Strategic Overview Russ Girling President and Chief Executive Officer
Our long-term success is driven by our fundamental belief that Global energy demand, including the demand for natural gas and oil, will continue to grow Our proven, low-risk business model will produce solid results during all phases…
Proven capital allocation framework delivers results 40% Critical energy infrastructure assets generate stable, long-term cash flow streams 60% Growing dividends Disciplined investment in supported by strong complementary…
Invested 100 billion in three core businesses since 2000 2000: 20 billion total assets 2019: 100 billion totalassets *Comparable EBITDA is a non-GAAP measure. See the forward looking information and non-GAAP measures slide at the…
Investment has created significant value Dollars Dollars 7% 6% CAGR CAGR Substantial growth in earnings and cash flow per share *Comparable earnings per common share and comparable funds generated from operations per common…
Low-risk business model has consistently produced results Dollars MLP Oil Supported by distress pric e Strong business fundamentals collapse Shale Regulated assets Financial crisis revolution Long-term contracts IPP downfall…
Nineteen consecutive years of common share dividend increases 7% CAGR Supported by growth in earnings and cash flow and strong coverage ratios
Performance has resulted in significant share price appreciation Dollars Common share price - TSX 2019 14 per cent average annual total shareholder return since 2000 Source: FactSet data from January 1, 2000 to October 31, 2019
Superior total shareholder return Per cent 1126% 223% 204% 2019 Outperforming broader market Source: FactSet data from January 1, 2000 to October 31, 2019
A leading North American energy infrastructure company One of North Americas largest natural gas pipeline networks 92,600 km (57,500 mi) of pipeline 653 Bcf of storage capacity 23 Bcf/d; 25% of continental demand Premier liquids…
Major 2019 Accomplishments Generated record financial results through the first nine months Comparable earnings were 3.11 per share, up 10 per cent Comparable funds generated from operations of 5.3 billion, up 14 percent Advanced 30…
Six key strategic priorities Deliver Maximize Execute Advance Cultivate Maintain energy safely value of our 30 billion over 20 billion a portfolio of our financial and reliably, 100 billion secured capital of projects additional…
E S G Environmental, Social and Governance commitment Safety and reliability are critical priorities Operating objectives, targets and results Zero is real Long history of working collaboratively with stakeholders Customers,…
E S G Delivering the energy people need, every day Investing over 1 billion annually in pipeline integrity Monitoring pipelines 24 hours a day from control centres Conducting over 100 emergency response training exercises each…
Global energy demand forecast to grow through 2040 *mtoe Oil Natural Gas Coal Renewables** Nuclear Solid Biomass 17 25 40 17 25 40 17 25 40 17 25 40 17 25 40 17 25 40 Over half of global demand fulfilled by oil and natural gas…
North American industry fundamentals through 2040 North American Natural Gas Demand North American Crude OilProduction, North American Power Capacity, and LNG Exports, 2015 and2040* 2015 and 2040* 2015 and 2040* Bcf/d MMb/d GW…
Asset footprint provides a strong competitive advantage Canadian Mainline is a critical NGTL System is uniquely conduit to eastern markets positioned over 924 Tcf of WCSB natural gas resources Bruce Power generates 30% of Ontarios…
Line of sight to over 50 billion of growth opportunities Natural Gas Pipelines Liquids Pipelines Power and Storage NGTL expansions Keystone XL Bruce Power Life Extension Columbia expansions Grand Rapids Phase II Other growth in…
Dividend growth outlook through 2021 Annual growth of 8 to 10 per cent Supported by existing asset base and 30 billion secured capital program
Dividend growth outlook beyond 2021 5-7% per year Consistent with long-term performance Stemming from abundant organic growth opportunities Financed using historical self-funding model Transformational opportunities could…
