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Investment Community Presentation – Enbridge Income Fund Holdings Inc.

Enbridge Income Fund Holdings Inc. · Mar 1, 2015 · 42 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. Investment Community Presentation – Enbridge Income Fund Holdings Inc. – slide 1
    Enbridge Income Fund Holdings Inc. Investment Community Presentation Designed for Strength and Stability; Positioned for Growth March 2015
  2. Investment Community Presentation – Enbridge Income Fund Holdings Inc. – slide 2
    Designed for Strength and Stability 3
  3. Investment Community Presentation – Enbridge Income Fund Holdings Inc. – slide 3
    Operating as Designed Recently completed 1.76 B acquisition and 12.1% dividend increase Largest drop down in the Funds history and third in the past 4 years Acquired assets performing as expected Acquisition attributes consistent…
  4. Investment Community Presentation – Enbridge Income Fund Holdings Inc. – slide 4
    Alliance Pipeline U.S. Successful re-contracting strategy Alliance Pipeline U.S. Benefits Increased stake in key natural gas and NGL infrastructure Proximity to prolific liquids-rich Bakken play Expansion capability to 2.1 Bcf/d…
  5. Investment Community Presentation – Enbridge Income Fund Holdings Inc. – slide 5
    Southern Lights Pipeline Long-term contracted low-risk cash flow Southern Lights Benefits Scheduled quarterly distributions for 25 years Key supply source for Oil Sands diluent demand Minimal operational risk Enbridge Inc. funded…
  6. Investment Community Presentation – Enbridge Income Fund Holdings Inc. – slide 6
    Positioned for Industry Leading Growth The Enbridge opportunity would transform the Fund into the Premier Canadian, Liquids Focused, High Payout Company. 7
  7. Investment Community Presentation – Enbridge Income Fund Holdings Inc. – slide 7
    Proposed Opportunity Transformational drop-down from Enbridge Inc. Enbridge Inc. has proposed to transfer its Canadian Liquids Pipelines business and remaining Canadian renewable assets to the Fund. Canadian Liquids Pipeline…
  8. Investment Community Presentation – Enbridge Income Fund Holdings Inc. – slide 8
    Proposed Opportunity Enhances ENFs value proposition Value Drivers Transformational, creating best-in-class Canadian liquids infrastructure entity Higher future dividend growth (10%) and transparency Strong platform for organic…
  9. Investment Community Presentation – Enbridge Income Fund Holdings Inc. – slide 9
    Proposed Opportunity Canadian Liquids Pipeline Assets - Mainline Asset description Six adjacent pipelines originating in western Canada that deliver into the US system Lines 7,8, 9, 10 and 11 that deliver into Eastern Canada and the…
  10. Investment Community Presentation – Enbridge Income Fund Holdings Inc. – slide 10
    Proposed Opportunity Canadian Liquids Pipeline Assets Regional Pipelines Asset description Wood Buffalo Pipeline Waupisoo Pipeline Athabasca Pipeline Woodland Pipeline 50% Norealis Pipeline Athabasca Twin Pipeline & Expansion…
  11. Investment Community Presentation – Enbridge Income Fund Holdings Inc. – slide 11
    Proposed Opportunity Transparent, reliable and low-risk embedded growth capital plan Alberta Regional Norealis Pipeline 15B Surmont Phase 2 Expansion Woodland Pipeline Extension By in-service date AOC Hangingstone Lateral Sunday…
  12. Investment Community Presentation – Enbridge Income Fund Holdings Inc. – slide 12
    Renewable Assets Initial Capacity Wind Assets Ownership In-Service Date Commercial Contracts (MW) Long term production hedge for 75% Blackspring Ridge 300 50% Q2 2014 of facility output Phase 1: Q4 2012 Lac Alfred 308 67.5% 20…
  13. Investment Community Presentation – Enbridge Income Fund Holdings Inc. – slide 13
    Proposed Opportunity Asset book value anticipated to grow over 10x from 2011 Liquids Transportation and Storage 35B Natural Gas Transmission Green Power 20B 3 Drop downs 4B Secured Growth 2B Base Drop Secured+15B Growth…
  14. Investment Community Presentation – Enbridge Income Fund Holdings Inc. – slide 14
