Contents Legal Notice 01 Opening Remarks 03 Strategic Overview 05 Gas Transmission and Midstream 17 Gas Distribution and Storage 26 Liquids Pipelines 32 Corporate Finance 45
Non-GAAP Measures This presentation makes reference to non-GAAP measures, including adjusted earnings before interest, income taxes, depreciation and amortization (Adjusted EBITDA), distributable cash flow (DCF) and DCF per share.…
Enbridge Day 2019 December 10, 2019 New York City Safety Moment Building Evacuation Procedures Enbridge Investor Day 3
Enbridge Day 2019 Al Monaco President & Chief Executive Officer Highlights Financial Update Business Update 2019e DCF/Share 4.30 - 4.60 Advancing Liquids USGC strategy guidance Exceed midpoint Line 3 Canada: placed into service…
Growing and Repositioning Our Business 2010 2016 2019e Power and 6% Energy Services Gas Transmission, 20% Distribution & 33% Liquids Asset Mix* Storage Pipelines 42% 53% 65% 74% EBITDA (Billion) 3B 7B 13B Enterprise…
Resilient Energy Infrastructure Liquids Pipelines Gas Transmission Gas Distribution & Storage 1 15 mmbd bcfd 1 4 bcfd ONTARIO mmbd 0.3 14 bcfd OTTAWA mmbd 2+ 18 bcfd mmbpd DAWN HUB TORONTO 19 18 bcfd 8+ mmbd…
Safety & Reliability Industry-leading Liquids Pipelines Safety Performance (2014-2018; Total inspection miles / Total miles of pipe VS Barrels released/Billion barrel miles) 3.5 45 3.2 Lifecycle approach to asset Total Barrels…
Leading the Industry on ESG Measures Peer A Peer B Peer C Peer D Peer E Third Party ESG Ratings2 TCFD aligned disclosure report1 Best Possible Rating Publicly report GHG emissions (Scope 1 and 2) Enbridge Rating Board oversight of…
Growing Global Demand for Energy Global Energy Demand (2040,Mtoe) World Population Urbanization Global Middle Class +351% Renewables +27% +16% +67% Bioenergy 24% Hydro 9.7B 64% Increase in Nuclear 5B demand by 2040 +36% Gas…
Midstream Energy Context Growing We have adapted to the changing energy landscape global energy demand How we approach growth: Low cost Optimize and expand existing assets Increasing North competition American Diversify…
Growth Outlook DCF per share 4-5% 5-7% DCF/share growth 4.50 - 4.80 1-2% 11B of secured growth through 2022 4.30 - 4.60 Revenue escalators (exceed midpoint) New in-franchise System optimizations growth opportunities Cost…
Near-term Capital Allocation Priorities 1 Preserve Financial Strength Target 4.5x…
Longer Term DCF/Share Outlook 5-7% 1-2% DCF/share/year on average 4-5% DCF/share/year on average DCF per share growth (average) Optimize the Base Business Organic Growth Annual Growth Toll escalators & contract ramps…
Enbridges Value Proposition Our business is resilient over the long-term Our low risk business model provides stability We will grow in a disciplined manner We are delivering on our commitments Critical infrastructure, lowest…
Shareholder Value Created Dividend Growth Total Shareholder Return (1995 to 2019) 3.50 3.00 +9.8% 15.8% 2019-2020 2.50 2.00 Increased dividend for last 25 years +11% dividend growth 10.0% 1.50 CAGR (1995-2020) 8.6% 1.00…
Gas Transmission Bill Yardley President & Executive Vice President, Gas Transmission & Midstream Premier Gas Transmission Footprint Canadian Gas Strategic Asset Positioning Transmission Last mile connectivity into key North…
Growing N.A. Gas Supply and Demand N.A. gas production N.A. gas consumption Other Mid-Con LNG Exports +15 Haynesville Mexico Exports Bcf/d Rockies Other Permian Residential / Commercial WCSB Industrial USGC Appalachia/ NE…
US Northeast Power Generation Electricity Prices (/MWh) U.S. Northeast Power Generation 6% Hydro 200 9% Renewables 8% 3% Solar 150 29% Landfill Gas 31% Nuclear Refuse 26% 100 Wind 56% Natural Gas 50 32% Wood 0…
