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Citi MLP Midstream Infrastructure Conference – Enbridge Energy Partners Lp

Enbridge Energy Partners Lp · Aug 20, 2014 · 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. Citi MLP Midstream Infrastructure Conference – Enbridge Energy Partners Lp – slide 1
  2. Citi MLP Midstream Infrastructure Conference – Enbridge Energy Partners Lp – slide 2
    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…
  3. Citi MLP Midstream Infrastructure Conference – Enbridge Energy Partners Lp – slide 3
    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
  4. Citi MLP Midstream Infrastructure Conference – Enbridge Energy Partners Lp – slide 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…
  5. Citi MLP Midstream Infrastructure Conference – Enbridge Energy Partners Lp – slide 5
    Attractive Investment Proposition Attractive Yield Financial Highlights Market Cap* 15B Yield* 6.3% 10% Distribution 2.22/unit annual 9% Total Shareholder Return (10yr CAGR) 9% 8% EEP: 6.3% Credit Rating (S&P, Moodys, DBRS)…
  6. Citi MLP Midstream Infrastructure Conference – Enbridge Energy Partners Lp – slide 6
    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…
  7. Citi MLP Midstream Infrastructure Conference – Enbridge Energy Partners Lp – slide 7
    Strength of GP Enbridge Inc. ENB: North American leader in energy delivery Owner and operator of largest crude oil pipeline system 42 billion equity market cap Strong investment grade (A-, Baa1) Proven track record: industry…
  8. Citi MLP Midstream Infrastructure Conference – Enbridge Energy Partners Lp – slide 8
    Strategic Position Competitive Advantages Norman Wells Refiners Access to multiple crude streams Producers WCSB Zama Access to multiple premium markets Fort McMurray Flexible system Edmonton Hardisty Size and scale…
  9. Citi MLP Midstream Infrastructure Conference – Enbridge Energy Partners Lp – slide 9
    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 2013 Enbridge Upside…
  10. Citi MLP Midstream Infrastructure Conference – Enbridge Energy Partners Lp – slide 10
    Bakken Crude Oil Supply vs. Pipeline Takeaway Capacity MMb/d 2.5 2.0 Range of External 1.5 Supply Forecasts 1.0 Enbridge Sandpiper* Plains Bakken North Baker Take-away (Platte) 0.5 Enbridge Berthold Rail ND Enbridge…
  11. Citi MLP Midstream Infrastructure Conference – Enbridge Energy Partners Lp – slide 11
    North American Crude Oil Price Fundamentals Significant Infrastructure Investment Opportunities Light Differentials 8/14/14 1/30/13 Asia Brent WTI 4 19 106 89 Alberta Light LLS WTI 4 18 101 80 WCS Asia WTI 8 22 WTI Bakken 8…
  12. Citi MLP Midstream Infrastructure Conference – Enbridge Energy Partners Lp – slide 12
    Providing New Market Access Opening New Markets for up to 1.7 million barrels per day + 1.0 MMbpd of Heavy and + 0.7 MMbpd of Light Norman Wells Eastern Access Light Oil Market Zama Fort McMurray +250 kbpd Light Access +50…
  13. Citi MLP Midstream Infrastructure Conference – Enbridge Energy Partners Lp – slide 13
    Market Access Programs Market Access Programs Bolster Lakehead System Utilization Fort 2013 McMurray Bakken Pipeline Expansion+ Berthold Rail - EEP Line 5 Expansion (+50 kbpd) - EEP Line 62 Expansion (+105 kbpd) - EEP Edmonton Line…
  14. Citi MLP Midstream Infrastructure Conference – Enbridge Energy Partners Lp – slide 14
    Project Execution 2014 In-Service Eastern Access: Ln 6B Replacement 160 miles of Line 6B replacement entered service in May Remaining 50 mile replacement construction underway (early 4Q 2014 in service) 2.1 billion capital…
  15. Citi MLP Midstream Infrastructure Conference – Enbridge Energy Partners Lp – slide 15
    Bakken Expansion Sandpiper Pipeline Hardisty Regina Gretna Montreal Clearbrook Superior Sandpiper (2.6 B) Westover Scope: 610 mile, 24/30 pipeline Sarnia Capacity: 225 kbpd/375 kbpd Target in-service: Early 2016 Toledo…
  16. Citi MLP Midstream Infrastructure Conference – Enbridge Energy Partners Lp – slide 16
    Line 3 Replacement Line 3: Part of Enbridge mainline system Replace all remaining segments from Hardisty to Superior with latest available high strength steel and coating technology EEP Capital Investment: border to Superior 2.6…
  17. Citi MLP Midstream Infrastructure Conference – Enbridge Energy Partners Lp – slide 17
    Safety and Operational Reliability Risk Management Risk Policy, Risk Framework, Risk Culture Survey + Training Inline inspection (ILI) Significant dig program 3,400 pipe joints examined followed with non-destructive testing…
  18. Citi MLP Midstream Infrastructure Conference – Enbridge Energy Partners Lp – slide 18
    Commercial Structure & Risk Profile Crude oil projects progressively transform EEP to lower risk business model (Unconsolidated view) 100.0% 24% 80.0% 59% Fee-Based 60.0% 40.0% 18% Commodity Sensitive 76% 20.0% 23%…
  19. Citi MLP Midstream Infrastructure Conference – Enbridge Energy Partners Lp – slide 19
    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…
  20. Citi MLP Midstream Infrastructure Conference – Enbridge Energy Partners Lp – slide 20
