2020 Outlook and Strategic Update December 17, 2019
2020 Guidance Highlights (CAD unless otherwise noted) A leading North American infrastructure company that connects NGL and natural gas to domestic and global markets Suspension 1.20 - 1.30 1,275 1,325M 900M of the DRIP…
2019 Key Accomplishments Setting the stage for attractive growth in 2020 and beyond Operational Priorities Financial Priorities Completed key infrastructure projects Executed 2.2 billion2 of non-core asset sales RIPET De-levered the…
2020 Outlook 5
Strong Growth in Base Business Underpins 2020 Outlook Strong growth in core Utilities and Midstream businesses EPS growth driven by lower leverage more than offsets lost EBITDA from asset sales and interest expense 2020 Normalized…
2020 Operational Review Growth in core business more than offsets lost EBITDA from asset sales Utilities: Leveraging our core distribution footprint 2020 Normalized EBITDA1,2 Growth ( millions) Increase utilization of the Accelerated…
2020 Disciplined Capital Allocation Strong organic growth drives robust risk-adjusted returns 900 million in top-quality projects anticipated to drive earnings growth Capital Allocation Criteria: Power Corporate 2% 2% Strong…
RIPET 2020 Operational Overview Strong performance; positioned for growth Increased utilization - strong interest from producers supports volumes ramping up to exit 2020 at 50,000 bbl/d RIPET 2020e 80% of expected 2020 volumes…
Utilities 2020 Growth Drivers Grow earnings through rate base investment Investment in aging infrastructure and attracting new customers is expected to drive strong rate base growth of 8 - 10% Rate Base Growth (US millions)…
WGL ROE Strategy Path to earning our allowed returns at WGL Strategy in place with a clear line of sight to allowed returns in 2021 Key initiatives to achieving allowed returns: Anticipated Return On Equity & Expected Timeline 1.…
Utilities Segment Capital Spend Disciplined approach to capital focused on strategic projects and Accelerated Replacement Programs Designed to earn immediate returns and increase capital efficiency through approximately 25% growth in…
Maintain Investment Grade Credit Rating Entering 2020 with significantly stronger financial footing Solid foundation to capitalize on significant organic growth opportunities 10.1x Commitment to investment grade credit rating…
2020: Self-Funded Model Growth in cash flow eliminates need for common equity and provides funding flexibility 2020 capital plan funded internally and focused on projects with near-term returns 2020e Sources and Uses ( millions)…
2020e EBITDA Seasonality Utilities seasonality driving quarterly EBITDA profile Consolidated Normalized 2020e Midstream Normalized 2020e Utilities Normalized 2020e EBITDA1 By Quarter EBITDA1 By Quarter EBITDA1 By Quarter 25% 25%…
2019: Outlook Unchanged 2019 Normalized EBITDA1 Guidance 2019 Net Debt Decrease ( millions) ( millions) 1,600 3 billion 1,200 - 1,300 in debt repayment 1,200 800 400 - 2019e YE 2019e Net Debt Utilities Midstream…
Launched our Inaugural ESG Report To earn the right to grow, we must continue to integrate ESG considerations into the execution of our strategy The report outlines our 2018 performance in several key areas relevant to the long-term…
Appendix 20
World-Class Assets (CAD unless otherwise noted) 5.5B 1.2 - 1.3B 2.2B 21B Market Cap1 2019e Normalized Asset Sales in 20191 Total Assets EBITDA2 1.9Bcf/d 54,500bbl/d 80,000bbl/d Gas Processing3 Fractionation4 Export5…
Our Business Strategies are Straightforward Low-Risk, High-Growth Utilities and Midstream Company Low-Risk Regulated Utilities Opportunity-Rich Integrated Midstream Utilities Global Distribution Export Leveraging our Core…
Midstream Update 23
Our Midstream Strategy is Straightforward Maximize utilization of existing assets and pursue capital efficient high-return expansions Invest Continue to build upon our export competency Midstream Diversify and grow our customer base…
Premier Midstream Business Connecting Canadian Producers to Global Markets Leverage RIPET and our integrated value chain to attract volumes Montney Basin Key Assets: Strategic Benefits: Ridley Island Propane Global demand market…
Integrated Service Offering with Access to Global Markets Increasing returns along the integrated value chain Gas Processing & 9X 10X Gathering Field Fractionation, Liquids Handling Storage and Rail CUMULATIVE CAPEX PER Loading…
Abundant North American Natural Gas Supply Excess propane supports development of incremental export capacity Abundant supply of North American natural gas Propane supply growth continues to outpace demand U.S. natural gas production…
Supply/Demand Imbalance Supports Export Capacity Growth Opportunity to grow Canadas West Coast LPG export capacity Increasing demand in Asia Supply/demand imbalance supports strong spreads Natural gas and propane are low-cost sources…
RIPET: Providing Enhanced Netbacks to Producers At current propane prices1 the RIPET advantage results in a significant increase in our producers realized price Alberta3 US11.05/bbl Ft. Saskatchewan RIPET AFEI2 10…
Utilities Update 30
Utilities Strategy - Drive Operational Excellence Priorities Maintain safe and reliable infrastructure Enhance overall returns via complementary Utilities businesses and cost-reduction initiatives Distribution Attract and retain…
Our Utilities Business Operating Model Safe and reliable, high-growth competitive strategy Opportunities Improve business processes and drive down leak remediation costs, reinvesting savings into improving the customer…
Rate Case Update Focused on Timely Recovery of Capital Equity Thickness Rate Case Revenue ROE Approved Notes Approved Final order released December 6, Filed May 31, 2019, SEMCO 2019 includes the Marquette Received: US19.9 MM…
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