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Corporate Presentation – Veresen Inc.

Veresen Inc. · Sep 1, 2014 · 26 slides

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Slides

  1. Corporate Presentation – Veresen Inc. – slide 1
    Corporate Presentation September 2014
  2. Corporate Presentation – Veresen Inc. – slide 2
    Driving Synergies Across our Business Lines Pipelines Midstream Power LNG Focused on high-quality, strategic, natural gas infrastructure assets which play a key role in meeting North Americas energy needs 3
  3. Corporate Presentation – Veresen Inc. – slide 3
    A Clear Growth Strategy Optimize our existing assets Drive productivity Recontracting Alliance Grow where we have strategic advantage Midstream: Western Canada and Alliance Pipeline/Aux Sable footprint Pipelines: Alliance…
  4. Corporate Presentation – Veresen Inc. – slide 4
    Alliance Re-contracting Fundamentals 6 bcf/d of natural gas currently produced in gathering area New rich gas being developed near pipeline system from growing supply basins in western Canada and North Dakota, including the…
  5. Corporate Presentation – Veresen Inc. – slide 5
    Alliance/Aux Sable Value Proposition Western Canada remains a significant net exporter of natural gas: high productivity rich gas wells are more than replacing production declines from dry gas areas Immediate access to market for…
  6. Corporate Presentation – Veresen Inc. – slide 6
    Alliance Re-contracting Status Alliance filed an application with Canada's NEB for regulatory approval of the tolls and tariff provisions required to implement its proposed new services in May 2014 New services reflect extensive…
  7. Corporate Presentation – Veresen Inc. – slide 7
    Aux Sable Rich Gas Premium (RGP) Agreements Aux Sable continues to negotiate new RGP agreements with producers who are developing new liquids-rich fields in areas within Alliances capture zone Aux Sable holds RGP agreements with:…
  8. Corporate Presentation – Veresen Inc. – slide 8
    Jordan Cove LNG Project Terminal Pipeline 6 MMTPA facility expandable to 9 MMTPA Initial design capacity of 1.2 Bcf/d 320-acre site, two 160,000 m3 containment LNG 234-mile, 36-inch diameter pipeline tanks, marine facility and power…
  9. Corporate Presentation – Veresen Inc. – slide 9
    Jordan Cove has the Essential Characteristics for an Optimal Export Facility Diversified gas supply from both Canada and the United States, primarily accessed through existing gas pipeline systems Advantaged port; short access to…
  10. Corporate Presentation – Veresen Inc. – slide 10
    Jordan Cove is Highly Competitive with Unique Advantages 9 shipping days to Asia Jordan Coves shipping costs are a significant economic advantage 9 shipping days to Asia (4300 nmi) Australia LNG 7 to 9 shipping days to…
  11. Corporate Presentation – Veresen Inc. – slide 11
    Ideal Location on West Coast of North America Short egress to and from the Jordan Cove slip to the Pacific Ocean 1.5 hour tug assisted transit along clear, open 7-mile channel International Port of Coos Bay: U.S. Federal…
  12. Corporate Presentation – Veresen Inc. – slide 12
    Jordan Cove LNG, in Southwest Oregon, Can Be Achieved Coos Bay, Oregon, is the best port for exports of high-value LNG to Asia Pacific markets Local land use permits for terminal and pipeline are in hand Development is highly…
  13. Corporate Presentation – Veresen Inc. – slide 13
    Applications Approved for Long-term Canadian Natural Gas Supplies to Flow through Jordan Cove LNG United States: Department of Energy Approved Export application to allow for exports of LNG to consuming nations (FTA and non-FTA)…
  14. Corporate Presentation – Veresen Inc. – slide 14
    Path Forward to a Final Investment Decision and In-Service: Jordan Cove LNG and Pacific Connector Gas Pipeline In Progress: FERC Notice to Proceed Regulatory All state and federal permits Final EPC contract in EPC Contract…
  15. Corporate Presentation – Veresen Inc. – slide 15
    FERC Regulatory Process Project Status Pre-filing Review of Application Notice of Schedule Final EIS date FERC Draft EIS published and public comment period Final EIS published Commissioners vote and Order issued Applicant files…
  16. Corporate Presentation – Veresen Inc. – slide 16
    EBITDA(1) by Business Segment(2) 500 ( millions) 450 400 Power 350 300 Midstream 250 Pipelines 200 150 (1) Non-GAAP measure; see MD&A 100 (2) Before Veresen corporate costs 50 (3) Based on midpoint of guidance published…
  17. Corporate Presentation – Veresen Inc. – slide 17
    Distributable Cash per Share () 1.50 1.25 Dividends paid 1.00 Aux Sable Variable Aux Sable Fixed Non-Aux Sable, net of tax 0.75 0.50 0.25 (1) Based on midpoint of guidance 0.00 published August 6, 2014 2009 2010…
  18. Corporate Presentation – Veresen Inc. – slide 18
    Distributable Cash Guidance 2014 Guidance(1) (/Share) Low High Alliance 0.67 0.68 AEGS 0.09 0.09 Hythe/Steeprock 0.34 0.35 Aux Sable Fixed 0.16 0.18 Variable 0.04 0.17 Power 0.19 0.22 General and administrative (0.14) (0.13) Debt…
  19. Corporate Presentation – Veresen Inc. – slide 19
    Supplementary Information
  20. Corporate Presentation – Veresen Inc. – slide 20
    Pipelines Alliance Pipeline 50% ownership; 3,000-km high-pressure, rich-gas pipeline Linked with Aux Sable to form a unique, high value, total energy delivery system Firm capacity of 1.325 bcf/d; expandable to 1.825 bcf/d at…
  21. Corporate Presentation – Veresen Inc. – slide 21
    Alberta Ethane Gathering System (AEGS) 100% ownership (since 2004; system constructed in 1977, with major contract- based expansion in 1999 1,334 km integrated system connecting ethane sources to storage and petrochemical…
  22. Corporate Presentation – Veresen Inc. – slide 22
    Midstream Aux Sable (Chicago) 42.7% ownership; NGL extraction, fractionation and delivery system; fractionated into ethane, propane, butane, and condensate Capable of processing 2.1 bcf/d of gas and can produce over 100,000 bbls/d of…
  23. Corporate Presentation – Veresen Inc. – slide 23
    Midstream: Hythe/Steeprock Growth Opportunities Veresens Hythe plant is the largest processing facility in the south Montney Tie-ins have been completed to allow for 40 mmscf/d sour expansion to be performed online Options…
  24. Corporate Presentation – Veresen Inc. – slide 24
    Midstream: Leveraging our Strategic Footprint Large, underlying resource with multi-zone development potential (Montney, Cadomin, Doig) Encana holds over 1 million acres of land and 500 mmcf/d of production in Cutbank…
  25. Corporate Presentation – Veresen Inc. – slide 25
    Power 1,060 MW (gross) in operation, construction or development Cash flows primarily generated under long- term contracts (average remaining term of 10.9 years for operating assets and 26.6 years for assets under construction)…
  26. Corporate Presentation – Veresen Inc. – slide 26
    www.vereseninc.com Investor Relations Phone: 403 213 3633 Email: investor-relationsvereseninc.com

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