Slide 1: Q4 2021 Financial Results & Business Update
Al Monaco President & Vern Yu EVP, Corporate Development & Q4 2021 Financial Results & Business Update Chief Executive Officer Chief Financial Officer
Slide 2: Legal Notice
Legal Notice Forward Looking Information This presentation includes certain forward-looking statements and information (FLI) to provide potential investors and shareholders of Enbridge Inc. (Enbridge or the Company) with information about Enbridge and its subsidiaries and affiliates, including manag
Slide 3: Agenda
Agenda Enbridge Day Themes Growing Organically • 2021 Recap • Energy Fundamentals Modernizing Systems and Achieving Net Zero • Business Update Sustainable North • ESG American Energy Drives Exports • Financial Performance Growing Renewables and Low-Carbon Platforms 3
Slide 4: 2021 Recap
2021 Recap Strong operating and financial performance Significant EBITDA2 Superior Dividend Growth Growth Advanced ESG goals (Billion, CAD) (Dividend per Share) $14B of growth capital into service1 $15.0-15.6 $3.44 $2B new projects sanctioned Accelerated export & low-carbon strategies $1.2B non-core
Slide 5: Energy Fundamentals Outlook
Energy Fundamentals Outlook Global Demand Outlook North American Supply3 North American Exports3 Announced Policies Scenario1 Crude Oil Natural Gas Crude Oil LNG (EJ) STEPS (mmbpd) (Bcf/d) (mmbpd) (Bcf/d) Other2 SDS ~15 ~18 ~116 ~107 ~111 Biofuels Wind/Solar ~15 ~16 ~3 -4 ~12 Natural Gas ~3 ~3 ~11 C
Slide 6: Large Organic Opportunity Set
Large Organic Opportunity Set Organic Growth Priorities Up to $6B/year of Organic Growth Potential Maximize returns within low-risk Supplements 2022-2024, drives post-2024 growth commercial model Gas Transmission Gas Distribution • Pursue capital efficient up to ~$2B/year up to ~$1.5B/year expansion
Slide 7: Conventional Business Update
Conventional Business Update Gas Distribution & Storage Gas Transmission Liquids Pipelines • Executing $1.0B 2022 capital • US$2.6B capital program in execution • Capital efficient Mainline & market program • Announced US$0.4B TETCO Phase II access expansions • ~45K customer additions annually Moder
Slide 8: Mainline Commercial Strategy Update
Mainline Commercial Strategy Update Two Concurrent Options Estimated Execution Timeline in Progress Dec 2021 Mid 2022 Late 2022 Mid 2023 Late 2023 1) Incentive Tolling Arrangement: • Aligned with customers Stakeholder Commercial Evaluate best Consultation Negotiations path forward • Incentivized to
Slide 9: Advancing Crude Export Strategy
Advancing Crude Export Strategy USGC Competitive Position EIEC Development Update Solar Self-Power ETCOP Seaway Solar Development Gray Oak Site Cactus II EHOT SPOT 25% Enbridge Ingleside Targeting Net Zero of U.S. Energy Center (EIEC) oil exports EIEC Facility in 2021 In development Emissions2 • Mod
Slide 10: Advancing LNG Export Strategy
Advancing LNG Export Strategy U.S. Gulf Coast Western Canada Cameron Extension Venice Extension LNG opportunities in • Calcasieu Pass LNG • Plaquemines LNG development • US$0.1B TETCO • US$0.3B TETCO Expansion TX expansion expansion BC Opportunities • In service Q4, 2021 LA • Pending positive FID Pr
Slide 11: Low-Carbon Energy Outlook
Low-Carbon Energy Outlook Global Low-Carbon Investment Signposts Executing on Near-Term Investment Momentum Investment Opportunities (Cumulative, USD Trillions)1 (Visible investment through 2025) Attractive economic incentives Other $5.1 (e.g. increase in 45Q for CCUS) ~$4B CCUS/CCS 2 Maturing carbo
Slide 12: Renewables Update
Renewables Update European Offshore Wind N.A. Onshore Renewables Development Alberta Solar One UK 10.5 MW Dunkirk | 600MW1 Lambertville, NJ 2.25 MW Fécamp 497MW | 2023 Calvados 448MW | 2024 2.6 GW2 Plummer Heidlersburg, PA Saint Nazaire Germany of operating N.A. 2.5 MW 480MW | Late 2022 wind & solar
Slide 13: Carbon Capture & Storage Update