    ENF Expected DPS Growth Meaningful and visible dividend growth Currently 1% annual growth, supplemented with ad hoc drop downs Enbridge anticipates approximately 10% 2015 2018 DPS CAGR 1.54* 2015 2018e * Expected…
  15. Investment Community Presentation – Enbridge Income Fund Holdings Inc. – slide 15
    Strong Sponsorship Manageable and flexible funding plan Equity Funding 90% (millions annually 2015-2018) 80% 67% 66% Public ENB 600 - 800 150 - 200 EIFH 1,500* (2016 2018) 750 - 1,000 EIF 2013 2014 2015 2016 2017…
  16. Investment Community Presentation – Enbridge Income Fund Holdings Inc. – slide 16
    Strengthening Valuation ENFs valuation has improved and trading in-line with peer group September 30, 2014 December 31, 2014 4.5% Debt* 4.1% 4.1% 4.1% 3.8% Peer Avg. = 3.9% 3.7% 3.7% 3.5% Peer Avg. = 3.5% 3.2% 2.9% ENF ALA…
  17. Investment Community Presentation – Enbridge Income Fund Holdings Inc. – slide 17
    Enhanced Market Liquidity Annual Average Daily Trading Volumes Debt* Increasing presence in the Canadian equity market Growing public float providing increased trading liquidity 130,000 82,000 Recent sizeable Canadian…
  18. Investment Community Presentation – Enbridge Income Fund Holdings Inc. – slide 18
    Established Value Proposition Diversified Asset Base Low Risk Business Model High Payout of Predictable Cash Flows Strong Sponsor 19
  19. Investment Community Presentation – Enbridge Income Fund Holdings Inc. – slide 19
    Company Snapshot Ticker Symbol: TSX: ENF Market Capitalization: 2.8 Billion Equity Capitalization: 6.6 Billion Enterprise Value*: 9.2 Billion Dividend Frequency: Monthly 2015 Annualized 1.54 CDN Dividend Per Share: Dividend…
  20. Investment Community Presentation – Enbridge Income Fund Holdings Inc. – slide 20
    Strong Total Shareholder Returns Total Shareholder Return 5 year ENF Midstream Peer Avg TSX Comp. Power Peers Sept 2014 350 Announces 12.1% dividend increase ENF CAGR = 25.6% Dec 2012 Dec 2012 and Alliance U.S. and Southern…
  21. Investment Community Presentation – Enbridge Income Fund Holdings Inc. – slide 21
    Strong Sell Side Support ENF 12-Month target prices and recommendations Broker/Analyst Current Target Price Recommendation BMO Capital Markets, Carl L. Kirst 42.00 Hold CIBC World Markets, David Noseworthy 46.00 Buy Credit Suisse,…
  22. Investment Community Presentation – Enbridge Income Fund Holdings Inc. – slide 22
    Diversified Asset Base Low Risk Business Model High Payout of Predictable Cash Flows Strong Sponsor
  23. Investment Community Presentation – Enbridge Income Fund Holdings Inc. – slide 23
    Diversified Asset Base Low risk energy infrastructure assets Natural Gas Transmission Liquids Transportation and Storage Green Power Generation 24
  24. Investment Community Presentation – Enbridge Income Fund Holdings Inc. – slide 24
    Liquids Transportation and Storage Well positioned Western Canadian crude oil infrastructure assets Capacity Pipeline Assets (kbpd) Saskatchewan Gathering 255 Weyburn System 47 Virden System 37 Westspur System 255 Bakken…
  25. Investment Community Presentation – Enbridge Income Fund Holdings Inc. – slide 25
    Green Power One of Canadas largest suppliers of environmentally friendly power Western Assets Asset Location Capacity Interest Greenwich Wind Ontario 99 MW 100% Ontario Wind Ontario 190 MW 100% Talbot Wind Ontario 99 MW 100%…
  26. Investment Community Presentation – Enbridge Income Fund Holdings Inc. – slide 26
    Natural Gas Transmission Alliance Pipeline is well positioned to capture WCSB & Bakken liquids rich gas supply growth Revenue Uplift Opportunity Post 2015 1,800 1,600 1,400 1,200 1,000 800 600 400 200 - 2007 2008 2009 2010…
  27. Investment Community Presentation – Enbridge Income Fund Holdings Inc. – slide 27
    Diversified Asset Base Low Risk Business Model High Payout of Predictable Cash Flows Strong Sponsor
  28. Investment Community Presentation – Enbridge Income Fund Holdings Inc. – slide 28
    Low Risk Business Model Market Price Risk* Strong contractual support Cash Available for Distribution Solid underlying (CAFD) CAD ( million) fundamentals Disciplined growth Prudent financial policies Target debt…