Gas Transmission Strategic Priorities Optimize Execute Grow the Base Business Secured Capital Program Organically Continued high contract Deliver 4B of secured Capital efficient system renewal rate growth projects into service…
Optimize Base Business System Modernization Penn-Jersey System Opportunities across footprint Ongoing program to upgrade existing infrastructure Costs to be recovered through periodic rate proceedings Seeking to optimize timing…
Execute Secured Capital Program Continued Progress on Secured Project Inventory Spruce Ridge Completed in 2019 Capital ISD Atlantic Bridge - Phase1 US0.1 In-service Stratton Ridge US0.2 In-service T-South Generation Pipeline US0.1…
Grow Organically Gulf Coast Market - LNG Opportunities USGC LNG Opportunities Rio Bravo Pipeline Agua Dulce Announced MOU with Hub NextDecade to explore 3B TX Cameron LNG Cameron Extension Venice Extension joint development…
Grow Organically Power Generation & Industrial Demand Power Generation Market Further coal retirements planned through 2025 Low-cost natural gas positioned to replace aging coal facilities Growth in renewables requires stable base…
Gas Transmission Summary Premier demand-pull driven asset base serving key regional markets Positioned for significant growth in 4 key regions Re-contracting rates 1-2% Rate proceedings per year base business growth Ongoing…
Gas Distribution & Storage Cynthia Hansen Executive Vice President, Gas Distribution & Storage Premier Gas Utility Franchise World Class Asset Base Largest volume and fastest growing N.A. franchise 280 Bcf of Dawn hub…
Strong Demand Fundamentals Ontario Population Growth Comparable Residential Forecast (millions) Annual Heating Bills (/year) Greater Toronto region represents majority of Canadian immigration and 18.5 2,597 population growth…
Optimize Base Business Synergy Capture Drives Strong Returns Incentive Rate Structure 10% Sustainable integration savings Achieved ROE Expected range of supports ability to realize returns in Achieved ROE excess of the Allowed ROE…
Grow Organically Regulated Growth Opportunities New Connections New Community Expansions System Reinforcements Strong outlook for population Supportive policies to expand New capacity required to serve growth in Greater Toronto…
Grow Organically Storage & Transmission Expansion Well-positioned for future growth MONTREAL Dawn-Parkway is critical transmission path for ON VT incremental gas supply into Toronto area and markets further east NH Leader in…
Gas Distribution & Storage - Summary Largest and fastest growing gas utility franchise in North America Steady annual growth opportunities through in-franchise expansions 1-2% Amalgamation synergies per year Cost management base…
Liquids Pipelines Guy Jarvis Vern Yu Executive Vice President, Liquids Pipelines President & COO, Liquids Pipelines Premier Liquids Pipeline Franchise Best in Class Assets Transports Transports 2/3rds 25% Integrated North…
Strong Crude Oil Supply Fundamentals North American Crude Oil Supply Outlook USGC Refining Capacity 25 20 4 Port Arthur MMbpd East of growth Permian St. James St. James by 2030 15 Lake Rockies Charles Baytown Bakken 10 Texas…
WCSB Heavy Crude Fundamentals WCSB Heavy Crude New Oil Sands SAGD Project Oil Sands Environmental Growth Outlook (MMbpd) Break Even Cost (WTI/Bbl) Performance (tCO2e/bbl bitumen) 1 6,000 0.10 80 California Heavy Average Oil Sands…
Focused on Community & Indigenous Engagement Engagement Model L3R Success in Canada L3R Success in Minnesota Community engagement focused on Enbridge addressed our concerns Fond du Lac Band of Ojibwe: Extension alignment with local…
Optimize Base Business Significant Revenue and Cost Efficiencies Optimizing the Base Revenue Growth Cost Management Toll escalators and contact ramps Supply chain efficiencies 2% DCF per year System optimizations Power cost…