Our Executive Leadership Team Stan Chapman Russ Girling Don Marchand Executive VP and President, President and Chief Executive Officer Executive VP and Chief Financial Officer U.S. Natural Gas Pipelines Patrick Keys Paul Miller…
Strategic Overview Russ Girling President and Chief Executive Officer
Canadian Natural Gas Pipelines Tracy Robinson Executive Vice-President and President, Canadian Natural GasPipelines
Unparalleled footprint is a competitive advantage High-quality asset footprint cannot be replicated 92,600 km (57,500 mi) of natural gas WCSB pipelines 653 Bcf of storage capacity Access to abundant, cost-competitive supply Assets…
Abundant, low-cost supply WCSB 2007 - 165 Tcf North American resource estimate has 2019 - 924 Tcf grown over 250% since 2007 Over 100 years of recoverable supply Rockies / San Juan WCSB and Appalachia are the fastest- 2007 - 354…
System connects WCSB supply to key domestic and global markets WCSB supply Markets for WCSB Gas LNG export under construction and in development Abundant, low-cost WCSB supply is highly competitive in North America and…
Transformational shift in Canadian Natural Gas Pipelines 2010 2019 2023+ NGTL and Mainline underutilized Increasing WCSB competitiveness High-quality expansion Delivered 9.4 Bcf/d to market Delivered 12 Bcf/d to market Connecting…
2019 Continuing to deliver on our commitments Execute Maximize Cultivate 17 billion capital program Improving utilization of our assets Continued growth in our capacity to Safe and reliable operations Solidifying regulatory…
Capital expansion program adding egress for WCSB gas NGTL Coastal 10.0 billion GasLink Maintenance capital +2.1 Bcf/d 6.6 billion Intra Basin 0.6 billion/year +1.5 Bcf/d West Path Canadian +0.7 Bcf/d Mainline +0.5 Bcf/d East…
Expanding WCSB access to market NGTL 10 billion capital program underway Expand access to markets and reduce system constraints Increase access to low-cost North Montney supply Continue to facilitate growth of local markets Advance…
Expanding WCSB access to market Coastal GasLink LNG Canada phase 1 capacity of 2.1 Bcf/d, 6.6 billion capital cost LNG Canada phase 2 expansion potential to 5 Bcf/d Construction underway 700 million invested to date Advancing sale…
Partnering with the community Coastal GasLink High degree of alignment and partnerships with communities and Indigenous groups Project agreements with elected leadership of all 20 First Nations along the route Targeting 1 billion in…
Critical conduit to Eastern markets Canadian Mainline 400 million capital expansion Strong demand for Mainline and Eastern Triangle capacity Reclaiming eastern market share Contract term increasing Collaborating with customers to…
Future growth opportunities 1 2 3 4 5 6 Opportunities under development Positioned to capture 1 Intra-basin 5 Incremental market access in Canada and the U.S. high-quality growth 2 Merrick Mainline 6…
Average Investment Base and Net Income outlook* Billions Billions 9% CAGR 9% CAGR Significant growth positioned for continued success *See the forward looking information and non-GAAP measures slide at the front of this…
Looking ahead Execute Maximize Cultivate Operate safely and reliably Optimize utilization Expand WCSB reach Execute NGTL and Mainline capital Complete regulatory applications Leverage Canada/U.S. footprint program Develop flexible…
Canadian Natural Gas Pipelines Tracy Robinson Executive Vice-President and President, Canadian Natural GasPipelines
U.S. Natural Gas Pipelines Stan Chapman Executive Vice-President and President, U.S. Natural GasPipelines
U.S. Natural Gas Pipelines system overview Broad national network 31,000 miles (50,000 km) of FERC-regulated pipelines with operations across 40 states 535 Bcf of regulated storage Serves 25% of U.S. natural gas demand Diversified…
Extensive asset footprint over prolific natural gas supplies U.S. and Canadian Reserves Lower 48 Production (Bcf/d) Actual Forecast WCSB 2007 - 165 Tcf 2019 - 924 Tcf Appalachia 2007 - 95 Tcf 2019 - 1,456 Tcf Rockies / San…
Natural gas consumption continues to grow Total U.S. Energy Consu mption Global LNG Supply Growth (Bcf/d) Oil Russia Natural Gas Coal Renewables Global LNG Growth Nuclear North America will provide over 45% of…
