Enbridge Inc. Investment Community Presentation September 2018
North Americas Leading Energy Infrastructure Company 2018 EBITDA Outlook Spectra Energy acquisition transitioned by business unit Gas Utilities Enbridge into a diversified liquids and Power natural gas infrastructure company 12.5B…
Executing on our 2018-2020 Strategic Priorities Priorities YTD Actions 1. Move to pure regulated pipelines/ utility model 7.5B of non-core asset sales announced; original target 3B for 2018 2. Accelerate de-leveraging On track…
Strategic Priority 1: Move to Pure Regulated Pipeline & Utility Model 7.5B of Non-Core Asset Sales Midcoast G&P Business Renewables Power Assets Canadian G&P Business 100% interest in Texas and 49% interest in all onshore…
Strategic Priority 2: Accelerate De-leveraging Funding Plan Execution 2018 2020 Funding Plan1(C billions) Financing Flexibility 35 Optional: More than sufficient capital raised to Increased 2019 & 2020 DRIP 30 Financing Hybrid…
Strategic Priority 2: Accelerate De-leveraging Strengthening Credit Metrics Consolidated Debt to EBITDA Outlook1 8.0x Strengthening credit metrics as industry leading growth capital 6.0x spend moderates and new Long Term Target:…
Strategic Priority 3: Deliver Reliable Cash Flow & Dividend Growth Core Businesses Stable Through Commodity Cycles Pro-forma Historical EBITDA*(C Million) Stable and predictable cash flow 3,000 High asset utilization rates…
Strategic Priority 3: Deliver Reliable Cash Flow & Dividend Growth Record Financial Performance in first half 2018 Historical DCF/share Historical EPS DCF/share and EPS growth trend resuming in 2018 after temporary dilution from…
Strategic Priority 3: Deliver Reliable Cash Flow & Dividend Growth Line 3 Replacement Project Update Critical 9B infrastructure replacement project Canadian construction program well underway 400 km of pipeline now laid Wisconsin…
Strategic Priority 3: Deliver Reliable Cash Flow & Dividend Growth Enterprise-wide Secured Growth Project Inventory Capital Capital Project Expected ISD (B) Project Expected ISD (B) High Pine In service 0.4 CAD Stratton Ridge 1H19…
Strategic Priority 3: Deliver Reliable Cash Flow & Dividend Growth Dividend Growth Outlook 22 years of sustained dividend increases 10% 10% dividend growth in 2018 3 Year CAGR 10% 3-year CAGR, 2018-2020 Conservative payout ratio of…
Strategic Priority 4: Streamline the Business Definitive agreements reached with Sponsored Vehicles Benefits for ENB Shareholders Current Potential Simplifies corporate & capital structure Structure* Future Structure Increased…
Strategic Priority 4: Streamline the Business Simplification Transactions - Targeted Timelines Prepare & File SEC Review & Written Consent Transaction Draft Registration Statement (S-4) Effectiveness of S-4 Process Closing…
Strategic Priority 4: Streamline the Business Key Terms of the Restructuring Final SEP: 1.111 Enbridge common shares for each common unit of SEP, which represents a 9.8% increase to the exchange Consideration ratio offered on May 17,…
Strategic Priority 5: Extend Growth Beyond 2020 Post-2020 Growth Potential Liquids Gas Offshore Capital Allocation Considerations Pipelines & Transmission Gas Utilities Renewables Terminals & Storage Competitive advantage…
Summary 2017 was a transformational year Spectra Energy transaction successfully diversified the business 2018 - 2020 Strategic Plan in execution 7.5B of non-core asset sales Financial flexibility Accelerate de-leveraging…
Liquids Pipelines Appendix
North Americas premier crude oil infrastructure portfolio 70% Largest crude oil pipeline network in the world of total oil sands production can be transported on the Regional system to Edmonton and Hardisty 27,600 km of pipe serving…
