Enbridge Inc. (TSX: ENB; NYSE: ENB) Investment Community Presentation June 2020
Contents Strategic Overview Slide 4 Near-term (2020) Outlook Slide 20 Appendix: Business Details Slide 33 Liquids Pipelines Slide 34 Gas Transmission Slide 54 Gas Distribution & Storage Slide 69 3
Strategic Overview
North Americas Premier Infrastructure Company Enterprise Value (North American Midstream Companies) (US,B, Source: Factset, March 2020) 160 140 120 100 80 60 40 20 0 ENB TRP ET EPD KMI WMB PPL OKE Delivering North…
ESG Environment Social Governance Safety is our number one priority Board Diversity 4 3.2 9.2 10 Barrels Released/ 36% 54% Total Inspection Miles/ Billion Barrel 8 Miles Women Men Total Miles of Pipe1 3 6 2 1.5 4 1…
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…
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+ bcfd…
Low Risk Business Model Built for Resiliency Best-in-Class Commercial Underpinning Credit Worthy Counterparties 98% 95% COS/ Contracted/ Investment CTS Grade Cost of Service / Investment Contracted / CTS1 Grade2 Low Risk Low…
Strong Balance Sheet & Credit Profile DEBT to EBITDA1 Best in Class Credit Profile Business Risk 6.0x Rating Agency Credit Metric Assessment Target Range: BBB+ 5.5x 4.5x to 5.0x Excellent stable 5.0x 4.5x BBB+ A stable…
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…
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%…
Long-Term Energy Demand Trends Remain Intact 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…
Long-Term N.A. Energy Supply Fundamentals N.A. Liquids supply1 (MMb/d) N.A. Natural gas supply (Bcf/d) U.S. & Canada exports 29 133 By 6 15 2040 23 Demand 105 +3 (MMb/d) Demand +10 (MMbcf/d) 3 5 Today 2018 2040 2018…
Disciplined Capital Allocation Self Funding Capacity 5 - 6 B Self-Funding (Post secured capital program): Capacity & Conservative Leverage Target: 4.5x to < 5x Financial Policy Long-Term Dividend Payout: 65% DCF Returns: Exceed…
Post-2020 Growth Opportunities Utilities 1B annual growth opportunities Westcoast LNG Exports Utility Franchise Westcoast system expansions Expansion Offshore Wind Connectivity to Westcoast LNG Core rate base growth exports…
Long Term Growth Outlook DCF per share 4-5% 5-7% DCF/share growth 4.50 - 4.80 1-2% 10B of secured growth through 2022 Revenue escalators New in-franchise 4.57 System optimizations growth opportunities Cost efficiencies Core…
Shareholder Value Created Dividend Growth Total Shareholder Return (1995 to 2019) 3.50 3.00 +9.8% 15.8% 2019-2020 2.50 Increased dividend for last 10.6% 2.00 25 years +11% dividend growth 1.50 CAGR (1995-2020) 8.9% 1.00…
Enbridges Value Proposition Our business is resilient over the long-term High Quality Infrastructure Our low risk business model provides stability We will grow in a disciplined manner ENB Superior Strong Low Risk Organic…
Gas Transmission Resiliency 15 bcfd Q1 Performance Gas pipelines highly utilized 3.7B 4 bcfd 14 TETCO rate settlement implemented April 1 bcfd 2020e GTM EBITDA 18 bcfd Achieved 99% re-contracting on TETCO and Algonquin…
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…
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…
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…
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…
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 Canada 3 mmbpd of refinery demand; greater 4…
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…
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…
Strong Financial Position Available Liquidity (B) 2020 Funding Plan (B) 15 12 14B 1.5B 9 Debt funding remaining 4B Debt Maturities 6 4B2 Debt funding completed 4.5B1 3 Secured Growth 4B Capital Spend Cash Flow net of…
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…
Premier Liquids Pipeline Franchise Best in Class Assets Transports Transports Integrated North American system 2/3rds 25% Demand pull pipelines connect premium markets of all crude oil of Canadian produced in crude exports Access…
Strong Fundamentals For Growth USGC Refining Capacity Current USGC Export Facility Capacity & Outlook (MMbpd) Seaway ETCO ETCO 0.1 Current 2025+ 0.7 Seaway Houston/ Beaumont/ St. James Freeport/ East of Texas City 1.1 Port…
USGC Heavy Oil Supply & Demand Global Heavy Crude Supply Changes Canadian Heavy Market Share of USGC 3500 3000 2500 Traditional Suppliers 5% 30% 50+% 2000 1500 1000 500 2013 2018 2030e 0 Canada Mexico Venezuela Canadian…
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…
Liquids Pipelines Strategic Growth Prospects Critical link from WCSB to premium Midwest and USGC refining markets Leverage existing footprint to extend value chain through to USGC export Optimize the Base Business 2% Mainline toll…
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 Contracting Shipper & Public Interest Benefits 1. Competitive & stable tolls to the best markets Premium 2. Open access for all shippers Light Oil Markets 3. Secures long-term demand for WCSB…
Optimize Base Business Mainline Contracting Benefits for all Shippers Striking a Balance Refiner / Benefit Producer Integrated Producer Secures Supply/Demand for Mainline contract offering balances the WCSB production diverse…
Optimize Base Business Mainline Contracting Competitive and Stable Tolls Hardisty to Chicago Heavy (US/bbl) 5.70 Up to 35 cents Discounts for Additional contracted 5.25 discounts for capacity & term/volume 5.11 throughput…
Optimization Base Business Mainline Contracting Next Steps Estimated Process Timeline: Dec 19, 2019 2021 CER process updates Filed Application May 19: CER established Mainline Regulatory: with CER contracting regulatory process…
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 AB kbpd…
