Skip to main content 1Q 2020 Earnings Presentation – Enbridge Inc. | Shale Experts
Loading...
Pm

1Q 2020 Earnings Presentation – Enbridge Inc.

Enbridge Inc. · May 7, 2020 · 30 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. 1Q 2020 Earnings Presentation – Enbridge Inc. – slide 1
    Q1 2020 Financial Results & Business Update May 7, 2020 Al Monaco, Chief Executive Officer Colin Gruending, Chief Financial Officer
  2. 1Q 2020 Earnings Presentation – Enbridge Inc. – slide 2
    COVID-19 Response & Business Continuity Our People Our Response Our Approach Financial Commodity Alberta 16,000 Crisis WTI Price Collapse Forest Fires 100 14,000 12,000 75 10,000 WCS 8,000 50 6,000 4,000 25 2,000 Adjusted…
  3. 1Q 2020 Earnings Presentation – Enbridge Inc. – slide 3
    Highlights Strong operating performance Strong Q1 Results Achieved 1.34 DCF/share Results exceed budget Sold 0.4B of assets Advanced Strategic Texas Eastern rate settlement approved Priorities Advanced permitting on Line 3…
  4. 1Q 2020 Earnings Presentation – Enbridge Inc. – slide 4
    Q1 Financial Results Summary ( millions) Adjusted EBITDA Adjusted Earnings Distributable Cash Flow 3,769 3,763 2,758 2,706 1,640 1,668 Q1 2019 Q1 2020 Q1 2019 Q1 2020 Q1 2019 Q1 2020 Q1: 0.81 / share 0.83 / share Q1: 1.37 /…
  5. 1Q 2020 Earnings Presentation – Enbridge Inc. – slide 5
    Low Risk Pipeline-Utility Business Model 40+ Diversified Sources Best-in-Class 2020e EBITDA of Cash Flows (EBITDA) Commercial Underpinning Commercial Profile Gas Liquids Pipelines Transmission 98% Gas distribution utility U.S.…
  6. 1Q 2020 Earnings Presentation – Enbridge Inc. – slide 6
    Gas Transmission Resiliency 15 bcfd Q1 Performance Gas pipelines highly utilized 3.7B 4 bcfd 14 TETCO rate settlement implemented April 1 18 bcfd 2020e GTM Achieved 99% re-contracting on TETCO and Algonquin EBITDA bcfd 27%…
  7. 1Q 2020 Earnings Presentation – Enbridge Inc. – slide 7
    Gas Distribution & Storage Resiliency Q1 Performance ONTARIO Growth from new customers and community expansions 1.8B Capturing utility combination synergies 2020e GDS Warmer than normal weather in Q1 EBITDA OTTAWA 2020 Outlook…
  8. 1Q 2020 Earnings Presentation – Enbridge Inc. – slide 8
    Renewable Power Generation Resiliency North America Europe Q1 Performance Wind and solar facilities ran well 0.5B New German offshore wind farm in service 2020e Power Saint-Nazaire France offshore wind farm EBITDA construction in…
  9. 1Q 2020 Earnings Presentation – Enbridge Inc. – slide 9
    Liquids Pipelines Resiliency 1 Q1 Performance mmbd Record throughput on the Mainline system 1 7.5B mmbd Downstream market access pipelines highly utilized 2020e LP 0.3 Advanced permitting on Line 3 replacement project EBITDA…
  10. 1Q 2020 Earnings Presentation – Enbridge Inc. – slide 10
    COVID-19 Impact on Demand - Supply Unprecedented Reduction in N.A. 2020 Crude Oil Demand Outlook2 North America Energy Demand (kpbd, as of April 24, 2020) Jan20 to April201 Pre-Covid19 Demand Outlook 20,000 Gasoline demand…
  11. 1Q 2020 Earnings Presentation – Enbridge Inc. – slide 11
    Enbridge Core Markets Resiliency North America Refinery Utilization1 Core Markets in PADD II & Refining Margins vs. PADD I2 (April Avg) US Midwest PADD I Eastern Canada 8 6 Western 3 mmbpd of refinery demand; greater Canada 4…
  12. 1Q 2020 Earnings Presentation – Enbridge Inc. – slide 12
    Why the ENB Mainline has always been heavily utilized Mainline Throughput Heavy Oil Apportionment Mainline Key Attributes (Ex-Gretna, kbpd) (Apportionment %) 3,000 80% 70% Direct connection to 2,500 heavy oil refineries 60% 2,000…
  13. 1Q 2020 Earnings Presentation – Enbridge Inc. – slide 13
    Mainline Outlook WCSB Blended Supply Outlook & Disposition of April Reduced Supply Mainline Throughput Outlook (Ex-Gretna throughput, kbpd) (kbpd) 1,200 1.1 mmbpd 3000 Avg. 2020 Planned Throughput : 2.85mbpd1 5,000 First 400-600…
  14. 1Q 2020 Earnings Presentation – Enbridge Inc. – slide 14
    Attractive Mainline Offering Strong Shipper Support Contract Offering Balances 2021e WCSB Producer Netbacks Shipper Needs 75% Priority access Shipper Best Support* markets Toll certainty & competitive toll drives strongest…
  15. 1Q 2020 Earnings Presentation – Enbridge Inc. – slide 15