Large, Stable Contributor to Enbridge EBITDA 2018e EBITDA 2018e LP EBITDA by Business 4% Other Highly Contracted Enbridge 4% 3% Southern Lights Bakken System Long Term Take-or-Pay Common carrier with indexed rate*; Long Term…
Canadian Oil Sands Positioned for Steady, Longer Term Growth Canadian Oil Sands Supply Forecasts* (KBPD) 6,000 NEB Expected continued growth in the oil sands 5,000 CAPP supports Enbridge systems upstream, mainline and market access…
Enbridge System Likely to be at Maximum Capacity Mainline Volume Outlook Ex-Gretna Deliveries (KBPD) Focused on maximizing throughput and Line 3 3500 in-service operating efficiencies Alberta 2H19 Clipper 1H18 throughput up 4% from…
Export capacity picture remains unclear post 2021 Enbridge Mainline Expected to Remain Highly Utilized WCSB Pipeline Utilization Scenarios Post-2021 One New Pipeline Scenario (KBPD) Two New Pipelines Scenario (KBPD) 6,000 6,000 2018…
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…
Low cost, highly executable, staged expansions to match supply growth Mainline Expansion Opportunities Hardisty Incremental Capacity 2019 Capacity (KBPD) +450 kbpd Mainline System DRA Optimization +75 expansion capability BEP Idle*…
Other Development Opportunities Oil Sands System DAPL Expansion Express-Platte 1-3B Hardisty in opportunities BAKKEN Express DAPL PADD IV Platte Wood River/ Patoka Patoka Well positioned in oil sands to Bakken supply…
New Platform Development Opportunities Permian Strategy Gray Oak USGC Strategy Cushing PERMIAN Mt Belvieu Mt 2-3B in opportunities Belvieu Freeport Freeport Objective: Expand liquids footprint into Permian Basin…
Gas Transmission Appendix
Premier Gas Transmission Footprint Canadian Gas Transmission & Midstream Gas Transmission Value Proposition Unparalleled asset footprint Safe, reliable operations Connecting diverse supply basins with growing demand markets…
Strong, Growing & Stable Contributor to Enbridge EBITDA 2018e EBITDA Enbridge Transmission business predominantly Other 4% Gas Utilities 13% Gas drives GTM earnings & Power Transmission 85% Significant contribution to stable,…
Solid Gas Transmission Base GTM Reservation Revenue (Based on revenues for 12 months ended 12/31/17) 98% 97% 99% 97% 99.5% 94% 95% 97% 94% 92% 72% Achieved Peak Delivery N/A Days in 2017 Average Contract 9 12 8 8 5 8 25 17…
N. American Natural Gas Demand Grows & Diversifies Natural Gas Demand Growth by Region NA Natural Gas Demand by Sector (Bcf/d increases by 2035) (Bcf/d) 140 120 LNG Exports W. Canada +3.5 E. Canada Mexico Exports +0.6 100…
Natural Gas Generation Supports Growing Demand ISO-NE winter stats natural-gas-fired generation at risk of not being able to get fuel when pipelines are constrained: Natural gas generating capacity more than 4,000MW will increase…
Development opportunities in next 5 years Northeast & New England Northeast / New England Demand continues to increase Solution needed to bring affordable gas to the region New England BOSTON Philadelphia Market Opportunities…
Development opportunities in next 5 years Southeast Markets Southeast Markets Natural gas power generation GA MS - Coal-to-gas conversions - Increase in Florida demand AL Power generation opportunities FL NOLA ORLANDO…
Development opportunities in next 5 years Gulf Coast Markets Gulf Coast Epicenter of demand for LNG and Mexico exports Permian MS Permian LA TX DCP offers Permian solutions to producers NOLA Offshore US Gulf Coast MT BELVIEU…
Development opportunities in next 5 years Western Canada Western Canada Montney / Duvernay Producers looking for egress solutions Expansions Alliance T-South AB NGL transmission opportunities BC Montney/Duvernay expansions LNG…
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