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ENB Investment Community Presentation – Enbridge Inc.

Enbridge Inc. · Jun 5, 2019 · 41 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. ENB Investment Community Presentation – Enbridge Inc. – slide 1
    Enbridge Inc. (ENB) Investment Community Presentation June 5, 2019
  2. ENB Investment Community Presentation – Enbridge Inc. – slide 2
    Enbridge: A North American Bellwether Infrastructure Company 2019 EBITDA Outlook Enterprise Value (North American Midstream Companies) by business unit (US,B, Source: Factset, May 2019) 140 Natural 120 100 Gas 13B Liquids…
  3. ENB Investment Community Presentation – Enbridge Inc. – slide 3
    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…
  4. ENB Investment Community Presentation – Enbridge Inc. – slide 4
    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…
  5. ENB Investment Community Presentation – Enbridge Inc. – slide 5
    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…
  6. ENB Investment Community Presentation – Enbridge Inc. – slide 6
    Key Priorities for 2019 ENB Value Proposition 1 Achieve 2019 DCF guidance range of 4.30 - 4.60/share 2 Focus on Line 3 Replacement milestones 3 Advance priority access on Mainline 4 Extend secured growth Line 3 Construction 5…
  7. ENB Investment Community Presentation – Enbridge Inc. – slide 7
    Enterprise-wide Secured Growth Project Inventory Project Expected ISD Capital (B) AOC Lateral Acquisition In-service 0.3 CAD Stratton Ridge 2Q19 0.2 USD Generation Pipeline Acquisition 2H19 0.1 USD 2019 Hohe See Wind &…
  8. ENB Investment Community Presentation – Enbridge Inc. – slide 8
    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…
  9. ENB Investment Community Presentation – Enbridge Inc. – slide 9
    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…
  10. ENB Investment Community Presentation – Enbridge Inc. – slide 10
    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…
  11. ENB Investment Community Presentation – Enbridge Inc. – slide 11
    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…
  12. ENB Investment Community Presentation – Enbridge Inc. – slide 12
    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…
  13. ENB Investment Community Presentation – Enbridge Inc. – slide 13
    Appendix A Core Business Details
  14. ENB Investment Community Presentation – Enbridge Inc. – slide 14
    Liquids Pipelines
  15. ENB Investment Community Presentation – Enbridge Inc. – slide 15
    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…
  16. ENB Investment Community Presentation – Enbridge Inc. – slide 16
    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…
  17. ENB Investment Community Presentation – Enbridge Inc. – slide 17
    Mainline Contract Offering Design Considerations Incorporating feedback from producers (large & small), integrateds, refiners, marketers Single Transportation Service Agreement (TSA) that fulfills regulatory requirement for open and…
  18. ENB Investment Community Presentation – Enbridge Inc. – slide 18
    Mainline Optimization - 2019 2019: Additional Mainline Average Mainline Throughput Optimizations (ex-Gretna throughput MMbpd) 2,750 2,717 Edmonton 2,685 2,625 2,636 50- Record Hardisty 2,578 volumes Kerrobert 100 2,500 2,530 in…
  19. ENB Investment Community Presentation – Enbridge Inc. – slide 19
    Additional Long-Term Throughput Enhancements Ex-WCSB Egress +150 +300 +370 Southern System Lights Optimizations & Reversal L3 Enhancements Replacement Capacity 2015 2018 2023 Staged and achievable incremental throughput…
  20. ENB Investment Community Presentation – Enbridge Inc. – slide 20
    Line 3 Recent Disclosure Update Line 3 Replacement Project On June 3, 2019, the Minnesota Court of Appeals rendered a decision on the adequacy determination of the Final Environmental Impact Statement (FEIS) for the Line 3…
  21. ENB Investment Community Presentation – Enbridge Inc. – slide 21
    Line 3 Replacement Project Critical energy infrastructure replacement Edmonton Canadian segment mechanically complete Hardisty Wisconsin segment complete and in-service Kerrobert North Dakota regulatory and permitting complete…
