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Corporate Presentation – Inter Pipeline Ltd.

Inter Pipeline Ltd. · Mar 1, 2015 · 45 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Corporate Presentation – Inter Pipeline Ltd. – slide 1
    Corporate Presentation March 2015
  2. Corporate Presentation – Inter Pipeline Ltd. – slide 2
    Market Information Market Capitalization 11.2 billion Enterprise Value 15.8 billion Annualized Dividend 1.47/share Yield 4.4% Information as at close of markets on March 2, 2015 1
  3. Corporate Presentation – Inter Pipeline Ltd. – slide 3
    World Scale Energy Infrastructure Assets Oil Sands Conventional NGL Bulk Liquid Transportation Oil Pipelines Extraction Storage Over 2.2 million 3,800 km Process 40% of 19 million b/d of barrels of pipeline network natural gas…
  4. Corporate Presentation – Inter Pipeline Ltd. – slide 4
    Areas of Operation 2014 Annual EBITDA Canada Europe Fort McMurray 89% 11% ALBERTA SASKATCHEWAN SCOTLAND DENMARK Edmonton North Sea Hardisty Cochrane IRELAND B.C. Extraction ENGLAND GERMANY Plant Calgary Empress…
  5. Corporate Presentation – Inter Pipeline Ltd. – slide 5
    Investment Value Proposition Strategic Financial Infrastructure Financial Strength Strength Assets Majority underpinned Solid balance sheet by stable cost of service revenue Strong Investor Excellent access to Returns capital…
  6. Corporate Presentation – Inter Pipeline Ltd. – slide 6
    Dividend Growth /Share 1.47 1.32 1.18 1.06 0.97 0.91 0.84 0.84 0.85 0.80 0.75 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015E* *Based on actual dividends to February and 0.1225/share per month thereafter 5
  7. Corporate Presentation – Inter Pipeline Ltd. – slide 7
    5-Year Dividend CAGR 18.0% 17.0% 16.0% 14.0% 12.0% 10.2% 10.0% 8.7% 8.0% 6.0% 6.0% 5.4% 4.0% 2.2% 2.0% 0.3% 0.0% 0.0% Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 CAGR from 2010 to 2015E; 2015E is based on current…
  8. Corporate Presentation – Inter Pipeline Ltd. – slide 8
    Enterprise Growth Million 18,000 16,315 16,000 14,000 11,885 12,000 10,000 9,594 8,000 7,593 6,651 6,000 5,372 3,984 3,922 4,000 2,213 2,677 2,510 2,000 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Market…
  9. Corporate Presentation – Inter Pipeline Ltd. – slide 9
    Recent Developments Completed construction of two major expansion projects on the Polaris and Cold Lake pipeline FCCL expansion project systems 850,000 b/d commitment Announced 400 million CNR Kirby South 80,000 b/d…
  10. Corporate Presentation – Inter Pipeline Ltd. – slide 10
    2014 Annual EBITDA 48% 9
  11. Corporate Presentation – Inter Pipeline Ltd. – slide 11
    Oil Sands Transportation Three major oil sands pipeline AOSP Imperial Kearl systems with combined ultimate Suncor Husky Sunrise capacity of 4.6 million b/d Fort McMurray Jacos/Nexen AOC Hangingstone Corridor Hangingstone Cold…
  12. Corporate Presentation – Inter Pipeline Ltd. – slide 12
    Polaris Pipeline Capacity 000s b/d 1,300 800 1,300 Available Capacity 700 760 600 10 7 5 18 30 500 120 400 Contracted 350 Volumes 300 540 200 100 0 FCCL Imperial Husky CNR Kirby Suncor JACOS AOC Ultimate…
  13. Corporate Presentation – Inter Pipeline Ltd. – slide 13
    Cold Lake Pipeline Capacity 000s b/d 1,900 1,800 2,000 Available Capacity 1,600 673 1,400 63 14 1,200 500 1,000 Contracted 800 Volumes 650 1,227 600 400 200 0 Original Cold FCCL CNR Kirby South Osum Orion Ultimate…
  14. Corporate Presentation – Inter Pipeline Ltd. – slide 14
    Corridor Pipeline Capacity 000s b/d 1,400 1,400 1,200 1,000 Potential 935 3rd Party Capacity** 800 600 465 400 348 Contracted 465 Volumes 200 0 Current Throughput* Installed Capacity Ultimate Capacity *For the year…
  15. Corporate Presentation – Inter Pipeline Ltd. – slide 15
    EBITDA Growth by Pipeline System Million 350 300 250 200 150 100 50 0 2008 2009 2010 2011 2012 2013 2014 Corridor Cold Lake Polaris 14