Optimize Base Business Mainline Term Contract Application Average Contract Tolls Shipper & Public Interest Benefits Similar to CTS Exit Rate Toll Competitive and stable tolls Annual toll Open access for all shippers inflation…
Optimize Base Business WCSB Egress Additions Much needed WCSB egress ahead of full Line 3 Replacement project Edmonton 100 Aligned commercial interests with shippers kbpd Hardisty in 2019 Capital efficient projects 50 Attractive…
Execute Secured Capital Program Line 3 Replacement - Minnesota Project Milestones Anticipated Sequence of Milestones Regulatory: EIS MPUC Spill Modelling Public EIS Adequacy Reinstate Authorization MPUC Decision CN / RP Petitions…
Grow Organically 1 Regional Pipelines Regional Oil Sands Bakken Pipeline System BAKKEN 1.0B in opportunities DAPL Patoka ETCOP Oil sands development will drive need for regional infrastructure Growing Bakken production…
Grow Organically 3 Market Access Expansions Hardisty Mainline optimizations and Southern +300 Access Expansion will enable volume growth into Chicago market 1-2B kbpd Southern Access in opportunities Expansion Drives need to…
Grow Organically Advancing the USGC Strategy Seaway expansions 200kbpd light crude open season 3+B Further expandability for heavy growth in opportunities Enbridge Jones Creek terminal Up to 15 MMBbl terminal connected to Seaway…
Q&A Enbridge Investor Day 44
Corporate Finance Colin Gruending Executive Vice President & Chief Financial Officer Our 2018 2019 Accomplishments 4.6x Debt-to-EBITDA 2019e Strengthened the Balance Sheet Sale of 8B of non-core assets Completed buy-in of…
Enduring Finance Priorities Financial Low Risk Disciplined Sustainable Strength & Business Capital Shareholder Flexibility Model Allocation Returns Committed to a proven formula Financial Strength & Flexibility Strong…
Low Risk Business Model Built for long-term resiliency Best-in-Class Commercial Underpinning Credit Worthy Counterparties COS/ Contracted/ CTS 98% 93% A rated or higher/BBB COS / Contracted / CTS Investment Grade Low Risk Low…
Low Risk Business Model Delivering Reliable Results Resilient business performance Highly predictable financial performance 16,000 100 14,000 WTI Adjusted Earnings/share DCF/share 4.50 12,000 75 4.00 10,000 3.50 3.00 8,000…
Disciplined Capital Allocation Long-Term Financial Capacity Dividends 5-6B annual capital Maintenance available Capital to invest 3-4B Debt Capacity Cash Flow from Free Cash Flow Available Capital Operations (Post…
Disciplined Capital Allocation Strict Investment Review Processes Investment Initial Opportunity Set Screen Project Evaluation & Portfolio Liquids Assessment Pipelines Strategy Fundamentals Compare to Alternatives Gas Gas…
Secured Growth Inventory Expected Project ISD Capital (B) Line 3 Replacement U.S. Portion 2H201 2.9 USD2 Cumulative EBITDA Growth from Southern Access to 1,200 kbpd 2H20 0.5 USD Secured Projects (C billions) Other Liquids 2H20 0.1…
Near-Term Financial Capacity DEBT-to-EBITDA Outlook 16B EBITDA 5.0x EBITDA growth from secured projects and optimizing the base Potentially available financial capacity business creates capacity 4.5x for new growth Maintain…
Distributable Cash Flow (DCF) Guidance DCF per share1 2020 DCF Guidance (MM, except per share amounts) Adjusted EBITDA1 13,700 4.50 - 4.80 Cash distributions in excess of equity earnings 600 4.30 - 4.604 Maintenance capital (1,000)…
Dividend Growth 25 years of consecutive dividend increases +11% 9.8% (2019-2020) CAGR Long term target payout ratio 65% DCF (1995-2020) 1995 2020e Long history of sustainable dividend growth and shareholder value…
Q&A Enbridge Investor Day 55
Enbridge 200, 425 1st Street S.W. Calgary, Alberta, Canada T2P 3L8 www.enbridge.com Contact us: investor.relationsenbridge.com 1.800.481.2804 Enbridge Investor Day 56
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