2019 Continued to build on success through diversified portfolio Placed US4.5 billion of growth projects in-service in 2019 Completed US7.9 billion growth program generating EBITDA in excess of US1 billion Modernization II Program…
Pipelines experiencing record demand Pipeline* Contracted Capacity GTN 100% Northern Border 100% Millennium 100% Columbia Gulf 100% Portland 100% North Baja 100% ANR 100% Tuscarora 100% Columbia Gas 93% Iroquois…
Sustainable value driven by new growth projects Capacity Capital Cost Projects Supply / Demand (Bcf/d) (USMillions) Projects in-service since 2016 7.7 7,860 Buckeye XPress Supply 0.3 195 Westbrook XPress(1) Demand 0.1 125 Grand…
Accessing global demand via LNG exports LNG Facilities supplied by TC Energy: Operational LNG Facility LNG Facility under construction LNG Facility under development (FID pending) Our U.S. pipelines provide supply to five existing…
Key focus areas and opportunities in 2020 and beyond Ensuring safe and reliable operations 8 Implement PHMSAs Gas Transmission Rules 3 1 Provide direction on Pipeline Safety Reauthorization Act 4 6 Optimizing our base business 2 9…
Comparable EBITDA* outlook USBillions 22% CAGR Transformative growth positioned for continued success * Comparable EBITDA is a non-GAAP measure. See the forward looking information and non-GAAP measures slide at the front of…
Looking ahead Execute Maximize Cultivate Operate safely and reliably Exercise cost and capital discipline Secure next wave of growth Continue executing near-term Small-scale debottlenecks and opportunities growth program…
U.S. Natural Gas Pipelines Stan Chapman Executive Vice-President and President, U.S. Natural GasPipelines
Mexico Natural Gas Pipelines Francois Poirier Executive Vice-President, Corporate Development and Strategy, and President, Power & Storage and Mexico
Mexico solid position and growing Five revenue-generating pipelines Tamazunchale Guadalajara l Mazatln Topolobampo l Sur de Texas Villa de Reyes expected to enter service in 2020 Tula expected to enter service two years…
2019 Accomplishments Mexicos gas supply grew by 40% when Sur de Texas began commercial operations in September Positive settlement on Sur de Texas includes 10-year contract extension US900 million capital program for Villa de Reyes…
Mexico supply and demand forecast Natural Gas Demand through 2030E (Bcf/d) Natural Gas Supply through 2030E (Bcf/d) Gas-fired power generation increases from 4.4 to 5.8 Domestic production increases from 2.6 to 3.6 Industrial/other…
Growth potential Short-term growth Increasing capacity through efficient expansions Connecting new demand centres throughextensions Central: Abundant U.S. gas enabling industrial and power generation fuel switching Northwest: Only…
Comparable EBITDA* outlook USBillions 19% CAGR Positioned for future growth *Comparable EBITDA is a non-GAAP measure. See the forward looking information and non-GAAP measures slide at the front of this presentation for…
Looking ahead Deliver Maximize Execute Cultivate Operate safely and Advance and finalize Complete construction of Pursue organic growth reliably commercial negotiations Villa de Reyes project opportunities with CFE on Tula and…
Mexico Natural Gas Pipelines Francois Poirier Executive Vice-President, Corporate Development and Strategy, and President, Power & Storage and Mexico
Liquids Pipelines Paul Miller Executive Vice-President, Technical Centre and President, Liquids Pipelines
Asset overview connecting North American liquids supply to markets Keystone Pipeline System Transports 20% of Western Canadian crude oil exports Delivers U.S. production to market Market access to 6 million Bbl/d of refining…
Assets deliver high-quality EBITDA Keystone: 90% contracted Marketlink: 80% contracted Grand Rapids: recovery through base contracts Northern Courier: 100% contracted White Spruce: 100% contracted Future growth opportunities to…
Canadian oil is in the worlds best interest ESG scores (aggregated) Global aggregated ESG scores and oil reserves Billion Bbls Aggregated ESG scores Proven oil reserves Canadian-produced oil, from worlds third-largest reserves,…