  16. Corporate Presentation – Inter Pipeline Ltd. – slide 16
    Oil Sands Project Summary Capital LT Annual Pipeline Contract Implied InService Cost EBITDA Project System Type Multiple (mm) (mm) Cold Lake FCCL Foster Creek & Christina Lake COS Yes 2,700 280 9.6x & Polaris Cold Lake FCCL…
  17. Corporate Presentation – Inter Pipeline Ltd. – slide 17
    Oil Sands Growth Opportunities Identified 4+ billion of Imperial Kearl Husky Sunrise Expansion potential opportunities Imperial Aspen from 2015+ Cenovus - Telephone Lake Fort McMurray AOC Hangingstone Identified 1.3 million b/d…
  18. Corporate Presentation – Inter Pipeline Ltd. – slide 18
    Services Integration: Terminals & Storage Pipeline capacity (million b/d) Pipeline Stream (b/d) Lamont diluent up to 1.6 Lamont blend up to 1.5 Hardisty blend up to 1.4 Multi-Modal Storage Connections Cheecham diluent up to…
  19. Corporate Presentation – Inter Pipeline Ltd. – slide 19
    Oil Sands Volume Growth Bitumen 000s b/d Diluent 000s b/d 5,000 1,500 4,000 1,200 3,000 900 2,000 600 1,000 300 0 0 2008 2010 2012 2014F 2016F 2018F 2020F 2022F 2024F 2026F 2028F 2030F Bitumen Diluent Source:…
  20. Corporate Presentation – Inter Pipeline Ltd. – slide 20
    Oil Sands Forecast vs. Capacity Million b/d Heavy Blend + SCO Supply to Market 7.0 Northern Gateway 6.0 TCPL Energy East 5.0 TMPL Expansion Production / Capacity 4.0 Keystone XL Rail (Expansion) 3.0 Alberta Clipper…
  21. Corporate Presentation – Inter Pipeline Ltd. – slide 21
    2014 Annual EBITDA 24% 20
  22. Corporate Presentation – Inter Pipeline Ltd. – slide 22
    Conventional Pipelines Edmonton 3,800 km of oil pipelines ALBERTA SASK. servicing over 100 producers Hardisty 100% fee based business, excluding midstream Stettler marketing Kerrobert Growing production from Viking, Pekisko,…
  23. Corporate Presentation – Inter Pipeline Ltd. – slide 23
    Conventional EBITDA Million 175 150 125 100 75 50 25 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Oil Gathering Hardisty Midstream Marketing 22
  24. Corporate Presentation – Inter Pipeline Ltd. – slide 24
    Conventional Throughput 000s b/d 225 205 200 196 187 37 34 169 170 176 175 165 35 23 26 28 150 22 33 68 125 33 33 36 41 54 100 75 129 113 110 108 107 50 98 101 25 0 2008 2009 2010 2011 2012 2013 2014 Bow River…
  25. Corporate Presentation – Inter Pipeline Ltd. – slide 25
    Growth Opportunities Edmonton System expansions ALBERTA Hardisty Merchant storage additions SASK. Stettler Kerrobert Rail connections Kindersley Hardisty South transmission expansion Calgary Brooks MSPL expansion…
  26. Corporate Presentation – Inter Pipeline Ltd. – slide 26
    Saskatchewan Viking Growth Number of Wells Production (b/d) 1,200 60,000 IPL pipeline services Viking producers 1,000 50,000 100 million expansion in progress 800 40,000 Increases available capacity by 95,000 b/d 600 30,000…
  27. Corporate Presentation – Inter Pipeline Ltd. – slide 27
    2014 Annual EBITDA 17% 26
  28. Corporate Presentation – Inter Pipeline Ltd. – slide 28
    NGL Extraction Three large scale extraction Edmonton ALBERTA plants produced 97,600 b/d of NGLs* Strategically located on the TransCanada Alberta system Cochrane 2.5 bcf/d 6.2 bcf/d of extraction Capacity SASKATCHEWAN capacity…
  29. Corporate Presentation – Inter Pipeline Ltd. – slide 29
    Historical Frac Spread Frac Spread: Mont Belvieu NGL less AECO Natural Gas US / US Gal 1.60 1.40 1.20 Closed extraction acquisition 1.00 0.80 15 year average frac spread: 58.7 US cents 0.60 0.40 0.20 0.00 Jan-04…
  30. Corporate Presentation – Inter Pipeline Ltd. – slide 30
    Future Opportunities New developments require additional infrastructure ALBERTA SASK. Leverage IPLs strengths in: Pipelines MONTNEY Plant operations Terminals Major project DUVERNAY development Edmonton Opportunities to…