    Demand-Pull Supports Strong Contracting Outcome 3.1 mmbpd Demand Pull from Core Markets in PADD II & PADD III & U.S. Gulf Coast Premium Markets Eastern Canada (mmbpd) Market share of Canadian heavy 3.0 in USGC is increasing 2.5 2.2…
  16. 1Q 2020 Earnings Presentation – Enbridge Inc. – slide 16
    Mainline Contracting Regulatory Process Estimated Process Timeline: Dec 19, 2019 2Q 2021 Filed Application Regulatory: with CER Public Hearing Information Oral CER Hearings & Decisions Comment Orders Decision Requests Hearing…
  17. 1Q 2020 Earnings Presentation – Enbridge Inc. – slide 17
    Line 3 Replacement: Minnesota Update Regulatory and Permitting Milestones MPUC process updates EIS, Certificate of Need and Route Regulatory: Permit reinstated EIS MPUC orders issued May 1; delayed Public EIS / CN / Orders Petitions…
  18. 1Q 2020 Earnings Presentation – Enbridge Inc. – slide 18
    3-Year Plan Priorities Supplemented by Bolstering Actions 3 Year Plan Priorities 2020 Bolstering Actions Safety & operational reliability COVID-19 business continuity plans Balance sheet strength and flexibility Increased available…
  19. 1Q 2020 Earnings Presentation – Enbridge Inc. – slide 19
    Q1 2020 Adjusted EBITDA ( Millions, except per share amounts) 1Q20 1Q19 1Q20 vs. 1Q19 Liquids Pipelines 1,919 1,729 Mainline throughput & tolls; Strong downstream pipeline volume Texas Eastern rate case settlement Gas Transmission…
  20. 1Q 2020 Earnings Presentation – Enbridge Inc. – slide 20
    Q1 2020 Distributable Cash Flow ( Millions, except per share amounts) 1Q20 1Q19 1Q20 vs. 1Q19 Adjusted EBITDA 3,763 3,769 Cash distributions in excess of equity earnings 72 94 Lower equity distributions from Alliance & Aux Sable…
  21. 1Q 2020 Earnings Presentation – Enbridge Inc. – slide 21
    Secured Growth Capital Projects in Execution ( Billions) Capital Expenditures through 1Q20 Commercial Project Expected ISD (B) (B) Framework High-quality portfolio of projects: Line 3R U.S. Portion TBD1 2.9 USD 1.4 USD Toll…
  22. 1Q 2020 Earnings Presentation – Enbridge Inc. – slide 22
    Preserve and Strengthen Financial Position Available Liquidity (B) 2020 Funding Plan (B) 15 12 14B 1.5B 9 Debt funding remaining 4B Debt Maturities 6 4B Debt funding completed 4.5B1 3 Secured Growth 4B Capital Spend Cash…
  23. 1Q 2020 Earnings Presentation – Enbridge Inc. – slide 23
    0.4B of Asset Sales Montana Alberta Tie Line Ozark Gas Transmission 49% Interest in Offshore Wind Construction Ozark Gas Development 0.2B AB 0.1B system 0.1B Proceeds Proceeds Proceeds OK AR MATL Fecamp MT Coursuelles sur…
  24. 1Q 2020 Earnings Presentation – Enbridge Inc. – slide 24
    Strong Customer Base Enterprise Counterparty Credit Profile1 Liquids Gas Gas Distribution Resilient customer base Pipelines Transmission & Storage Renewables Refiners, utilities, integrated producers, etc. 97% 91% 100% 99%…
  25. 1Q 2020 Earnings Presentation – Enbridge Inc. – slide 25
    Best-in-Class Risk Profile Business Risk Rating Agency Credit Metric Assessment The company has limited direct commodity price exposure, with approximately 98% BBB+ Excellent of its cash flows stemming from low-risk take-or-pay,…
  26. 1Q 2020 Earnings Presentation – Enbridge Inc. – slide 26
    Cost Reductions Outside services and supply chain costs 300M Cost efficiencies Cost Reductions Voluntary retirement programs Company-wide salary roll-backs Continued optimization of base operations, without sacrificing safety…
  27. 1Q 2020 Earnings Presentation – Enbridge Inc. – slide 27
    2020 Financial Outlook Sensitivities LP Mainline Sensitivities 2020 Bolstering Actions Volume Sensitivity(1) (Impact on Q2-Q4 DCF(1)/share) (Impact on Q2-Q4 DCF(1)/share) EBITDA IMPACT Q2-Q4 (net of power) Avg. volume Target O&A…
  28. 1Q 2020 Earnings Presentation – Enbridge Inc. – slide 28
    Re-affirming 2020 Financial Outlook 2020 Distributable Cash Flow/share1 TAILWINDS 4.50 4.80 Strong Q1 performance 4.57 Stronger USD Low interest rates Cost reductions HEADWINDS Mainline volumes Energy services DCP…
  29. 1Q 2020 Earnings Presentation – Enbridge Inc. – slide 29
    2020 Priorities Safety & operational reliability Balance sheet strength and flexibility Optimize the base business Disciplined capital allocation Execute secured capital program Grow organically Maximizing shareholder…
  30. 1Q 2020 Earnings Presentation – Enbridge Inc. – slide 30
    Q&A

From the store

Browse maps, data & reports in the Shale Experts store