Corporate Structure Enbridge Inc. owns 34% of EEP Enbridge Inc. 11.7% of listed shares (NYSE: ENB) 100% voting interest (Baa1 / A-) Enbridge Energy Management, L.L.C. 2% GP interest 88.3% of (NYSE: EEQ) 29.9% LP interest…
Investment Proposition Strong Business Fundamentals: Strength & Stability Migrating to a Much Lower Risk Business Model Strong General Partner Stable Distributions & Prudent Growth Attractive Yield 4 4
Investment Highlights Commercially Enterprise Value - Strong Investment Grade secured organic Low-risk transformative Large-Cap MLP (S&P, Moodys, DBRS) growth underway growth underway Highlights Total Shareholder Return One of the…
Distribution Growth Target Organic growth platform supports distribution growth Momentum to 2% - 5% Annual Growth Target achieve higher end of growth target 2.7% 4.2% - 3.8% 3.6% 2.1% - 2.1% 2007 2008 2009 2010 2011 2012…
Strength of GP Enbridge Inc. ENB: North American leader in energy delivery Owner and operator of largest crude oil pipeline system 43 billion equity market cap Strong investment grade (A-, Baa1) Proven track record: industry…
Strategic Position Competitive Advantages Refiners Norman Wells Access to multiple crude streams Producers WCSB Access to multiple premium markets Zama Fort McMurray Flexible system Edmonton Hardisty Size and scale unmatched…
WCSB Supply Forecast vs. Pipeline Takeaway Capacity* MMb/d 9.0 Keystone XL Supply Forecast ENB Northern Gateway 8.0 TransMountain Expansion Energy East 7.0 6.0 5.0 4.0 3.0 ENB 2.0 1.0 OTHER 0.0 2014 Enbridge Forecast…
Bakken Crude Supply and Pipeline Takeaway Capacity Kbpd 2,500 Range of External Forecasts 2,000 3rd-Party Proposed 1,500 1,000 Enbridge - Sandpiper Enbridge - Bakken 500 3rd Party Pipes 0 Local Refining High Case…
North American Crude Oil Price Fundamentals Significant Infrastructure Investment Opportunities Light Differentials 11/06/14 1/30/13 Asia Brent WTI 4 19 85 68 Alberta Light LLS WTI 3 18 76 62 WCS Asia WTI 6 22 WTI Bakken 8 3…
Market Access Well Advanced Three major initiatives provide 1.7 MMbpd of increased market access and diversification +50 kbpd +250 kbpd +50 kbpd +250 +80 kbpd kbpd +50 kbpd Western USGC Access Eastern Access +300 Light Oil…
Market Access Programs Solid project execution to-date 2015 organic growth on target Fort McMurray 2013 Bakken Pipeline Expansion+ Berthold Rail - EEP Line 5 Expansion (+50 kbpd) - EEP Edmonton Line 62 Expansion (+105 kbpd) - EEP…
Project Execution 2014 In-Service Eastern Access: Ln 6B Replacement 160 miles of Line 6B replacement entered service in May Remaining 50 mile replacement entered service October 2014 2.1 billion capital Mainline Expansions Line…
Bakken Expansion Sandpiper Pipeline Hardisty Regina Gretna Montreal Clearbrook Superior Scope: 610 mile, 24/30 pipeline Capacity: 225 kbpd/375 kbpd Target in-service: 2017 Westover Marathon Funding: Sarnia 37.5% of construction…
Line 3 Replacement Increases system reliability and flexibility ENB Funded EEP/ENB Joint Funded EEP Capital Investment: border to Superior 2.6 billion capital to be joint funded with ENB Expected Completion: 2nd Half of…
Priority One Focus on Safety & Operational Reliability Operational Risk Management Program Third Party Damage Incident Response Avoidance and Capacity Detection Leak Detection Employee and Capability and Contractor Control…
Executed Drop-Down to MEP Drop-Downs Bolster Funding Program Drop-down proceeds largely mitigate equity funding requirements Executed Drop-Down to MEP July 1, 2014 o Sold 12.6% interest in Midcoast Operating for 350 million Drop-down…
Natural Gas and NGL Midstream Business Key Assets Natural Gas Deliveries 2.5 bcf/d Gathering and Transportation Pipelines 11,400 miles Anadarko System Ajax Processing Plant Processing Capacity (26 plants) 2.3 Bcf/d in service 3Q…
Equity Restructure EEP Equity Restructuring Prospective Benefits Improves EEPs cost of capital Increases distributable cash available to LP unit holders Prior Structure Establishes momentum for distribution growth Enhances…
Drop Downs Boost Distributable Cash Flow Initial Drop Down: 900 million drop down proposal from Enbridge 66.7% interest in the U.S. segment of Alberta Clipper pipeline (Line 67) Immediately accretive to DCF/unit 3% No public…
Funding Plan 2014-2017 (unconsolidated) Equity funding requirements manageable (billion) Uses/(Sources) Secured Growth Capital 9.4 Maintenance Capital 0.4 Joint Funding Call Back on Lakehead Expansions 0.7 10.5 ENB Joint…