  29. Investment Community Presentation – Enbridge Income Fund Holdings Inc. – slide 29
    Diversified Asset Base Low Risk Business Model High Payout of Predictable Cash Flows Strong Sponsor
  30. Investment Community Presentation – Enbridge Income Fund Holdings Inc. – slide 30
    Strong Distribution Growth Enbridge Income Fund distributions to Common Unitholders 2.00 100.0% 1.80 95.0% 1.60 1.40 90.0% 1.20 1.00 85.0% 0.80 80.0% 0.60 0.40 75.0% 0.20 0.00 70.0% 2006 2007 2008 2009 2010 2011 2012…
  31. Investment Community Presentation – Enbridge Income Fund Holdings Inc. – slide 31
    Strong Dividend Growth Long term dividend growth exceeding plan 1.80 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00 2006 2007 2008 2009 2010 2011 2012 2013 2014e 2015e Taxable Distribution paid by Enbridge Income Fund prior…
  32. Investment Community Presentation – Enbridge Income Fund Holdings Inc. – slide 32
    Diversified Asset Base Low Risk Business Model High Payout of Predictable Cash Flows Strong Sponsor
  33. Investment Community Presentation – Enbridge Income Fund Holdings Inc. – slide 33
    Strong Sponsorship ENF benefits from the sponsorship of Enbridge Inc. Strategic Alignment Operational Expertise Asset operations Risk management systems and processes Project development costs and construction management…
  34. Investment Community Presentation – Enbridge Income Fund Holdings Inc. – slide 34
    Contact Information: Perry Schuldhaus, President Teri Majer, Manager Investor Relations Phone: (403) 508-3159 Phone: (403) 508-3185 Email: perry.schuldhausenbridge.com Email: teri.majerenbridge.com http://www.enbridgeincomefund.com
  35. Investment Community Presentation – Enbridge Income Fund Holdings Inc. – slide 35
    Appendix
  36. Investment Community Presentation – Enbridge Income Fund Holdings Inc. – slide 36
    CURRENT ASSET BASE CONTRACT PROFILE Revenue generation models reinforce stability of cash flows. Current Revenue Generation Primary Contract Business Segment Throughput Capacity Model* Term Expiry Fixed Price Green Power 530…
  37. Investment Community Presentation – Enbridge Income Fund Holdings Inc. – slide 37
    Current Ownership Structure Enbridge Income Fund Holdings Inc. (ENF) Enbridge Income Fund* Economic Economic Outstanding Units Outstanding Units** Interest Interest Public - Common Shares 56,349,000 80.1% ENF - Common Units…
  38. Investment Community Presentation – Enbridge Income Fund Holdings Inc. – slide 38
    Contract Life Supported by long-term contracts Contract Life Current Asset Base (years) Green Energy Assets 14 Saskatchewan Gathering 201 Westspur Pipeline 8 Weyburn Pipeline 202 Virden Pipeline 202 Cromer Rail…
  39. Investment Community Presentation – Enbridge Income Fund Holdings Inc. – slide 39
    Natural Gas Transmission Alliance Pipeline Re-Contracting Update New Services Offering is an CDN + US 5-year 5-year attractive market-focused /MCF CDN at PAR Current 2013 New approach Firm Receipt Service - Z1 to ATP 0.42 0.42…
  40. Investment Community Presentation – Enbridge Income Fund Holdings Inc. – slide 40
    Growing Liquidity Acquisitions GROWING and project related financing has increased trading liquidity LIQUIDITY and access to debt and equity capital. Active Publicly Traded Common Shares Long-term Outstanding Debt Debt* Term 3.0…
  41. Investment Community Presentation – Enbridge Income Fund Holdings Inc. – slide 41
    Fixed Incentive Fee Calculation Based on Distribution from EIF Calculation as of Q4 2014 Incentive Fee = Base Incentive Amount + 25% x (Incentive Eligible Amount/75%) x (1-Tax Rate) (Incentive Eligible Amount (1.68-…
  42. Investment Community Presentation – Enbridge Income Fund Holdings Inc. – slide 42
    Illustrative EIF Funding Composition Potential Total Value of Transaction = 28 Billion* 10 Billion ** Equity: Transaction Day On-going (2016-2018) Preferred Units to ENB 16 billion 2 billion EIFH Common Shares to ENB 0.2 billion 0.6…

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