Carbon Capture & Storage Update North American Open Access Wabamun CCUS Strategy Carbon Hub • Provide transportation and storage solutions Alexis Nakota Alexander CO2 Sioux Nation First Nation – Utility-like commercial model & returns Lac Ste. Anne FORT • ~4MtCO2e/year under Memorandum of Understand
Slide 14: Renewable Natural Gas & Hydrogen Update
Renewable Natural Gas & Hydrogen Update Renewable Natural Gas Hydrogen ONTARIO QUEBEC ONTARIO Gatineau H2 Blending - 2025 H2 Montreal Sault Ste. Marie Ottawa Utility RNG Opportunities RNG RNG RNG RNG TORONTO RNG RNG RNG 7 projects operating and in Markham H2 Blending - 2021 H2 construction; 50+ in d
Slide 15: 2021 ESG Performance Update
2021 ESG Performance Update Environment Social Governance ESG Ratings / Rankings (Latest report as of January 2022) GHG Emissions Workforce Diversity Board Diversity MSCI ESG A rating Intensity 35% Gender 40% Gender 40% Top 5% of industry Sustainalytics 2018 2030 0% 2025 0% 2025 group2 Baseline Goal
Slide 16: Sector Leadership
Sector Leadership 2011 2019 2020 2021 2022 New • Achieved • Initiated TCFD- • Set new targets • Reduced emissions • All new investments must align emissions aligned climate intensity by 21% with our emissions goals • Lower emissions reduction targets change reporting intensity 35% from 2018 baseline
Slide 17: ESG Integrated into Capital Allocation
ESG Integrated into Capital Allocation ESG Integrated into Evaluation Against Energy Investments Must Align with Investment Decisions Transition Scenarios Emissions Goals3 (Illustrative) Lower Example: Ingleside Terminal Acquisition Emission Equity Risk Premia Examples: Scenarios Hurdle • Regulatory
Slide 18: 2021 Financial Results
2021 Financial Results Q4 YTD ($ Millions, except per share amounts) 2021 2020 2021 2020 Quarterly Drivers Liquids Pipelines 2,108 1,787 7,731 7,182 Gas Transmission & Midstream 922 878 3,850 3,895 Strong operational performance Gas Distribution & Storage 450 492 1,853 1,822 L3R in service & Mod
Slide 19: 2022 Financial Outlook
2022 Financial Outlook EBITDA Guidance1 DCF/share Guidance1 Outlook Considerations ($Billions) Mainline • Average utilization of ~2.95 mmbpd $15.0 - $15.6 $5.20 - $5.50 • Seasonal customer maintenance $4.96 Performance (Q2 and Q3) $14.0 Inflation • 80% of revenues have partial to full (Medium Term)
Slide 20: Strong Balance Sheet
Strong Balance Sheet 6.0x 2022 Funding Plan 5.5x Debt to EBITDA Outlook ($Billions) $0.75 Preferred Shares $0.75 Hybrid Securities 5.0x Target Range: 4.5x – 5.0x ~$6.5 ~$7 4.5x Debt Maturities Debt Funding 4.0x ~$4.5 Secured Growth ~$5 3.5x Capital Spend Internal Cash Flow1 ~$1 Maintenance 3.0x Uses
Slide 21: Secured Growth Outlook
Secured Growth Outlook Commercial Expected Executing on Secured Program Project Framework1 ISD Capital ($B) Gas Modernization Program COS 2022-2025 2.2 USD Transmission Other Expansions TOP 2022-2025 0.4 USD $17B Distribution System COS 2022-2024 1.8 CAD Gas Distribution Transmission/Storage Assets
Slide 22: Capital Allocation Framework
Capital Allocation Framework Core Allocation Excess Allocation 1 Protect Balance Sheet High Priority Investments Drive Sustainable Long- Deploy Incremental Capacity to Drive Additional Growth Term Growth and Value $3-4B annually ~$2B annually 2 Sustainable Return of Capital • Enhance existing return
Slide 23: 3-Year Outlook Through 2024
3-Year Outlook Through 2024 Value Proposition DCF/share1 Outlook Resiliency and longevity of cash flows Growing investable free cash flow 5-7% CAGR through Deploy 2024 Execute Excess Capital discipline, return of capital Revenue Secured Capacity Inflators & Productivity Capital Enhancements Program
Slide 24: Organizational Changes
Organizational Changes Bill Yardley Cynthia Hansen Michele Harradence Vern Yu EVP & President, Gas Transmission EVP & President, Gas Transmission SVP & President, Gas Distribution EVP, Corporate Development and Midstream and Midstream and Storage and Chief Financial Officer Retiring 23 years1 8 year
Slide 25: Qs&A
Qs&A CENBRIDGE