North American crude oil displacing Latin American production Declining Latin American production will support WCSB market share growth in the U.S. Gulf Coast (USGC) U.S. HSR Refining capacity North American crude oil…
Strong demand for Canadian crude oil in key refining markets U.S. Heavy Crude Oil Imports in KeyMarkets Significant opportunity for Canadian heavy crude in USGC and other markets Declining Latin American production Oil sands…
Light Tight Oil (LTO) production growth Permian and Bakken LTO lead U.S. production growth LTO destined for export markets 2 million Bbl/d of new Permian pipeline infrastructure impacting market fundamentals Million Bbl/d Light Tight…
Maximizing Marketlink system capabilities Optimized throughput and captured Capacity Spot Spot market opportunity in 2018 and 2019 Spot Long Haul Contracts Long Haul 2020 fundamentals will result in lower Long Haul Contracts…
Marketlink well positioned for shifting USGC fundamentals Resilient U.S. Gulf Coast heavy crude oil demand New Permian supply directed to U.S. Gulf Coast Incremental supply into Cushing Connecting multiple supply sources to…
Well positioned for strong market fundamentals Maximize value of existing assets Strategic corridor Proximate to growing supply basins Connected to key U.S. markets Leverage footprint Enhance connectivity to expand supplyand…
Alberta regional growth White Spruce Pipeline 72-km pipeline to connect CNQ Horizon crude oil production 200 million investment Completed on time and on budget Northern Courier Successfully monetized portion of asset for 1.15…
Advancing deep portfolio of growth opportunities Fully approved by regulator Grand Rapids Phase II Heartland Pipeline Keystone Hardisty Terminal Awaiting final permits Keystone XL Contiguous differentiated path from supply…
Progressing Keystone XL Canadian NEB approved U.S. federal permit status New Presidential Permit issued Updated SEIS issued Other federal permits expected in early 2020 State-level permit status Nebraska Public Service Commission…
Comparable EBITDA* outlook Billions 4-7% CAGR 80% of EBITDA contracted Permian infrastructure buildout narrowing differentials 2020-2022 demand impact from market dynamics * Comparable EBITDA is a non-GAAP measure. See the…
Looking ahead Deliver Maximize Advance Cultivate Provide safest, most Continue enhancement of Keystone XL under Grow sustainable and reliable and lowest- base business development contracted EBITDA emission liquids Increase…
Liquids Pipelines Paul Miller Executive Vice-President, Technical Centre and President, Liquids Pipelines
Power and Storage Francois Poirier Executive Vice-President, Corporate Development and Strategy, and President, Power & Storage and Mexico
Power and Storage asset overview Power 10 power plants* Approximately 6,000 MW* Portfolio of low-cost, low-emission, baseload generation Underpinned by long-term contracts Storage Alberta non-regulated natural gas storage…
Assets deliver high-quality EBITDA Long-term contracted Plant Counterparty Contract expiry capacity (MW)* Bruce Power Units 1-8 3,109 IESO Up to 2064 Bcancour 550 Hydro-Qubec 2026 Alberta plants 127 various 2022-2027 Grandview 90…
2019 Accomplishments Solid financial results Advanced Bruce Power life extension program Napanee construction 99% complete Expected in-service in the first quarter of 2020 Reached agreement to sell Halton Hills, Napanee and the 50%…
Bruce Power overview 6,400 MW or 30% of Ontarios needs 48.4% ownership interest Power sales contracted with Ontario IESO through 2064 Ontario Power Generation responsible for spent fuel and decommissioning liabilities Successfully…
Bruce Power Life Extension Program Major Component Replacement (MCR) and Asset Management (AM) on schedule and on budget Unit 6 MCR to begin in January 2020 MCR and AM capital reflected in power price Price increased from 68/MWh to…
Bruce Power financial contribution Robust risk-adjusted returns on 8 billion life extension program Steady equity income through the first four MCRs as price increases offset lower production Significant increase in equity income…