Long-Term ENB Liquids Drop-Down Potential: 10 Billion + Distributable Cash Examples: Capital Cost/ Pipeline System Upsize Option Book Value* Eastern Access 0.4 (2016/2017) 1.5 Mainline Expansion 0.4 (2016/2017) 1.4 Alberta…
Key Takeaways Strategic position supported by strong business fundamentals Secured Liquids projects collectively transform the Partnership to an even lower risk business model Minimal equity funding requirements Initial drop-down…
Delivering Prudent Growth Organic growth secured by long-term low risk commercial structures Growth Net Capital Target (MM) Capital EEP In-Service Risk Profile Liquids: Bakken Growth Projects Long-term Ship-or Pay/ Cost of…
Low-Risk Sustainable Growth Distribution coverage strengthens as growth projects enter service Expected Project In-Service Period 1H13 2H13 1H14 2H14 1H15 2H15 1H16 2H16 1H17 2H17 Liquids Projects (1) Bakken Pipeline Expansion…
Strengthening Distribution Coverage Secured growth projects improve distribution coverage 1.25x Long Range 1.00x Coverage Target 0.75x Accretive growth underway Coverage* Backed by long-term, low risk commercial…
Strategically Aligned Sponsor Enbridge is strategically aligned with and invests in EEP Alleviate Equity Overhang Enhance Prospective Cost of Capital Joint funding agreements Re-establish EEP as strong 1.2 billion preferred unit…
Equity Restructure Highlights Before Equity Restructure After Equity Restructure Existing Incentive Distribution Rights Portion of Percentage Percentage New Incentive Distribution Units Quarterly Distributed Distributed Distribution…
Joint Funding Agreements Joint funding enhances Partnerships financing flexibility Enbridge Inc. Joint Funding EEP Funded ENB Funded MPC Funded Eastern Access and US Mainline Expansions Eastern Access 1,250 Enbridge Inc. to fund…
Bakken Infrastructure EEP pipeline takeaway will reach 580 kbpd with next phase of expansion Enbridge Mainline Saskatchewan System (ENF) North Dakota System (EEP) 210 Mb/d Bakken Pipeline (EEP, ENF) Manitoba 145 Mb/d Bakken…
Market Access Eastern Access Enhances security of supply and refinery competitiveness Eastern Access Projects Timing 1. Line 5 Expansion Completed + 50kbpd 2. Spearhead North Completed Expansion + 105kbpd 3. Line 6B Replacement…
Market Access Western USGC Access Enbridges Western USGC Access is the linchpin for Canadian liquids development Western USGC Access Projects Timing 1. Mainline Expansions - Alberta Clipper + In-progress 120 kbpd - Southern Access…
Market Access Light Oil Market Access Competitive transportation cost to multiple markets for Canadian light oil and Bakken producers relative to differentials LOMA Projects Timing 1. Mainline Expansions 2014 / 2015 2. Line 9…
Western Canada Supply Growth Forecast Western Canada Production MMbpd 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 Oil Sands Conventional Heavy Conventional Light & Medium Pentanes/Condensate Oil sands production projected to…
Enbridge Target Markets PADD III, Eastern Canada & PADD I hold the bulk of displaceable oil supply 40
ENB: Largest Oil Sands Service Provider Regional Oil Sands Total Secured Capital = Projects Timing 6.0 B 1. Athabasca Twin 2017 2. AOC Hangingstone 2015 Lateral 3. Surmont Cheecham 2016 Facilities 4. Woodland Pipeline 2015…
Capacity Post 2017 Continue to dominate PADD II and grow market access to premium markets +250 kbpd +50 kbpd 2850 kbpd +375 kbpd +300 kbpd +800 kbpd Light Heavy 42
Executing with Confidence Proven competencies enable repeatable performance Executed Projects Projects in Execution 20 39 27 27 billion projects billion projects 33 of 39 projects 23 of 27 projects under/on schedule under/on…
Safety and Operational Reliability Risk Management Risk Policy, Risk Framework, Risk Culture Survey + Training Inline inspection (ILI) Significant dig program: pipeline joint examination followed with non-destructive testing…
Impact of Line 6B Incident Estimated Costs* As of June 30, Booked in Q3 Total to Date 2014 2014 Total Costs 1,156 52 1,208 Less: Insurance Recoveries 547 0 547 Total Normalized 609 52 661 Unaudited amounts, in millions.…
Tax Considerations EEQ EEP Allocated Taxable Income Mutual Fund Limitations Unrelated Business Income Tax Schedule K-1 Form 1099 * State Filing Obligations * Form 1099 issued for tax year during which shares are disposed . 46
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