  31. Corporate Presentation – Inter Pipeline Ltd. – slide 31
    2014 Annual EBITDA 11% 30
  32. Corporate Presentation – Inter Pipeline Ltd. – slide 32
    Bulk Liquid Storage SCOTLAND 12 petroleum and petrochemical DENMARK storage terminals NORTHERN North Sea IRELAND Tyne Seal Sands Riverside Approximately 19 million barrels WALES Asnaes Immingham West Immingham East…
  33. Corporate Presentation – Inter Pipeline Ltd. – slide 33
    Strategic Drivers Long-life infrastructure assets Strong organic investment potential Geographic diversification, mature markets Stable political and regulatory environments Fee-based cash flow Experienced operations and…
  34. Corporate Presentation – Inter Pipeline Ltd. – slide 34
    Capacity Utilization 100% Inter Terminals UK 75% 50% 25% 0% Q12006 2006 Q1 2007 2007 2008 Q1 2008 Q12009 2009 Q12010 2010 2011 Q1 2011 2012 Q1 2012 Q12013 2013 2014 Q1 2014 100% Inter Terminals Denmark 75%…
  35. Corporate Presentation – Inter Pipeline Ltd. – slide 35
    Acquisition Growth Opportunities Aquisition opportunities in NW Europe: Conversion of refinery tank storage to regional import terminals Opportunities to acquire oil distribution terminals as major oil companies focus upstream…
  36. Corporate Presentation – Inter Pipeline Ltd. – slide 36
    Organic Growth Opportunities 57,000 bbl new stainless steel chemical tanks under construction in Germany Assessing demand for additional chemical tankage at Seal Sands and Tyne Tank upgrades to provide storage for a broader…
  37. Corporate Presentation – Inter Pipeline Ltd. – slide 37
    36
  38. Corporate Presentation – Inter Pipeline Ltd. – slide 38
    Financial Discipline Recourse Debt to Total Capitalization 60% Capital Structure* as at December 31, 2014 50% 40% 30% 20% 20% 10% 45% 0% 2009 2010 2011 2012 2013 2014 35% Conservative Payout Ratio** 100% 80% 60%…
  39. Corporate Presentation – Inter Pipeline Ltd. – slide 39
    Capital Markets Activity Excellent access to capital markets MTN Debt Maturity Profile 2,325 million medium term notes issued 2044 2017 22% 17% 900 million MTNs issued in 2018 May 2014 9% 2022 17% 2020 Over 1 billion in equity…
  40. Corporate Presentation – Inter Pipeline Ltd. – slide 40
    EBITDA by Business Segment Million 1,100 1,000 900 800 700 600 500 400 300 200 100 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015F* Oil Sands Transportation Conventional Oil Pipelines NGL Extraction…
  41. Corporate Presentation – Inter Pipeline Ltd. – slide 41
    Projected EBITDA by Contract Type 2014 Annual EBITDA Projected 2015 Annual EBITDA 15% 10% 35% 60% 30% 50% 37% Cost of Service Fee Based Commodity Based No volume or commodity price Volume & operating cost Volume and…
  42. Corporate Presentation – Inter Pipeline Ltd. – slide 42
    EBITDA Stability Inter Pipeline Mid Cap Peers 2015F EBITDA 2015F EBITDA* 10% 35% 30% 60% 38% 27% Cost of Service Fee Based Commodity Based No volume or commodity price Volume & operating cost Volume and commodity price…
  43. Corporate Presentation – Inter Pipeline Ltd. – slide 43
    Dividend Stability Million 600 500 400 300 200 100 0 2009 2009 2010 2010 2011 2011 2012 2012 2013 2013 2014 2014 FFO Dividend FFO Dividend FFO Dividend FFO Dividend FFO Dividend FFO Dividend Oil Sands…
  44. Corporate Presentation – Inter Pipeline Ltd. – slide 44
    Looking Forward Solid track record of increasing shareholder value Continued focus on developing over 4 billion of major oil sands growth opportunities Long-term contracts expected to generate 60% of consolidated EBITDA by…
  45. Corporate Presentation – Inter Pipeline Ltd. – slide 45
    Contact Information Christian Bayle President & CEO Brent Heagy Chief Financial Officer Jeremy Roberge Vice President, Capital Markets investorrelationsinterpipeline.com Inter Pipeline Ltd. Suite 2600, 237 4th Avenue SW…

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