Enbridge Inc. (ENB) Investment Community Presentation April 2019
Recent Disclosure Update Line 3 Replacement Project On March 1, 2019, the State of Minnesota provided a definitive timeline for reviewing and issuing its environmental permits This new permitting timeline pushes out the Companys…
Enbridge: A North American Bellwether Infrastructure Company 2019 EBITDA Outlook Enterprise Value (North American Midstream Companies) by business unit (US,B, Source: Factset, Apr 2019) 140 Natural 120 100 Gas 13B Liquids 80…
Three Core Businesses 50% 30% 15% 2019e EBITDA 2019e EBITDA 2019e EBITDA Liquids Pipelines Gas Transmission Gas Utilities Worlds longest and most sophisticated Connects key North American supply Largest natural gas utility in…
Enbridges Low Risk Business Model 2019e EBITDA Resiliency in All Market Conditions Regulated cost of service contracts 14,000 100 WTI Long term contracts 12,000 98% 75 10,000 Interest rate / inflation protection 8,000…
Major 2018 Accomplishments Priorities Actions 1 Deliver strong results Record DCF/share and EPS performance in 2018 2 Focus on low risk pipeline-utility model 8B of non-core asset sales 3 Accelerate de-leveraging 4.7x…
2019+ Strategic Priorities Continuing Priorities Reliable, growing cash flow and dividends Low risk pipeline-utility model Strong investment grade balance sheet Streamlined business Strong project execution Extend growth Areas…
Post 2020 Future Growth Opportunities 5-6B annual self-funding capability 2B 2-3B 1B Liquids Gas Gas Pipelines Transmission Utilities Mainline system optimizations USGC market connections Customer additions and enhancements US…
Financial Strength & Flexibility Consolidated DEBT to EBITDA1 Enbridge Inc. Sr. Unsecured Debt Ratings2 6.0x 5.5x Standard & Poors BBB+ Target Range: stable 4.5x to comfortably below 5.0x 5.0x Fitch BBB+ stable 4.5x 4.0x DBRS…
Growth Outlook Summary Strong organic growth opportunities from 3 core businesses Through 2020 Post 2020 5-7% Low risk business model Self funded equity Prudent leverage levels 10% Dividend per share DCF per share growth…
Dividend Growth Track Record 24 years of sustained dividend increases 10% 3 Year CAGR 10% dividend increase declared for 2019 (2018-2020) 10% 3-year dividend CAGR outlook, 2018-2020 11% Target payout ratio of below 65% DCF 24 Year…
Enbridges Value Proposition Leading energy infrastructure position Low-risk pipeline/utility business model Strong investment grade credit profile 10% dividend growth through 2020 5-7% DCF growth beyond 2020 Long-life…
Appendix A Core Business Details
Liquids Pipelines
Liquids Pipelines System WCSB Oil Supply (kbpd) 70% 6,000 CAPP 2018 Supply Forecast of total oil sands production can be transported on the 5,000 1 Regional system to Edmonton and Hardisty 4,000 Oil sands heavy MMb/d Growth…
Liquids Pipelines - Strategic Growth Prospects Critical link from WCSB to premium Midwest and USGC refining markets Leverage existing footprint to expand crude export capacity and develop integrated USGC platform Mainline toll…
Mainline Contract Offering Annual Mainline Volume (ex-Gretna throughput MMbpd) Key Features of Contract Offering 2,685 Priority Access for contracted volume 2,625 2,636 Contract term up to 20 years 2,578 2,530 2,405 Contracts…
Interim Mainline Optimizations 2019/2020 Ex-WCSB Egress Bakken Pipeline (BPEP) Delivery Reduction Edmonton Reduce deliveries into Cromer to increase available capacity for WCSB egress Hardisty 50- Line 3 Replacement Canada Kerrobert…
Line 3 Replacement Project Critical energy infrastructure replacement with state of the art pipeline technology, supporting: Edmonton environmental protection Hardisty reliable local energy supply Kerrobert low energy costs jobs…
Minnesota L3R Execution Timeline Dec 2017: FEIS Adequacy Determination by MPUC PUC Review & Approval Jun 2018: Certificate of Need / Route Permit approval by MPUC Permitting Phase Aug 2018: Easement Agreement with Fond Du Lac…
Market Access - Downstream Expansion Opportunities Mainline optimizations provide an Hardisty opportunity to increase market access pipelines by up to 350kbpd Flanagan South expansion of 250kbpd along with corresponding Seaway…
USGC - Export Development Opportunity Texas COLT Offshore Loading Terminal Partner: Oiltanking Direct full loading of VLCCs from Freeport, TX Superior connectivity to all key North American supply basins via Enbridge systems and…
Gas Transmission
Gas Transmission System Natural Gas Demand by Sector (N. America, Bcf/d) Canadian Gas Transmission & Midstream LNG Exports Mexico Exports Other Power Gen Industrial Residential/ Commercial 2018 2020 2025 2030 Source:…
Gas Transmission - Strategic Growth Prospects Premier demand-pull driven asset base serving key regional markets Positioned for significant growth in 4 key regions 1-2% Rate cases per year Western base business System…
Northeast & New England - Potential Growth Northeast / New England Continued commercial / residential load growth Proven approach to bring affordable natural gas to the region Power Generation Market Incremental demand market will…
Southeast Markets - Potential Growth Southeast Markets GA Generating capacity in Florida is expected MS to grow by 15+% by 2026 AL Majority of this growth is projected to be Power Generation natural gas-fired generation…
Gulf Coast Markets - Potential Growth Exports to Gulf Coast & Mexico Texas Eastern, Brazoria Interconnector MS Gas and Valley Crossing assets well connected to deliver to Gulf Coast LNG and Mexico markets Permian LA Permian TX…
Western Canada - Potential Growth Western Canada T-North Growing supply presents many Montney / Duvernay infrastructure opportunities to support Expansions Montney and Duvernay: Pipeline expansions: T-North, T-South, AB Alliance…
Utilities
Utilities Business Ontario Population Growth Forecast 18.5 14 million million Toronto 1998 2018 2020 2025 2030 2035 2040 Largest volume and fastest growing franchise Infrastructure positioned to serve growing supply basis…
Utilities - Strategic Growth Prospects Largest and fastest growing gas utility franchise in North America Steady annual growth opportunities through new customer additions and system expansions Amalgamation synergies 1-2% Cost…
Utilities - Growth Driven by Rate Base Expansion Combined Rate Base Growth (C,B) 12 10 8 Union Gas 6 4 2 EGD OTTAWA 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Utility ROE 10% Expected range of Actual ROE DAWN…
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