Power market fundamentals capacity mix for North America Natural gas, solar, wind and batteries increase Coal and oil diminish Demand growth forecast based on economic growth, demographics, electrification, energy efficiency and…
Power and Storage growth opportunities Continue to be significant private sector power generator in Canada Exploring new low-risk investment opportunities within core North American electricity markets Increasing fuel and technology…
Comparable EBITDA* outlook Billions Sale of Assets** 6% CAGR Solid base with long-term future growth in earnings *Comparable EBITDA is a non-GAAP measure. See the forward looking information and non-GAAP measures slide at…
Looking ahead Execute Advance Cultivate Operate safely and reliably Five additional Bruce MCRs under Explore low-risk North American Optimize operations development investment opportunities Bring Napanee to commercial Increase…
Power and Storage Francois Poirier Executive Vice-President, Corporate Development and Strategy, and President, Power & Storage and Mexico
Finance Don Marchand Executive Vice-President and Chief Financial Officer
Core principles Adherence to Long-term view grounded in established, conservative risk Simple model and fundamentals preferences corporate structure Footprint is irreplaceable Assets are resilient and earn Business is understandable…
2019 Scorecard Robust 10 billion Monetized Debt to Coastal Dividend ESG reporting operating and of assets 6.3 billion of EBITDA GasLink Reinvestment reinforced financial placed into mature assets run-rate in the funding Program with…
2019 Funding complete Billions 7.8 billion raised in 2019 through an array of attractive funding options 3.4 billion from monetization of Coolidge, Northern Courier and certain Columbia Midstream assets Additional 2.9 billion to be…
Balanced program has funded 72 billion of capital needs Billions 2016-2019E Portfolio Management Acquisitions Discrete Equity ATM Debt Maturities Hybrid Securities & DRP Senior Debt, Preferred Shares CommercialPaper & Cash…
Deleveraging while growing per share earnings Times Dollars Low Fours High Fours Target credit metrics achieved with simultaneous improvement in quantum and quality of EPS *Comparable EPS is a non-GAAP measure. See the forward…
Diversified portfolio of critical energy in frastructure 2019E C omparable EBITDA* Multiple business lines Foreign Exchange EBITDA 60% USD and 40% CAD Significant U.S. dollar debt and associated interest serve as natural hedge…
Advancing 30 billion secured capital program through 2023 Estimated Capital Expected Project Invested to Date* Cost* In-Service Date* NGTL System 2.5 2.4 2019 Modernization II US 1.1 US 0.7 2019-2020 Villa de Reyes US 0.9 US 0.7…
Secured growth program very high-quality and long duration Average contract term (years) 2.2 billion Regulated Rate Bases 6.6 US1.7 billion billion US1.5 (100%) billion 10.4 billion NGTL System and U.S. Natural Gas…
Capital expenditure outlook 2020-2022 Billions Secured growth portfolio 7.2 Coastal GasLink contributions 6.2 assume 25% ownership and project-level construction 4.6 financing Maintenance capital 90% has opportunity to earn a…
Funding program outlook 2020-2022 Billions Numerous levers available Debt issuance, Strong, predictable and growing cash commercial paper and other flow from operations Dividends, Ontario natural distributions and gas-fired…
Debt maturity profile 2020-2022 Billions Solid liquidity and market access 10 billion of committed and undrawn credit lines Well supported commercial paper programs Canada 2.0 billion U.S. US3.5 billion Shelf facilities in place…
Comparable EBITDA* outlook 2015-2022E Billions 10+ 9.3 Power and Storage 2023+ Normalizing items Liquids Pipelines Coastal GasLink Asset sales Mexico Natural Gas Pipelines NGTL System 2023 Bruce Power Unit 6 Bruce Power Unit 6…
Stability and longevity of core asset base Comparable EBITDA* Five growth platforms (Billions) Balance sheet strength Supportive fundamentals Irreplaceable corridors 10 billion of base EBITDA visible through 2030 Completion of 30…
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