    Natural Gas and NGL Midstream Business Key Assets Natural Gas Deliveries 2.5 bcf/d Gathering and Transportation Pipelines 11,400 miles Processing Capacity (26 plants) 2.3 Bcf/d Treating Capacity (11 plants) 1.3 Bcf/d Anadarko…
  21. Citi MLP Midstream Infrastructure Conference – Enbridge Energy Partners Lp – slide 21
    Equity Restructure EEP Equity Restructuring Prospective Benefits Improves EEPs cost of capital Increases distributable cash available to LP unit holders Establishes momentum for distribution growth Enhances acquisition…
  22. Citi MLP Midstream Infrastructure Conference – Enbridge Energy Partners Lp – slide 22
    Lower Partnerships Cost of Capital 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…
  23. Citi MLP Midstream Infrastructure Conference – Enbridge Energy Partners Lp – slide 23
    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…
  24. Citi MLP Midstream Infrastructure Conference – Enbridge Energy Partners Lp – slide 24
    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…
  25. Citi MLP Midstream Infrastructure Conference – Enbridge Energy Partners Lp – slide 25
    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…
  26. Citi MLP Midstream Infrastructure Conference – Enbridge Energy Partners Lp – slide 26
    Key Takeaways Strategic position supported by strong business fundamentals Secured Liquids projects collectively transform the Partnership to an even lower risk business model Coverage strengthens as organic growth projects enter…
  27. Citi MLP Midstream Infrastructure Conference – Enbridge Energy Partners Lp – slide 27
  28. Citi MLP Midstream Infrastructure Conference – Enbridge Energy Partners Lp – slide 28
    Delivering Cash Flow Growth* (unconsolidated) EBITDA ramps up in 2H14: project in-service + increasing system utilization 1,600 Line 61 Expansion In-service 3Q14 Lakehead Volume/Rate Growth Eastern Access Line 6B Replacement…
  29. Citi MLP Midstream Infrastructure Conference – Enbridge Energy Partners Lp – slide 29
    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…
  30. Citi MLP Midstream Infrastructure Conference – Enbridge Energy Partners Lp – slide 30
    Delivering 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…
  31. Citi MLP Midstream Infrastructure Conference – Enbridge Energy Partners Lp – slide 31
    Growing Financial Strength Strengthening credit metrics as expansion projects begin to generate cash Debt /EBITDA FFO / Interest 6.0 5.5 5.0 5.0 4.5 4.0 4.0 3.0 3.5 3.0 2.0 2007 2008 2009 2010 2011 2012 2013 2014 2015…
  32. Citi MLP Midstream Infrastructure Conference – Enbridge Energy Partners Lp – slide 32
    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…
  33. Citi MLP Midstream Infrastructure Conference – Enbridge Energy Partners Lp – slide 33
    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…
  34. Citi MLP Midstream Infrastructure Conference – Enbridge Energy Partners Lp – slide 34
    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…
  35. Citi MLP Midstream Infrastructure Conference – Enbridge Energy Partners Lp – slide 35
    Market Access Eastern Access Linking North American crude supply growth to eastern refining centers Hardisty Montreal 1 5 Superior 4 Westover Sarnia 1. 1 Line 5 Expansion +50 Mb/d (In-Service) Chicago 2. 2 Spearhead North…
  36. Citi MLP Midstream Infrastructure Conference – Enbridge Energy Partners Lp – slide 36
    Market Access US Gulf Coast Linking North American crude supply growth to USGC refining centers 4 5 EEP/ENB Funded ENB Funded Refining center Chicago/ Flanagan Seaway Pipeline 400 Mb/d (In Service) 2 1 2 Flanagan South…
  37. Citi MLP Midstream Infrastructure Conference – Enbridge Energy Partners Lp – slide 37
    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…
  38. Citi MLP Midstream Infrastructure Conference – Enbridge Energy Partners Lp – slide 38
    North American Crude Oil Supply Growth (2013 2025) + 7 MMbpd by 2025 MMbpd 4.0 Cardium, Viking, Duvernay 3.5 Niobrara 3.0 Other 2.5 Permian Basin 2.0 Oil Sands Eagle Ford 1.5 1.0 0.5 Bakken 0.0 Heavy Light Sources:…
  39. Citi MLP Midstream Infrastructure Conference – Enbridge Energy Partners Lp – slide 39
    US Refining Crude Coverage North American Production Displaces Waterborne Imports MMb/d 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 2013F 2015 2020 2025 US Production Waterborne Imports Imports from Canada Sources:…
  40. Citi MLP Midstream Infrastructure Conference – Enbridge Energy Partners Lp – slide 40
    Operational Reliability & Project Execution Operational Project Reliability Execution Project Development Third Party Damage Avoidance and Incident Response Detection Capacity Supply Chain Management Leak Detection Employee…
  41. Citi MLP Midstream Infrastructure Conference – Enbridge Energy Partners Lp – slide 41
    Impact of Line 6B Incident Estimated Costs* As of March 31, Booked in Q2 Total to Date 2014 2014 Total Costs 1,122 35 1,157 Less: Insurance Recoveries 547 0 547 Total Normalized 575 35 610 Unaudited amounts, in millions.…
  42. Citi MLP Midstream Infrastructure Conference – Enbridge Energy Partners Lp – slide 42
    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 . 43

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