Execute Secured Capital Program Line 3 Replacement Canada Placed into service Dec. 1 Edmonton 5B Canadian Immediately enhances safety and reliability of the Hardisty Capital Cost system Interim surcharge of US0.20 per barrel…
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…
Grow Organically Extend Integrated Value Chain OIL SANDS (WCSB) 1 1 Expansions of incumbent position in growing upstream production basins 2 BAKKEN 2 Additional Mainline optimization capability to core markets Expansions of…
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 2 Potential WCSB Export Capacity Additions Further Mainline Enhancements Southern Lights Reversal Edmonton Edmonton Hardisty 1.5B Hardisty 1.5B 200 in opportunities Current Flow in opportunities kbpd…
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 4 5 USGC Growth Strategy Fully develop the value chain of service offerings into the USGC 3+B Pipeline solution for growing production in opportunities Terminals store and stage crude Last mile connectivity to…
Grow Organically Advancing the USGC Strategy Seaway expansions 200kbpd light crude open season 3+B Further expandability for heavy growth in opportunities Enbridge Houston Oil Terminal Up to 15 MMBbl terminal connected to Seaway…
Gas Transmission
Premier Gas Transmission Footprint Strategic Asset Positioning Canadian Gas Transmission Last mile connectivity into key North American demand centers Access to all major supply basins Well-positioned to support LNG growth N.A. gas…
Regional N.A. Demand Growth Forecast (2040) Western Canada Eastern Canada Central Canada +6 +0.6 +0.5 Northeast Mid-West West Coast Rockies +2 +3 +1 +1 Breakdown of 2040 demand by : (Bcf/d) LNG Mexico South Power Gulf…
LNG Fundamentals & Opportunity North American LNG will grow to one third of global exports N. A.s LNG Export LNG Exports by Region (Bcf/d) Competitiveness 90 80 Canada 70 U.S. Resource life 60 Atlantic Basin 50 Russia Cost to…
Strong ESG Track Record to Support Growth Operations Incorporating Renewables Construction Industry commitment to reduce Employ adjacent solar installations Valley Crossing: 42-mile segment is methane emissions to self-power…
Gas Transmission Strategic Growth Prospects Premier demand-pull driven asset base serving key regional markets Positioned for significant growth in 4 key regions Optimize the Base Business 1-2% Re-contracting rates per year Rate…
Optimize Base Business Maintain Stable Revenue Base GTM Reservation Revenue (Based on revenues for 12 months ended 12/31/18) 98% 98% 97% 100% 98% 98% 95% 95% 92% 91% 86% 69% Achieved Peak 64% Delivery Days in N/A N/A N/A N/A…
Optimize Base Business Gas Transmission System Modernization Penn-Jersey Opportunities across footprint System Ongoing investment to upgrade existing infrastructure Maintain long-term resiliency of asset base as demand for…
Optimize Base Business More Frequent Rate Proceedings Texas Eastern Algonquin 2019 Rate Base1: 6.0B 2019 Rate Base1: 2.2B Rate settlement implemented Filed rate settlement agreement April 1, 2020 with FERC on May 15, 2020; expect…
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 Focus on Footprint Extensions and Expansions Western Canada U.S. Northeast & Southeast U.S. Gulf Coast Markets Systems competitively positioned to secure growth from evolving supply/demand patterns 64
Grow Organically Gulf Coast Market - LNG Opportunities U.S. Gulf Coast LA Texas Eastern and Valley Crossing well-positioned Texas Cameron Venice along the U.S. Gulf Coast 3B Eastern Extension Extension Connected to 3 LNG facilities…
Grow Organically USGC Strategy LNG Pipeline Opportunities Rio Bravo Pipeline Valley Crossing Expansion Agua Dulce Agua Dulce Hub Hub Valley Crossing Valley Crossing Proposed Rio Bravo Pipeline VCP Expansion Rio Grande LNG…
Grow Organically Western Canada Opportunities Westcoast System Expansions T-North T-North & T-South: Expansions to accommodate Gathering System domestic and LNG export demand, as well as system Growth reinforcements to ensure…
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 2B Growth in renewables requires stable…
Gas Distribution & Storage
Premier Gas Utility Franchise World Class Asset Base Largest volume and fastest growing N.A. franchise 280 Bcf of Dawn hub storage with growth potential Critical Dawn-Parkway transmission corridor ONTARIO Ontario Population Growth…
Gas Distribution & Storage Strategic Growth Prospects Largest and fastest growing gas utility franchise in North America Steady annual growth opportunities through in-franchise expansions Optimize the Base Business 1-2% Amalgamation…
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…
Execute Secured Capital Program Advancing Secured Growth Project Inventory Secured Projects ISD Capital (B) Dawn Parkway 10km pipeline expansion from Kirkwall to Hamilton 2022 0.2 Expansion Windsor Line 61km pipeline integrity…
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 Regulated Return on Capital Framework Total Annual Capital Expenditures: 1+B/ year Additional growth projects above Incremental Capital Module (ICM) threshold Incremental Growth Individual projects to be approved by…
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 NH markets further east Leader in…
Grow Organically Greening the Grid RNG: Renewable natural gas supply from landfill CNG: Compressed natural gas for transport fleet conversion or for remote industrial usage Power to gas conversion using hydrogen Utility…
Contact Information Jonathan Morgan Nafeesa Kassam Vice-President, Investor Relations Director, Investor Relations 403-266-7927 403-266-8325 Jonathan.Morganenbridge.com Nafeesa.Kassamenbridge.com
Loading...
