Enbridge Energy Partners, L.P. Investment Community Presentation March 2015 enbridg e p a rtn e r s . c o m
Investment Proposition Strong Business Fundamentals: Strength & Stability Migrating to a Much Lower Risk Business Model Strong General Partner Stable Distributions & Prudent Growth Attractive Yield Market Cap* 17.3B Yield*…
Investment Highlights Strong Investment Grade Commercially secured Enterprise Value - Low-risk transformative (S&P, Moodys, DBRS) organic growth Large-Cap MLP growth underway underway Highlights Total Unitholder Return One of…
Strength Strength ofof GPGP Enbridge Enbridge Inc. Inc. ENB: North American leader in energy delivery Owner and operator of largest crude oil pipeline system 41 billion equity market cap Strong investment grade (A-, Baa1)…
Strategic Position Competitive Advantages Refiners: Access to multiple crude streams Norman Wells Producers: Access to multiple premium markets Zama WCSB Flexible system Fort McMurray Size and scale unmatched: Will expand to…
North American Crude Oil Pricing Differentials Enbridge is the low cost transportation provider and we will continue to grow our pipeline systems Differentials Alberta Light Pacific Peak* Current 49 WCS - Maya (16) (10) WCS West…
WCSB Crude Oil Fundamentals and Outlook Long-term investment horizon of Western Canadian producers 6,000 Jan 2015: CAPP updated production forecast 5,000 4,000 Near Term Oil Sands kbpd 3,000 Near Term Projects Oil…
Bakken Crude Supply Forecast vs Take Away Capacity 3,500 3,000 2,500 Rail Transport Capacity 2,000 kbpd 1,500 1,000 3rd Party Pipelines 500 Enbridge Pipelines Local Refinery 0 2015 2016 2017 2018 2019 2020…
Rail Perspective Pipelines provide the most economical transportation to market kbpd kbpd Forecast Rail Volumes Rail Transportation Costs 800 From Western Canada 700 600 8.65 to Western Canada 500 16.05 400 300 200 16.30 100…
Strong Commercial & Fundamental Underpinnings Defensive nature of cash flows position EEP to navigate through commodity price uncertainty Low-risk business model largely mitigates volume sensitivity 2015e EBITDA Demand for crude…
Market Access Well Advanced Transformative low-risk organic growth expected to provide substantial cash flow growth Three major initiatives provide 1.7 MMbpd of increased market access and diversification +50 kbpd +250 kbpd +50…
Low Cost Expansion & Extension Opportunities Low cost phased expansions are attractive in a low crude price environment NTD: Map to Market Access Opportunities kbpd be updated 1 Eastern Gulf Coast Access 350+ 2 3 2 Flanagan…
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…
Line 3 Replacement ENB Funded EEP/ENB Joint Funded EEP Capital Investment: border to Superior 2.6 billion capital to be joint funded with ENB Expected Completion: Late 2017 30 year Cost-of-Service 15 year primary term…
Risk Profile Low Risk Business Model Defensive nature of cash flows position EEP to navigate through commodity price uncertainty Unconsolidated View 2018e 2015e 32% 27% 18% Crude oil projects progressively transform…
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…
Natural Gas and NGL Midstream Business Key Assets Anadarko System Natural Gas Deliveries 2.2 bcf/d Secured new demand- Gathering and Transportation Pipelines 11,100 miles based volumes from nearby play Processing Capacity (25 plants)…
Drop Downs Boost Distributable Cash Flow Substantial drop down opportunities from ENB supports Partnerships long-term growth outlook Initial Drop Down: 1 billion drop down from Enbridge closed 1/2/2015 66.7% interest in the U.S.…
Enbridge Liquids Pipelines 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…
Key Takeaways Low-risk business model Well positioned in current uncertain commodity price environment Targeting 2% 5% annual distribution growth Transformative growth underway Organic growth on-track: coverage continues to…
Supplemental Slides Enbridge Energy Partners, L.P. Investment Community Presentation March 2015
Corporate Structure Enbridge Inc. owns 43% 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 (NYSE: EEQ) 38.8% LP interest (indirect)…
Financial Outlook 2015 Growing Financial Strength Earnings & Cash Flow Outlook Liquids Projects Deliver EBITDA Growth 2,000 Enbridge Energy Partners ( millions) 2014 2015e 1,500 millions Adjusted EBITDA(1) 1,551.0 1,680 -…
Market Access Growth Projects On-Track Organic growth projects deliver low-risk, highly certain cash flow growth Distribution coverage strengthens as growth projects enter service 2015 Project Capital Timing In-service (MM)1 Line…
Low Risk Earnings and Cash Flow Growth 2015 Adjusted EBITDA forecasted to increase 12% over 2014 2015 Earnings and Cash Flow Outlook ( MM) 1,800 1,700 1,600 Adjusted EBITDA1,2 1,500 1,400 1,300 1,200 1,100 1,000 Eastern…
Delivering Prudent Growth Growth Net Capital Target (MM) Capital EEP In-Service Risk Profile Liquids: Bakken Growth Projects Long-term Ship-or Pay/ Cost of Sandpiper 2,600 1,625 2017 Service Eastern Access (1) 30 year Cost of…
Equity Restructure EEP Equity Restructuring Prospective Benefits Improves EEPs cost of capital Increases distributable cash available to LP unit holders Prior Establishes momentum for Structure distribution growth Enhances…
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…
Market Access Program 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…
Bakken Infrastructure EEP pipeline takeaway will reach 580 kbpd with next phase of expansion Enbridge Mainline Saskatchewan System (ENF) North Dakota System (EEP) 210 kbpd Bakken Pipeline (EEP, ENF) 145 kbpd Manitoba 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…
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 36 enbridg e p ar tn e r s . c o m
ENB: Largest Oil Sands Service Provider Regional Oil Sands Total Secured Capital = Projects Timing 6.0 B 1. Athabasca Twin 2017 2. AOC Hangingstone 2H 2015 Lateral 3. Surmont Cheecham Q4 2014/ Facilities Q1 2015 4. Woodland…
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…
Impact of Line 6B Incident Estimated Costs* As of Booked in Q4 September 30, Total to Date 2014 2014 Total Costs 1,208 1 1,209 Less: Insurance Recoveries 547 0 547 Total Normalized 661 1 662 Unaudited, 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…
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