / BBB+ / BBB Available Liquidity 0.4B (1) Calculated in accordance with the credit…
  33. 4Q 2017 Earnings Results – Enbridge Inc. – slide 33
    Projects in Execution Continue to pursue development projects In-Service Counterparties Est. CapEx Date (USD MM) Bayway Lateral 4Q17 30 NEXUS(1) 3Q18 1,300 2018 TEAL 3Q18 200 Atlantic Bridge(2) 4Q18 500 STEP 4Q18 130…
  34. 4Q 2017 Earnings Results – Enbridge Inc. – slide 34
    Investor Value Proposition Stable. Disciplined. Reliable. We go where the lights are connecting diverse supply basins with regional demand markets last mile competitive advantage Attractive Stable Outstanding Prudent financial…
  35. 4Q 2017 Earnings Results – Enbridge Inc. – slide 35
    Enbridge Energy Partners Fourth Quarter 2017 Supplemental Slides Investor Relations Roni Cappadonna 713-627-4778 Roni.Cappadonnaenbridge.com
  36. 4Q 2017 Earnings Results – Enbridge Inc. – slide 36
    EEP Unit Structure as of December 31, 2017 (Millions of units) Unit Class(1) ENB(5) Public TOTAL Cash Paying LP units(2) A 110.8 215.7 326.5 B 7.8 - 7.8 E 18.1 - 18.1 EEQ PIK Shares(4) 10.5 79.3 89.8 Incentive units Class F(6) -…
  37. 4Q 2017 Earnings Results – Enbridge Inc. – slide 37
    Low-Risk Utility-Like Business Reliable Business Model Provides Highly Predictable Cash Flows Investment Grade Direct Commodity Stable Business Exposure (CFaR)(2) Customers 96%…
  38. 4Q 2017 Earnings Results – Enbridge Inc. – slide 38
    Investor Value Proposition Attractive long term risk-return proposition Low risk, pure-play liquids pipeline MLP provides attractive risk-adjusted returns for unitholders Pure-play liquids Low risk Prudent financial Moderate…

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