  22. ENB Investment Community Presentation – Enbridge Inc. – slide 22
    Line 3 Minnesota Permitting Timeline* Minnesota Pollution Control Agency (MPCA) 401 Water Quality Certification Timetable TODAY OCT 18 NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Oct 30, 18 Nov 2018 Apr 15 Permit…
  23. ENB Investment Community Presentation – Enbridge Inc. – slide 23
    Mainline Optimization and Enhancement Opportunities Ex-WCSB Egress 3B 2020-21 Mainline Optimizations 2022+ Mainline Optimizations Southern Lights Reversal in opportunities Edmonton Edmonton Edmonton Hardisty Hardisty Hardisty…
  24. ENB Investment Community Presentation – Enbridge Inc. – slide 24
    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…
  25. ENB Investment Community Presentation – Enbridge Inc. – slide 25
    USGC - Export Development Opportunity Texas COLT Offshore Loading Terminal Direct full loading of VLCCs from Freeport, TX Superior connectivity to all key North American supply basins via Enbridge systems and others Genoa Strong…
  26. ENB Investment Community Presentation – Enbridge Inc. – slide 26
    Gas Transmission
  27. ENB Investment Community Presentation – Enbridge Inc. – slide 27
    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:…
  28. ENB Investment Community Presentation – Enbridge Inc. – slide 28
    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…
  29. ENB Investment Community Presentation – Enbridge Inc. – slide 29
    Rate Case Proceedings Texas Eastern: East Tennessee: Algonquin: Section 4 Rate Case filed Nov 2018 Nearing completion of Section 5 Rate Preparing for early stage rate discussions Potential for revenue enhancement with Case proceedings…
  30. ENB Investment Community Presentation – Enbridge Inc. – slide 30
    Potential Growth Opportunity Summary Focus on LNG Opportunities W. Canada Northeast & T-North and T-South expansions New England Alliance and Aux Sable expansion Enhance U.S. northeast opportunities connectivity between regional…
  31. ENB Investment Community Presentation – Enbridge Inc. – slide 31
    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…
  32. ENB Investment Community Presentation – Enbridge Inc. – slide 32
    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…
  33. ENB Investment Community Presentation – Enbridge Inc. – slide 33
    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…
  34. ENB Investment Community Presentation – Enbridge Inc. – slide 34
    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…
  35. ENB Investment Community Presentation – Enbridge Inc. – slide 35
    Utilities
  36. ENB Investment Community Presentation – Enbridge Inc. – slide 36
    Utilities Business Ontario Population Growth Forecast 18.5 14 million million Toronto 1998 2018 2020 2025 2030 2035 2040 Source: Ontario Ministry of Finance Largest volume and fastest growing franchise Infrastructure…
  37. ENB Investment Community Presentation – Enbridge Inc. – slide 37
    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…
  38. ENB Investment Community Presentation – Enbridge Inc. – slide 38
    Utility Growth Outlook Incentive Rate Structure Growth through Dawn to Parkway system community expansions expansion project 10% Expected range of OTTAWA ON Actual ROE 9% TORONTO NY 9% DAWN Allowed ROE MI HUB 8% Kirkwall…
  39. ENB Investment Community Presentation – Enbridge Inc. – slide 39
    Appendix B Financial Guidance
  40. ENB Investment Community Presentation – Enbridge Inc. – slide 40
    Financial Outlook1,2 2019 Distributable Cash Flow (DCF) Consolidated DCF/share (MM, except per share amounts) 2019 Guidance Adjusted EBITDA 13,000 Maintenance capital (1,200) 4.30 - 4.60 4.42 Current income taxes3 (400) 3.68…
  41. ENB Investment Community Presentation – Enbridge Inc. – slide 41
    Re-affirming 2019 Financial Outlook 2019 Distributable Cash Flow (Consolidated DCF/share ) 1 Q1 STRENGTH Energy Services 4.42 4.30 4.60 Colder weather in Utilities franchise area Q2-Q4 HEADWINDS: 3.68 Line 3 delay Integrity…

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