INVESTMENT HIGHLIGHTS Top tier energy infrastructure business that has significant growth potential Reliable operations, with stable cash flow and a self-funded equity model Significant liquidity available on 2.5 billion of…
WORLD-SCALE ENERGY INFRASTRUCTURE Oil Sands NGL Conventional Bulk Liquid Transportation Processing Oil Pipelines Storage 2020 September YTD EBITDA (730 million) 59% 16% 12% 13% 2.3 million b/d 140,000 b/d of 3,900 km…
RECENT DEVELOPMENTS Pursuing a strategic partner for a material interest in the Heartland Petrochemical Complex Announced exchange of the Empress II & V straddle plants for the Milk River pipeline system and 35 million Closed…
ACTION-BASED BUSINESS STRATEGY ENSURE FINANCIAL STRENGTH AND FLEXIBILITY Dividend reset retains over 0.5 billion of cash flow annually Suspended DRIP to eliminate shareholder dilution Entered new 1.0 billion committed credit…
DIVIDEND PROFILE Dividends per share Dividend reset provides additional financial flexibility Monthly dividend reset to 0.04 per share Over 0.5 billion of incremental cash or 0.48 on an annualized basis retained annually 1.69…
INCREASED FINANCIAL FLEXIBILITY Million Significant liquidity available Recourse Debt Maturity Profile* 2.5 billion of committed credit facilities Weighted average: cost 4.6% and maturity 7.0 years undrawn as at November 30, 2020…
HEARTLAND PETROCHEMICAL COMPLEX (HPC) Transformational growth opportunity Capacity to consume 22,000 b/d of propane to produce 525 kilotonnes per annum (KTA) of polypropylene (PP) Expected to add approximately 450-500 million of…
POLYPROPYLENE IS A PREMIUM PRODUCT USD per Tonne 2,500 North American PP to Edmonton Propane Price Differential 2,000 1,500 1,000 Spread 1,360 USD per Tonne 500 0 2013 2014 2015 2016 2017 2018 2019 IHS GP Homopolymer PP…
POLYPROPYLENE DEMAND North American PP Demand PP is the worlds single largest polymer Accounts for 30% of global demand Canada 7% Used in many common goods such as Mexico consumer packaging, automobile parts, 17% medical equipment,…
PROPANE PRODUCER VALUE PROPOSITION Benefits for propane producers: Offers a higher realized propane price relative to selling in the local, oversupplied market Creates ratable demand for propane Adds diversification to propane…
PP BUYER VALUE PROPOSITION Benefits for PP buyers: Offers lower realized PP feedstock price relative to buying on the spot market Provides supply diversification Allows vertical integration without capital outlay Commercial…
PROJECT STATUS Approximately 70% of the 4.0 billion project cost de-risked Based on lump-sum contracts, firm purchase orders, and substantially completed design and construction activities Project site remains active Increased…
OPERATIONAL EXPERTISE & READINESS Extensive NGL operating experience Full operational responsibility for the Cochrane straddle plant, as well as the Pioneer 1 & 2 offgas plants Management oversight of the Redwater Olefinic…
FINANCING STRATEGY Million Heartland Complex financing sources Total HPC cost of 4.0 billion Potential proceeds from a strategic partnership 2,900 2.5 billion of committed credit facilities undrawn as at November 30, 2020 Cash…
CENTRAL ALBERTA PIPELINE SYSTEM EXPANSION EDMONTON Successfully completed 180 million multi-phase expansion during 2020 on Phase 4: Mainline time and within budget Expansion HARDISTY Stettler station expansion included product…
OIL SANDS GROWTH OPPORTUNITIES Identified 2.8 billion of KEARL long-term growth opportunities FRONTIER DEBOTTLENECK SUNRISE PHASE 2 HORIZON & DEBOTTLENECK Over 2.3 million b/d of available ASPEN PHASE 1 & 2 capacity that can be…
NGL PROCESSING OPPORTUNITIES Cochrane expansion Potential to add 400 mmcf/d of processing capacity, increasing plant total to 2.9 bcf/d Strong inlet flows support expansion Acrylic acid & derivatives facility Opportunity to…
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CREDIT STRENGTH Canadian Revenue Resilient and diversified customer base YTD Q2 2020 Top 10 customers represent over 70% of revenue, of which 85% is investment grade Approximately 97% of oil sands revenue is 25% sourced from…
CAPITAL STRUCTURE Billion Target capital structure of 50% to 55% 8 sr. recourse debt to total capitalization Strong ratio of 45%*, well below our credit 6 facility covenant of 65% 1.3 billion of consolidated debt is non- recourse…
OIL SANDS TRANSPORTATION Three major pipeline systems Contracted capacity of 2.3 million b/d; IMPERIAL KEARL ultimate capacity of 4.6 million b/d AOSP HUSKY SUNRISE Over 3,300 km of pipeline, with 3.8 Polaris Pipeline Cold Lake…
NGL PROCESSING Large-scale NGL infrastructure Pioneer I & II Cochrane straddle plant strategically located on the NGTL System Boreal Pipeline Offgas Extraction Two offgas plants, Pioneer I & II, that Facility Cochrane Straddle…
CONVENTIONAL OIL PIPELINES Three major pipeline systems 3,900 km of pipeline and over 1.6 million barrels of storage capacity** Transported 160,000 b/d in Q3 2020 Bow River Pipeline Milk River Pipeline* Central Alberta Acquiring…
BULK LIQUID STORAGE Terminal Location Eight petroleum and petrochemical storage terminals in Denmark and Sweden Approximately 19 million barrels of SWEDEN storage capacity 99% utilization rate in Q3 2020 DENMARK Cost-of-service…
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GOVERNANCE Commitment to sustainable practices and operational excellence Issued second sustainability report in accordance with SASB, GRI and TCFD frameworks Sustainability Steering Committee comprised of CEO and senior…
ENVIRONMENT Offgas facilities process waste gas from oil sands upgraders Extracting a valuable liquids stream and removing 272,000 tonnes of GHG per year HPC-produced PP is expected to have a low GHG emissions profile PP is a fully…
SOCIAL Million Hours (000s) Commitment to diversity and inclusion 3,800 hours volunteered in 2019 Pledged support to BlackNorth initiative 4.0 Meaningful interactions with key 3.1 stakeholders 2.8 2.7 Indigenous Affairs, Code of…
LOOKING FORWARD Self-funded equity model, with significant liquidity available on 2.5 billion of committed credit facilities Focus on maintaining financial flexibility Continuing to progress construction and commercial…
HPC SITE Photo taken Q3 2020 37
CONTACT INFORMATION INTER PIPELINE LTD. SUITE 3200, 215 2ND STREET SW CALGARY, AB T2P 1M4 PHONE: 1 (866) 716 7473 PHONE: 1 (403) 290 6000 WEB: INTERPIPELINE.COM INVESTORRELATIONSINTERPIPELINE.COM 38 38
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